1.1.................... moves to amend S.F. No. 1675, the second engrossment, as follows:
1.2Page 46, after line 20, 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, for
6.10preparation of defense; or
6.11(4) to provide notices required or permitted by statute.
6.12The 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, and address, and the date that the
12.34background 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 7, is amended to read:
13.9    Subd. 7. Grant of license; license extension. (a) If the commissioner determines
13.10that the program complies with all applicable rules and laws, the commissioner shall issue
13.11a license. At minimum, the license shall state:
13.12(1) the name of the license holder;
13.13(2) the address of the program;
13.14(3) the effective date and expiration date of the license;
13.15(4) the type of license;
13.16(5) the maximum number and ages of persons that may receive services from the
13.17program; and
13.18(6) any special conditions of licensure.
13.19(b) The commissioner may issue an initial license for a period not to exceed two
13.20years if:
13.21(1) the commissioner is unable to conduct the evaluation or observation required
13.22by subdivision 4, paragraph (a), clauses (3) and (4), because the program is not yet
13.23operational;
13.24(2) certain records and documents are not available because persons are not yet
13.25receiving services from the program; and
13.26(3) the applicant complies with applicable laws and rules in all other respects.
13.27(c) A decision by the commissioner to issue a license does not guarantee that any
13.28person or persons will be placed or cared for in the licensed program. A license shall not
13.29be transferable to another individual, corporation, partnership, voluntary association, other
13.30organization, or controlling individual or to another location.
13.31(d) A license holder must notify the commissioner and obtain the commissioner's
13.32approval before making any changes that would alter the license information listed under
13.33paragraph (a).
13.34(e) Except as provided in paragraphs (g) and (h), the commissioner shall not issue or
13.35reissue a license if the applicant, license holder, or controlling individual has:
14.1(1) been disqualified and the disqualification was not set aside and no variance has
14.2been granted;
14.3(2) has been denied a license within the past two years;
14.4(3) had a license revoked within the past five years; or
14.5(4) has an outstanding debt related to a license fee, licensing fine, or settlement
14.6agreement for which payment is delinquent.; or
14.7(5) failed to submit the information required of an applicant under section 245A.04,
14.8subdivision 1, paragraph (f) or (g), after being requested by the commissioner.
14.9When a license is revoked under clause (1) or (3), the license holder and controlling
14.10individual may not hold any license under chapter 245A or 245B for five years following
14.11the revocation, and other licenses held by the applicant, license holder, or controlling
14.12individual shall also be revoked.
14.13(f) The commissioner shall not issue or reissue a license if an individual living in
14.14the household where the licensed services will be provided as specified under section
14.15245C.03, subdivision 1 , has been disqualified and the disqualification has not been set
14.16aside and no variance has been granted.
14.17(g) Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license has
14.18been suspended or revoked and the suspension or revocation is under appeal, the program
14.19may continue to operate pending a final order from the commissioner. If the license under
14.20suspension or revocation will expire before a final order is issued, a temporary provisional
14.21license may be issued provided any applicable license fee is paid before the temporary
14.22provisional license is issued.
14.23(h) Notwithstanding paragraph (g), when a revocation is based on the disqualification
14.24of a controlling individual or license holder, and the controlling individual or license holder
14.25is ordered under section 245C.17 to be immediately removed from direct contact with
14.26persons receiving services or is ordered to be under continuous, direct supervision when
14.27providing direct contact services, the program may continue to operate only if the program
14.28complies with the order and submits documentation demonstrating compliance with the
14.29order. If the disqualified individual fails to submit a timely request for reconsideration, or
14.30if the disqualification is not set aside and no variance is granted, the order to immediately
14.31remove the individual from direct contact or to be under continuous, direct supervision
14.32remains in effect pending the outcome of a hearing and final order from the commissioner.
14.33(i) For purposes of reimbursement for meals only, under the Child and Adult Care
14.34Food Program, Code of Federal Regulations, title 7, subtitle B, chapter II, subchapter A,
14.35part 226, relocation within the same county by a licensed family day care provider, shall
14.36be considered an extension of the license for a period of no more than 30 calendar days or
15.1until the new license is issued, whichever occurs first, provided the county agency has
15.2determined the family day care provider meets licensure requirements at the new location.
15.3(j) Unless otherwise specified by statute, all licenses expire at 12:01 a.m. on the
15.4day after the expiration date stated on the license. A license holder must apply for and
15.5be granted a new license to operate the program or the program must not be operated
15.6after the expiration date.
15.7(k) The commissioner shall not issue or reissue a license if it has been determined that
15.8a tribal licensing authority has established jurisdiction to license the program or service.

15.9    Sec. 3. Minnesota Statutes 2010, section 245A.04, subdivision 11, is amended to read:
15.10    Subd. 11. Education program; permitted ages, additional requirement. (a) The
15.11education program offered in a residential or nonresidential program, except for child care,
15.12foster care, or services for adults, must be approved by the commissioner of education
15.13before the commissioner of human services may grant a license to the program. Except for
15.14foster care, the commissioner of human services may not grant a license to a residential
15.15facility for the placement of children before the commissioner has received documentation
15.16of approval of the educational program from the commissioner of education according to
15.17section 125A.515.
15.18    (b) A residential program licensed by the commissioner of human services under
15.19Minnesota Rules, parts 2960.0010 to 2960.0710, may serve persons through the age of
15.2019 when:
15.21    (1) the admission or continued stay is necessary for a person to complete a secondary
15.22school program or its equivalent, or it is necessary to facilitate a transition period after
15.23completing the secondary school program or its equivalent for up to four months in order
15.24for the resident to obtain other living arrangements;
15.25    (2) the facility develops policies, procedures, and plans required under section
15.26245A.65;
15.27    (3) the facility documents an assessment of the 18- or 19-year-old person's risk
15.28of victimizing children residing in the facility, and develops necessary risk reduction
15.29measures, including sleeping arrangements, to minimize any risk of harm to children; and
15.30    (4) notwithstanding the license holder's target population age range, whenever
15.31persons age 18 or 19 years old are receiving residential services, the age difference among
15.32residents may not exceed five years.
15.33    (c) (b) A child foster care program licensed by the commissioner under Minnesota
15.34Rules, chapter 2960, may serve persons who are over the age of 18 but under the age
15.35of 21 when the person is:
16.1(1) completing secondary education or a program leading to an equivalent credential;
16.2(2) enrolled in an institution which provides postsecondary or vocational education;
16.3(3) participating in a program or activity designed to promote, or remove barriers to,
16.4employment;
16.5(4) employed for at least 80 hours per month; or
16.6(5) incapable of doing any of the activities described in clauses (1) to (4) due to a
16.7medical condition, which incapability is supported by regularly updated information in the
16.8case plan of the person.
16.9(c) In addition to the requirements in paragraph (b), a residential program licensed
16.10by the commissioner of human services under Minnesota Rules, parts 2960.0010 to
16.112960.0710, may serve persons under the age of 21 provided the facility complies with the
16.12following requirements:
16.13(1) for each person age 18 and older served at the program, the program must assess
16.14and document the person's risk of victimizing other residents residing in the facility, and
16.15based on the assessment, the facility must develop and implement necessary measures
16.16to minimize any risk of harm to other residents, including making arrangements for
16.17appropriate sleeping arrangements; and
16.18(2) the program must assure that the services and living arrangements provided to all
16.19residents are suitable to the age and functioning of the residents, including separation of
16.20services, staff supervision, and other program operations as appropriate.
16.21(d) Nothing in this paragraph subdivision precludes the license holder from seeking
16.22other variances under subdivision 9.

16.23    Sec. 4. Minnesota Statutes 2010, section 245A.04, is amended by adding a subdivision
16.24to read:
16.25    Subd. 16. Program policy; reporting a death in the program. Unless such
16.26reporting is otherwise already required under statute or rule, programs licensed under this
16.27chapter must have a written policy for reporting the death of an individual served by the
16.28program to the commissioner of human services. Within 24 hours of receiving knowledge
16.29of the death of an individual served by the program, the license holder shall notify the
16.30commissioner of the death. If the license holder has reason to know that the death has
16.31been reported to the commissioner, a subsequent report is not required.

16.32    Sec. 5. Minnesota Statutes 2010, section 245A.04, is amended by adding a subdivision
16.33to read:
17.1    Subd. 17. Child care education plan. Child care providers are not required to
17.2provide an education plan or curriculum that has been approved by the Department of
17.3Education as a condition for initial or renewed licensure under this chapter.

