1.1.................... moves to amend H.F. No. 2009 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. Minnesota Statutes 2010, section 13.46, subdivision 2, is amended to read:
1.6    Subd. 2. General. (a) Unless the data is summary data or a statute specifically
1.7provides a different classification, data on individuals collected, maintained, used, or
1.8disseminated by the welfare system is private data on individuals, and shall not be
1.9disclosed except:
1.10    (1) according to section 13.05;
1.11    (2) according to court order;
1.12    (3) according to a statute specifically authorizing access to the private data;
1.13    (4) to an agent of the welfare system and an investigator acting on behalf of a county,
1.14the state, or the federal government, including a law enforcement person, or attorney, or
1.15investigator acting for it in the investigation or prosecution of a criminal, or civil, or
1.16administrative proceeding relating to the administration of a program;
1.17    (5) to personnel of the welfare system who require the data to verify an individual's
1.18identity; determine eligibility, amount of assistance, and the need to provide services to
1.19an individual or family across programs; evaluate the effectiveness of programs; assess
1.20parental contribution amounts; and investigate suspected fraud;
1.21    (6) to administer federal funds or programs;
1.22    (7) between personnel of the welfare system working in the same program;
1.23    (8) to the Department of Revenue to assess parental contribution amounts for
1.24purposes of section 252.27, subdivision 2a, administer and evaluate tax refund or tax credit
1.25programs and to identify individuals who may benefit from these programs. The following
1.26information may be disclosed under this paragraph: an individual's and their dependent's
2.1names, dates of birth, Social Security numbers, income, addresses, and other data as
2.2required, upon request by the Department of Revenue. Disclosures by the commissioner
2.3of revenue to the commissioner of human services for the purposes described in this clause
2.4are governed by section 270B.14, subdivision 1. Tax refund or tax credit programs include,
2.5but are not limited to, the dependent care credit under section 290.067, the Minnesota
2.6working family credit under section 290.0671, the property tax refund and rental credit
2.7under section 290A.04, and the Minnesota education credit under section 290.0674;
2.8    (9) between the Department of Human Services, the Department of Employment
2.9and Economic Development, and when applicable, the Department of Education, for
2.10the following purposes:
2.11    (i) to monitor the eligibility of the data subject for unemployment benefits, for any
2.12employment or training program administered, supervised, or certified by that agency;
2.13    (ii) to administer any rehabilitation program or child care assistance program,
2.14whether alone or in conjunction with the welfare system;
2.15    (iii) to monitor and evaluate the Minnesota family investment program or the child
2.16care assistance program by exchanging data on recipients and former recipients of food
2.17support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance
2.18under chapter 119B, or medical programs under chapter 256B, 256D, or 256L; and
2.19    (iv) to analyze public assistance employment services and program utilization,
2.20cost, effectiveness, and outcomes as implemented under the authority established in Title
2.21II, Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of
2.221999. Health records governed by sections 144.291 to 144.298 and "protected health
2.23information" as defined in Code of Federal Regulations, title 45, section 160.103, and
2.24governed by Code of Federal Regulations, title 45, parts 160-164, including health care
2.25claims utilization information, must not be exchanged under this clause;
2.26    (10) to appropriate parties in connection with an emergency if knowledge of
2.27the information is necessary to protect the health or safety of the individual or other
2.28individuals or persons;
2.29    (11) data maintained by residential programs as defined in section 245A.02 may
2.30be disclosed to the protection and advocacy system established in this state according
2.31to Part C of Public Law 98-527 to protect the legal and human rights of persons with
2.32developmental disabilities or other related conditions who live in residential facilities for
2.33these persons if the protection and advocacy system receives a complaint by or on behalf
2.34of that person and the person does not have a legal guardian or the state or a designee of
2.35the state is the legal guardian of the person;
3.1    (12) to the county medical examiner or the county coroner for identifying or locating
3.2relatives or friends of a deceased person;
3.3    (13) data on a child support obligor who makes payments to the public agency
3.4may be disclosed to the Minnesota Office of Higher Education to the extent necessary to
3.5determine eligibility under section 136A.121, subdivision 2, clause (5);
3.6    (14) participant Social Security numbers and names collected by the telephone
3.7assistance program may be disclosed to the Department of Revenue to conduct an
3.8electronic data match with the property tax refund database to determine eligibility under
3.9section 237.70, subdivision 4a;
3.10    (15) the current address of a Minnesota family investment program participant
3.11may be disclosed to law enforcement officers who provide the name of the participant
3.12and notify the agency that:
3.13    (i) the participant:
3.14    (A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after
3.15conviction, for a crime or attempt to commit a crime that is a felony under the laws of the
3.16jurisdiction from which the individual is fleeing; or
3.17    (B) is violating a condition of probation or parole imposed under state or federal law;
3.18    (ii) the location or apprehension of the felon is within the law enforcement officer's
3.19official duties; and
3.20    (iii) the request is made in writing and in the proper exercise of those duties;
3.21    (16) the current address of a recipient of general assistance or general assistance
3.22medical care may be disclosed to probation officers and corrections agents who are
3.23supervising the recipient and to law enforcement officers who are investigating the
3.24recipient in connection with a felony level offense;
3.25    (17) information obtained from food support applicant or recipient households may
3.26be disclosed to local, state, or federal law enforcement officials, upon their written request,
3.27for the purpose of investigating an alleged violation of the Food Stamp Act, according
3.28to Code of Federal Regulations, title 7, section 272.1 (c);
3.29    (18) the address, Social Security number, and, if available, photograph of any
3.30member of a household receiving food support shall be made available, on request, to a
3.31local, state, or federal law enforcement officer if the officer furnishes the agency with the
3.32name of the member and notifies the agency that:
3.33    (i) the member:
3.34    (A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a
3.35crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;
4.1    (B) is violating a condition of probation or parole imposed under state or federal
4.2law; or
4.3    (C) has information that is necessary for the officer to conduct an official duty related
4.4to conduct described in subitem (A) or (B);
4.5    (ii) locating or apprehending the member is within the officer's official duties; and
4.6    (iii) the request is made in writing and in the proper exercise of the officer's official
4.7duty;
4.8    (19) the current address of a recipient of Minnesota family investment program,
4.9general assistance, general assistance medical care, or food support may be disclosed to
4.10law enforcement officers who, in writing, provide the name of the recipient and notify the
4.11agency that the recipient is a person required to register under section 243.166, but is not
4.12residing at the address at which the recipient is registered under section 243.166;
4.13    (20) certain information regarding child support obligors who are in arrears may be
4.14made public according to section 518A.74;
4.15    (21) data on child support payments made by a child support obligor and data on
4.16the distribution of those payments excluding identifying information on obligees may be
4.17disclosed to all obligees to whom the obligor owes support, and data on the enforcement
4.18actions undertaken by the public authority, the status of those actions, and data on the
4.19income of the obligor or obligee may be disclosed to the other party;
4.20    (22) data in the work reporting system may be disclosed under section 256.998,
4.21subdivision 7 ;
4.22    (23) to the Department of Education for the purpose of matching Department of
4.23Education student data with public assistance data to determine students eligible for free
4.24and reduced-price meals, meal supplements, and free milk according to United States
4.25Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and
4.26state funds that are distributed based on income of the student's family; and to verify
4.27receipt of energy assistance for the telephone assistance plan;
4.28    (24) the current address and telephone number of program recipients and emergency
4.29contacts may be released to the commissioner of health or a local board of health as
4.30defined in section 145A.02, subdivision 2, when the commissioner or local board of health
4.31has reason to believe that a program recipient is a disease case, carrier, suspect case, or at
4.32risk of illness, and the data are necessary to locate the person;
4.33    (25) to other state agencies, statewide systems, and political subdivisions of this
4.34state, including the attorney general, and agencies of other states, interstate information
4.35networks, federal agencies, and other entities as required by federal regulation or law for
4.36the administration of the child support enforcement program;
5.1    (26) to personnel of public assistance programs as defined in section 256.741, for
5.2access to the child support system database for the purpose of administration, including
5.3monitoring and evaluation of those public assistance programs;
5.4    (27) to monitor and evaluate the Minnesota family investment program by
5.5exchanging data between the Departments of Human Services and Education, on
5.6recipients and former recipients of food support, cash assistance under chapter 256, 256D,
5.7256J, or 256K, child care assistance under chapter 119B, or medical programs under
5.8chapter 256B, 256D, or 256L;
5.9    (28) to evaluate child support program performance and to identify and prevent
5.10fraud in the child support program by exchanging data between the Department of Human
5.11Services, Department of Revenue under section 270B.14, subdivision 1, paragraphs (a)
5.12and (b), without regard to the limitation of use in paragraph (c), Department of Health,
5.13Department of Employment and Economic Development, and other state agencies as is
5.14reasonably necessary to perform these functions;
5.15    (29) counties operating child care assistance programs under chapter 119B may
5.16disseminate data on program participants, applicants, and providers to the commissioner
5.17of education; or
5.18    (30) child support data on the parents and the child may be disclosed to agencies
5.19administering programs under titles IV-B and IV-E of the Social Security Act, as provided
5.20by federal law. Data may be disclosed only to the extent necessary for the purpose of
5.21establishing parentage or for determining who has or may have parental rights with respect
5.22to a child, which could be related to permanency planning.
5.23    (b) Information on persons who have been treated for drug or alcohol abuse may
5.24only be disclosed according to the requirements of Code of Federal Regulations, title
5.2542, sections 2.1 to 2.67.
5.26    (c) Data provided to law enforcement agencies under paragraph (a), clause (15),
5.27(16), (17), or (18), or paragraph (b), are investigative data and are confidential or protected
5.28nonpublic while the investigation is active. The data are private after the investigation
5.29becomes inactive under section 13.82, subdivision 5, paragraph (a) or (b).
5.30    (d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but is
5.31not subject to the access provisions of subdivision 10, paragraph (b).
5.32    For the purposes of this subdivision, a request will be deemed to be made in writing
5.33if made through a computer interface system.

5.34    Sec. 2. Minnesota Statutes 2010, section 13.46, subdivision 3, is amended to read:
6.1    Subd. 3. Investigative data. (a) Data on persons, including data on vendors of
6.2services, licensees, and applicants that is collected, maintained, used, or disseminated
6.3by the welfare system in an investigation, authorized by statute, and relating to the
6.4enforcement of rules or law is confidential data on individuals pursuant to section 13.02,
6.5subdivision 3 , or protected nonpublic data not on individuals pursuant to section 13.02,
6.6subdivision 13 , and shall not be disclosed except:
6.7    (1) pursuant to section 13.05;
6.8    (2) pursuant to statute or valid court order;
6.9    (3) to a party named in a civil or criminal proceeding, administrative or judicial,
6.10through discovery processes, for preparation of defense; or
6.11    (4) to provide notices required or permitted by statute.
6.12    The data referred to in this subdivision shall be classified as public data upon
6.13its submission to an administrative law judge or court in an administrative or judicial
6.14proceeding. Inactive welfare investigative data shall be treated as provided in section
6.1513.39, subdivision 3 .
6.16    (b) Notwithstanding any other provision in law, the commissioner of human services
6.17shall provide all active and inactive investigative data, including the name of the reporter
6.18of alleged maltreatment under section 626.556 or 626.557, to the ombudsman for mental
6.19health and developmental disabilities upon the request of the ombudsman.
6.20    (c) Notwithstanding paragraph (a) and section 13.39, the existence and status of an
6.21investigation by the commissioner of possible overpayments of public funds to a service
6.22provider are public data during an investigation.

