1.1.................... moves to amend H.F. No. 1114 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. Minnesota Statutes 2012, section 13.46, subdivision 3, is amended to read:
1.6    Subd. 3. Investigative data. (a) Data on persons, including data on vendors of
1.7services, licensees, and applicants that is collected, maintained, used, or disseminated
1.8by the welfare system in an investigation, authorized by statute, and relating to the
1.9enforcement of rules or law are confidential data on individuals pursuant to section 13.02,
1.10subdivision 3 , or protected nonpublic data not on individuals pursuant to section 13.02,
1.11subdivision 13 , and shall not be disclosed except:
1.12(1) pursuant to section 13.05;
1.13(2) pursuant to statute or valid court order;
1.14(3) to a party named in a civil or criminal proceeding, administrative or judicial, for
1.15preparation of defense; or
1.16(4) to provide notices required or permitted by statute.
1.17The data referred to in this subdivision shall be classified as public data upon
1.18submission to an administrative law judge or court in an administrative or judicial
1.19proceeding. Inactive welfare investigative data shall be treated as provided in section
1.2013.39, subdivision 3 .
1.21(b) Notwithstanding any other provision in law, the commissioner of human services
1.22shall provide all active and inactive investigative data, including the name of the reporter
1.23of alleged maltreatment under section 626.556 or 626.557, to the ombudsman for mental
1.24health and developmental disabilities upon the request of the ombudsman.
1.25    (c) Notwithstanding paragraph (a) and section 13.39, the existence of an
1.26investigation by the commissioner of possible overpayments of public funds to a service
2.1provider is public data during an investigation or recipient may be disclosed if the
2.2commissioner determines that it will not compromise the investigation.

2.3    Sec. 2. Minnesota Statutes 2012, section 13.46, subdivision 4, is amended to read:
2.4    Subd. 4. Licensing data. (a) As used in this subdivision:
2.5    (1) "licensing data" are all data collected, maintained, used, or disseminated by the
2.6welfare system pertaining to persons licensed or registered or who apply for licensure
2.7or registration or who formerly were licensed or registered under the authority of the
2.8commissioner of human services;
2.9    (2) "client" means a person who is receiving services from a licensee or from an
2.10applicant for licensure; and
2.11    (3) "personal and personal financial data" are Social Security numbers, identity
2.12of and letters of reference, insurance information, reports from the Bureau of Criminal
2.13Apprehension, health examination reports, and social/home studies.
2.14    (b)(1)(i) Except as provided in paragraph (c), the following data on applicants,
2.15license holders, and former licensees are public: name, address, telephone number of
2.16licensees, date of receipt of a completed application, dates of licensure, licensed capacity,
2.17type of client preferred, variances granted, record of training and education in child care
2.18and child development, type of dwelling, name and relationship of other family members,
2.19previous license history, class of license, the existence and status of complaints, and the
2.20number of serious injuries to or deaths of individuals in the licensed program as reported
2.21to the commissioner of human services, the local social services agency, or any other
2.22county welfare agency. For purposes of this clause, a serious injury is one that is treated
2.23by a physician.
2.24(ii) When a correction order, an order to forfeit a fine, an order of license suspension,
2.25an order of temporary immediate suspension, an order of license revocation, an order of
2.26license denial, or an order of conditional license has been issued, or a complaint is resolved,
2.27the following data on current and former licensees and applicants are public: the general
2.28nature of the complaint or allegations leading to the temporary immediate suspension; the
2.29substance and investigative findings of the licensing or maltreatment complaint, licensing
2.30violation, or substantiated maltreatment; the existence of settlement negotiations; the
2.31record of informal resolution of a licensing violation; orders of hearing; findings of fact;
2.32conclusions of law; specifications of the final correction order, fine, suspension, temporary
2.33immediate suspension, revocation, denial, or conditional license contained in the record of
2.34licensing action; whether a fine has been paid; and the status of any appeal of these actions.
3.1(iii) When a license denial under section 245A.05 or a sanction under section
3.2245A.07 is based on a determination that the a license holder or, applicant, or controlling
3.3individual is responsible for maltreatment under section 626.556 or 626.557, the identity
3.4of the applicant or, license holder, or controlling individual as the individual responsible
3.5for maltreatment is public data at the time of the issuance of the license denial or sanction.
3.6(iv) When a license denial under section 245A.05 or a sanction under section
3.7245A.07 is based on a determination that the a license holder or, applicant, or controlling
3.8individual is disqualified under chapter 245C, the identity of the license holder or,
3.9 applicant, or controlling individual as the disqualified individual and the reason for
3.10the disqualification are public data at the time of the issuance of the licensing sanction
3.11or denial. If the applicant or, license holder, or controlling individual requests
3.12reconsideration of the disqualification and the disqualification is affirmed, the reason for
3.13the disqualification and the reason to not set aside the disqualification are public data.
3.14    (2) Notwithstanding sections 626.556, subdivision 11, and 626.557, subdivision 12b,
3.15when any person subject to disqualification under section 245C.14 in connection with a
3.16license to provide family day care for children, child care center services, foster care for
3.17children in the provider's home, or foster care or day care services for adults in the provider's
3.18home is a substantiated perpetrator of maltreatment, and the substantiated maltreatment is
3.19a reason for a licensing action, the identity of the substantiated perpetrator of maltreatment
3.20is public data. For purposes of this clause, a person is a substantiated perpetrator if the
3.21maltreatment determination has been upheld under section 256.045; 626.556, subdivision
3.2210i ; 626.557, subdivision 9d; or chapter 14, or if an individual or facility has not timely
3.23exercised appeal rights under these sections, except as provided under clause (1).
3.24    (3) For applicants who withdraw their application prior to licensure or denial of a
3.25license, the following data are public: the name of the applicant, the city and county in
3.26which the applicant was seeking licensure, the dates of the commissioner's receipt of the
3.27initial application and completed application, the type of license sought, and the date
3.28of withdrawal of the application.
3.29    (4) For applicants who are denied a license, the following data are public: the
3.30name and address of the applicant, the city and county in which the applicant was
3.31seeking licensure, the dates of the commissioner's receipt of the initial application and
3.32completed application, the type of license sought, the date of denial of the application, the
3.33nature of the basis for the denial, the existence of settlement negotiations, the record of
3.34informal resolution of a denial, orders of hearings, findings of fact, conclusions of law,
3.35specifications of the final order of denial, and the status of any appeal of the denial.
4.1    (5) The following data on persons subject to disqualification under section 245C.14 in
4.2connection with a license to provide family day care for children, child care center services,
4.3foster care for children in the provider's home, or foster care or day care services for adults
4.4in the provider's home, are public: the nature of any disqualification set aside under section
4.5245C.22 , subdivisions 2 and 4, and the reasons for setting aside the disqualification; the
4.6nature of any disqualification for which a variance was granted under sections 245A.04,
4.7subdivision 9 ; and 245C.30, and the reasons for granting any variance under section
4.8245A.04, subdivision 9 ; and, if applicable, the disclosure that any person subject to
4.9a background study under section 245C.03, subdivision 1, has successfully passed a
4.10background study. If a licensing sanction under section 245A.07, or a license denial under
4.11section 245A.05, is based on a determination that an individual subject to disqualification
4.12under chapter 245C is disqualified, the disqualification as a basis for the licensing sanction
4.13or denial is public data. As specified in clause (1), item (iv), if the disqualified individual
4.14is the license holder or, applicant, or controlling individual, the identity of the license
4.15holder or, applicant, or controlling individual and the reason for the disqualification are
4.16public data; and, if the license holder or, applicant, or controlling individual requested
4.17reconsideration of the disqualification and the disqualification is affirmed, the reason for
4.18the disqualification and the reason to not set aside the disqualification are public data. If
4.19the disqualified individual is an individual other than the license holder or, applicant, or
4.20controlling individual, the identity of the disqualified individual shall remain private data.
4.21    (6) When maltreatment is substantiated under section 626.556 or 626.557 and the
4.22victim and the substantiated perpetrator are affiliated with a program licensed under
4.23chapter 245A, the commissioner of human services, local social services agency, or
4.24county welfare agency may inform the license holder where the maltreatment occurred of
4.25the identity of the substantiated perpetrator and the victim.
4.26    (7) Notwithstanding clause (1), for child foster care, only the name of the license
4.27holder and the status of the license are public if the county attorney has requested that data
4.28otherwise classified as public data under clause (1) be considered private data based on the
4.29best interests of a child in placement in a licensed program.
4.30    (c) The following are private data on individuals under section 13.02, subdivision
4.3112 , or nonpublic data under section 13.02, subdivision 9: personal and personal financial
4.32data on family day care program and family foster care program applicants and licensees
4.33and their family members who provide services under the license.
4.34    (d) The following are private data on individuals: the identity of persons who have
4.35made reports concerning licensees or applicants that appear in inactive investigative data,
4.36and the records of clients or employees of the licensee or applicant for licensure whose
5.1records are received by the licensing agency for purposes of review or in anticipation of a
5.2contested matter. The names of reporters of complaints or alleged violations of licensing
5.3standards under chapters 245A, 245B, 245C, and applicable rules and alleged maltreatment
5.4under sections 626.556 and 626.557, are confidential data and may be disclosed only as
5.5provided in section 626.556, subdivision 11, or 626.557, subdivision 12b.
5.6    (e) Data classified as private, confidential, nonpublic, or protected nonpublic under
5.7this subdivision become public data if submitted to a court or administrative law judge as
5.8part of a disciplinary proceeding in which there is a public hearing concerning a license
5.9which has been suspended, immediately suspended, revoked, or denied.
5.10    (f) Data generated in the course of licensing investigations that relate to an alleged
5.11violation of law are investigative data under subdivision 3.
5.12    (g) Data that are not public data collected, maintained, used, or disseminated under
5.13this subdivision that relate to or are derived from a report as defined in section 626.556,
5.14subdivision 2 , or 626.5572, subdivision 18, are subject to the destruction provisions of
5.15sections 626.556, subdivision 11c, and 626.557, subdivision 12b.
5.16    (h) Upon request, not public data collected, maintained, used, or disseminated under
5.17this subdivision that relate to or are derived from a report of substantiated maltreatment as
5.18defined in section 626.556 or 626.557 may be exchanged with the Department of Health
5.19for purposes of completing background studies pursuant to section 144.057 and with
5.20the Department of Corrections for purposes of completing background studies pursuant
5.21to section 241.021.
5.22    (i) Data on individuals collected according to licensing activities under chapters
5.23245A and 245C, data on individuals collected by the commissioner of human services
5.24according to investigations under chapters 245A, 245B, and 245C, and sections 626.556
5.25and 626.557 may be shared with the Department of Human Rights, the Department
5.26of Health, the Department of Corrections, the ombudsman for mental health and
5.27developmental disabilities, and the individual's professional regulatory board when there
5.28is reason to believe that laws or standards under the jurisdiction of those agencies may
5.29have been violated or the information may otherwise be relevant to the board's regulatory
5.30jurisdiction. Background study data on an individual who is the subject of a background
5.31study under chapter 245C for a licensed service for which the commissioner of human
5.32services is the license holder may be shared with the commissioner and the commissioner's
5.33delegate by the licensing division. Unless otherwise specified in this chapter, the identity
5.34of a reporter of alleged maltreatment or licensing violations may not be disclosed.
5.35    (j) In addition to the notice of determinations required under section 626.556,
5.36subdivision 10f , if the commissioner or the local social services agency has determined
6.1that an individual is a substantiated perpetrator of maltreatment of a child based on sexual
6.2abuse, as defined in section 626.556, subdivision 2, and the commissioner or local social
6.3services agency knows that the individual is a person responsible for a child's care in
6.4another facility, the commissioner or local social services agency shall notify the head
6.5of that facility of this determination. The notification must include an explanation of the
6.6individual's available appeal rights and the status of any appeal. If a notice is given under
6.7this paragraph, the government entity making the notification shall provide a copy of the
6.8notice to the individual who is the subject of the notice.
6.9    (k) All not public data collected, maintained, used, or disseminated under this
6.10subdivision and subdivision 3 may be exchanged between the Department of Human
6.11Services, Licensing Division, and the Department of Corrections for purposes of
6.12regulating services for which the Department of Human Services and the Department
6.13of Corrections have regulatory authority.


6.16    Section 1. Minnesota Statutes 2012, section 119B.125, subdivision 1b, is amended to
6.17read:
6.18    Subd. 1b. Training required. (a) Effective November 1, 2011, prior to initial
6.19authorization as required in subdivision 1, a legal nonlicensed family child care provider
6.20must complete first aid and CPR training and provide the verification of first aid and CPR
6.21training to the county. The training documentation must have valid effective dates as of
6.22the date the registration request is submitted to the county and. The training must have
6.23been provided by an individual approved to provide first aid and CPR instruction and have
6.24included CPR techniques for infants and children.
6.25(b) Legal nonlicensed family child care providers with an authorization effective
6.26before November 1, 2011, must be notified of the requirements before October 1, 2011, or
6.27at authorization, and must meet the requirements upon renewal of an authorization that
6.28occurs on or after January 1, 2012.
6.29(c) Upon each reauthorization after the authorization period when the initial first aid
6.30and CPR training requirements are met, a legal nonlicensed family child care provider
6.31must provide verification of at least eight hours of additional training listed in the
6.32Minnesota Center for Professional Development Registry.
6.33(d) This subdivision only applies to legal nonlicensed family child care providers.

6.34    Sec. 2. Minnesota Statutes 2012, section 245A.02, subdivision 5a, is amended to read:
7.1    Subd. 5a. Controlling individual. "Controlling individual" means a public body,
7.2governmental agency, business entity, officer, owner, or managerial official whose
7.3responsibilities include the direction of the management or policies of a program. For
7.4purposes of this subdivision, owner means an individual who has direct or indirect
7.5ownership interest in a corporation, partnership, or other business association issued a
7.6license under this chapter. For purposes of this subdivision, managerial official means
7.7those individuals who have the decision-making authority related to the operation of
7.8the program, and the responsibility for the ongoing management of or direction of the
7.9policies, services, or employees of the program. A site director who has no ownership
7.10interest in the program is not considered to be a managerial official for purposes of this
7.11definition. Controlling individual does not include:
7.12    (1) a bank, savings bank, trust company, savings association, credit union, industrial
7.13loan and thrift company, investment banking firm, or insurance company unless the entity
7.14operates a program directly or through a subsidiary;
7.15    (2) an individual who is a state or federal official, or state or federal employee, or a
7.16member or employee of the governing body of a political subdivision of the state or
7.17federal government that operates one or more programs, unless the individual is also an
7.18officer, owner, or managerial official of the program, receives remuneration from the
7.19program, or owns any of the beneficial interests not excluded in this subdivision;
7.20    (3) an individual who owns less than five percent of the outstanding common
7.21shares of a corporation:
7.22    (i) whose securities are exempt under section 80A.45, clause (6); or
7.23    (ii) whose transactions are exempt under section 80A.46, clause (2); or
7.24    (4) an individual who is a member of an organization exempt from taxation under
7.25section 290.05, unless the individual is also an officer, owner, or managerial official of
7.26the program or owns any of the beneficial interests not excluded in this subdivision. This
7.27clause does not exclude from the definition of controlling individual an organization that
7.28is exempt from taxation.

