SF 1340

1.2relating to human services; modifying provisions related to licensing data, human
1.3services licensing, child care programs, financial fraud and abuse investigations,
1.4and vendors of chemical dependency treatment services; modifying background
1.5studies;amending Minnesota Statutes 2012, sections 13.46, subdivisions 3, 4;
1.6119B.125, subdivision 1b; 168.012, subdivision 1; 245A.02, subdivision 5a;
1.7245A.04, subdivisions 1, 5, 11; 245A.06, subdivision 1; 245A.07, subdivision
1.82, by adding a subdivision; 245A.08, subdivision 5a; 245A.146, subdivisions
1.93, 4; 245A.65, subdivision 1; 245A.66, subdivision 1; 245C.04, as amended;
1.10245C.05, subdivision 6; 245C.16, subdivision 1; 245C.20, subdivision 1;
1.11245C.22, subdivision 1; 245C.23, subdivision 2; 245C.28, subdivisions 1, 3;
1.12245C.29, subdivision 2; 254B.05, subdivision 5; 256.01, subdivision 18d;
1.13471.346; Minnesota Statutes 2013 Supplement, sections 245A.07, subdivisions
1.142a, 3; 245A.08, subdivision 2a; 245A.50, subdivision 4; 245C.08, subdivision
1.151; 256.045, subdivision 3b; 268.19, subdivision 1.
1.16BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:


1.19    Section 1. Minnesota Statutes 2012, section 13.46, subdivision 3, is amended to read:
1.20    Subd. 3. Investigative data. (a) Data on persons, including data on vendors of
1.21services, licensees, and applicants that is collected, maintained, used, or disseminated
1.22by the welfare system in an investigation, authorized by statute, and relating to the
1.23enforcement of rules or law are confidential data on individuals pursuant to section 13.02,
1.24subdivision 3 , or protected nonpublic data not on individuals pursuant to section 13.02,
1.25subdivision 13 , and shall not be disclosed except:
1.26(1) pursuant to section 13.05;
1.27(2) pursuant to statute or valid court order;
2.1(3) to a party named in a civil or criminal proceeding, administrative or judicial, for
2.2preparation of defense; or
2.3(4) to provide notices required or permitted by statute.
2.4The data referred to in this subdivision shall be classified as public data upon
2.5submission to an administrative law judge or court in an administrative or judicial
2.6proceeding. Inactive welfare investigative data shall be treated as provided in section
2.713.39, subdivision 3 .
2.8(b) Notwithstanding any other provision in law, the commissioner of human services
2.9shall provide all active and inactive investigative data, including the name of the reporter
2.10of alleged maltreatment under section 626.556 or 626.557, to the ombudsman for mental
2.11health and developmental disabilities upon the request of the ombudsman.
2.12    (c) Notwithstanding paragraph (a) and section 13.39, the existence of an
2.13investigation by the commissioner of possible overpayments of public funds to a service
2.14provider is public data during an investigation or recipient may be disclosed if the
2.15commissioner determines that it will not compromise the investigation.

2.16    Sec. 2. Minnesota Statutes 2012, section 13.46, subdivision 4, is amended to read:
2.17    Subd. 4. Licensing data. (a) As used in this subdivision:
2.18    (1) "licensing data" are all data collected, maintained, used, or disseminated by the
2.19welfare system pertaining to persons licensed or registered or who apply for licensure
2.20or registration or who formerly were licensed or registered under the authority of the
2.21commissioner of human services;
2.22    (2) "client" means a person who is receiving services from a licensee or from an
2.23applicant for licensure; and
2.24    (3) "personal and personal financial data" are Social Security numbers, identity
2.25of and letters of reference, insurance information, reports from the Bureau of Criminal
2.26Apprehension, health examination reports, and social/home studies.
2.27    (b)(1)(i) Except as provided in paragraph (c), the following data on applicants,
2.28license holders, and former licensees are public: name, address, telephone number of
2.29licensees, date of receipt of a completed application, dates of licensure, licensed capacity,
2.30type of client preferred, variances granted, record of training and education in child care
2.31and child development, type of dwelling, name and relationship of other family members,
2.32previous license history, class of license, the existence and status of complaints, and the
2.33number of serious injuries to or deaths of individuals in the licensed program as reported
2.34to the commissioner of human services, the local social services agency, or any other
3.1county welfare agency. For purposes of this clause, a serious injury is one that is treated
3.2by a physician.
3.3(ii) When a correction order, an order to forfeit a fine, an order of license suspension,
3.4an order of temporary immediate suspension, an order of license revocation, an order of
3.5license denial, or an order of conditional license has been issued, or a complaint is resolved,
3.6the following data on current and former licensees and applicants are public: the general
3.7nature of the complaint or allegations leading to the temporary immediate suspension; the
3.8substance and investigative findings of the licensing or maltreatment complaint, licensing
3.9violation, or substantiated maltreatment; the existence of settlement negotiations; the
3.10record of informal resolution of a licensing violation; orders of hearing; findings of fact;
3.11conclusions of law; specifications of the final correction order, fine, suspension, temporary
3.12immediate suspension, revocation, denial, or conditional license contained in the record of
3.13licensing action; whether a fine has been paid; and the status of any appeal of these actions.
3.14(iii) When a license denial under section 245A.05 or a sanction under section
3.15245A.07 is based on a determination that the a license holder or, applicant, or controlling
3.16individual is responsible for maltreatment under section 626.556 or 626.557, the identity
3.17of the applicant or, license holder, or controlling individual as the individual responsible
3.18for maltreatment is public data at the time of the issuance of the license denial or sanction.
3.19(iv) When a license denial under section 245A.05 or a sanction under section
3.20245A.07 is based on a determination that the a license holder or, applicant, or controlling
3.21individual is disqualified under chapter 245C, the identity of the license holder or,
3.22 applicant, or controlling individual as the disqualified individual and the reason for
3.23the disqualification are public data at the time of the issuance of the licensing sanction
3.24or denial. If the applicant or, license holder, or controlling individual requests
3.25reconsideration of the disqualification and the disqualification is affirmed, the reason for
3.26the disqualification and the reason to not set aside the disqualification are public data.
3.27    (2) Notwithstanding sections 626.556, subdivision 11, and 626.557, subdivision 12b,
3.28when any person subject to disqualification under section 245C.14 in connection with a
3.29license to provide family day care for children, child care center services, foster care for
3.30children in the provider's home, or foster care or day care services for adults in the provider's
3.31home is a substantiated perpetrator of maltreatment, and the substantiated maltreatment is
3.32a reason for a licensing action, the identity of the substantiated perpetrator of maltreatment
3.33is public data. For purposes of this clause, a person is a substantiated perpetrator if the
3.34maltreatment determination has been upheld under section 256.045; 626.556, subdivision
3.3510i ; 626.557, subdivision 9d; or chapter 14, or if an individual or facility has not timely
3.36exercised appeal rights under these sections, except as provided under clause (1).
4.1    (3) For applicants who withdraw their application prior to licensure or denial of a
4.2license, the following data are public: the name of the applicant, the city and county in
4.3which the applicant was seeking licensure, the dates of the commissioner's receipt of the
4.4initial application and completed application, the type of license sought, and the date
4.5of withdrawal of the application.
4.6    (4) For applicants who are denied a license, the following data are public: the
4.7name and address of the applicant, the city and county in which the applicant was
4.8seeking licensure, the dates of the commissioner's receipt of the initial application and
4.9completed application, the type of license sought, the date of denial of the application, the
4.10nature of the basis for the denial, the existence of settlement negotiations, the record of
4.11informal resolution of a denial, orders of hearings, findings of fact, conclusions of law,
4.12specifications of the final order of denial, and the status of any appeal of the denial.
4.13    (5) The following data on persons subject to disqualification under section 245C.14 in
4.14connection with a license to provide family day care for children, child care center services,
4.15foster care for children in the provider's home, or foster care or day care services for adults
4.16in the provider's home, are public: the nature of any disqualification set aside under section
4.17245C.22 , subdivisions 2 and 4, and the reasons for setting aside the disqualification; the
4.18nature of any disqualification for which a variance was granted under sections 245A.04,
4.19subdivision 9 ; and 245C.30, and the reasons for granting any variance under section
4.20245A.04, subdivision 9 ; and, if applicable, the disclosure that any person subject to
4.21a background study under section 245C.03, subdivision 1, has successfully passed a
4.22background study. If a licensing sanction under section 245A.07, or a license denial under
4.23section 245A.05, is based on a determination that an individual subject to disqualification
4.24under chapter 245C is disqualified, the disqualification as a basis for the licensing sanction
4.25or denial is public data. As specified in clause (1), item (iv), if the disqualified individual
4.26is the license holder or, applicant, or controlling individual, the identity of the license
4.27holder or, applicant, or controlling individual and the reason for the disqualification are
4.28public data; and, if the license holder or, applicant, or controlling individual requested
4.29reconsideration of the disqualification and the disqualification is affirmed, the reason for
4.30the disqualification and the reason to not set aside the disqualification are public data. If
4.31the disqualified individual is an individual other than the license holder or, applicant, or
4.32controlling individual, the identity of the disqualified individual shall remain private data.
4.33    (6) When maltreatment is substantiated under section 626.556 or 626.557 and the
4.34victim and the substantiated perpetrator are affiliated with a program licensed under
4.35chapter 245A, the commissioner of human services, local social services agency, or
5.1county welfare agency may inform the license holder where the maltreatment occurred of
5.2the identity of the substantiated perpetrator and the victim.
5.3    (7) Notwithstanding clause (1), for child foster care, only the name of the license
5.4holder and the status of the license are public if the county attorney has requested that data
5.5otherwise classified as public data under clause (1) be considered private data based on the
5.6best interests of a child in placement in a licensed program.
5.7    (c) The following are private data on individuals under section 13.02, subdivision
5.812 , or nonpublic data under section 13.02, subdivision 9: personal and personal financial
5.9data on family day care program and family foster care program applicants and licensees
5.10and their family members who provide services under the license.
5.11    (d) The following are private data on individuals: the identity of persons who have
5.12made reports concerning licensees or applicants that appear in inactive investigative data,
5.13and the records of clients or employees of the licensee or applicant for licensure whose
5.14records are received by the licensing agency for purposes of review or in anticipation of a
5.15contested matter. The names of reporters of complaints or alleged violations of licensing
5.16standards under chapters 245A, 245B, 245C, and applicable rules and alleged maltreatment
5.17under sections 626.556 and 626.557, are confidential data and may be disclosed only as
5.18provided in section 626.556, subdivision 11, or 626.557, subdivision 12b.
5.19    (e) Data classified as private, confidential, nonpublic, or protected nonpublic under
5.20this subdivision become public data if submitted to a court or administrative law judge as
5.21part of a disciplinary proceeding in which there is a public hearing concerning a license
5.22which has been suspended, immediately suspended, revoked, or denied.
5.23    (f) Data generated in the course of licensing investigations that relate to an alleged
5.24violation of law are investigative data under subdivision 3.
5.25    (g) Data that are not public data collected, maintained, used, or disseminated under
5.26this subdivision that relate to or are derived from a report as defined in section 626.556,
5.27subdivision 2 , or 626.5572, subdivision 18, are subject to the destruction provisions of
5.28sections 626.556, subdivision 11c, and 626.557, subdivision 12b.
5.29    (h) Upon request, not public data collected, maintained, used, or disseminated under
5.30this subdivision that relate to or are derived from a report of substantiated maltreatment as
5.31defined in section 626.556 or 626.557 may be exchanged with the Department of Health
5.32for purposes of completing background studies pursuant to section 144.057 and with
5.33the Department of Corrections for purposes of completing background studies pursuant
5.34to section 241.021.
5.35    (i) Data on individuals collected according to licensing activities under chapters
5.36245A and 245C, data on individuals collected by the commissioner of human services
6.1according to investigations under chapters 245A, 245B, and 245C, and sections 626.556
6.2and 626.557 may be shared with the Department of Human Rights, the Department
6.3of Health, the Department of Corrections, the ombudsman for mental health and
6.4developmental disabilities, and the individual's professional regulatory board when there
6.5is reason to believe that laws or standards under the jurisdiction of those agencies may
6.6have been violated or the information may otherwise be relevant to the board's regulatory
6.7jurisdiction. Background study data on an individual who is the subject of a background
6.8study under chapter 245C for a licensed service for which the commissioner of human
6.9services is the license holder may be shared with the commissioner and the commissioner's
6.10delegate by the licensing division. Unless otherwise specified in this chapter, the identity
6.11of a reporter of alleged maltreatment or licensing violations may not be disclosed.
6.12    (j) In addition to the notice of determinations required under section 626.556,
6.13subdivision 10f , if the commissioner or the local social services agency has determined
6.14that an individual is a substantiated perpetrator of maltreatment of a child based on sexual
6.15abuse, as defined in section 626.556, subdivision 2, and the commissioner or local social
6.16services agency knows that the individual is a person responsible for a child's care in
6.17another facility, the commissioner or local social services agency shall notify the head
6.18of that facility of this determination. The notification must include an explanation of the
6.19individual's available appeal rights and the status of any appeal. If a notice is given under
6.20this paragraph, the government entity making the notification shall provide a copy of the
6.21notice to the individual who is the subject of the notice.
6.22    (k) All not public data collected, maintained, used, or disseminated under this
6.23subdivision and subdivision 3 may be exchanged between the Department of Human
6.24Services, Licensing Division, and the Department of Corrections for purposes of
6.25regulating services for which the Department of Human Services and the Department
6.26of Corrections have regulatory authority.