6.23    Sec. 3. Minnesota Statutes 2010, section 13.46, subdivision 4, is amended to read:
6.24    Subd. 4. Licensing data. (a) As used in this subdivision:
6.25    (1) "licensing data" means all data collected, maintained, used, or disseminated by
6.26the welfare system pertaining to persons licensed or registered or who apply for licensure
6.27or registration or who formerly were licensed or registered under the authority of the
6.28commissioner of human services;
6.29    (2) "client" means a person who is receiving services from a licensee or from an
6.30applicant for licensure; and
6.31    (3) "personal and personal financial data" means Social Security numbers, identity
6.32of and letters of reference, insurance information, reports from the Bureau of Criminal
6.33Apprehension, health examination reports, and social/home studies.
6.34    (b)(1)(i) Except as provided in paragraph (c), the following data on applicants,
6.35license holders, and former licensees are public: name, address, telephone number of
7.1licensees, date of receipt of a completed application, dates of licensure, licensed capacity,
7.2type of client preferred, variances granted, record of training and education in child care
7.3and child development, type of dwelling, name and relationship of other family members,
7.4previous license history, class of license, the existence and status of complaints, and the
7.5number of serious injuries to or deaths of individuals in the licensed program as reported
7.6to the commissioner of human services, the local social services agency, or any other
7.7county welfare agency. For purposes of this clause, a serious injury is one that is treated
7.8by a physician.
7.9(ii) When a correction order, an order to forfeit a fine, an order of license suspension,
7.10an order of temporary immediate suspension, an order of license revocation, an order
7.11of license denial, or an order of conditional license has been issued, or a complaint is
7.12resolved, the following data on current and former licensees and applicants are public: the
7.13substance and investigative findings of the licensing or maltreatment complaint, licensing
7.14violation, or substantiated maltreatment; the record of informal resolution of a licensing
7.15violation; orders of hearing; findings of fact; conclusions of law; specifications of the final
7.16correction order, fine, suspension, temporary immediate suspension, revocation, denial, or
7.17conditional license contained in the record of licensing action; whether a fine has been
7.18paid; and the status of any appeal of these actions. If a licensing sanction under section
7.19245A.07, or a license denial under section 245A.05, is based on a determination that the
7.20license holder or applicant is responsible for maltreatment or is disqualified under chapter
7.21245C, the identity of the license holder or applicant as the individual responsible for
7.22maltreatment or as the disqualified individual is public data at the time of the issuance of
7.23the licensing sanction or denial.
7.24(iii) When a license denial under section 245A.05 or a sanction under section
7.25245A.07 is based on a determination that the license holder or applicant is responsible for
7.26maltreatment under section 626.556 or 626.557, the identity of the applicant or license
7.27holder as the individual responsible for maltreatment is public data at the time of the
7.28issuance of the license denial or sanction.
7.29(iv) When a license denial under section 245A.05 or a sanction under section
7.30245A.07 is based on a determination that the license holder or applicant is disqualified
7.31under chapter 245C, the identity of the license holder or applicant as the disqualified
7.32individual and the reason for the disqualification are public data at the time of the
7.33issuance of the licensing sanction or denial. If the applicant or license holder requests
7.34reconsideration of the disqualification and the disqualification is affirmed, the reason for
7.35the disqualification and the reason to not set aside the disqualification are public data.
8.1    (2) Notwithstanding sections 626.556, subdivision 11, and 626.557, subdivision 12b,
8.2when any person subject to disqualification under section 245C.14 in connection with a
8.3license to provide family day care for children, child care center services, foster care
8.4for children in the provider's home, or foster care or day care services for adults in the
8.5provider's home is a substantiated perpetrator of maltreatment, and the substantiated
8.6maltreatment is a reason for a licensing action, the identity of the substantiated perpetrator
8.7of maltreatment is public data. For purposes of this clause, a person is a substantiated
8.8perpetrator if the maltreatment determination has been upheld under section 256.045;
8.9626.556, subdivision 10i ; 626.557, subdivision 9d; or chapter 14, or if an individual or
8.10facility has not timely exercised appeal rights under these sections, except as provided
8.11under clause (1).
8.12    (3) For applicants who withdraw their application prior to licensure or denial of a
8.13license, the following data are public: the name of the applicant, the city and county in
8.14which the applicant was seeking licensure, the dates of the commissioner's receipt of the
8.15initial application and completed application, the type of license sought, and the date
8.16of withdrawal of the application.
8.17    (4) For applicants who are denied a license, the following data are public: the name
8.18and address of the applicant, the city and county in which the applicant was seeking
8.19licensure, the dates of the commissioner's receipt of the initial application and completed
8.20application, the type of license sought, the date of denial of the application, the nature of
8.21the basis for the denial, the record of informal resolution of a denial, orders of hearings,
8.22findings of fact, conclusions of law, specifications of the final order of denial, and the
8.23status of any appeal of the denial.
8.24    (5) The following data on persons subject to disqualification under section 245C.14
8.25in connection with a license to provide family day care for children, child care center
8.26services, foster care for children in the provider's home, or foster care or day care
8.27services for adults in the provider's home, are public: the nature of any disqualification
8.28set aside under section 245C.22, subdivisions 2 and 4, and the reasons for setting aside
8.29the disqualification; the nature of any disqualification for which a variance was granted
8.30under sections 245A.04, subdivision 9; and 245C.30, and the reasons for granting any
8.31variance under section 245A.04, subdivision 9; and, if applicable, the disclosure that
8.32any person subject to a background study under section 245C.03, subdivision 1, has
8.33successfully passed a background study. If a licensing sanction under section 245A.07,
8.34or a license denial under section 245A.05, is based on a determination that an individual
8.35subject to disqualification under chapter 245C is disqualified, the disqualification as a
8.36basis for the licensing sanction or denial is public data. As specified in clause (1), item
9.1(iv), if the disqualified individual is the license holder or applicant, the identity of the
9.2license holder or applicant is and the reason for the disqualification are public data; and, if
9.3the license holder or applicant requested reconsideration of the disqualification and the
9.4disqualification is affirmed, the reason for the disqualification and the reason to not set
9.5aside the disqualification are public data. If the disqualified individual is an individual
9.6other than the license holder or applicant, the identity of the disqualified individual shall
9.7remain private data.
9.8    (6) When maltreatment is substantiated under section 626.556 or 626.557 and the
9.9victim and the substantiated perpetrator are affiliated with a program licensed under
9.10chapter 245A, the commissioner of human services, local social services agency, or
9.11county welfare agency may inform the license holder where the maltreatment occurred of
9.12the identity of the substantiated perpetrator and the victim.
9.13    (7) Notwithstanding clause (1), for child foster care, only the name of the license
9.14holder and the status of the license are public if the county attorney has requested that data
9.15otherwise classified as public data under clause (1) be considered private data based on the
9.16best interests of a child in placement in a licensed program.
9.17    (c) The following are private data on individuals under section 13.02, subdivision
9.1812 , or nonpublic data under section 13.02, subdivision 9: personal and personal financial
9.19data on family day care program and family foster care program applicants and licensees
9.20and their family members who provide services under the license.
9.21    (d) The following are private data on individuals: the identity of persons who have
9.22made reports concerning licensees or applicants that appear in inactive investigative data,
9.23and the records of clients or employees of the licensee or applicant for licensure whose
9.24records are received by the licensing agency for purposes of review or in anticipation of a
9.25contested matter. The names of reporters of complaints or alleged violations of licensing
9.26standards under chapters 245A, 245B, 245C, and applicable rules and alleged maltreatment
9.27under sections 626.556 and 626.557, are confidential data and may be disclosed only as
9.28provided in section 626.556, subdivision 11, or 626.557, subdivision 12b.
9.29    (e) Data classified as private, confidential, nonpublic, or protected nonpublic under
9.30this subdivision become public data if submitted to a court or administrative law judge as
9.31part of a disciplinary proceeding in which there is a public hearing concerning a license
9.32which has been suspended, immediately suspended, revoked, or denied.
9.33    (f) Data generated in the course of licensing investigations that relate to an alleged
9.34violation of law are investigative data under subdivision 3.
9.35    (g) Data that are not public data collected, maintained, used, or disseminated under
9.36this subdivision that relate to or are derived from a report as defined in section 626.556,
10.1subdivision 2 , or 626.5572, subdivision 18, are subject to the destruction provisions of
10.2sections 626.556, subdivision 11c, and 626.557, subdivision 12b.
10.3    (h) Upon request, not public data collected, maintained, used, or disseminated under
10.4this subdivision that relate to or are derived from a report of substantiated maltreatment as
10.5defined in section 626.556 or 626.557 may be exchanged with the Department of Health
10.6for purposes of completing background studies pursuant to section 144.057 and with
10.7the Department of Corrections for purposes of completing background studies pursuant
10.8to section 241.021.
10.9    (i) Data on individuals collected according to licensing activities under chapters
10.10245A and 245C, and data on individuals collected by the commissioner of human
10.11services according to maltreatment investigations under chapters 245A and 245C, and
10.12sections 626.556 and 626.557, may be shared with the Department of Human Rights, the
10.13Department of Health, the Department of Corrections, the ombudsman for mental health
10.14and developmental disabilities, and the individual's professional regulatory board when
10.15there is reason to believe that laws or standards under the jurisdiction of those agencies
10.16may have been violated or the information may otherwise be relevant to the board's
10.17regulatory jurisdiction. Background study data on an individual who is the subject of a
10.18background study under chapter 245C for a licensed service for which the commissioner
10.19of human services is the license holder may be shared with the commissioner and the
10.20commissioner's delegate by the licensing division.. Unless otherwise specified in this
10.21chapter, the identity of a reporter of alleged maltreatment or licensing violations may not
10.22be disclosed.
10.23    (j) In addition to the notice of determinations required under section 626.556,
10.24subdivision 10f , if the commissioner or the local social services agency has determined
10.25that an individual is a substantiated perpetrator of maltreatment of a child based on sexual
10.26abuse, as defined in section 626.556, subdivision 2, and the commissioner or local social
10.27services agency knows that the individual is a person responsible for a child's care in
10.28another facility, the commissioner or local social services agency shall notify the head
10.29of that facility of this determination. The notification must include an explanation of the
10.30individual's available appeal rights and the status of any appeal. If a notice is given under
10.31this paragraph, the government entity making the notification shall provide a copy of the
10.32notice to the individual who is the subject of the notice.
10.33    (k) All not public data collected, maintained, used, or disseminated under this
10.34subdivision and subdivision 3 may be exchanged between the Department of Human
10.35Services, Licensing Division, and the Department of Corrections for purposes of
11.1regulating services for which the Department of Human Services and the Department
11.2of Corrections have regulatory authority.

11.3    Sec. 4. Minnesota Statutes 2010, section 13.82, subdivision 1, is amended to read:
11.4    Subdivision 1. Application. This section shall apply to agencies which carry on
11.5a law enforcement function, including but not limited to municipal police departments,
11.6county sheriff departments, fire departments, the Bureau of Criminal Apprehension,
11.7the Minnesota State Patrol, the Board of Peace Officer Standards and Training, the
11.8Department of Commerce, and the program integrity section of, and county human service
11.9agency client and provider fraud investigation, prevention, and control units operated or
11.10supervised by the Department of Human Services.