17.4    Sec. 6. Minnesota Statutes 2010, section 245A.05, is amended to read:
17.5245A.05 DENIAL OF APPLICATION.
17.6(a) The commissioner may deny a license if an applicant or controlling individual:
17.7(1) fails to submit a substantially complete application after receiving notice from
17.8the commissioner under section 245A.04, subdivision 1;
17.9(1) (2) fails to comply with applicable laws or rules;
17.10(2) (3) knowingly withholds relevant information from or gives false or misleading
17.11information to the commissioner in connection with an application for a license or during
17.12an investigation;
17.13(3) (4) has a disqualification that has not been set aside under section 245C.22
17.14and no variance has been granted;
17.15(4) (5) has an individual living in the household who received a background study
17.16under section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification
17.17that has not been set aside under section 245C.22, and no variance has been granted; or
17.18(5) (6) is associated with an individual who received a background study under
17.19section 245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised
17.20access to children or vulnerable adults, and who has a disqualification that has not been set
17.21aside under section 245C.22, and no variance has been granted.; or
17.22(7) fails to comply with section 245A.04, subdivision 1, paragraph (f) or (g).
17.23(b) An applicant whose application has been denied by the commissioner must be
17.24given notice of the denial. Notice must be given by certified mail or personal service.
17.25The notice must state the reasons the application was denied and must inform the
17.26applicant of the right to a contested case hearing under chapter 14 and Minnesota Rules,
17.27parts 1400.8505 to 1400.8612. The applicant may appeal the denial by notifying the
17.28commissioner in writing by certified mail or personal service. If mailed, the appeal must
17.29be postmarked and sent to the commissioner within 20 calendar days after the applicant
17.30received the notice of denial. If an appeal request is made by personal service, it must
17.31be received by the commissioner within 20 calendar days after the applicant received the
17.32notice of denial. Section 245A.08 applies to hearings held to appeal the commissioner's
17.33denial of an application.

17.34    Sec. 7. Minnesota Statutes 2010, section 245A.07, subdivision 3, is amended to read:
18.1    Subd. 3. License suspension, revocation, or fine. (a) The commissioner may
18.2suspend or revoke a license, or impose a fine if:
18.3(1) a license holder fails to comply fully with applicable laws or rules, if;
18.4(2) a license holder, a controlling individual, or an individual living in the household
18.5where the licensed services are provided or is otherwise subject to a background study has
18.6a disqualification which has not been set aside under section 245C.22, or if;
18.7(3) a license holder knowingly withholds relevant information from or gives false
18.8or misleading information to the commissioner in connection with an application for
18.9a license, in connection with the background study status of an individual, during an
18.10investigation, or regarding compliance with applicable laws or rules.; or
18.11(4) after July 1, 2012, and upon request by the commissioner, a license holder fails
18.12to submit the information required of an applicant under section 245A.04, subdivision 1,
18.13paragraph (f) or (g).
18.14A license holder who has had a license suspended, revoked, or has been ordered
18.15to pay a fine must be given notice of the action by certified mail or personal service. If
18.16mailed, the notice must be mailed to the address shown on the application or the last
18.17known address of the license holder. The notice must state the reasons the license was
18.18suspended, revoked, or a fine was ordered.
18.19    (b) If the license was suspended or revoked, the notice must inform the license
18.20holder of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts
18.211400.8505 to 1400.8612. The license holder may appeal an order suspending or revoking
18.22a license. The appeal of an order suspending or revoking a license must be made in writing
18.23by certified mail or personal service. If mailed, the appeal must be postmarked and sent to
18.24the commissioner within ten calendar days after the license holder receives notice that the
18.25license has been suspended or revoked. If a request is made by personal service, it must be
18.26received by the commissioner within ten calendar days after the license holder received
18.27the order. Except as provided in subdivision 2a, paragraph (c), if a license holder submits
18.28a timely appeal of an order suspending or revoking a license, the license holder may
18.29continue to operate the program as provided in section 245A.04, subdivision 7, paragraphs
18.30(g) and (h), until the commissioner issues a final order on the suspension or revocation.
18.31    (c)(1) If the license holder was ordered to pay a fine, the notice must inform the
18.32license holder of the responsibility for payment of fines and the right to a contested case
18.33hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal
18.34of an order to pay a fine must be made in writing by certified mail or personal service. If
18.35mailed, the appeal must be postmarked and sent to the commissioner within ten calendar
18.36days after the license holder receives notice that the fine has been ordered. If a request is
19.1made by personal service, it must be received by the commissioner within ten calendar
19.2days after the license holder received the order.
19.3    (2) The license holder shall pay the fines assessed on or before the payment date
19.4specified. If the license holder fails to fully comply with the order, the commissioner
19.5may issue a second fine or suspend the license until the license holder complies. If the
19.6license holder receives state funds, the state, county, or municipal agencies or departments
19.7responsible for administering the funds shall withhold payments and recover any payments
19.8made while the license is suspended for failure to pay a fine. A timely appeal shall stay
19.9payment of the fine until the commissioner issues a final order.
19.10    (3) A license holder shall promptly notify the commissioner of human services,
19.11in writing, when a violation specified in the order to forfeit a fine is corrected. If upon
19.12reinspection the commissioner determines that a violation has not been corrected as
19.13indicated by the order to forfeit a fine, the commissioner may issue a second fine. The
19.14commissioner shall notify the license holder by certified mail or personal service that a
19.15second fine has been assessed. The license holder may appeal the second fine as provided
19.16under this subdivision.
19.17    (4) Fines shall be assessed as follows: the license holder shall forfeit $1,000 for
19.18each determination of maltreatment of a child under section 626.556 or the maltreatment
19.19of a vulnerable adult under section 626.557 for which the license holder is determined
19.20responsible for the maltreatment under section 626.556, subdivision 10e, paragraph (i),
19.21or 626.557, subdivision 9c, paragraph (c); the license holder shall forfeit $200 for each
19.22occurrence of a violation of law or rule governing matters of health, safety, or supervision,
19.23including but not limited to the provision of adequate staff-to-child or adult ratios, and
19.24failure to comply with background study requirements under chapter 245C; and the license
19.25holder shall forfeit $100 for each occurrence of a violation of law or rule other than those
19.26subject to a $1,000 or $200 fine above. For purposes of this section, "occurrence" means
19.27each violation identified in the commissioner's fine order. Fines assessed against a license
19.28holder that holds a license to provide the residential-based habilitation services, as defined
19.29under section 245B.02, subdivision 20, and a license to provide foster care, may be
19.30assessed against both licenses for the same occurrence, but the combined amount of the
19.31fines shall not exceed the amount specified in this clause for that occurrence.
19.32    (5) When a fine has been assessed, the license holder may not avoid payment by
19.33closing, selling, or otherwise transferring the licensed program to a third party. In such an
19.34event, the license holder will be personally liable for payment. In the case of a corporation,
19.35each controlling individual is personally and jointly liable for payment.
20.1(d) Except for background study violations involving the failure to comply with an
20.2order to immediately remove an individual or an order to provide continuous, direct
20.3supervision, the commissioner shall not issue a fine under paragraph (c) relating to a
20.4background study violation to a license holder who self-corrects a background study
20.5violation before the commissioner discovers the violation. A license holder who has
20.6previously exercised the provisions of this paragraph to avoid a fine for a background
20.7study violation may not avoid a fine for a subsequent background study violation unless at
20.8least 365 days have passed since the license holder self-corrected the earlier background
20.9study violation.

