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Minnesota Legislature

Office of the Revisor of Statutes

Chapter 245A

Section 245A.04

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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; 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. Grant of license; license extension. (a) If the commissioner determines that the
program complies with all applicable rules and laws, the commissioner shall issue a license.
At minimum, the license shall state:
(1) the name of the license holder;
(2) the address of the program;
(3) the effective date and expiration date of the license;
(4) the type of license;
(5) the maximum number and ages of persons that may receive services from the program;
and
(6) any special conditions of licensure.
(b) The commissioner may issue an initial license for a period not to exceed two years if:
(1) the commissioner is unable to conduct the evaluation or observation required by
subdivision 4, paragraph (a), clauses (3) and (4), because the program is not yet operational;
(2) certain records and documents are not available because persons are not yet receiving
services from the program; and
(3) the applicant complies with applicable laws and rules in all other respects.
(c) A decision by the commissioner to issue a license does not guarantee that any person or
persons will be placed or cared for in the licensed program. A license shall not be transferable
to another individual, corporation, partnership, voluntary association, other organization, or
controlling 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.
(f) The commissioner shall not issue a license if an individual living in the household where
the licensed services will be provided as specified under section 245C.03, subdivision 1, has been
disqualified and the disqualification has not been set aside.
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 by the commissioner of human services under Minnesota
Rules, parts 2960.0010 to 2960.0710, may serve persons through the age of 19 when:
    (1) the admission or continued stay 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; 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. Funds and property; other requirements. (a) A license holder must ensure
that persons served by the program retain the use and availability of personal funds or property
unless restrictions are justified in the person's individual plan. This subdivision does not apply to
programs governed by the provisions in section 245B.07, subdivision 10.
(b) The license holder must ensure separation of funds of persons served by the program
from funds of the license holder, the program, or program staff.
(c) Whenever the license holder assists a person served by the program with the safekeeping
of funds or other property, the license holder must:
(1) immediately document receipt and disbursement of the person's funds or other property
at the time of receipt or disbursement, including the person's signature, or the signature of the
conservator or payee; and
(2) return to the person upon the person's request, funds and property in the license holder's
possession subject to restrictions in the person's treatment plan, as soon as possible, but no later
than three working days after the date of request.
(d) License holders and program staff must not:
(1) borrow money from a person served by the program;
(2) purchase personal items from a person served by the program;
(3) sell merchandise or personal services to a person served by the program;
(4) require a person served by the program to purchase items for which the license holder is
eligible for reimbursement; or
(5) use funds of persons served by the program to purchase items for which the facility is
already receiving public or private payments.
    Subd. 14. Policies and procedures for program administration required and enforceable.
    (a) The license holder shall develop program policies and procedures necessary to maintain
compliance with licensing requirements under Minnesota Statutes and Minnesota Rules.
    (b) The license holder shall:
    (1) provide training to program staff related to their duties in implementing the program's
policies and procedures developed under paragraph (a);
    (2) document the provision of this training; and
    (3) monitor implementation of policies and procedures by program staff.
    (c) The license holder shall keep program policies and procedures readily accessible to
staff and index the policies and procedures with a table of contents or another method approved
by the commissioner.
    Subd. 15. Pandemic planning. Upon request, the license holder must cooperate with state
and local government disaster planning agencies working to prepare for or react to emergencies
presented by a pandemic outbreak.
History: 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;
1Sp2005 c 4 art 1 s 9,10; 2007 c 112 s 4-6