7.29    Sec. 3. Minnesota Statutes 2012, section 245A.04, subdivision 1, is amended to read:
7.30    Subdivision 1. Application for licensure. (a) An individual, corporation,
7.31partnership, voluntary association, other organization or controlling individual that is
7.32subject to licensure under section 245A.03 must apply for a license. The application
7.33must be made on the forms and in the manner prescribed by the commissioner. The
7.34commissioner shall provide the applicant with instruction in completing the application
7.35and provide information about the rules and requirements of other state agencies that affect
8.1the applicant. An applicant seeking licensure in Minnesota with headquarters outside of
8.2Minnesota must have a program office located within the state.
8.3The commissioner shall act on the application within 90 working days after a
8.4complete application and any required reports have been received from other state
8.5agencies or departments, counties, municipalities, or other political subdivisions. The
8.6commissioner shall not consider an application to be complete until the commissioner
8.7receives all of the information required under section 245C.05.
8.8When the commissioner receives an application for initial licensure that is incomplete
8.9because the applicant failed to submit required documents or that is substantially
8.10deficient because the documents submitted do not meet licensing requirements, the
8.11commissioner shall provide the applicant written notice that the application is incomplete
8.12or substantially deficient. In the written notice to the applicant the commissioner shall
8.13identify documents that are missing or deficient and give the applicant 45 days to resubmit
8.14a second application that is substantially complete. An applicant's failure to submit a
8.15substantially complete application after receiving notice from the commissioner is a basis
8.16for license denial under section 245A.05.
8.17(b) An application for licensure must identify all controlling individuals and must
8.18specify an agent who is responsible for dealing with the commissioner of human services
8.19on all matters provided for in this chapter and on whom service of all notices and orders
8.20must be made. The agent must be authorized to accept service on behalf of all of the
8.21controlling individuals of the program. Service on the agent is service on all of the
8.22controlling individuals of the program. It is not a defense to any action arising under this
8.23chapter that service was not made on each controlling individual of the program. The
8.24designation of one or more controlling individuals as agents under this paragraph does not
8.25affect the legal responsibility of any other controlling individual under this chapter.
8.26(c) An applicant or license holder must have a policy that prohibits license holders,
8.27employees, subcontractors, and volunteers, when directly responsible for persons served
8.28by the program, from abusing prescription medication or being in any manner under
8.29the influence of a chemical that impairs the individual's ability to provide services or
8.30care. The license holder must train employees, subcontractors, and volunteers about the
8.31program's drug and alcohol policy.
8.32(d) An applicant and license holder must have a program grievance procedure that
8.33permits persons served by the program and their authorized representatives to bring a
8.34grievance to the highest level of authority in the program.
8.35(e) The applicant must be able to demonstrate competent knowledge of the
8.36applicable requirements of this chapter and chapter 245C, and the requirements of
9.1other licensing statutes and rules applicable to the program or services for which the
9.2applicant is seeking to be licensed. Effective January 1, 2013, the commissioner may
9.3require the applicant, except for child foster care, to demonstrate competence in the
9.4applicable licensing requirements by successfully completing a written examination. The
9.5commissioner may develop a prescribed written examination format.
9.6(f) When an applicant is an individual, the individual must provide:
9.7(1) the applicant's taxpayer identification numbers including the Social Security
9.8number, and federal employer identification number, if the applicant has employees;
9.9(2) the complete business name, if any, and if doing business under a different name,
9.10the doing business as (DBA) name, as registered with the secretary of state; and
9.11(3) a notarized signature of the applicant.
9.12(g) When an applicant is a nonindividual, the applicant must provide the:
9.13(1) applicant's taxpayer identification numbers including the Minnesota tax
9.14identification number, the and federal employer identification number;
9.15(2) complete business name, and if doing business under a different name, the doing
9.16business as (DBA) name, as registered with the secretary of state;
9.17(3) first, middle, and last name, and address for all individuals who will be
9.18controlling individuals, including all officers, owners, and managerial officials as defined
9.19in section 245A.02, subdivision 5a, and the date that the background study was initiated
9.20by the applicant for each controlling individual. The applicant must also provide the; and
9.21(4) first, middle, and last name, mailing address, and notarized signature of the agent
9.22authorized by the applicant to accept service on behalf of the controlling individuals.
9.23(h) At the time of application for licensure or renewal of a license, the applicant
9.24or license holder must acknowledge on the form provided by the commissioner if the
9.25applicant or license holder elects to receive any public funding reimbursement from the
9.26commissioner for services provided under the license that:
9.27(1) the applicant's or license holder's compliance with the provider enrollment
9.28agreement or registration requirements for receipt of public funding may be monitored by
9.29the commissioner as part of a licensing investigation or licensing inspection; and
9.30(2) noncompliance with the provider enrollment agreement or registration
9.31requirements for receipt of public funding that is identified through a licensing
9.32investigation or licensing inspection, or noncompliance with a licensing requirement that
9.33is a basis of enrollment for reimbursement for a service, may result in:
9.34(i) a correction order or a conditional license under section 245A.06, or sanctions
9.35under section 245A.07;
10.1(ii) nonpayment of claims submitted by the license holder for public program
10.2reimbursement;
10.3(iii) recovery of payments made for the service;
10.4(iv) disenrollment in the public payment program; or
10.5(v) other administrative, civil, or criminal penalties as provided by law.

10.6    Sec. 4. Minnesota Statutes 2012, section 245A.04, subdivision 5, is amended to read:
10.7    Subd. 5. Commissioner's right of access. (a) When the commissioner is exercising
10.8the powers conferred by this chapter and sections 245.69, 626.556, and 626.557, the
10.9commissioner must be given access to:
10.10(1) the physical plant and grounds where the program is provided,;
10.11(2) documents and records, including records maintained in electronic format,;
10.12(3) persons served by the program,; and
10.13(4) staff and personnel records of current and former staff whenever the program is in
10.14operation and the information is relevant to inspections or investigations conducted by the
10.15commissioner. Upon request, the license holder must provide the commissioner verification
10.16of documentation of staff work experience, training, or educational requirements.
10.17The commissioner must be given access without prior notice and as often as
10.18the commissioner considers necessary if the commissioner is investigating alleged
10.19maltreatment, conducting a licensing inspection, or investigating an alleged violation of
10.20applicable laws or rules. In conducting inspections, the commissioner may request and
10.21shall receive assistance from other state, county, and municipal governmental agencies and
10.22departments. The applicant or license holder shall allow the commissioner to photocopy,
10.23photograph, and make audio and video tape recordings during the inspection of the
10.24program at the commissioner's expense. The commissioner shall obtain a court order or
10.25the consent of the subject of the records or the parents or legal guardian of the subject
10.26before photocopying hospital medical records.
10.27(b) Persons served by the program have the right to refuse to consent to be
10.28interviewed, photographed, or audio or videotaped. Failure or refusal of an applicant
10.29or license holder to fully comply with this subdivision is reasonable cause for the
10.30commissioner to deny the application or immediately suspend or revoke the license.

10.31    Sec. 5. Minnesota Statutes 2012, section 245A.04, subdivision 11, is amended to read:
10.32    Subd. 11. Education program; permitted ages, additional requirement. (a)
10.33Except for foster care, the commissioner of human services may not grant a license to a
10.34residential facility for the placement of children before the commissioner has received
11.1documentation of approval of the on-site educational program from the commissioner of
11.2education according to section 125A.515.
11.3    (b) A program licensed by the commissioner under Minnesota Rules, chapter 2960,
11.4may serve persons who are over the age of 18 but under the age of 21 when the person is:
11.5(1) completing secondary education or a program leading to an equivalent credential;
11.6(2) enrolled in an institution which provides postsecondary or vocational education;
11.7(3) participating in a program or activity designed to promote, or remove barriers to,
11.8employment;
11.9(4) employed for at least 80 hours per month; or
11.10(5) incapable of doing any of the activities described in clauses (1) to (4) due to a
11.11medical condition, which incapability is supported by regularly updated information in the
11.12case plan of the person.
11.13(c) In addition to the requirements in paragraph (b), a residential program licensed
11.14by the commissioner of human services under Minnesota Rules, parts 2960.0010 to
11.152960.0710, may serve persons under the age of 21 provided the facility complies with the
11.16following requirements:
11.17(1) for each person age 18 and older served at the program, the program must assess
11.18and document the person's risk of victimizing other residents residing in the facility, and
11.19based on the assessment, the facility must develop and implement necessary measures
11.20to minimize any risk of harm to other residents, including making arrangements for
11.21appropriate sleeping arrangements; and
11.22(2) the program must assure that the services and living arrangements provided to all
11.23residents are suitable to the age and functioning of the residents, including separation of
11.24services, staff supervision, and other program operations as appropriate.
11.25(d) Nothing in this subdivision precludes the license holder from seeking other
11.26variances under subdivision 9.

11.27    Sec. 6. Minnesota Statutes 2012, section 245A.06, subdivision 1, is amended to read:
11.28    Subdivision 1. Contents of correction orders and conditional licenses. (a) If
11.29the commissioner finds that the applicant or license holder has failed to comply with an
11.30applicable law or rule and this failure does not imminently endanger the health, safety,
11.31or rights of the persons served by the program, the commissioner may issue a correction
11.32order and an order of conditional license to the applicant or license holder. When issuing a
11.33conditional license, the commissioner shall consider the nature, chronicity, or severity of
11.34the violation of law or rule and the effect of the violation on the health, safety, or rights of
11.35persons served by the program. The correction order or conditional license must state:
12.1(1) the conditions that constitute a violation of the law or rule;
12.2(2) the specific law or rule violated;
12.3(3) the time allowed to correct each violation; and
12.4(4) if a license is made conditional, the length and terms of the conditional license.
12.5(b) Nothing in this section prohibits the commissioner from proposing a sanction as
12.6specified in section 245A.07, prior to issuing a correction order or conditional license.
12.7(c) The commissioner may also issue a conditional license when a background study
12.8subject who is disqualified and has been ordered immediately removed continues to be
12.9affiliated with the license holder in some manner.

12.10    Sec. 7. Minnesota Statutes 2012, section 245A.07, subdivision 2, is amended to read:
12.11    Subd. 2. Temporary immediate suspension. If the license holder's actions or
12.12failure to comply with applicable law or rule, or the actions of other individuals or
12.13conditions in the program pose an imminent risk of harm to the health, safety, or rights of
12.14persons served by the program, or if the commissioner identifies a pattern of continued
12.15noncompliance by a license holder that continues operating under an appeal of an order
12.16of revocation issued under this section, the commissioner shall act immediately to
12.17temporarily suspend the license. No state funds shall be made available or be expended by
12.18any agency or department of state, county, or municipal government for use by a license
12.19holder regulated under this chapter while a license is under immediate suspension. A
12.20notice stating the reasons for the immediate suspension and informing the license holder
12.21of the right to an expedited hearing under chapter 14 and specifically Minnesota Rules,
12.22parts 1400.8505 to 1400.8612, must be delivered by personal service to the address
12.23shown on the application or the last known address of the license holder. The license
12.24holder may appeal an order immediately suspending a license. The appeal of an order
12.25immediately suspending a license must be made in writing by certified mail or personal
12.26service. If mailed, the appeal must be postmarked and sent to the commissioner within
12.27five calendar days after the license holder receives notice that the license has been
12.28immediately suspended. If a request is made by personal service, it must be received by
12.29the commissioner within five calendar days after the license holder received the order. A
12.30license holder and any controlling individual shall discontinue operation of the program
12.31upon receipt of the commissioner's order to immediately suspend the license.

