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Minnesota Legislature

Office of the Revisor of Statutes

144A.72 REGISTRATION REQUIREMENTS; PENALTIES.
    Subdivision 1. Minimum criteria. The commissioner shall require that, as a condition
of registration:
(1) the supplemental nursing services agency shall document that each temporary employee
provided to health care facilities currently meets the minimum licensing, training, and continuing
education standards for the position in which the employee will be working;
(2) the supplemental nursing services agency shall comply with all pertinent requirements
relating to the health and other qualifications of personnel employed in health care facilities;
(3) the supplemental nursing services agency must not restrict in any manner the employment
opportunities of its employees;
(4) the supplemental nursing services agency shall carry medical malpractice insurance to
insure against the loss, damage, or expense incident to a claim arising out of the death or injury of
any person as the result of negligence or malpractice in the provision of health care services by
the supplemental nursing services agency or by any employee of the agency;
(5) the supplemental nursing services agency shall carry an employee dishonesty bond
in the amount of $10,000;
(6) the supplemental nursing services agency shall maintain insurance coverage for workers'
compensation for all nurses, nursing assistants, nurse aides, and orderlies provided or procured
by the agency;
(7) the supplemental nursing services agency shall file with the commissioner of revenue: (i)
the name and address of the bank, savings bank, or savings association in which the supplemental
nursing services agency deposits all employee income tax withholdings; and (ii) the name and
address of any nurse, nursing assistant, nurse aide, or orderly whose income is derived from
placement by the agency, if the agency purports the income is not subject to withholding;
(8) the supplemental nursing services agency must not, in any contract with any employee
or health care facility, require the payment of liquidated damages, employment fees, or other
compensation should the employee be hired as a permanent employee of a health care facility; and
(9) the supplemental nursing services agency shall document that each temporary employee
provided to health care facilities is an employee of the agency and is not an independent contractor.
    Subd. 2. Penalties. A pattern of failure to comply with this section shall subject the
supplemental nursing services agency to revocation or nonrenewal of its registration. Violations
of section 144A.74 are subject to a fine equal to 200 percent of the amount billed or received in
excess of the maximum permitted under that section.
    Subd. 3. Revocation. Notwithstanding subdivision 2, the registration of a supplemental
nursing services agency that knowingly supplies to a health care facility a person with an illegally
or fraudulently obtained or issued diploma, registration, license, certificate, or background study
shall be revoked by the commissioner. The commissioner shall notify the supplemental nursing
services agency 15 days in advance of the date of revocation.
    Subd. 4. Hearing. (a) No supplemental nursing services agency's registration may be
revoked without a hearing held as a contested case in accordance with chapter 14. The hearing
must commence within 60 days after the proceedings are initiated.
(b) If a controlling person has been notified by the commissioner of health that the
supplemental nursing services agency will not receive an initial registration or that a renewal of
the registration has been denied, the controlling person or a legal representative on behalf of the
supplemental nursing services agency may request and receive a hearing on the denial. This
hearing shall be held as a contested case in accordance with chapter 14.
    Subd. 5. Period of ineligibility. (a) The controlling person of a supplemental nursing services
agency whose registration has not been renewed or has been revoked because of noncompliance
with the provisions of sections 144A.70 to 144A.74 shall not be eligible to apply for nor will be
granted a registration for five years following the effective date of the nonrenewal or revocation.
(b) The commissioner shall not issue or renew a registration to a supplemental nursing
services agency if a controlling person includes any individual or entity who was a controlling
person of a supplemental nursing services agency whose registration was not renewed or was
revoked as described in paragraph (a) for five years following the effective date of nonrenewal or
revocation.
History: 1Sp2001 c 9 art 7 s 4; 2002 c 287 s 3-6; 2002 c 379 art 1 s 113