20.10    Sec. 8. Minnesota Statutes 2010, section 245A.14, subdivision 11, is amended to read:
20.11    Subd. 11. Swimming pools; family day care and group family day care
20.12providers. (a) This subdivision governs swimming pools located at family day care
20.13or group family day care homes licensed under Minnesota Rules, chapter 9502. This
20.14subdivision does not apply to portable wading pools or whirlpools located at family day
20.15care or group family day care homes licensed under Minnesota Rules, chapter 9502. For a
20.16provider to be eligible to allow a child cared for at the family day care or group family day
20.17care home to use the swimming pool located at the home, the provider must not have had
20.18a licensing sanction under section 245A.07 or a correction order or conditional license
20.19under section 245A.06 relating to the supervision or health and safety of children during
20.20the prior 24 months, and must satisfy the following requirements:
20.21(1) notify the county agency before initial use of the swimming pool and annually,
20.22thereafter;
20.23(2) obtain written consent from a child's parent or legal guardian allowing the child
20.24to use the swimming pool and renew the parent or legal guardian's written consent at least
20.25annually. The written consent must include a statement that the parent or legal guardian
20.26has received and read materials provided by the Department of Health to the Department
20.27of Human Services for distribution to all family day care or group family day care homes
20.28and the general public on the human services Internet Web site related to the risk of disease
20.29transmission as well as other health risks associated with swimming pools. The written
20.30consent must also include a statement that the Department of Health, Department of
20.31Human Services, and county agency will not monitor or inspect the provider's swimming
20.32pool to ensure compliance with the requirements in this subdivision;
20.33(3) enter into a written contract with a child's parent or legal guardian and renew the
20.34written contract annually. The terms of the written contract must specify that the provider
20.35agrees to perform all of the requirements in this subdivision;
21.1(4) attend and successfully complete a swimming pool operator training course once
21.2every five years. Acceptable training courses are:
21.3(i) the National Swimming Pool Foundation Certified Pool Operator course;
21.4(ii) the National Spa and Pool Institute Tech I and Tech II courses (both required); or
21.5(iii) the National Recreation and Park Association Aquatic Facility Operator course;
21.6(5) require a caregiver trained in first aid and adult and child cardiopulmonary
21.7resuscitation to supervise and be present at the swimming pool with any children in the
21.8pool;
21.9(6) toilet all potty-trained children before they enter the swimming pool;
21.10(7) require all children who are not potty-trained to wear swim diapers while in
21.11the swimming pool;
21.12(8) if fecal material enters the swimming pool water, add three times the normal
21.13shock treatment to the pool water to raise the chlorine level to at least 20 parts per million,
21.14and close the pool to swimming for the 24 hours following the entrance of fecal material
21.15into the water or until the water pH and disinfectant concentration levels have returned to
21.16the standards specified in clause (10), whichever is later;
21.17(9) prevent any person from entering the swimming pool who has an open wound or
21.18any person who has or is suspected of having a communicable disease;
21.19(10) maintain the swimming pool water at a pH of not less than 7.2 and not more
21.20than 8.0, maintain the disinfectant concentration between two and five parts per million for
21.21chlorine or between 2.3 and 4.5 parts per million for bromine, and maintain a daily record
21.22of the swimming pool's operation with pH and disinfectant concentration readings on days
21.23when children cared for at the family day care or group family day care home are present;
21.24(11) have a disinfectant feeder or feeders;
21.25(12) have a recirculation system that will clarify and disinfect the swimming pool
21.26volume of water in ten hours or less;
21.27(13) maintain the swimming pool's water clarity so that an object on the pool floor at
21.28the pool's deepest point is easily visible;
21.29(14) have two or more suction lines in the swimming pool comply with the provisions
21.30of the Abigail Taylor Pool Safety Act in section 144.1222, subdivisions 1c and 1d;
21.31(15) have in place and enforce written safety rules and swimming pool policies;
21.32(16) have in place at all times a safety rope that divides the shallow and deep
21.33portions of the swimming pool;
21.34(17) satisfy any existing local ordinances regarding swimming pool installation,
21.35decks, and fencing;
22.1(18) maintain a water temperature of not more than 104 degrees Fahrenheit and
22.2not less than 70 degrees Fahrenheit; and
22.3(19) for lifesaving equipment, have a United States Coast Guard-approved life
22.4ring attached to a rope, an exit ladder, and a shepherd's hook available at all times to the
22.5caregiver supervising the swimming pool.
22.6The requirements of clauses (5), (16), and (18) only apply at times when children
22.7cared for at the family day care or group family day care home are present.
22.8(b) A violation of paragraph (a), clauses (1) to (3), is grounds for a sanction under
22.9section 245A.07 or a correction order or conditional license under section 245A.06.
22.10(c) If a provider under this subdivision receives a licensing sanction under section
22.11245A.07 or a correction order or a conditional license under section 245A.06 relating to
22.12the supervision or health and safety of children, the provider is prohibited from allowing a
22.13child cared for at the family day care or group family day care home to continue to use
22.14the swimming pool located at the home.

22.15    Sec. 9. Minnesota Statutes 2010, section 245A.146, subdivision 2, is amended to read:
22.16    Subd. 2. Documentation requirement for license holders. (a) Effective January
22.171, 2006, All licensed child care providers, children's residential facilities, chemical
22.18dependency treatment programs with children in care, and residential habilitation
22.19programs serving children with developmental disabilities must maintain the following
22.20documentation for every crib used by or that is accessible to any child in care:
22.21(1) the crib's brand name; and
22.22(2) the crib's model number.
22.23(b) Any crib for which the license holder does not have the documentation required
22.24under paragraph (a) must not be used by or be accessible to children in care.
22.25(c) Effective December 28, 2012, the licensed program must maintain documentation
22.26that meets federal documentation requirements to show that every full-size and
22.27non-full-size crib that is used by or is accessible to any child in care is compliant with
22.28federal crib standards under Code of Federal Regulations, title 16, part 1219, for full-size
22.29baby cribs, or Code of Federal Regulations, title 16, part 1220, for non-full-size baby cribs.

22.30    Sec. 10. Minnesota Statutes 2010, section 245A.146, subdivision 3, is amended to read:
22.31    Subd. 3. License holder documentation of cribs. (a) Annually, from the date
22.32printed on the license, all license holders shall check all their cribs' brand names and
22.33model numbers against the United States Consumer Product Safety Commission Web
22.34site listing of unsafe cribs.
23.1(b) The license holder shall maintain written documentation to be reviewed on site
23.2for each crib showing that the review required in paragraph (a) has been completed, and
23.3which of the following conditions applies:
23.4(1) the crib was not identified as unsafe on the United States Consumer Product
23.5Safety Commission Web site;
23.6(2) the crib was identified as unsafe on the United States Consumer Product Safety
23.7Commission Web site, but the license holder has taken the action directed by the United
23.8States Consumer Product Safety Commission to make the crib safe; or
23.9(3) the crib was identified as unsafe on the United States Consumer Product Safety
23.10Commission Web site, and the license holder has removed the crib so that it is no longer
23.11used by or accessible to children in care.
23.12(c) Documentation of the review completed under this subdivision shall be
23.13maintained by the license holder on site and made available to parents or guardians of
23.14children in care and the commissioner.
23.15(d) Notwithstanding Minnesota Rules, part 9502.0425, a family child care provider
23.16that complies with this section may use a mesh-sided playpen or crib that has not been
23.17identified as unsafe on the United States Consumer Product Safety Commission Web site
23.18for the care or sleeping of infants.

23.19    Sec. 11. Minnesota Statutes 2010, section 245A.18, subdivision 1, is amended to read:
23.20    Subdivision 1. Seat belt and child passenger restraint system use. When a child
23.21is transported, a license holder must comply with all seat belt and child passenger restraint
23.22system requirements under section sections 169.685 and 169.686.

23.23    Sec. 12. [245A.191] PROVIDER ELIGIBILITY FOR PAYMENTS FROM THE
23.24CHEMICAL DEPENDENCY CONSOLIDATED TREATMENT FUND.
23.25(a) When a chemical dependency treatment provider licensed under Minnesota
23.26Rules, parts 2960.0430 to 2960.0490 or 9530.6405 to 9530.6505, agrees to meet the
23.27applicable requirements under section 254B.05, subdivision 5, paragraphs (b), clauses
23.28(1) to (4) and (6), (c), and (d), to be eligible for enhanced funding from the chemical
23.29dependency consolidated treatment fund, the applicable requirements under section
23.30254B.05 are also licensing requirements that may be monitored for compliance through
23.31licensing investigations and licensing inspections.
23.32    (b) Noncompliance with the requirements identified under paragraph (a) may
23.33result in:
24.1    (1) a correction order or a conditional license under section 245A.06, or sanctions
24.2under section 245A.07;
24.3    (2) nonpayment of claims submitted by the license holder for public program
24.4reimbursement;
24.5    (3) recovery of payments made for the service;
24.6    (4) disenrollment in the public payment program; or
24.7    (5) other administrative, civil, or criminal penalties as provided by law.