12.32    Sec. 8. Minnesota Statutes 2012, section 245A.07, subdivision 3, is amended to read:
12.33    Subd. 3. License suspension, revocation, or fine. (a) The commissioner may
12.34suspend or revoke a license, or impose a fine if:
13.1(1) a license holder fails to comply fully with applicable laws or rules;
13.2(2) a license holder, a controlling individual, or an individual living in the household
13.3where the licensed services are provided or is otherwise subject to a background study has
13.4a disqualification which has not been set aside under section 245C.22;
13.5(3) a license holder knowingly withholds relevant information from or gives false
13.6or misleading information to the commissioner in connection with an application for
13.7a license, in connection with the background study status of an individual, during an
13.8investigation, or regarding compliance with applicable laws or rules; or
13.9(4) after July 1, 2012, and upon request by the commissioner, a license holder fails
13.10to submit the information required of an applicant under section 245A.04, subdivision 1,
13.11paragraph (f) or (g).
13.12A license holder who has had a license suspended, revoked, or has been ordered
13.13to pay a fine must be given notice of the action by certified mail or personal service. If
13.14mailed, the notice must be mailed to the address shown on the application or the last
13.15known address of the license holder. The notice must state the reasons the license was
13.16suspended, revoked, or a fine was ordered.
13.17    (b) If the license was suspended or revoked, the notice must inform the license
13.18holder of the right to a contested case hearing under chapter 14 and specifically Minnesota
13.19Rules, parts 1400.8505 to 1400.8612. The license holder may appeal an order suspending
13.20or revoking a license. The appeal of an order suspending or revoking a license must
13.21be made in writing by certified mail or personal service. If mailed, the appeal must be
13.22postmarked and sent to the commissioner within ten calendar days after the license holder
13.23receives notice that the license has been suspended or revoked. If a request is made by
13.24personal service, it must be received by the commissioner within ten calendar days after
13.25the license holder received the order. Except as provided in subdivision 2a, paragraph
13.26(c), if a license holder submits a timely appeal of an order suspending or revoking a
13.27license, the license holder may continue to operate the program as provided in section
13.28245A.04, subdivision 7 , paragraphs (g) and (h), until the commissioner issues a final order
13.29on the suspension or revocation.
13.30    (c)(1) If the license holder was ordered to pay a fine, the notice must inform the
13.31license holder of the responsibility for payment of fines and the right to a contested case
13.32hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal
13.33of an order to pay a fine must be made in writing by certified mail or personal service. If
13.34mailed, the appeal must be postmarked and sent to the commissioner within ten calendar
13.35days after the license holder receives notice that the fine has been ordered. If a request is
14.1made by personal service, it must be received by the commissioner within ten calendar
14.2days after the license holder received the order.
14.3    (2) The license holder shall pay the fines assessed on or before the payment date
14.4specified. If the license holder fails to fully comply with the order, the commissioner
14.5may issue a second fine or suspend the license until the license holder complies. If the
14.6license holder receives state funds, the state, county, or municipal agencies or departments
14.7responsible for administering the funds shall withhold payments and recover any payments
14.8made while the license is suspended for failure to pay a fine. A timely appeal shall stay
14.9payment of the fine until the commissioner issues a final order.
14.10    (3) A license holder shall promptly notify the commissioner of human services,
14.11in writing, when a violation specified in the order to forfeit a fine is corrected. If upon
14.12reinspection the commissioner determines that a violation has not been corrected as
14.13indicated by the order to forfeit a fine, the commissioner may issue a second fine. The
14.14commissioner shall notify the license holder by certified mail or personal service that a
14.15second fine has been assessed. The license holder may appeal the second fine as provided
14.16under this subdivision.
14.17    (4) Fines shall be assessed as follows: the license holder shall forfeit $1,000 for
14.18each determination of maltreatment of a child under section 626.556 or the maltreatment
14.19of a vulnerable adult under section 626.557 for which the license holder is determined
14.20responsible for the maltreatment under section 626.556, subdivision 10e, paragraph (i),
14.21or 626.557, subdivision 9c, paragraph (c); the license holder shall forfeit $200 for each
14.22occurrence of a violation of law or rule governing matters of health, safety, or supervision,
14.23including but not limited to the provision of adequate staff-to-child or adult ratios, and
14.24failure to comply with background study requirements under chapter 245C; and the license
14.25holder shall forfeit $100 for each occurrence of a violation of law or rule other than those
14.26subject to a $1,000 or $200 fine above. For purposes of this section, "occurrence" means
14.27each violation identified in the commissioner's fine order. Fines assessed against a license
14.28holder that holds a license to provide the residential-based habilitation services, as defined
14.29under section 245B.02, subdivision 20, and a license to provide foster care, may be
14.30assessed against both licenses for the same occurrence, but the combined amount of the
14.31fines shall not exceed the amount specified in this clause for that occurrence.
14.32    (5) When a fine has been assessed, the license holder may not avoid payment by
14.33closing, selling, or otherwise transferring the licensed program to a third party. In such an
14.34event, the license holder will be personally liable for payment. In the case of a corporation,
14.35each controlling individual is personally and jointly liable for payment.
15.1(d) Except for background study violations involving the failure to comply with an
15.2order to immediately remove an individual or an order to provide continuous, direct
15.3supervision, the commissioner shall not issue a fine under paragraph (c) relating to a
15.4background study violation to a license holder who self-corrects a background study
15.5violation before the commissioner discovers the violation. A license holder who has
15.6previously exercised the provisions of this paragraph to avoid a fine for a background
15.7study violation may not avoid a fine for a subsequent background study violation unless at
15.8least 365 days have passed since the license holder self-corrected the earlier background
15.9study violation.

15.10    Sec. 9. Minnesota Statutes 2012, section 245A.07, is amended by adding a subdivision
15.11to read:
15.12    Subd. 7. Time frame for conducting hearing. Within 15 working days of receipt
15.13of the license holder's timely appeal of a sanction under this section other than a temporary
15.14immediate suspension, the commissioner shall request assignment of an administrative
15.15law judge. The commissioner's request must include a proposed date, time, and place of a
15.16hearing. A hearing must be conducted by an administrative law judge within 90 calendar
15.17days of the request for assignment, unless an extension is requested by either party and
15.18granted by the administrative law judge for good cause or for purposes of discussing
15.19settlement. In no case shall one or more extensions be granted for a total of more than 90
15.20calendar days.

15.21    Sec. 10. Minnesota Statutes 2012, section 245A.08, subdivision 2a, is amended to read:
15.22    Subd. 2a. Consolidated contested case hearings. (a) When a denial of a license
15.23under section 245A.05 or a licensing sanction under section 245A.07, subdivision 3, is
15.24based on a disqualification for which reconsideration was timely requested and which was
15.25not set aside under section 245C.22, the scope of the contested case hearing shall include
15.26the disqualification and the licensing sanction or denial of a license, unless otherwise
15.27specified in this subdivision. When the licensing sanction or denial of a license is based on
15.28a determination of maltreatment under section 626.556 or 626.557, or a disqualification
15.29for serious or recurring maltreatment which was not set aside, the scope of the contested
15.30case hearing shall include the maltreatment determination, disqualification, and the
15.31licensing sanction or denial of a license, unless otherwise specified in this subdivision. In
15.32such cases, a fair hearing under section 256.045 shall not be conducted as provided for in
15.33sections 245C.27, 626.556, subdivision 10i, and 626.557, subdivision 9d.
16.1    (b) Except for family child care and child foster care, reconsideration of a
16.2maltreatment determination under sections 626.556, subdivision 10i, and 626.557,
16.3subdivision 9d, and reconsideration of a disqualification under section 245C.22, shall
16.4not be conducted when:
16.5    (1) a denial of a license under section 245A.05, or a licensing sanction under section
16.6245A.07 , is based on a determination that the license holder is responsible for maltreatment
16.7or the disqualification of a license holder is based on serious or recurring maltreatment;
16.8    (2) the denial of a license or licensing sanction is issued at the same time as the
16.9maltreatment determination or disqualification; and
16.10    (3) the license holder appeals the maltreatment determination or disqualification,
16.11and denial of a license or licensing sanction. In these cases, a fair hearing shall not be
16.12conducted under sections 245C.27, 626.556, subdivision 10i, and 626.557, subdivision
16.139d. The scope of the contested case hearing must include the maltreatment determination,
16.14disqualification, and denial of a license or licensing sanction.
16.15    Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment
16.16determination or disqualification, but does not appeal the denial of a license or a licensing
16.17sanction, reconsideration of the maltreatment determination shall be conducted under
16.18sections 626.556, subdivision 10i, and 626.557, subdivision 9d, and reconsideration of the
16.19disqualification shall be conducted under section 245C.22. In such cases, a fair hearing
16.20shall also be conducted as provided under sections 245C.27, 626.556, subdivision 10i, and
16.21626.557, subdivision 9d .
16.22    (c) In consolidated contested case hearings regarding sanctions issued in family child
16.23care, child foster care, family adult day services, and adult foster care, the county attorney
16.24shall defend the commissioner's orders in accordance with section 245A.16, subdivision 4.
16.25    (d) The commissioner's final order under subdivision 5 is the final agency action
16.26on the issue of maltreatment and disqualification, including for purposes of subsequent
16.27background studies under chapter 245C and is the only administrative appeal of the final
16.28agency determination, specifically, including a challenge to the accuracy and completeness
16.29of data under section 13.04.
16.30    (e) When consolidated hearings under this subdivision involve a licensing sanction
16.31based on a previous maltreatment determination for which the commissioner has issued
16.32a final order in an appeal of that determination under section 256.045, or the individual
16.33failed to exercise the right to appeal the previous maltreatment determination under
16.34section 626.556, subdivision 10i, or 626.557, subdivision 9d, the commissioner's order is
16.35conclusive on the issue of maltreatment. In such cases, the scope of the administrative
16.36law judge's review shall be limited to the disqualification and the licensing sanction or
17.1denial of a license. In the case of a denial of a license or a licensing sanction issued to
17.2a facility based on a maltreatment determination regarding an individual who is not the
17.3license holder or a household member, the scope of the administrative law judge's review
17.4includes the maltreatment determination.
17.5    (f) The hearings of all parties may be consolidated into a single contested case
17.6hearing upon consent of all parties and the administrative law judge, if:
17.7    (1) a maltreatment determination or disqualification, which was not set aside under
17.8section 245C.22, is the basis for a denial of a license under section 245A.05 or a licensing
17.9sanction under section 245A.07;
17.10    (2) the disqualified subject is an individual other than the license holder and upon
17.11whom a background study must be conducted under section 245C.03; and
17.12    (3) the individual has a hearing right under section 245C.27.
17.13    (g) When a denial of a license under section 245A.05 or a licensing sanction under
17.14section 245A.07 is based on a disqualification for which reconsideration was requested
17.15and was not set aside under section 245C.22, and the individual otherwise has no hearing
17.16right under section 245C.27, the scope of the administrative law judge's review shall
17.17include the denial or sanction and a determination whether the disqualification should
17.18be set aside, unless section 245C.24 prohibits the set-aside of the disqualification. In
17.19determining whether the disqualification should be set aside, the administrative law judge
17.20shall consider the factors under section 245C.22, subdivision 4, to determine whether the
17.21individual poses a risk of harm to any person receiving services from the license holder.
17.22    (h) Notwithstanding section 245C.30, subdivision 5, when a licensing sanction
17.23under section 245A.07 is based on the termination of a variance under section 245C.30,
17.24subdivision 4 , the scope of the administrative law judge's review shall include the sanction
17.25and a determination whether the disqualification should be set aside, unless section
17.26245C.24 prohibits the set-aside of the disqualification. In determining whether the
17.27disqualification should be set aside, the administrative law judge shall consider the factors
17.28under section 245C.22, subdivision 4, to determine whether the individual poses a risk of
17.29harm to any person receiving services from the license holder.

17.30    Sec. 11. Minnesota Statutes 2012, section 245A.08, subdivision 5a, is amended to read:
17.31    Subd. 5a. Granting subsequent license. (a) A license holder and each controlling
17.32individual of a license holder whose license has been revoked because of noncompliance
17.33with applicable law or rule must not be granted a license for five years following the
17.34revocation. Notwithstanding the five-year restriction, when a license is revoked because a
17.35person, other than the license holder, resides in the home where services are provided and
18.1that person has a disqualification that is not set aside and no variance has been granted,
18.2the former license holder may reapply for a license when:
18.3(1) the person with a disqualification, who is not a minor child, is no longer residing
18.4in the home and is prohibited from residing in or returning to the home; or
18.5(2) the person with the disqualification is a minor child, the restriction applies until
18.6the minor child becomes an adult and permanently moves away from the home or five
18.7years, whichever is less.
18.8(b) An applicant or controlling individual whose application was denied must not
18.9be granted a license for two years following a denial, unless the applicant's subsequent
18.10application contains new information which constitutes a substantial change in the
18.11conditions that caused the previous denial. The addition of a new co-applicant in a
18.12subsequent application does not constitute a substantial change. If an applicant or
18.13controlling individual whose application was denied is affiliated with a subsequent
18.14application, and two years have not passed since the denial, the subsequent application
18.15must be denied.

18.16    Sec. 12. Minnesota Statutes 2012, section 245A.146, subdivision 3, is amended to read:
18.17    Subd. 3. License holder documentation of cribs. (a) Annually, from the date
18.18printed on the license, all license holders shall check all their cribs' brand names and
18.19model numbers against the United States Consumer Product Safety Commission Web
18.20site listing of unsafe cribs.
18.21(b) The license holder shall maintain written documentation to be reviewed on site
18.22for each crib showing that the review required in paragraph (a) has been completed, and
18.23which of the following conditions applies:
18.24(1) the crib was not identified as unsafe on the United States Consumer Product
18.25Safety Commission Web site;
18.26(2) the crib was identified as unsafe on the United States Consumer Product Safety
18.27Commission Web site, but the license holder has taken the action directed by the United
18.28States Consumer Product Safety Commission to make the crib safe; or
18.29(3) the crib was identified as unsafe on the United States Consumer Product Safety
18.30Commission Web site, and the license holder has removed the crib so that it is no longer
18.31used by or accessible to children in care.
18.32(c) Documentation of the review completed under this subdivision shall be
18.33maintained by the license holder on site and made available to parents or guardians of
18.34children in care and the commissioner.
19.1(d) Notwithstanding Minnesota Rules, part 9502.0425, a family child care provider
19.2that complies with this section may use a mesh-sided or fabric-sided play yard, pack
19.3and play, or playpen or crib that has not been identified as unsafe on the United States
19.4Consumer Product Safety Commission Web site for the care or sleeping of infants.
19.5(e) On at least a monthly basis, the family child care license holder shall perform
19.6safety inspections of every mesh-sided or fabric-sided play yard, pack and play, or playpen
19.7used by or that is accessible to any child in care, and must document the following:
19.8(1) there are no tears, holes, or loose or unraveling threads in mesh or fabric sides of
19.9crib;
19.10(2) the weave of the mesh on the crib is no larger than 1/4 of an inch;
19.11(3) no mesh fabric is unsecure or unattached to top rail and floor plate of crib;
19.12(4) no tears or holes to top rail of crib;
19.13(5) the mattress floor board is not soft and does not exceed one-inch thick;
19.14(6) the mattress floor board has no rips or tears in covering;
19.15(7) the mattress floor board in use is a waterproof original mattress or replacement
19.16mattress provided by the manufacturer of the crib;
19.17(8) there are no protruding or loose rivets, metal nuts, or bolts on the crib;
19.18(9) there are no knobs or wing nuts on outside crib legs;
19.19(10) there are no missing, loose, or exposed staples; and
19.20(11) the latches on top and side rails used to collapse crib are secure, they lock
19.21properly, and are not loose.

