2004 Minnesota Statutes

CHAPTER 245A. Human services licensing

     245A.01 Citation. 

    This chapter may be cited as the "Human Services Licensing 
 Act." 

    HIST: 1987 c 333 s 1; 2000 c 327 s 6 

     245A.02 Definitions. 

    Subdivision 1.    Scope.  The terms used in this chapter 
 and chapter 245B have the meanings given them in this section. 

    Subd. 2.    Adult.  "Adult" means a person who is 18 
 years old or older and who: 

    (1) has mental illness, mental retardation or a related 
 condition, a physical handicap, or a functional impairment; or 

    (2) is chemically dependent or abuses chemicals. 

    Subd. 2a.    Adult day care or family adult day services. 
  "Adult day care," "adult day services," and "family adult day 
 services" mean a program operating less than 24 hours per day 
 that provides functionally impaired adults with an 
 individualized and coordinated set of services including health 
 services, social services, and nutritional services that are 
 directed at maintaining or improving the participants' 
 capabilities for self-care.  Adult day care, adult day services, 
 and family adult day services do not include programs where 
 adults gather or congregate primarily for purposes of 
 socialization, education, supervision, caregiver respite, 
 religious expression, exercise, or nutritious meals. 

    Subd. 2b.    Annual or annually.  "Annual" or "annually" 
 means prior to or within the same month of the subsequent 
 calendar year. 

    Subd. 3.    Applicant.  "Applicant" means an individual, 
 corporation, partnership, voluntary association, controlling 
 individual, or other organization that has applied for licensure 
 under this chapter and the rules of the commissioner. 

    Subd. 3a.    Certification.  "Certification" means the 
 commissioner's written authorization for a license holder 
 licensed by the commissioner of human services or the 
 commissioner of corrections to serve children in a residential 
 program and provide specialized services based on certification 
 standards in Minnesota Rules.  The term "certification" and its 
 derivatives have the same meaning and may be substituted for the 
 term "licensure" and its derivatives in this chapter. 

    Subd. 4.    Child.  "Child" means a person who has not 
 reached age 18. 

    Subd. 5.    Commissioner.  "Commissioner" means the 
 commissioner of human services or the commissioner's designated 
 representative including county agencies and private agencies.  

    Subd. 5a.    Controlling individual.  "Controlling 
 individual" means a public body, governmental agency, business 
 entity, officer, owner, or managerial official whose 
 responsibilities include the direction of the management or 
 policies of a program.  For purposes of this subdivision, owner 
 means an individual who has direct or indirect ownership 
 interest in a corporation, partnership, or other business 
 association issued a license under this chapter.  For purposes 
 of this subdivision, managerial official means those individuals 
 who have the decision-making authority related to the operation 
 of the program, and the responsibility for the ongoing 
 management of or direction of the policies, services, or 
 employees of the program.  Controlling individual does not 
 include: 

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

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

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

    (i) whose securities are exempt under section 80A.15, 
 subdivision 1, clause (f); or 

    (ii) whose transactions are exempt under section 80A.15, 
 subdivision 2, clause (b); or 

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

    Subd. 6.    County agency.  "County agency" means the 
 agency designated by the county board of commissioners, human 
 service boards, local social services agencies or multicounty 
 local social services agencies, or departments where those have 
 been established under the law. 

    Subd. 6a.    Drop-in child care program.  "Drop-in child 
 care program" means a nonresidential program of child care in 
 which children participate on a onetime only or occasional basis 
 up to a maximum of 90 hours per child, per month.  A drop-in 
 child care program must be licensed under Minnesota Rules 
 governing child care centers.  A drop-in child care program must 
 meet one of the following requirements to qualify for the rule 
 exemptions specified in section 245A.14, subdivision 6: 

    (1) the drop-in child care program operates in a child care 
 center which houses no child care program except the drop-in 
 child care program; 

    (2) the drop-in child care program operates in the same 
 child care center but not during the same hours as a regularly 
 scheduled ongoing child care program with a stable enrollment; 
 or 

    (3) the drop-in child care program operates in a child care 
 center at the same time as a regularly scheduled ongoing child 
 care program with a stable enrollment but the program's 
 activities, except for bathroom use and outdoor play, are 
 conducted separately from each other. 

    Subd. 6b.    Experience.  For purposes of child care 
 centers, "experience" includes paid or unpaid employment serving 
 children as a teacher, assistant teacher, aide, or a student 
 intern in a licensed child care center, in a public or nonpublic 
 school, or in a program licensed as a family day care or group 
 family day care provider. 

    Subd. 6c.    Foster care for adults.  "Foster care for 
 adults" means a program operating 24 hours a day that provides 
 functionally impaired adults with food, lodging, protection, 
 supervision, and household services in a residence, in addition 
 to services according to the individual service plans under 
 Minnesota Rules, part 9555.5105, subpart 18. 

    Subd. 7.    Functional impairment.  For the purposes of 
 adult day care, adult day services, family adult day services, 
 or adult foster care, "functional impairment" means: 

    (1) a condition that is characterized by substantial 
 difficulty in carrying out one or more of the essential major 
 activities of daily living, such as caring for oneself, 
 performing manual tasks, walking, seeing, hearing, speaking, 
 breathing, learning, working; or 

    (2) a disorder of thought or mood that significantly 
 impairs judgment, behavior, capacity to recognize reality, or 
 ability to cope with the ordinary demands of life and that 
 requires support to maintain independence in the community. 

    Subd. 7a.    HIV minimum standards.  "HIV minimum 
 standards" means those items approved by the department and 
 contained in the HIV-1 Guidelines for chemical dependency 
 treatment and care programs in Minnesota including HIV education 
 to clients, completion of HIV training by all new and existing 
 staff, provision for referral to individual HIV counseling and 
 services for all clients, and the implementation of written 
 policies and procedures for working with HIV-infected clients.  

    Subd. 7b.    Interpretive guidelines.  "Interpretive 
 guidelines" means a policy statement that has been published 
 pursuant to section 245A.09, subdivision 12, and which provides 
 interpretation, details, or supplementary information concerning 
 the application of laws or rules.  Interpretive guidelines are 
 published for the information and guidance of consumers, 
 providers of service, county agencies, the Department of Human 
 Services, and others concerned. 

    Subd. 8.    License.  "License" means a certificate 
 issued by the commissioner authorizing the license holder to 
 provide a specified program for a specified period of time and 
 in accordance with the terms of the license and the rules of the 
 commissioner. 

    Subd. 9.    License holder.  "License holder" means an 
 individual, corporation, partnership, voluntary association, or 
 other organization that is legally responsible for the operation 
 of the program, has been granted a license by the commissioner 
 under this chapter or chapter 245B and the rules of the 
 commissioner, and is a controlling individual. 

    Subd. 10.    Nonresidential program.  "Nonresidential 
 program" means care, supervision, rehabilitation, training or 
 habilitation of a person provided outside the person's own home 
 and provided for fewer than 24 hours a day, including adult day 
 care programs; and chemical dependency or chemical abuse 
 programs that are located in a nursing home or hospital and 
 receive public funds for providing chemical abuse or chemical 
 dependency treatment services under chapter 254B.  
 Nonresidential programs include home and community-based 
 services and semi-independent living services for persons with 
 mental retardation or a related condition that are provided in 
 or outside of a person's own home. 

    Subd. 10a.    Parent cooperative.  "Parent cooperative" 
 means a nonprofit group child care program that is governed by a 
 board that meets regularly and makes all continuing operational 
 decisions about the program.  At least 70 percent of the board 
 membership must be parent-users of the program. 

    Subd. 11.    Person.  "Person" means a child or adult as 
 defined in subdivisions 2 and 4. 

    Subd. 12.    Private agency.  "Private agency" means an 
 individual, corporation, partnership, voluntary association or 
 other organization, other than a county agency, or a court with 
 jurisdiction, that places persons who cannot remain in their own 
 homes in residential programs, foster care, or adoptive homes. 

    Subd. 13.    Individual who is related.  "Individual who 
 is related" means a spouse, a parent, a natural or adopted child 
 or stepchild, a stepparent, a stepbrother, a stepsister, a 
 niece, a nephew, an adoptive parent, a grandparent, a sibling, 
 an aunt, an uncle, or a legal guardian. 

    Subd. 14.    Residential program.  "Residential program" 
 means a program that provides 24-hour-a-day care, supervision, 
 food, lodging, rehabilitation, training, education, 
 habilitation, or treatment outside a person's own home, 
 including a program in an intermediate care facility for four or 
 more persons with mental retardation or a related condition; and 
 chemical dependency or chemical abuse programs that are located 
 in a hospital or nursing home and receive public funds for 
 providing chemical abuse or chemical dependency treatment 
 services under chapter 254B.  Residential programs include home 
 and community-based services for persons with mental retardation 
 or a related condition that are provided in or outside of a 
 person's own home. 

    Subd. 15.    Respite care services.  "Respite care 
 services" means temporary services provided to a person due to 
 the absence or need for relief of the primary caregiver, the 
 person's family member, or legal representative who is the 
 primary caregiver and principally responsible for the care and 
 supervision of the person.  Respite care services are those that 
 provide the level of supervision and care that is necessary to 
 ensure the health and safety of the person.  Respite care 
 services do not include services that are specifically directed 
 toward the training and habilitation of the person. 

    Subd. 16.    School age child.  "School age child," for 
 programs licensed or required to be licensed as a child care 
 center, means a child who is at least of sufficient age to have 
 attended the first day of kindergarten, or is eligible to enter 
 kindergarten within the next four months, but is younger than 13 
 years of age.  

    Subd. 17.    School age child care program.  "School age 
 child care program" means a program licensed or required to be 
 licensed as a child care center, serving more than ten children 
 with the primary purpose of providing child care for school age 
 children.  School age child care program does not include 
 programs such as scouting, boys clubs, girls clubs, nor sports 
 or art programs. 

    Subd. 18.    Supervision.  For purposes of child care 
 centers, "supervision" means when a program staff person is 
 within sight and hearing of a child at all times so that the 
 program staff can intervene to protect the health and safety of 
 the child.  When an infant is placed in a crib room to sleep, 
 supervision occurs when a staff person is within sight or 
 hearing of the infant.  When supervision of a crib room is 
 provided by sight or hearing, the center must have a plan to 
 address the other supervision component. 

    Subd. 19.    Family day care and group family day care 
 child age classifications.  (a) For the purposes of family day 
 care and group family day care licensing under this chapter, the 
 following terms have the meanings given them in this subdivision.

    (b) "Newborn" means a child between birth and six weeks old.

    (c) "Infant" means a child who is at least six weeks old 
 but less than 12 months old. 

    (d) "Toddler" means a child who is at least 12 months old 
 but less than 24 months old, except that for purposes of 
 specialized infant and toddler family and group family day care, 
 "toddler" means a child who is at least 12 months old but less 
 than 30 months old. 

    (e) "Preschooler" means a child who is at least 24 months 
 old up to the age of being eligible to enter kindergarten within 
 the next four months. 

    (f) "School age" means a child who is at least of 
 sufficient age to have attended the first day of kindergarten, 
 or is eligible to enter kindergarten within the next four 
 months, but is younger than 11 years of age. 

    HIST: 1987 c 333 s 2; 1988 c 411 s 1; 1989 c 282 art 2 s 
 60-65; 1990 c 568 art 2 s 40; 1991 c 142 s 1; 1992 c 513 art 9 s 
 7,8; 1993 c 338 s 1,2; 1994 c 631 s 31; 1995 c 158 s 1,2; 1995 c 
 202 art 1 s 25; 1995 c 207 art 2 s 4; 1997 c 248 s 3-7; 1999 c 
 36 s 1; 2000 c 327 s 6; 1Sp2001 c 9 art 14 s 4-6; 2002 c 375 art 
 1 s 5,6; 2002 c 379 art 1 s 113; 2004 c 288 art 1 s 2-7 

     245A.023 In-service training. 

    For purposes of child care centers, in-service training 
 must be completed within the license period for which it is 
 required.  In-service training completed by staff persons as 
 required must be transferable upon a staff person's change in 
 employment to another child care program.  License holders shall 
 record all staff in-service training on forms prescribed by the 
 commissioner of human services. 

    HIST: 1997 c 248 s 8 

     245A.03 Who must be licensed. 

    Subdivision 1.    License required.  Unless licensed by 
 the commissioner, an individual, corporation, partnership, 
 voluntary association, other organization, or controlling 
 individual must not: 

    (1) operate a residential or a nonresidential program; 

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

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

    (4) advertise a residential or nonresidential program. 

    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, mental retardation or a 
 related condition, a functional impairment, or a physical 
 handicap; 

    (4) sheltered workshops or work activity programs that are 
 certified by the commissioner of economic security; 

    (5) programs 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 provide services for five or more persons whose 
 primary diagnosis is mental illness that do not provide 
 intensive residential treatment; 

    (9) homes providing programs for persons placed there by a 
 licensed agency for legal adoption, unless the adoption is not 
 completed within two years; 

    (10) programs licensed by the commissioner of corrections; 

    (11) recreation programs for children or adults that 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, whose primary purpose is to provide 
 child care to school-age children; 

    (13) Head Start nonresidential programs which operate for 
 less than 31 days in each calendar year; 

    (14) noncertified boarding care homes unless they provide 
 services for five or more persons whose primary diagnosis is 
 mental illness or mental retardation; 

    (15) nonresidential programs for 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 mental retardation or related 
 conditions from a single related family for no more than 90 days 
 in a 12-month period and the respite care services are for the 
 temporary relief of the person's family or legal representative; 

    (22) respite care services provided as a home and 
 community-based service to a person with mental retardation or a 
 related condition, in the person's primary residence; 

    (23) community support services programs as defined in 
 section 245.462, subdivision 6, and family community support 
 services as defined in section 245.4871, subdivision 17; 

    (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; or 

    (26) consumer-directed community support service funded 
 under the Medicaid waiver for persons with mental retardation 
 and related conditions 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. 

    (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.

    Subd. 2a.    Foster care by an individual who is related 
 to a child; license required.  Notwithstanding subdivision 2, 
 clause (1), in order to provide foster care for a child, an 
 individual who is related to the child, other than a parent, or 
 legal guardian, must be licensed by the commissioner except as 
 provided by section 245A.035.  

    Subd. 2b.    Exception.  The provision in subdivision 2, 
 clause (2), does not apply to: 

    (1) a child care provider who as an applicant for licensure 
 or as a license holder has received a license denial under 
 section 245A.05, a conditional license under section 245A.06, or 
 a sanction under section 245A.07 from the commissioner that has 
 not been reversed on appeal; or 

    (2) a child care provider, or a child care provider who has 
 a household member who, as a result of a licensing process, has 
 a disqualification under this chapter that has not been set 
 aside by the commissioner. 

    Subd. 3.    Unlicensed programs.  (a) It is a 
 misdemeanor for an individual, corporation, partnership, 
 voluntary association, other organization, or a controlling 
 individual to provide a residential or nonresidential program 
 without a license and in willful disregard of this chapter 
 unless the program is excluded from licensure under subdivision 
 2. 

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

    (1) failed to apply for a license after receiving notice 
 that a license is required; 

    (2) continued to operate without a license after the 
 license has been revoked or suspended under section 245A.07, and 
 the commissioner has issued a final order affirming the 
 revocation or suspension, or the license holder did not timely 
 appeal the sanction; or 

    (3) continued to operate without a license after the 
 license has been temporarily suspended under section 245A.07.  

 The county attorney and the attorney general have a duty to 
 cooperate with the commissioner.  

    Subd. 4.    Excluded child care programs; right to seek 
 licensure.  Nothing in this section shall prohibit a child 
 care program that is excluded from licensure under subdivision 
 2, clause (2), or under Laws 1997, chapter 248, section 46, as 
 amended by Laws 1997, First Special Session chapter 5, section 
 10, from seeking a license under this chapter.  The commissioner 
 shall ensure that any application received from such an excluded 
 provider is processed in the same manner as all other 
 applications for licensed family day care. 

    Subd. 5.    Excluded housing with services programs; right 
 to seek licensure.  Nothing in this section shall prohibit a 
 housing with services program that is excluded from licensure 
 under subdivision 2, clause (25), from seeking a license under 
 this chapter.  The commissioner shall ensure that any 
 application received from such an excluded provider is processed 
 in the same manner as all other applications for licensed adult 
 foster care. 

    Subd. 6.    Right to seek certification.  Nothing in 
 this section shall prohibit a residential program licensed by 
 the commissioner of corrections to serve children, that is 
 excluded from licensure under subdivision 2, clause (10), from 
 seeking certification from the commissioner of human services 
 under this chapter for program services for which certification 
 standards have been adopted. 

    HIST: 1987 c 333 s 3; 1988 c 411 s 2; 1989 c 282 art 2 s 
 66-68; 1990 c 568 art 2 s 41; 1991 c 265 art 9 s 63; 1992 c 499 
 art 3 s 12; 1992 c 513 art 9 s 9; 1993 c 338 s 3,4; 1993 c 339 s 
 5; 1994 c 483 s 1; 1994 c 598 s 1,2; 1994 c 631 s 3,4,31; 1995 c 
 158 s 3; 1995 c 207 art 2 s 5; 1Sp1995 c 3 art 16 s 13; 1997 c 
 113 s 16; 1997 c 248 s 9; 1998 c 397 art 11 s 3; 1998 c 406 art 
 1 s 4,37; 1998 c 407 art 6 s 3,4; art 9 s 4; 2000 c 327 s 1,2,6; 
 1Sp2001 c 9 art 14 s 7-9; 2002 c 375 art 1 s 7; 2002 c 379 art 1 
 s 113; 2003 c 130 s 12; 2004 c 288 art 1 s 8,9 

     245A.035 Relative foster care; emergency license. 