11.13    Section 1. Minnesota Statutes 2010, section 245A.04, subdivision 1, is amended to
11.14read:
11.15    Subdivision 1. Application for licensure. (a) An individual, corporation,
11.16partnership, voluntary association, other organization or controlling individual that is
11.17subject to licensure under section 245A.03 must apply for a license. The application
11.18must be made on the forms and in the manner prescribed by the commissioner. The
11.19commissioner shall provide the applicant with instruction in completing the application
11.20and provide information about the rules and requirements of other state agencies that affect
11.21the applicant. An applicant seeking licensure in Minnesota with headquarters outside of
11.22Minnesota must have a program office located within the state.
11.23The commissioner shall act on the application within 90 working days after a
11.24complete application and any required reports have been received from other state
11.25agencies or departments, counties, municipalities, or other political subdivisions. The
11.26commissioner shall not consider an application to be complete until the commissioner
11.27receives all of the information required under section 245C.05.
11.28When the commissioner receives an application for initial licensure that is incomplete
11.29because the applicant failed to submit required documents or that is substantially
11.30deficient because the documents submitted do not meet licensing requirements, the
11.31commissioner shall provide the applicant written notice that the application is incomplete
11.32or substantially deficient. In the written notice to the applicant the commissioner shall
11.33identify documents that are missing or deficient and give the applicant 45 days to resubmit
11.34a second application that is substantially complete. An applicant's failure to submit a
12.1substantially complete application after receiving notice from the commissioner is a basis
12.2for license denial under section 245A.05.
12.3(b) An application for licensure must specify one or more identify all controlling
12.4individuals as and must specify an agent who is responsible for dealing with the
12.5commissioner of human services on all matters provided for in this chapter and on whom
12.6service of all notices and orders must be made. The agent must be authorized to accept
12.7service on behalf of all of the controlling individuals of the program. Service on the agent
12.8is service on all of the controlling individuals of the program. It is not a defense to any
12.9action arising under this chapter that service was not made on each controlling individual
12.10of the program. The designation of one or more controlling individuals as agents under
12.11this paragraph does not affect the legal responsibility of any other controlling individual
12.12under this chapter.
12.13(c) An applicant or license holder must have a policy that prohibits license holders,
12.14employees, subcontractors, and volunteers, when directly responsible for persons served
12.15by the program, from abusing prescription medication or being in any manner under
12.16the influence of a chemical that impairs the individual's ability to provide services or
12.17care. The license holder must train employees, subcontractors, and volunteers about the
12.18program's drug and alcohol policy.
12.19(d) An applicant and license holder must have a program grievance procedure that
12.20permits persons served by the program and their authorized representatives to bring a
12.21grievance to the highest level of authority in the program.
12.22(e) The applicant must be able to demonstrate competent knowledge of the
12.23applicable requirements of this chapter and chapter 245C, and the requirements of
12.24other licensing statutes and rules applicable to the program or services for which the
12.25applicant is seeking to be licensed. Effective January 1, 2013, the commissioner may
12.26require the applicant, except for child foster care, to demonstrate competence in the
12.27applicable licensing requirements by successfully completing a written examination. The
12.28commissioner may develop a prescribed written examination format.
12.29(f) When an applicant is an individual, the individual must provide the applicant's
12.30Social Security number and a photocopy of a Minnesota driver's license, Minnesota
12.31identification card, or valid United States passport.
12.32(g) When an applicant is a nonindividual, the applicant must provide the applicant's
12.33Minnesota tax identification number, the name, address, and Social Security number of
12.34all individuals who will be controlling individuals, including all officers, owners, and
12.35managerial officials as defined in section 245A.02, subdivision 5a, and the date that the
12.36background study was initiated by the applicant for each controlling individual, and:
13.1(1) if the agent authorized to accept service on behalf of all the controlling
13.2individuals resides in Minnesota, the agent must provide a photocopy of the agent's
13.3Minnesota driver's license, Minnesota identification card, or United States passport; or
13.4(2) if the agent authorized to accept service on behalf of all the controlling
13.5individuals resides outside Minnesota, the agent must provide a photocopy of the agent's
13.6driver's license or identification card from the state where the agent resides or a photocopy
13.7of the agent's United States passport.

13.8    Sec. 2. Minnesota Statutes 2010, section 245A.04, subdivision 5, is amended to read:
13.9    Subd. 5. Commissioner's right of access. (a) When the commissioner is exercising
13.10the powers conferred by this chapter and sections 245.69, 626.556, and 626.557, the
13.11commissioner must be given access to:
13.12(1) the physical plant and grounds where the program is provided,;
13.13(2) documents and records, including records maintained in electronic format,
13.14(3) persons served by the program,; and
13.15(4) staff whenever the program is in operation and the information is relevant to
13.16inspections or investigations conducted by the commissioner. The commissioner must be
13.17given access without prior notice and as often as the commissioner considers necessary if
13.18the commissioner is investigating alleged maltreatment, conducting a licensing inspection,
13.19or investigating an alleged violation of applicable laws or rules. In conducting inspections,
13.20the commissioner may request and shall receive assistance from other state, county, and
13.21municipal governmental agencies and departments. The applicant or license holder
13.22shall allow the commissioner to photocopy, photograph, and make audio and video tape
13.23recordings during the inspection of the program at the commissioner's expense. The
13.24commissioner shall obtain a court order or the consent of the subject of the records or the
13.25parents or legal guardian of the subject before photocopying hospital medical records.
13.26(b) For programs with a government entity as license holder, the commissioner's data
13.27access provisions of this chapter supersede the otherwise applicable provisions of chapter
13.2813. Persons served by the program have the right to refuse to consent to be interviewed,
13.29photographed, or audio or videotaped. Failure or refusal of an applicant or license holder
13.30to fully comply with this subdivision is reasonable cause for the commissioner to deny the
13.31application or immediately suspend or revoke the license.

13.32    Sec. 3. Minnesota Statutes 2010, section 245A.04, subdivision 7, is amended to read:
14.1    Subd. 7. Grant of license; license extension. (a) If the commissioner determines
14.2that the program complies with all applicable rules and laws, the commissioner shall issue
14.3a license. At minimum, the license shall state:
14.4(1) the name of the license holder;
14.5(2) the address of the program;
14.6(3) the effective date and expiration date of the license;
14.7(4) the type of license;
14.8(5) the maximum number and ages of persons that may receive services from the
14.9program; and
14.10(6) any special conditions of licensure.
14.11(b) The commissioner may issue an initial license for a period not to exceed two
14.12years if:
14.13(1) the commissioner is unable to conduct the evaluation or observation required
14.14by subdivision 4, paragraph (a), clauses (3) and (4), because the program is not yet
14.15operational;
14.16(2) certain records and documents are not available because persons are not yet
14.17receiving services from the program; and
14.18(3) the applicant complies with applicable laws and rules in all other respects.
14.19(c) A decision by the commissioner to issue a license does not guarantee that any
14.20person or persons will be placed or cared for in the licensed program. A license shall not
14.21be transferable to another individual, corporation, partnership, voluntary association, other
14.22organization, or controlling individual or to another location.
14.23(d) A license holder must notify the commissioner and obtain the commissioner's
14.24approval before making any changes that would alter the license information listed under
14.25paragraph (a).
14.26(e) Except as provided in paragraphs (g) and (h), the commissioner shall not issue or
14.27reissue a license if the applicant, license holder, or controlling individual has:
14.28(1) been disqualified and the disqualification was not set aside and no variance has
14.29been granted;
14.30(2) has been denied a license within the past two years;
14.31(3) had a license revoked within the past five years; or
14.32(4) has an outstanding debt related to a license fee, licensing fine, or settlement
14.33agreement for which payment is delinquent.; or
14.34(5) failed to submit the information required of an applicant under section 245A.04,
14.35subdivision 1, paragraph (f) or (g), after being requested by the commissioner.
15.1When a license is revoked under clause (1) or (3), the license holder and controlling
15.2individual may not hold any license under chapter 245A or 245B for five years following
15.3the revocation, and other licenses held by the applicant, license holder, or controlling
15.4individual shall also be revoked.
15.5(f) The commissioner shall not issue or reissue a license if an individual living in
15.6the household where the licensed services will be provided as specified under section
15.7245C.03, subdivision 1 , has been disqualified and the disqualification has not been set
15.8aside and no variance has been granted.
15.9(g) Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license has
15.10been suspended or revoked and the suspension or revocation is under appeal, the program
15.11may continue to operate pending a final order from the commissioner. If the license under
15.12suspension or revocation will expire before a final order is issued, a temporary provisional
15.13license may be issued provided any applicable license fee is paid before the temporary
15.14provisional license is issued.
15.15(h) Notwithstanding paragraph (g), when a revocation is based on the disqualification
15.16of a controlling individual or license holder, and the controlling individual or license holder
15.17is ordered under section 245C.17 to be immediately removed from direct contact with
15.18persons receiving services or is ordered to be under continuous, direct supervision when
15.19providing direct contact services, the program may continue to operate only if the program
15.20complies with the order and submits documentation demonstrating compliance with the
15.21order. If the disqualified individual fails to submit a timely request for reconsideration, or
15.22if the disqualification is not set aside and no variance is granted, the order to immediately
15.23remove the individual from direct contact or to be under continuous, direct supervision
15.24remains in effect pending the outcome of a hearing and final order from the commissioner.
15.25(i) For purposes of reimbursement for meals only, under the Child and Adult Care
15.26Food Program, Code of Federal Regulations, title 7, subtitle B, chapter II, subchapter A,
15.27part 226, relocation within the same county by a licensed family day care provider, shall
15.28be considered an extension of the license for a period of no more than 30 calendar days or
15.29until the new license is issued, whichever occurs first, provided the county agency has
15.30determined the family day care provider meets licensure requirements at the new location.
15.31(j) Unless otherwise specified by statute, all licenses expire at 12:01 a.m. on the
15.32day after the expiration date stated on the license. A license holder must apply for and
15.33be granted a new license to operate the program or the program must not be operated
15.34after the expiration date.
15.35(k) The commissioner shall not issue or reissue a license if it has been determined that
15.36a tribal licensing authority has established jurisdiction to license the program or service.

16.1    Sec. 4. Minnesota Statutes 2010, section 245A.04, subdivision 11, is amended to read:
16.2    Subd. 11. Education program; permitted ages, additional requirement. (a) The
16.3education program offered in a residential or nonresidential program, except for child care,
16.4foster care, or services for adults, must be approved by the commissioner of education
16.5before the commissioner of human services may grant a license to the program. Except for
16.6foster care, the commissioner of human services may not grant a license to a residential
16.7facility for the placement of children before the commissioner has received documentation
16.8of approval of the educational program from the commissioner of education according to
16.9section 125A.515.
16.10    (b) A residential program licensed by the commissioner of human services under
16.11Minnesota Rules, parts 2960.0010 to 2960.0710, may serve persons through the age of
16.1219 when:
16.13    (1) the admission or continued stay is necessary for a person to complete a secondary
16.14school program or its equivalent, or it is necessary to facilitate a transition period after
16.15completing the secondary school program or its equivalent for up to four months in order
16.16for the resident to obtain other living arrangements;
16.17    (2) the facility develops policies, procedures, and plans required under section
16.18245A.65;
16.19    (3) the facility documents an assessment of the 18- or 19-year-old person's risk
16.20of victimizing children residing in the facility, and develops necessary risk reduction
16.21measures, including sleeping arrangements, to minimize any risk of harm to children; and
16.22    (4) notwithstanding the license holder's target population age range, whenever
16.23persons age 18 or 19 years old are receiving residential services, the age difference among
16.24residents may not exceed five years.
16.25    (c) A child foster care program licensed by the commissioner under Minnesota
16.26Rules, chapter 2960, may serve persons who are over the age of 18 but under the age
16.27of 21 when the person is:
16.28(1) completing secondary education or a program leading to an equivalent credential;
16.29(2) enrolled in an institution which provides postsecondary or vocational education;
16.30(3) participating in a program or activity designed to promote, or remove barriers to,
16.31employment;
16.32(4) employed for at least 80 hours per month; or
16.33(5) incapable of doing any of the activities described in clauses (1) to (4) due to a
16.34medical condition, which incapability is supported by regularly updated information in the
16.35case plan of the person.
17.1(c) In addition to the requirements in paragraph (b), a residential program licensed
17.2by the commissioner of human services under Minnesota Rules, parts 2960.0010 to
17.32960.0710, may serve persons under the age of 21 provided the facility complies with the
17.4following requirements:
17.5(1) for each person age 18 and older served at the program, the program must assess
17.6and document the person's risk of victimizing other residents residing in the facility, and
17.7based on the assessment, the facility must develop and implement necessary measures
17.8to minimize any risk of harm to other residents, including making arrangements for
17.9appropriate sleeping arrangements; and
17.10(2) the program must assure that the services and living arrangements provided to all
17.11residents are suitable to the age and functioning of the residents, including separation of
17.12services, staff supervision, and other program operations as appropriate.
17.13(d) Nothing in this paragraph subdivision precludes the license holder from seeking
17.14other variances under subdivision 9.

17.15    Sec. 5. Minnesota Statutes 2010, section 245A.04, is amended by adding a subdivision
17.16to read:
17.17    Subd. 16. Program policy; reporting a death in the program. Unless such
17.18reporting is otherwise already required under statute or rule, programs licensed under this
17.19chapter must have a written policy for reporting the death of an individual served by the
17.20program to the commissioner of human services. Within 24 hours of receiving knowledge
17.21of the death of an individual served by the program, the license holder shall notify the
17.22commissioner of the death. If the license holder has reason to know that the death has
17.23been reported to the commissioner, a subsequent report is not required.