19.22    Sec. 13. Minnesota Statutes 2012, section 245A.146, subdivision 4, is amended to read:
19.23    Subd. 4. Crib safety standards and inspection. (a) On at least a monthly basis,
19.24the license holder shall perform safety inspections of every crib or portable crib of rigid
19.25construction including full size and non-full size cribs used by or that is accessible to any
19.26child in care, and must document the following:
19.27(1) no corner posts extend more than 1/16 of an inch;
19.28(2) no spaces between side slats exceed 2.375 inches;
19.29(3) no mattress supports can be easily dislodged from any point of the crib;
19.30(4) no cutout designs are present on end panels;
19.31(5) no heights of the rail and end panel are less than 26 inches when measured from
19.32the top of the rail or panel in the highest position to the top of the mattress support in
19.33its lowest position;
20.1(6) no heights of the rail and end panel are less than nine inches when measured
20.2from the top of the rail or panel in its lowest position to the top of the mattress support in
20.3its highest position;
20.4(7) (2) no screws, bolts, or hardware are loose or not secured, and there is no use
20.5of woodscrews in components that are designed to be assembled and disassembled by
20.6the crib owner;
20.7(8) (3) no sharp edges, points, or rough surfaces are present;
20.8(9) (4) no wood surfaces are rough, splintered, split, or cracked; and
20.9(10) no tears in mesh of fabric sides in non-full-size cribs;
20.10(11) no mattress pads in non-full-size mesh or fabric cribs exceed one inch; and
20.11(12) (5) no unacceptable gaps between the mattress and any sides of the crib are
20.12present as follows:
20.13(i) when the noncompressed mattress is centered in the non-full-size crib, at any of
20.14the adjustable mattress support positions, the gap between the perimeter of the mattress
20.15and the perimeter of the crib cannot be greater than one-half inch at any point. When the
20.16mattress is placed against the perimeter of the crib, the resulting gap cannot be greater
20.17than one inch at any point; and
20.18(ii) when the noncompressed mattress is centered in the full-size crib, at any of
20.19the adjustable mattress support positions, the gap between the perimeter of the mattress
20.20and the perimeter of the crib cannot be greater than 11/16 inch at any point. When the
20.21mattress is placed against the perimeter of the crib, the resulting gap cannot be greater
20.22than 1-3/8 inch at any point.
20.23(b) Upon discovery of any unsafe condition identified by the license holder during
20.24the safety inspection required under paragraph (a) or subdivision 3, paragraph (e), the
20.25license holder shall immediately remove the crib from use and ensure that the crib is not
20.26accessible to children in care, and as soon as practicable, but not more than two business
20.27days after the inspection, remove the crib from the area where child care services are
20.28routinely provided for necessary repairs or to destroy the crib.
20.29(c) Documentation of the inspections and actions taken with unsafe cribs required in
20.30paragraphs (a) and (b), and subdivision 3, paragraph (e), shall be maintained on site by the
20.31license holder and made available to parents of children in care and the commissioner.

20.32    Sec. 14. Minnesota Statutes 2012, section 245A.50, subdivision 4, is amended to read:
20.33    Subd. 4. Cardiopulmonary resuscitation. (a) When children are present in a
20.34family child care home governed by Minnesota Rules, parts 9502.0315 to 9502.0445, at
20.35least one staff person caregiver must be present in the home who has been trained in
21.1cardiopulmonary resuscitation (CPR), including CPR techniques for infants and children,
21.2 and in the treatment of obstructed airways. The CPR training must have been provided by
21.3an individual approved to provide CPR instruction, must be repeated at least once every
21.4three years, and must be documented in the staff person's records.
21.5    (b) A family child care provider is exempt from the CPR training requirement in
21.6this subdivision related to any substitute caregiver who provides less than 30 hours of
21.7care during any 12-month period.
21.8    (c) Video training reviewed and approved by the county licensing agency satisfies
21.9the training requirement of this subdivision.

21.10    Sec. 15. [245A.55] APPLICABILITY OF LAWS AND RULES TO A FAMILY
21.11CHILD CARE LICENSE HOLDER'S OWN CHILDREN.
21.12Any provision of statute or rule governing the care of a child in a licensed family
21.13child care program applies to the care of a child of any license holder, controlling
21.14individual, or caregiver when the child:
21.15(1) is ten years old or younger; and
21.16(2) is present in the licensed family child care home when the program is in operation.

21.17    Sec. 16. Minnesota Statutes 2012, section 245A.65, subdivision 1, is amended to read:
21.18    Subdivision 1. License holder requirements. All license holders serving vulnerable
21.19adults shall establish and enforce written policies and procedures related to suspected or
21.20alleged maltreatment, and shall orient clients and mandated reporters who are under
21.21the control of the license holder to these procedures, as defined in section 626.5572,
21.22subdivision 16 .
21.23    (a) License holders must establish policies and procedures allowing but not
21.24mandating the internal reporting of alleged or suspected maltreatment. License holders
21.25shall ensure that the policies and procedures on internal reporting:
21.26    (1) meet all the requirements identified for the optional internal reporting policies
21.27and procedures in section 626.557, subdivision 4a; and
21.28    (2) identify the primary and secondary person or position to whom internal reports
21.29may be made and the primary and secondary person or position responsible for forwarding
21.30internal reports to the common entry point as defined in section 626.5572, subdivision 5.
21.31The secondary person must be involved when there is reason to believe that the primary
21.32person was involved in the alleged or suspected maltreatment.
21.33    (b) The license holder shall:
22.1    (1) establish and maintain policies and procedures to ensure that an internal review
22.2is completed within 30 calendar days and that corrective action is taken as necessary to
22.3protect the health and safety of vulnerable adults when the facility has reason to know
22.4that an internal or external report of alleged or suspected maltreatment has been made.
22.5The review must include an evaluation of whether related policies and procedures were
22.6followed, whether the policies and procedures were adequate, whether there is a need for
22.7additional staff training, whether the reported event is similar to past events with the
22.8vulnerable adults or the services involved, and whether there is a need for corrective
22.9action by the license holder to protect the health and safety of vulnerable adults. Based on
22.10the results of this review, the license holder must develop, document, and implement a
22.11corrective action plan designed to correct current lapses and prevent future lapses in
22.12performance by individuals or the license holder, if any.
22.13    (2) identify the primary and secondary person or position who will ensure that, when
22.14required, internal reviews are completed. The secondary person shall be involved when
22.15there is reason to believe that the primary person was involved in the alleged or suspected
22.16maltreatment; and
22.17    (3) document and make internal reviews accessible to the commissioner immediately
22.18upon the commissioner's request. For the purposes of this section, the documentation
22.19provided to the commissioner by the license holder may consist of a completed checklist
22.20that verifies completion of each of the requirements of the review.
22.21    (c) The license holder shall provide an orientation to the internal and external
22.22reporting procedures to all persons receiving services. The orientation shall include the
22.23telephone number for the license holder's common entry point as defined in section
22.24626.5572, subdivision 5 . If applicable, the person's legal representative must be notified of
22.25the orientation. The program shall provide this orientation for each new person within 24
22.26hours of admission, or for persons who would benefit more from a later orientation, the
22.27orientation may take place within 72 hours.
22.28    (d) The license holder shall post a copy of the internal and external reporting policies
22.29and procedures, including the telephone number of the common entry point as defined
22.30in section 626.5572, subdivision 5, in a prominent location in the program and have it
22.31available upon request to mandated reporters, persons receiving services, and the person's
22.32legal representatives.

22.33    Sec. 17. Minnesota Statutes 2012, section 245A.66, subdivision 1, is amended to read:
22.34    Subdivision 1. Internal review. Except for family child care settings and foster care
22.35for children in the license holder's residence, license holders serving children shall:
23.1    (1) establish and maintain policies and procedures to ensure that an internal review
23.2is completed within 30 calendar days and that corrective action is taken if necessary to
23.3protect the health and safety of children in care when the facility has reason to know that
23.4an internal or external report of alleged or suspected maltreatment has been made. The
23.5review must include an evaluation of whether:
23.6    (i) related policies and procedures were followed;
23.7    (ii) the policies and procedures were adequate;
23.8    (iii) there is a need for additional staff training;
23.9    (iv) the reported event is similar to past events with the children or the services
23.10involved; and
23.11    (v) there is a need for corrective action by the license holder to protect the health and
23.12safety of children in care.
23.13    Based on the results of this review, the license holder must develop, document, and
23.14implement a corrective action plan designed to correct current lapses and prevent future
23.15lapses in performance by individuals or the license holder, if any;
23.16    (2) identify the primary and secondary person or position who will ensure that, when
23.17required, internal reviews are completed. The secondary person shall be involved when
23.18there is reason to believe that the primary person was involved in the alleged or suspected
23.19maltreatment; and
23.20    (3) document that the and make internal review has been completed and provide
23.21documentation showing the review was completed reviews accessible to the commissioner
23.22immediately upon the commissioner's request. For the purposes of this section, the
23.23documentation provided to the commissioner by the license holder may consist of a
23.24completed checklist that verifies completion of each of the requirements of the review.

23.25    Sec. 18. Minnesota Statutes 2012, section 245B.02, subdivision 10, is amended to read:
23.26    Subd. 10. Incident. "Incident" means an occurrence that affects the ordinary
23.27provision of services to a person and includes any of the following:
23.28(1) serious injury as determined by section 245.91, subdivision 6;
23.29(2) a consumer's death;
23.30(3) any medical emergency emergencies, unexpected serious illness illnesses, or
23.31significant unexpected changes in an illness or medical condition, or the mental health
23.32status of a person accidents that requires calling 911 or a mental health mobile crisis
23.33intervention team, require physician treatment, or hospitalization;
23.34(4) a consumer's unauthorized or unexplained absence;
24.1(5) any fires or other events that require the relocation of services for more than 24
24.2hours, or circumstances involving a law enforcement agency or fire department related to
24.3the health, safety, or supervision of a consumer;
24.4(6) physical aggression by a consumer against another consumer that causes
24.5physical pain, injury, or persistent emotional distress, including, but not limited to, hitting,
24.6slapping, kicking, scratching, pinching, biting, pushing, and spitting;
24.7(6) (7) any sexual activity between consumers involving force or coercion as defined
24.8under section 609.341, subdivisions 3 and 14; or
24.9(7) (8) a report of child or vulnerable adult maltreatment under section 626.556 or
24.10626.557 .

24.11    Sec. 19. Minnesota Statutes 2012, section 245B.04, is amended to read:
24.12245B.04 CONSUMER RIGHTS.
24.13    Subdivision 1. License holder's responsibility for consumers' rights. The license
24.14holder must:
24.15(1) provide the consumer or the consumer's legal representative a copy of the
24.16consumer's rights on the day that services are initiated and an explanation of the rights
24.17in subdivisions 2 and 3 within five working days of service initiation and annually
24.18thereafter. Reasonable accommodations shall be made by the license holder to provide
24.19this information in other formats as needed to facilitate understanding of the rights by the
24.20consumer and the consumer's legal representative, if any;
24.21(2) document the consumer's or the consumer's legal representative's receipt of a
24.22copy of the rights and an explanation of the rights; and
24.23(3) ensure the exercise and protection of the consumer's rights in the services
24.24provided by the license holder and authorized in the individual service plan.
24.25    Subd. 2. Service-related rights. A consumer's service-related rights include the
24.26right to:
24.27(1) refuse or terminate services and be informed of the consequences of refusing
24.28or terminating services;
24.29(2) know, in advance, limits to the services available from the license holder;
24.30(3) know conditions and terms governing the provision of services, including the
24.31license holder's policies and procedures those related to initiation and termination;
24.32(4) know what the charges are for services, regardless of who will be paying for the
24.33services, and be notified upon request of changes in those charges;
25.1(5) know, in advance, whether services are covered by insurance, government
25.2funding, or other sources, and be told of any charges the consumer or other private party
25.3may have to pay; and
25.4(6) receive licensed services from individuals who are competent and trained,
25.5who have professional certification or licensure, as required, and who meet additional
25.6qualifications identified in the individual service plan.
25.7    Subd. 3. Protection-related rights. (a) The consumer's protection-related rights
25.8include the right to:
25.9(1) have personal, financial, services, and medical information kept private, and
25.10be advised of the license holder's policies and procedures regarding disclosure of such
25.11information;
25.12(2) access records and recorded information about the person in accordance with
25.13applicable state and federal law, regulation, or rule;
25.14(3) be free from maltreatment;
25.15(4) be treated with courtesy and respect for the consumer's individuality, mode of
25.16communication, and culture, and receive respectful treatment of the consumer's property;
25.17(5) reasonable observance of cultural and ethnic practice and religion;
25.18(6) be free from bias and harassment regarding race, gender, age, disability,
25.19spirituality, and sexual orientation;
25.20(7) be informed of and use the license holder's grievance policy and procedures,
25.21including knowing how to contact persons responsible for addressing problems and to
25.22appeal under section 256.045;
25.23(8) know the name, telephone number, and the Web site, e-mail, and street
25.24addresses of protection and advocacy services, including the appropriate state-appointed
25.25ombudsman, and a brief description of how to file a complaint with these offices;
25.26(9) voice grievances, know the contact persons responsible for addressing problems
25.27and how to contact those persons;
25.28(10) (6) any procedures for grievance or complaint resolution and the right to appeal
25.29under section 256.045;
25.30(11) (7) know the name and address of the state, county, or advocacy agency to
25.31contact for additional information or assistance;
25.32(12) (8) assert these rights personally, or have them asserted by the consumer's
25.33family or legal representative, without retaliation;
25.34(13) (9) give or withhold written informed consent to participate in any research or
25.35experimental treatment;
26.1(14) (10) have daily, private access to and use of a non-coin-operated telephone for
26.2local calls and long-distance calls made collect or paid for by the resident;
26.3(15) (11) receive and send, without interference, uncensored, unopened mail or
26.4electronic correspondence or communication;
26.5(16) (12) marital privacy for visits with the consumer's spouse and, if both are
26.6residents of the site, the right to share a bedroom and bed;
26.7(17) (13) associate with other persons of the consumer's choice;
26.8(18) (14) personal privacy; and
26.9(19) (15) engage in chosen activities.
26.10(b) Restriction of a person's rights under paragraph (a), clauses (13) to (15), or
26.11this paragraph is allowed only if determined necessary to ensure the health, safety, and
26.12well-being of the person. Any restriction of these rights must be documented in the service
26.13plan for the person and must include the following information:
26.14(1) the justification for the restriction based on an assessment of the person's
26.15vulnerability related to exercising the right without restriction;
26.16(2) the objective measures set as conditions for ending the restriction;
26.17(3) a schedule for reviewing the need for the restriction based on the conditions for
26.18ending the restriction to occur, at a minimum, every three months for persons who do not
26.19have a legal representative and annually for persons who do have a legal representative
26.20from the date of initial approval; and
26.21(4) signed and dated approval for the restriction from the person, or the person's
26.22legal representative, if any. A restriction may be implemented only when the required
26.23approval has been obtained. Approval may be withdrawn at any time. If approval is
26.24withdrawn, the right must be immediately and fully restored.

26.25    Sec. 20. Minnesota Statutes 2012, section 245B.05, subdivision 1, is amended to read:
26.26    Subdivision 1. Environment. The license holder must:
26.27(1) ensure that services are provided in a safe and hazard-free environment when the
26.28license holder is the owner, lessor, or tenant of the service site. All other license holders
26.29shall inform the consumer or the consumer's legal representative and case manager about
26.30any environmental safety concerns in writing;
26.31(2) ensure that doors are locked or toxic substances or dangerous items normally
26.32accessible to persons served by the program are stored in locked cabinets, drawers, or
26.33containers lock doors only to protect the safety of consumers and not as a substitute for
26.34staff supervision or interactions with consumers. If doors are locked or toxic substances
26.35or dangerous items normally accessible to persons served by the program are stored in
27.1locked cabinets, drawers, or containers, the license holder must justify and document
27.2how this determination was made in consultation with the person or the person's legal
27.3representative and how access will otherwise be provided to the person and all other
27.4affected persons receiving services;
27.5(3) follow procedures that minimize the consumer's health risk from communicable
27.6diseases; and
27.7(4) maintain equipment, vehicles, supplies, and materials owned or leased by the
27.8license holder in good condition.