24.8    Sec. 13. Minnesota Statutes 2010, section 245A.22, subdivision 2, is amended to read:
24.9    Subd. 2. Admission. (a) The license holder shall accept as clients in the independent
24.10living assistance program only youth ages 16 to 21 who are in out-of-home placement,
24.11leaving out-of-home placement, at risk of becoming homeless, or homeless.
24.12(b) Youth who have current drug or alcohol problems, a recent history of violent
24.13behaviors, or a mental health disorder or issue that is not being resolved through
24.14counseling or treatment are not eligible to receive the services described in subdivision 1.
24.15(c) Youth who are not employed, participating in employment training, or enrolled
24.16in an academic program are not eligible to receive transitional housing or independent
24.17living assistance.
24.18(d) The commissioner may grant a variance under section 245A.04, subdivision 9,
24.19to requirements in this section.

24.20    Sec. 14. Minnesota Statutes 2010, section 245A.66, subdivision 2, is amended to read:
24.21    Subd. 2. Child care centers; risk reduction plan. (a) Child care centers licensed
24.22under this chapter and Minnesota Rules, chapter 9503, must develop a risk reduction plan
24.23that assesses identifies the general risks to children served by the child care center. The
24.24license holder must establish procedures to minimize identified risks, train staff on the
24.25procedures, and annually review the procedures.
24.26(b) The risk reduction plan must include an assessment of risk to children the
24.27center serves or intends to serve and identify specific risks based on the outcome of the
24.28assessment. The assessment of risk must be based on the following:
24.29(1) an assessment of the risk presented by the vulnerability of the children served,
24.30including an evaluation of the following factors: age, developmental functioning, and the
24.31physical and emotional health of children the program serves or intends to serve;
24.32(2) an assessment of the risks presented by the physical plant where the licensed
24.33services are provided, including an evaluation of the following factors: the condition and
24.34design of the facility and its outdoor space, bathrooms, storage areas, and accessibility
25.1of medications and cleaning products that are harmful to children when children are not
25.2supervised, doors where finger pinching may occur, and the existence of areas that are
25.3difficult to supervise; and
25.4(3) (2) an assessment of the risks presented by the environment for each facility and
25.5for each site, including an evaluation of the following factors: the type of grounds and
25.6terrain surrounding the building and the proximity to hazards, busy roads, and publicly
25.7accessed businesses.
25.8(c) The risk reduction plan must include a statement of measures that will be
25.9taken to minimize the risk of harm presented to children for each risk identified in the
25.10assessment required under paragraph (b) related to the physical plant and environment. At
25.11a minimum, the risk reduction plan stated measures must address the following: include
25.12(1) a general description of supervision, programming, and the development and
25.13implementation of specific policies and procedures or reference to the existing policies
25.14and procedures developed and implemented to address that minimize the risks identified
25.15in the assessment required under paragraph (b) related to the general population served,
25.16the physical plant, and environment;.
25.17(2) (d) In addition to any program-specific risks identified in paragraph (b), the plan
25.18must include development and implementation of specific policies and procedures or refer
25.19to existing policies and procedures developed and implemented to that minimize the risk
25.20of harm or injury to children, including:
25.21(i) (1) closing children's fingers in doors, including cabinet doors;
25.22(ii) (2) leaving children in the community without supervision;
25.23(iii) (3) children leaving the facility without supervision;
25.24(iv) (4) caregiver dislocation of children's elbows;
25.25(v) (5) burns from hot food or beverages, whether served to children or being
25.26consumed by caregivers, and the devices used to warm food and beverages;
25.27(vi) (6) injuries from equipment, such as scissors and glue guns;
25.28(vii) (7) sunburn;
25.29(viii) (8) feeding children foods to which they are allergic;
25.30(ix) (9) children falling from changing tables; and
25.31(x) (10) children accessing dangerous items or chemicals or coming into contact
25.32with residue from harmful cleaning products; and.
25.33(3) (e) The plan shall prohibit the accessibility of hazardous items to children.
25.34(f) The plan must include specific policies and procedures to ensure adequate
25.35supervision of children at all times as defined under section 245A.02, subdivision 18, with
25.36particular emphasis on:
26.1(1) times when children are transitioned from one area within the facility to another;
26.2(2) nap-time supervision, including infant crib rooms as specified under section
26.3245A.02, subdivision 18, which requires that when an infant is placed in a crib to sleep,
26.4supervision occurs when a staff person is within sight or hearing of the infant. When
26.5supervision of a crib room is provided by sight or hearing, the center must have a plan to
26.6address the other supervision components;
26.7(3) child drop-off and pick-up times;
26.8(4) supervision during outdoor play and on community activities, including but not
26.9limited to field trips and neighborhood walks; and
26.10(5) supervision of children in hallways.

26.11    Sec. 15. Minnesota Statutes 2010, section 245A.66, subdivision 3, is amended to read:
26.12    Subd. 3. Orientation to risk reduction plan and annual review of plan. (a) The
26.13license holder shall ensure that all mandated reporters, as defined in section 626.556,
26.14subdivision 3, who are under the control of the license holder, receive an orientation to
26.15the risk reduction plan prior to first providing unsupervised direct contact services, as
26.16defined in section 245C.02, subdivision 11, to children, not to exceed 14 days from the
26.17first supervised direct contact, and annually thereafter. The license holder must document
26.18the orientation to the risk reduction plan in the mandated reporter's personnel records.
26.19(b) The license holder must review the risk reduction plan annually and document
26.20the annual review. When conducting the review, the license holder must consider incidents
26.21that have occurred in the center since the last review, including:
26.22(1) the assessment factors in the plan;
26.23(2) the internal reviews conducted under this section, if any;
26.24(3) substantiated maltreatment findings, if any; and
26.25(4) incidents that caused injury or harm to a child, if any, that occurred since the
26.26last review.
26.27Following any change to the risk reduction plan, the license holder must inform mandated
26.28reporters, under the control of the license holder, of the changes in the risk reduction plan,
26.29and document that the mandated reporters were informed of the changes.

26.30    Sec. 16. Minnesota Statutes 2010, section 245C.03, subdivision 1, is amended to read:
26.31    Subdivision 1. Licensed programs. (a) The commissioner shall conduct a
26.32background study on:
26.33(1) the person or persons applying for a license;
27.1(2) an individual age 13 and over living in the household where the licensed program
27.2will be provided who is not receiving licensed services from the program;
27.3(3) current or prospective employees or contractors of the applicant who will have
27.4direct contact with persons served by the facility, agency, or program;
27.5(4) volunteers or student volunteers who will have direct contact with persons served
27.6by the program to provide program services if the contact is not under the continuous,
27.7direct supervision by an individual listed in clause (1) or (3);
27.8(5) an individual age ten to 12 living in the household where the licensed services
27.9will be provided when the commissioner has reasonable cause;
27.10(6) an individual who, without providing direct contact services at a licensed
27.11program, may have unsupervised access to children or vulnerable adults receiving services
27.12from a program, when the commissioner has reasonable cause; and
27.13(7) all managerial officials as defined under section 245A.02, subdivision 5a.
27.14(b) For family child foster care settings, a short-term substitute caregiver providing
27.15direct contact services for a child for less than 72 hours of continuous care is not required
27.16to receive a background study under this chapter.