6.29    Section 1. Minnesota Statutes 2012, section 119B.125, subdivision 1b, is amended to
6.30read:
6.31    Subd. 1b. Training required. (a) Effective November 1, 2011, prior to initial
6.32authorization as required in subdivision 1, a legal nonlicensed family child care provider
6.33must complete first aid and CPR training and provide the verification of first aid and CPR
6.34training to the county. The training documentation must have valid effective dates as of
6.35the date the registration request is submitted to the county and. The training must have
7.1been provided by an individual approved to provide first aid and CPR instruction and have
7.2included CPR techniques for infants and children.
7.3(b) Legal nonlicensed family child care providers with an authorization effective
7.4before November 1, 2011, must be notified of the requirements before October 1, 2011, or
7.5at authorization, and must meet the requirements upon renewal of an authorization that
7.6occurs on or after January 1, 2012.
7.7(c) Upon each reauthorization after the authorization period when the initial first aid
7.8and CPR training requirements are met, a legal nonlicensed family child care provider
7.9must provide verification of at least eight hours of additional training listed in the
7.10Minnesota Center for Professional Development Registry.
7.11(d) This subdivision only applies to legal nonlicensed family child care providers.

7.12    Sec. 2. Minnesota Statutes 2012, section 245A.02, subdivision 5a, is amended to read:
7.13    Subd. 5a. Controlling individual. "Controlling individual" means a public body,
7.14governmental agency, business entity, officer, owner, or managerial official whose
7.15responsibilities include the direction of the management or policies of a program. For
7.16purposes of this subdivision, owner means an individual who has direct or indirect
7.17ownership interest in a corporation, partnership, or other business association issued a
7.18license under this chapter. For purposes of this subdivision, managerial official means
7.19those individuals who have the decision-making authority related to the operation of
7.20the program, and the responsibility for the ongoing management of or direction of the
7.21policies, services, or employees of the program. A site director who has no ownership
7.22interest in the program is not considered to be a managerial official for purposes of this
7.23definition. Controlling individual does not include:
7.24    (1) a bank, savings bank, trust company, savings association, credit union, industrial
7.25loan and thrift company, investment banking firm, or insurance company unless the entity
7.26operates a program directly or through a subsidiary;
7.27    (2) an individual who is a state or federal official, or state or federal employee, or a
7.28member or employee of the governing body of a political subdivision of the state or
7.29federal government that operates one or more programs, unless the individual is also an
7.30officer, owner, or managerial official of the program, receives remuneration from the
7.31program, or owns any of the beneficial interests not excluded in this subdivision;
7.32    (3) an individual who owns less than five percent of the outstanding common
7.33shares of a corporation:
7.34    (i) whose securities are exempt under section 80A.45, clause (6); or
7.35    (ii) whose transactions are exempt under section 80A.46, clause (2); or
8.1    (4) an individual who is a member of an organization exempt from taxation under
8.2section 290.05, unless the individual is also an officer, owner, or managerial official of
8.3the program or owns any of the beneficial interests not excluded in this subdivision. This
8.4clause does not exclude from the definition of controlling individual an organization that
8.5is exempt from taxation.

8.6    Sec. 3. Minnesota Statutes 2012, section 245A.04, subdivision 1, is amended to read:
8.7    Subdivision 1. Application for licensure. (a) An individual, corporation,
8.8partnership, voluntary association, other organization or controlling individual that is
8.9subject to licensure under section 245A.03 must apply for a license. The application
8.10must be made on the forms and in the manner prescribed by the commissioner. The
8.11commissioner shall provide the applicant with instruction in completing the application
8.12and provide information about the rules and requirements of other state agencies that affect
8.13the applicant. An applicant seeking licensure in Minnesota with headquarters outside of
8.14Minnesota must have a program office located within the state.
8.15The commissioner shall act on the application within 90 working days after a
8.16complete application and any required reports have been received from other state
8.17agencies or departments, counties, municipalities, or other political subdivisions. The
8.18commissioner shall not consider an application to be complete until the commissioner
8.19receives all of the information required under section 245C.05.
8.20When the commissioner receives an application for initial licensure that is incomplete
8.21because the applicant failed to submit required documents or that is substantially
8.22deficient because the documents submitted do not meet licensing requirements, the
8.23commissioner shall provide the applicant written notice that the application is incomplete
8.24or substantially deficient. In the written notice to the applicant the commissioner shall
8.25identify documents that are missing or deficient and give the applicant 45 days to resubmit
8.26a second application that is substantially complete. An applicant's failure to submit a
8.27substantially complete application after receiving notice from the commissioner is a basis
8.28for license denial under section 245A.05.
8.29(b) An application for licensure must identify all controlling individuals and must
8.30specify an agent who is responsible for dealing with the commissioner of human services
8.31on all matters provided for in this chapter and on whom service of all notices and orders
8.32must be made. The agent must be authorized to accept service on behalf of all of the
8.33controlling individuals of the program. Service on the agent is service on all of the
8.34controlling individuals of the program. It is not a defense to any action arising under this
8.35chapter that service was not made on each controlling individual of the program. The
9.1designation of one or more controlling individuals as agents under this paragraph does not
9.2affect the legal responsibility of any other controlling individual under this chapter.
9.3(c) An applicant or license holder must have a policy that prohibits license holders,
9.4employees, subcontractors, and volunteers, when directly responsible for persons served
9.5by the program, from abusing prescription medication or being in any manner under
9.6the influence of a chemical that impairs the individual's ability to provide services or
9.7care. The license holder must train employees, subcontractors, and volunteers about the
9.8program's drug and alcohol policy.
9.9(d) An applicant and license holder must have a program grievance procedure that
9.10permits persons served by the program and their authorized representatives to bring a
9.11grievance to the highest level of authority in the program.
9.12(e) The applicant must be able to demonstrate competent knowledge of the
9.13applicable requirements of this chapter and chapter 245C, and the requirements of
9.14other licensing statutes and rules applicable to the program or services for which the
9.15applicant is seeking to be licensed. Effective January 1, 2013, the commissioner may
9.16require the applicant, except for child foster care, to demonstrate competence in the
9.17applicable licensing requirements by successfully completing a written examination. The
9.18commissioner may develop a prescribed written examination format.
9.19(f) When an applicant is an individual, the individual must provide:
9.20(1) the applicant's taxpayer identification numbers including the Social Security
9.21number, and federal employer identification number, if the applicant has employees;
9.22(2) the complete business name, if any, and if doing business under a different name,
9.23the doing business as (DBA) name, as registered with the secretary of state; and
9.24(3) a notarized signature of the applicant.
9.25(g) When an applicant is a nonindividual, the applicant must provide the:
9.26(1) applicant's taxpayer identification numbers including the Minnesota tax
9.27identification number, the and federal employer identification number;
9.28(2) complete business name, and if doing business under a different name, the doing
9.29business as (DBA) name, as registered with the secretary of state;
9.30(3) first, middle, and last name, and address for all individuals who will be
9.31controlling individuals, including all officers, owners, and managerial officials as defined
9.32in section 245A.02, subdivision 5a, and the date that the background study was initiated
9.33by the applicant for each controlling individual. The applicant must also provide the; and
9.34(4) first, middle, and last name, mailing address, and notarized signature of the agent
9.35authorized by the applicant to accept service on behalf of the controlling individuals.
10.1(h) At the time of application for licensure or renewal of a license, the applicant
10.2or license holder must acknowledge on the form provided by the commissioner if the
10.3applicant or license holder elects to receive any public funding reimbursement from the
10.4commissioner for services provided under the license that:
10.5(1) the applicant's or license holder's compliance with the provider enrollment
10.6agreement or registration requirements for receipt of public funding may be monitored by
10.7the commissioner as part of a licensing investigation or licensing inspection; and
10.8(2) noncompliance with the provider enrollment agreement or registration
10.9requirements for receipt of public funding that is identified through a licensing
10.10investigation or licensing inspection, or noncompliance with a licensing requirement that
10.11is a basis of enrollment for reimbursement for a service, may result in:
10.12(i) a correction order or a conditional license under section 245A.06, or sanctions
10.13under section 245A.07;
10.14(ii) nonpayment of claims submitted by the license holder for public program
10.15reimbursement;
10.16(iii) recovery of payments made for the service;
10.17(iv) disenrollment in the public payment program; or
10.18(v) other administrative, civil, or criminal penalties as provided by law.

10.19    Sec. 4. Minnesota Statutes 2012, section 245A.04, subdivision 5, is amended to read:
10.20    Subd. 5. Commissioner's right of access. (a) When the commissioner is exercising
10.21the powers conferred by this chapter and sections 245.69, 626.556, and 626.557, the
10.22commissioner must be given access to:
10.23(1) the physical plant and grounds where the program is provided,;
10.24(2) documents and records, including records maintained in electronic format,;
10.25(3) persons served by the program,; and
10.26(4) staff and personnel records of current and former staff whenever the program is in
10.27operation and the information is relevant to inspections or investigations conducted by the
10.28commissioner. Upon request, the license holder must provide the commissioner verification
10.29of documentation of staff work experience, training, or educational requirements.
10.30The commissioner must be given access without prior notice and as often as
10.31the commissioner considers necessary if the commissioner is investigating alleged
10.32maltreatment, conducting a licensing inspection, or investigating an alleged violation of
10.33applicable laws or rules. In conducting inspections, the commissioner may request and
10.34shall receive assistance from other state, county, and municipal governmental agencies and
10.35departments. The applicant or license holder shall allow the commissioner to photocopy,
11.1photograph, and make audio and video tape recordings during the inspection of the
11.2program at the commissioner's expense. The commissioner shall obtain a court order or
11.3the consent of the subject of the records or the parents or legal guardian of the subject
11.4before photocopying hospital medical records.
11.5(b) Persons served by the program have the right to refuse to consent to be
11.6interviewed, photographed, or audio or videotaped. Failure or refusal of an applicant
11.7or license holder to fully comply with this subdivision is reasonable cause for the
11.8commissioner to deny the application or immediately suspend or revoke the license.