27.9    Sec. 21. Minnesota Statutes 2012, section 245B.05, subdivision 7, is amended to read:
27.10    Subd. 7. Reporting incidents. (a) The license holder must maintain information
27.11about and report incidents under section 245B.02, subdivision 10, clauses (1) to (7) (8), to
27.12the consumer's legal representative, other licensed caregiver, if any, and case manager
27.13within 24 hours of the occurrence, or within 24 hours of receipt of the information unless
27.14the incident has been reported by another license holder. An incident under section
27.15245B.02, subdivision 10 , clause (8), must be reported as required under paragraph (c)
27.16unless the incident has been reported by another license holder.
27.17(b) When the incident involves more than one consumer, the license holder must
27.18not disclose personally identifiable information about any other consumer when making
27.19the report to each consumer's legal representative, other licensed caregiver, if any, and
27.20case manager unless the license holder has the consent of a consumer or a consumer's
27.21legal representative.
27.22(c) Within 24 hours of reporting maltreatment as required under section 626.556
27.23or 626.557, the license holder must inform the consumer's legal representative and case
27.24manager of the report unless there is reason to believe that the legal representative or case
27.25manager is involved in the suspected maltreatment. The information the license holder
27.26must disclose is the nature of the activity or occurrence reported, the agency that receives
27.27the report, and the telephone number of the Department of Human Services Licensing
27.28Division.
27.29(d) Except as provided in paragraph (e), death or serious injury of the consumer
27.30must also be reported to the Department of Human Services Licensing Division and the
27.31ombudsman, as required under sections 245.91 and 245.94, subdivision 2a.
27.32(e) When a death or serious injury occurs in a facility certified as an intermediate
27.33care facility for persons with developmental disabilities, the death or serious injury must
27.34be reported to the Department of Health, Office of Health Facility Complaints, and the
27.35ombudsman, as required under sections 245.91 and 245.94, subdivision 2a.

28.1    Sec. 22. Minnesota Statutes 2012, section 245B.07, subdivision 5, is amended to read:
28.2    Subd. 5. Staff orientation. (a) Within 60 days of hiring staff who provide direct
28.3service, the license holder must provide 30 hours of staff orientation. Direct care staff
28.4must complete 15 of the 30 hours orientation before providing any unsupervised direct
28.5service to a consumer. If the staff person has received orientation training from a license
28.6holder licensed under this chapter, or provides semi-independent living services only, the
28.715-hour requirement may be reduced to eight hours. The total orientation of 30 hours may
28.8be reduced to 15 hours if the staff person has previously received orientation training from
28.9a license holder licensed under this chapter.
28.10(b) The 30 hours of orientation must combine supervised on-the-job training with
28.11review coverage of and instruction on the following material:
28.12(1) review of the consumer's service plans and risk management plan to achieve an
28.13understanding of the consumer as a unique individual and staff responsibilities related to
28.14implementation of those plans;
28.15(2) review and instruction on implementation of the license holder's policies and
28.16procedures, including their location and access;
28.17(3) staff responsibilities related to emergency procedures;
28.18(4) explanation of specific job functions, including implementing objectives from
28.19the consumer's individual service plan;
28.20(5) explanation of responsibilities related to section 245A.65; sections 626.556
28.21and 626.557, governing maltreatment reporting and service planning for children and
28.22vulnerable adults; and section 245.825, governing use of aversive and deprivation
28.23procedures;
28.24(6) medication administration as it applies to the individual consumer, from a
28.25training curriculum developed by a health services professional described in section
28.26245B.05, subdivision 5 , and when the consumer meets the criteria of having overriding
28.27health care needs, then medication administration taught by a health services professional.
28.28Staff may administer medications only after they demonstrate the ability, as defined in the
28.29license holder's medication administration policy and procedures. Once a consumer with
28.30overriding health care needs is admitted, staff will be provided with remedial training as
28.31deemed necessary by the license holder and the health professional to meet the needs of
28.32that consumer.
28.33For purposes of this section, overriding health care needs means a health care
28.34condition that affects the service options available to the consumer because the condition
28.35requires:
28.36(i) specialized or intensive medical or nursing supervision; and
29.1(ii) nonmedical service providers to adapt their services to accommodate the health
29.2and safety needs of the consumer;
29.3(7) consumer rights and staff responsibilities related to protecting and ensuring
29.4the exercise of the consumer rights; and
29.5(8) other topics necessary as determined by the consumer's individual service plan or
29.6other areas identified by the license holder.
29.7(c) The license holder must document each employee's orientation received.

29.8    Sec. 23. Minnesota Statutes 2012, section 245B.07, subdivision 9, is amended to read:
29.9    Subd. 9. Availability of current written policies and procedures. The license
29.10holder shall:
29.11(1) review and update, as needed, the written policies and procedures in this chapter;
29.12(2) inform consumers or the consumer's legal representatives of the written policies
29.13and procedures in this chapter upon service initiation. Copies of policies and procedures
29.14affecting a consumer's rights under section 245D.04 must be provided upon service
29.15initiation. Copies of all other policies and procedures must be available to consumers
29.16or the consumer's legal representatives, case managers, the county where services are
29.17located, and the commissioner upon request;
29.18(3) provide all consumers or the consumers' legal representatives and case managers
29.19a copy of the revised policies and procedures and explanation of the revisions to policies
29.20and procedures that affect consumers' service-related or protection-related rights under
29.21section 245B.04 and maltreatment reporting policies and procedures. Unless there is
29.22reasonable cause, the license holder must provide this notice at least 30 days before
29.23implementing the revised policy and procedure. The license holder must document the
29.24reason for not providing the notice at least 30 days before implementing the revisions;
29.25(4) annually notify all consumers or the consumers' legal representatives and case
29.26managers of any revised policies and procedures under this chapter, other than those in
29.27clause (3). Upon request, the license holder must provide the consumer or consumer's
29.28legal representative and case manager copies of the revised policies and procedures;
29.29(5) before implementing revisions to policies and procedures under this chapter,
29.30inform all employees of the revisions and provide training on implementation of the
29.31 revised policies and procedures; and
29.32(6) document and maintain relevant information related to the policies and
29.33procedures in this chapter.

29.34    Sec. 24. Minnesota Statutes 2012, section 245B.07, subdivision 10, is amended to read:
30.1    Subd. 10. Consumer funds. (a) The license holder must ensure that consumers
30.2retain the use and availability of personal funds or property unless restrictions are justified
30.3in the consumer's individual service plan.
30.4(b) The license holder must ensure separation of consumer funds from funds of the
30.5license holder, the program, or program staff.
30.6(c) Whenever the license holder assists a consumer with the safekeeping of funds
30.7or other property, the license holder must have written authorization to do so by the
30.8consumer or the consumer's legal representative, and the case manager. In addition, the
30.9license holder must:
30.10(1) document receipt and disbursement of the consumer's funds or the property;
30.11(2) annually survey, document, and implement the preferences of the consumer,
30.12consumer's legal representative, and the case manager for frequency of receiving a
30.13statement that itemizes receipts and disbursements of consumer funds or other property; and
30.14(3) return to the consumer upon the consumer's request, funds and property in the
30.15license holder's possession subject to restrictions in the consumer's individual service plan,
30.16as soon as possible, but no later than three working days after the date of the request.
30.17(d) License holders and program staff must not:
30.18(1) borrow money from a consumer;
30.19(2) purchase personal items from a consumer;
30.20(3) sell merchandise or personal services to a consumer;
30.21(4) require a consumer to purchase items for which the license holder is eligible for
30.22reimbursement; or
30.23(5) use consumer funds in a manner that would violate section 256B.04, or any
30.24rules promulgated under that section; or.
30.25(6) accept powers-of-attorney from a person receiving services from the license
30.26holder for any purpose, and may not accept an appointment as guardian or conservator of
30.27a person receiving services from the license holder. This does not apply to license holders
30.28that are Minnesota counties or other units of government.

30.29    Sec. 25. REPEALER.
30.30Minnesota Statutes 2012, sections 245B.02, subdivision 8a; and 245B.07,
30.31subdivision 7a, are repealed.


30.34    Section 1. Minnesota Statutes 2012, section 168.012, subdivision 1, is amended to read:
31.1    Subdivision 1. Vehicles exempt from tax, fees, or plate display. (a) The following
31.2vehicles are exempt from the provisions of this chapter requiring payment of tax and
31.3registration fees, except as provided in subdivision 1c:
31.4    (1) vehicles owned and used solely in the transaction of official business by the
31.5federal government, the state, or any political subdivision;
31.6    (2) vehicles owned and used exclusively by educational institutions and used solely
31.7in the transportation of pupils to and from those institutions;
31.8    (3) vehicles used solely in driver education programs at nonpublic high schools;
31.9    (4) vehicles owned by nonprofit charities and used exclusively to transport disabled
31.10persons for charitable, religious, or educational purposes;
31.11    (5) vehicles owned by nonprofit charities and used exclusively for disaster response
31.12and related activities;
31.13    (6) vehicles owned by ambulance services licensed under section 144E.10 that
31.14are equipped and specifically intended for emergency response or providing ambulance
31.15services; and
31.16    (7) vehicles owned by a commercial driving school licensed under section 171.34,
31.17or an employee of a commercial driving school licensed under section 171.34, and the
31.18vehicle is used exclusively for driver education and training.
31.19    (b) Provided the general appearance of the vehicle is unmistakable, the following
31.20vehicles are not required to register or display number plates:
31.21(1) vehicles owned by the federal government;
31.22(2) fire apparatuses, including fire-suppression support vehicles, owned or leased by
31.23the state or a political subdivision;
31.24(3) police patrols owned or leased by the state or a political subdivision; and
31.25(4) ambulances owned or leased by the state or a political subdivision.
31.26    (c) Unmarked vehicles used in general police work, liquor investigations, or arson
31.27investigations, and passenger automobiles, pickup trucks, and buses owned or operated by
31.28the Department of Corrections or by conservation officers of the Division of Enforcement
31.29and Field Service of the Department of Natural Resources, must be registered and must
31.30display appropriate license number plates, furnished by the registrar at cost. Original and
31.31renewal applications for these license plates authorized for use in general police work and
31.32for use by the Department of Corrections or by conservation officers must be accompanied
31.33by a certification signed by the appropriate chief of police if issued to a police vehicle,
31.34the appropriate sheriff if issued to a sheriff's vehicle, the commissioner of corrections if
31.35issued to a Department of Corrections vehicle, or the appropriate officer in charge if
31.36issued to a vehicle of any other law enforcement agency. The certification must be on a
32.1form prescribed by the commissioner and state that the vehicle will be used exclusively
32.2for a purpose authorized by this section.
32.3    (d) Unmarked vehicles used by the Departments of Revenue and Labor and Industry,
32.4fraud unit, in conducting seizures or criminal investigations must be registered and must
32.5display passenger vehicle classification license number plates, furnished at cost by the
32.6registrar. Original and renewal applications for these passenger vehicle license plates
32.7must be accompanied by a certification signed by the commissioner of revenue or the
32.8commissioner of labor and industry. The certification must be on a form prescribed by
32.9the commissioner and state that the vehicles will be used exclusively for the purposes
32.10authorized by this section.
32.11    (e) Unmarked vehicles used by the Division of Disease Prevention and Control of the
32.12Department of Health must be registered and must display passenger vehicle classification
32.13license number plates. These plates must be furnished at cost by the registrar. Original
32.14and renewal applications for these passenger vehicle license plates must be accompanied
32.15by a certification signed by the commissioner of health. The certification must be on a
32.16form prescribed by the commissioner and state that the vehicles will be used exclusively
32.17for the official duties of the Division of Disease Prevention and Control.
32.18    (f) Unmarked vehicles used by staff of the Gambling Control Board in gambling
32.19investigations and reviews must be registered and must display passenger vehicle
32.20classification license number plates. These plates must be furnished at cost by the
32.21registrar. Original and renewal applications for these passenger vehicle license plates must
32.22be accompanied by a certification signed by the board chair. The certification must be on a
32.23form prescribed by the commissioner and state that the vehicles will be used exclusively
32.24for the official duties of the Gambling Control Board.
32.25    (g) Unmarked vehicles used in general investigation, surveillance, supervision, and
32.26monitoring by the staff of the Department of Human Services Services' Office of Special
32.27Investigations and the executive director of Investigations' staff; the Minnesota sex
32.28offender program program's executive director and the executive director's staff; and the
32.29Office of Inspector General's staff, including, but not limited to, county fraud prevention
32.30investigators, must be registered and must display passenger vehicle classification license
32.31number plates, furnished by the registrar at cost. Original and renewal applications for
32.32passenger vehicle license plates must be accompanied by a certification signed by the
32.33commissioner of human services. The certification must be on a form prescribed by the
32.34commissioner and state that the vehicles must be used exclusively for the official duties of
32.35the Office of Special Investigations and Investigations' staff; the executive director of the
32.36 Minnesota sex offender program program's executive director and the executive director's
33.1staff; and the Office of the Inspector General's staff, including, but not limited to, contract
33.2and county fraud prevention investigators.
33.3(h) Each state hospital and institution for persons who are mentally ill and
33.4developmentally disabled may have one vehicle without the required identification on
33.5the sides of the vehicle. The vehicle must be registered and must display passenger
33.6vehicle classification license number plates. These plates must be furnished at cost by the
33.7registrar. Original and renewal applications for these passenger vehicle license plates must
33.8be accompanied by a certification signed by the hospital administrator. The certification
33.9must be on a form prescribed by the commissioner and state that the vehicles will be used
33.10exclusively for the official duties of the state hospital or institution.
33.11    (i) Each county social service agency may have vehicles used for child and
33.12vulnerable adult protective services without the required identification on the sides of the
33.13vehicle. The vehicles must be registered and must display passenger vehicle classification
33.14license number plates. These plates must be furnished at cost by the registrar. Original
33.15and renewal applications for these passenger vehicle license plates must be accompanied
33.16by a certification signed by the agency administrator. The certification must be on a form
33.17prescribed by the commissioner and state that the vehicles will be used exclusively for the
33.18official duties of the social service agency.
33.19    (j) All other motor vehicles must be registered and display tax-exempt number
33.20plates, furnished by the registrar at cost, except as provided in subdivision 1c. All
33.21vehicles required to display tax-exempt number plates must have the name of the state
33.22department or political subdivision, nonpublic high school operating a driver education
33.23program, licensed commercial driving school, or other qualifying organization or entity,
33.24plainly displayed on both sides of the vehicle. This identification must be in a color
33.25giving contrast with that of the part of the vehicle on which it is placed and must endure
33.26throughout the term of the registration. The identification must not be on a removable
33.27plate or placard and must be kept clean and visible at all times; except that a removable
33.28plate or placard may be utilized on vehicles leased or loaned to a political subdivision or
33.29to a nonpublic high school driver education program.