    Subdivision 1.    Grant of emergency license.  
 Notwithstanding section 245A.03, subdivision 2a, a county agency 
 may place a child for foster care with a relative who is not 
 licensed to provide foster care, provided the requirements of 
 subdivision 2 are met.  As used in this section, the term 
 "relative" has the meaning given it under section 260C.007, 
 subdivision 27. 

    Subd. 2.    Cooperation with emergency licensing process. 
  (a) A county agency that places a child with a relative who 
 is not licensed to provide foster care must begin the process of 
 securing an emergency license for the relative as soon as 
 possible and must conduct the initial inspection required by 
 subdivision 3, clause (1), whenever possible, prior to placing 
 the child in the relative's home, but no later than three 
 working days after placing the child in the home.  A child 
 placed in the home of a relative who is not licensed to provide 
 foster care must be removed from that home if the relative fails 
 to cooperate with the county agency in securing an emergency 
 foster care license.  The commissioner may issue an emergency 
 foster care license to a relative with whom the county agency 
 wishes to place or has placed a child for foster care, or to a 
 relative with whom a child has been placed by court order.  

    (b) If a child is to be placed in the home of a relative 
 not licensed to provide foster care, either the placing agency 
 or the county agency in the county in which the relative lives 
 shall conduct the emergency licensing process as required in 
 this section. 

    Subd. 3.    Requirements for emergency license.  Before 
 an emergency license may be issued, the following requirements 
 must be met: 

    (1) the county agency must conduct an initial inspection of 
 the premises where the foster care is to be provided to ensure 
 the health and safety of any child placed in the home.  The 
 county agency shall conduct the inspection using a form 
 developed by the commissioner; 

    (2) at the time of the inspection or placement, whichever 
 is earlier, the relative being considered for an emergency 
 license shall receive an application form for a child foster 
 care license; 

    (3) whenever possible, prior to placing the child in the 
 relative's home, the relative being considered for an emergency 
 license shall provide the information required by section 
 245C.05; and 

    (4) if the county determines, prior to the issuance of an 
 emergency license, that anyone requiring a background study may 
 be disqualified under section 245C.14 and chapter 245C, and the 
 disqualification is one which the commissioner cannot set aside, 
 an emergency license shall not be issued. 

    Subd. 4.    Applicant study.  When the county agency has 
 received the information required by section 245C.05, the county 
 agency shall begin an applicant study according to the 
 procedures in chapter 245C.  The commissioner may issue an 
 emergency license upon recommendation of the county agency once 
 the initial inspection has been successfully completed and the 
 information necessary to begin the applicant background study 
 has been provided.  If the county agency does not recommend that 
 the emergency license be granted, the agency shall notify the 
 relative in writing that the agency is recommending denial to 
 the commissioner; shall remove any child who has been placed in 
 the home prior to licensure; and shall inform the relative in 
 writing of the procedure to request review pursuant to 
 subdivision 6.  An emergency license shall be effective until a 
 child foster care license is granted or denied, but shall in no 
 case remain in effect more than 120 days from the date of 
 placement. 

    Subd. 5.    Child foster care license application.  The 
 emergency license holder shall complete the child foster care 
 license application and necessary paperwork within ten days of 
 the placement.  The county agency shall assist the emergency 
 license holder to complete the application.  The granting of a 
 child foster care license to a relative shall be under the 
 procedures in this chapter and according to the standards set 
 forth by foster care rule.  In licensing a relative, the 
 commissioner shall consider the importance of maintaining the 
 child's relationship with relatives as an additional significant 
 factor in determining whether to set aside a licensing 
 disqualifier under section 245C.22, or to grant a variance of 
 licensing requirements under sections 245C.21 to 245C.27. 

    Subd. 6.    Denial of emergency license.  If the 
 commissioner denies an application for an emergency foster care 
 license under this section, that denial must be in writing and 
 must include reasons for the denial.  Denial of an emergency 
 license is not subject to appeal under chapter 14.  The relative 
 may request a review of the denial by submitting to the 
 commissioner a written statement of the reasons an emergency 
 license should be granted.  The commissioner shall evaluate the 
 request for review and determine whether to grant the emergency 
 license.  The commissioner's review shall be based on a review 
 of the records submitted by the county agency and the relative.  
 Within 15 working days of the receipt of the request for review, 
 the commissioner shall notify the relative requesting review in 
 written form whether the emergency license will be granted.  The 
 commissioner's review shall be based on a review of the records 
 submitted by the county agency and the relative.  A child shall 
 not be placed or remain placed in the relative's home while the 
 request for review is pending.  Denial of an emergency license 
 shall not preclude an individual from reapplying for an 
 emergency license or from applying for a child foster care 
 license.  The decision of the commissioner is the final 
 administrative agency action.  

    HIST: 1995 c 207 art 2 s 6; 1996 c 421 s 1; 1998 c 406 art 1 s 
 5,37; 1998 c 407 art 9 s 5; 2001 c 178 art 1 s 44; 1Sp2001 c 9 
 art 14 s 10; 2002 c 375 art 1 s 8; 2002 c 379 art 1 s 113; 2003 
 c 15 art 1 s 33; 1Sp2003 c 14 art 6 s 4 

     245A.04 Application procedures. 

    Subdivision 1.    Application for licensure.  (a) An 
 individual, corporation, partnership, voluntary association, 
 other organization or controlling individual that is subject to 
 licensure under section 245A.03 must apply for a license.  The 
 application must be made on the forms and in the manner 
 prescribed by the commissioner.  The commissioner shall provide 
 the applicant with instruction in completing the application and 
 provide information about the rules and requirements of other 
 state agencies that affect the applicant.  An applicant seeking 
 licensure in Minnesota with headquarters outside of Minnesota 
 must have a program office located within the state.  

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

    (b) An application for licensure must specify one or more 
 controlling individuals as an agent who is responsible for 
 dealing with the commissioner of human services on all matters 
 provided for in this chapter and on whom service of all notices 
 and orders must be made.  The agent must be authorized to accept 
 service on behalf of all of the controlling individuals of the 
 program.  Service on the agent is service on all of the 
 controlling individuals of the program.  It is not a defense to 
 any action arising under this chapter that service was not made 
 on each controlling individual of the program.  The designation 
 of one or more controlling individuals as agents under this 
 paragraph does not affect the legal responsibility of any other 
 controlling individual under this chapter. 

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

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

    Subd. 2.    Notification of affected municipality.  The 
 commissioner must not issue a license without giving 30 calendar 
 days' written notice to the affected municipality or other 
 political subdivision unless the program is considered a 
 permitted single-family residential use under sections 245A.11 
 and 245A.14.  The notification must be given before the first 
 issuance of a license and annually after that time if annual 
 notification is requested in writing by the affected 
 municipality or other political subdivision.  State funds must 
 not be made available to or be spent by an agency or department 
 of state, county, or municipal government for payment to a 
 residential or nonresidential program licensed under this 
 chapter until the provisions of this subdivision have been 
 complied with in full.  The provisions of this subdivision shall 
 not apply to programs located in hospitals. 

    Subd. 3.    Background study.  Individuals and 
 organizations that are required under section 245C.03 to have or 
 initiate background studies shall comply with the requirements 
 in chapter 245C. 

    Subd. 3a.    Notice of background study results; 
 commissioner's determination of risk of harm.  The notice of 
 background study results and the commissioner's determination of 
 the background subject's risk of harm shall be governed 
 according to sections 245C.16 and 245C.17. 

    Subd. 3b.    Reconsideration of disqualification.  
 Reconsideration of a disqualification shall be governed 
 according to sections 245C.21 to 245C.27. 

    Subd. 3c.    Contested case.  Contested case hearing 
 rights related to a disqualification shall be governed according 
 to section 245C.28. 

    Subd. 3d.    Disqualification.  Disqualification shall 
 be governed according to sections 245C.14 and 245C.15. 

    Subd. 3e.    Variance for a disqualified individual.  A 
 variance for a disqualified individual shall be governed 
 according to section 245C.30. 

    Subd. 3f.    Conclusive determinations or dispositions.  
 Whether a disqualification determination or maltreatment 
 determination or disposition is deemed conclusive shall be 
 governed according to section 245C.29. 

    Subd. 4.    Inspections; waiver.  (a) Before issuing an 
 initial license, the commissioner shall conduct an inspection of 
 the program.  The inspection must include but is not limited to: 

    (1) an inspection of the physical plant; 

    (2) an inspection of records and documents; 

    (3) an evaluation of the program by consumers of the 
 program; and 

    (4) observation of the program in operation. 

    For the purposes of this subdivision, "consumer" means a 
 person who receives the services of a licensed program, the 
 person's legal guardian, or the parent or individual having 
 legal custody of a child who receives the services of a licensed 
 program. 

    (b) The evaluation required in paragraph (a), clause (3) or 
 the observation in paragraph (a), clause (4) is not required 
 prior to issuing an initial license under subdivision 7.  If the 
 commissioner issues an initial license under subdivision 7, 
 these requirements must be completed within one year after the 
 issuance of an initial license.  

    Subd. 5.    Commissioner's right of access.  When the 
 commissioner is exercising the powers conferred by this chapter 
 and section 245.69, the commissioner must be given access to the 
 physical plant and grounds where the program is provided, 
 documents, persons served by the program, and staff whenever the 
 program is in operation and the information is relevant to 
 inspections or investigations conducted by the commissioner.  
 The commissioner must be given access without prior notice and 
 as often as the commissioner considers necessary if the 
 commissioner is conducting an investigation of allegations of 
 maltreatment or other violation of applicable laws or rules.  In 
 conducting inspections, the commissioner may request and shall 
 receive assistance from other state, county, and municipal 
 governmental agencies and departments.  The applicant or license 
 holder shall allow the commissioner to photocopy, photograph, 
 and make audio and video tape recordings during the inspection 
 of the program at the commissioner's expense.  The commissioner 
 shall obtain a court order or the consent of the subject of the 
 records or the parents or legal guardian of the subject before 
 photocopying hospital medical records.  

    Persons served by the program have the right to refuse to 
 consent to be interviewed, photographed, or audio or videotaped. 
 Failure or refusal of an applicant or license holder to fully 
 comply with this subdivision is reasonable cause for the 
 commissioner to deny the application or immediately suspend or 
 revoke the license. 

    Subd. 6.    Commissioner's evaluation.  Before issuing, 
 denying, suspending, revoking, or making conditional a license, 
 the commissioner shall evaluate information gathered under this 
 section.  The commissioner's evaluation shall consider facts, 
 conditions, or circumstances concerning the program's operation, 
 the well-being of persons served by the program, available 
 consumer evaluations of the program, and information about the 
 qualifications of the personnel employed by the applicant or 
 license holder. 

    The commissioner shall evaluate the results of the study 
 required in subdivision 3 and determine whether a risk of harm 
 to the persons served by the program exists.  In conducting this 
 evaluation, the commissioner shall apply the disqualification 
 standards set forth in chapter 245C.  

    Subd. 7.    Issuance of a license; extension of a license. 
  (a) If the commissioner determines that the program complies 
 with all applicable rules and laws, the commissioner shall issue 
 a license.  At minimum, the license shall state:  

    (1) the name of the license holder; 

    (2) the address of the program; 

    (3) the effective date and expiration date of the license; 

    (4) the type of license; 

    (5) the maximum number and ages of persons that may receive 
 services from the program; and 

    (6) any special conditions of licensure. 

    (b) The commissioner may issue 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 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) The commissioner shall not issue a license if the 
 applicant, license holder, or controlling individual has:  

    (1) been disqualified and the disqualification was not set 
 aside; 

    (2) has been denied a license within the past two years; or 

    (3) had a license revoked within the past five years. 

    For purposes of reimbursement for meals only, under the 
 Child and Adult Care Food Program, Code of Federal Regulations, 
 title 7, subtitle B, chapter II, subchapter A, part 226, 
 relocation within the same county by a licensed family day care 
 provider, shall be considered an extension of the license for a 
 period of no more than 30 calendar days or until the new license 
 is issued, whichever occurs first, provided the county agency 
 has determined the family day care provider meets licensure 
 requirements at the new location. 

    Unless otherwise specified by statute, all licenses expire 
 at 12:01 a.m. on the day after the expiration date stated on the 
 license.  A license holder must apply for and be granted a new 
 license to operate the program or the program must not be 
 operated after the expiration date.  

    Subd. 8.    Hospital inspections.  Licensing authority 
 granted under this section shall not modify the presumption 
 regarding routine hospital inspections under section 144.55, 
 subdivision 4. 

    Subd. 9.    Variances.  The commissioner may grant 
 variances to rules that do not affect the health or safety of 
 persons in a licensed program if the following conditions are 
 met:  

    (1) the variance must be requested by an applicant or 
 license holder on a form and in a manner prescribed by the 
 commissioner; 

    (2) the request for a variance must include the reasons 
 that the applicant or license holder cannot comply with a 
 requirement as stated in the rule and the alternative equivalent 
 measures that the applicant or license holder will follow to 
 comply with the intent of the rule; and 

    (3) the request must state the period of time for which the 
 variance is requested.  

    The commissioner may grant a permanent variance when 
 conditions under which the variance is requested do not affect 
 the health or safety of persons being served by the licensed 
 program, nor compromise the qualifications of staff to provide 
 services.  The permanent variance shall expire as soon as the 
 conditions that warranted the variance are modified in any way.  
 Any applicant or license holder must inform the commissioner of 
 any changes or modifications that have occurred in the 
 conditions that warranted the permanent variance.  Failure to 
 advise the commissioner shall result in revocation of the 
 permanent variance and may be cause for other sanctions under 
 sections 245A.06 and 245A.07. 

    The commissioner's decision to grant or deny a variance 
 request is final and not subject to appeal under the provisions 
 of chapter 14. 

    Subd. 10.    Adoption agency; additional requirements.  
 In addition to the other requirements of this section, an 
 individual, corporation, partnership, voluntary association, 
 other organization, or controlling individual applying for a 
 license to place children for adoption must: 

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

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

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

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

    Subd. 11.    Education program; additional requirement.  
 (a) The education program offered in a residential or 
 nonresidential program, except for child care, foster care, or 
 services for adults, must be approved by the commissioner of 
 education before the commissioner of human services may grant a 
 license to the program. 

    (b) A residential program licensed under Minnesota Rules, 
 parts 9545.0905 to 9545.1125 or 9545.1400 to 9545.1480, may 
 serve persons through the age of 19 when: 

    (1) the admission is necessary for a person to complete a 
 secondary school program or its equivalent, or it is necessary 
 to facilitate a transition period after completing the secondary 
 school program or its equivalent for up to four months in order 
 for the resident to obtain other living arrangements; 

    (2) the facility develops policies, procedures, and plans 
 required under section 245A.65; 

    (3) the facility documents an assessment of the 18- or 
 19-year-old person's risk of victimizing children residing in 
 the facility, and develops necessary risk reduction measures, 
 including sleeping arrangements, to minimize any risk of harm to 
 children; and 

    (4) notwithstanding the license holder's target population 
 age range, whenever persons age 18 or 19 years old are receiving 
 residential services, the age difference among residents may not 
 exceed five years. 

    (c) Nothing in this paragraph precludes the license holder 
 from seeking other variances under subdivision 9. 

    Subd. 12.    Adult day care facilities that serve persons 
 with Alzheimer's disease or related disorders.  (a) If an 
 adult day care facility markets or otherwise promotes services 
 for persons with Alzheimer's disease or related disorders, the 
 facility's direct care staff and their supervisors must be 
 trained in dementia care. 

    (b) Areas of required training include: 

    (1) an explanation of Alzheimer's disease and related 
 disorders; 

    (2) assistance with activities of daily living; 

    (3) problem solving with challenging behaviors; and 

    (4) communication skills. 

    (c) The facility shall provide to consumers in written or 
 electronic form a description of the training program, the 
 categories of employees trained, the frequency of training, and 
 the basic topics covered. 

    Subd. 13.    Residential programs handling resident funds 
 and property; additional requirements.  (a) A license holder 
 must ensure that residents retain the use and availability of 
 personal funds or property unless restrictions are justified in 
 the resident's individual plan. 

    (b) The license holder must ensure separation of resident 
 funds from funds of the license holder, the residential program, 
 or program staff. 

    (c) Whenever the license holder assists a resident with the 
 safekeeping of funds or other property, the license holder must: 

    (1) immediately document receipt and disbursement of the 
 resident's funds or other property at the time of receipt or 
 disbursement, including the signature of the resident, 
 conservator, or payee; 

    (2) provide a statement, at least quarterly, itemizing 
 receipts and disbursements of resident funds or other property; 
 and 

    (3) return to the resident upon the resident's request, 
 funds and property in the license holder's possession subject to 
 restrictions in the resident's treatment plan, as soon as 
 possible, but no later than three working days after the date of 
 request. 

    (d) License holders and program staff must not: 

    (1) borrow money from a resident; 

    (2) purchase personal items from a resident; 

    (3) sell merchandise or personal services to a resident; 

    (4) require a resident to purchase items for which the 
 license holder is eligible for reimbursement; or 

    (5) use resident funds to purchase items for which the 
 facility is already receiving public or private payments. 