27.17    Sec. 17. Minnesota Statutes 2010, section 245C.04, subdivision 1, is amended to read:
27.18    Subdivision 1. Licensed programs. (a) The commissioner shall conduct a
27.19background study of an individual required to be studied under section 245C.03,
27.20subdivision 1 , at least upon application for initial license for all license types.
27.21    (b) The commissioner shall conduct a background study of an individual required
27.22to be studied under section 245C.03, subdivision 1, at reapplication for a license for
27.23family child care.
27.24    (c) The commissioner is not required to conduct a study of an individual at the time
27.25of reapplication for a license if the individual's background study was completed by the
27.26commissioner of human services for an adult foster care license holder that is also:
27.27    (1) registered under chapter 144D; or
27.28    (2) licensed to provide home and community-based services to people with
27.29disabilities at the foster care location and the license holder does not reside in the foster
27.30care residence; and
27.31    (3) the following conditions are met:
27.32    (i) a study of the individual was conducted either at the time of initial licensure or
27.33when the individual became affiliated with the license holder;
27.34    (ii) the individual has been continuously affiliated with the license holder since
27.35the last study was conducted; and
28.1    (iii) the last study of the individual was conducted on or after October 1, 1995.
28.2    (d) From July 1, 2007, to June 30, 2009, the commissioner of human services shall
28.3conduct a study of an individual required to be studied under section 245C.03, at the
28.4time of reapplication for a child foster care license. The county or private agency shall
28.5collect and forward to the commissioner the information required under section 245C.05,
28.6subdivisions 1, paragraphs (a) and (b), and 5, paragraphs (a) and (b). The background
28.7study conducted by the commissioner of human services under this paragraph must
28.8include a review of the information required under section 245C.08, subdivisions 1,
28.9paragraph (a), clauses (1) to (5), 3, and 4.
28.10    (e) The commissioner of human services shall conduct a background study of an
28.11individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2)
28.12to (6), who is newly affiliated with a child foster care license holder. The county or
28.13private agency shall collect and forward to the commissioner the information required
28.14under section 245C.05, subdivisions 1 and 5. The background study conducted by the
28.15commissioner of human services under this paragraph must include a review of the
28.16information required under section 245C.08, subdivisions 1, 3, and 4.
28.17    (f) From January 1, 2010, to December 31, 2012, unless otherwise specified in
28.18paragraph (c), the commissioner shall conduct a study of an individual required to
28.19be studied under section 245C.03 at the time of reapplication for an adult foster care
28.20or family adult day services license: (1) the county shall collect and forward to the
28.21commissioner the information required under section 245C.05, subdivision 1, paragraphs
28.22(a) and (b), and subdivision 5, paragraphs (a) and (b), for background studies conducted
28.23by the commissioner for all family adult day services and for adult foster care when
28.24the adult foster care license holder resides in the adult foster care or family adult day
28.25services residence; (2) the license holder shall collect and forward to the commissioner
28.26the information required under section 245C.05, subdivisions 1, paragraphs (a) and (b);
28.27and 5, paragraphs (a) and (b), for background studies conducted by the commissioner for
28.28adult foster care when the license holder does not reside in the adult foster care residence;
28.29and (3) the background study conducted by the commissioner under this paragraph must
28.30include a review of the information required under section 245C.08, subdivision 1,
28.31paragraph (a), clauses (1) to (5), and subdivisions 3 and 4.
28.32(g) The commissioner shall conduct a background study of an individual specified
28.33under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly
28.34affiliated with an adult foster care or family adult day services license holder: (1) the
28.35county shall collect and forward to the commissioner the information required under
28.36section 245C.05, subdivision 1, paragraphs (a) and (b), and subdivision 5, paragraphs (a)
29.1and (b), for background studies conducted by the commissioner for all family adult day
29.2services and for adult foster care when the adult foster care license holder resides in
29.3the adult foster care residence; (2) the license holder shall collect and forward to the
29.4commissioner the information required under section 245C.05, subdivisions 1, paragraphs
29.5(a) and (b); and 5, paragraphs (a) and (b), for background studies conducted by the
29.6commissioner for adult foster care when the license holder does not reside in the adult
29.7foster care residence; and (3) the background study conducted by the commissioner under
29.8this paragraph must include a review of the information required under section 245C.08,
29.9subdivision 1 , paragraph (a), and subdivisions 3 and 4.
29.10(h) Applicants for licensure, license holders, and other entities as provided in this
29.11chapter must submit completed background study forms to the commissioner before
29.12individuals specified in section 245C.03, subdivision 1, begin positions allowing direct
29.13contact in any licensed program.
29.14    (i) A license holder must provide the commissioner notice initiate a new background
29.15study through the commissioner's online background study system or through a letter
29.16mailed to the commissioner when:
29.17    (1) an individual returns to a position requiring a background study following an
29.18absence of 45 180 or more consecutive days; or
29.19    (2) a program that discontinued providing licensed direct contact services for 45 180
29.20or more consecutive days begins to provide direct contact licensed services again.
29.21    The license holder shall maintain a copy of the notification provided to
29.22the commissioner under this paragraph in the program's files. If the individual's
29.23disqualification was previously set aside for the license holder's program and the new
29.24background study results in no new information that indicates the individual may pose a
29.25risk of harm to persons receiving services from the license holder, the previous set-aside
29.26shall remain in effect.
29.27    (j) For purposes of this section, a physician licensed under chapter 147 is considered
29.28to be continuously affiliated upon the license holder's receipt from the commissioner of
29.29health or human services of the physician's background study results.
29.30(k) For purposes of family child care, a substitute caregiver must receive repeat
29.31background studies at the time of each license renewal.

29.32    Sec. 18. Minnesota Statutes 2010, section 245C.05, subdivision 2, is amended to read:
29.33    Subd. 2. Applicant, license holder, or other entity. The applicant, license holder,
29.34or other entities as provided in this chapter shall provide verify that the information
29.35collected under subdivision 1 about an individual who is the subject of the background
30.1study is correct and must provide the information on forms or in a format prescribed by
30.2the commissioner.

30.3    Sec. 19. Minnesota Statutes 2010, section 245C.05, is amended by adding a
30.4subdivision to read:
30.5    Subd. 2c. Privacy notice to background study subject. (a) For every background
30.6study, the commissioner's notice to the background study subject required under
30.7section 13.04, subdivision 2, that is provided through the commissioner's electronic
30.8NETStudy system or through the commissioner's background study forms shall include
30.9the information in paragraph (b).
30.10(b) The background study subject shall be informed that any previous background
30.11studies that received a set-aside will be reviewed, and without further contact with the
30.12background study subject, the commissioner may notify the agency that initiated the
30.13subsequent background study:
30.14(1) that the individual has a disqualification that has been set aside for the program
30.15or agency that initiated the study;
30.16(2) the reason for the disqualification; and
30.17(3) information about the decision to set aside the disqualification will be available
30.18to the license holder upon request without the consent of the background study subject.

30.19    Sec. 20. Minnesota Statutes 2010, section 245C.05, subdivision 4, is amended to read:
30.20    Subd. 4. Electronic transmission. (a) For background studies conducted by the
30.21Department of Human Services, the commissioner shall implement a system for the
30.22electronic transmission of:
30.23    (1) background study information to the commissioner;
30.24    (2) background study results to the license holder;
30.25    (3) background study results to county and private agencies for background studies
30.26conducted by the commissioner for child foster care; and
30.27(4) background study results to county agencies for background studies conducted
30.28by the commissioner for adult foster care and family adult day services.
30.29(b) Unless the commissioner has granted a hardship variance under paragraph (c), a
30.30license holder or an applicant must use the electronic transmission system known as
30.31NETStudy to submit all requests for background studies to the commissioner as required
30.32by this chapter.
31.1(c) A license holder or applicant whose program is located in an area in which
31.2high-speed Internet is inaccessible may request the commissioner to grant a variance to
31.3the electronic transmission requirement.

31.4    Sec. 21. Minnesota Statutes 2010, section 245C.05, subdivision 7, is amended to read:
31.5    Subd. 7. Probation officer and corrections agent. (a) A probation officer or
31.6corrections agent shall notify the commissioner of an individual's conviction if the
31.7individual is:
31.8    (1) has been affiliated with a program or facility regulated by the Department of
31.9Human Services or Department of Health, a facility serving children or youth licensed by
31.10the Department of Corrections, or any type of home care agency or provider of personal
31.11care assistance services within the preceding year; and
31.12    (2) has been convicted of a crime constituting a disqualification under section
31.13245C.14 .
31.14    (b) For the purpose of this subdivision, "conviction" has the meaning given it
31.15in section 609.02, subdivision 5.
31.16    (c) The commissioner, in consultation with the commissioner of corrections, shall
31.17develop forms and information necessary to implement this subdivision and shall provide
31.18the forms and information to the commissioner of corrections for distribution to local
31.19probation officers and corrections agents.
31.20    (d) The commissioner shall inform individuals subject to a background study that
31.21criminal convictions for disqualifying crimes will be reported to the commissioner by the
31.22corrections system.
31.23    (e) A probation officer, corrections agent, or corrections agency is not civilly or
31.24criminally liable for disclosing or failing to disclose the information required by this
31.25subdivision.
31.26    (f) Upon receipt of disqualifying information, the commissioner shall provide the
31.27notice required under section 245C.17, as appropriate, to agencies on record as having
31.28initiated a background study or making a request for documentation of the background
31.29study status of the individual.
31.30    (g) This subdivision does not apply to family child care programs.