33.30    Sec. 2. Minnesota Statutes 2012, section 256.01, subdivision 18d, is amended to read:
33.31    Subd. 18d. Data sharing with the Department of Human Services; multiple
33.32identification cards. (a) The commissioner of public safety shall, on a monthly basis,
33.33provide the commissioner of human services with the first, middle, and last name, and
33.34 the address, date of birth, and driver's license or state identification card number, and
33.35all photographs or electronically produced images of all applicants and holders whose
34.1drivers' licenses and state identification cards have been canceled under section 171.14,
34.2paragraph (a), clause (2) or (3), by the commissioner of public safety. After the initial data
34.3report has been provided by the commissioner of public safety to the commissioner of
34.4human services under this paragraph, subsequent reports shall only include cancellations
34.5that occurred after the end date of the cancellations represented in the previous data report.
34.6(b) The commissioner of human services shall compare the information provided
34.7under paragraph (a) with the commissioner's data regarding recipients of all public
34.8assistance programs managed by the Department of Human Services to determine whether
34.9any individual with multiple identification cards issued by the Department of Public
34.10Safety has illegally or improperly enrolled in any public assistance program managed by
34.11the Department of Human Services.
34.12(c) If the commissioner of human services determines that an applicant or recipient
34.13has illegally or improperly enrolled in any public assistance program, the commissioner
34.14shall provide all due process protections to the individual before terminating the individual
34.15from the program according to applicable statute and notifying the county attorney.
34.16EFFECTIVE DATE.This section is effective July 1, 2013.

34.17    Sec. 3. Minnesota Statutes 2012, section 268.19, subdivision 1, is amended to read:
34.18    Subdivision 1. Use of data. (a) Except as provided by this section, data gathered
34.19from any person under the administration of the Minnesota Unemployment Insurance Law
34.20are private data on individuals or nonpublic data not on individuals as defined in section
34.2113.02 , subdivisions 9 and 12, and may not be disclosed except according to a district court
34.22order or section 13.05. A subpoena is not considered a district court order. These data
34.23may be disseminated to and used by the following agencies without the consent of the
34.24subject of the data:
34.25    (1) state and federal agencies specifically authorized access to the data by state
34.26or federal law;
34.27    (2) any agency of any other state or any federal agency charged with the
34.28administration of an unemployment insurance program;
34.29    (3) any agency responsible for the maintenance of a system of public employment
34.30offices for the purpose of assisting individuals in obtaining employment;
34.31    (4) the public authority responsible for child support in Minnesota or any other
34.32state in accordance with section 256.978;
34.33    (5) human rights agencies within Minnesota that have enforcement powers;
34.34    (6) the Department of Revenue to the extent necessary for its duties under Minnesota
34.35laws;
35.1    (7) public and private agencies responsible for administering publicly financed
35.2assistance programs for the purpose of monitoring the eligibility of the program's recipients;
35.3    (8) the Department of Labor and Industry and the Division of Insurance Fraud
35.4Prevention in the Department of Commerce for uses consistent with the administration of
35.5their duties under Minnesota law;
35.6(9) the Department of Human Services and the Office of Inspector General and its
35.7agents within the Department of Human Services, including county fraud investigators,
35.8for investigations related to recipient or provider fraud and employees of providers when
35.9the provider is suspected of committing public assistance fraud;
35.10    (9) (10) local and state welfare agencies for monitoring the eligibility of the data
35.11subject for assistance programs, or for any employment or training program administered
35.12by those agencies, whether alone, in combination with another welfare agency, or in
35.13conjunction with the department or to monitor and evaluate the statewide Minnesota
35.14family investment program by providing data on recipients and former recipients of food
35.15stamps or food support, cash assistance under chapter 256, 256D, 256J, or 256K, child care
35.16assistance under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;
35.17    (10) (11) local and state welfare agencies for the purpose of identifying employment,
35.18wages, and other information to assist in the collection of an overpayment debt in an
35.19assistance program;
35.20    (11) (12) local, state, and federal law enforcement agencies for the purpose of
35.21ascertaining the last known address and employment location of an individual who is the
35.22subject of a criminal investigation;
35.23    (12) (13) the United States Immigration and Customs Enforcement has access to
35.24data on specific individuals and specific employers provided the specific individual or
35.25specific employer is the subject of an investigation by that agency;
35.26    (13) (14) the Department of Health for the purposes of epidemiologic investigations;
35.27    (14) (15) the Department of Corrections for the purpose of preconfinement and
35.28postconfinement employment tracking of committed offenders for the purpose of case
35.29planning; and
35.30    (15) (16) the state auditor to the extent necessary to conduct audits of job opportunity
35.31building zones as required under section 469.3201.
35.32    (b) Data on individuals and employers that are collected, maintained, or used by
35.33the department in an investigation under section 268.182 are confidential as to data
35.34on individuals and protected nonpublic data not on individuals as defined in section
35.3513.02 , subdivisions 3 and 13, and must not be disclosed except under statute or district
36.1court order or to a party named in a criminal proceeding, administrative or judicial, for
36.2preparation of a defense.
36.3    (c) Data gathered by the department in the administration of the Minnesota
36.4unemployment insurance program must not be made the subject or the basis for any
36.5suit in any civil proceedings, administrative or judicial, unless the action is initiated by
36.6the department.
36.7EFFECTIVE DATE.This section is effective the day following final enactment.

36.8    Sec. 4. Minnesota Statutes 2012, section 471.346, is amended to read:
36.9471.346 PUBLICLY OWNED AND LEASED VEHICLES IDENTIFIED.
36.10All motor vehicles owned or leased by a statutory or home rule charter city, county,
36.11town, school district, metropolitan or regional agency, or other political subdivision, except
36.12for unmarked vehicles used in general police and fire work and, arson investigations,
36.13 and Department of Human Services investigations including county fraud prevention
36.14investigations, shall have the name of the political subdivision plainly displayed on both
36.15sides of the vehicle in letters not less than 2-1/2 inches high and one-half inch wide. The
36.16identification must be in a color that contrasts with the color of the part of the vehicle on
36.17which it is placed and must remain on and be clean and visible throughout the period of
36.18which the vehicle is owned or leased by the political subdivision. The identification must
36.19not be on a removable plate or placard except on leased vehicles but the plate or placard
36.20must not be removed from a leased vehicle at any time during the term of the lease.


36.23    Section 1. Minnesota Statutes 2012, section 254B.05, subdivision 5, is amended to read:
36.24    Subd. 5. Rate requirements. (a) The commissioner shall establish rates for
36.25chemical dependency services and service enhancements funded under this chapter.
36.26(b) Eligible chemical dependency treatment services include:
36.27(1) outpatient treatment services that are licensed according to Minnesota Rules,
36.28parts 9530.6405 to 9530.6480, or applicable tribal license;
36.29(2) medication-assisted therapy services that are licensed according to Minnesota
36.30Rules, parts 9530.6405 to 9530.6480 and 9530.6500, or applicable tribal license;
36.31(3) medication-assisted therapy plus enhanced treatment services that meet the
36.32requirements of clause (2) and provide nine hours of clinical services each week;
36.33(4) high, medium, and low intensity residential treatment services that are licensed
36.34according to Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6505, or applicable
37.1tribal license which provide, respectively, 30, 15, and five hours of clinical services each
37.2week;
37.3(5) hospital-based treatment services that are licensed according to Minnesota Rules,
37.4parts 9530.6405 to 9530.6480, or applicable tribal license and licensed as a hospital under
37.5sections 144.50 to 144.56;
37.6(6) adolescent treatment programs that are licensed as outpatient treatment programs
37.7according to Minnesota Rules, parts 9530.6405 to 9530.6485, or as residential treatment
37.8programs according to Minnesota Rules, chapter 2960 parts 2960.0010 to 2960.0220, and
37.92960.0430 to 2960.0490, or applicable tribal license; and
37.10(7) room and board facilities that meet the requirements of section 254B.05,
37.11subdivision 1a.
37.12(c) The commissioner shall establish higher rates for programs that meet the
37.13requirements of paragraph (b) and the following additional requirements:
37.14(1) programs that serve parents with their children if the program:
37.15(i) provides on-site child care during hours of treatment activity that meets the
37.16additional licensing requirement requirements in Minnesota Rules, part 9530.6490, and
37.17provides child care that meets the requirements of or section 245A.03, subdivision 2,
37.18during hours of treatment activity; or
37.19(ii) arranges for off-site child care during hours of treatment activity at a facility that
37.20is licensed under chapter 245A as:
37.21(A) a child care center under Minnesota Rules, chapter 9503; or
37.22(B) a family child care home under Minnesota Rules, chapter 9502;
37.23(2) programs serving special populations if the program meets the requirements in
37.24Minnesota Rules, part 9530.6605, subpart 13;
37.25(3) programs that offer medical services delivered by appropriately credentialed
37.26health care staff in an amount equal to two hours per client per week if the medical
37.27needs of the client and the nature and provision of any medical services provided are
37.28documented in the client file; and
37.29(4) programs that offer services to individuals with co-occurring mental health and
37.30chemical dependency problems if:
37.31(i) the program meets the co-occurring requirements in Minnesota Rules, part
37.329530.6495;
37.33(ii) 25 percent of the counseling staff are licensed mental health professionals, as
37.34defined in section 245.462, subdivision 18, clauses (1) to (6), or are students or licensing
37.35candidates under the supervision of a licensed alcohol and drug counselor supervisor and
37.36licensed mental health professional, except that no more than 50 percent of the mental
38.1health staff may be students or licensing candidates with time documented to be directly
38.2related to provisions of co-occurring services;
38.3(iii) clients scoring positive on a standardized mental health screen receive a mental
38.4health diagnostic assessment within ten days of admission;
38.5(iv) the program has standards for multidisciplinary case review that include a
38.6monthly review for each client that, at a minimum, includes a licensed mental health
38.7professional and licensed alcohol and drug counselor, and their involvement in the review
38.8is documented;
38.9(v) family education is offered that addresses mental health and substance abuse
38.10disorders and the interaction between the two; and
38.11(vi) co-occurring counseling staff will receive eight hours of co-occurring disorder
38.12training annually.
38.13(d) In order to be eligible for a higher rate under paragraph (c), clause (1), a program
38.14that provides arrangements for off-site child care must maintain current documentation at
38.15the chemical dependency facility of the child care provider's current licensure to provide
38.16child care services. Programs that provide child care according to paragraph (c), clause
38.17(1), must be deemed in compliance with the licensing requirements in Minnesota Rules,
38.18part 9530.6490.
38.19(e) Adolescent residential programs that meet the requirements of Minnesota Rules,
38.20parts 2960.0580 to 2960.0700 2960.0430 to 2960.0490 and 2960.0580 to 2960.0690, are
38.21exempt from the requirements in paragraph (c), clause (4), items (i) to (iv).