11.9    Sec. 5. Minnesota Statutes 2012, section 245A.04, subdivision 11, is amended to read:
11.10    Subd. 11. Education program; permitted ages, additional requirement. (a)
11.11Except for foster care, the commissioner of human services may not grant a license to a
11.12residential facility for the placement of children before the commissioner has received
11.13documentation of approval of the on-site educational program from the commissioner of
11.14education according to section 125A.515.
11.15    (b) A program licensed by the commissioner under Minnesota Rules, chapter 2960,
11.16may serve persons who are over the age of 18 but under the age of 21 when the person is:
11.17(1) completing secondary education or a program leading to an equivalent credential;
11.18(2) enrolled in an institution which provides postsecondary or vocational education;
11.19(3) participating in a program or activity designed to promote, or remove barriers to,
11.20employment;
11.21(4) employed for at least 80 hours per month; or
11.22(5) incapable of doing any of the activities described in clauses (1) to (4) due to a
11.23medical condition, which incapability is supported by regularly updated information in the
11.24case plan of the person.
11.25(c) In addition to the requirements in paragraph (b), a residential program licensed
11.26by the commissioner of human services under Minnesota Rules, parts 2960.0010 to
11.272960.0710, may serve persons under the age of 21 provided the facility complies with the
11.28following requirements:
11.29(1) for each person age 18 and older served at the program, the program must assess
11.30and document the person's risk of victimizing other residents residing in the facility, and
11.31based on the assessment, the facility must develop and implement necessary measures
11.32to minimize any risk of harm to other residents, including making arrangements for
11.33appropriate sleeping arrangements; and
12.1(2) the program must assure that the services and living arrangements provided to all
12.2residents are suitable to the age and functioning of the residents, including separation of
12.3services, staff supervision, and other program operations as appropriate.
12.4(d) Nothing in this subdivision precludes the license holder from seeking other
12.5variances under subdivision 9.

12.6    Sec. 6. Minnesota Statutes 2012, section 245A.06, subdivision 1, is amended to read:
12.7    Subdivision 1. Contents of correction orders and conditional licenses. (a) If
12.8the commissioner finds that the applicant or license holder has failed to comply with an
12.9applicable law or rule and this failure does not imminently endanger the health, safety,
12.10or rights of the persons served by the program, the commissioner may issue a correction
12.11order and an order of conditional license to the applicant or license holder. When issuing a
12.12conditional license, the commissioner shall consider the nature, chronicity, or severity of
12.13the violation of law or rule and the effect of the violation on the health, safety, or rights of
12.14persons served by the program. The correction order or conditional license must state:
12.15(1) the conditions that constitute a violation of the law or rule;
12.16(2) the specific law or rule violated;
12.17(3) the time allowed to correct each violation; and
12.18(4) if a license is made conditional, the length and terms of the conditional license.
12.19(b) Nothing in this section prohibits the commissioner from proposing a sanction as
12.20specified in section 245A.07, prior to issuing a correction order or conditional license.
12.21(c) If a license holder reports that an individual with a disqualification that has not
12.22been set aside has moved out of the home where services are provided or reports that other
12.23arrangements have been made so a disqualified person does not have direct contact or
12.24access to persons receiving services, the commissioner may issue an order of conditional
12.25license that makes licensure contingent on the individual's continuous absence from the
12.26home during the hours of operation when:
12.27(1) the disqualified individual is a "family or household member" of the license
12.28holder, as defined in section 518B.01, subdivision 2; or
12.29(2) the disqualified individual has a record of having had direct contact or access to
12.30people receiving services.

12.31    Sec. 7. Minnesota Statutes 2012, section 245A.07, subdivision 2, is amended to read:
12.32    Subd. 2. Temporary immediate suspension. If the license holder's actions or
12.33failure to comply with applicable law or rule, or the actions of other individuals or
12.34conditions in the program pose an imminent risk of harm to the health, safety, or rights of
13.1persons served by the program, or if while the program continues to operate pending an
13.2appeal of an order of revocation the commissioner identifies one or more new violations
13.3of law or rule which may adversely affect the health or safety of persons served by the
13.4program, the commissioner shall act immediately to temporarily suspend the license.
13.5No state funds shall be made available or be expended by any agency or department of
13.6state, county, or municipal government for use by a license holder regulated under this
13.7chapter while a license is under immediate suspension. A notice stating the reasons for
13.8the immediate suspension and informing the license holder of the right to an expedited
13.9hearing under chapter 14 and specifically Minnesota Rules, parts 1400.8505 to 1400.8612,
13.10must be delivered by personal service to the address shown on the application or the last
13.11known address of the license holder. The license holder may appeal an order immediately
13.12suspending a license. The appeal of an order immediately suspending a license must
13.13be made in writing by certified mail or personal service. If mailed, the appeal must be
13.14postmarked and sent to the commissioner within five calendar days after the license holder
13.15receives notice that the license has been immediately suspended. If a request is made by
13.16personal service, it must be received by the commissioner within five calendar days after
13.17the license holder received the order. A license holder and any controlling individual
13.18shall discontinue operation of the program upon receipt of the commissioner's order to
13.19immediately suspend the license.

13.20    Sec. 8. Minnesota Statutes 2013 Supplement, section 245A.07, subdivision 2a, is
13.21amended to read:
13.22    Subd. 2a. Immediate suspension expedited hearing. (a) Within five working days
13.23of receipt of the license holder's timely appeal, the commissioner shall request assignment
13.24of an administrative law judge. The request must include a proposed date, time, and place
13.25of a hearing. A hearing must be conducted by an administrative law judge within 30
13.26calendar days of the request for assignment, unless an extension is requested by either
13.27party and granted by the administrative law judge for good cause. The commissioner shall
13.28issue a notice of hearing by certified mail or personal service at least ten working days
13.29before the hearing. The scope of the hearing shall be limited solely to the issue of whether
13.30the temporary immediate suspension should remain in effect pending the commissioner's
13.31final order under section 245A.08, regarding a licensing sanction issued under subdivision
13.323 following the immediate suspension. The burden of proof in expedited hearings under
13.33this subdivision shall be limited to the commissioner's demonstration that reasonable
13.34cause exists to believe that the license holder's actions or failure to comply with applicable
13.35law or rule poses, or if the actions of other individuals or conditions in the program
14.1poses an imminent risk of harm to the health, safety, or rights of persons served by the
14.2program. "Reasonable cause" means there exist specific articulable facts or circumstances
14.3which provide the commissioner with a reasonable suspicion that there is an imminent
14.4risk of harm to the health, safety, or rights of persons served by the program. When the
14.5commissioner has determined there is reasonable cause to order the temporary immediate
14.6suspension of a license based on a violation of safe sleep requirements, as defined in
14.7section 245A.1435, the commissioner is not required to demonstrate that an infant died or
14.8was injured as a result of the safe sleep violations.
14.9    (b) The administrative law judge shall issue findings of fact, conclusions, and a
14.10recommendation within ten working days from the date of hearing. The parties shall
14.11have ten calendar days to submit exceptions to the administrative law judge's report.
14.12The record shall close at the end of the ten-day period for submission of exceptions.
14.13The commissioner's final order shall be issued within ten working days from the close
14.14of the record. When an appeal of a temporary immediate suspension is withdrawn or
14.15dismissed, the commissioner shall issue a final order affirming the temporary immediate
14.16suspension within ten calendar days of the commissioner's receipt of the withdrawal or
14.17dismissal. Within 90 calendar days after a final order affirming an immediate suspension,
14.18the commissioner shall make a determination regarding whether a final licensing sanction
14.19shall be issued under subdivision 3. The license holder shall continue to be prohibited
14.20from operation of the program during this 90-day period.
14.21    (c) When the final order under paragraph (b) affirms an immediate suspension, and a
14.22final licensing sanction is issued under subdivision 3 and the license holder appeals that
14.23sanction, the license holder continues to be prohibited from operation of the program
14.24pending a final commissioner's order under section 245A.08, subdivision 5, regarding the
14.25final licensing sanction.

14.26    Sec. 9. Minnesota Statutes 2013 Supplement, section 245A.07, subdivision 3, is
14.27amended to read:
14.28    Subd. 3. License suspension, revocation, or fine. (a) The commissioner may
14.29suspend or revoke a license, or impose a fine if:
14.30    (1) a license holder fails to comply fully with applicable laws or rules;
14.31    (2) a license holder, a controlling individual, or an individual living in the household
14.32where the licensed services are provided or is otherwise subject to a background study has
14.33a disqualification which has not been set aside under section 245C.22;
14.34    (3) a license holder knowingly withholds relevant information from or gives false
14.35or misleading information to the commissioner in connection with an application for
15.1a license, in connection with the background study status of an individual, during an
15.2investigation, or regarding compliance with applicable laws or rules; or
15.3    (4) after July 1, 2012, and upon request by the commissioner, a license holder fails
15.4to submit the information required of an applicant under section 245A.04, subdivision 1,
15.5paragraph (f) or (g).
15.6    A license holder who has had a license suspended, revoked, or has been ordered
15.7to pay a fine must be given notice of the action by certified mail or personal service. If
15.8mailed, the notice must be mailed to the address shown on the application or the last
15.9known address of the license holder. The notice must state the reasons the license was
15.10suspended, revoked, or a fine was ordered.
15.11    (b) If the license was suspended or revoked, the notice must inform the license
15.12holder of the right to a contested case hearing under chapter 14 and specifically Minnesota
15.13Rules, parts 1400.8505 to 1400.8612. The license holder may appeal an order suspending
15.14or revoking a license. The appeal of an order suspending or revoking a license must
15.15be made in writing by certified mail or personal service. If mailed, the appeal must be
15.16postmarked and sent to the commissioner within ten calendar days after the license holder
15.17receives notice that the license has been suspended or revoked. If a request is made by
15.18personal service, it must be received by the commissioner within ten calendar days after
15.19the license holder received the order. Except as provided in subdivision 2a, paragraph
15.20(c), if a license holder submits a timely appeal of an order suspending or revoking a
15.21license, the license holder may continue to operate the program as provided in section
15.22245A.04, subdivision 7 , paragraphs (g) and (h), until the commissioner issues a final order
15.23on the suspension or revocation.
15.24    (c)(1) If the license holder was ordered to pay a fine, the notice must inform the
15.25license holder of the responsibility for payment of fines and the right to a contested case
15.26hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal
15.27of an order to pay a fine must be made in writing by certified mail or personal service. If
15.28mailed, the appeal must be postmarked and sent to the commissioner within ten calendar
15.29days after the license holder receives notice that the fine has been ordered. If a request is
15.30made by personal service, it must be received by the commissioner within ten calendar
15.31days after the license holder received the order.
15.32    (2) The license holder shall pay the fines assessed on or before the payment date
15.33specified. If the license holder fails to fully comply with the order, the commissioner
15.34may issue a second fine or suspend the license until the license holder complies. If the
15.35license holder receives state funds, the state, county, or municipal agencies or departments
15.36responsible for administering the funds shall withhold payments and recover any payments
16.1made while the license is suspended for failure to pay a fine. A timely appeal shall stay
16.2payment of the fine until the commissioner issues a final order.
16.3    (3) A license holder shall promptly notify the commissioner of human services,
16.4in writing, when a violation specified in the order to forfeit a fine is corrected. If upon
16.5reinspection the commissioner determines that a violation has not been corrected as
16.6indicated by the order to forfeit a fine, the commissioner may issue a second fine. The
16.7commissioner shall notify the license holder by certified mail or personal service that a
16.8second fine has been assessed. The license holder may appeal the second fine as provided
16.9under this subdivision.
16.10    (4) Fines shall be assessed as follows: the license holder shall forfeit $1,000 for
16.11each determination of maltreatment of a child under section 626.556 or the maltreatment
16.12of a vulnerable adult under section 626.557 for which the license holder is determined
16.13responsible for the maltreatment under section 626.556, subdivision 10e, paragraph (i),
16.14or 626.557, subdivision 9c, paragraph (c); the license holder shall forfeit $200 for each
16.15occurrence of a violation of law or rule governing matters of health, safety, or supervision,
16.16including but not limited to the provision of adequate staff-to-child or adult ratios, and
16.17failure to comply with background study requirements under chapter 245C; and the license
16.18holder shall forfeit $100 for each occurrence of a violation of law or rule other than those
16.19subject to a $1,000 or $200 fine above. For purposes of this section, "occurrence" means
16.20each violation identified in the commissioner's fine order. Fines assessed against a license
16.21holder that holds a license to provide home and community-based services, as identified
16.22in section 245D.03, subdivision 1, and a community residential setting or day services
16.23facility license under chapter 245D where the services are provided, may be assessed
16.24against both licenses for the same occurrence, but the combined amount of the fines shall
16.25not exceed the amount specified in this clause for that occurrence.
16.26    (5) When a fine has been assessed, the license holder may not avoid payment by
16.27closing, selling, or otherwise transferring the licensed program to a third party. In such an
16.28event, the license holder will be personally liable for payment. In the case of a corporation,
16.29each controlling individual is personally and jointly liable for payment.
16.30    (d) Except for background study violations involving the failure to comply with an
16.31order to immediately remove an individual or an order to provide continuous, direct
16.32supervision, the commissioner shall not issue a fine under paragraph (c) relating to a
16.33background study violation to a license holder who self-corrects a background study
16.34violation before the commissioner discovers the violation. A license holder who has
16.35previously exercised the provisions of this paragraph to avoid a fine for a background
16.36study violation may not avoid a fine for a subsequent background study violation unless at
17.1least 365 days have passed since the license holder self-corrected the earlier background
17.2study violation.