17.24    Sec. 6. Minnesota Statutes 2010, section 245A.05, is amended to read:
17.25245A.05 DENIAL OF APPLICATION.
17.26(a) The commissioner may deny a license if an applicant or controlling individual:
17.27(1) fails to submit a substantially complete application after receiving notice from
17.28the commissioner under section 245A.04, subdivision 1;
17.29(1) (2) fails to comply with applicable laws or rules;
17.30(2) (3) knowingly withholds relevant information from or gives false or misleading
17.31information to the commissioner in connection with an application for a license or during
17.32an investigation;
17.33(3) (4) has a disqualification that has not been set aside under section 245C.22
17.34and no variance has been granted;
18.1(4) (5) has an individual living in the household who received a background study
18.2under section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification
18.3that has not been set aside under section 245C.22, and no variance has been granted; or
18.4(5) (6) is associated with an individual who received a background study under
18.5section 245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised
18.6access to children or vulnerable adults, and who has a disqualification that has not been set
18.7aside under section 245C.22, and no variance has been granted.; or
18.8(7) fails to comply with section 245A.04, subdivision 1, paragraph (f) or (g).
18.9(b) An applicant whose application has been denied by the commissioner must be
18.10given notice of the denial. Notice must be given by certified mail or personal service.
18.11The notice must state the reasons the application was denied and must inform the
18.12applicant of the right to a contested case hearing under chapter 14 and Minnesota Rules,
18.13parts 1400.8505 to 1400.8612. The applicant may appeal the denial by notifying the
18.14commissioner in writing by certified mail or personal service. If mailed, the appeal must
18.15be postmarked and sent to the commissioner within 20 calendar days after the applicant
18.16received the notice of denial. If an appeal request is made by personal service, it must
18.17be received by the commissioner within 20 calendar days after the applicant received the
18.18notice of denial. Section 245A.08 applies to hearings held to appeal the commissioner's
18.19denial of an application.

18.20    Sec. 7. Minnesota Statutes 2010, section 245A.07, subdivision 3, is amended to read:
18.21    Subd. 3. License suspension, revocation, or fine. (a) The commissioner may
18.22suspend or revoke a license, or impose a fine if:
18.23(1) a license holder fails to comply fully with applicable laws or rules, if;
18.24(2) a license holder, a controlling individual, or an individual living in the household
18.25where the licensed services are provided or is otherwise subject to a background study has
18.26a disqualification which has not been set aside under section 245C.22, or if;
18.27(3) a license holder knowingly withholds relevant information from or gives false
18.28or misleading information to the commissioner in connection with an application for
18.29a license, in connection with the background study status of an individual, during an
18.30investigation, or regarding compliance with applicable laws or rules.; or
18.31(4) after July 1, 2012, and upon request by the commissioner, a license holder fails
18.32to submit the information required of an applicant under section 245A.04, subdivision 1,
18.33paragraph (f) or (g).
18.34A license holder who has had a license suspended, revoked, or has been ordered
18.35to pay a fine must be given notice of the action by certified mail or personal service. If
19.1mailed, the notice must be mailed to the address shown on the application or the last
19.2known address of the license holder. The notice must state the reasons the license was
19.3suspended, revoked, or a fine was ordered.
19.4    (b) If the license was suspended or revoked, the notice must inform the license
19.5holder of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts
19.61400.8505 to 1400.8612. The license holder may appeal an order suspending or revoking
19.7a license. The appeal of an order suspending or revoking a license must be made in writing
19.8by certified mail or personal service. If mailed, the appeal must be postmarked and sent to
19.9the commissioner within ten calendar days after the license holder receives notice that the
19.10license has been suspended or revoked. If a request is made by personal service, it must be
19.11received by the commissioner within ten calendar days after the license holder received
19.12the order. Except as provided in subdivision 2a, paragraph (c), if a license holder submits
19.13a timely appeal of an order suspending or revoking a license, the license holder may
19.14continue to operate the program as provided in section 245A.04, subdivision 7, paragraphs
19.15(g) and (h), until the commissioner issues a final order on the suspension or revocation.
19.16    (c)(1) If the license holder was ordered to pay a fine, the notice must inform the
19.17license holder of the responsibility for payment of fines and the right to a contested case
19.18hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal
19.19of an order to pay a fine must be made in writing by certified mail or personal service. If
19.20mailed, the appeal must be postmarked and sent to the commissioner within ten calendar
19.21days after the license holder receives notice that the fine has been ordered. If a request is
19.22made by personal service, it must be received by the commissioner within ten calendar
19.23days after the license holder received the order.
19.24    (2) The license holder shall pay the fines assessed on or before the payment date
19.25specified. If the license holder fails to fully comply with the order, the commissioner
19.26may issue a second fine or suspend the license until the license holder complies. If the
19.27license holder receives state funds, the state, county, or municipal agencies or departments
19.28responsible for administering the funds shall withhold payments and recover any payments
19.29made while the license is suspended for failure to pay a fine. A timely appeal shall stay
19.30payment of the fine until the commissioner issues a final order.
19.31    (3) A license holder shall promptly notify the commissioner of human services,
19.32in writing, when a violation specified in the order to forfeit a fine is corrected. If upon
19.33reinspection the commissioner determines that a violation has not been corrected as
19.34indicated by the order to forfeit a fine, the commissioner may issue a second fine. The
19.35commissioner shall notify the license holder by certified mail or personal service that a
20.1second fine has been assessed. The license holder may appeal the second fine as provided
20.2under this subdivision.
20.3    (4) Fines shall be assessed as follows: the license holder shall forfeit $1,000 for
20.4each determination of maltreatment of a child under section 626.556 or the maltreatment
20.5of a vulnerable adult under section 626.557 for which the license holder is determined
20.6responsible for the maltreatment under section 626.556, subdivision 10e, paragraph (i),
20.7or 626.557, subdivision 9c, paragraph (c); the license holder shall forfeit $200 for each
20.8occurrence of a violation of law or rule governing matters of health, safety, or supervision,
20.9including but not limited to the provision of adequate staff-to-child or adult ratios, and
20.10failure to comply with background study requirements under chapter 245C; and the license
20.11holder shall forfeit $100 for each occurrence of a violation of law or rule other than those
20.12subject to a $1,000 or $200 fine above. For purposes of this section, "occurrence" means
20.13each violation identified in the commissioner's fine order. Fines assessed against a license
20.14holder that holds a license to provide the residential-based habilitation services, as defined
20.15under section 245B.02, subdivision 20, and a license to provide foster care, may be
20.16assessed against both licenses for the same occurrence, but the combined amount of the
20.17fines shall not exceed the amount specified in this clause for that occurrence.
20.18    (5) When a fine has been assessed, the license holder may not avoid payment by
20.19closing, selling, or otherwise transferring the licensed program to a third party. In such an
20.20event, the license holder will be personally liable for payment. In the case of a corporation,
20.21each controlling individual is personally and jointly liable for payment.
20.22(d) Except for background study violations involving the failure to comply with an
20.23order to immediately remove an individual or an order to provide continuous, direct
20.24supervision, the commissioner shall not issue a fine under paragraph (c) relating to a
20.25background study violation to a license holder who self-corrects a background study
20.26violation before the commissioner discovers the violation. A license holder who has
20.27previously exercised the provisions of this paragraph to avoid a fine for a background
20.28study violation may not avoid a fine for a subsequent background study violation unless at
20.29least 365 days have passed since the license holder self-corrected the earlier background
20.30study violation.

20.31    Sec. 8. Minnesota Statutes 2010, section 245A.14, subdivision 11, is amended to read:
20.32    Subd. 11. Swimming pools; family day care and group family day care
20.33providers. (a) This subdivision governs swimming pools located at family day care
20.34or group family day care homes licensed under Minnesota Rules, chapter 9502. This
20.35subdivision does not apply to portable wading pools or whirlpools located at family day
21.1care or group family day care homes licensed under Minnesota Rules, chapter 9502. For a
21.2provider to be eligible to allow a child cared for at the family day care or group family day
21.3care home to use the swimming pool located at the home, the provider must not have had
21.4a licensing sanction under section 245A.07 or a correction order or conditional license
21.5under section 245A.06 relating to the supervision or health and safety of children during
21.6the prior 24 months, and must satisfy the following requirements:
21.7(1) notify the county agency before initial use of the swimming pool and annually,
21.8thereafter;
21.9(2) obtain written consent from a child's parent or legal guardian allowing the child
21.10to use the swimming pool and renew the parent or legal guardian's written consent at least
21.11annually. The written consent must include a statement that the parent or legal guardian
21.12has received and read materials provided by the Department of Health to the Department
21.13of Human Services for distribution to all family day care or group family day care homes
21.14and the general public on the human services Internet Web site related to the risk of disease
21.15transmission as well as other health risks associated with swimming pools. The written
21.16consent must also include a statement that the Department of Health, Department of
21.17Human Services, and county agency will not monitor or inspect the provider's swimming
21.18pool to ensure compliance with the requirements in this subdivision;
21.19(3) enter into a written contract with a child's parent or legal guardian and renew the
21.20written contract annually. The terms of the written contract must specify that the provider
21.21agrees to perform all of the requirements in this subdivision;
21.22(4) attend and successfully complete a swimming pool operator training course once
21.23every five years. Acceptable training courses are:
21.24(i) the National Swimming Pool Foundation Certified Pool Operator course;
21.25(ii) the National Spa and Pool Institute Tech I and Tech II courses (both required); or
21.26(iii) the National Recreation and Park Association Aquatic Facility Operator course;
21.27(5) require a caregiver trained in first aid and adult and child cardiopulmonary
21.28resuscitation to supervise and be present at the swimming pool with any children in the
21.29pool;
21.30(6) toilet all potty-trained children before they enter the swimming pool;
21.31(7) require all children who are not potty-trained to wear swim diapers while in
21.32the swimming pool;
21.33(8) if fecal material enters the swimming pool water, add three times the normal
21.34shock treatment to the pool water to raise the chlorine level to at least 20 parts per million,
21.35and close the pool to swimming for the 24 hours following the entrance of fecal material
22.1into the water or until the water pH and disinfectant concentration levels have returned to
22.2the standards specified in clause (10), whichever is later;
22.3(9) prevent any person from entering the swimming pool who has an open wound or
22.4any person who has or is suspected of having a communicable disease;
22.5(10) maintain the swimming pool water at a pH of not less than 7.2 and not more
22.6than 8.0, maintain the disinfectant concentration between two and five parts per million for
22.7chlorine or between 2.3 and 4.5 parts per million for bromine, and maintain a daily record
22.8of the swimming pool's operation with pH and disinfectant concentration readings on days
22.9when children cared for at the family day care or group family day care home are present;
22.10(11) have a disinfectant feeder or feeders;
22.11(12) have a recirculation system that will clarify and disinfect the swimming pool
22.12volume of water in ten hours or less;
22.13(13) maintain the swimming pool's water clarity so that an object on the pool floor at
22.14the pool's deepest point is easily visible;
22.15(14) have two or more suction lines in the swimming pool comply with the provisions
22.16of the Abigail Taylor Pool Safety Act in section 144.1222, subdivisions 1c and 1d;
22.17(15) have in place and enforce written safety rules and swimming pool policies;
22.18(16) have in place at all times a safety rope that divides the shallow and deep
22.19portions of the swimming pool;
22.20(17) satisfy any existing local ordinances regarding swimming pool installation,
22.21decks, and fencing;
22.22(18) maintain a water temperature of not more than 104 degrees Fahrenheit and
22.23not less than 70 degrees Fahrenheit; and
22.24(19) for lifesaving equipment, have a United States Coast Guard-approved life
22.25ring attached to a rope, an exit ladder, and a shepherd's hook available at all times to the
22.26caregiver supervising the swimming pool.
22.27The requirements of clauses (5), (16), and (18) only apply at times when children
22.28cared for at the family day care or group family day care home are present.
22.29(b) A violation of paragraph (a), clauses (1) to (3), is grounds for a sanction under
22.30section 245A.07 or a correction order or conditional license under section 245A.06.
22.31(c) If a provider under this subdivision receives a licensing sanction under section
22.32245A.07 or a correction order or a conditional license under section 245A.06 relating to
22.33the supervision or health and safety of children, the provider is prohibited from allowing a
22.34child cared for at the family day care or group family day care home to continue to use
22.35the swimming pool located at the home.