31.31    Sec. 22. Minnesota Statutes 2010, section 245C.07, is amended to read:
31.32245C.07 STUDY SUBJECT AFFILIATED WITH MULTIPLE FACILITIES.
31.33    (a) Except for child foster care and adoption agencies, Subject to the conditions in
31.34paragraph (d), when a license holder, applicant, or other entity owns multiple programs or
32.1services that are licensed by the Department of Human Services, Department of Health, or
32.2Department of Corrections, only one background study is required for an individual who
32.3provides direct contact services in one or more of the licensed programs or services if:
32.4    (1) the license holder designates one individual with one address and telephone
32.5number as the person to receive sensitive background study information for the multiple
32.6licensed programs or services that depend on the same background study; and
32.7    (2) the individual designated to receive the sensitive background study information
32.8is capable of determining, upon request of the department, whether a background study
32.9subject is providing direct contact services in one or more of the license holder's programs
32.10or services and, if so, at which location or locations.
32.11    (b) When a license holder maintains background study compliance for multiple
32.12licensed programs according to paragraph (a), and one or more of the licensed programs
32.13closes, the license holder shall immediately notify the commissioner which staff must be
32.14transferred to an active license so that the background studies can be electronically paired
32.15with the license holder's active program.
32.16    (c) When a background study is being initiated by a licensed program or service or a
32.17foster care provider that is also registered under chapter 144D, a study subject affiliated
32.18with multiple licensed programs or services may attach to the background study form a
32.19cover letter indicating the additional names of the programs or services, addresses, and
32.20background study identification numbers.
32.21    When the commissioner receives a notice, the commissioner shall notify each
32.22program or service identified by the background study subject of the study results.
32.23    The background study notice the commissioner sends to the subsequent agencies
32.24shall satisfy those programs' or services' responsibilities for initiating a background study
32.25on that individual.
32.26(d) If a background study was conducted on an individual related to child foster care
32.27and the requirements under paragraph (a) are met, the background study is transferable
32.28across all licensed programs. If a background study was conducted on an individual under
32.29a license other than child foster care and the requirements under paragraph (a) are met, the
32.30background study is transferable to all licensed programs except child foster care.
32.31(e) The provisions of this section that allow a single background study in one
32.32or more licensed programs or services do not apply to background studies submitted
32.33by adoption agencies, supplemental nursing services agencies, personnel agencies,
32.34educational programs, professional services agencies, and unlicensed personal care
32.35provider organizations.

33.1    Sec. 23. Minnesota Statutes 2010, section 245C.08, subdivision 1, is amended to read:
33.2    Subdivision 1. Background studies conducted by Department of Human
33.3Services. (a) For a background study conducted by the Department of Human Services,
33.4the commissioner shall review:
33.5    (1) information related to names of substantiated perpetrators of maltreatment of
33.6vulnerable adults that has been received by the commissioner as required under section
33.7626.557, subdivision 9c , paragraph (j);
33.8    (2) the commissioner's records relating to the maltreatment of minors in licensed
33.9programs, and from findings of maltreatment of minors as indicated through the social
33.10service information system;
33.11    (3) information from juvenile courts as required in subdivision 4 for individuals
33.12listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;
33.13    (4) information from the Bureau of Criminal Apprehension;
33.14    (5) except as provided in clause (6), information from the national crime information
33.15system when the commissioner has reasonable cause as defined under section 245C.05,
33.16subdivision 5; and
33.17    (6) for a background study related to a child foster care application for licensure or
33.18adoptions, the commissioner shall also review:
33.19    (i) information from the child abuse and neglect registry for any state in which the
33.20background study subject has resided for the past five years; and
33.21    (ii) information from national crime information databases, when the background
33.22study subject is 18 years of age or older.
33.23    (b) Notwithstanding expungement by a court, the commissioner may consider
33.24information obtained under paragraph (a), clauses (3) and (4), unless the commissioner
33.25received notice of the petition for expungement and the court order for expungement is
33.26directed specifically to the commissioner. When the commissioner has reasonable cause to
33.27believe that the identity of a background study subject is uncertain, the commissioner shall
33.28require the subject to provide a set of classifiable fingerprints and may review the subject's
33.29national criminal history record information.

33.30    Sec. 24. Minnesota Statutes 2010, section 245C.14, subdivision 2, is amended to read:
33.31    Subd. 2. Disqualification from access. (a) If an individual who is studied under
33.32section 245C.03, subdivision 1, paragraph (a), clauses (2), (5), and (6), is disqualified from
33.33direct contact under subdivision 1, the commissioner shall also disqualify the individual
33.34from access to a person receiving services from the license holder.
34.1(b) No individual who is disqualified following a background study under section
34.2245C.03, subdivision 1 , paragraph (a), clauses (2), (5), and (6), or as provided elsewhere
34.3in statute who is disqualified as a result of this section, may be allowed access to persons
34.4served by the program unless the commissioner has provided written notice under section
34.5245C.17 stating that:
34.6(1) the individual may remain in direct contact during the period in which the
34.7individual may request reconsideration as provided in section 245C.21, subdivision 2;
34.8(2) the commissioner has set aside the individual's disqualification for that
34.9licensed program or entity identified in section 245C.03 as provided in section 245C.22,
34.10subdivision 4 ; or
34.11(3) the license holder has been granted a variance for the disqualified individual
34.12under section 245C.30.

34.13    Sec. 25. Minnesota Statutes 2010, section 245C.16, subdivision 1, is amended to read:
34.14    Subdivision 1. Determining immediate risk of harm. (a) If the commissioner
34.15determines that the individual studied has a disqualifying characteristic, the commissioner
34.16shall review the information immediately available and make a determination as to the
34.17subject's immediate risk of harm to persons served by the program where the individual
34.18studied will have direct contact with, or access to, people receiving services.
34.19    (b) The commissioner shall consider all relevant information available, including the
34.20following factors in determining the immediate risk of harm:
34.21    (1) the recency of the disqualifying characteristic;
34.22    (2) the recency of discharge from probation for the crimes;
34.23    (3) the number of disqualifying characteristics;
34.24    (4) the intrusiveness or violence of the disqualifying characteristic;
34.25    (5) the vulnerability of the victim involved in the disqualifying characteristic;
34.26    (6) the similarity of the victim to the persons served by the program where the
34.27individual studied will have direct contact;
34.28    (7) whether the individual has a disqualification from a previous background study
34.29that has not been set aside; and
34.30    (8) if the individual has a disqualification which may not be set aside because it is
34.31a permanent bar under section 245C.24, subdivision 1, the commissioner may order the
34.32immediate removal of the individual from any position allowing direct contact with, or
34.33access to, persons receiving services from the program.
35.1    (c) This section does not apply when the subject of a background study is regulated
35.2by a health-related licensing board as defined in chapter 214, and the subject is determined
35.3to be responsible for substantiated maltreatment under section 626.556 or 626.557.
35.4    (d) This section does not apply to a background study related to an initial application
35.5for a child foster care license.
35.6(e) This section does not apply to a background study that is also subject to the
35.7requirements under section 256B.0659, subdivisions 11 and 13, for a personal care
35.8assistant or a qualified professional as defined in section 256B.0659, subdivision 1.
35.9    (e) (f) If the commissioner has reason to believe, based on arrest information or an
35.10active maltreatment investigation, that an individual poses an imminent risk of harm to
35.11persons receiving services, the commissioner may order that the person be continuously
35.12supervised or immediately removed pending the conclusion of the maltreatment
35.13investigation or criminal proceedings.