    HIST: 1987 c 333 s 4; 1988 c 411 s 3,4; 1988 c 608 s 2; 1989 c 
 282 art 2 s 69-76; 1990 c 542 s 7; 1990 c 568 art 2 s 42-44; 
 1991 c 38 s 1; 1992 c 513 art 9 s 10; 1993 c 171 s 3,4; 1993 c 
 306 s 1; 1993 c 338 s 5; 1993 c 351 s 29; 1994 c 434 s 1-3; 1994 
 c 465 art 1 s 29; 1994 c 631 s 5,31; 1995 c 207 art 2 s 7-10; 
 1995 c 229 art 3 s 5; art 4 s 11; 1996 c 408 art 10 s 5; 1997 c 
 177 s 1; 1997 c 248 s 10-18; 1998 c 367 art 2 s 32; 1998 c 406 
 art 1 s 6,7,37; 1998 c 407 art 9 s 6,7; 1999 c 139 art 4 s 2; 
 1999 c 241 art 2 s 53; 1999 c 245 art 4 s 9; 2000 c 260 s 29; 
 2000 c 319 s 1; 2000 c 327 s 3-6; 1Sp2001 c 9 art 14 s 11-18; 
 2002 c 292 s 1,2; 2002 c 375 art 1 s 9-12; 2002 c 379 art 1 s 
 113; 2003 c 15 art 2 s 1-8; 2003 c 37 s 4; 2003 c 130 s 12; 2004 
 c 288 art 1 s 10-14 

     245A.041 Systems and records. 

    Subdivision 1.    Establishment; use.  The 
 commissioner's establishment and use of systems and records to 
 fulfill the requirements under chapter 245C shall be governed 
 according to section 245C.32, subdivisions 1 and 2. 

    Subd. 2.    National records search.  National records 
 searches shall be governed according to section 245C.32, 
 subdivision 3. 

    HIST: 2001 c 163 s 1; 2003 c 15 art 2 s 9 

     245A.05 Denial of application. 

    The commissioner may deny a license if an applicant fails 
 to comply with applicable laws or rules, or knowingly withholds 
 relevant information from or gives false or misleading 
 information to the commissioner in connection with an 
 application for a license or during an investigation.  An 
 applicant whose application has been denied by the commissioner 
 must be given notice of the denial.  Notice must be given by 
 certified mail or personal service.  The notice must state the 
 reasons the application was denied and must inform the applicant 
 of the right to a contested case hearing under chapter 14 and 
 Minnesota Rules, parts 1400.8505 to 1400.8612.  The applicant 
 may appeal the denial by notifying the commissioner in writing 
 by certified mail or personal service within 20 calendar days 
 after receiving notice that the application was denied.  Section 
 245A.08 applies to hearings held to appeal the commissioner's 
 denial of an application. 

    HIST: 1987 c 333 s 5; 1Sp2001 c 9 art 14 s 19; 2002 c 379 art 
 1 s 113; 2004 c 288 art 1 s 15 

     245A.06 Correction order and conditional license. 

    Subdivision 1.    Contents of correction orders and 
 conditional licenses.  (a) If the commissioner finds that the 
 applicant or license holder has failed to comply with an 
 applicable law or rule and this failure does not imminently 
 endanger the health, safety, or rights of the persons served by 
 the program, the commissioner may issue a correction order and 
 an order of conditional license to the applicant or license 
 holder.  When issuing a conditional license, the commissioner 
 shall consider the nature, chronicity, or severity of the 
 violation of law or rule and the effect of the violation on the 
 health, safety, or rights of persons served by the program.  The 
 correction order or conditional license must state: 

    (1) the conditions that constitute a violation of the law 
 or rule; 

    (2) the specific law or rule violated; 

    (3) the time allowed to correct each violation; and 

    (4) if a license is made conditional, the length and terms 
 of the conditional license. 

    (b) Nothing in this section prohibits the commissioner from 
 proposing a sanction as specified in section 245A.07, prior to 
 issuing a correction order or conditional license. 

    Subd. 2.    Reconsideration of correction orders.  If 
 the applicant or license holder believes that the contents of 
 the commissioner's correction order are in error, the applicant 
 or license holder may ask the Department of Human Services to 
 reconsider the parts of the correction order that are alleged to 
 be in error.  The request for reconsideration must be made in 
 writing and must be postmarked and sent to the commissioner 
 within 20 calendar days after receipt of the correction order by 
 the applicant or license holder, and: 

    (1) specify the parts of the correction order that are 
 alleged to be in error; 

    (2) explain why they are in error; and 

    (3) include documentation to support the allegation of 
 error. 

    A request for reconsideration does not stay any provisions 
 or requirements of the correction order.  The commissioner's 
 disposition of a request for reconsideration is final and not 
 subject to appeal under chapter 14. 

    Subd. 3.    Failure to comply.  If the commissioner 
 finds that the applicant or license holder has not corrected the 
 violations specified in the correction order or conditional 
 license, the commissioner may impose a fine and order other 
 licensing sanctions pursuant to section 245A.07.  

    Subd. 4.    Notice of conditional license; reconsideration 
 of conditional license.  If a license is made conditional, the 
 license holder must be notified of the order 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 
 conditional license was ordered and must inform the license 
 holder of the right to request reconsideration of the 
 conditional license by the commissioner.  The license holder may 
 request reconsideration of the order of conditional license by 
 notifying the commissioner by certified mail or personal 
 service.  The request must be made in writing.  If sent by 
 certified mail, the request must be postmarked and sent to the 
 commissioner within ten calendar days after the license holder 
 received the order.  If a request is made by personal service, 
 it must be received by the commissioner within ten calendar days 
 after the license holder received the order.  The license holder 
 may submit with the request for reconsideration written argument 
 or evidence in support of the request for reconsideration.  A 
 timely request for reconsideration shall stay imposition of the 
 terms of the conditional license until the commissioner issues a 
 decision on the request for reconsideration.  If the 
 commissioner issues a dual order of conditional license under 
 this section and an order to pay a fine under section 245A.07, 
 subdivision 3, the license holder has a right to a contested 
 case hearing under chapter 14 and Minnesota Rules, parts 
 1400.8505 to 1400.8612.  The scope of the contested case hearing 
 shall include the fine and the conditional license.  In this 
 case, a reconsideration of the conditional license will not be 
 conducted under this section. 

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

    Subd. 5. Repealed by amendment, 1Sp2001 c 9 art 14 s 20 

    Subd. 5a. Repealed by amendment, 1Sp2001 c 9 art 14 s 20 

    Subd. 6. Repealed by amendment, 1Sp2001 c 9 art 14 s 20 

    Subd. 7. Repealed by amendment, 1Sp2001 c 9 art 14 s 20 

    HIST: 1987 c 333 s 6; 1989 c 282 art 2 s 77-79; 1993 c 338 s 
 6; 1995 c 207 art 2 s 11-13; 1997 c 248 s 19-25; 1Sp2001 c 9 art 
 14 s 20; 2002 c 379 art 1 s 113; 2004 c 288 art 1 s 16,17 

     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, or the actions of other individuals or conditions 
 in the program pose an imminent risk of harm to the health, 
 safety, or rights of persons served by the program, 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 1400.8505 to 1400.8612, 
 must be delivered by personal service to the address shown on 
 the application or the last known address of the license 
 holder.  The license holder may appeal an order immediately 
 suspending a license.  The appeal of an order immediately 
 suspending a license must be made in writing by certified mail 
 or personal service.  If mailed, the appeal must be postmarked 
 and sent to the commissioner within five calendar days after the 
 license holder receives notice that the license has been 
 immediately suspended.  If a request is made by personal 
 service, it must be received by the commissioner within five 
 calendar days after the license holder received the order.  A 
 license holder and any controlling individual shall discontinue 
 operation of the program upon receipt of the commissioner's 
 order to immediately suspend the license. 

    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 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. 

    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, has a disqualification which has not been set 
 aside under section 245C.22, 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 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. 

    (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 1400.8505 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), 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 1400.8505 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; 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; 2004 c 288 art 1 s 18-20 

     245A.08 Hearings. 

    Subdivision 1.    Receipt of appeal; conduct of hearing. 
  Upon receiving a timely appeal or petition pursuant to 
 section 245A.05, 245A.07, subdivision 3, or 245C.28, the 
 commissioner shall issue a notice of and order for hearing to 
 the appellant under chapter 14 and Minnesota Rules, parts 
 1400.8505 to 1400.8612. 

    Subd. 2.    Conduct of hearings.  At any hearing 
 provided for by section 245A.05, 245A.07, subdivision 3, or 
 245C.28, the appellant may be represented by counsel and has the 
 right to call, examine, and cross-examine witnesses.  The 
 administrative law judge may require the presence of witnesses 
 and evidence by subpoena on behalf of any party.  

    Subd. 2a.    Consolidated contested case hearings for 
 sanctions based on maltreatment determinations and 
 disqualifications.  (a) When a denial of a license under 
 section 245A.05 or a licensing sanction under section 245A.07, 
 subdivision 3, is based on a disqualification for which 
 reconsideration was requested and which was not set aside under 
 section 245C.22, the scope of the contested case hearing shall 
 include the disqualification and the licensing sanction or 
 denial of a license.  When the licensing sanction or denial of a 
 license is based on a determination of maltreatment under 
 section 626.556 or 626.557, or a disqualification for serious or 
 recurring maltreatment which was not set aside, the scope of the 
 contested case hearing shall include the maltreatment 
 determination, disqualification, and the licensing sanction or 
 denial of a license.  In such cases, a fair hearing under 
 section 256.045 shall not be conducted as provided for in 
 sections 626.556, subdivision 10i, and 626.557, subdivision 9d. 

    (b) In consolidated contested case hearings regarding 
 sanctions issued in family child care, child foster care, and 
 adult foster care, the county attorney shall defend the 
 commissioner's orders in accordance with section 245A.16, 
 subdivision 4. 

    (c) The commissioner's final order under subdivision 5 is 
 the final agency action on the issue of maltreatment and 
 disqualification, including for purposes of subsequent 
 background studies under chapter 245C and is the only 
 administrative appeal of the final agency determination, 
 specifically, including a challenge to the accuracy and 
 completeness of data under section 13.04. 

    (d) When consolidated hearings under this subdivision 
 involve a licensing sanction based on a previous maltreatment 
 determination for which the commissioner has issued a final 
 order in an appeal of that determination under section 256.045, 
 or the individual failed to exercise the right to appeal the 
 previous maltreatment determination under section 626.556, 
 subdivision 10i, or 626.557, subdivision 9d, the commissioner's 
 order is conclusive on the issue of maltreatment.  In such 
 cases, the scope of the administrative law judge's review shall 
 be limited to the disqualification and the licensing sanction or 
 denial of a license.  In the case of a denial of a license or a 
 licensing sanction issued to a facility based on a maltreatment 
 determination regarding an individual who is not the license 
 holder or a household member, the scope of the administrative 
 law judge's review includes the maltreatment determination. 

    (e) If a maltreatment determination or disqualification, 
 which was not set aside under section 245C.22, is the basis for 
 a denial of a license under section 245A.05 or a licensing 
 sanction under section 245A.07, and the disqualified subject is 
 an individual other than the license holder and upon whom a 
 background study must be conducted under section 245C.03, the 
 hearings of all parties may be consolidated into a single 
 contested case hearing upon consent of all parties and the 
 administrative law judge.  

    Subd. 3.    Burden of proof.  (a) At a hearing regarding 
 a licensing sanction under section 245A.07, including 
 consolidated hearings under subdivision 2a, the commissioner may 
 demonstrate reasonable cause for action taken by submitting 
 statements, reports, or affidavits to substantiate the 
 allegations that the license holder failed to comply fully with 
 applicable law or rule.  If the commissioner demonstrates that 
 reasonable cause existed, the burden of proof shifts to the 
 license holder to demonstrate by a preponderance of the evidence 
 that the license holder was in full compliance with those laws 
 or rules that the commissioner alleges the license holder 
 violated, at the time that the commissioner alleges the 
 violations of law or rules occurred. 

    (b) At a hearing on denial of an application, the applicant 
 bears the burden of proof to demonstrate by a preponderance of 
 the evidence that the appellant has complied fully with this 
 chapter and other applicable law or rule and that the 
 application should be approved and a license granted. 

    Subd. 4.    Recommendation of administrative law judge.  
 The administrative law judge shall recommend whether or not the 
 commissioner's order should be affirmed.  The recommendations 
 must be consistent with this chapter and the rules of the 
 commissioner.  The recommendations must be in writing and 
 accompanied by findings of fact and conclusions and must be 
 mailed to the parties by certified mail to their last known 
 addresses as shown on the license or application. 

    Subd. 5.    Notice of the commissioner's final order.  
 After considering the findings of fact, conclusions, and 
 recommendations of the administrative law judge, the 
 commissioner shall issue a final order.  The commissioner shall 
 consider, but shall not be bound by, the recommendations of the 
 administrative law judge.  The appellant must be notified of the 
 commissioner's final order as required by chapter 14 and 
 Minnesota Rules, parts 1400.8505 to 1400.8612.  The notice must 
 also contain information about the appellant's rights under 
 chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612.  
 The institution of proceedings for judicial review of the 
 commissioner's final order shall not stay the enforcement of the 
 final order except as provided in section 14.65.  A license 
 holder and each controlling individual of a license holder whose 
 license has been revoked because of noncompliance with 
 applicable law or rule must not be granted a license for five 
 years following the revocation.  An applicant whose application 
 was denied must not be granted a license for two years following 
 a denial, unless the applicant's subsequent application contains 
 new information which constitutes a substantial change in the 
 conditions that caused the previous denial. 

    HIST: 1987 c 333 s 8; 1989 c 282 art 2 s 81; 1990 c 568 art 2 
 s 46; 1997 c 248 s 28,29; 1999 c 245 art 4 s 10; 2000 c 327 s 6; 
 1Sp2001 c 9 art 14 s 22; 2002 c 379 art 1 s 113; 2003 c 15 art 1 
 s 33; 2004 c 288 art 1 s 21-23 

     245A.085 Consolidation of hearings; reconsideration. 

    Hearings authorized under this chapter, chapter 245C, and 
 sections 256.045, 626.556, and 626.557, shall be consolidated if 
 feasible and in accordance with other applicable statutes and 
 rules.  Reconsideration under sections 245C.28; 626.556, 
 subdivision 10i; and 626.557, subdivision 9d, shall also be 
 consolidated if feasible. 

    HIST: 2002 c 375 art 1 s 15; 2003 c 15 art 1 s 33; 2004 c 288 
 art 1 s 24 

     245A.09 Rules. 

    Subdivision 1.    Commissioner's authority.  The 
 commissioner shall adopt rules under chapter 14 to govern the 
 operation, maintenance, and licensure of programs subject to 
 licensure under this chapter.  The commissioner shall not adopt 
 any rules that are inconsistent with or duplicative of existing 
 state or federal regulations.  Nothing in this subdivision shall 
 be construed to prohibit the commissioner from incorporating 
 existing state or federal regulations or accreditation standards 
 by reference. 

    Subd. 2.    Standards and regulatory methods.  This 
 subdivision applies to rules governing this chapter that are 
 adopted after July 1, 1987.  As appropriate for each type of 
 license:  

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

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

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

    (1) standards for adequate staff that take into account the 
 age distribution and severity of handicap of persons served by 
 the program; 

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

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

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

    (5) health and sanitation standards. 

    Subd. 3.    Reduction of fees.  The commissioner may 
 adopt rules under subdivision 1 to provide for the reduction of 
 fees established under section 245A.10 when a license holder 
 substantially exceeds the basic standards for licensure. 

    Subd. 4.    Evaluation of rules.  For rules adopted 
 under this section after July 1, 1987, the commissioner shall 
 evaluate the effects of the rules within three years after the 
 date of adoption and at least once every five years thereafter.  
 The evaluation must include an assessment of any discrepancies 
 between the actual and intended effects of the rules, 
 identification of necessary revisions, if any, and a discussion 
 of the rules' effect on the availability and quality of licensed 
 programs.  The commissioner shall consider the results of the 
 evaluation in amending and writing rules. 

    Subd. 5.    Other duties of the commissioner.  For rules 
 adopted after July 1, 1987, the commissioner shall: 

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

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

    (3) upon request, interpret rules for applicants and 
 license holders; and 

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

    Subd. 6.    Consultation with affected parties.  In 
 developing rules, the commissioner shall request and receive 
 consultation from:  other state departments and agencies; 
 counties and other affected political subdivisions that reflect 
 the diversity of political subdivisions affected by the rule; 
 persons and relatives of persons using the program governed by 
 the rule; advocacy groups; and representatives of license 
 holders affected by the rule.  In choosing parties for 
 consultation, the commissioner shall choose individuals and 
 representatives of groups that reflect a cross section of urban, 
 suburban, and rural areas of the state. 

    Subd. 7.    Regulatory methods.  (a) Where appropriate 
 and feasible the commissioner shall identify and implement 
 alternative methods of regulation and enforcement to the extent 
 authorized in this subdivision.  These methods shall include: 

    (1) expansion of the types and categories of licenses that 
 may be granted; 

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

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

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

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

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

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

    Subd. 8.    Interpretive guidelines; authority.  The 
 commissioner of human services may develop and publish 
 interpretive guidelines. 

    Subd. 9.    Effect of interpretive guidelines.  
 Interpretive guidelines do not have the force and effect of law 
 and have no precedential effect, but may be relied on by 
 consumers, providers of service, county agencies, the Department 
 of Human Services, and others concerned until revoked or 
 modified.  A guideline may be expressly revoked or modified by 
 the commissioner, by the issuance of another interpretive 
 guideline, but may not be revoked or modified retroactively to 
 the detriment of consumers, providers of service, county 
 agencies, the Department of Human Services, or others 
 concerned.  A change in the law or an interpretation of the law 
 occurring after the interpretive guidelines are issued, whether 
 in the form of a statute, court decision, administrative ruling, 
 or subsequent interpretive guideline, results in the revocation 
 or modification of the previously adopted guidelines to the 
 extent that the change affects the guidelines. 