23.1    Sec. 9. Minnesota Statutes 2010, section 245A.146, subdivision 2, is amended to read:
23.2    Subd. 2. Documentation requirement for license holders. (a) Effective January
23.31, 2006, All licensed child care providers, children's residential facilities, chemical
23.4dependency treatment programs with children in care, and residential habilitation
23.5programs serving children with developmental disabilities must maintain the following
23.6documentation for every crib used by or that is accessible to any child in care:
23.7(1) the crib's brand name; and
23.8(2) the crib's model number.
23.9(b) Any crib for which the license holder does not have the documentation required
23.10under paragraph (a) must not be used by or be accessible to children in care.
23.11(c) Effective December 28, 2012, the licensed program must maintain documentation
23.12to show that every full-size and non-full-size crib that is used by or is accessible to any
23.13child in care is compliant with federal crib standards under Code of Federal Regulations,
23.14title 16, part 1219, for full-size baby cribs, or Code of Federal Regulations, title 16, part
23.151220, for non-full-size baby cribs. Documentation must include verification that each crib
23.16was either purchased from a retailer on or after June 28, 2011, or a certificate from the
23.17manufacturer or retailer verifying compliance with Code of Federal Regulations, title 16,
23.18part 1219 or part 1220 for each crib purchased before June 28, 2011.

23.19    Sec. 10. Minnesota Statutes 2010, section 245A.146, subdivision 3, is amended to read:
23.20    Subd. 3. License holder documentation of cribs. (a) Annually, from the date
23.21printed on the license, all license holders shall check all their cribs' brand names and
23.22model numbers against the United States Consumer Product Safety Commission Web
23.23site listing of unsafe cribs.
23.24(b) The license holder shall maintain written documentation to be reviewed on site
23.25for each crib showing that the review required in paragraph (a) has been completed, and
23.26which of the following conditions applies:
23.27(1) the crib was not identified as unsafe on the United States Consumer Product
23.28Safety Commission Web site;
23.29(2) the crib was identified as unsafe on the United States Consumer Product Safety
23.30Commission Web site, but the license holder has taken the action directed by the United
23.31States Consumer Product Safety Commission to make the crib safe; or
23.32(3) the crib was identified as unsafe on the United States Consumer Product Safety
23.33Commission Web site, and the license holder has removed the crib so that it is no longer
23.34used by or accessible to children in care.
24.1(c) Documentation of the review completed under this subdivision shall be
24.2maintained by the license holder on site and made available to parents or guardians of
24.3children in care and the commissioner.
24.4(d) Notwithstanding Minnesota Rules, part 9502.0425, a family child care provider
24.5that complies with this section may use a mesh-sided playpen or crib that has not been
24.6identified as unsafe on the United States Consumer Product Safety Commission Web site
24.7for the care or sleeping of infants.

24.8    Sec. 11. Minnesota Statutes 2010, section 245A.18, subdivision 1, is amended to read:
24.9    Subdivision 1. Seat belt and child passenger restraint system use. When a child
24.10is transported, a license holder must comply with all seat belt and child passenger restraint
24.11system requirements under section sections 169.685 and 169.686.

24.12    Sec. 12. [245A.191] PROVIDER ELIGIBILITY FOR PAYMENTS FROM THE
24.13CHEMICAL DEPENDENCY CONSOLIDATED TREATMENT FUND.
24.14(a) When a chemical dependency treatment provider licensed under Minnesota
24.15Rules, parts 2960.0430 to 2960.0490 or 9530.6405 to 9530.6505, agrees to meet the
24.16applicable requirements under section 254B.05, subdivision 5, paragraphs (b), clauses
24.17(1) to (4) and (6), (c), and (d), to be eligible for enhanced funding from the chemical
24.18dependency consolidated treatment fund, the applicable requirements under section
24.19254B.05 are also licensing requirements that may be monitored for compliance through
24.20licensing investigations and licensing inspections.
24.21    (b) Noncompliance with the requirements identified under paragraph (a) may
24.22result in:
24.23    (1) a correction order or a conditional license under section 245A.06, or sanctions
24.24under section 245A.07;
24.25    (2) nonpayment of claims submitted by the license holder for public program
24.26reimbursement;
24.27    (3) recovery of payments made for the service;
24.28    (4) disenrollment in the public payment program; or
24.29    (5) other administrative, civil, or criminal penalties as provided in law.

24.30    Sec. 13. Minnesota Statutes 2010, section 245A.22, subdivision 2, is amended to read:
24.31    Subd. 2. Admission. (a) The license holder shall accept as clients in the independent
24.32living assistance program only youth ages 16 to 21 who are in out-of-home placement,
24.33leaving out-of-home placement, at risk of becoming homeless, or homeless.
25.1(b) Youth who have current drug or alcohol problems, a recent history of violent
25.2behaviors, or a mental health disorder or issue that is not being resolved through
25.3counseling or treatment are not eligible to receive the services described in subdivision 1.
25.4(c) Youth who are not employed, participating in employment training, or enrolled
25.5in an academic program are not eligible to receive transitional housing or independent
25.6living assistance.
25.7(d) The commissioner may grant a variance under section 245A.04, subdivision 9,
25.8to requirements in this section.

25.9    Sec. 14. Minnesota Statutes 2010, section 245A.66, subdivision 2, is amended to read:
25.10    Subd. 2. Child care centers; risk reduction plan. (a) Child care centers licensed
25.11under this chapter and Minnesota Rules, chapter 9503, must develop a risk reduction plan
25.12that assesses identifies the general risks to children served by the child care center. The
25.13license holder must establish procedures to minimize identified risks, train staff on the
25.14procedures, and annually review the procedures.
25.15(b) The risk reduction plan must include an assessment of risk to children the
25.16center serves or intends to serve and identify specific risks based on the outcome of the
25.17assessment. The assessment of risk must be based on the following:
25.18(1) an assessment of the risk presented by the vulnerability of the children served,
25.19including an evaluation of the following factors: age, developmental functioning, and the
25.20physical and emotional health of children the program serves or intends to serve;
25.21(2) an assessment of the risks presented by the physical plant where the licensed
25.22services are provided, including an evaluation of the following factors: the condition and
25.23design of the facility and its outdoor space, bathrooms, storage areas, and accessibility
25.24of medications and cleaning products that are harmful to children when children are not
25.25supervised, doors where finger pinching may occur, and the existence of areas that are
25.26difficult to supervise; and
25.27(3) (2) an assessment of the risks presented by the environment for each facility and
25.28for each site, including an evaluation of the following factors: the type of grounds and
25.29terrain surrounding the building and the proximity to hazards, busy roads, and publicly
25.30accessed businesses.
25.31(c) The risk reduction plan must include a statement of measures that will be taken to
25.32minimize the risk of harm presented to children for each risk identified in the assessment
25.33required under paragraph (b) related to the physical plan and environment. At a minimum,
25.34the risk reduction plan stated measures must address the following: include
26.1(1) a general description of supervision, programming, and the development and
26.2implementation of specific policies and procedures or reference to the existing policies
26.3and procedures developed and implemented to address that minimize the risks identified
26.4in the assessment required under paragraph (b) related to the general population served,
26.5the physical plant, and environment;.
26.6(2) (d) In addition to any program-specific risks identified in paragraph (b), the plan
26.7must include development and implementation of specific policies and procedures or refer
26.8to existing policies and procedures developed and implemented to that minimize the risk
26.9of harm or injury to children, including:
26.10(i) (1) closing children's fingers in doors, including cabinet doors;
26.11(ii) (2) leaving children in the community without supervision;
26.12(iii) (3) children leaving the facility without supervision;
26.13(iv) (4) caregiver dislocation of children's elbows;
26.14(v) (5) burns from hot food or beverages, whether served to children or being
26.15consumed by caregivers, and the devices used to warm food and beverages;
26.16(vi) (6) injuries from equipment, such as scissors and glue guns;
26.17(vii) (7) sunburn;
26.18(viii) (8) feeding children foods to which they are allergic;
26.19(ix) (9) children falling from changing tables; and
26.20(x) (10) children accessing dangerous items or chemicals or coming into contact
26.21with residue from harmful cleaning products; and.
26.22(3) (e) The plan shall prohibit the accessibility of hazardous items to children.
26.23(f) The plan must include specific policies and procedures to ensure adequate
26.24supervision of children at all times as defined under section 245A.02, subdivision 18, with
26.25particular emphasis on:
26.26(1) times when children are transitioned from one area within the facility to another;
26.27(2) nap-time supervision, including infant crib rooms as specified under section
26.28245A.02, subdivision 18, which requires that when an infant is placed in a crib to sleep,
26.29supervision occurs when a staff person is within sight or hearing of the infant. When
26.30supervision of a crib room is provided by sight or hearing, the center must have a plan to
26.31address the other supervision components;
26.32(3) child drop-off and pick-up times;
26.33(4) supervision during outdoor play and on community activities, including but not
26.34limited to field trips and neighborhood walks; and
26.35(5) supervision of children in hallways.

27.1    Sec. 15. Minnesota Statutes 2010, section 245A.66, subdivision 3, is amended to read:
27.2    Subd. 3. Orientation to risk reduction plan and annual review of plan. (a) The
27.3license holder shall ensure that all mandated reporters, as defined in section 626.556,
27.4subdivision 3, who are under the control of the license holder, receive an orientation to
27.5the risk reduction plan prior to first providing unsupervised direct contact services, as
27.6defined in section 245C.02, subdivision 11, to children, not to exceed 14 days from the
27.7first supervised direct contact, and annually thereafter. The license holder must document
27.8the orientation to the risk reduction plan in the mandated reporter's personnel records.
27.9(b) The license holder must review the risk reduction plan annually and document
27.10the annual review. When conducting the review, the license holder must consider incidents
27.11that have occurred in the center since the last review, including:
27.12(1) the assessment factors in the plan;
27.13(2) the internal reviews conducted under this section, if any;
27.14(3) substantiated maltreatment findings, if any; and
27.15(4) incidents that caused injury or harm to a child, if any, that occurred since the
27.16last review.
27.17Following any change to the risk reduction plan, the license holder must inform mandated
27.18reporters, under the control of the license holder, of the changes in the risk reduction plan,
27.19and document that the mandated reporters were informed of the changes.

27.20    Sec. 16. Minnesota Statutes 2010, section 245C.03, subdivision 1, is amended to read:
27.21    Subdivision 1. Licensed programs. (a) The commissioner shall conduct a
27.22background study on:
27.23(1) the person or persons applying for a license;
27.24(2) an individual age 13 and over living in the household where the licensed program
27.25will be provided who is not receiving licensed services from the program;
27.26(3) current or prospective employees or contractors of the applicant who will have
27.27direct contact with persons served by the facility, agency, or program;
27.28(4) volunteers or student volunteers who will have direct contact with persons served
27.29by the program to provide program services if the contact is not under the continuous,
27.30direct supervision by an individual listed in clause (1) or (3);
27.31(5) an individual age ten to 12 living in the household where the licensed services
27.32will be provided when the commissioner has reasonable cause;
27.33(6) an individual who, without providing direct contact services at a licensed
27.34program, may have unsupervised access to children or vulnerable adults receiving services
27.35from a program, when the commissioner has reasonable cause; and
28.1(7) all managerial officials as defined under section 245A.02, subdivision 5a.
28.2(b) For family child foster care settings, a short-term substitute caregiver providing
28.3direct contact services for a child for less than 72 hours of continuous care is not required
28.4to receive a background study under this chapter.