17.3    Sec. 10. Minnesota Statutes 2012, section 245A.07, is amended by adding a
17.4subdivision to read:
17.5    Subd. 7. Time frame for conducting hearing. Within 15 working days of receipt
17.6of the license holder's timely appeal of a sanction under this section other than a temporary
17.7immediate suspension, the commissioner shall request assignment of an administrative
17.8law judge. The commissioner's request must include a proposed date, time, and place of a
17.9hearing. A hearing must be conducted by an administrative law judge within 90 calendar
17.10days of the request for assignment, unless an extension is requested by either party and
17.11granted by the administrative law judge for good cause or for purposes of discussing
17.12settlement. In no case shall one or more extensions be granted for a total of more than 90
17.13calendar days unless there is a criminal or juvenile court action pending against the license
17.14holder or another individual subject to a background study.

17.15    Sec. 11. Minnesota Statutes 2013 Supplement, section 245A.08, subdivision 2a,
17.16is amended to read:
17.17    Subd. 2a. Consolidated contested case hearings. (a) When a denial of a license
17.18under section 245A.05 or a licensing sanction under section 245A.07, subdivision 3, is
17.19based on a disqualification for which reconsideration was timely requested and which was
17.20not set aside under section 245C.22, the scope of the contested case hearing shall include
17.21the disqualification and the licensing sanction or denial of a license, unless otherwise
17.22specified in this subdivision. When the licensing sanction or denial of a license is based on
17.23a determination of maltreatment under section 626.556 or 626.557, or a disqualification
17.24for serious or recurring maltreatment which was not set aside, the scope of the contested
17.25case hearing shall include the maltreatment determination, disqualification, and the
17.26licensing sanction or denial of a license, unless otherwise specified in this subdivision. In
17.27such cases, a fair hearing under section 256.045 shall not be conducted as provided for in
17.28sections 245C.27, 626.556, subdivision 10i, and 626.557, subdivision 9d.
17.29    (b) Except for family child care and child foster care, reconsideration of a
17.30maltreatment determination under sections 626.556, subdivision 10i, and 626.557,
17.31subdivision 9d, and reconsideration of a disqualification under section 245C.22, shall
17.32not be conducted when:
18.1    (1) a denial of a license under section 245A.05, or a licensing sanction under section
18.2245A.07 , is based on a determination that the license holder is responsible for maltreatment
18.3or the disqualification of a license holder is based on serious or recurring maltreatment;
18.4    (2) the denial of a license or licensing sanction is issued at the same time as the
18.5maltreatment determination or disqualification; and
18.6    (3) the license holder appeals the maltreatment determination or disqualification,
18.7and denial of a license or licensing sanction. In these cases, a fair hearing shall not be
18.8conducted under sections 245C.27, 626.556, subdivision 10i, and 626.557, subdivision
18.99d. The scope of the contested case hearing must include the maltreatment determination,
18.10disqualification, and denial of a license or licensing sanction.
18.11    Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment
18.12determination or disqualification, but does not appeal the denial of a license or a licensing
18.13sanction, reconsideration of the maltreatment determination shall be conducted under
18.14sections 626.556, subdivision 10i, and 626.557, subdivision 9d, and reconsideration of the
18.15disqualification shall be conducted under section 245C.22. In such cases, a fair hearing
18.16shall also be conducted as provided under sections 245C.27, 626.556, subdivision 10i, and
18.17626.557, subdivision 9d .
18.18    (c) In consolidated contested case hearings regarding sanctions issued in family
18.19child care, child foster care, family adult day services, adult foster care, and community
18.20residential settings, the county attorney shall defend the commissioner's orders in
18.21accordance with section 245A.16, subdivision 4.
18.22    (d) The commissioner's final order under subdivision 5 is the final agency action
18.23on the issue of maltreatment and disqualification, including for purposes of subsequent
18.24background studies under chapter 245C and is the only administrative appeal of the final
18.25agency determination, specifically, including a challenge to the accuracy and completeness
18.26of data under section 13.04.
18.27    (e) When consolidated hearings under this subdivision involve a licensing sanction
18.28based on a previous maltreatment determination for which the commissioner has issued
18.29a final order in an appeal of that determination under section 256.045, or the individual
18.30failed to exercise the right to appeal the previous maltreatment determination under
18.31section 626.556, subdivision 10i, or 626.557, subdivision 9d, the commissioner's order is
18.32conclusive on the issue of maltreatment. In such cases, the scope of the administrative
18.33law judge's review shall be limited to the disqualification and the licensing sanction or
18.34denial of a license. In the case of a denial of a license or a licensing sanction issued to
18.35a facility based on a maltreatment determination regarding an individual who is not the
19.1license holder or a household member, the scope of the administrative law judge's review
19.2includes the maltreatment determination.
19.3    (f) The hearings of all parties may be consolidated into a single contested case
19.4hearing upon consent of all parties and the administrative law judge, if:
19.5    (1) a maltreatment determination or disqualification, which was not set aside under
19.6section 245C.22, is the basis for a denial of a license under section 245A.05 or a licensing
19.7sanction under section 245A.07;
19.8    (2) the disqualified subject is an individual other than the license holder and upon
19.9whom a background study must be conducted under section 245C.03; and
19.10    (3) the individual has a hearing right under section 245C.27.
19.11    (g) When a denial of a license under section 245A.05 or a licensing sanction under
19.12section 245A.07 is based on a disqualification for which reconsideration was requested
19.13and was not set aside under section 245C.22, and the individual otherwise has no hearing
19.14right under section 245C.27, the scope of the administrative law judge's review shall
19.15include the denial or sanction and a determination whether the disqualification should
19.16be set aside, unless section 245C.24 prohibits the set-aside of the disqualification. In
19.17determining whether the disqualification should be set aside, the administrative law judge
19.18shall consider the factors under section 245C.22, subdivision 4, to determine whether the
19.19individual poses a risk of harm to any person receiving services from the license holder.
19.20    (h) Notwithstanding section 245C.30, subdivision 5, when a licensing sanction
19.21under section 245A.07 is based on the termination of a variance under section 245C.30,
19.22subdivision 4 , the scope of the administrative law judge's review shall include the sanction
19.23and a determination whether the disqualification should be set aside, unless section
19.24245C.24 prohibits the set-aside of the disqualification. In determining whether the
19.25disqualification should be set aside, the administrative law judge shall consider the factors
19.26under section 245C.22, subdivision 4, to determine whether the individual poses a risk of
19.27harm to any person receiving services from the license holder.

19.28    Sec. 12. Minnesota Statutes 2012, section 245A.08, subdivision 5a, is amended to read:
19.29    Subd. 5a. Granting subsequent license. (a) A license holder and each controlling
19.30individual of a license holder whose license has been revoked because of noncompliance
19.31with applicable law or rule must not be granted a license for five years following the
19.32revocation. Notwithstanding the five-year restriction, when a license is revoked because a
19.33person, other than the license holder, resides in the home where services are provided and
19.34that person has a disqualification that is not set aside and no variance has been granted,
19.35the former license holder may reapply for a license when:
20.1(1) the person with a disqualification, who is not a minor child, is no longer residing
20.2in the home and is prohibited from residing in or returning to the home; or
20.3(2) the person with the disqualification is a minor child, the restriction applies until
20.4the minor child becomes an adult and permanently moves away from the home or five
20.5years, whichever is less.
20.6(b) An applicant or controlling individual whose application was denied must not
20.7be granted a license for two years following a denial, unless the applicant's subsequent
20.8application contains new information which constitutes a substantial change in the
20.9conditions that caused the previous denial. The addition of a new co-applicant in a
20.10subsequent application does not constitute a substantial change. If an applicant or
20.11controlling individual whose application was denied is affiliated with a subsequent
20.12application, and two years have not passed since the denial, the subsequent application
20.13must be denied.

20.14    Sec. 13. Minnesota Statutes 2012, section 245A.146, subdivision 3, is amended to read:
20.15    Subd. 3. License holder documentation of cribs. (a) Annually, from the date
20.16printed on the license, all license holders shall check all their cribs' brand names and
20.17model numbers against the United States Consumer Product Safety Commission Web
20.18site listing of unsafe cribs.
20.19(b) The license holder shall maintain written documentation to be reviewed on site
20.20for each crib showing that the review required in paragraph (a) has been completed, and
20.21which of the following conditions applies:
20.22(1) the crib was not identified as unsafe on the United States Consumer Product
20.23Safety Commission Web site;
20.24(2) the crib was identified as unsafe on the United States Consumer Product Safety
20.25Commission Web site, but the license holder has taken the action directed by the United
20.26States Consumer Product Safety Commission to make the crib safe; or
20.27(3) the crib was identified as unsafe on the United States Consumer Product Safety
20.28Commission Web site, and the license holder has removed the crib so that it is no longer
20.29used by or accessible to children in care.
20.30(c) Documentation of the review completed under this subdivision shall be
20.31maintained by the license holder on site and made available to parents or guardians of
20.32children in care and the commissioner.
20.33(d) Notwithstanding Minnesota Rules, part 9502.0425, a family child care provider
20.34that complies with this section may use a mesh-sided or fabric-sided play yard, pack
21.1and play, or playpen or crib that has not been identified as unsafe on the United States
21.2Consumer Product Safety Commission Web site for the care or sleeping of infants.
21.3(e) On at least a monthly basis, the family child care license holder shall perform
21.4safety inspections of every mesh-sided or fabric-sided play yard, pack and play, or playpen
21.5used by or that is accessible to any child in care, and must document the following:
21.6(1) there are no tears, holes, or loose or unraveling threads in mesh or fabric sides of
21.7crib;
21.8(2) the weave of the mesh on the crib is no larger than 1/4 of an inch;
21.9(3) no mesh fabric is unsecure or unattached to top rail and floor plate of crib;
21.10(4) no tears or holes to top rail of crib;
21.11(5) the mattress floor board is not soft and does not exceed one-inch thick;
21.12(6) the mattress floor board has no rips or tears in covering;
21.13(7) the mattress floor board in use is a waterproof original mattress or replacement
21.14mattress provided by the manufacturer of the crib;
21.15(8) there are no protruding or loose rivets, metal nuts, or bolts on the crib;
21.16(9) there are no knobs or wing nuts on outside crib legs;
21.17(10) there are no missing, loose, or exposed staples; and
21.18(11) the latches on top and side rails used to collapse crib are secure, they lock
21.19properly, and are not loose.