    Subd. 10.    Rulemaking process; commissioner exempted.  
 When developing, making, adopting, and issuing interpretive 
 guidelines under the authority granted under subdivision 8, the 
 commissioner is exempt from the rulemaking provisions of chapter 
 14 until July 1, 1998. 

    Subd. 11.    Issuance; discretion of the commissioner.  
 The issuance of interpretive guidelines is at the discretion of 
 the commissioner of human services. 

    Subd. 12.    Publication of guidelines.  The 
 commissioner shall publish notice of interpretive guidelines 
 availability in the State Register.  The commissioner may 
 publish or make available the interpretive guidelines in any 
 manner determined by the commissioner, provided they are 
 accessible to the general public.  The commissioner may charge a 
 reasonable fee for copies of the guidelines requested by 
 interested parties when they are provided by the commissioner. 

    HIST: 1987 c 333 s 9; 1993 c 338 s 7; 1995 c 207 art 2 s 
 15-19; 1Sp1995 c 3 art 16 s 13; 1997 c 187 art 4 s 7; 1997 c 248 
 s 30; 2000 c 327 s 6; 2003 c 130 s 12; 1Sp2003 c 14 art 6 s 8 

  245A.091 Repealed, 1997 c 248 s 51 

     245A.095 Review of rules for programs serving persons 
  with mental illnesses. 

    Subdivision 1.    License required.  Residential 
 programs with five or more persons with a mental illness must be 
 licensed under this chapter.  To assure that this requirement is 
 met, the commissioner of health, in cooperation with the 
 commissioner of human services, shall monitor licensed boarding 
 care homes, board and lodging houses, and supervised living 
 facilities. 

    By January 1, 1989, the commissioner of health shall 
 recommend to the legislature an appropriate method for enforcing 
 this requirement. 

    Subd. 1a.    Rules.  In developing rules for serving 
 persons with mental illness, the commissioner of human services 
 shall assure that persons with mental illness are provided with 
 needed treatment or support in the least restrictive, most 
 appropriate environment, that supportive residential care in 
 small homelike settings is available for persons needing that 
 care, and that a mechanism is developed to ensure that no person 
 is placed in a care or treatment setting inappropriate for 
 meeting the person's needs.  To the maximum extent possible, the 
 rule shall assure that length of stay is governed solely by 
 client need and shall allow for a variety of innovative and 
 flexible approaches in meeting residential and support needs of 
 persons with mental illness.  

    Subd. 2.    Specific review of rules.  The commissioner 
 shall: 

    (1) provide in rule for additional types of programs and 
 services, including but not limited to supportive small group 
 residential care, semi-independent and apartment living 
 services, and crisis and respite services, to address the 
 residential treatment and support needs of persons with mental 
 illness; 

    (2) review category I and II programs established in 
 Minnesota Rules, parts 9520.0500 to 9520.0690 to ensure that the 
 categories of programs provide a continuum of residential 
 service programs for persons with mental illness, including but 
 not limited to programs meeting needs for intensive treatment, 
 crisis and respite care, and rehabilitation and training; 

    (3) provide in rule for a definition of the term 
 "treatment" as used in relation to persons with mental illness; 

    (4) adjust funding mechanisms by rule as needed to reflect 
 the requirements established by rule for services being 
 provided; 

    (5) review and recommend staff educational requirements and 
 staff training as needed; 

    (6) review and make changes in rules relating to 
 residential care and service programs for persons with mental 
 illness as the commissioner may determine necessary; and 

    (7) the commissioner shall report to the legislature by 
 February 15, 1990, on the status of rulemaking with respect to 
 clauses (1) to (6).  

    Subd. 3. Repealed, 1989 c 282 art 4 s 64 

    HIST: 1987 c 333 s 10; 1988 c 411 s 5; 1989 c 282 art 4 s 61; 
 2000 c 327 s 6 

     245A.10 Fees. 

    Subdivision 1.    Application or license fee required, 
 programs exempt from fee.  (a) Unless exempt under paragraph 
 (b), the commissioner shall charge a fee for evaluation of 
 applications and inspection of programs which are licensed under 
 this chapter.  

    (b) Except as provided under subdivision 2, no application 
 or license fee shall be charged for child foster care, adult 
 foster care, family and group family child care or 
 state-operated programs, unless the state-operated program is an 
 intermediate care facility for persons with mental retardation 
 or related conditions (ICF/MR). 

    Subd. 2.    County fees for background studies and 
 licensing inspections in family and group family child care.  
 (a) For purposes of family and group family child care licensing 
 under this chapter, a county agency may charge a fee to an 
 applicant or license holder to recover the actual cost of 
 background studies, but in any case not to exceed $100 
 annually.  A county agency may also charge a fee to an applicant 
 or license holder to recover the actual cost of licensing 
 inspections, but in any case not to exceed $150 annually. 

    (b) A county agency may charge a fee to a legal nonlicensed 
 child care provider or applicant for authorization to recover 
 the actual cost of background studies completed under section 
 119B.125, but in any case not to exceed $100 annually. 

    (c) Counties may elect to reduce or waive the fees in 
 paragraph (a) or (b):  

    (1) in cases of financial hardship; 

    (2) if the county has a shortage of providers in the 
 county's area; 

    (3) for new providers; or 

    (4) for providers who have attained at least 16 hours of 
 training before seeking initial licensure. 

    (d) Counties may allow providers to pay the applicant fees 
 in paragraph (a) or (b) on an installment basis for up to one 
 year.  If the provider is receiving child care assistance 
 payments from the state, the provider may have the fees under 
 paragraph (a) or (b) deducted from the child care assistance 
 payments for up to one year and the state shall reimburse the 
 county for the county fees collected in this manner. 

    Subd. 3.    Application fee for initial license or 
 certification.  (a) For fees required under subdivision 1, an 
 applicant for an initial license or certification issued by the 
 commissioner shall submit a $500 application fee with each new 
 application required under this subdivision.  The application 
 fee shall not be prorated, is nonrefundable, and is in lieu of 
 the annual license or certification fee that expires on December 
 31.  The commissioner shall not process an application until the 
 application fee is paid.  

    (b) Except as provided in clauses (1) to (3), an applicant 
 shall apply for a license to provide services at a specific 
 location.  

    (1) For a license to provide waivered services to persons 
 with developmental disabilities or related conditions, an 
 applicant shall submit an application for each county in which 
 the waivered services will be provided.  

    (2) For a license to provide semi-independent living 
 services to persons with developmental disabilities or related 
 conditions, an applicant shall submit a single application to 
 provide services statewide. 

    (3) For a license to provide independent living assistance 
 for youth under section 245A.22, an applicant shall submit a 
 single application to provide services statewide.  

    Subd. 4.    Annual license or certification fee for 
 programs with licensed capacity.  (a) Child care centers and 
 programs with a licensed capacity shall pay an annual 
 nonrefundable license or certification fee based on the 
 following schedule: 

     Licensed Capacity          Child Care         Other
                                Center             Program
                                License Fee        License Fee
      1 to 24 persons               $300               $400
      25 to 49 persons              $450               $600
      50 to 74 persons              $600               $800
      75 to 99 persons              $750             $1,000
      100 to 124 persons            $900             $1,200
      125 to 149 persons          $1,200             $1,400
      150 to 174 persons          $1,400             $1,600
      175 to 199 persons          $1,600             $1,800
      200 to 224 persons          $1,800             $2,000
      225 or more persons         $2,000             $2,500

    (b) A day training and habilitation program serving persons 
 with developmental disabilities or related conditions shall be 
 assessed a license fee based on the schedule in paragraph (a) 
 unless the license holder serves more than 50 percent of the 
 same persons at two or more locations in the community.  When a 
 day training and habilitation program serves more than 50 
 percent of the same persons in two or more locations in a 
 community, the day training and habilitation program shall pay a 
 license fee based on the licensed capacity of the largest 
 facility and the other facility or facilities shall be charged a 
 license fee based on a licensed capacity of a residential 
 program serving one to 24 persons. 

    Subd. 5.    Annual license or certification fee for 
 programs without a licensed capacity.  (a) Except as provided 
 in paragraph (b), a program without a stated licensed capacity 
 shall pay a license or certification fee of $400.  

    (b) A mental health center or mental health clinic 
 requesting certification for purposes of insurance and 
 subscriber contract reimbursement under Minnesota Rules, parts 
 9520.0750 to 9520.0870, shall pay a certification fee of $1,000 
 per year.  If the mental health center or mental health clinic 
 provides services at a primary location with satellite 
 facilities, the satellite facilities shall be certified with the 
 primary location without an additional charge. 

    Subd. 6.    License not issued until license or 
 certification fee is paid.  The commissioner shall not issue a 
 license or certification until the license or certification fee 
 is paid.  The commissioner shall send a bill for the license or 
 certification fee to the billing address identified by the 
 license holder.  If the license holder does not submit the 
 license or certification fee payment by the due date, the 
 commissioner shall send the license holder a past due notice.  
 If the license holder fails to pay the license or certification 
 fee by the due date on the past due notice, the commissioner 
 shall send a final notice to the license holder informing the 
 license holder that the program license will expire on December 
 31 unless the license fee is paid before December 31.  If a 
 license expires, the program is no longer licensed and, unless 
 exempt from licensure under section 245A.03, subdivision 2, must 
 not operate after the expiration date.  After a license expires, 
 if the former license holder wishes to provide licensed 
 services, the former license holder must submit a new license 
 application and application fee under subdivision 3. 

    HIST: 1987 c 333 s 11; 1995 c 158 s 4; 2000 c 327 s 6; 1Sp2003 
 c 14 art 6 s 9 

     245A.11 Special conditions for residential programs. 

    Subdivision 1.    Policy statement.  It is the policy of 
 the state that persons shall not be excluded by municipal zoning 
 ordinances or other land use regulations from the benefits of 
 normal residential surroundings. 

    Subd. 2.    Permitted single-family residential use.  
 Residential programs with a licensed capacity of six or fewer 
 persons shall be considered a permitted single-family 
 residential use of property for the purposes of zoning and other 
 land use regulations, except that a residential program whose 
 primary purpose is to treat juveniles who have violated criminal 
 statutes relating to sex offenses or have been adjudicated 
 delinquent on the basis of conduct in violation of criminal 
 statutes relating to sex offenses shall not be considered a 
 permitted use.  This exception shall not apply to residential 
 programs licensed before July 1, 1995.  Programs otherwise 
 allowed under this subdivision shall not be prohibited by 
 operation of restrictive covenants or similar restrictions, 
 regardless of when entered into, which cannot be met because of 
 the nature of the licensed program, including provisions which 
 require the home's occupants be related, and that the home must 
 be occupied by the owner, or similar provisions. 

    Subd. 2a.    Adult foster care license capacity.  (a) An 
 adult foster care license holder may have a maximum license 
 capacity of five if all persons in care are age 55 or over and 
 do not have a serious and persistent mental illness or a 
 developmental disability.  

    (b) The commissioner may grant variances to paragraph (a) 
 to allow a foster care provider with a licensed capacity of five 
 persons to admit an individual under the age of 55 if the 
 variance complies with section 245A.04, subdivision 9, and 
 approval of the variance is recommended by the county in which 
 the licensed foster care provider is located. 

    (c) The commissioner may grant variances to paragraph (a) 
 to allow the use of a fifth bed for emergency crisis services 
 for a person with serious and persistent mental illness or a 
 developmental disability, regardless of age, if the variance 
 complies with section 245A.04, subdivision 9, and approval of 
 the variance is recommended by the county in which the licensed 
 foster care provider is located. 

    (d) Notwithstanding paragraph (a), the commissioner may 
 issue an adult foster care license with a capacity of five 
 adults when the capacity is recommended by the county licensing 
 agency of the county in which the facility is located and if the 
 recommendation verifies that: 

    (1) the facility meets the physical environment 
 requirements in the adult foster care licensing rule; 

    (2) the five-bed living arrangement is specified for each 
 resident in the resident's: 

    (i) individualized plan of care; 

    (ii) individual service plan under section 256B.092, 
 subdivision 1b, if required; or 

    (iii) individual resident placement agreement under 
 Minnesota Rules, part 9555.5105, subpart 19, if required; 

    (3) the license holder obtains written and signed informed 
 consent from each resident or resident's legal representative 
 documenting the resident's informed choice to living in the home 
 and that the resident's refusal to consent would not have 
 resulted in service termination; and 

    (4) the facility was licensed for adult foster care before 
 March 1, 2003. 

    (e) The commissioner shall not issue a new adult foster 
 care license under paragraph (d) after June 30, 2005.  The 
 commissioner shall allow a facility with an adult foster care 
 license issued under paragraph (d) before June 30, 2005, to 
 continue with a capacity of five adults if the license holder 
 continues to comply with the requirements in paragraph (d). 

    Subd. 2b.    Adult foster care; family adult day services. 
  An adult foster care license holder licensed under the 
 conditions in subdivision 2a may also provide family adult day 
 care for adults age 55 or over if no persons in the adult foster 
 or family adult day services program have a serious and 
 persistent mental illness or a developmental disability.  Family 
 adult day services provided in a licensed adult foster care 
 setting must be provided as specified under section 245A.143.  
 Authorization to provide family adult day services in the adult 
 foster care setting shall be printed on the license certificate 
 by the commissioner.  Adult foster care homes licensed under 
 this section and family adult day services licensed under 
 section 245A.143 shall not be subject to licensure by the 
 commissioner of health under the provisions of chapter 144, 
 144A, 157, or any other law requiring facility licensure by the 
 commissioner of health. 

    Subd. 3.    Permitted multifamily residential use.  
 Unless otherwise provided in any town, municipal, or county 
 zoning regulation, a licensed residential program with a 
 licensed capacity of seven to 16 persons shall be considered a 
 permitted multifamily residential use of property for the 
 purposes of zoning and other land use regulations.  A town, 
 municipal, or county zoning authority may require a conditional 
 use or special use permit to assure proper maintenance and 
 operation of a residential program.  Conditions imposed on the 
 residential program must not be more restrictive than those 
 imposed on other conditional uses or special uses of residential 
 property in the same zones, unless the additional conditions are 
 necessary to protect the health and safety of the persons being 
 served by the program.  Nothing in this chapter shall be 
 construed to exclude or prohibit residential programs from 
 single-family zones if otherwise permitted by local zoning 
 regulations. 

    Subd. 4.    Location of residential programs.  In 
 determining whether to grant a license, the commissioner shall 
 specifically consider the population, size, land use plan, 
 availability of community services, and the number and size of 
 existing licensed residential programs in the town, 
 municipality, or county in which the applicant seeks to operate 
 a residential program.  The commissioner shall not grant an 
 initial license to any residential program if the residential 
 program will be within 1,320 feet of an existing residential 
 program unless one of the following conditions apply:  (1) the 
 existing residential program is located in a hospital licensed 
 by the commissioner of health; (2) the town, municipality, or 
 county zoning authority grants the residential program a 
 conditional use or special use permit; (3) the program serves 
 six or fewer persons and is not located in a city of the first 
 class; or (4) the program is foster care. 

    Subd. 5.    Overconcentration and dispersal.  (a) Before 
 January 1, 1985, each county having two or more group 
 residential programs within 1,320 feet of each other shall 
 submit to the Department of Human Services a plan to promote 
 dispersal of group residential programs.  In formulating its 
 plan, the county shall solicit the participation of affected 
 persons, programs, municipalities having highly concentrated 
 residential program populations, and advocacy groups.  For the 
 purposes of this subdivision, "highly concentrated" means having 
 a population in residential programs serving seven or more 
 persons that exceeds one-half of one percent of the population 
 of a recognized planning district or other administrative 
 subdivision. 

    (b) Within 45 days after the county submits the plan, the 
 commissioner shall certify whether the plan fulfills the 
 purposes and requirements of this subdivision including the 
 following requirements: 

    (1) a new program serving seven or more persons must not be 
 located in any recognized planning district or other 
 administrative subdivision where the population in residential 
 programs is highly concentrated; 

    (2) the county plan must promote dispersal of highly 
 concentrated residential program populations; 

    (3) the county plan shall promote the development of 
 residential programs in areas that are not highly concentrated; 

    (4) no person in a residential program shall be displaced 
 as a result of this section until a relocation plan has been 
 implemented that provides for an acceptable alternative 
 placement; 

    (5) if the plan provides for the relocation of residential 
 programs, the relocation must be completed by January 1, 1990.  
 If the commissioner certifies that the plan does not do so, the 
 commissioner shall state the reasons, and the county has 30 days 
 to submit a plan amended to comply with the requirements of the 
 commissioner. 

    (c) After July 1, 1985, the commissioner may reduce grants 
 under section 245.73 to a county required to have an approved 
 plan under paragraph (a) if the county does not have a plan 
 approved by the commissioner or if the county acts in disregard 
 of its approved plan.  The county board has the right to be 
 provided with advance notice and to appeal the commissioner's 
 decision.  If the county requests a hearing within 30 days of 
 the notification of intent to reduce grants, the commissioner 
 shall not certify any reduction in grants until a hearing is 
 conducted and a decision made in accordance with the contested 
 case provisions of chapter 14. 

    Subd. 5a.    Integration of residential programs.  The 
 commissioner of human services shall seek input from counties 
 and municipalities on methods for integrating all residential 
 programs into the community. 

    Subd. 6.    Hospitals; exemption.  Residential programs 
 located in hospitals shall be exempt from the provisions of this 
 section. 