35.14    Sec. 26. Minnesota Statutes 2010, section 245C.17, subdivision 2, is amended to read:
35.15    Subd. 2. Disqualification notice sent to subject. (a) If the information in the study
35.16indicates the individual is disqualified from direct contact with, or from access to, persons
35.17served by the program, the commissioner shall disclose to the individual studied:
35.18    (1) the information causing disqualification;
35.19    (2) instructions on how to request a reconsideration of the disqualification;
35.20    (3) an explanation of any restrictions on the commissioner's discretion to set aside
35.21the disqualification under section 245C.24, when applicable to the individual;
35.22(4) a statement that, if the individual's disqualification is set aside under section
35.23245C.22, the applicant, license holder, or other entity that initiated the background study
35.24will be provided with the reason for the individual's disqualification and an explanation
35.25that the factors under section 245C.22, subdivision 4, which were the basis of the decision
35.26to set aside the disqualification shall be made available to the license holder upon request
35.27without the consent of the subject of the background study;
35.28    (4) (5) a statement indicating that if the individual's disqualification is set aside or
35.29the facility is granted a variance under section 245C.30, the individual's identity and the
35.30reason for the individual's disqualification will become public data under section 245C.22,
35.31subdivision 7 , when applicable to the individual; and
35.32(6) a statement that when a subsequent background study is initiated on the
35.33individual following a set-aside of the individual's disqualification, and the commissioner
35.34makes a determination under section 245C.22, subdivision 5, paragraph (b), that the
35.35previous set-aside applies to the subsequent background study, the applicant, license
36.1holder, or other entity that initiated the background study will be informed in the notice
36.2under section 245C.22, subdivision 5, paragraph (c):
36.3(i) of the reason for the individual's disqualification;
36.4(ii) that the individual's disqualification is set aside for that program or agency; and
36.5(iii) that information about the factors under section 245C.22, subdivision 4, that
36.6were the basis of the decision to set aside the disqualification are available to the license
36.7holder upon request without the consent of the background study subject; and
36.8    (5) (7) the commissioner's determination of the individual's immediate risk of harm
36.9under section 245C.16.
36.10    (b) If the commissioner determines under section 245C.16 that an individual poses
36.11an imminent risk of harm to persons served by the program where the individual will have
36.12direct contact with, or access to, people receiving services, the commissioner's notice must
36.13include an explanation of the basis of this determination.
36.14    (c) If the commissioner determines under section 245C.16 that an individual studied
36.15does not pose a risk of harm that requires immediate removal, the individual shall be
36.16informed of the conditions under which the agency that initiated the background study
36.17may allow the individual to have direct contact with, or access to, people receiving
36.18services, as provided under subdivision 3.

36.19    Sec. 27. Minnesota Statutes 2010, section 245C.22, subdivision 5, is amended to read:
36.20    Subd. 5. Scope of set-aside. (a) If the commissioner sets aside a disqualification
36.21under this section, the disqualified individual remains disqualified, but may hold a license
36.22and have direct contact with or access to persons receiving services. Except as provided
36.23in paragraph (b), the commissioner's set-aside of a disqualification is limited solely
36.24to the licensed program, applicant, or agency specified in the set aside notice under
36.25section 245C.23, unless otherwise specified in the notice. For personal care provider
36.26organizations, the commissioner's set-aside may further be limited to a specific individual
36.27who is receiving services. For new background studies required under section 245C.04,
36.28subdivision 1, paragraph (i), if an individual's disqualification was previously set aside for
36.29the license holder's program and the new background study results in no new information
36.30that indicates the individual may pose a risk of harm to persons receiving services from
36.31the license holder, the previous set-aside shall remain in effect.
36.32(b) If the commissioner has previously set aside an individual's disqualification
36.33for one or more programs or agencies, and the individual is the subject of a subsequent
36.34background study for a different program or agency, the commissioner shall determine
36.35whether the disqualification is set aside for the program or agency that initiated the
37.1subsequent background study. A notice of a set-aside under paragraph (c) shall be issued
37.2within 15 working days if all of the following criteria are met:
37.3(1) the subsequent background study was initiated in connection with a program
37.4licensed or regulated under the same provisions of law and rule for at least one program
37.5for which the individual's disqualification was previously set aside by the commissioner;
37.6(2) the individual is not disqualified for an offense specified in section 245C.15,
37.7subdivision 1 or 2;
37.8(3) the commissioner has received no new information to indicate that the individual
37.9may pose a risk of harm to any person served by the program; and
37.10(4) the previous set-aside was not limited to a specific person receiving services.
37.11(c) When a disqualification is set aside under paragraph (b), the notice of background
37.12study results issued under section 245C.17, in addition to the requirements under section
37.13245C.17, shall state that the disqualification is set aside for the program or agency that
37.14initiated the subsequent background study. The notice must inform the individual that the
37.15individual may request reconsideration of the disqualification under section 245C.21 on
37.16the basis that the information used to disqualify the individual is incorrect.

37.17    Sec. 28. Minnesota Statutes 2010, section 245C.23, subdivision 2, is amended to read:
37.18    Subd. 2. Commissioner's notice of disqualification that is not set aside. (a) The
37.19commissioner shall notify the license holder of the disqualification and order the license
37.20holder to immediately remove the individual from any position allowing direct contact
37.21with persons receiving services from the license holder if:
37.22    (1) the individual studied does not submit a timely request for reconsideration
37.23under section 245C.21;
37.24    (2) the individual submits a timely request for reconsideration, but the commissioner
37.25does not set aside the disqualification for that license holder under section 245C.22;
37.26    (3) an individual who has a right to request a hearing under sections 245C.27 and
37.27256.045 , or 245C.28 and chapter 14 for a disqualification that has not been set aside, does
37.28not request a hearing within the specified time; or
37.29    (4) an individual submitted a timely request for a hearing under sections 245C.27
37.30and 256.045, or 245C.28 and chapter 14, but the commissioner does not set aside the
37.31disqualification under section 245A.08, subdivision 5, or 256.045.
37.32    (b) If the commissioner does not set aside the disqualification under section 245C.22,
37.33and the license holder was previously ordered under section 245C.17 to immediately
37.34remove the disqualified individual from direct contact with persons receiving services or
37.35to ensure that the individual is under continuous, direct supervision when providing direct
38.1contact services, the order remains in effect pending the outcome of a hearing under
38.2sections 245C.27 and 256.045, or 245C.28 and chapter 14.
38.3(c) If the commissioner does not set aside the disqualification under section
38.4245C.22, and the license holder was not previously ordered to immediately remove the
38.5individual from any position allowing direct contact with persons receiving services from
38.6the program or to ensure that the individual is under continuous, direct supervision when
38.7providing direct contact services, the commissioner shall order the license holder to ensure
38.8that the individual remains under continuous, direct supervision when providing direct
38.9contact services pending the outcome of a hearing under sections 245C.27 and 256.045, or
38.10245C.28 and chapter 14.
38.11    (c) (d) For background studies related to child foster care, the commissioner shall
38.12also notify the county or private agency that initiated the study of the results of the
38.13reconsideration.
38.14(d) (e) For background studies related to adult foster care and family adult day
38.15services, the commissioner shall also notify the county that initiated the study of the
38.16results of the reconsideration.

38.17    Sec. 29. Minnesota Statutes 2010, section 471.709, is amended to read:
38.18471.709 LICENSE; PERMIT.
38.19    Notwithstanding any law to the contrary, a municipality shall not require a massage
38.20therapist to obtain a license or permit when the therapist is working for or an employee of
38.21is hired or employed by, and exclusively provides treatment on the premises of, a medical
38.22professional licensed under chapter 147 or 148 or a dental professional licensed under
38.23chapter 150A. A massage therapist is not limited to providing treatment to patients of the
38.24medical or dental professional.

38.25    Sec. 30. REVISOR'S INSTRUCTION.
38.26The revisor shall renumber Minnesota Statutes, section 245B.05, subdivision 4, as
38.27Minnesota Statutes, section 245A.04, subdivision 2a. The revisor shall make necessary
38.28cross-reference changes to effectuate this renumbering.