21.20    Sec. 14. Minnesota Statutes 2012, section 245A.146, subdivision 4, is amended to read:
21.21    Subd. 4. Crib safety standards and inspection. (a) On at least a monthly basis,
21.22the license holder shall perform safety inspections of every crib or portable crib of rigid
21.23construction including full size and non-full size cribs used by or that is accessible to any
21.24child in care, and must document the following:
21.25(1) no corner posts extend more than 1/16 of an inch;
21.26(2) no spaces between side slats exceed 2.375 inches;
21.27(3) no mattress supports can be easily dislodged from any point of the crib;
21.28(4) no cutout designs are present on end panels;
21.29(5) no heights of the rail and end panel are less than 26 inches when measured from
21.30the top of the rail or panel in the highest position to the top of the mattress support in
21.31its lowest position;
21.32(6) no heights of the rail and end panel are less than nine inches when measured
21.33from the top of the rail or panel in its lowest position to the top of the mattress support in
21.34its highest position;
22.1(7) (2) no screws, bolts, or hardware are loose or not secured, and there is no use
22.2of woodscrews in components that are designed to be assembled and disassembled by
22.3the crib owner;
22.4(8) (3) no sharp edges, points, or rough surfaces are present;
22.5(9) (4) no wood surfaces are rough, splintered, split, or cracked; and
22.6(10) no tears in mesh of fabric sides in non-full-size cribs;
22.7(11) no mattress pads in non-full-size mesh or fabric cribs exceed one inch; and
22.8(12) (5) no unacceptable gaps between the mattress and any sides of the crib are
22.9present as follows:
22.10(i) when the noncompressed mattress is centered in the non-full-size crib, at any of
22.11the adjustable mattress support positions, the gap between the perimeter of the mattress
22.12and the perimeter of the crib cannot be greater than one-half inch at any point. When the
22.13mattress is placed against the perimeter of the crib, the resulting gap cannot be greater
22.14than one inch at any point; and
22.15(ii) when the noncompressed mattress is centered in the full-size crib, at any of
22.16the adjustable mattress support positions, the gap between the perimeter of the mattress
22.17and the perimeter of the crib cannot be greater than 11/16 inch at any point. When the
22.18mattress is placed against the perimeter of the crib, the resulting gap cannot be greater
22.19than 1-3/8 inch at any point.
22.20(b) Upon discovery of any unsafe condition identified by the license holder during
22.21the safety inspection required under paragraph (a) or subdivision 3, paragraph (e), the
22.22license holder shall immediately remove the crib from use and ensure that the crib is not
22.23accessible to children in care, and as soon as practicable, but not more than two business
22.24days after the inspection, remove the crib from the area where child care services are
22.25routinely provided for necessary repairs or to destroy the crib.
22.26(c) Documentation of the inspections and actions taken with unsafe cribs required in
22.27paragraphs (a) and (b), and subdivision 3, paragraph (e), shall be maintained on site by the
22.28license holder and made available to parents of children in care and the commissioner.

22.29    Sec. 15. Minnesota Statutes 2013 Supplement, section 245A.50, subdivision 4, is
22.30amended to read:
22.31    Subd. 4. Cardiopulmonary resuscitation. (a) When children are present in a
22.32family child care home governed by Minnesota Rules, parts 9502.0315 to 9502.0445, at
22.33least one staff person caregiver must be present in the home who has been trained in
22.34cardiopulmonary resuscitation (CPR), including CPR techniques for infants and children,
22.35 and in the treatment of obstructed airways that includes CPR techniques for infants and
23.1children. The CPR training must have been provided by an individual approved to provide
23.2CPR instruction, must be repeated at least once every two years, and must be documented
23.3in the staff person's records.
23.4    (b) A family child care provider is exempt from the CPR training requirement in
23.5this subdivision related to any substitute caregiver who provides less than 30 hours of
23.6care during any 12-month period.
23.7    (c) Persons providing CPR training must use CPR training that has been developed:
23.8    (1) by the American Heart Association or the American Red Cross and incorporates
23.9psychomotor skills to support the instruction; or
23.10    (2) using nationally recognized, evidence-based guidelines for CPR training and
23.11incorporates psychomotor skills to support the instruction.

23.12    Sec. 16. Minnesota Statutes 2012, section 245A.65, subdivision 1, is amended to read:
23.13    Subdivision 1. License holder requirements. All license holders serving vulnerable
23.14adults shall establish and enforce written policies and procedures related to suspected or
23.15alleged maltreatment, and shall orient clients and mandated reporters who are under
23.16the control of the license holder to these procedures, as defined in section 626.5572,
23.17subdivision 16 .
23.18    (a) License holders must establish policies and procedures allowing but not
23.19mandating the internal reporting of alleged or suspected maltreatment. License holders
23.20shall ensure that the policies and procedures on internal reporting:
23.21    (1) meet all the requirements identified for the optional internal reporting policies
23.22and procedures in section 626.557, subdivision 4a; and
23.23    (2) identify the primary and secondary person or position to whom internal reports
23.24may be made and the primary and secondary person or position responsible for forwarding
23.25internal reports to the common entry point as defined in section 626.5572, subdivision 5.
23.26The secondary person must be involved when there is reason to believe that the primary
23.27person was involved in the alleged or suspected maltreatment.
23.28    (b) The license holder shall:
23.29    (1) establish and maintain policies and procedures to ensure that an internal review
23.30is completed within 30 calendar days and that corrective action is taken as necessary to
23.31protect the health and safety of vulnerable adults when the facility has reason to know
23.32that an internal or external report of alleged or suspected maltreatment has been made.
23.33The review must include an evaluation of whether related policies and procedures were
23.34followed, whether the policies and procedures were adequate, whether there is a need for
23.35additional staff training, whether the reported event is similar to past events with the
24.1vulnerable adults or the services involved, and whether there is a need for corrective
24.2action by the license holder to protect the health and safety of vulnerable adults. Based on
24.3the results of this review, the license holder must develop, document, and implement a
24.4corrective action plan designed to correct current lapses and prevent future lapses in
24.5performance by individuals or the license holder, if any.
24.6    (2) identify the primary and secondary person or position who will ensure that, when
24.7required, internal reviews are completed. The secondary person shall be involved when
24.8there is reason to believe that the primary person was involved in the alleged or suspected
24.9maltreatment; and
24.10    (3) document and make internal reviews accessible to the commissioner immediately
24.11upon the commissioner's request. For the purposes of this section, the documentation
24.12provided to the commissioner by the license holder may consist of a completed checklist
24.13that verifies completion of each of the requirements of the review.
24.14    (c) The license holder shall provide an orientation to the internal and external
24.15reporting procedures to all persons receiving services. The orientation shall include the
24.16telephone number for the license holder's common entry point as defined in section
24.17626.5572, subdivision 5 . If applicable, the person's legal representative must be notified of
24.18the orientation. The program shall provide this orientation for each new person within 24
24.19hours of admission, or for persons who would benefit more from a later orientation, the
24.20orientation may take place within 72 hours.
24.21    (d) The license holder shall post a copy of the internal and external reporting policies
24.22and procedures, including the telephone number of the common entry point as defined
24.23in section 626.5572, subdivision 5, in a prominent location in the program and have it
24.24available upon request to mandated reporters, persons receiving services, and the person's
24.25legal representatives.

24.26    Sec. 17. Minnesota Statutes 2012, section 245A.66, subdivision 1, is amended to read:
24.27    Subdivision 1. Internal review. Except for family child care settings and foster care
24.28for children in the license holder's residence, license holders serving children shall:
24.29    (1) establish and maintain policies and procedures to ensure that an internal review
24.30is completed within 30 calendar days and that corrective action is taken if necessary to
24.31protect the health and safety of children in care when the facility has reason to know that
24.32an internal or external report of alleged or suspected maltreatment has been made. The
24.33review must include an evaluation of whether:
24.34    (i) related policies and procedures were followed;
24.35    (ii) the policies and procedures were adequate;
25.1    (iii) there is a need for additional staff training;
25.2    (iv) the reported event is similar to past events with the children or the services
25.3involved; and
25.4    (v) there is a need for corrective action by the license holder to protect the health and
25.5safety of children in care.
25.6    Based on the results of this review, the license holder must develop, document, and
25.7implement a corrective action plan designed to correct current lapses and prevent future
25.8lapses in performance by individuals or the license holder, if any;
25.9    (2) identify the primary and secondary person or position who will ensure that, when
25.10required, internal reviews are completed. The secondary person shall be involved when
25.11there is reason to believe that the primary person was involved in the alleged or suspected
25.12maltreatment; and
25.13    (3) document that the and make internal review has been completed and provide
25.14documentation showing the review was completed reviews accessible to the commissioner
25.15immediately upon the commissioner's request. For the purposes of this section, the
25.16documentation provided to the commissioner by the license holder may consist of a
25.17completed checklist that verifies completion of each of the requirements of the review.