    Subd. 7.    Adult foster care; variance for alternate 
 overnight supervision.  (a) The commissioner may grant a 
 variance under section 245A.04, subdivision 9, to rule parts 
 requiring a caregiver to be present in an adult foster care home 
 during normal sleeping hours to allow for alternative methods of 
 overnight supervision.  The commissioner may grant the variance 
 if the local county licensing agency recommends the variance and 
 the county recommendation includes documentation verifying that: 

    (1) the county has approved the license holder's plan for 
 alternative methods of providing overnight supervision and 
 determined the plan protects the residents' health, safety, and 
 rights; 

    (2) the license holder has obtained written and signed 
 informed consent from each resident or each resident's legal 
 representative documenting the resident's or legal 
 representative's agreement with the alternative method of 
 overnight supervision; and 

    (3) the alternative method of providing overnight 
 supervision is specified for each resident in the resident's: 
 (i) individualized plan of care; (ii) individual service plan 
 under section 256B.092, subdivision 1b, if required; or (iii) 
 individual resident placement agreement under Minnesota Rules, 
 part 9555.5105, subpart 19, if required. 

    (b) To be eligible for a variance under paragraph (a), the 
 adult foster care license holder must not have had a licensing 
 action under section 245A.06 or 245A.07 during the prior 24 
 months based on failure to provide adequate supervision, health 
 care services, or resident safety in the adult foster care home. 

    HIST: 1987 c 333 s 12; 1988 c 411 s 6; 1990 c 568 art 2 s 47; 
 1992 c 513 art 9 s 14; 1993 c 10 s 1; 1995 c 224 s 79; 1997 c 
 203 art 7 s 4; 1997 c 248 s 31; 2000 c 327 s 6; 2001 c 4 s 1,2; 
 1Sp2003 c 14 art 6 s 10-12; 2004 c 288 art 1 s 25; art 5 s 2 

     245A.12 Voluntary receivership for residential programs. 

    Subdivision 1.    Definitions.  For purposes of this 
 section and section 245A.13, the following terms have the 
 meanings given them. 

    (a) "Controlling individual" has the meaning in section 
 245A.02, subdivision 5a.  When used in this section and section 
 245A.13, it means only those individuals controlling the 
 residential program prior to the commencement of the 
 receivership period. 

    (b) "Physical plant" means the building or buildings in 
 which a residential program is located; all equipment affixed to 
 the building and not easily subject to transfer as specified in 
 the building and fixed equipment tables of the depreciation 
 guidelines; and auxiliary buildings in the nature of sheds, 
 garages, and storage buildings located on the same site if used 
 for purposes related to resident care. 

    (c) "Related party" means a person who is a close relative 
 of a provider or a provider group; an affiliate of a provider or 
 a provider group; a close relative of an affiliate of a provider 
 or provider group; or an affiliate of a close relative of an 
 affiliate of a provider or provider group.  For the purposes of 
 this paragraph, the following terms have the meanings given them.

    (1) "Affiliate" means a person that directly, or indirectly 
 through one or more intermediaries, controls, or is controlled 
 by, or is under common control with another person. 

    (2) "Person" means an individual, a corporation, a 
 partnership, an association, a trust, an unincorporated 
 organization, or a government or political subdivision. 

    (3) "Close relative of an affiliate of a provider or 
 provider group" means an individual whose relationship by blood, 
 marriage, or adoption to an individual who is an affiliate to a 
 provider or a provider group is no more remote than first cousin.

    (4) "Control" includes the terms "controlling," "controlled 
 by," and "under common control with" and means the possession, 
 direct or indirect, of the power to direct or cause the 
 direction of the management, operations, or policies of a 
 person, whether through the ownership of voting securities, by 
 contract, or otherwise. 

    (5) "Provider or provider group" means the license holder 
 or controlling individual prior to the effective date of the 
 receivership. 

    Subd. 2.    Receivership agreement.  A majority of 
 controlling individuals of a residential program may at any time 
 ask the commissioner to assume operation of the residential 
 program through appointment of a receiver.  On receiving the 
 request for a receiver, the commissioner may enter into an 
 agreement with a majority of controlling individuals and become 
 the receiver and operate the residential program under 
 conditions acceptable to both the commissioner and the majority 
 of controlling individuals.  The agreement must specify the 
 terms and conditions of the receivership and preserve the rights 
 of the persons being served by the residential program.  A 
 receivership set up under this section terminates at the time 
 specified by the parties to the agreement. 

    Subd. 3.    Management agreement.  When the commissioner 
 agrees to become the receiver of a residential program, the 
 commissioner may enter into a management agreement with another 
 entity or group to act as the managing agent during the 
 receivership period.  The managing agent will be responsible for 
 the day-to-day operations of the residential program subject at 
 all times to the review and approval of the commissioner.  A 
 reasonable fee may be paid to the managing agent for the 
 performance of these services. 

    Subd. 4.    Rate adjustment.  The provisions of section 
 245A.13, subdivisions 7 and 8, shall also apply to voluntary 
 receiverships. 

    Subd. 5.    Controlling individuals; restrictions on 
 licensure.  No controlling individual of a residential program 
 placed into receivership under this section shall apply for or 
 receive a license to operate a residential program for five 
 years from the commencement of the receivership period.  This 
 subdivision does not apply to residential programs that are 
 owned or operated by controlling individuals, that were in 
 existence prior to the date of the receivership agreement, and 
 that have not been placed into receivership. 

    Subd. 6.    Liability.  The controlling individuals of a 
 residential program placed into receivership remain liable for 
 any claims made against the residential program that arose from 
 incidents or events that occurred prior to the commencement of 
 the receivership period.  Neither the commissioner nor the 
 managing agent of the commissioner assumes this liability. 

    Subd. 7.    Liability for financial obligations.  
 Neither the commissioner nor the managing agent of the 
 commissioner shall be liable for payment of any financial 
 obligations of the residential program or of its controlling 
 individuals incurred prior to the commencement of the 
 receivership period unless such liability is expressly assumed 
 in the receivership agreement.  Those financial obligations 
 remain the liability of the residential program and its 
 controlling individuals.  Financial obligations of the 
 residential program incurred after the commencement of the 
 receivership period are the responsibility of the commissioner 
 or the managing agent of the commissioner to the extent such 
 obligations are expressly assumed by each in the receivership or 
 management agreements.  The controlling individuals of the 
 residential program remain liable for any financial obligations 
 incurred after the commencement of the receivership period to 
 the extent these obligations are not reimbursed in the rate paid 
 to the residential program and are reasonable and necessary to 
 the operation of the residential program.  These financial 
 obligations, or any other financial obligations incurred by the 
 residential program prior to the commencement of the 
 receivership period which are necessary to the continued 
 operation of the residential program, may be deducted from any 
 rental payments owed to the controlling individuals of the 
 residential program as part of the receivership agreement. 

    Subd. 8.    Physical plant of the residential program.  
 Occupation of the physical plant after commencement of the 
 receivership period shall be controlled by paragraphs (a) and 
 (b). 

    (a) If the physical plant of a residential program placed 
 in receivership is owned by a controlling individual or related 
 party, the physical plant may be used by the commissioner or the 
 managing agent for purposes of the receivership as long as the 
 receivership period continues.  A fair monthly rental for the 
 physical plant shall be paid by the commissioner or managing 
 agent to the owner of the physical plant.  This fair monthly 
 rental shall be determined by considering all relevant factors 
 necessary to meet required arm's-length obligations of 
 controlling individuals such as the mortgage payments owed on 
 the physical plant, the real estate taxes, and special 
 assessments.  This rental shall not include any allowance for 
 profit or be based on any formula that includes an allowance for 
 profit. 

    (b) If the owner of the physical plant of a residential 
 program placed in receivership is not a related party, the 
 controlling individual shall continue as the lessee of the 
 property.  However, during the receivership period, rental 
 payments shall be made to the owner of the physical plant by the 
 commissioner or the managing agent on behalf of the controlling 
 individual.  Neither the commissioner nor the managing agent 
 assumes the obligations of the lease unless expressly stated in 
 the receivership agreement.  Should the lease expire during the 
 receivership, the commissioner or the managing agent may 
 negotiate a new lease for the term of the receivership period. 

    Subd. 9.    Receivership accounting.  The commissioner 
 may use the medical assistance account and funds for 
 receivership cash flow and accounting purposes. 

    Subd. 10.    Receivership costs.  The commissioner may 
 use the accounts and funds that would have been available for 
 the room and board, services, and program costs of persons in 
 the residential program for costs, cash flow, and accounting 
 purposes related to the receivership. 

    HIST: 1987 c 333 s 13; 1989 c 282 art 2 s 82; 1990 c 568 art 2 
 s 48; 1994 c 434 s 4 

     245A.13 Involuntary receivership for residential 
  programs. 

    Subdivision 1.    Application.  In addition to any other 
 remedy provided by law, the commissioner may petition the 
 district court in Ramsey County for an order directing the 
 controlling individuals of the residential program to show cause 
 why the commissioner should not be appointed receiver to operate 
 the residential program.  The petition to the district court 
 must contain proof by affidavit:  (1) that the commissioner has 
 either begun license suspension or revocation proceedings, 
 suspended or revoked a license, or has decided to deny an 
 application for licensure of the residential program; or (2) it 
 appears to the commissioner that the health, safety, or rights 
 of the residents may be in jeopardy because of the manner in 
 which the residential program may close, the residential 
 program's financial condition, or violations committed by the 
 residential program of federal or state laws or rules.  If the 
 license holder, applicant, or controlling individual operates 
 more than one residential program, the commissioner's petition 
 must specify and be limited to the residential program for which 
 it seeks receivership.  The affidavit submitted by the 
 commissioner must set forth alternatives to receivership that 
 have been considered, including rate adjustments.  The order to 
 show cause is returnable not less than five days after service 
 is completed and must provide for personal service of a copy to 
 the residential program administrator and to the persons 
 designated as agents by the controlling individuals to accept 
 service on their behalf. 

    Subd. 2.    Appointment of receiver.  If the court finds 
 that involuntary receivership is necessary as a means of 
 protecting the health, safety, or rights of persons being served 
 by the residential program, the court shall appoint the 
 commissioner as receiver to operate the residential program.  
 The commissioner as receiver may contract with another entity or 
 group to act as the managing agent during the receivership 
 period.  The managing agent will be responsible for the 
 day-to-day operations of the residential program subject at all 
 times to the review and approval of the commissioner.  

    Subd. 3.    Powers and duties of the receiver.  Within 
 36 months after the receivership order, the receiver shall 
 provide for the orderly transfer of the persons served by the 
 residential program to other residential programs or make other 
 provisions to protect their health, safety, and rights.  The 
 receiver or the managing agent shall correct or eliminate 
 deficiencies in the residential program that the commissioner 
 determines endanger the health, safety, or welfare of the 
 persons being served by the residential program unless the 
 correction or elimination of deficiencies involves major 
 alteration in the structure of the physical plant.  If the 
 correction or elimination of the deficiencies requires major 
 alterations in the structure of the physical plant, the receiver 
 shall take actions designed to result in the immediate transfer 
 of persons served by the residential program.  During the period 
 of the receivership, the receiver and the managing agent shall 
 operate the residential program in a manner designed to preserve 
 the health, safety, rights, adequate care, and supervision of 
 the persons served by the residential program.  The receiver or 
 the managing agent may make contracts and incur lawful 
 expenses.  The receiver or the managing agent shall collect 
 incoming payments from all sources and apply them to the cost 
 incurred in the performance of the functions of the receivership 
 including the fee set under subdivision 4.  No security interest 
 in any real or personal property comprising the residential 
 program or contained within it, or in any fixture of the 
 physical plant, shall be impaired or diminished in priority by 
 the receiver or the managing agent.  

    Subd. 3a.    Liability.  The provisions contained in 
 section 245A.12, subdivision 6, shall also apply to 
 receiverships ordered according to this section. 

    Subd. 3b.    Liability for financial obligations.  The 
 provisions contained in section 245A.12, subdivision 7, also 
 apply to receiverships ordered according to this section. 

    Subd. 3c.    Physical plant of the residential program.  
 Occupation of the physical plant under an involuntary 
 receivership shall be governed by paragraphs (a) and (b). 

    (a) The physical plant owned by a controlling individual of 
 the residential program or related party must be made available 
 for the use of the residential program throughout the 
 receivership period.  The court shall determine a fair monthly 
 rental for the physical plant, taking into account all relevant 
 factors necessary to meet required arm's-length obligations of 
 controlling individuals such as mortgage payments, real estate 
 taxes, and special assessments.  The rental fee must be paid by 
 the receiver to the appropriate controlling individuals or 
 related parties for each month that the receivership remains in 
 effect.  No payment made to a controlling individual or related 
 party by the receiver or the managing agent or any state agency 
 during a period of the receivership shall include any allowance 
 for profit or be based on any formula that includes an allowance 
 for profit. 

    (b) If the owner of the physical plant of a residential 
 program is not a related party, the court shall order the 
 controlling individual to continue as the lessee of the property 
 during the receivership period.  Rental payments during the 
 receivership period shall be made to the owner of the physical 
 plant by the commissioner or the managing agent on behalf of the 
 controlling individual. 

    Subd. 4.    Fee.  A receiver appointed under an 
 involuntary receivership or the managing agent is entitled to a 
 reasonable fee as determined by the court.  

    Subd. 5.    Termination.  An involuntary receivership 
 terminates 36 months after the date on which it was ordered or 
 at any other time designated by the court or when any of the 
 following events occurs: 

    (1) the commissioner determines that the residential 
 program's license application should be granted or should not be 
 suspended or revoked; 

    (2) a new license is granted to the residential program; 

    (3) the commissioner determines that all persons residing 
 in the residential program have been provided with alternative 
 residential programs; or 

    (4) the residential program closes. 

    Subd. 6.    Emergency procedure.  If it appears from the 
 petition filed under subdivision 1, from an affidavit or 
 affidavits filed with the petition, or from testimony of 
 witnesses under oath if the court determines it necessary, that 
 there is probable cause to believe that an emergency exists in a 
 residential program, the court shall issue a temporary order for 
 appointment of a receiver within five days after receipt of the 
 petition.  Notice of the petition must be served on the 
 residential program administrator and on the persons designated 
 as agents by the controlling individuals to accept service on 
 their behalf.  A hearing on the petition must be held within 
 five days after notice is served unless the administrator or 
 designated agent consents to a later date.  After the hearing, 
 the court may continue, modify, or terminate the temporary order.

    Subd. 7.    Rate recommendation.  The commissioner of 
 human services may review rates of a residential program 
 participating in the medical assistance program which is in 
 receivership and that has needs or deficiencies documented by 
 the Department of Health or the Department of Human Services.  
 If the commissioner of human services determines that a review 
 of the rate established under sections 256B.5012 and 256B.5013 
 is needed, the commissioner shall: 

    (1) review the order or determination that cites the 
 deficiencies or needs; and 

    (2) determine the need for additional staff, additional 
 annual hours by type of employee, and additional consultants, 
 services, supplies, equipment, repairs, or capital assets 
 necessary to satisfy the needs or deficiencies. 

    Subd. 8.    Adjustment to the rate.  Upon review of 
 rates under subdivision 7, the commissioner may adjust the 
 residential program's payment rate.  The commissioner shall 
 review the circumstances, together with the residential 
 program's most recent income and expense report, to determine 
 whether or not the deficiencies or needs can be corrected or met 
 by reallocating residential program staff, costs, revenues, or 
 any other resources including investments.  If the commissioner 
 determines that any deficiency cannot be corrected or the need 
 cannot be met with the payment rate currently being paid, the 
 commissioner shall determine the payment rate adjustment by 
 dividing the additional annual costs established during the 
 commissioner's review by the residential program's actual 
 resident days from the most recent income and expense report or 
 the estimated resident days in the projected receivership 
 period.  The payment rate adjustment remains in effect during 
 the period of the receivership or until another date set by the 
 commissioner.  Upon the subsequent sale, closure, or transfer of 
 the residential program, the commissioner may recover amounts 
 that were paid as payment rate adjustments under this 
 subdivision.  This recovery shall be determined through a review 
 of actual costs and resident days in the receivership period.  
 The costs the commissioner finds to be allowable shall be 
 divided by the actual resident days for the receivership 
 period.  This rate shall be compared to the rate paid throughout 
 the receivership period, with the difference multiplied by 
 resident days, being the amount to be repaid to the 
 commissioner.  Allowable costs shall be determined by the 
 commissioner as those ordinary, necessary, and related to 
 resident care by prudent and cost-conscious management.  The 
 buyer or transferee shall repay this amount to the commissioner 
 within 60 days after the commissioner notifies the buyer or 
 transferee of the obligation to repay.  This provision does not 
 limit the liability of the seller to the commissioner pursuant 
 to section 256B.0641. 

    Subd. 9.    Receivership accounting.  The commissioner 
 may use the medical assistance account and funds for 
 receivership cash flow and accounting purposes. 

    Subd. 10.    Receivership costs.  The commissioner may 
 use the accounts and funds that would have been available for 
 the room and board, services, and program costs of persons in 
 the residential program for costs, cash flow, and accounting 
 purposes related to the receivership. 

    Subd. 11.    Controlling individuals; restrictions on 
 licensure.  No controlling individual of a residential program 
 placed into receivership under this section may apply for or 
 receive a license to operate a residential program for five 
 years from the commencement of the receivership period.  This 
 subdivision does not apply to residential programs that are 
 owned or operated by controlling individuals that were in 
 existence before the date of the receivership agreement, and 
 that have not been placed into receivership. 