28.5    Sec. 17. Minnesota Statutes 2010, section 245C.04, subdivision 1, is amended to read:
28.6    Subdivision 1. Licensed programs. (a) The commissioner shall conduct a
28.7background study of an individual required to be studied under section 245C.03,
28.8subdivision 1 , at least upon application for initial license for all license types.
28.9    (b) The commissioner shall conduct a background study of an individual required
28.10to be studied under section 245C.03, subdivision 1, at reapplication for a license for
28.11family child care.
28.12    (c) The commissioner is not required to conduct a study of an individual at the time
28.13of reapplication for a license if the individual's background study was completed by the
28.14commissioner of human services for an adult foster care license holder that is also:
28.15    (1) registered under chapter 144D; or
28.16    (2) licensed to provide home and community-based services to people with
28.17disabilities at the foster care location and the license holder does not reside in the foster
28.18care residence; and
28.19    (3) the following conditions are met:
28.20    (i) a study of the individual was conducted either at the time of initial licensure or
28.21when the individual became affiliated with the license holder;
28.22    (ii) the individual has been continuously affiliated with the license holder since
28.23the last study was conducted; and
28.24    (iii) the last study of the individual was conducted on or after October 1, 1995.
28.25    (d) From July 1, 2007, to June 30, 2009, the commissioner of human services shall
28.26conduct a study of an individual required to be studied under section 245C.03, at the
28.27time of reapplication for a child foster care license. The county or private agency shall
28.28collect and forward to the commissioner the information required under section 245C.05,
28.29subdivisions 1, paragraphs (a) and (b), and 5, paragraphs (a) and (b). The background
28.30study conducted by the commissioner of human services under this paragraph must
28.31include a review of the information required under section 245C.08, subdivisions 1,
28.32paragraph (a), clauses (1) to (5), 3, and 4.
28.33    (e) The commissioner of human services shall conduct a background study of an
28.34individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2)
28.35to (6), who is newly affiliated with a child foster care license holder. The county or
29.1private agency shall collect and forward to the commissioner the information required
29.2under section 245C.05, subdivisions 1 and 5. The background study conducted by the
29.3commissioner of human services under this paragraph must include a review of the
29.4information required under section 245C.08, subdivisions 1, 3, and 4.
29.5    (f) From January 1, 2010, to December 31, 2012, unless otherwise specified in
29.6paragraph (c), the commissioner shall conduct a study of an individual required to
29.7be studied under section 245C.03 at the time of reapplication for an adult foster care
29.8or family adult day services license: (1) the county shall collect and forward to the
29.9commissioner the information required under section 245C.05, subdivision 1, paragraphs
29.10(a) and (b), and subdivision 5, paragraphs (a) and (b), for background studies conducted
29.11by the commissioner for all family adult day services and for adult foster care when
29.12the adult foster care license holder resides in the adult foster care or family adult day
29.13services residence; (2) the license holder shall collect and forward to the commissioner
29.14the information required under section 245C.05, subdivisions 1, paragraphs (a) and (b);
29.15and 5, paragraphs (a) and (b), for background studies conducted by the commissioner for
29.16adult foster care when the license holder does not reside in the adult foster care residence;
29.17and (3) the background study conducted by the commissioner under this paragraph must
29.18include a review of the information required under section 245C.08, subdivision 1,
29.19paragraph (a), clauses (1) to (5), and subdivisions 3 and 4.
29.20(g) The commissioner shall conduct a background study of an individual specified
29.21under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly
29.22affiliated with an adult foster care or family adult day services license holder: (1) the
29.23county shall collect and forward to the commissioner the information required under
29.24section 245C.05, subdivision 1, paragraphs (a) and (b), and subdivision 5, paragraphs (a)
29.25and (b), for background studies conducted by the commissioner for all family adult day
29.26services and for adult foster care when the adult foster care license holder resides in
29.27the adult foster care residence; (2) the license holder shall collect and forward to the
29.28commissioner the information required under section 245C.05, subdivisions 1, paragraphs
29.29(a) and (b); and 5, paragraphs (a) and (b), for background studies conducted by the
29.30commissioner for adult foster care when the license holder does not reside in the adult
29.31foster care residence; and (3) the background study conducted by the commissioner under
29.32this paragraph must include a review of the information required under section 245C.08,
29.33subdivision 1 , paragraph (a), and subdivisions 3 and 4.
29.34(h) Applicants for licensure, license holders, and other entities as provided in this
29.35chapter must submit completed background study forms to the commissioner before
30.1individuals specified in section 245C.03, subdivision 1, begin positions allowing direct
30.2contact in any licensed program.
30.3    (i) A license holder must provide the commissioner notice initiate a new background
30.4study through the commissioner's online background study system or through a letter
30.5mailed to the commissioner when:
30.6    (1) an individual returns to a position requiring a background study following an
30.7absence of 45 180 or more consecutive days; or
30.8    (2) a program that discontinued providing licensed direct contact services for 45 180
30.9or more consecutive days begins to provide direct contact licensed services again.
30.10    The license holder shall maintain a copy of the notification provided to
30.11the commissioner under this paragraph in the program's files. If the individual's
30.12disqualification was previously set aside for the license holder's program and the new
30.13background study results in no new information that indicates the individual may pose a
30.14risk of harm to persons receiving services from the license holder, the previous set-aside
30.15shall remain in effect.
30.16    (j) For purposes of this section, a physician licensed under chapter 147 is considered
30.17to be continuously affiliated upon the license holder's receipt from the commissioner of
30.18health or human services of the physician's background study results.
30.19(k) For purposes of family child care, a substitute caregiver must receive repeat
30.20background studies at the time of each license renewal.

30.21    Sec. 18. Minnesota Statutes 2010, section 245C.05, subdivision 1, is amended to read:
30.22    Subdivision 1. Individual studied. (a) The individual who is the subject of the
30.23background study must provide the applicant, license holder, or other entity under section
30.24245C.04 with sufficient information to ensure an accurate study, including:
30.25    (1) the individual's first, middle, and last name and all other names by which the
30.26individual has been known;
30.27    (2) home address, city, and state of residence;
30.28    (3) zip code;
30.29    (4) sex;
30.30    (5) date of birth; and
30.31    (6) Minnesota driver's license number or state identification number; and
30.32    (7) social security number.
30.33    (b) Every subject of a background study conducted or initiated by counties or private
30.34agencies under this chapter must also provide the home address, city, county, and state of
30.35residence for the past five years.
31.1    (c) Every subject of a background study related to private agency adoptions or
31.2related to child foster care licensed through a private agency, who is 18 years of age
31.3or older, shall also provide the commissioner a signed consent for the release of any
31.4information received from national crime information databases to the private agency that
31.5initiated the background study.
31.6    (d) The subject of a background study shall provide fingerprints as required in
31.7subdivision 5, paragraph (c).

31.8    Sec. 19. Minnesota Statutes 2010, section 245C.05, subdivision 2, is amended to read:
31.9    Subd. 2. Applicant, license holder, or other entity. The applicant, license holder,
31.10or other entities as provided in this chapter shall provide verify that the information
31.11collected under subdivision 1 about an individual who is the subject of the background
31.12study is correct and must provide the information on forms or in a format prescribed by
31.13the commissioner.

31.14    Sec. 20. Minnesota Statutes 2010, section 245C.05, is amended by adding a
31.15subdivision to read:
31.16    Subd. 2c. Privacy notice to background study subject. (a) For every background
31.17study, the commissioner's notice to the background study subject required under
31.18section 13.04, subdivision 2, that is provided through the commissioner's electronic
31.19NETStudy system or through the commissioner's background study forms shall include
31.20the information in paragraph (b).
31.21(b) The background study subject shall be informed that any previous background
31.22studies that received a set-aside will be reviewed, and without further contact with the
31.23background study subject, the commissioner may notify the agency that initiated the
31.24subsequent background study:
31.25(1) that the individual has a disqualification that has been set aside for the program
31.26or agency that initiated the study;
31.27(2) the reason for the disqualification; and
31.28(3) information about the decision to set aside the disqualification will be available
31.29to the license holder upon request without the consent of the background study subject.

31.30    Sec. 21. Minnesota Statutes 2010, section 245C.05, subdivision 3, is amended to read:
31.31    Subd. 3. Additional information from individual studied. (a) For purposes of
31.32completing the background study, the commissioner may request the individual's Social
32.1Security number or race. The individual is not required to provide this information to
32.2the commissioner.
32.3    (b) The commissioner may also require additional information if the commissioner
32.4determines the information is necessary to complete the background study. Failure to
32.5provide the required information may result in a disqualification pursuant to section
32.6245C.09 .

32.7    Sec. 22. Minnesota Statutes 2010, section 245C.05, subdivision 4, is amended to read:
32.8    Subd. 4. Electronic transmission. (a) For background studies conducted by the
32.9Department of Human Services, the commissioner shall implement a system for the
32.10electronic transmission of:
32.11    (1) background study information to the commissioner;
32.12    (2) background study results to the license holder;
32.13    (3) background study results to county and private agencies for background studies
32.14conducted by the commissioner for child foster care; and
32.15(4) background study results to county agencies for background studies conducted
32.16by the commissioner for adult foster care and family adult day services.
32.17(b) Unless the commissioner has granted a hardship variance under paragraph (c), a
32.18license holder or an applicant must use the electronic transmission system known as
32.19NETStudy to submit all requests for background studies to the commissioner as required
32.20by this chapter.
32.21(c) A license holder or applicant whose program is located in an area in which
32.22high-speed Internet is inaccessible may request the commissioner to grant a variance to
32.23the electronic transmission requirement.

32.24    Sec. 23. Minnesota Statutes 2010, section 245C.05, subdivision 7, is amended to read:
32.25    Subd. 7. Probation officer and corrections agent. (a) A probation officer or
32.26corrections agent shall notify the commissioner of an individual's conviction if the
32.27individual is:
32.28    (1) has been affiliated with a program or facility regulated by the Department of
32.29Human Services or Department of Health, a facility serving children or youth licensed by
32.30the Department of Corrections, or any type of home care agency or provider of personal
32.31care assistance services within the preceding year; and
32.32    (2) has been convicted of a crime constituting a disqualification under section
32.33245C.14 .
33.1    (b) For the purpose of this subdivision, "conviction" has the meaning given it
33.2in section 609.02, subdivision 5.
33.3    (c) The commissioner, in consultation with the commissioner of corrections, shall
33.4develop forms and information necessary to implement this subdivision and shall provide
33.5the forms and information to the commissioner of corrections for distribution to local
33.6probation officers and corrections agents.
33.7    (d) The commissioner shall inform individuals subject to a background study that
33.8criminal convictions for disqualifying crimes will be reported to the commissioner by the
33.9corrections system.
33.10    (e) A probation officer, corrections agent, or corrections agency is not civilly or
33.11criminally liable for disclosing or failing to disclose the information required by this
33.12subdivision.
33.13    (f) Upon receipt of disqualifying information, the commissioner shall provide the
33.14notice required under section 245C.17, as appropriate, to agencies on record as having
33.15initiated a background study or making a request for documentation of the background
33.16study status of the individual.
33.17    (g) This subdivision does not apply to family child care programs.

33.18    Sec. 24. Minnesota Statutes 2010, section 245C.07, is amended to read:
33.19245C.07 STUDY SUBJECT AFFILIATED WITH MULTIPLE FACILITIES.
33.20    (a) Except for child foster care and adoption agencies, Subject to the conditions in
33.21paragraph (d), when a license holder, applicant, or other entity owns multiple programs or
33.22services that are licensed by the Department of Human Services, Department of Health, or
33.23Department of Corrections, only one background study is required for an individual who
33.24provides direct contact services in one or more of the licensed programs or services if:
33.25    (1) the license holder designates one individual with one address and telephone
33.26number as the person to receive sensitive background study information for the multiple
33.27licensed programs or services that depend on the same background study; and
33.28    (2) the individual designated to receive the sensitive background study information
33.29is capable of determining, upon request of the department, whether a background study
33.30subject is providing direct contact services in one or more of the license holder's programs
33.31or services and, if so, at which location or locations.
33.32    (b) When a license holder maintains background study compliance for multiple
33.33licensed programs according to paragraph (a), and one or more of the licensed programs
33.34closes, the license holder shall immediately notify the commissioner which staff must be
34.1transferred to an active license so that the background studies can be electronically paired
34.2with the license holder's active program.
34.3    (c) When a background study is being initiated by a licensed program or service or a
34.4foster care provider that is also registered under chapter 144D, a study subject affiliated
34.5with multiple licensed programs or services may attach to the background study form a
34.6cover letter indicating the additional names of the programs or services, addresses, and
34.7background study identification numbers.
34.8    When the commissioner receives a notice, the commissioner shall notify each
34.9program or service identified by the background study subject of the study results.
34.10    The background study notice the commissioner sends to the subsequent agencies
34.11shall satisfy those programs' or services' responsibilities for initiating a background study
34.12on that individual.
34.13(d) If a background study was conducted on an individual related to child foster care
34.14and the requirements under paragraph (a) are met, the background study is transferable
34.15across all licensed programs. If a background study was conducted on an individual under
34.16a license other than child foster care and the requirements under paragraph (a) are met, the
34.17background study is transferable to all licensed programs except child foster care.
34.18(e) The provisions of this section that allow a single background study in one
34.19or more licensed programs or services do not apply to background studies submitted
34.20by adoption agencies, supplemental nursing services agencies, personnel agencies,
34.21educational programs, professional services agencies, and unlicensed personal care
34.22provider organizations.