25.20    Section 1. Minnesota Statutes 2012, section 168.012, subdivision 1, is amended to read:
25.21    Subdivision 1. Vehicles exempt from tax, fees, or plate display. (a) The following
25.22vehicles are exempt from the provisions of this chapter requiring payment of tax and
25.23registration fees, except as provided in subdivision 1c:
25.24    (1) vehicles owned and used solely in the transaction of official business by the
25.25federal government, the state, or any political subdivision;
25.26    (2) vehicles owned and used exclusively by educational institutions and used solely
25.27in the transportation of pupils to and from those institutions;
25.28    (3) vehicles used solely in driver education programs at nonpublic high schools;
25.29    (4) vehicles owned by nonprofit charities and used exclusively to transport disabled
25.30persons for charitable, religious, or educational purposes;
25.31    (5) vehicles owned by nonprofit charities and used exclusively for disaster response
25.32and related activities;
25.33    (6) vehicles owned by ambulance services licensed under section 144E.10 that
25.34are equipped and specifically intended for emergency response or providing ambulance
25.35services; and
26.1    (7) vehicles owned by a commercial driving school licensed under section 171.34,
26.2or an employee of a commercial driving school licensed under section 171.34, and the
26.3vehicle is used exclusively for driver education and training.
26.4    (b) Provided the general appearance of the vehicle is unmistakable, the following
26.5vehicles are not required to register or display number plates:
26.6(1) vehicles owned by the federal government;
26.7(2) fire apparatuses, including fire-suppression support vehicles, owned or leased by
26.8the state or a political subdivision;
26.9(3) police patrols owned or leased by the state or a political subdivision; and
26.10(4) ambulances owned or leased by the state or a political subdivision.
26.11    (c) Unmarked vehicles used in general police work, liquor investigations, or arson
26.12investigations, and passenger automobiles, pickup trucks, and buses owned or operated by
26.13the Department of Corrections or by conservation officers of the Division of Enforcement
26.14and Field Service of the Department of Natural Resources, must be registered and must
26.15display appropriate license number plates, furnished by the registrar at cost. Original and
26.16renewal applications for these license plates authorized for use in general police work and
26.17for use by the Department of Corrections or by conservation officers must be accompanied
26.18by a certification signed by the appropriate chief of police if issued to a police vehicle,
26.19the appropriate sheriff if issued to a sheriff's vehicle, the commissioner of corrections if
26.20issued to a Department of Corrections vehicle, or the appropriate officer in charge if
26.21issued to a vehicle of any other law enforcement agency. The certification must be on a
26.22form prescribed by the commissioner and state that the vehicle will be used exclusively
26.23for a purpose authorized by this section.
26.24    (d) Unmarked vehicles used by the Departments of Revenue and Labor and Industry,
26.25fraud unit, in conducting seizures or criminal investigations must be registered and must
26.26display passenger vehicle classification license number plates, furnished at cost by the
26.27registrar. Original and renewal applications for these passenger vehicle license plates
26.28must be accompanied by a certification signed by the commissioner of revenue or the
26.29commissioner of labor and industry. The certification must be on a form prescribed by
26.30the commissioner and state that the vehicles will be used exclusively for the purposes
26.31authorized by this section.
26.32    (e) Unmarked vehicles used by the Division of Disease Prevention and Control of the
26.33Department of Health must be registered and must display passenger vehicle classification
26.34license number plates. These plates must be furnished at cost by the registrar. Original
26.35and renewal applications for these passenger vehicle license plates must be accompanied
26.36by a certification signed by the commissioner of health. The certification must be on a
27.1form prescribed by the commissioner and state that the vehicles will be used exclusively
27.2for the official duties of the Division of Disease Prevention and Control.
27.3    (f) Unmarked vehicles used by staff of the Gambling Control Board in gambling
27.4investigations and reviews must be registered and must display passenger vehicle
27.5classification license number plates. These plates must be furnished at cost by the
27.6registrar. Original and renewal applications for these passenger vehicle license plates must
27.7be accompanied by a certification signed by the board chair. The certification must be on a
27.8form prescribed by the commissioner and state that the vehicles will be used exclusively
27.9for the official duties of the Gambling Control Board.
27.10    (g) Unmarked vehicles used in general investigation, surveillance, supervision, and
27.11monitoring by the staff of the Department of Human Services Services' Office of Special
27.12Investigations and the executive director of Investigations' staff; the Minnesota sex
27.13offender program program's executive director and the executive director's staff; and the
27.14Office of Inspector General's staff, including, but not limited to, county fraud prevention
27.15investigators, must be registered and must display passenger vehicle classification license
27.16number plates, furnished by the registrar at cost. Original and renewal applications for
27.17passenger vehicle license plates must be accompanied by a certification signed by the
27.18commissioner of human services. The certification must be on a form prescribed by the
27.19commissioner and state that the vehicles must be used exclusively for the official duties of
27.20the Office of Special Investigations and Investigations' staff; the executive director of the
27.21 Minnesota sex offender program program's executive director and the executive director's
27.22staff; and the Office of the Inspector General's staff, including, but not limited to, contract
27.23and county fraud prevention investigators.
27.24(h) Each state hospital and institution for persons who are mentally ill and
27.25developmentally disabled may have one vehicle without the required identification on
27.26the sides of the vehicle. The vehicle must be registered and must display passenger
27.27vehicle classification license number plates. These plates must be furnished at cost by the
27.28registrar. Original and renewal applications for these passenger vehicle license plates must
27.29be accompanied by a certification signed by the hospital administrator. The certification
27.30must be on a form prescribed by the commissioner and state that the vehicles will be used
27.31exclusively for the official duties of the state hospital or institution.
27.32    (i) Each county social service agency may have vehicles used for child and
27.33vulnerable adult protective services without the required identification on the sides of the
27.34vehicle. The vehicles must be registered and must display passenger vehicle classification
27.35license number plates. These plates must be furnished at cost by the registrar. Original
27.36and renewal applications for these passenger vehicle license plates must be accompanied
28.1by a certification signed by the agency administrator. The certification must be on a form
28.2prescribed by the commissioner and state that the vehicles will be used exclusively for the
28.3official duties of the social service agency.
28.4    (j) All other motor vehicles must be registered and display tax-exempt number
28.5plates, furnished by the registrar at cost, except as provided in subdivision 1c. All
28.6vehicles required to display tax-exempt number plates must have the name of the state
28.7department or political subdivision, nonpublic high school operating a driver education
28.8program, licensed commercial driving school, or other qualifying organization or entity,
28.9plainly displayed on both sides of the vehicle. This identification must be in a color
28.10giving contrast with that of the part of the vehicle on which it is placed and must endure
28.11throughout the term of the registration. The identification must not be on a removable
28.12plate or placard and must be kept clean and visible at all times; except that a removable
28.13plate or placard may be utilized on vehicles leased or loaned to a political subdivision or
28.14to a nonpublic high school driver education program.
28.15EFFECTIVE DATE.This section is effective the day following final enactment.

28.16    Sec. 2. Minnesota Statutes 2012, section 256.01, subdivision 18d, is amended to read:
28.17    Subd. 18d. Data sharing with the Department of Human Services; multiple
28.18identification cards. (a) The commissioner of public safety shall, on a monthly basis,
28.19provide the commissioner of human services with the first, middle, and last name, and
28.20 the address, date of birth, and driver's license or state identification card number, and
28.21all photographs or electronically produced images of all applicants and holders whose
28.22drivers' licenses and state identification cards have been canceled under section 171.14,
28.23paragraph (a), clause (2) or (3), by the commissioner of public safety. After the initial data
28.24report has been provided by the commissioner of public safety to the commissioner of
28.25human services under this paragraph, subsequent reports shall only include cancellations
28.26that occurred after the end date of the cancellations represented in the previous data report.
28.27(b) The commissioner of human services shall compare the information provided
28.28under paragraph (a) with the commissioner's data regarding recipients of all public
28.29assistance programs managed by the Department of Human Services to determine whether
28.30any individual with multiple identification cards issued by the Department of Public
28.31Safety has illegally or improperly enrolled in any public assistance program managed by
28.32the Department of Human Services.
28.33(c) If the commissioner of human services determines that an applicant or recipient
28.34has illegally or improperly enrolled in any public assistance program, the commissioner
29.1shall provide all due process protections to the individual before terminating the individual
29.2from the program according to applicable statute and notifying the county attorney.
29.3EFFECTIVE DATE.This section is effective the day following final enactment.

29.4    Sec. 3. Minnesota Statutes 2013 Supplement, section 268.19, subdivision 1, is
29.5amended to read:
29.6    Subdivision 1. Use of data. (a) Except as provided by this section, data gathered
29.7from any person under the administration of the Minnesota Unemployment Insurance Law
29.8are private data on individuals or nonpublic data not on individuals as defined in section
29.913.02 , subdivisions 9 and 12, and may not be disclosed except according to a district court
29.10order or section 13.05. A subpoena is not considered a district court order. These data
29.11may be disseminated to and used by the following agencies without the consent of the
29.12subject of the data:
29.13    (1) state and federal agencies specifically authorized access to the data by state
29.14or federal law;
29.15    (2) any agency of any other state or any federal agency charged with the
29.16administration of an unemployment insurance program;
29.17    (3) any agency responsible for the maintenance of a system of public employment
29.18offices for the purpose of assisting individuals in obtaining employment;
29.19    (4) the public authority responsible for child support in Minnesota or any other
29.20state in accordance with section 256.978;
29.21    (5) human rights agencies within Minnesota that have enforcement powers;
29.22    (6) the Department of Revenue to the extent necessary for its duties under Minnesota
29.23laws;
29.24    (7) public and private agencies responsible for administering publicly financed
29.25assistance programs for the purpose of monitoring the eligibility of the program's recipients;
29.26    (8) the Department of Labor and Industry and the Commerce Fraud Bureau in the
29.27Department of Commerce for uses consistent with the administration of their duties under
29.28Minnesota law;
29.29    (9) the Department of Human Services and the Office of Inspector General and its
29.30agents within the Department of Human Services, including county fraud investigators,
29.31for investigations related to recipient or provider fraud and employees of providers when
29.32the provider is suspected of committing public assistance fraud;
29.33    (9) (10) local and state welfare agencies for monitoring the eligibility of the data
29.34subject for assistance programs, or for any employment or training program administered
29.35by those agencies, whether alone, in combination with another welfare agency, or in
30.1conjunction with the department or to monitor and evaluate the statewide Minnesota
30.2family investment program by providing data on recipients and former recipients of food
30.3stamps or food support, cash assistance under chapter 256, 256D, 256J, or 256K, child care
30.4assistance under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;
30.5    (10) (11) local and state welfare agencies for the purpose of identifying employment,
30.6wages, and other information to assist in the collection of an overpayment debt in an
30.7assistance program;
30.8    (11) (12) local, state, and federal law enforcement agencies for the purpose of
30.9ascertaining the last known address and employment location of an individual who is the
30.10subject of a criminal investigation;
30.11    (12) (13) the United States Immigration and Customs Enforcement has access to
30.12data on specific individuals and specific employers provided the specific individual or
30.13specific employer is the subject of an investigation by that agency;
30.14    (13) (14) the Department of Health for the purposes of epidemiologic investigations;
30.15    (14) (15) the Department of Corrections for the purpose of case planning for
30.16preprobation and postprobation employment tracking of offenders sentenced to probation
30.17and preconfinement and postconfinement employment tracking of committed offenders;
30.18    (15) (16) the state auditor to the extent necessary to conduct audits of job opportunity
30.19building zones as required under section 469.3201; and
30.20    (16) (17) the Office of Higher Education for purposes of supporting program
30.21improvement, system evaluation, and research initiatives including the Statewide
30.22Longitudinal Education Data System.
30.23    (b) Data on individuals and employers that are collected, maintained, or used by
30.24the department in an investigation under section 268.182 are confidential as to data
30.25on individuals and protected nonpublic data not on individuals as defined in section
30.2613.02 , subdivisions 3 and 13, and must not be disclosed except under statute or district
30.27court order or to a party named in a criminal proceeding, administrative or judicial, for
30.28preparation of a defense.
30.29    (c) Data gathered by the department in the administration of the Minnesota
30.30unemployment insurance program must not be made the subject or the basis for any
30.31suit in any civil proceedings, administrative or judicial, unless the action is initiated by
30.32the department.
30.33EFFECTIVE DATE.This section is effective the day following final enactment.

31.1    Sec. 4. Minnesota Statutes 2012, section 471.346, is amended to read:
31.2471.346 PUBLICLY OWNED AND LEASED VEHICLES IDENTIFIED.
31.3All motor vehicles owned or leased by a statutory or home rule charter city, county,
31.4town, school district, metropolitan or regional agency, or other political subdivision, except
31.5for unmarked vehicles used in general police and fire work and, arson investigations,
31.6 and Department of Human Services investigations including county fraud prevention
31.7investigations, shall have the name of the political subdivision plainly displayed on both
31.8sides of the vehicle in letters not less than 2-1/2 inches high and one-half inch wide. The
31.9identification must be in a color that contrasts with the color of the part of the vehicle on
31.10which it is placed and must remain on and be clean and visible throughout the period of
31.11which the vehicle is owned or leased by the political subdivision. The identification must
31.12not be on a removable plate or placard except on leased vehicles but the plate or placard
31.13must not be removed from a leased vehicle at any time during the term of the lease.
31.14EFFECTIVE DATE.This section is effective the day following final enactment.