    HIST: 1987 c 333 s 14; 1988 c 411 s 7; 1989 c 282 art 2 s 83; 
 1990 c 568 art 2 s 49; 1992 c 513 art 9 s 15; 1994 c 434 s 5-7; 
 1Sp2001 c 9 art 3 s 1,2; 2002 c 379 art 1 s 113 

     245A.14 Special conditions for nonresidential programs. 

    Subdivision 1.    Permitted single-family residential use. 
  A licensed nonresidential program with a licensed capacity of 
 12 or fewer persons and a group family day care facility 
 licensed under Minnesota Rules, parts 9502.0315 to 9502.0445, to 
 serve 14 or fewer children shall be considered a permitted 
 single-family residential use of property for the purposes of 
 zoning and other land use regulations. 

    Subd. 2.    Permitted multifamily use.  Except as 
 otherwise provided in subdivision 1 or in a town, municipal, or 
 county regulation, a licensed nonresidential program with a 
 licensed capacity of 13 to 16 persons shall be considered a 
 permitted multifamily residential use of property for purposes 
 of zoning.  A town, municipal, or county zoning authority may 
 require a conditional use or special use permit in order to 
 assure proper maintenance and operation of the program.  
 Conditions imposed on the nonresidential program must not be 
 more restrictive than those imposed on other conditional uses or 
 special uses of residential property in the same zones unless 
 the additional conditions are necessary to protect the health 
 and safety of the persons being served by the nonresidential 
 program.  Nothing in this chapter shall be construed to exclude 
 or prohibit nonresidential programs from single-family zones if 
 otherwise permitted by local zoning regulations. 

    Subd. 3.    Conditional license.  Until such time as the 
 commissioner adopts appropriate rules for conditional licenses, 
 no license holder or applicant for a family or group family day 
 care license is required to spend more than $100 to meet fire 
 safety rules in excess of those required to meet Group "R" 
 occupancies under the Uniform Building Code, chapter 12, as 
 incorporated by reference in Minnesota Rules, part 1305.0100. 

    When the commissioner determines that an applicant or 
 license holder of a family or group family day care license 
 would be required to spend over $100 for physical changes to 
 ensure fire safety, the commissioner may issue a conditional 
 license when all of the following conditions have been met: 

    (a)  The commissioner shall notify the license holder or 
 applicant in writing of the fire safety deficiencies. 

    (b) The commissioner shall notify the license holder or 
 applicant in writing of alternative compliance standards that 
 would correct deficiencies, if available. 

    (c) The license holder or applicant agrees in writing to 
 notify each parent, on a form prescribed by the commissioner 
 that requires the signature of the parent, of the fire safety 
 deficiencies, and the existence of the conditional license. 

    Subd. 4.    Special family day care homes.  
 Nonresidential child care programs serving 14 or fewer children 
 that are conducted at a location other than the license holder's 
 own residence shall be licensed under this section and the rules 
 governing family day care or group family day care if:  

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

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

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

    (d) the license holder is a community collaborative child 
 care provider.  For purposes of this subdivision, a community 
 collaborative child care provider is a provider participating in 
 a cooperative agreement with a community action agency as 
 defined in section 119A.375. 

    Subd. 5. Repealed, 1992 c 513 art 9 s 44 

    Subd. 6.    Drop-in and school age child care programs.  
 (a) Except as expressly set forth in this subdivision, drop-in 
 and school age child care programs must be licensed as a drop-in 
 or school age program under the rules governing child care 
 programs operated in a center.  

    (b) Drop-in and school age child care programs are exempt 
 from the following Minnesota Rules: 

    (1) part 9503.0040; 

    (2) part 9503.0045, subpart 1, items F and G; 

    (3) part 9503.0050, subpart 6, except for children less 
 than 2-1/2 years old; 

    (4) one-half the requirements of part 9503.0060, subpart 4, 
 item A, subitems (2), (5), and (8), subpart 5, item A, subitems 
 (2), (3), and (7), and subpart 6, item A, subitems (3) and (6); 

    (5) part 9503.0070; and 

    (6) part 9503.0090, subpart 2.  

    (c) A drop-in and school age child care program must be 
 operated under the supervision of a person qualified as a 
 director and a teacher.  

    (d) A drop-in and school age child care program must have 
 at least two persons on staff whenever the program is operating, 
 except that the commissioner may permit variances from this 
 requirement under specified circumstances for parent cooperative 
 programs, as long as all other staff-to-child ratios are met.  

    (e) Whenever the total number of children present to be 
 cared for at a drop-in child care center is more than 20, 
 children that are younger than age 2-1/2 must be in a separate 
 group.  This group may contain children up to 60 months old.  
 This group must be cared for in an area that is physically 
 separated from older children. 

    (f) A drop-in child care program must maintain a minimum 
 staff ratio for children age 2-1/2 or greater of one staff 
 person for each ten children.  A school age child care program 
 must maintain a minimum staff ratio of one staff person for 
 every 15 children. 

    (g) If the drop-in child care program has additional staff 
 who are on call as a mandatory condition of their employment, 
 the minimum child-to-staff ratio may be exceeded only for 
 children age 2-1/2 or greater, by a maximum of four children, 
 for no more than 20 minutes while additional staff are in 
 transit.  

    (h) In a drop-in child care program, the minimum 
 staff-to-child ratio for infants up to 16 months of age is one 
 staff person for every four infants.  The minimum staff-to-child 
 ratio for children age 17 months to 30 months is one staff for 
 every seven children.  

    (i) In drop-in care programs that serve both infants and 
 older children, children up to age 2-1/2 may be supervised by 
 assistant teachers, as long as other staff are present in 
 appropriate ratios.  

    (j) The minimum staff distribution pattern for a drop-in 
 child care program serving children age 2-1/2 or greater and a 
 school age child care program serving school age children is:  
 the first staff member must be a teacher; the second, third, and 
 fourth staff members must have at least the qualifications of a 
 child care aide; the fifth staff member must have at least the 
 qualifications of an assistant teacher; the sixth, seventh, and 
 eighth staff members must have at least the qualifications of a 
 child care aide; and the ninth staff person must have at least 
 the qualifications of an assistant teacher.  

    (k) A drop-in child care program may care for siblings 16 
 months or older together in any group.  For purposes of this 
 subdivision, sibling is defined as sister or brother, 
 half-sister or half-brother, or stepsister or stepbrother. 

    (l) The commissioner may grant a variance to any of the 
 requirements in paragraphs (a) to (k), as long as the health and 
 safety of the persons served by the program are not affected.  
 The request for a variance shall comply with the provisions in 
 section 245A.04, subdivision 9. 

    Subd. 7.    Cultural dynamics and disabilities training 
 for child care providers.  (a) The training required of 
 licensed child care center staff and family and group family 
 child care providers and staff shall include training in the 
 cultural dynamics of early childhood development and child care. 

    (b) The cultural dynamics and disabilities training and 
 skills development of child care providers shall be designed to 
 achieve outcomes for providers of child care that include, but 
 are not limited to: 

    (1) an understanding and support of the importance of 
 culture and differences in ability in children's identity 
 development; 

    (2) understanding the importance of awareness of cultural 
 differences and similarities in working with children and their 
 families; 

    (3) understanding and support of the needs of families and 
 children with differences in ability; 

    (4) developing skills to help children develop unbiased 
 attitudes about cultural differences and differences in ability; 

    (5) developing skills in culturally appropriate caregiving; 
 and 

    (6) developing skills in appropriate caregiving for 
 children of different abilities.  

    Curriculum for cultural dynamics and disability training 
 shall be approved by the commissioner. 

    (c) The commissioner shall amend current rules relating to 
 the training of the licensed child care center staff and 
 licensed providers of family and group family child care and 
 staff to require cultural dynamics training.  Timelines 
 established in the rule amendments for complying with the 
 cultural dynamics training requirements shall be based on the 
 commissioner's determination that curriculum materials and 
 trainers are available statewide. 

    Subd. 8.    Experienced aides; child care centers.  (a) 
 An individual employed as an aide at a child care center may 
 work with children without being directly supervised for an 
 amount of time that does not exceed 25 percent of the child care 
 center's daily hours if: 

    (1) a teacher is in the facility; 

    (2) the individual has received first aid training within 
 the last three years and CPR training within the last two years; 

    (3) the individual is at least 20 years old; and 

    (4) the individual has at least 4,160 hours of child care 
 experience as a staff member in a licensed child care center or 
 as the license holder of a family day care home, 120 days of 
 which must be in the employment of the current company. 

    (b) A child care center that uses experienced aides under 
 this subdivision must notify parents or guardians by posting the 
 notification in each classroom that uses experienced aides, 
 identifying which staff member is the experienced aide.  Records 
 of experienced aide usage must be kept on-site and given to the 
 commissioner upon request.  

    (c) A child care center may not use the experienced aide 
 provision for one year following two determined experienced aide 
 violations within a one-year period.  

    (d) A child care center may use one experienced aide per 
 every four full-time child care classroom staff. 

    Subd. 9.    Inservice training; child care centers.  (a) 
 A teacher at a child care center must complete one percent of 
 working hours of inservice training annually if the teacher: 

    (1) possesses a baccalaureate or masters degree in early 
 childhood education, or school age care; 

    (2) is licensed in Minnesota as a prekindergarten teacher, 
 an early childhood educator, a kindergarten to sixth grade 
 teacher with a prekindergarten specialty, an early childhood 
 special education teacher, or an elementary teacher with a 
 kindergarten endorsement; or 

    (3) possesses a baccalaureate degree with a Montessori 
 certificate. 

    (b) A teacher or assistant teacher at a child care center 
 must complete 1-1/2 percent of working hours of in-service 
 training annually if the individual is: 

    (1) a registered nurse or licensed practical nurse with 
 experience working with infants; 

    (2) possesses a Montessori certificate, a technical college 
 certificate in early childhood development, or a child 
 development associate certificate; or 

    (3) possesses an associate of arts degree in early 
 childhood education, a baccalaureate degree in child 
 development, or a technical college diploma in early childhood 
 development. 

    (c) Except as provided in paragraphs (a) and (b), all other 
 teachers, assistant teachers, or aides must have two percent of 
 working hours of in-service training annually. 

    (d) The number of required training hours may be prorated 
 for individuals not employed full time or for an entire year.  
 This subdivision supersedes Minnesota Rules, part 9503.0035, 
 subpart 4, item B, for teachers, assistant teachers, and aides.  
 The remainder of Minnesota Rules, part 9503.0035, subpart 4, 
 remains in effect unless superseded by other law. 

    Subd. 10.    Portable wading pools; family day care and 
 group family day care providers.  A portable wading pool as 
 defined in section 144.1222 may not be used by a child at a 
 family day care or group family day care home or at a home at 
 which child care services are provided under section 245A.03, 
 subdivision 2, clause (2), unless the parent or legal guardian 
 of the child has provided written consent.  The written consent 
 shall include a statement that the parent or legal guardian has 
 received and read material provided by the Department of Health 
 to the Department of Human Services for distribution to all 
 family day care or group family day care homes and the general 
 public on the human services Internet Web site related to the 
 risk of disease transmission as well as other health risks 
 associated with the use of portable wading pools. 

    Subd. 11.    Swimming pools; family day care and group 
 family day care providers.  (a) This subdivision governs 
 swimming pools located at family day care or group family day 
 care homes licensed under Minnesota Rules, chapter 9502.  This 
 subdivision does not apply to portable wading pools or 
 whirlpools located at family day care or group family day care 
 homes licensed under Minnesota Rules, chapter 9502.  For a 
 provider to be eligible to allow a child cared for at the family 
 day care or group family day care home to use the swimming pool 
 located at the home, the provider must not have had a licensing 
 sanction under section 245A.07 or a correction order or 
 conditional license under section 245A.06 relating to the 
 supervision or health and safety of children during the prior 24 
 months, and must satisfy the following requirements: 

    (1) notify the county agency before initial use of the 
 swimming pool and annually, thereafter; 

    (2) obtain written consent from a child's parent or legal 
 guardian allowing the child to use the swimming pool and renew 
 the parent or legal guardian's written consent at least 
 annually.  The written consent must include a statement that the 
 parent or legal guardian has received and read materials 
 provided by the Department of Health to the Department of Human 
 Services for distribution to all family day care or group family 
 day care homes and the general public on the human services 
 Internet Web site related to the risk of disease transmission as 
 well as other health risks associated with swimming pools.  The 
 written consent must also include a statement that the 
 Department of Health, Department of Human Services, and county 
 agency will not monitor or inspect the provider's swimming pool 
 to ensure compliance with the requirements in this subdivision; 

    (3) enter into a written contract with a child's parent or 
 legal guardian and renew the written contract annually.  The 
 terms of the written contract must specify that the provider 
 agrees to perform all of the requirements in this subdivision; 

    (4) attend and successfully complete a swimming pool 
 operator training course once every five years.  Acceptable 
 training courses are: 

    (i) the National Swimming Pool Foundation Certified Pool 
 Operator course; 

    (ii) the National Spa and Pool Institute Tech I and Tech II 
 courses (both required); or 

    (iii) the National Recreation and Park Association Aquatic 
 Facility Operator course; 

    (5) require a caregiver trained in first aid and adult and 
 child cardiopulmonary resuscitation to supervise and be present 
 at the swimming pool with any children in the pool; 

    (6) toilet all potty-trained children before they enter the 
 swimming pool; 

    (7) require all children who are not potty-trained to wear 
 swim diapers while in the swimming pool; 

    (8) if fecal material enters the swimming pool water, add 
 three times the normal shock treatment to the pool water to 
 raise the chlorine level to at least 20 parts per million, and 
 close the pool to swimming for the 24 hours following the 
 entrance of fecal material into the water or until the water pH 
 and disinfectant concentration levels have returned to the 
 standards specified in clause (10), whichever is later; 

    (9) prevent any person from entering the swimming pool who 
 has an open wound or any person who has or is suspected of 
 having a communicable disease; 

    (10) maintain the swimming pool water at a pH of not less 
 than 7.2 and not more than 8.0, maintain the disinfectant 
 concentration between two and five parts per million for 
 chlorine or between 2.3 and 4.5 parts per million for bromine, 
 and maintain a daily record of the swimming pool's operation 
 with pH and disinfectant concentration readings on days when 
 children cared for at the family day care or group family day 
 care home are present; 

    (11) have a disinfectant feeder or feeders; 

    (12) have a recirculation system that will clarify and 
 disinfect the swimming pool volume of water in ten hours or 
 less; 

    (13) maintain the swimming pool's water clarity so that an 
 object on the pool floor at the pool's deepest point is easily 
 visible; 

    (14) have two or more suction lines in the swimming pool; 

    (15) have in place and enforce written safety rules and 
 swimming pool policies; 

    (16) have in place at all times a safety rope that divides 
 the shallow and deep portions of the swimming pool; 

    (17) satisfy any existing local ordinances regarding 
 swimming pool installation, decks, and fencing; 

    (18) maintain a water temperature of not more than 104 
 degrees Fahrenheit and not less than 70 degrees Fahrenheit; and 

    (19) for lifesaving equipment, have a United States Coast 
 Guard-approved life ring attached to a rope, an exit ladder, and 
 a shepherd's hook available at all times to the caregiver 
 supervising the swimming pool. 

    The requirements of clauses (5), (16), and (18) only apply 
 at times when children cared for at the family day care or group 
 family day care home are present. 

    (b) A violation of paragraph (a), clauses (1) to (3), is 
 grounds for a sanction under section 245A.07 or a correction 
 order or conditional license under section 245A.06.  

    (c) If a provider under this subdivision receives a 
 licensing sanction under section 245A.07 or a correction order 
 or a conditional license under section 245A.06 relating to the 
 supervision or health and safety of children, the provider is 
 prohibited from allowing a child cared for at the family day 
 care or group family day care home to continue to use the 
 swimming pool located at the home. 

    HIST: 1987 c 333 s 15; 1988 c 608 s 3,4; 1989 c 282 art 2 s 
 84,85; 1Sp1989 c 2 s 10; 1990 c 426 art 1 s 28; 1990 c 568 art 2 
 s 50,51; 1991 c 142 s 2; 1991 c 143 s 1; 1993 c 338 s 8; 1995 c 
 158 s 5; 1995 c 207 art 2 s 20; art 4 s 1; 1998 c 407 art 6 s 5; 
 2000 c 327 s 6; 2000 c 489 art 1 s 20-22; 2002 c 279 s 6; 2002 c 
 333 s 2; 2003 c 57 s 1; 2004 c 288 art 1 s 26 

     245A.143 Family adult day services. 

    Subdivision 1.    Scope.  (a) The licensing standards in 
 this section must be met to obtain and maintain a license to 
 provide family adult day services.  For the purposes of this 
 section, family adult day services means a program operating 
 fewer than 24 hours per day that provides functionally impaired 
 adults, none of which are under age 55, have serious or 
 persistent mental illness, or have mental retardation or a 
 related condition, with an individualized and coordinated set of 
 services including health services, social services, and 
 nutritional services that are directed at maintaining or 
 improving the participants' capabilities for self-care. 

    (b) A family adult day services license shall only be 
 issued when the services are provided in the license holder's 
 primary residence, and the license holder is the primary 
 provider of care.  The license holder may not serve more than 
 eight adults at one time, including residents, if any, served 
 under a license issued under Minnesota Rules, parts 9555.5105 to 
 9555.6265. 

    (c) An adult foster care license holder may provide family 
 adult day services if the license holder meets the requirements 
 of this section. 