38.31    Section 1. Minnesota Statutes 2010, section 245A.04, subdivision 1, is amended to
38.32read:
39.1    Subdivision 1. Application for licensure. (a) An individual, corporation,
39.2partnership, voluntary association, other organization or controlling individual that is
39.3subject to licensure under section 245A.03 must apply for a license. The application
39.4must be made on the forms and in the manner prescribed by the commissioner. The
39.5commissioner shall provide the applicant with instruction in completing the application
39.6and provide information about the rules and requirements of other state agencies that affect
39.7the applicant. An applicant seeking licensure in Minnesota with headquarters outside of
39.8Minnesota must have a program office located within the state.
39.9The commissioner shall act on the application within 90 working days after a
39.10complete application and any required reports have been received from other state
39.11agencies or departments, counties, municipalities, or other political subdivisions. The
39.12commissioner shall not consider an application to be complete until the commissioner
39.13receives all of the information required under section 245C.05.
39.14(b) An application for licensure must specify one or more controlling individuals as
39.15an agent who is responsible for dealing with the commissioner of human services on all
39.16matters provided for in this chapter and on whom service of all notices and orders must be
39.17made. The agent must be authorized to accept service on behalf of all of the controlling
39.18individuals of the program. Service on the agent is service on all of the controlling
39.19individuals of the program. It is not a defense to any action arising under this chapter that
39.20service was not made on each controlling individual of the program. The designation of
39.21one or more controlling individuals as agents under this paragraph does not affect the legal
39.22responsibility of any other controlling individual under this chapter.
39.23(c) An applicant or license holder must have a policy that prohibits license holders,
39.24employees, subcontractors, and volunteers, when directly responsible for persons served
39.25by the program, from abusing prescription medication or being in any manner under
39.26the influence of a chemical that impairs the individual's ability to provide services or
39.27care. The license holder must train employees, subcontractors, and volunteers about the
39.28program's drug and alcohol policy.
39.29(d) An applicant and license holder must have a program grievance procedure that
39.30permits persons served by the program and their authorized representatives to bring a
39.31grievance to the highest level of authority in the program.
39.32(e) At the time of application for licensure or renewal of a license, the applicant
39.33or license holder must acknowledge on the form provided by the commissioner if the
39.34applicant or license holder elects to receive any public funding reimbursement from the
39.35commissioner for services provided under the license that:
40.1(1) the applicant's or license holder's compliance with the provider enrollment
40.2agreement or registration requirements for receipt of public funding may be monitored by
40.3the commissioner as part of a licensing investigation or licensing inspection; and
40.4(2) noncompliance with the provider enrollment agreement or registration
40.5requirements for receipt of public funding that is identified through a licensing
40.6investigation or licensing inspection, or noncompliance with a licensing requirement that
40.7is a basis of enrollment for reimbursement for a service, may result in:
40.8(i) a correction order or a conditional license under section 245A.06, or sanctions
40.9under section 245A.07;
40.10(ii) nonpayment of claims submitted by the license holder for public program
40.11reimbursement;
40.12(iii) recovery of payments made for the service;
40.13(iv) disenrollment in the public payment program; or
40.14(v) other administrative, civil, or criminal penalties as provided by law.

40.15    Sec. 2. Minnesota Statutes 2010, section 245A.14, is amended by adding a subdivision
40.16to read:
40.17    Subd. 14. Attendance records for publicly funded services. (a) A child care
40.18center licensed under this chapter and according to Minnesota Rules, chapter 9503, must
40.19maintain documentation of actual attendance for each child receiving care for which the
40.20license holder is reimbursed by a governmental program. The records must be accessible
40.21to the commissioner during the program's hours of operation, they must be completed on
40.22the actual day of attendance, and they must include:
40.23(1) the first and last name of the child;
40.24(2) the time of day that the child was dropped off; and
40.25(3) the time of day that the child was picked up.
40.26(b) A family child care provider licensed under this chapter and according to
40.27Minnesota Rules, chapter 9502, must maintain documentation of actual attendance for
40.28each child receiving care for which the license holder is reimbursed by a governmental
40.29program. The records must be accessible to the commissioner during the program's
40.30hours of operation, they must be completed on the actual day of attendance, and they
40.31must include:
40.32(1) the first and last name of the child;
40.33(2) the time of day that the child was dropped off; and
40.34(3) the time of day that the child was picked up.
41.1(c) An adult day services program licensed under this chapter and according to
41.2Minnesota Rules, parts 9555.5105 to 9555.6265, must maintain documentation of actual
41.3attendance for each adult day service recipient for which the license holder is reimbursed
41.4by a governmental program. The records must be accessible to the commissioner during
41.5the program's hours of operation, they must be completed on the actual day of attendance,
41.6and they must include:
41.7(1) the first, middle, and last name of the recipient;
41.8(2) the time of day that the recipient was dropped off; and
41.9(3) the time of day that the recipient was picked up.
41.10(d) The commissioner shall not issue a correction for attendance record errors that
41.11occur before August 1, 2013.

41.12    Sec. 3. [245A.167] PUBLIC FUNDS PROGRAM INTEGRITY MONITORING.
41.13(a) An applicant or a license holder that has enrolled to receive public funding
41.14reimbursement for services is required to comply with the registration or enrollment
41.15requirements as licensing standards.
41.16(b) Compliance with the licensing standards established under paragraph (a) may
41.17be monitored during a licensing investigation or inspection. Noncompliance with these
41.18licensure standards may result in:
41.19(i) a correction order or a conditional license under section 245A.06, or sanctions
41.20under section 245A.07;
41.21(ii) nonpayment of claims submitted by the license holder for public program
41.22reimbursement according to the statute applicable to that program;
41.23(iii) recovery of payments made for the service according to the statute applicable to
41.24that program;
41.25(iv) disenrollment in the public payment program according to the statute applicable
41.26to that program; or
41.27(v) a referral for other administrative, civil, or criminal penalties as provided by law.

41.28    Sec. 4. Minnesota Statutes 2011 Supplement, section 256B.04, subdivision 21, is
41.29amended to read:
41.30    Subd. 21. Provider enrollment. (a) If the commissioner or the Centers for
41.31Medicare and Medicaid Services determines that a provider is designated "high-risk," the
41.32commissioner may withhold payment from providers within that category upon initial
41.33enrollment for a 90-day period. The withholding for each provider must begin on the date
41.34of the first submission of a claim.
42.1(b) An enrolled provider that is also licensed by the commissioner under chapter
42.2245A must designate an individual as the entity's compliance officer. The compliance
42.3officer must:
42.4(1) develop policies and procedures to assure adherence to medical assistance laws
42.5and regulations and to prevent inappropriate claims submissions;
42.6(2) train the employees of the provider entity, and any agents or subcontractors of
42.7the provider entity including billers, on the policies and procedures under clause (1);
42.8(3) respond to allegations of improper conduct related to the provision or billing of
42.9medical assistance services, and implement action to remediate any resulting problems;
42.10(4) use evaluation techniques to monitor compliance with medical assistance laws
42.11and regulations;
42.12(5) promptly report to the commissioner any identified violations of medical
42.13assistance laws or regulations; and
42.14    (6) within 60 days of discovery by the provider of a medical assistance
42.15reimbursement overpayment, report the overpayment to the commissioner and make
42.16arrangements with the commissioner for the commissioner's recovery of the overpayment.
42.17The commissioner may require, as a condition of enrollment in medical assistance, that a
42.18provider within a particular industry sector or category establish a compliance program that
42.19contains the core elements established by the Centers for Medicare and Medicaid Services.
42.20(c) The commissioner may revoke the enrollment of an ordering or rendering
42.21provider for a period of not more than one year, if the provider fails to maintain and, upon
42.22request from the commissioner, provide access to documentation relating to written orders
42.23or requests for payment for durable medical equipment, certifications for home health
42.24services, or referrals for other items or services written or ordered by such provider, when
42.25the commissioner has identified a pattern of a lack of documentation. A pattern means a
42.26failure to maintain documentation or provide access to documentation on more than one
42.27occasion. Nothing in this paragraph limits the authority of the commissioner to sanction a
42.28provider under the provisions of section 256B.064.
42.29(d) The commissioner shall terminate or deny the enrollment of any individual or
42.30entity if the individual or entity has been terminated from participation in Medicare or
42.31under the Medicaid program or Children's Health Insurance Program of any other state.
42.32(e) As a condition of enrollment in medical assistance, the commissioner shall
42.33require that a provider designated "moderate" or "high-risk" by the Centers for Medicare
42.34and Medicaid Services or the Minnesota Department of Human Services permit the
42.35Centers for Medicare and Medicaid Services, its agents, or its designated contractors and
43.1the state agency, its agents, or its designated contractors to conduct unannounced on-site
43.2inspections of any provider location.
43.3(f) As a condition of enrollment in medical assistance, the commissioner shall
43.4require that a high-risk provider, or a person with a direct or indirect ownership interest in
43.5the provider of five percent or higher, consent to criminal background checks, including
43.6fingerprinting, when required to do so under state law or by a determination by the
43.7commissioner or the Centers for Medicare and Medicaid Services that a provider is
43.8designated high-risk for fraud, waste, or abuse."
43.9Renumber the sections in sequence and correct the internal references
43.10Amend the title accordingly