38.24    Section 1. Minnesota Statutes 2012, section 245C.04, is amended to read:
38.25245C.04 WHEN BACKGROUND STUDY MUST OCCUR.
38.26    Subdivision 1. Licensed programs. (a) The commissioner shall conduct a
38.27background study of an individual required to be studied under section 245C.03,
38.28subdivision 1 , at least upon application for initial license for all license types.
38.29    (b) The commissioner shall conduct a background study of an individual required
38.30to be studied under section 245C.03, subdivision 1, at reapplication for a license for
38.31family child care.
38.32    (c) The commissioner is not required to conduct a study of an individual at the time
38.33of reapplication for a license if the individual's background study was completed by the
38.34commissioner of human services for an adult foster care license holder that is also:
38.35    (1) registered under chapter 144D; or
39.1    (2) licensed to provide home and community-based services to people with
39.2disabilities at the foster care location and the license holder does not reside in the foster
39.3care residence; and
39.4    (3) the following conditions are met:
39.5    (i) a study of the individual was conducted either at the time of initial licensure or
39.6when the individual became affiliated with the license holder;
39.7    (ii) the individual has been continuously affiliated with the license holder since
39.8the last study was conducted; and
39.9    (iii) the last study of the individual was conducted on or after October 1, 1995.
39.10    (d) From July 1, 2007, to June 30, 2009, the commissioner of human services shall
39.11conduct a study of an individual required to be studied under section 245C.03, at the
39.12time of reapplication for a child foster care license. The county or private agency shall
39.13collect and forward to the commissioner the information required under section 245C.05,
39.14subdivisions 1, paragraphs (a) and (b), and 5, paragraphs (a) and (b). The background
39.15study conducted by the commissioner of human services under this paragraph must
39.16include a review of the information required under section 245C.08, subdivisions 1,
39.17paragraph (a), clauses (1) to (5), 3, and 4.
39.18    (e) The commissioner of human services shall conduct a background study of an
39.19individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2)
39.20to (6), who is newly affiliated with a child foster care license holder. The county or
39.21private agency shall collect and forward to the commissioner the information required
39.22under section 245C.05, subdivisions 1 and 5. The background study conducted by the
39.23commissioner of human services under this paragraph must include a review of the
39.24information required under section 245C.08, subdivisions 1, 3, and 4.
39.25    (f) From January 1, 2010, to December 31, 2012, unless otherwise specified in
39.26paragraph (c), the commissioner shall conduct a study of an individual required to
39.27be studied under section 245C.03 at the time of reapplication for an adult foster care
39.28or family adult day services license: (1) the county shall collect and forward to the
39.29commissioner the information required under section 245C.05, subdivision 1, paragraphs
39.30(a) and (b), and subdivision 5, paragraphs (a) and (b), for background studies conducted
39.31by the commissioner for all family adult day services and for adult foster care when
39.32the adult foster care license holder resides in the adult foster care or family adult day
39.33services residence; (2) the license holder shall collect and forward to the commissioner
39.34the information required under section 245C.05, subdivisions 1, paragraphs (a) and (b);
39.35and 5, paragraphs (a) and (b), for background studies conducted by the commissioner for
39.36adult foster care when the license holder does not reside in the adult foster care residence;
40.1and (3) the background study conducted by the commissioner under this paragraph must
40.2include a review of the information required under section 245C.08, subdivision 1,
40.3paragraph (a), clauses (1) to (5), and subdivisions 3 and 4.
40.4(g) The commissioner shall conduct a background study of an individual specified
40.5under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly
40.6affiliated with an adult foster care or family adult day services license holder: (1) the
40.7county shall collect and forward to the commissioner the information required under
40.8section 245C.05, subdivision 1, paragraphs (a) and (b), and subdivision 5, paragraphs (a)
40.9and (b), for background studies conducted by the commissioner for all family adult day
40.10services and for adult foster care when the adult foster care license holder resides in
40.11the adult foster care residence; (2) the license holder shall collect and forward to the
40.12commissioner the information required under section 245C.05, subdivisions 1, paragraphs
40.13(a) and (b); and 5, paragraphs (a) and (b), for background studies conducted by the
40.14commissioner for adult foster care when the license holder does not reside in the adult
40.15foster care residence; and (3) the background study conducted by the commissioner under
40.16this paragraph must include a review of the information required under section 245C.08,
40.17subdivision 1 , paragraph (a), and subdivisions 3 and 4.
40.18(h) Applicants for licensure, license holders, and other entities as provided in this
40.19chapter must submit completed background study forms requests to the commissioner
40.20using the electronic system known as NETStudy before individuals specified in section
40.21245C.03, subdivision 1 , begin positions allowing direct contact in any licensed program.
40.22    (i) A license holder must initiate a new background study through the commissioner's
40.23online background study system NETStudy when:
40.24    (1) an individual returns to a position requiring a background study following an
40.25absence of 90 120 or more consecutive days; or
40.26    (2) a program that discontinued providing licensed direct contact services for 90 120
40.27 or more consecutive days begins to provide direct contact licensed services again.
40.28    The license holder shall maintain a copy of the notification provided to
40.29the commissioner under this paragraph in the program's files. If the individual's
40.30disqualification was previously set aside for the license holder's program and the new
40.31background study results in no new information that indicates the individual may pose a
40.32risk of harm to persons receiving services from the license holder, the previous set-aside
40.33shall remain in effect.
40.34    (j) For purposes of this section, a physician licensed under chapter 147 is considered
40.35to be continuously affiliated upon the license holder's receipt from the commissioner of
40.36health or human services of the physician's background study results.
41.1(k) For purposes of family child care, a substitute caregiver must receive repeat
41.2background studies at the time of each license renewal.
41.3    Subd. 2. Other state agencies. Applicants and license holders under the jurisdiction
41.4of other state agencies who are required in other statutory sections to initiate background
41.5studies under this chapter must submit completed background study forms to the
41.6commissioner before the background study subject begins in a position allowing direct
41.7contact in the licensed program or, where applicable, prior to being employed.
41.8    Subd. 3. Personal care provider organizations. (a) The commissioner shall
41.9conduct a background study of an individual required to be studied under section 245C.03,
41.10subdivision 2 , at least upon application for initial enrollment under sections 256B.0651 to
41.11256B.0656 and 256B.0659.
41.12(b) Organizations required to initiate background studies under sections 256B.0651
41.13to 256B.0656 and 256B.0659 for individuals described in section 245C.03, subdivision 2,
41.14must submit a completed background study form request to the commissioner using the
41.15electronic system known as NETStudy before those individuals begin a position allowing
41.16direct contact with persons served by the organization.
41.17(c) Organizations required to initiate background studies under sections 256B.0651
41.18to 256B.0656 and 256B.0659 for individuals described in section 245C.03, subdivision 2,
41.19must initiate a new background study through NETStudy when an individual returns to a
41.20position requiring a background study following an absence of 120 or more consecutive
41.21days.
41.22    Subd. 4. Supplemental nursing services agencies. (a) The commissioner shall
41.23conduct a background study of an individual required to be studied under section 245C.03,
41.24subdivision 3 , at least upon application for registration under section 144A.71, subdivision
41.251 .
41.26(b) Each supplemental nursing services agency must initiate background studies
41.27using the electronic system known as NETStudy before an individual begins a position
41.28allowing direct contact with persons served by the agency and annually thereafter.
41.29    Subd. 5. Personnel agencies; educational programs; professional services
41.30agencies. Agencies, programs, and individuals who initiate background studies under
41.31section 245C.03, subdivision 4, must initiate the studies annually using the electronic
41.32system known as NETStudy.
41.33    Subd. 6. Unlicensed home and community-based waiver providers of service to
41.34seniors and individuals with disabilities. (a) Providers required to initiate background
41.35studies under section 256B.4912 must initiate a study using the electronic system known
42.1as NETStudy before the individual begins in a position allowing direct contact with
42.2persons served by the provider.
42.3(b) Except as provided in paragraph (c), the providers must initiate a background
42.4study annually of an individual required to be studied under section 245C.03, subdivision 6.
42.5(c) After an initial background study under this subdivision is initiated on an
42.6individual by a provider of both services licensed by the commissioner and the unlicensed
42.7services under this subdivision, a repeat annual background study is not required if:
42.8(1) the provider maintains compliance with the requirements of section 245C.07,
42.9paragraph (a), regarding one individual with one address and telephone number as the
42.10person to receive sensitive background study information for the multiple programs that
42.11depend on the same background study, and that the individual who is designated to receive
42.12the sensitive background information is capable of determining, upon the request of the
42.13commissioner, whether a background study subject is providing direct contact services
42.14in one or more of the provider's programs or services and, if so, at which location or
42.15locations; and
42.16(2) the individual who is the subject of the background study provides direct
42.17contact services under the provider's licensed program for at least 40 hours per year so
42.18the individual will be recognized by a probation officer or corrections agent to prompt
42.19a report to the commissioner regarding criminal convictions as required under section
42.20245C.05, subdivision 7 .
42.21    Subd. 7. New study required with legal name change. For a background study
42.22completed on an individual required to be studied under section 245C.03, the license
42.23holder or other entity that initiated the background study must initiate a new background
42.24study using the electronic system known as NETStudy when an individual who is affiliated
42.25with the license holder or other entity undergoes a legal name change.

42.26    Sec. 2. Minnesota Statutes 2012, section 245C.05, subdivision 6, is amended to read:
42.27    Subd. 6. Applicant, license holder, other entities, and agencies. (a) The applicant,
42.28license holder, other entities as provided in this chapter, Bureau of Criminal Apprehension,
42.29law enforcement agencies, commissioner of health, and county agencies shall help with
42.30the study by giving the commissioner criminal conviction data and reports about the
42.31maltreatment of adults substantiated under section 626.557 and the maltreatment of
42.32minors substantiated under section 626.556.
42.33(b) If a background study is initiated by an applicant, license holder, or other entities
42.34as provided in this chapter, and the applicant, license holder, or other entity receives
42.35information about the possible criminal or maltreatment history of an individual who is
43.1the subject of the background study, the applicant, license holder, or other entity must
43.2immediately provide the information to the commissioner.
43.3(c) The program or county or other agency must provide written notice to the
43.4individual who is the subject of the background study of the requirements under this
43.5subdivision.

43.6    Sec. 3. Minnesota Statutes 2012, section 245C.08, subdivision 1, is amended to read:
43.7    Subdivision 1. Background studies conducted by Department of Human
43.8Services. (a) For a background study conducted by the Department of Human Services,
43.9the commissioner shall review:
43.10    (1) information related to names of substantiated perpetrators of maltreatment of
43.11vulnerable adults that has been received by the commissioner as required under section
43.12626.557, subdivision 9c , paragraph (j);
43.13    (2) the commissioner's records relating to the maltreatment of minors in licensed
43.14programs, and from findings of maltreatment of minors as indicated through the social
43.15service information system;
43.16    (3) information from juvenile courts as required in subdivision 4 for individuals
43.17listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;
43.18    (4) information from the Bureau of Criminal Apprehension;
43.19    (5) except as provided in clause (6), information from the national crime information
43.20system when the commissioner has reasonable cause as defined under section 245C.05,
43.21subdivision 5; and
43.22    (6) for a background study related to a child foster care application for licensure or
43.23adoptions, the commissioner shall also review:
43.24    (i) information from the child abuse and neglect registry for any state in which the
43.25background study subject has resided for the past five years; and
43.26    (ii) information from national crime information databases, when the background
43.27study subject is 18 years of age or older.
43.28    (b) Notwithstanding expungement by a court, the commissioner may consider
43.29information obtained under paragraph (a), clauses (3) and (4), unless the commissioner
43.30received notice of the petition for expungement and the court order for expungement is
43.31directed specifically to the commissioner.
43.32(c) When the commissioner has reasonable cause to believe that the identity of
43.33a background study subject is uncertain, the commissioner may require the subject to
43.34provide a set of classifiable fingerprints for purposes of completing a fingerprint-based
43.35record check with the Bureau of Criminal Apprehension.

44.1    Sec. 4. Minnesota Statutes 2012, section 245C.16, subdivision 1, is amended to read:
44.2    Subdivision 1. Determining immediate risk of harm. (a) If the commissioner
44.3determines that the individual studied has a disqualifying characteristic, the commissioner
44.4shall review the information immediately available and make a determination as to the
44.5subject's immediate risk of harm to persons served by the program where the individual
44.6studied will have direct contact with, or access to, people receiving services.
44.7    (b) The commissioner shall consider all relevant information available, including the
44.8following factors in determining the immediate risk of harm:
44.9    (1) the recency of the disqualifying characteristic;
44.10    (2) the recency of discharge from probation for the crimes;
44.11    (3) the number of disqualifying characteristics;
44.12    (4) the intrusiveness or violence of the disqualifying characteristic;
44.13    (5) the vulnerability of the victim involved in the disqualifying characteristic;
44.14    (6) the similarity of the victim to the persons served by the program where the
44.15individual studied will have direct contact;
44.16    (7) whether the individual has a disqualification from a previous background study
44.17that has not been set aside; and
44.18    (8) if the individual has a disqualification which may not be set aside because it is
44.19a permanent bar under section 245C.24, subdivision 1, the commissioner may order the
44.20immediate removal of the individual from any position allowing direct contact with, or
44.21access to, persons receiving services from the program.
44.22    (c) This section does not apply when the subject of a background study is regulated
44.23by a health-related licensing board as defined in chapter 214, and the subject is determined
44.24to be responsible for substantiated maltreatment under section 626.556 or 626.557.
44.25    (d) This section does not apply to a background study related to an initial application
44.26for a child foster care license.
44.27(e) Except for paragraph (f), this section does not apply to a background study that
44.28is also subject to the requirements under section 256B.0659, subdivisions 11 and 13, for
44.29a personal care assistant or a qualified professional as defined in section 256B.0659,
44.30subdivision 1 .
44.31    (f) If the commissioner has reason to believe, based on arrest information or an
44.32active maltreatment investigation, that an individual poses an imminent risk of harm to
44.33persons receiving services, the commissioner may order that the person be continuously
44.34supervised or immediately removed pending the conclusion of the maltreatment
44.35investigation or criminal proceedings.

45.1    Sec. 5. Minnesota Statutes 2012, section 245C.20, subdivision 1, is amended to read:
45.2    Subdivision 1. Background studies initiated by program. A licensed program
45.3shall document the date the program initiates a background study under this chapter
45.4 and the date the subject of the study first has direct contact with persons served by the
45.5program in the program's personnel files. When a background study is completed under
45.6this chapter, a licensed program shall maintain a notice that the study was undertaken and
45.7completed in the program's personnel files. Except when background studies are initiated
45.8through the commissioner's online system, if a licensed program has not received a
45.9response from the commissioner under section 245C.17 within 45 days of initiation of the
45.10background study request, the licensed program must contact the human services licensing
45.11division to inquire about the status of the study. If a license holder initiates a background
45.12study under the commissioner's online system, but the background study subject's name
45.13does not appear in the list of active or recent studies initiated by that license holder, the
45.14license holder must either contact the human services licensing division or resubmit the
45.15background study information online for that individual.

45.16    Sec. 6. Minnesota Statutes 2012, section 245C.22, subdivision 1, is amended to read:
45.17    Subdivision 1. Time frame; response to disqualification reconsideration
45.18requests. (a) The commissioner shall respond in writing or by electronic transmission to
45.19all reconsideration requests for which the basis for the request is that the information the
45.20commissioner relied upon to disqualify is incorrect or inaccurate within 30 working days
45.21of receipt of a complete request and all required relevant information.
45.22(b) If the basis for a disqualified individual's reconsideration request is that the
45.23individual does not pose a risk of harm, the commissioner shall respond to the request
45.24within 15 working days after receiving the a complete request for reconsideration and
45.25all required relevant information.
45.26(c) If the disqualified individual's reconsideration request is based on both the
45.27correctness or accuracy of the information the commissioner relied upon to disqualify the
45.28individual and the individual's risk of harm, the commissioner shall respond to the request
45.29within 45 working days after receiving the a complete request for reconsideration and
45.30all required relevant information.

45.31    Sec. 7. Minnesota Statutes 2012, section 245C.23, subdivision 2, is amended to read:
45.32    Subd. 2. Commissioner's notice of disqualification that is not set aside. (a) The
45.33commissioner shall notify the license holder of the disqualification and order the license
46.1holder to immediately remove the individual from any position allowing direct contact
46.2with persons receiving services from the license holder if:
46.3    (1) the individual studied does not submit a timely request for reconsideration
46.4under section 245C.21;
46.5    (2) the individual submits a timely request for reconsideration, but the commissioner
46.6does not set aside the disqualification for that license holder under section 245C.22, unless
46.7the individual has a right to request a hearing under section 245C.27, 245C.28, or 256.045;
46.8    (3) an individual who has a right to request a hearing under sections 245C.27 and
46.9256.045 , or 245C.28 and chapter 14 for a disqualification that has not been set aside, does
46.10not request a hearing within the specified time; or
46.11    (4) an individual submitted a timely request for a hearing under sections 245C.27
46.12and 256.045, or 245C.28 and chapter 14, but the commissioner does not set aside the
46.13disqualification under section 245A.08, subdivision 5, or 256.045.
46.14    (b) If the commissioner does not set aside the disqualification under section 245C.22,
46.15and the license holder was previously ordered under section 245C.17 to immediately
46.16remove the disqualified individual from direct contact with persons receiving services or
46.17to ensure that the individual is under continuous, direct supervision when providing direct
46.18contact services, the order remains in effect pending the outcome of a hearing under
46.19sections 245C.27 and 256.045, or 245C.28 and chapter 14.
46.20(c) If the commissioner does not set aside the disqualification under section 245C.22,
46.21and the license holder was not previously ordered under section 245C.17 to immediately
46.22remove the disqualified individual from direct contact with persons receiving services or
46.23to ensure that the individual is under continuous direct supervision when providing direct
46.24contact services, the commissioner shall order the individual to remain under continuous
46.25direct supervision pending the outcome of a hearing under sections 245C.27 and 256.045,
46.26or 245C.28 and chapter 14.
46.27    (c) (d) For background studies related to child foster care, the commissioner shall
46.28also notify the county or private agency that initiated the study of the results of the
46.29reconsideration.
46.30(d) (e) For background studies related to adult foster care and family adult day
46.31services, the commissioner shall also notify the county that initiated the study of the
46.32results of the reconsideration.

