2007 Minnesota Statutes

144.7022 REPORTING ORGANIZATIONS; PENALTY ORDERS.
    Subdivision 1. Authorization. The commissioner may issue an order to the voluntary,
nonprofit reporting organization requiring violations to be corrected and administratively assess
monetary penalties for violations of sections 144.695 to 144.703 or rules, written operating
requirements, orders, stipulation agreements, settlements, or compliance agreements adopted,
enforced, or issued by the commissioner.
    Subd. 2. Contents of order. An order assessing an administrative penalty under this section
must include:
(1) a concise statement of the facts alleged to constitute a violation;
(2) a reference to the section of law, rule, written operating requirement, order, stipulation
agreement, settlement, or compliance agreement that has been violated;
(3) a statement of the amount of the administrative penalty to be imposed and the factors
upon which the penalty is based;
(4) a statement of the corrective actions necessary to correct the violation; and
(5) a statement of the right to request a hearing according to sections 14.57 to 14.62.
    Subd. 3. Concurrent corrective order. The commissioner may issue an order assessing
an administrative penalty and requiring the violations cited in the order be corrected within
30 calendar days from the date the order is received. Before the 31st day after the order was
received, the voluntary, nonprofit reporting organization that is subject to the order shall provide
the commissioner with information demonstrating that the violation has been corrected or that
a corrective plan acceptable to the commissioner has been developed. The commissioner shall
determine whether the violation has been corrected and notify the voluntary, nonprofit reporting
organization of the commissioner's determination.
    Subd. 4. Penalty. If the commissioner determines that the violation has been corrected or an
acceptable corrective plan has been developed, the penalty may be forgiven, except where there
are repeated or serious violations. The commissioner may issue an order with a penalty that will
not be forgiven after corrective action is taken. Unless there is a request for review of the order
under subdivision 6 before the penalty is due, the penalty is due and payable:
(1) on the 31st calendar day after the order was received, if the voluntary, nonprofit reporting
organization fails to provide information to the commissioner showing that the violation has been
corrected or that appropriate steps have been taken toward correcting the violation;
(2) on the 20th day after the voluntary, nonprofit reporting organization receives the
commissioner's determination that the information provided is not sufficient to show that either
the violation has been corrected or that appropriate steps have been taken toward correcting
the violation; or
(3) on the 31st day after the order was received where the penalty is for repeated or serious
violations and according to the order issued, the penalty will not be forgiven after corrective
action is taken.
All penalties due under this section are payable to the commissioner of finance, state of
Minnesota, and shall be deposited in the general fund.
    Subd. 5. Amount of penalty; considerations. (a) The maximum amount of an administrative
penalty order is $5,000 for each specific violation identified in an inspection, investigation, or
compliance review, up to an annual maximum total for all violations of ten percent of the fees
collected by the voluntary, nonprofit reporting organization under section 144.702, subdivision 1.
The annual maximum is based on a reporting year.
(b) In determining the amount of the administrative penalty, the commissioner shall consider
the following:
(1) the willfulness of the violation;
(2) the gravity of the violation;
(3) the history of past violations;
(4) the number of violations;
(5) the economic benefit gained by the person allowing or committing the violation; and
(6) other factors as justice may require, if the commissioner specifically identifies the
additional factors in the commissioner's order.
(c) In determining the amount of a penalty for a violation subsequent to an initial violation
under paragraph (a), the commissioner shall also consider:
(1) the similarity of the most recent previous violation and the violation to be penalized;
(2) the time elapsed since the last violation; and
(3) the response of the voluntary, nonprofit reporting organization to the most recent previous
violation.
    Subd. 6. Request for hearing; hearing; and final order. A request for hearing must be in
writing, delivered to the commissioner by certified mail within 20 calendar days after the receipt
of the order, and specifically state the reasons for seeking review of the order. The commissioner
must initiate a hearing within 30 calendar days from the date of receipt of the written request for
hearing. The hearing shall be conducted pursuant to the contested case procedures in sections
14.57 to 14.62. No earlier than ten calendar days after and within 30 calendar days of receipt of
the presiding administrative law judge's report, the commissioner shall, based on all relevant
facts, issue a final order modifying, vacating, or making the original order permanent. If, within
20 calendar days of receipt of the original order, the voluntary, nonprofit reporting organization
fails to request a hearing in writing, the order becomes the final order of the commissioner.
    Subd. 7. Review of final order and payment of penalty. Once the commissioner issues a
final order, any penalty due under that order shall be paid within 30 calendar days after the date of
the final order, unless review of the final order is requested. The final order of the commissioner
may be appealed in the manner prescribed in sections 14.63 to 14.69. If the final order is reviewed
and upheld, the penalty shall be paid 30 calendar days after the date of the decision of the
reviewing court. Failure to request an administrative hearing pursuant to subdivision 6 shall
constitute a waiver of the right to further agency or judicial review of the final order.
    Subd. 8. Reinspections and effect of noncompliance. If, upon reinspection, or in the
determination of the commissioner, it is found that any deficiency specified in the order has
not been corrected or an acceptable corrective plan has not been developed, the voluntary,
nonprofit reporting organization is in noncompliance. The commissioner shall issue a notice of
noncompliance and may impose any additional remedy available under this chapter.
    Subd. 9. Enforcement. The attorney general may proceed on behalf of the commissioner
to enforce penalties that are due and payable under this section in any manner provided by law
for the collection of debts.
    Subd. 10. Termination or nonrenewal of reporting organization. The commissioner may
withdraw or not renew approval of any voluntary, nonprofit reporting organization for failure on
the part of the voluntary, nonprofit reporting organization to pay penalties owed under this section.
    Subd. 11. Cumulative remedy. The authority of the commissioner to issue an administrative
penalty order is in addition to other lawfully available remedies.
    Subd. 12. Mediation. In addition to review under subdivision 6, the commissioner
is authorized to enter into mediation concerning an order issued under this section if the
commissioner and the voluntary, nonprofit reporting organization agree to mediation.
History: 1998 c 407 art 2 s 33; 2003 c 112 art 2 s 50