34.23    Sec. 25. Minnesota Statutes 2010, section 245C.08, subdivision 1, is amended to read:
34.24    Subdivision 1. Background studies conducted by Department of Human
34.25Services. (a) For a background study conducted by the Department of Human Services,
34.26the commissioner shall review:
34.27    (1) information related to names of substantiated perpetrators of maltreatment of
34.28vulnerable adults that has been received by the commissioner as required under section
34.29626.557, subdivision 9c , paragraph (j);
34.30    (2) the commissioner's records relating to the maltreatment of minors in licensed
34.31programs, and from findings of maltreatment of minors as indicated through the social
34.32service information system;
34.33    (3) information from juvenile courts as required in subdivision 4 for individuals
34.34listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;
34.35    (4) information from the Bureau of Criminal Apprehension;
35.1    (5) except as provided in clause (6), information from the national crime information
35.2system when the commissioner has reasonable cause as defined under section 245C.05,
35.3subdivision 5; and
35.4    (6) for a background study related to a child foster care application for licensure or
35.5adoptions, the commissioner shall also review:
35.6    (i) information from the child abuse and neglect registry for any state in which the
35.7background study subject has resided for the past five years; and
35.8    (ii) information from national crime information databases, when the background
35.9study subject is 18 years of age or older.
35.10    (b) Notwithstanding expungement by a court, the commissioner may consider
35.11information obtained under paragraph (a), clauses (3) and (4), unless the commissioner
35.12received notice of the petition for expungement and the court order for expungement is
35.13directed specifically to the commissioner. When the commissioner has reasonable cause to
35.14believe that the identity of a background study subject is uncertain, the commissioner shall
35.15require the subject to provide a set of classifiable fingerprints and may review the subject's
35.16national criminal history record information.

35.17    Sec. 26. Minnesota Statutes 2010, section 245C.14, subdivision 2, is amended to read:
35.18    Subd. 2. Disqualification from access. (a) If an individual who is studied under
35.19section 245C.03, subdivision 1, paragraph (a), clauses (2), (5), and (6), is disqualified from
35.20direct contact under subdivision 1, the commissioner shall also disqualify the individual
35.21from access to a person receiving services from the license holder.
35.22(b) No individual who is disqualified following a background study under section
35.23245C.03, subdivision 1 , paragraph (a), clauses (2), (5), and (6), or as provided elsewhere
35.24in statute who is disqualified as a result of this section, may be allowed access to persons
35.25served by the program unless the commissioner has provided written notice under section
35.26245C.17 stating that:
35.27(1) the individual may remain in direct contact during the period in which the
35.28individual may request reconsideration as provided in section 245C.21, subdivision 2;
35.29(2) the commissioner has set aside the individual's disqualification for that
35.30licensed program or entity identified in section 245C.03 as provided in section 245C.22,
35.31subdivision 4 ; or
35.32(3) the license holder has been granted a variance for the disqualified individual
35.33under section 245C.30.

35.34    Sec. 27. Minnesota Statutes 2010, section 245C.16, subdivision 1, is amended to read:
36.1    Subdivision 1. Determining immediate risk of harm. (a) If the commissioner
36.2determines that the individual studied has a disqualifying characteristic, the commissioner
36.3shall review the information immediately available and make a determination as to the
36.4subject's immediate risk of harm to persons served by the program where the individual
36.5studied will have direct contact with, or access to, people receiving services.
36.6    (b) The commissioner shall consider all relevant information available, including the
36.7following factors in determining the immediate risk of harm:
36.8    (1) the recency of the disqualifying characteristic;
36.9    (2) the recency of discharge from probation for the crimes;
36.10    (3) the number of disqualifying characteristics;
36.11    (4) the intrusiveness or violence of the disqualifying characteristic;
36.12    (5) the vulnerability of the victim involved in the disqualifying characteristic;
36.13    (6) the similarity of the victim to the persons served by the program where the
36.14individual studied will have direct contact;
36.15    (7) whether the individual has a disqualification from a previous background study
36.16that has not been set aside; and
36.17    (8) if the individual has a disqualification which may not be set aside because it is
36.18a permanent bar under section 245C.24, subdivision 1, the commissioner may order the
36.19immediate removal of the individual from any position allowing direct contact with, or
36.20access to, persons receiving services from the program.
36.21    (c) This section does not apply when the subject of a background study is regulated
36.22by a health-related licensing board as defined in chapter 214, and the subject is determined
36.23to be responsible for substantiated maltreatment under section 626.556 or 626.557.
36.24    (d) This section does not apply to a background study related to an initial application
36.25for a child foster care license.
36.26(e) This section does not apply to a background study that is also subject to the
36.27requirements under section 256B.0659, subdivisions 11 and 13, for a personal care
36.28assistant or a qualified professional as defined in section 256B.0659, subdivision 1.
36.29    (e) (f) If the commissioner has reason to believe, based on arrest information or an
36.30active maltreatment investigation, that an individual poses an imminent risk of harm to
36.31persons receiving services, the commissioner may order that the person be continuously
36.32supervised or immediately removed pending the conclusion of the maltreatment
36.33investigation or criminal proceedings.

36.34    Sec. 28. Minnesota Statutes 2010, section 245C.17, subdivision 2, is amended to read:
37.1    Subd. 2. Disqualification notice sent to subject. (a) If the information in the study
37.2indicates the individual is disqualified from direct contact with, or from access to, persons
37.3served by the program, the commissioner shall disclose to the individual studied:
37.4    (1) the information causing disqualification;
37.5    (2) instructions on how to request a reconsideration of the disqualification;
37.6    (3) an explanation of any restrictions on the commissioner's discretion to set aside
37.7the disqualification under section 245C.24, when applicable to the individual;
37.8(4) a statement that, if the individual's disqualification is set-aside under section
37.9245C.22, the applicant, license holder, or other entity that initiated the background study
37.10will be provided with the reason for the individual's disqualification and an explanation
37.11that the factors under section 245C.22, subdivision 4, which were the basis of the decision
37.12to set aside the disqualification shall be made available to the license holder upon request
37.13without the consent of the subject of the background study;
37.14    (4) (5) a statement indicating that if the individual's disqualification is set aside or
37.15the facility is granted a variance under section 245C.30, the individual's identity and the
37.16reason for the individual's disqualification will become public data under section 245C.22,
37.17subdivision 7 , when applicable to the individual; and
37.18(6) a statement that when a subsequent background study is initiated on the
37.19individual following a set aside of the individual's disqualification, and the commissioner
37.20makes a determination under section 245C.22, subdivision 5, paragraph (b), that the
37.21previous set-aside applies to the subsequent background study, the applicant, license
37.22holder, or other entity that initiated the background study will be informed in the notice
37.23under section 245C.22, subdivision 5, paragraph (c):
37.24(i) of the reason for the individual's disqualification;
37.25(ii) that the individual's disqualification is set aside for that program or agency; and
37.26(iii) that information about the factors under section 245C.22, subdivision 4, that
37.27were the basis of the decision to set aside the disqualification are available to the license
37.28holder upon request without the consent of the background study subject; and
37.29    (5) (7) the commissioner's determination of the individual's immediate risk of harm
37.30under section 245C.16.
37.31    (b) If the commissioner determines under section 245C.16 that an individual poses
37.32an imminent risk of harm to persons served by the program where the individual will have
37.33direct contact with, or access to, people receiving services, the commissioner's notice must
37.34include an explanation of the basis of this determination.
37.35    (c) If the commissioner determines under section 245C.16 that an individual studied
37.36does not pose a risk of harm that requires immediate removal, the individual shall be
38.1informed of the conditions under which the agency that initiated the background study
38.2may allow the individual to have direct contact with, or access to, people receiving
38.3services, as provided under subdivision 3.

38.4    Sec. 29. Minnesota Statutes 2010, section 245C.22, subdivision 5, is amended to read:
38.5    Subd. 5. Scope of set-aside. (a) If the commissioner sets aside a disqualification
38.6under this section, the disqualified individual remains disqualified, but may hold a license
38.7and have direct contact with or access to persons receiving services. Except as provided
38.8in paragraph (b), the commissioner's set-aside of a disqualification is limited solely
38.9to the licensed program, applicant, or agency specified in the set aside notice under
38.10section 245C.23, unless otherwise specified in the notice. For personal care provider
38.11organizations, the commissioner's set-aside may further be limited to a specific individual
38.12who is receiving services. For new background studies required under section 245C.04,
38.13subdivision 1, paragraph (i), if an individual's disqualification was previously set aside for
38.14the license holder's program and the new background study results in no new information
38.15that indicates the individual may pose a risk of harm to persons receiving services from
38.16the license holder, the previous set-aside shall remain in effect.
38.17(b) If the commissioner has previously set aside an individual's disqualification
38.18for one or more programs or agencies, and the individual is the subject of a subsequent
38.19background study for a different program or agency, the commissioner shall determine
38.20whether the disqualification is set aside for the program or agency that initiated the
38.21subsequent background study. A notice of a set-aside under paragraph (c) shall be issued
38.22within 15 working days if all of the following criteria are met:
38.23(1) the subsequent background study was initiated in connection with a program
38.24licensed or regulated under the same provisions of law and rule for at least one program
38.25for which the individual's disqualification was previously set aside by the commissioner;
38.26(2) the individual is not disqualified for an offense specified in section 245C.15,
38.27subdivision 1 or 2;
38.28(3) the commissioner has received no new information to indicate that the individual
38.29may pose a risk of harm to any person served by the program; and
38.30(4) the previous set aside was not limited to a specific person receiving services.
38.31(c) When a disqualification is set aside under paragraph (b), the notice of background
38.32study results issued under section 245C.17, in addition to the requirements under section
38.33245C.17, shall state that the disqualification is set aside for the program or agency that
38.34initiated the subsequent background study. The notice must inform the individual that the
39.1individual may request reconsideration of the disqualification under section 245C.21 on
39.2the basis that the information used to disqualify the individual is incorrect.

39.3    Sec. 30. Minnesota Statutes 2010, section 245C.23, subdivision 2, is amended to read:
39.4    Subd. 2. Commissioner's notice of disqualification that is not set aside. (a) The
39.5commissioner shall notify the license holder of the disqualification and order the license
39.6holder to immediately remove the individual from any position allowing direct contact
39.7with persons receiving services from the license holder if:
39.8    (1) the individual studied does not submit a timely request for reconsideration
39.9under section 245C.21;
39.10    (2) the individual submits a timely request for reconsideration, but the commissioner
39.11does not set aside the disqualification for that license holder under section 245C.22;
39.12    (3) an individual who has a right to request a hearing under sections 245C.27 and
39.13256.045 , or 245C.28 and chapter 14 for a disqualification that has not been set aside, does
39.14not request a hearing within the specified time; or
39.15    (4) an individual submitted a timely request for a hearing under sections 245C.27
39.16and 256.045, or 245C.28 and chapter 14, but the commissioner does not set aside the
39.17disqualification under section 245A.08, subdivision 5, or 256.045.
39.18    (b) If the commissioner does not set aside the disqualification under section 245C.22,
39.19and the license holder was previously ordered under section 245C.17 to immediately
39.20remove the disqualified individual from direct contact with persons receiving services or
39.21to ensure that the individual is under continuous, direct supervision when providing direct
39.22contact services, the order remains in effect pending the outcome of a hearing under
39.23sections 245C.27 and 256.045, or 245C.28 and chapter 14.
39.24(c) If the commissioner does not set aside the disqualification under section
39.25245C.22, and the license holder was not previously ordered to immediately remove the
39.26individual from any position allowing direct contact with persons receiving services from
39.27the program or to ensure that the individual is under continuous, direct supervision when
39.28providing direct contact services, the commissioner shall order the license holder to ensure
39.29that the individual remains under continuous, direct supervision when providing direct
39.30contact services pending the outcome of a hearing under sections 245C.27 and 256.045, or
39.31245C.28 and chapter 14.
39.32    (c) (d) For background studies related to child foster care, the commissioner shall
39.33also notify the county or private agency that initiated the study of the results of the
39.34reconsideration.
40.1(d) (e) For background studies related to adult foster care and family adult day
40.2services, the commissioner shall also notify the county that initiated the study of the
40.3results of the reconsideration.