31.17    Section 1. Minnesota Statutes 2012, section 254B.05, subdivision 5, is amended to read:
31.18    Subd. 5. Rate requirements. (a) The commissioner shall establish rates for
31.19chemical dependency services and service enhancements funded under this chapter.
31.20(b) Eligible chemical dependency treatment services include:
31.21(1) outpatient treatment services that are licensed according to Minnesota Rules,
31.22parts 9530.6405 to 9530.6480, or applicable tribal license;
31.23(2) medication-assisted therapy services that are licensed according to Minnesota
31.24Rules, parts 9530.6405 to 9530.6480 and 9530.6500, or applicable tribal license;
31.25(3) medication-assisted therapy plus enhanced treatment services that meet the
31.26requirements of clause (2) and provide nine hours of clinical services each week;
31.27(4) high, medium, and low intensity residential treatment services that are licensed
31.28according to Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6505, or applicable
31.29tribal license which provide, respectively, 30, 15, and five hours of clinical services each
31.30week;
31.31(5) hospital-based treatment services that are licensed according to Minnesota Rules,
31.32parts 9530.6405 to 9530.6480, or applicable tribal license and licensed as a hospital under
31.33sections 144.50 to 144.56;
32.1(6) adolescent treatment programs that are licensed as outpatient treatment programs
32.2according to Minnesota Rules, parts 9530.6405 to 9530.6485, or as residential treatment
32.3programs according to Minnesota Rules, chapter 2960 parts 2960.0010 to 2960.0220, and
32.42960.0430 to 2960.0490, or applicable tribal license; and
32.5(7) room and board facilities that meet the requirements of section 254B.05,
32.6subdivision 1a.
32.7(c) The commissioner shall establish higher rates for programs that meet the
32.8requirements of paragraph (b) and the following additional requirements:
32.9(1) programs that serve parents with their children if the program:
32.10(i) provides on-site child care during hours of treatment activity that meets the
32.11additional licensing requirement requirements in Minnesota Rules, part 9530.6490, and
32.12provides child care that meets the requirements of or section 245A.03, subdivision 2,
32.13during hours of treatment activity; or
32.14(ii) arranges for off-site child care during hours of treatment activity at a facility that
32.15is licensed under chapter 245A as:
32.16(A) a child care center under Minnesota Rules, chapter 9503; or
32.17(B) a family child care home under Minnesota Rules, chapter 9502;
32.18(2) programs serving special populations if the program meets the requirements in
32.19Minnesota Rules, part 9530.6605, subpart 13;
32.20(3) programs that offer medical services delivered by appropriately credentialed
32.21health care staff in an amount equal to two hours per client per week if the medical
32.22needs of the client and the nature and provision of any medical services provided are
32.23documented in the client file; and
32.24(4) programs that offer services to individuals with co-occurring mental health and
32.25chemical dependency problems if:
32.26(i) the program meets the co-occurring requirements in Minnesota Rules, part
32.279530.6495;
32.28(ii) 25 percent of the counseling staff are licensed mental health professionals, as
32.29defined in section 245.462, subdivision 18, clauses (1) to (6), or are students or licensing
32.30candidates under the supervision of a licensed alcohol and drug counselor supervisor and
32.31licensed mental health professional, except that no more than 50 percent of the mental
32.32health staff may be students or licensing candidates with time documented to be directly
32.33related to provisions of co-occurring services;
32.34(iii) clients scoring positive on a standardized mental health screen receive a mental
32.35health diagnostic assessment within ten days of admission;
33.1(iv) the program has standards for multidisciplinary case review that include a
33.2monthly review for each client that, at a minimum, includes a licensed mental health
33.3professional and licensed alcohol and drug counselor, and their involvement in the review
33.4is documented;
33.5(v) family education is offered that addresses mental health and substance abuse
33.6disorders and the interaction between the two; and
33.7(vi) co-occurring counseling staff will receive eight hours of co-occurring disorder
33.8training annually.
33.9(d) In order to be eligible for a higher rate under paragraph (c), clause (1), a program
33.10that provides arrangements for off-site child care must maintain current documentation at
33.11the chemical dependency facility of the child care provider's current licensure to provide
33.12child care services. Programs that provide child care according to paragraph (c), clause
33.13(1), must be deemed in compliance with the licensing requirements in Minnesota Rules,
33.14part 9530.6490.
33.15(e) Adolescent residential programs that meet the requirements of Minnesota Rules,
33.16parts 2960.0580 to 2960.0700 2960.0430 to 2960.0490 and 2960.0580 to 2960.0690, are
33.17exempt from the requirements in paragraph (c), clause (4), items (i) to (iv).


33.20    Section 1. Minnesota Statutes 2012, section 245C.04, as amended by Laws 2013,
33.21chapter 108, article 5, section 3, is amended to read:
33.22245C.04 WHEN BACKGROUND STUDY MUST OCCUR.
33.23    Subdivision 1. Licensed programs. (a) The commissioner shall conduct a
33.24background study of an individual required to be studied under section 245C.03,
33.25subdivision 1 , at least upon application for initial license for all license types.
33.26    (b) The commissioner shall conduct a background study of an individual required
33.27to be studied under section 245C.03, subdivision 1, at reapplication for a license for
33.28family child care.
33.29    (c) The commissioner is not required to conduct a study of an individual at the time
33.30of reapplication for a license if the individual's background study was completed by the
33.31commissioner of human services for an adult foster care license holder that is also:
33.32    (1) registered under chapter 144D; or
34.1    (2) licensed to provide home and community-based services to people with
34.2disabilities at the foster care location and the license holder does not reside in the foster
34.3care residence; and
34.4    (3) the following conditions are met:
34.5    (i) a study of the individual was conducted either at the time of initial licensure or
34.6when the individual became affiliated with the license holder;
34.7    (ii) the individual has been continuously affiliated with the license holder since
34.8the last study was conducted; and
34.9    (iii) the last study of the individual was conducted on or after October 1, 1995.
34.10    (d) From July 1, 2007, to June 30, 2009, the commissioner of human services shall
34.11conduct a study of an individual required to be studied under section 245C.03, at the
34.12time of reapplication for a child foster care license. The county or private agency shall
34.13collect and forward to the commissioner the information required under section 245C.05,
34.14subdivisions 1, paragraphs (a) and (b), and 5, paragraphs (a) and (b). The background
34.15study conducted by the commissioner of human services under this paragraph must
34.16include a review of the information required under section 245C.08, subdivisions 1,
34.17paragraph (a), clauses (1) to (5), 3, and 4.
34.18    (e) The commissioner of human services shall conduct a background study of an
34.19individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2)
34.20to (6), who is newly affiliated with a child foster care license holder. The county or
34.21private agency shall collect and forward to the commissioner the information required
34.22under section 245C.05, subdivisions 1 and 5. The background study conducted by the
34.23commissioner of human services under this paragraph must include a review of the
34.24information required under section 245C.08, subdivisions 1, 3, and 4.
34.25    (f) From January 1, 2010, to December 31, 2012, unless otherwise specified in
34.26paragraph (c), the commissioner shall conduct a study of an individual required to
34.27be studied under section 245C.03 at the time of reapplication for an adult foster care
34.28or family adult day services license: (1) the county shall collect and forward to the
34.29commissioner the information required under section 245C.05, subdivision 1, paragraphs
34.30(a) and (b), and subdivision 5, paragraphs (a) and (b), for background studies conducted
34.31by the commissioner for all family adult day services and for adult foster care when
34.32the adult foster care license holder resides in the adult foster care or family adult day
34.33services residence; (2) the license holder shall collect and forward to the commissioner
34.34the information required under section 245C.05, subdivisions 1, paragraphs (a) and (b);
34.35and 5, paragraphs (a) and (b), for background studies conducted by the commissioner for
34.36adult foster care when the license holder does not reside in the adult foster care residence;
35.1and (3) the background study conducted by the commissioner under this paragraph must
35.2include a review of the information required under section 245C.08, subdivision 1,
35.3paragraph (a), clauses (1) to (5), and subdivisions 3 and 4.
35.4    (g) The commissioner shall conduct a background study of an individual specified
35.5under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly
35.6affiliated with an adult foster care or family adult day services license holder: (1) the
35.7county shall collect and forward to the commissioner the information required under
35.8section 245C.05, subdivision 1, paragraphs (a) and (b), and subdivision 5, paragraphs (a)
35.9and (b), for background studies conducted by the commissioner for all family adult day
35.10services and for adult foster care when the adult foster care license holder resides in
35.11the adult foster care residence; (2) the license holder shall collect and forward to the
35.12commissioner the information required under section 245C.05, subdivisions 1, paragraphs
35.13(a) and (b); and 5, paragraphs (a) and (b), for background studies conducted by the
35.14commissioner for adult foster care when the license holder does not reside in the adult
35.15foster care residence; and (3) the background study conducted by the commissioner under
35.16this paragraph must include a review of the information required under section 245C.08,
35.17subdivision 1 , paragraph (a), and subdivisions 3 and 4.
35.18    (h) Applicants for licensure, license holders, and other entities as provided in this
35.19chapter must submit completed background study forms requests to the commissioner
35.20using the electronic system known as NETStudy before individuals specified in section
35.21245C.03, subdivision 1 , begin positions allowing direct contact in any licensed program.
35.22    (i) A license holder must initiate a new background study through the commissioner's
35.23online background study system NETStudy when:
35.24    (1) an individual returns to a position requiring a background study following an
35.25absence of 90 120 or more consecutive days; or
35.26    (2) a program that discontinued providing licensed direct contact services for 90 120
35.27 or more consecutive days begins to provide direct contact licensed services again.
35.28    The license holder shall maintain a copy of the notification provided to
35.29the commissioner under this paragraph in the program's files. If the individual's
35.30disqualification was previously set aside for the license holder's program and the new
35.31background study results in no new information that indicates the individual may pose a
35.32risk of harm to persons receiving services from the license holder, the previous set-aside
35.33shall remain in effect.
35.34    (j) For purposes of this section, a physician licensed under chapter 147 is considered
35.35to be continuously affiliated upon the license holder's receipt from the commissioner of
35.36health or human services of the physician's background study results.
36.1    (k) For purposes of family child care, a substitute caregiver must receive repeat
36.2background studies at the time of each license renewal.
36.3    Subd. 2. Other state agencies. Applicants and license holders under the jurisdiction
36.4of other state agencies who are required in other statutory sections to initiate background
36.5studies under this chapter must submit completed background study forms to the
36.6commissioner before the background study subject begins in a position allowing direct
36.7contact in the licensed program or, where applicable, prior to being employed.
36.8    Subd. 3. Personal care provider organizations. (a) The commissioner shall
36.9conduct a background study of an individual required to be studied under section 245C.03,
36.10subdivision 2 , at least upon application for initial enrollment under sections 256B.0651 to
36.11256B.0656 and 256B.0659.
36.12    (b) Organizations required to initiate background studies under sections 256B.0651
36.13to 256B.0656 and 256B.0659 for individuals described in section 245C.03, subdivision 2,
36.14must submit a completed background study form request to the commissioner using the
36.15electronic system known as NETStudy before those individuals begin a position allowing
36.16direct contact with persons served by the organization.
36.17    (c) Organizations required to initiate background studies under sections 256B.0651
36.18to 256B.0656 and 256B.0659 for individuals described in section 245C.03, subdivision 2,
36.19must initiate a new background study through NETStudy when an individual returns to a
36.20position requiring a background study following an absence of 120 or more consecutive
36.21days.
36.22    Subd. 4. Supplemental nursing services agencies. (a) The commissioner shall
36.23conduct a background study of an individual required to be studied under section 245C.03,
36.24subdivision 3 , at least upon application for registration under section 144A.71, subdivision
36.251 .
36.26    (b) Each supplemental nursing services agency must initiate background studies
36.27using the electronic system known as NETStudy before an individual begins a position
36.28allowing direct contact with persons served by the agency and annually thereafter.
36.29    Subd. 4a. Agency background studies. (a) The commissioner shall develop and
36.30implement an electronic process for the regular transfer of new criminal case information
36.31that is added to the Minnesota court information system. The commissioner's system
36.32must include for review only information that relates to individuals who have been the
36.33subject of a background study under this chapter that remain affiliated with the agency
36.34that initiated the background study. For purposes of this paragraph, an individual remains
36.35affiliated with an agency that initiated the background study until the agency informs the
36.36commissioner that the individual is no longer affiliated. When any individual no longer
37.1affiliated according to this paragraph returns to a position requiring a background study
37.2under this chapter, the agency with whom the individual is again affiliated shall initiate
37.3a new background study regardless of the length of time the individual was no longer
37.4affiliated with the agency.
37.5    (b) The commissioner shall develop and implement an online system for agencies that
37.6initiate background studies under this chapter to access and maintain records of background
37.7studies initiated by that agency. The system must show all active background study subjects
37.8affiliated with that agency and the status of each individual's background study. Each
37.9agency that initiates background studies must use this system to notify the commissioner
37.10of discontinued affiliation for purposes of the processes required under paragraph (a).
37.11    Subd. 5. Personnel agencies; educational programs; professional services
37.12agencies. Agencies, programs, and individuals who initiate background studies under
37.13section 245C.03, subdivision 4, must initiate the studies annually using the electronic
37.14system known as NETStudy.
37.15    Subd. 6. Unlicensed home and community-based waiver providers of service to
37.16seniors and individuals with disabilities. (a) Providers required to initiate background
37.17studies under section 256B.4912 must initiate a study using the electronic system known
37.18as NETStudy before the individual begins in a position allowing direct contact with
37.19persons served by the provider.
37.20    (b) Except as provided in paragraph (c), the providers must initiate a background
37.21study annually of an individual required to be studied under section 245C.03, subdivision 6.
37.22    (c) After an initial background study under this subdivision is initiated on an
37.23individual by a provider of both services licensed by the commissioner and the unlicensed
37.24services under this subdivision, a repeat annual background study is not required if:
37.25    (1) the provider maintains compliance with the requirements of section 245C.07,
37.26paragraph (a), regarding one individual with one address and telephone number as the
37.27person to receive sensitive background study information for the multiple programs that
37.28depend on the same background study, and that the individual who is designated to receive
37.29the sensitive background information is capable of determining, upon the request of the
37.30commissioner, whether a background study subject is providing direct contact services
37.31in one or more of the provider's programs or services and, if so, at which location or
37.32locations; and
37.33    (2) the individual who is the subject of the background study provides direct
37.34contact services under the provider's licensed program for at least 40 hours per year so
37.35the individual will be recognized by a probation officer or corrections agent to prompt
38.1a report to the commissioner regarding criminal convictions as required under section
38.2245C.05, subdivision 7 .
38.3    Subd. 7. New study required with legal name change. (a) For a background study
38.4completed on an individual required to be studied under section 245C.03, the license
38.5holder or other entity that initiated the background study must initiate a new background
38.6study using the electronic system known as NETStudy when an individual who is affiliated
38.7with the license holder or other entity undergoes a legal name change.
38.8    (b) For background studies subject to a fee paid through the NETStudy system, the
38.9entity that initiated the study may initiate a new study under paragraph (a) or notify the
38.10commissioner of the name change through a notice to the commissioner.