    (d) When an applicant or license holder submits an 
 application for initial licensure or relicensure for both adult 
 foster care and family adult day services, the county agency 
 shall process the request as a single application and shall 
 conduct concurrent routine licensing inspections. 

    (e) Adult foster care license holders providing family 
 adult day services under their foster care license on March 30, 
 2004, shall be permitted to continue providing these services 
 with no additional requirements until their adult foster care 
 license is due for renewal.  At the time of relicensure, an 
 adult foster care license holder may continue to provide family 
 adult day services upon demonstration of compliance with this 
 section.  Adult foster care license holders who provide only 
 family adult day services on August 1, 2004, may apply for a 
 license under this section instead of an adult foster care 
 license. 

    Subd. 2.    Definitions.  (a)    Scope.  For the 
 purposes of this section, the terms defined in this subdivision 
 have the following meanings unless otherwise provided for by 
 text. 

    (b)    Caregiver.  "Caregiver" means a spouse, adult 
 child, parent, relative, friend, or others who normally provide 
 unpaid support or care to the individual needing assistance.  
 For the purpose of this section, the caregiver may or may not 
 have legal or financial responsibility for the participant. 

    (c)    Participant.  "Participant" means a functionally 
 impaired adult receiving family adult day services. 

    (d)    Consultation by a health care professional.  
 "Consultation by a health care professional" means the review 
 and oversight of the participant's health-related services by a 
 registered nurse, physician, or mental health professional. 

    Subd. 3.    Policy and program information requirements. 
  (a) The license holder shall have available for review, and 
 shall distribute to participants and their caregivers upon 
 admission, written information about: 

    (1) the scope of the programs, services, and care offered 
 by the license holder; 

    (2) a description of the population to be served by the 
 license holder; 

    (3) a description of individual conditions which the 
 license holder is not prepared to accept, such as a communicable 
 disease requiring isolation, a history of violence to self or 
 others, unmanageable incontinence, or uncontrollable wandering; 

    (4) the participants' rights and procedure for presenting 
 grievances, including the name, address, and telephone number of 
 the Office of Ombudsman for Older Minnesotans and the county 
 licensing department, to which a participant or participant's 
 caregiver may submit an oral or written complaint; 

    (5) the license holder's policy on and arrangements for 
 providing transportation; 

    (6) the license holder's policy on providing meals and 
 snacks; 

    (7) the license holder's fees, billing arrangements, and 
 plans for payment; 

    (8) the license holder's policy governing the presence of 
 pets in the home; 

    (9) the license holder's policy on smoking in the home; 

    (10) types of insurance coverage carried by the license 
 holder; 

    (11) information on orientation requirements under section 
 245A.65, subdivisions 1, paragraph (c), and 2, paragraph (a), 
 clause (4); 

    (12) the terms and conditions of the license holder's 
 license issued by the department; 

    (13) the license holder's plan for emergency evacuation of 
 participants involving fire, weather, and other disasters.  The 
 plan must include instructions for evacuation or rescue of 
 participants, identification of an emergency shelter area, 
 quarterly fire drill schedule, and staff responsibilities; and 

    (14) the license holder's policy for handling harmful 
 objects, materials, or equipment including the storage of 
 poisonous chemicals, use of appliances, sharp instruments, 
 matches, or any other potentially harmful materials. 

    (b) The information in paragraph (a) must be provided in 
 writing to the commissioner's representative upon request and 
 must be available for inspection by the commissioner's 
 representative at the home. 

    Subd. 4.    Admission screening and evaluation.  (a) 
 Before admitting an individual into the family adult day 
 services program, the license holder shall screen the individual 
 to determine how or whether the license holder can serve the 
 individual, based on the license holder's policies, services, 
 expertise, and the individual's needs and condition.  If 
 possible, the screening shall include an interview with the 
 individual and with the individual's caregiver. 

    (b) The screening required under paragraph (a) shall 
 include an evaluation of the health, nutritional, and social 
 services needs of the individual. 

    Subd. 5.    Service delivery plan.  Before providing 
 family adult day services, an individual, the individual's 
 caregiver, the legal representative if there is one, the county 
 or private case manager, if applicable, and the license holder 
 shall develop a service delivery plan.  At a minimum, the 
 service delivery plan shall include: 

    (1) a description of the health services, nutritional 
 services, and social services to be arranged or provided by the 
 license holder and the frequency of those services and that the 
 services will be based on the needs of the individual; 

    (2) scheduled days and hours of participant's attendance at 
 the license holder's home; 

    (3) transportation arrangements for getting the participant 
 to and from the license holder's home; 

    (4) contingency plans if scheduled services cannot be 
 provided by the license holder; 

    (5) identification of responsibilities of the participant 
 and the license holder with respect to payment for the services; 

    (6) circumstances when emergency services will be called; 
 and 

    (7) identification of the license holder's discharge policy 
 when services are no longer needed or when the participant's 
 needs can no longer be met by the license holder. 

    Subd. 6.    Individual service plan.  (a) The service 
 plan must be coordinated with other plans of services for the 
 participant, as appropriate. 

    (b) The service plan must be dated and revised when there 
 is a change in the needs of the participant or annually, 
 whichever occurs sooner. 

    Subd. 7.    Health services.  (a) The license holder 
 shall provide health services as specified in the service 
 delivery plan under the direction of the designated caregiver or 
 county or private case manager.  Health services must include: 

    (1) monitoring the participant's level of function and 
 health while participating; taking appropriate action for a 
 change in condition including immediately reporting changes to 
 the participant's caregiver, physician, mental health 
 professional, or registered nurse; and seeking consultation; 

    (2) offering information to participants and caregivers on 
 good health and safety practices; and 

    (3) maintaining a listing of health resources available for 
 referrals as needed by participants and caregivers. 

    (b) Unless the person is a licensed health care 
 practitioner qualified to administer medications, the person 
 responsible for medication administration or assistance shall 
 provide a certificate verifying successful completion of a 
 trained medication aid program for unlicensed personnel approved 
 by the Minnesota Department of Health or comparable program, or 
 biennially provide evidence of competency as demonstrated to a 
 registered nurse or physician. 

    (c) The license holder must have secure storage and 
 safeguarding of all medications with storage of medications in 
 their original container, know what information regarding 
 medication administration must be reported to a health care 
 professional, and must maintain a record of all medications 
 administered. 

    Subd. 8.    Nutritional services.  (a) The license 
 holder shall ensure that food served is nutritious and meets any 
 special dietary needs of the participants as prescribed by the 
 participant's physician or dietitian as specified in the service 
 delivery plan.  

    (b) Food and beverages must be obtained, handled, and 
 properly stored to prevent contamination, spoilage, or a threat 
 to the health of a resident. 

    Subd. 9.    Social services.  The license holder, in 
 consultation with the county or private case manager, when 
 appropriate, shall actively assist the participant in 
 identifying and achieving personal goals, support the 
 participant in maintaining personal support networks and 
 socially valued roles, provide assistance to the participant to 
 enable community participation, and refer participants to the 
 Office of Ombudsman for Older Minnesotans and other advocacy 
 organizations for assistance when there is a potential conflict 
 of interest between the license holder and the participant. 

    Subd. 10.    Participant rights.  (a) The license holder 
 shall adopt and comply with a participant bill of rights.  The 
 rights shall include the participants' right to: 

    (1) participate in the development of the service plan; 

    (2) refuse services or participation; 

    (3) privacy; 

    (4) confidentiality of participant information; and 

    (5) present grievances regarding treatment or services to 
 the Office of Ombudsman for Older Minnesotans or the county 
 licensing department.  The license holder's policies shall 
 include a procedure for addressing participant grievances, 
 including the name, address, and telephone number of the county 
 licensing department, to which a participant or participant 
 caregiver may submit an oral or written complaint. 

    (b) The license holder shall post the participant rights in 
 the home and shall provide a copy to the participant and the 
 participant's primary caregiver and legal representative if the 
 participant has one. 

    Subd. 11.    Staffing.  Whenever participants are in the 
 home, there must be present at least one individual who is 
 trained in basic first aid and certified in cardiopulmonary 
 resuscitation and the treatment of obstructed airways.  Whenever 
 there are six, seven, or eight participants present, there must 
 be a second staff person present. 

    Subd. 12.    Training.  The license holder and license 
 holder's staff must annually complete 12 hours of training 
 related to the health, nutritional, and social needs of the 
 license holder's target population.  License holders with six or 
 more years of licensure under this section or as an adult foster 
 care provider must annually complete six hours of training.  The 
 annual training must include training on the reporting of 
 maltreatment of vulnerable adults under sections 626.557 and 
 626.5572; license holder requirements governing maltreatment of 
 vulnerable adults under section 245A.65; and, when a license 
 holder serves participants who rely on medical monitoring 
 equipment to sustain life or monitor a medical condition, 
 training on medical equipment as required under section 245A.155 
 for foster care providers.  A record of all training must be 
 maintained in the home. 

    Subd. 13.    Residential requirements.  (a) The home 
 where family adult day services are to be provided shall be 
 classified as a residential group R-3 occupancy under the State 
 Building Code and State Fire Code for purposes of building code 
 and fire code inspections.  A building code inspection is not 
 required for licensure under this section.  The state or local 
 fire marshal must inspect the family adult day services home 
 operating in the residence for compliance with the residential 
 group R-3 occupancy provisions of the State Fire Code. 

    (b) The licensed capacity of the home shall be limited by 
 the amount of indoor space available for use by participants.  
 The total indoor space available for use by participants must 
 equal at least 35 square feet for each participant, the license 
 holder, and each staff member present in the home.  In 
 determining the square footage of usable indoor space available, 
 the following must not be counted:  hallways, stairways, 
 closets, offices, restrooms, and utility and storage areas.  The 
 usable indoor space available must include a room or an area 
 that can be used as private space for providing personal hygiene 
 services or social services to participants. 

    (c) The residence must comply with all applicable local 
 ordinances.  

    Subd. 14.    Variances.  The commissioner may grant a 
 variance to any of the requirements in this section if the 
 conditions in section 245A.04, subdivision 9, are met. 

    HIST: 2004 c 288 art 1 s 27 

     245A.144 Reduction of risk of sudden infant death 
  syndrome in child care programs. 

    License holders must ensure that before staff persons, 
 caregivers, and helpers assist in the care of infants, they 
 receive training on reducing the risk of sudden infant death 
 syndrome.  The training on reducing the risk of sudden infant 
 death syndrome may be provided as orientation training under 
 Minnesota Rules, part 9503.0035, subpart 1, as initial training 
 under Minnesota Rules, part 9502.0385, subpart 2, as in-service 
 training under Minnesota Rules, part 9503.0035, subpart 4, or as 
 ongoing training under Minnesota Rules, part 9502.0385, subpart 
 3.  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, 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.  Training for family and group 
 family child care providers must be approved by the county 
 licensing agency according to Minnesota Rules, part 9502.0385. 

    HIST: 1Sp2001 c 9 art 14 s 23; 2002 c 375 art 1 s 16; 2002 c 
 379 art 1 s 113 

     245A.145 Child care program reporting notification. 

    Subdivision 1.    Policies and procedures.  (a) All 
 licensed child care providers must develop policies and 
 procedures for reporting suspected child maltreatment that 
 fulfill the requirements in section 626.556 and must develop 
 policies and procedures for reporting complaints about the 
 operation of a child care program.  The policies and procedures 
 must include the telephone numbers of the local county child 
 protection agency for reporting suspected maltreatment; the 
 county licensing agency for family and group family child care 
 providers; and the state licensing agency for child care centers 
 for reporting other concerns. 

    (b) The policies and procedures required in paragraph (a) 
 must:  

    (1) be provided to the parents of all children at the time 
 of enrollment in the child care program; and 

    (2) be made available upon request.  

    Subd. 2.    Licensing agency phone number displayed.  By 
 July 1, 2002, a new or renewed child care license must include a 
 statement that informs parents who have concerns about their 
 child's care that they may call the licensing agency.  The 
 commissioner shall print the telephone number for the licensing 
 agency in bold and large font on the license issued to child 
 care providers. 

    HIST: 2002 c 248 s 1 

     245A.15 Regulation of family day care by local 
  government. 

    The authority of local units of government to establish 
 requirements for family day care programs is limited by section 
 299F.011, subdivision 4a, clauses (1) and (2). 

    HIST: 1987 c 333 s 16 

     245A.151 Fire marshal inspection. 

    When licensure under this chapter requires an inspection by 
 a fire marshal to determine compliance with the Minnesota 
 Uniform Fire Code under section 299F.011, a local fire code 
 inspector approved by the state fire marshal may conduct the 
 inspection.  If a community does not have a local fire code 
 inspector or if the local fire code inspector does not perform 
 the inspection, the state fire marshal must conduct the 
 inspection.  A local fire code inspector or the state fire 
 marshal may recover the cost of these inspections through a fee 
 of no more than $50 per inspection charged to the applicant or 
 license holder.  The fees collected by the state fire marshal 
 under this section are appropriated to the commissioner of 
 public safety for the purpose of conducting the inspections. 

    HIST: 2002 c 375 art 1 s 17 

     245A.155 Requirements for foster care agencies and 
  foster care providers related to individuals who rely on medical 
  equipment to sustain life or monitor a medical condition. 

    Subdivision 1.    Licensed foster care and respite care. 
  This section applies to foster care agencies and licensed 
 foster care providers who place, supervise, or care for 
 individuals who rely on medical monitoring equipment to sustain 
 life or monitor a medical condition in respite care or foster 
 care. 

    Subd. 2.    Foster care agency requirements.  In order 
 for an agency to place an individual who relies on medical 
 equipment to sustain life or monitor a medical condition with a 
 foster care provider, the agency must ensure that the foster 
 care provider has received the training to operate such 
 equipment as observed and confirmed by a qualified source, and 
 that the provider: 

    (1) is currently caring for an individual who is using the 
 same equipment in the foster home; or 

    (2) has written documentation that the foster care provider 
 has cared for an individual who relied on such equipment within 
 the past six months; or 

    (3) has successfully completed training with the individual 
 being placed with the provider. 

    Subd. 3.    Foster care provider requirements.  A foster 
 care provider shall not care for an individual who relies on 
 medical equipment to sustain life or monitor a medical condition 
 unless the provider has received the training to operate such 
 equipment as observed and confirmed by a qualified source, and:  

    (1) is currently caring for an individual who is using the 
 same equipment in the foster home; or 

    (2) has written documentation that the foster care provider 
 has cared for an individual who relied on such equipment within 
 the past six months; or 

    (3) has successfully completed training with the individual 
 being placed with the provider. 

    Subd. 4.    Qualified source definition.  For purposes 
 of this section, a "qualified source" includes a health care 
 professional or an individual who provides training on such 
 equipment. 

    Subd. 5.    Foster care provider training and skills form. 
  The agency supervising the foster care provider shall keep a 
 training and skills form on file for each foster care provider 
 and update the form annually.  The agency placing the individual 
 shall obtain a copy of the training and skills form from the 
 foster care provider or the agency supervising the foster care 
 provider and shall keep it and any updated information on file 
 for the duration of the placement.  The form must be made 
 available to the parents or the primary caregiver and social 
 worker of the individual, or the individual, whichever is 
 applicable, in order to make an informed placement decision.  
 The agency shall use the training and skills form developed by 
 the commissioner of human services. 

    HIST: 2000 c 338 s 1 

     245A.156 Disclosure of communicable disease to licensed 
  foster care providers. 

    Subdivision 1.    Licensed foster care.  This section 
 applies to county agencies, private child-placing agencies, and 
 individuals who place children or adults who have a known 
 communicable disease, as defined in section 144.4172, 
 subdivision 2, in foster care settings licensed under this 
 chapter. 

    Subd. 2.    Placing agency's or individual's duties.  
 Notwithstanding section 144.335, before a county or private 
 child-placing agency or individual places a child or adult with 
 a known communicable disease with a licensed foster care 
 provider, the agency or individual must: 

    (1) disclose to the foster care license holder the 
 individual's communicable disease; and 

    (2) determine that the foster care provider has the ability 
 to provide care to the individual. 

    HIST: 2002 c 290 s 1 

     245A.16 Standards for county agencies and private 
  agencies. 

    Subdivision 1.    Delegation of authority to agencies.  
 (a) County agencies and private agencies that have been 
 designated or licensed by the commissioner to perform licensing 
 functions and activities under section 245A.04 and chapter 245C, 
 to recommend denial of applicants under section 245A.05, to 
 issue correction orders, to issue variances, and recommend a 
 conditional license under section 245A.06, or to recommend 
 suspending or revoking a license or issuing a fine under section 
 245A.07, shall comply with rules and directives of the 
 commissioner governing those functions and with this section.  
 The following variances are excluded from the delegation of 
 variance authority and may be issued only by the commissioner: 

    (1) dual licensure of family child care and child foster 
 care, dual licensure of child and adult foster care, and adult 
 foster care and family child care; 

    (2) adult foster care maximum capacity; 

    (3) adult foster care minimum age requirement; 

    (4) child foster care maximum age requirement; 

    (5) variances regarding disqualified individuals except 
 that county agencies may issue variances under section 245C.30 
 regarding disqualified individuals when the county is 
 responsible for conducting a consolidated reconsideration 
 according to sections 245C.25 and 245C.27, subdivision 2, 
 clauses (a) and (b), of a county maltreatment determination and 
 a disqualification based on serious or recurring maltreatment; 
 and 

    (6) the required presence of a caregiver in the adult 
 foster care residence during normal sleeping hours. 

    (b) County agencies must report information about 
 disqualification reconsiderations under sections 245C.25 and 
 245C.27, subdivision 2, clauses (a) and (b), and variances 
 granted under paragraph (a), clause (5), to the commissioner at 
 least monthly in a format prescribed by the commissioner. 