40.4    Sec. 31. Minnesota Statutes 2010, section 245C.24, subdivision 2, is amended to read:
40.5    Subd. 2. Permanent bar to set aside a disqualification. (a) Except as otherwise
40.6provided in paragraph (b) this section, the commissioner may not set aside the
40.7disqualification of any individual disqualified pursuant to this chapter, regardless of how
40.8much time has passed, if the individual was disqualified for a crime or conduct listed in
40.9section 245C.15, subdivision 1.
40.10    (b) For an individual in the chemical dependency or corrections field who was
40.11disqualified for a crime or conduct listed under section 245C.15, subdivision 1, and whose
40.12disqualification was set aside prior to July 1, 2005, the commissioner must consider
40.13granting a variance pursuant to section 245C.30 for the license holder for a program
40.14dealing primarily with adults. A request for reconsideration evaluated under this paragraph
40.15must include a letter of recommendation from the license holder that was subject to the
40.16prior set-aside decision addressing the individual's quality of care to children or vulnerable
40.17adults and the circumstances of the individual's departure from that service.
40.18(c) When a licensed foster care provider adopts an individual who had received
40.19foster care services from the provider for over six months, and the adopted individual is
40.20required to receive a background study under section 245C.03, subdivision 1, paragraph
40.21(a), clause (2) or (6), the commissioner may grant a variance to the license holder under
40.22section 245C.30 to permit the adopted individual with a permanent disqualification
40.23to remain affiliated with the license holder under the conditions of the variance when
40.24the variance is recommended by the county of responsibility for each of the remaining
40.25individuals in placement in the home and the licensing agency for the home.
40.26(d) For background studies related to an application or license to provide child foster
40.27care for a specific child related to the applicant or license holder, the commissioner shall
40.28consider granting a variance under section 245C.30 to an individual with a disqualification
40.29under section 245C.15, subdivision 1. The variance shall be limited to the specific child
40.30related to the applicant or license holder.
40.31(e) When a background study is required on a child foster care provider's former
40.32recipient of foster care services because the former recipient of foster care services
40.33returns for occasional overnight visits or temporarily resides with the foster parents, the
40.34commissioner shall consider granting a variance under section 245C.30 related to the
40.35former foster care recipient with a disqualification under section 245C.15, subdivision 1.

41.1    Sec. 32. Minnesota Statutes 2010, section 471.709, is amended to read:
41.2471.709 LICENSE; PERMIT.
41.3    Notwithstanding any law to the contrary, a municipality shall not require a massage
41.4therapist to obtain a license or permit when the therapist is working for or an employee
41.5of a medical professional licensed under chapter 147 or 148 or a dental professional
41.6licensed under chapter 150A . A massage therapist is not limited to providing treatment to
41.7patients of the medical or dental professional.

41.8    Sec. 33. REVISOR'S INSTRUCTION.
41.9The revisor shall renumber Minnesota Statutes, section 245B.05, subdivision 4, as
41.10Minnesota Statutes, section 245A.04, subdivision 2a. The revisor shall make necessary
41.11cross-reference changes to effectuate this renumbering.

41.12    Sec. 34. REPEALER.
41.13Minnesota Rules, part 9503.0150, item E, is repealed.


41.16    Section 1. Minnesota Statutes 2010, section 245A.04, subdivision 1, is amended to
41.17read:
41.18    Subdivision 1. Application for licensure. (a) An individual, corporation,
41.19partnership, voluntary association, other organization or controlling individual that is
41.20subject to licensure under section 245A.03 must apply for a license. The application
41.21must be made on the forms and in the manner prescribed by the commissioner. The
41.22commissioner shall provide the applicant with instruction in completing the application
41.23and provide information about the rules and requirements of other state agencies that affect
41.24the applicant. An applicant seeking licensure in Minnesota with headquarters outside of
41.25Minnesota must have a program office located within the state.
41.26The commissioner shall act on the application within 90 working days after a
41.27complete application and any required reports have been received from other state
41.28agencies or departments, counties, municipalities, or other political subdivisions. The
41.29commissioner shall not consider an application to be complete until the commissioner
41.30receives all of the information required under section 245C.05.
41.31(b) An application for licensure must specify one or more controlling individuals as
41.32an agent who is responsible for dealing with the commissioner of human services on all
41.33matters provided for in this chapter and on whom service of all notices and orders must be
42.1made. The agent must be authorized to accept service on behalf of all of the controlling
42.2individuals of the program. Service on the agent is service on all of the controlling
42.3individuals of the program. It is not a defense to any action arising under this chapter that
42.4service was not made on each controlling individual of the program. The designation of
42.5one or more controlling individuals as agents under this paragraph does not affect the legal
42.6responsibility of any other controlling individual under this chapter.
42.7(c) An applicant or license holder must have a policy that prohibits license holders,
42.8employees, subcontractors, and volunteers, when directly responsible for persons served
42.9by the program, from abusing prescription medication or being in any manner under
42.10the influence of a chemical that impairs the individual's ability to provide services or
42.11care. The license holder must train employees, subcontractors, and volunteers about the
42.12program's drug and alcohol policy.
42.13(d) An applicant and license holder must have a program grievance procedure that
42.14permits persons served by the program and their authorized representatives to bring a
42.15grievance to the highest level of authority in the program.
42.16(e) At the time of application for licensure or renewal of a license, the applicant
42.17or license holder must acknowledge on the form provided by the commissioner if the
42.18applicant or license holder elects to receive any public funding reimbursement from the
42.19commissioner for services provided under the license that:
42.20(1) the applicant's or license holder's compliance with the provider enrollment
42.21agreement or registration requirements for receipt of public funding may be monitored by
42.22the commissioner as part of a licensing investigation or licensing inspection; and
42.23(2) noncompliance with the provider enrollment agreement or registration
42.24requirements for receipt of public funding that is identified through a licensing
42.25investigation or licensing inspection, or noncompliance with a licensing requirement that
42.26is a basis of enrollment for reimbursement for a service, may result in:
42.27(i) a correction order or a conditional license under section 245A.06, or sanctions
42.28under section 245A.07;
42.29(ii) nonpayment of claims submitted by the license holder for public program
42.30reimbursement;
42.31(iii) recovery of payments made for the service;
42.32(iv) disenrollment in the public payment program; or
42.33(v) other administrative, civil, or criminal penalties as provided by law.

42.34    Sec. 2. Minnesota Statutes 2010, section 245A.14, is amended by adding a subdivision
42.35to read:
43.1    Subd. 14. Attendance records for publicly funded services. (a) A child care
43.2center licensed under this chapter and according to Minnesota Rules, chapter 9503, must
43.3maintain documentation of actual attendance for each child receiving care for which the
43.4license holder is reimbursed by a governmental program. The records must be accessible
43.5to the commissioner during the program's hours of operation, they must be completed on
43.6the actual day of attendance, and they must include:
43.7(1) the first and last name of the child;
43.8(2) the time of day that the child was dropped off; and
43.9(3) the time of day that the child was picked up.
43.10(b) A family child care provider licensed under this chapter and according to
43.11Minnesota Rules, chapter 9502, must maintain documentation of actual attendance for
43.12each child receiving care for which the license holder is reimbursed by a governmental
43.13program. The records must be accessible to the commissioner during the program's
43.14hours of operation, they must be completed on the actual day of attendance, and they
43.15must include:
43.16(1) the first and last name of the child;
43.17(2) the time of day that the child was dropped off; and
43.18(3) the time of day that the child was picked up.
43.19(c) An adult day services program licensed under this chapter and according to
43.20Minnesota Rules, parts 9555.5105 to 9555.6265, must maintain documentation of actual
43.21attendance for each adult day service recipient for which the license holder is reimbursed
43.22by a governmental program. The records must be accessible to the commissioner during
43.23the program's hours of operation, they must be completed on the actual day of attendance,
43.24and they must include:
43.25(1) the first, middle, and last name of the recipient;
43.26(2) the time of day that the recipient was dropped off; and
43.27(3) the time of day that the recipient was picked up.
43.28(d) The commissioner shall not issue a correction for attendance record errors that
43.29occur before August 1, 2013.

43.30    Sec. 3. [245A.167] PUBLIC FUNDS PROGRAM INTEGRITY MONITORING.
43.31(a) An applicant or a license holder that has enrolled to receive public funding
43.32reimbursement for services is required to comply with the registration or enrollment
43.33requirements as licensing standards.
44.1(b) Compliance with the licensing standards established under paragraph (a) may
44.2be monitored during a licensing investigation or inspection. Noncompliance with these
44.3licensure standards may result in:
44.4(i) a correction order or a conditional license under section 245A.06, or sanctions
44.5under section 245A.07;
44.6(ii) nonpayment of claims submitted by the license holder for public program
44.7reimbursement according to the statute applicable to that program;
44.8(iii) recovery of payments made for the service according to the statute applicable to
44.9that program;
44.10(iv) disenrollment in the public payment program according to the statute applicable
44.11to that program; or
44.12(v) a referral for other administrative, civil, or criminal penalties as provided by law.

44.13    Sec. 4. Minnesota Statutes 2011 Supplement, section 256B.04, subdivision 21, is
44.14amended to read:
44.15    Subd. 21. Provider enrollment. (a) If the commissioner or the Centers for
44.16Medicare and Medicaid Services determines that a provider is designated "high-risk," the
44.17commissioner may withhold payment from providers within that category upon initial
44.18enrollment for a 90-day period. The withholding for each provider must begin on the date
44.19of the first submission of a claim.
44.20(b) An enrolled provider that is also licensed by the commissioner under chapter
44.21245A must designate an individual as the entity's compliance officer. The compliance
44.22officer must:
44.23(1) develop policies and procedures to assure adherence to medical assistance laws
44.24and regulations and to prevent inappropriate claims submissions;
44.25(2) train the employees of the provider entity, and any agents or subcontractors of
44.26the provider entity including billers, on the policies and procedures under clause (1);
44.27(3) respond to allegations of improper conduct related to the provision or billing of
44.28medical assistance services, and implement action to remediate any resulting problems;
44.29(4) use evaluation techniques to monitor compliance with medical assistance laws
44.30and regulations;
44.31(5) promptly report to the commissioner any identified violations of medical
44.32assistance laws or regulations; and
44.33    (6) within 60 days of discovery by the provider of a medical assistance
44.34reimbursement overpayment, report the overpayment to the commissioner and make
44.35arrangements with the commissioner for the commissioner's recovery of the overpayment.
45.1The commissioner may require, as a condition of enrollment in medical assistance, that a
45.2provider within a particular industry sector or category establish a compliance program that
45.3contains the core elements established by the Centers for Medicare and Medicaid Services.
45.4(c) The commissioner may revoke the enrollment of an ordering or rendering
45.5provider for a period of not more than one year, if the provider fails to maintain and, upon
45.6request from the commissioner, provide access to documentation relating to written orders
45.7or requests for payment for durable medical equipment, certifications for home health
45.8services, or referrals for other items or services written or ordered by such provider, when
45.9the commissioner has identified a pattern of a lack of documentation. A pattern means a
45.10failure to maintain documentation or provide access to documentation on more than one
45.11occasion. Nothing in this paragraph limits the authority of the commissioner to sanction a
45.12provider under the provisions of section 256B.064.
45.13(d) The commissioner shall terminate or deny the enrollment of any individual or
45.14entity if the individual or entity has been terminated from participation in Medicare or
45.15under the Medicaid program or Children's Health Insurance Program of any other state.
45.16(e) As a condition of enrollment in medical assistance, the commissioner shall
45.17require that a provider designated "moderate" or "high-risk" by the Centers for Medicare
45.18and Medicaid Services or the Minnesota Department of Human Services permit the
45.19Centers for Medicare and Medicaid Services, its agents, or its designated contractors and
45.20the state agency, its agents, or its designated contractors to conduct unannounced on-site
45.21inspections of any provider location.
45.22(f) As a condition of enrollment in medical assistance, the commissioner shall
45.23require that a high-risk provider, or a person with a direct or indirect ownership interest in
45.24the provider of five percent or higher, consent to criminal background checks, including
45.25fingerprinting, when required to do so under state law or by a determination by the
45.26commissioner or the Centers for Medicare and Medicaid Services that a provider is
45.27designated high-risk for fraud, waste, or abuse."
45.28Amend the title accordingly