46.33    Sec. 8. Minnesota Statutes 2012, section 245C.24, subdivision 2, is amended to read:
46.34    Subd. 2. Permanent bar to set aside a disqualification. (a) Except as otherwise
46.35provided in paragraph (b) this subdivision, the commissioner may not set aside the
47.1disqualification of any individual disqualified pursuant to this chapter, regardless of how
47.2much time has passed, if the individual was disqualified for a crime or conduct listed in
47.3section 245C.15, subdivision 1.
47.4    (b) For an individual in the chemical dependency or corrections field who was
47.5disqualified for a crime or conduct listed under section 245C.15, subdivision 1, and whose
47.6disqualification was who received a set aside prior to July 1, 2005, the commissioner
47.7must consider granting a variance pursuant to section 245C.30 for the license holder for
47.8a program dealing primarily with adults. A request for reconsideration evaluated under
47.9this paragraph must include a letter of recommendation from the license holder that was
47.10subject to the prior set-aside decision addressing the individual's quality of care to children
47.11or vulnerable adults and the circumstances of the individual's departure from that service.
47.12(c) When a licensed foster care provider adopts an individual who had received
47.13foster care services from the provider for over six months, and the adopted individual is
47.14required to receive a background study under section 245C.03, subdivision 1, paragraph
47.15(a), clause (2) or (6), the commissioner may grant a variance to the license holder under
47.16section 245C.30 to permit the adopted individual with a permanent disqualification
47.17to remain affiliated with the license holder under the conditions of the variance when
47.18the variance is recommended by the county of responsibility for each of the remaining
47.19individuals in placement in the home and the licensing agency for the home.
47.20(d) The commissioner shall consider granting a set aside under section 245C.22 or a
47.21variance under section 245C.30 to an individual who is now 21 years of age or older and
47.22who was disqualified for a crime or conduct listed under section 245C.15, subdivision 1,
47.23occurring while the individual was under the age of 18. This paragraph does not apply to
47.24individuals who were convicted of the disqualifying crime following certification under
47.25section 260B.125.

47.26    Sec. 9. Minnesota Statutes 2012, section 245C.28, subdivision 1, is amended to read:
47.27    Subdivision 1. License holder. (a) If a maltreatment determination or a
47.28disqualification for which reconsideration was timely requested and which was not set
47.29aside is the basis for a denial of a license under section 245A.05 or a licensing sanction
47.30under section 245A.07, the license holder has the right to a contested case hearing under
47.31chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The license holder must
47.32submit the appeal under section 245A.05 or 245A.07, subdivision 3.
47.33    (b) As provided under section 245A.08, subdivision 2a, if the denial of a license
47.34or licensing sanction is based on a disqualification for which reconsideration was timely
48.1requested and was not set aside, the scope of the consolidated contested case hearing
48.2must include:
48.3    (1) the disqualification, to the extent the license holder otherwise has a hearing right
48.4on the disqualification under this chapter; and
48.5    (2) the licensing sanction or denial of a license.
48.6    (c) As provided for under section 245A.08, subdivision 2a, if the denial of a license
48.7or licensing sanction is based on a determination of maltreatment under section 626.556
48.8or 626.557, or a disqualification for serious or recurring maltreatment which was not set
48.9aside, the scope of the contested case hearing must include:
48.10    (1) the maltreatment determination, if the maltreatment is not conclusive under
48.11section 245C.29;
48.12    (2) the disqualification, if the disqualification is not conclusive under section
48.13245C.29 ; and
48.14    (3) the licensing sanction or denial of a license. In such cases, a fair hearing must not
48.15be conducted under section 256.045. If the disqualification was based on a determination
48.16of substantiated serious or recurring maltreatment under section 626.556 or 626.557, the
48.17appeal must be submitted under sections 245A.07, subdivision 3, and 626.556, subdivision
48.1810i, or 626.557, subdivision 9d.
48.19    (d) Except for family child care and child foster care, reconsideration of a
48.20maltreatment determination under sections 626.556, subdivision 10i, and 626.557,
48.21subdivision 9d, and reconsideration of a disqualification under section 245C.22, must
48.22not be conducted when:
48.23    (1) a denial of a license under section 245A.05, or a licensing sanction under section
48.24245A.07 , is based on a determination that the license holder is responsible for maltreatment
48.25or the disqualification of a license holder based on serious or recurring maltreatment;
48.26    (2) the denial of a license or licensing sanction is issued at the same time as the
48.27maltreatment determination or disqualification; and
48.28    (3) the license holder appeals the maltreatment determination, disqualification, and
48.29denial of a license or licensing sanction. In such cases a fair hearing under section 256.045
48.30must not be conducted under sections 245C.27, 626.556, subdivision 10i, and 626.557,
48.31subdivision 9d. Under section 245A.08, subdivision 2a, the scope of the consolidated
48.32contested case hearing must include the maltreatment determination, disqualification, and
48.33denial of a license or licensing sanction.
48.34    Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment
48.35determination or disqualification, but does not appeal the denial of a license or a licensing
48.36sanction, reconsideration of the maltreatment determination shall be conducted under
49.1sections 626.556, subdivision 10i, and 626.557, subdivision 9d, and reconsideration of the
49.2disqualification shall be conducted under section 245C.22. In such cases, a fair hearing
49.3shall also be conducted as provided under sections 245C.27, 626.556, subdivision 10i, and
49.4626.557, subdivision 9d .

49.5    Sec. 10. Minnesota Statutes 2012, section 245C.28, subdivision 3, is amended to read:
49.6    Subd. 3. Employees of public employer. (a) A disqualified individual who is an
49.7employee of an employer, as defined in section 179A.03, subdivision 15, may request
49.8a contested case hearing under chapter 14, and specifically Minnesota Rules, parts
49.91400.8505 to 1400.8612, following a reconsideration decision under section 245C.23,
49.10unless the disqualification is deemed conclusive under section 245C.29. The request for a
49.11contested case hearing must be made in writing and must be postmarked and sent within
49.1230 calendar days after the employee receives notice of the reconsideration decision. If
49.13the individual was disqualified based on a conviction or admission to any crimes listed in
49.14section 245C.15, the scope of the contested case hearing shall be limited solely to whether
49.15the individual poses a risk of harm pursuant to section 245C.22.
49.16(b) When an individual is disqualified based on a maltreatment determination, the
49.17scope of the contested case hearing under paragraph (a), must include the maltreatment
49.18determination and the disqualification. In such cases, a fair hearing must not be conducted
49.19under section 256.045.
49.20(c) Rules adopted under this chapter may not preclude an employee in a contested
49.21case hearing for a disqualification from submitting evidence concerning information
49.22gathered under this chapter.
49.23(d) When an individual has been disqualified from multiple licensed programs, if
49.24at least one of the disqualifications entitles the person to a contested case hearing under
49.25this subdivision, the scope of the contested case hearing shall include all disqualifications
49.26from licensed programs.
49.27(e) In determining whether the disqualification should be set aside, the administrative
49.28law judge shall consider all of the characteristics that cause the individual to be disqualified,
49.29as well as all the factors set forth in section 245C.22, in order to determine whether the
49.30individual poses has met the burden of demonstrating that the individual does not pose
49.31 a risk of harm. The administrative law judge's recommendation and the commissioner's
49.32order to set aside a disqualification that is the subject of the hearing constitutes a
49.33determination that the individual does not pose a risk of harm and that the individual may
49.34provide direct contact services in the individual program specified in the set aside.
50.1(f) An individual may not request a contested case hearing under this section if a
50.2contested case hearing has previously been held regarding the individual's disqualification
50.3on the same basis.

50.4    Sec. 11. Minnesota Statutes 2012, section 245C.29, subdivision 2, is amended to read:
50.5    Subd. 2. Conclusive disqualification determination. (a) Unless otherwise
50.6specified in statute, a determination that:
50.7(1) the information the commissioner relied upon to disqualify an individual under
50.8section 245C.14 was correct based on serious or recurring maltreatment;
50.9(2) a preponderance of the evidence shows that the individual committed an act or
50.10acts that meet the definition of any of the crimes listed in section 245C.15; or
50.11(3) the individual failed to make required reports under section 626.556, subdivision
50.123 , or 626.557, subdivision 3, is conclusive if: A disqualification is conclusive for purposes
50.13of current and future background studies if:
50.14(i) (1) the commissioner has issued a final order in an appeal of that determination
50.15 the disqualification under section 245A.08, subdivision 5, 245C.28, subdivision 3, or
50.16256.045 , or a court has issued a final decision;
50.17(ii) (2) the individual did not request reconsideration of the disqualification under
50.18section 245C.21 on the basis that the information relied upon to disqualify the individual
50.19was incorrect; or
50.20(iii) (3) the individual did not timely request a hearing on the disqualification under
50.21section 256.045 or this chapter, chapter 14, or section 256.045 after previously being
50.22given the right to do so.
50.23(b) When a licensing action under section 245A.05, 245A.06, or 245A.07 is based
50.24on the disqualification of an individual in connection with a license to provide family child
50.25care, foster care for children in the provider's own home, or foster care services for adults
50.26in the provider's own home, that disqualification shall be conclusive for purposes of the
50.27licensing action if a request for reconsideration was not submitted within 30 calendar days
50.28of the individual's receipt of the notice of disqualification.
50.29(c) If a determination that the information relied upon to disqualify an individual
50.30was correct and disqualification is conclusive under this section, and the individual is
50.31subsequently disqualified under section 245C.15, the individual has a right to request
50.32reconsideration on the risk of harm under section 245C.21 unless the commissioner is
50.33barred from setting aside the disqualification under 245C.24. Subsequent determinations
50.34 The commissioner's decision regarding the risk of harm shall be made according to section
51.1245C.22 and are not subject to another the final agency decision and is not subject to a
51.2 hearing under this chapter, section 256.045 or chapter 14, or section 256.045.

51.3    Sec. 12. Minnesota Statutes 2012, section 256.045, subdivision 3b, is amended to read:
51.4    Subd. 3b. Standard of evidence for maltreatment and disqualification hearings.
51.5(a) The state human services referee shall determine that maltreatment has occurred if a
51.6preponderance of evidence exists to support the final disposition under sections 626.556
51.7and 626.557. For purposes of hearings regarding disqualification, the state human services
51.8referee shall affirm the proposed disqualification in an appeal under subdivision 3,
51.9paragraph (a), clause (9), if a preponderance of the evidence shows the individual has:
51.10(1) committed maltreatment under section 626.556 or 626.557, which is serious or
51.11recurring;
51.12(2) committed an act or acts meeting the definition of any of the crimes listed in
51.13section 245C.15, subdivisions 1 to 4; or
51.14(3) failed to make required reports under section 626.556 or 626.557, for incidents
51.15in which the final disposition under section 626.556 or 626.557 was substantiated
51.16maltreatment that was serious or recurring.
51.17(b) If the disqualification is affirmed, the state human services referee shall
51.18determine whether the individual poses a risk of harm in accordance with the requirements
51.19of section 245C.22, and whether the disqualification should be set aside or not set aside.
51.20In determining whether the disqualification should be set aside, the human services
51.21referee shall consider all of the characteristics that cause the individual to be disqualified,
51.22including those characteristics that were not subject to review under paragraph (a), in
51.23order to determine whether the individual poses a risk of harm. A decision to set aside
51.24a disqualification that is the subject of the hearing constitutes a determination that the
51.25individual does not pose a risk of harm and that the individual may provide direct contact
51.26services in the individual program specified in the set aside. If a determination that the
51.27information relied upon to disqualify an individual was correct and is conclusive under
51.28section 245C.29, and the individual is subsequently disqualified under section 245C.14,
51.29the individual has a right to again request reconsideration on the risk of harm under section
51.30245C.21. Subsequent determinations regarding risk of harm are not subject to another
51.31hearing under this section.
51.32(c) If a disqualification is based solely on a conviction or is conclusive for any
51.33reason under section 245C.29, the disqualified individual does not have a right to a
51.34hearing under this section.
52.1(c) (d) The state human services referee shall recommend an order to the
52.2commissioner of health, education, or human services, as applicable, who shall issue a
52.3final order. The commissioner shall affirm, reverse, or modify the final disposition. Any
52.4order of the commissioner issued in accordance with this subdivision is conclusive upon
52.5the parties unless appeal is taken in the manner provided in subdivision 7. In any licensing
52.6appeal under chapters 245A and 245C and sections 144.50 to 144.58 and 144A.02 to
52.7144A.46 , the commissioner's determination as to maltreatment is conclusive, as provided
52.8under section 245C.29."
52.9Delete the title and insert:
52.11relating to human services; modifying provisions related to licensing data,
52.12human services licensing, child care programs, financial fraud and abuse
52.13investigations, vendors of chemical dependency treatment services, background
52.14studies, and fair hearings; requiring the use of NETStudy for background studies;
52.15amending Minnesota Statutes 2012, sections 13.46, subdivisions 3, 4; 119B.125,
52.16subdivision 1b; 168.012, subdivision 1; 245A.02, subdivision 5a; 245A.04,
52.17subdivisions 1, 5, 11; 245A.06, subdivision 1; 245A.07, subdivisions 2, 3, by
52.18adding a subdivision; 245A.08, subdivisions 2a, 5a; 245A.146, subdivisions
52.193, 4; 245A.50, subdivision 4; 245A.65, subdivision 1; 245A.66, subdivision
52.201; 245B.02, subdivision 10; 245B.04; 245B.05, subdivisions 1, 7; 245B.07,
52.21subdivisions 5, 9, 10; 245C.04; 245C.05, subdivision 6; 245C.08, subdivision
52.221; 245C.16, subdivision 1; 245C.20, subdivision 1; 245C.22, subdivision 1;
52.23245C.23, subdivision 2; 245C.24, subdivision 2; 245C.28, subdivisions 1, 3;
52.24245C.29, subdivision 2; 254B.05, subdivision 5; 256.01, subdivision 18d;
52.25256.045, subdivision 3b; 268.19, subdivision 1; 471.346; proposing coding for
52.26new law in Minnesota Statutes, chapter 245A; repealing Minnesota Statutes
52.272012, sections 245B.02, subdivision 8a; 245B.07, subdivision 7a."