    (c) For family day care programs, the commissioner may 
 authorize licensing reviews every two years after a licensee has 
 had at least one annual review. 

    (d) For family adult day services programs, the 
 commissioner may authorize licensing reviews every two years 
 after a licensee has had at least one annual review. 

    (e) A license issued under this section may be issued for 
 up to two years. 

    Subd. 2.    Investigations.  (a) The county or private 
 agency shall conduct timely investigations of allegations of 
 maltreatment of children or adults in programs for which the 
 county or private agency is the commissioner's designated 
 representative and record a disposition of each complaint in 
 accordance with applicable law or rule.  The county or private 
 agency shall conduct similar investigations of allegations of 
 violations of rules governing licensure of the program. 

    (b) If an investigation conducted under clause (a) results 
 in evidence that the commissioner should deny an application or 
 suspend, revoke, or make conditional a license, the county or 
 private agency shall make that recommendation to the 
 commissioner within ten working days. 

    Subd. 3.    Recommendations to the commissioner.  The 
 county or private agency shall not make recommendations to the 
 commissioner regarding licensure without first conducting an 
 inspection, study of the applicant, and evaluation pursuant to 
 chapter 245C.  The county or private agency must forward its 
 recommendation to the commissioner regarding the appropriate 
 licensing action within 20 working days of receipt of a 
 completed application. 

    Subd. 4.    Enforcement of the commissioner's orders.  
 The county or private agency shall enforce the commissioner's 
 orders under sections 245A.07, 245A.08, subdivision 5, and 
 chapter 245C, according to the instructions of the 
 commissioner.  The county attorney shall assist the county 
 agency in the enforcement and defense of the commissioner's 
 orders under sections 245A.07, 245A.08, and chapter 245C, 
 according to the instructions of the commissioner, unless a 
 conflict of interest exists between the county attorney and the 
 commissioner. 

    Subd. 5.    Instruction and technical assistance.  The 
 commissioner shall provide instruction and technical assistance 
 to county and private agencies that are subject to this section. 
 County and private agencies shall cooperate with the 
 commissioner in carrying out this section by ensuring that 
 affected employees participate in instruction and technical 
 assistance provided by the commissioner. 

    Subd. 6.    Certification by the commissioner.  The 
 commissioner shall ensure that rules are uniformly enforced 
 throughout the state by reviewing each county and private agency 
 for compliance with this section and other applicable laws and 
 rules at least every four years.  County agencies that comply 
 with this section shall be certified by the commissioner.  If a 
 county agency fails to be certified by the commissioner, the 
 commissioner shall certify a reduction of up to 20 percent of 
 the county's Community Social Services Act funding or an 
 equivalent amount from state administrative aids. 

    HIST: 1987 c 333 s 17; 1989 c 282 art 2 s 86; 1990 c 568 art 2 
 s 52,53; 1991 c 142 s 3; 1992 c 513 art 9 s 16; 1993 c 338 s 9; 
 1997 c 248 s 32; 1Sp2001 c 9 art 14 s 24; 2002 c 375 art 1 s 18; 
 2002 c 379 art 1 s 113; 2003 c 15 art 1 s 33; 2004 c 288 art 1 s 
 28,29 

  245A.17 Repealed, 1992 c 513 art 9 s 44 

     245A.18 Seat belt use required. 

    (a) When a nonresidential license holder provides or 
 arranges for transportation for children served by the license 
 holder, children four years old and older must be restrained by 
 a properly adjusted and fastened seat belt and children under 
 age four must be properly fastened in a child passenger 
 restraint system meeting federal motor vehicle safety 
 standards.  A child passenger restraint system is not required 
 for a child who, in the judgment of a licensed physician, cannot 
 be safely transported in a child passenger restraint system 
 because of a medical condition, body size, or physical 
 disability, if the license holder possesses a written statement 
 from the physician that satisfies the requirements in section 
 169.685, subdivision 6, paragraph (b). 

    (b) Paragraph (a) does not apply to transportation of 
 children in a school bus inspected under section 169.451 that 
 has a gross vehicle weight rating of more than 10,000 pounds, is 
 designed for carrying more than ten persons, and was 
 manufactured after 1977. 

    HIST: 1990 c 568 art 2 s 54; 1993 c 13 art 1 s 31 

     245A.19 HIV training in chemical dependency treatment 
  program. 

    (a) Applicants and license holders for chemical dependency 
 residential and nonresidential programs must demonstrate 
 compliance with HIV minimum standards prior to their application 
 being complete.  The HIV minimum standards contained in the 
 HIV-1 Guidelines for chemical dependency treatment and care 
 programs in Minnesota are not subject to rulemaking. 

    (b) Ninety days after April 29, 1992, the applicant or 
 license holder shall orient all chemical dependency treatment 
 staff and clients to the HIV minimum standards.  Thereafter, 
 orientation shall be provided to all staff and clients, within 
 72 hours of employment or admission to the program.  In-service 
 training shall be provided to all staff on at least an annual 
 basis and the license holder shall maintain records of training 
 and attendance. 

    (c) The license holder shall maintain a list of referral 
 sources for the purpose of making necessary referrals of clients 
 to HIV-related services.  The list of referral services shall be 
 updated at least annually. 

    (d) Written policies and procedures, consistent with HIV 
 minimum standards, shall be developed and followed by the 
 license holder.  All policies and procedures concerning HIV 
 minimum standards shall be approved by the commissioner.  The 
 commissioner shall provide training on HIV minimum standards to 
 applicants. 

    (e) The commissioner may permit variances from the 
 requirements in this section.  License holders seeking variances 
 must follow the procedures in section 245A.04, subdivision 9. 

    HIST: 1992 c 513 art 9 s 17 

  245A.20 Repealed, 1997 c 248 s 51 

  245A.21 Repealed, 1997 c 248 s 51 

     245A.22 Independent living assistance for youth. 

    Subdivision 1.    Independent living assistance for youth. 
  "Independent living assistance for youth" means a 
 nonresidential program that provides a system of services that 
 includes training, counseling, instruction, supervision, and 
 assistance provided to youth according to the youth's 
 independent living plan, when the placements in the program are 
 made by the county agency.  Services may include assistance in 
 locating housing, budgeting, meal preparation, shopping, 
 personal appearance, counseling, and related social support 
 services needed to meet the youth's needs and improve the 
 youth's ability to conduct such tasks independently.  Such 
 services shall not extend to youths needing 24-hour per day 
 supervision and services.  Youths needing a 24-hour per day 
 program of supervision and services shall not be accepted or 
 retained in an independent living assistance program. 

    Subd. 2.    Admission.  (a) The license holder shall 
 accept as clients in the independent living assistance program 
 only youth ages 16 to 21 who are in out-of-home placement, 
 leaving out-of-home placement, at risk of becoming homeless, or 
 homeless. 

    (b) Youth who have current drug or alcohol problems, a 
 recent history of violent behaviors, or a mental health disorder 
 or issue that is not being resolved through counseling or 
 treatment are not eligible to receive the services described in 
 subdivision 1. 

    (c) Youth who are not employed, participating in employment 
 training, or enrolled in an academic program are not eligible to 
 receive transitional housing or independent living assistance. 

    Subd. 3.    Independent living plan.  (a) Unless an 
 independent living plan has been developed by the local agency, 
 the license holder shall develop a plan based on the client's 
 individual needs that specifies objectives for the client.  The 
 services provided shall include those specified in this section. 
 The plan shall identify the persons responsible for 
 implementation of each part of the plan.  The plan shall be 
 reviewed as necessary, but at least annually. 

    (b) The following services, or adequate access to referrals 
 for the following services, must be made available to the 
 targeted youth participating in the programs described in 
 subdivision 1: 

    (1) counseling services for the youth and their families, 
 if appropriate, on site, to help with problems that contributed 
 to the homelessness or could impede making the transition to 
 independent living; 

    (2) educational, vocational, or employment services; 

    (3) health care; 

    (4) transportation services including, where appropriate, 
 assisting the child in obtaining a driver's license; 

    (5) money management skills training; 

    (6) planning for ongoing housing; 

    (7) social and recreational skills training; and 

    (8) assistance establishing and maintaining connections 
 with the child's family and community. 

    Subd. 4.    Records.  The license holder shall maintain 
 a record for each client. 

    (a)    Required records.  For each client the record 
 maintained by the license holder shall document the following: 

    (1) admission information; 

    (2) the independent living plan; 

    (3) delivery of the services required of the license holder 
 in the independent living plan; 

    (4) the client's progress toward obtaining the objectives 
 identified in the independent living plan; and 

    (5) a termination summary after service is terminated. 

    (b)    Money records.  If the license holder manages the 
 client's money, the record maintained by the license holder 
 shall also include the following: 

    (1) written permission from the client or the client's 
 legal guardian to manage the client's money; 

    (2) the reasons the license holder is to manage the 
 client's money; and 

    (3) a complete record of the use of the client's money and 
 reconciliation of the account. 

    Subd. 5.    Service termination plan.  The license 
 holder, in conjunction with the county agency, shall establish a 
 service termination plan that specifies how independent living 
 assistance services will be terminated and the actions to be 
 performed by the involved agencies, including necessary 
 referrals for other ongoing services. 

    Subd. 6.    Place of residence provided by program.  
 When a client's place of residence is provided by the license 
 holder as part of the independent living assistance program, the 
 place of residence is not subject to separate licensure. 

    Subd. 7.    General licensing requirements apply.  In 
 addition to the requirements of this section, providers of 
 independent living assistance are subject to general licensing 
 requirements of this chapter. 

    HIST: 1997 c 248 s 33; 1Sp2003 c 14 art 11 s 11; 2004 c 288 
 art 1 s 30,31 

JUVENILE FACILITIES LICENSING PROHIBITION

     245A.30 Licensing prohibition for certain juvenile 
  facilities. 

    The commissioner may not: 

    (1) issue any license under Minnesota Rules, parts 
 9545.0905 to 9545.1125, for the residential placement of 
 juveniles at a facility if the facility accepts juveniles who 
 reside outside of Minnesota without an agreement with the entity 
 placing the juvenile at the facility that obligates the entity 
 to pay the educational and medical expenses of the juvenile; or 

    (2) renew a license under Minnesota Rules, parts 9545.0905 
 to 9545.1125, for the residential placement of juveniles if the 
 facility accepts juveniles who reside outside of Minnesota 
 without an agreement with the entity placing the juvenile at the 
 facility that obligates the entity to pay the educational and 
 medical expenses of the juvenile. 

    HIST: 1998 c 367 art 10 s 3; 1999 c 245 art 8 s 2 

VULNERABLE ADULTS

     245A.65 License holder requirements governing 
  maltreatment of vulnerable adults. 

    Subdivision 1.    License holder requirements.  All 
 license holders serving vulnerable adults shall establish and 
 enforce written policies and procedures related to suspected or 
 alleged maltreatment, and shall orient clients and mandated 
 reporters who are under the control of the license holder to 
 these procedures, as defined in section 626.5572, subdivision 16.

    (a) License holders must establish policies and procedures 
 allowing but not mandating the internal reporting of alleged or 
 suspected maltreatment.  License holders shall ensure that the 
 policies and procedures on internal reporting: 

    (1) meet all the requirements identified for the optional 
 internal reporting policies and procedures in section 626.557, 
 subdivision 4a; and 

    (2) identify the primary and secondary person or position 
 to whom internal reports may be made and the primary and 
 secondary person or position responsible for forwarding internal 
 reports to the common entry point as defined in section 
 626.5572, subdivision 5.  The secondary person must be involved 
 when there is reason to believe that the primary person was 
 involved in the alleged or suspected maltreatment. 

    (b) The license holder shall:  

    (1) establish and maintain policies and procedures to 
 ensure that an internal review is completed when the facility 
 has reason to know that an internal or external report of 
 alleged or suspected maltreatment has been made.  The review 
 must include an evaluation of whether related policies and 
 procedures were followed, whether the policies and procedures 
 were adequate, whether there is a need for additional staff 
 training, and whether there is a need for any further action to 
 be taken by the facility to protect the health and safety of 
 vulnerable adults; 

    (2) identify the primary and secondary person or position 
 who will ensure that, when required, internal reviews are 
 completed.  The secondary person shall be involved when there is 
 reason to believe that the primary person was involved in the 
 alleged or suspected maltreatment; and 

    (3) document and make internal reviews accessible to the 
 commissioner upon the commissioner's request. 

    (c) The license holder shall provide an orientation to the 
 internal and external reporting procedures to all persons 
 receiving services.  The orientation shall include the telephone 
 number for the license holder's common entry point as defined in 
 section 626.5572, subdivision 5.  If applicable, the person's 
 legal representative must be notified of the orientation.  The 
 program shall provide this orientation for each new person 
 within 24 hours of admission, or for persons who would benefit 
 more from a later orientation, the orientation may take place 
 within 72 hours. 

    (d) The license holder shall post a copy of the internal 
 and external reporting policies and procedures, including the 
 telephone number of the common entry point as defined in section 
 626.5572, subdivision 5, in a prominent location in the program 
 and have it available upon request to mandated reporters, 
 persons receiving services, and the person's legal 
 representatives. 

    Subd. 2.    Abuse prevention plans.  All license holders 
 shall establish and enforce ongoing written program abuse 
 prevention plans and individual abuse prevention plans as 
 required under section 626.557, subdivision 14. 

    (a) The scope of the program abuse prevention plan is 
 limited to the population, physical plant, and environment 
 within the control of the license holder and the location where 
 licensed services are provided.  In addition to the requirements 
 in section 626.557, subdivision 14, the program abuse prevention 
 plan shall meet the requirements in clauses (1) to (5). 

    (1) The assessment of the population shall include an 
 evaluation of the following factors:  age, gender, mental 
 functioning, physical and emotional health or behavior of the 
 client; the need for specialized programs of care for clients; 
 the need for training of staff to meet identified individual 
 needs; and the knowledge a license holder may have regarding 
 previous abuse that is relevant to minimizing risk of abuse for 
 clients. 

    (2) The assessment of the physical plant where the licensed 
 services are provided shall include an evaluation of the 
 following factors:  the condition and design of the building as 
 it relates to the safety of the clients; and the existence of 
 areas in the building which are difficult to supervise. 

    (3) The assessment of the environment for each facility and 
 for each site when living arrangements are provided by the 
 agency shall include an evaluation of the following factors:  
 the location of the program in a particular neighborhood or 
 community; the type of grounds and terrain surrounding the 
 building; the type of internal programming; and the program's 
 staffing patterns. 

    (4) The license holder shall provide an orientation to the 
 program abuse prevention plan for clients receiving services.  
 If applicable, the client's legal representative must be 
 notified of the orientation.  The license holder shall provide 
 this orientation for each new person within 24 hours of 
 admission, or for persons who would benefit more from a later 
 orientation, the orientation may take place within 72 hours. 

    (5) The license holder's governing body shall review the 
 plan at least annually using the assessment factors in the plan 
 and any substantiated maltreatment findings that occurred since 
 the last review.  The governing body shall revise the plan, if 
 necessary, to reflect the review results. 

    (6) A copy of the program abuse prevention plan shall be 
 posted in a prominent location in the program and be available 
 upon request to mandated reporters, persons receiving services, 
 and legal representatives. 

    (b) In addition to the requirements in section 626.557, 
 subdivision 14, the individual abuse prevention plan shall meet 
 the requirements in clauses (1) and (2).  

    (1) The plan shall include a statement of measures that 
 will be taken to minimize the risk of abuse to the vulnerable 
 adult when the individual assessment required in section 
 626.557, subdivision 14, paragraph (b), indicates the need for 
 measures in addition to the specific measures identified in the 
 program abuse prevention plan.  The measures shall include the 
 specific actions the program will take to minimize the risk of 
 abuse within the scope of the licensed services, and will 
 identify referrals made when the vulnerable adult is susceptible 
 to abuse outside the scope or control of the licensed services.  
 When the assessment indicates that the vulnerable adult does not 
 need specific risk reduction measures in addition to those 
 identified in the program abuse prevention plan, the individual 
 abuse prevention plan shall document this determination. 

    (2) An individual abuse prevention plan shall be developed 
 for each new person as part of the initial individual program 
 plan or service plan required under the applicable licensing 
 rule.  The review and evaluation of the individual abuse 
 prevention plan shall be done as part of the review of the 
 program plan or service plan.  The person receiving services 
 shall participate in the development of the individual abuse 
 prevention plan to the full extent of the person's abilities.  
 If applicable, the person's legal representative shall be given 
 the opportunity to participate with or for the person in the 
 development of the plan.  The interdisciplinary team shall 
 document the review of all abuse prevention plans at least 
 annually, using the individual assessment and any reports of 
 abuse relating to the person.  The plan shall be revised to 
 reflect the results of this review. 

    Subd. 3.    Orientation of mandated reporters.  The 
 license holder shall ensure that each new mandated reporter, as 
 defined in section 626.5572, subdivision 16, who is under the 
 control of the license holder, receives an orientation within 72 
 hours of first providing direct contact services as defined in 
 section 245C.02, subdivision 11, to a vulnerable adult and 
 annually thereafter.  The orientation and annual review shall 
 inform the mandated reporters of the reporting requirements and 
 definitions in sections 626.557 and 626.5572, the requirements 
 of this section, the license holder's program abuse prevention 
 plan, and all internal policies and procedures related to the 
 prevention and reporting of maltreatment of individuals 
 receiving services. 

    HIST: 1997 c 248 s 34; 2003 c 15 art 1 s 33