38.11    Sec. 2. Minnesota Statutes 2012, section 245C.05, subdivision 6, is amended to read:
38.12    Subd. 6. Applicant, license holder, other entities, and agencies. (a) The applicant,
38.13license holder, other entities as provided in this chapter, Bureau of Criminal Apprehension,
38.14law enforcement agencies, commissioner of health, and county agencies shall help with
38.15the study by giving the commissioner criminal conviction data and reports about the
38.16maltreatment of adults substantiated under section 626.557 and the maltreatment of
38.17minors substantiated under section 626.556.
38.18(b) If a background study is initiated by an applicant, license holder, or other entities
38.19as provided in this chapter, and the applicant, license holder, or other entity receives
38.20information about the possible criminal or maltreatment history of an individual who is
38.21the subject of the background study, the applicant, license holder, or other entity must
38.22immediately provide the information to the commissioner.
38.23(c) The program or county or other agency must provide written notice to the
38.24individual who is the subject of the background study of the requirements under this
38.25subdivision.

38.26    Sec. 3. Minnesota Statutes 2013 Supplement, section 245C.08, subdivision 1, is
38.27amended to read:
38.28    Subdivision 1. Background studies conducted by Department of Human
38.29Services. (a) For a background study conducted by the Department of Human Services,
38.30the commissioner shall review:
38.31    (1) information related to names of substantiated perpetrators of maltreatment of
38.32vulnerable adults that has been received by the commissioner as required under section
38.33626.557, subdivision 9c , paragraph (j);
39.1    (2) the commissioner's records relating to the maltreatment of minors in licensed
39.2programs, and from findings of maltreatment of minors as indicated through the social
39.3service information system;
39.4    (3) information from juvenile courts as required in subdivision 4 for individuals
39.5listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;
39.6    (4) information from the Bureau of Criminal Apprehension, including information
39.7regarding a background study subject's registration in Minnesota as a predatory offender
39.8under section 243.166;
39.9    (5) except as provided in clause (6), information from the national crime information
39.10system when the commissioner has reasonable cause as defined under section 245C.05,
39.11subdivision 5; and
39.12    (6) for a background study related to a child foster care application for licensure or
39.13adoptions, the commissioner shall also review:
39.14    (i) information from the child abuse and neglect registry for any state in which the
39.15background study subject has resided for the past five years; and
39.16    (ii) information from national crime information databases, when the background
39.17study subject is 18 years of age or older.
39.18    (b) Notwithstanding expungement by a court, the commissioner may consider
39.19information obtained under paragraph (a), clauses (3) and (4), unless the commissioner
39.20received notice of the petition for expungement and the court order for expungement is
39.21directed specifically to the commissioner.
39.22    (c) The commissioner shall also review criminal case information received according
39.23to section 245C.04, subdivision 4a, from the Minnesota court information system that
39.24relates to individuals who have already been studied under this chapter and who remain
39.25affiliated with the agency that initiated the background study.
39.26    (d) When the commissioner has reasonable cause to believe that the identity of
39.27a background study subject is uncertain, the commissioner may require the subject to
39.28provide a set of classifiable fingerprints for purposes of completing a fingerprint-based
39.29record check with the Bureau of Criminal Apprehension. Fingerprints collected under this
39.30paragraph shall not be saved by the commissioner after they have been used to verify the
39.31identity of the background study subject against the particular criminal record in question.

39.32    Sec. 4. Minnesota Statutes 2012, section 245C.16, subdivision 1, is amended to read:
39.33    Subdivision 1. Determining immediate risk of harm. (a) If the commissioner
39.34determines that the individual studied has a disqualifying characteristic, the commissioner
39.35shall review the information immediately available and make a determination as to the
40.1subject's immediate risk of harm to persons served by the program where the individual
40.2studied will have direct contact with, or access to, people receiving services.
40.3    (b) The commissioner shall consider all relevant information available, including the
40.4following factors in determining the immediate risk of harm:
40.5    (1) the recency of the disqualifying characteristic;
40.6    (2) the recency of discharge from probation for the crimes;
40.7    (3) the number of disqualifying characteristics;
40.8    (4) the intrusiveness or violence of the disqualifying characteristic;
40.9    (5) the vulnerability of the victim involved in the disqualifying characteristic;
40.10    (6) the similarity of the victim to the persons served by the program where the
40.11individual studied will have direct contact;
40.12    (7) whether the individual has a disqualification from a previous background study
40.13that has not been set aside; and
40.14    (8) if the individual has a disqualification which may not be set aside because it is
40.15a permanent bar under section 245C.24, subdivision 1, the commissioner may order the
40.16immediate removal of the individual from any position allowing direct contact with, or
40.17access to, persons receiving services from the program.
40.18    (c) This section does not apply when the subject of a background study is regulated
40.19by a health-related licensing board as defined in chapter 214, and the subject is determined
40.20to be responsible for substantiated maltreatment under section 626.556 or 626.557.
40.21    (d) This section does not apply to a background study related to an initial application
40.22for a child foster care license.
40.23(e) Except for paragraph (f), this section does not apply to a background study that
40.24is also subject to the requirements under section 256B.0659, subdivisions 11 and 13, for
40.25a personal care assistant or a qualified professional as defined in section 256B.0659,
40.26subdivision 1 .
40.27    (f) If the commissioner has reason to believe, based on arrest information or an
40.28active maltreatment investigation, that an individual poses an imminent risk of harm to
40.29persons receiving services, the commissioner may order that the person be continuously
40.30supervised or immediately removed pending the conclusion of the maltreatment
40.31investigation or criminal proceedings.

40.32    Sec. 5. Minnesota Statutes 2012, section 245C.20, subdivision 1, is amended to read:
40.33    Subdivision 1. Background studies initiated by program. A licensed program
40.34shall document the date the program initiates a background study under this chapter
40.35 and the date the subject of the study first has direct contact with persons served by the
41.1program in the program's personnel files. When a background study is completed under
41.2this chapter, a licensed program shall maintain a notice that the study was undertaken and
41.3completed in the program's personnel files. Except when background studies are initiated
41.4through the commissioner's online system, if a licensed program has not received a
41.5response from the commissioner under section 245C.17 within 45 days of initiation of the
41.6background study request, the licensed program must contact the human services licensing
41.7division to inquire about the status of the study. If a license holder initiates a background
41.8study under the commissioner's online system, but the background study subject's name
41.9does not appear in the list of active or recent studies initiated by that license holder, the
41.10license holder must either contact the human services licensing division or resubmit the
41.11background study information online for that individual.

41.12    Sec. 6. Minnesota Statutes 2012, section 245C.22, subdivision 1, is amended to read:
41.13    Subdivision 1. Time frame; response to disqualification reconsideration
41.14requests. (a) The commissioner shall respond in writing or by electronic transmission to
41.15all reconsideration requests for which the basis for the request is that the information the
41.16commissioner relied upon to disqualify is incorrect or inaccurate within 30 working days
41.17of receipt of a complete request and all required relevant information.
41.18(b) If the basis for a disqualified individual's reconsideration request is that the
41.19individual does not pose a risk of harm, the commissioner shall respond to the request
41.20within 15 working days after receiving the a complete request for reconsideration and
41.21all required relevant information.
41.22(c) If the disqualified individual's reconsideration request is based on both the
41.23correctness or accuracy of the information the commissioner relied upon to disqualify the
41.24individual and the individual's risk of harm, the commissioner shall respond to the request
41.25within 45 working days after receiving the a complete request for reconsideration and
41.26all required relevant information.

41.27    Sec. 7. Minnesota Statutes 2012, section 245C.23, subdivision 2, is amended to read:
41.28    Subd. 2. Commissioner's notice of disqualification that is not set aside. (a) The
41.29commissioner shall notify the license holder of the disqualification and order the license
41.30holder to immediately remove the individual from any position allowing direct contact
41.31with persons receiving services from the license holder if:
41.32    (1) the individual studied does not submit a timely request for reconsideration
41.33under section 245C.21;
42.1    (2) the individual submits a timely request for reconsideration, but the commissioner
42.2does not set aside the disqualification for that license holder under section 245C.22, unless
42.3the individual has a right to request a hearing under section 245C.27, 245C.28, or 256.045;
42.4    (3) an individual who has a right to request a hearing under sections 245C.27 and
42.5256.045 , or 245C.28 and chapter 14 for a disqualification that has not been set aside, does
42.6not request a hearing within the specified time; or
42.7    (4) an individual submitted a timely request for a hearing under sections 245C.27
42.8and 256.045, or 245C.28 and chapter 14, but the commissioner does not set aside the
42.9disqualification under section 245A.08, subdivision 5, or 256.045.
42.10    (b) If the commissioner does not set aside the disqualification under section 245C.22,
42.11and the license holder was previously ordered under section 245C.17 to immediately
42.12remove the disqualified individual from direct contact with persons receiving services or
42.13to ensure that the individual is under continuous, direct supervision when providing direct
42.14contact services, the order remains in effect pending the outcome of a hearing under
42.15sections 245C.27 and 256.045, or 245C.28 and chapter 14.
42.16(c) If the commissioner does not set aside the disqualification under section 245C.22,
42.17and the license holder was not previously ordered under section 245C.17 to immediately
42.18remove the disqualified individual from direct contact with persons receiving services or
42.19to ensure that the individual is under continuous direct supervision when providing direct
42.20contact services, the commissioner shall order the individual to remain under continuous
42.21direct supervision pending the outcome of a hearing under sections 245C.27 and 256.045,
42.22or 245C.28 and chapter 14.
42.23    (c) (d) For background studies related to child foster care, the commissioner shall
42.24also notify the county or private agency that initiated the study of the results of the
42.25reconsideration.
42.26(d) (e) For background studies related to adult foster care and family adult day
42.27services, the commissioner shall also notify the county that initiated the study of the
42.28results of the reconsideration.

42.29    Sec. 8. Minnesota Statutes 2012, section 245C.28, subdivision 1, is amended to read:
42.30    Subdivision 1. License holder. (a) If a maltreatment determination or a
42.31disqualification for which reconsideration was timely requested and which was not set
42.32aside is the basis for a denial of a license under section 245A.05 or a licensing sanction
42.33under section 245A.07, the license holder has the right to a contested case hearing under
42.34chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The license holder must
42.35submit the appeal under section 245A.05 or 245A.07, subdivision 3.
43.1    (b) As provided under section 245A.08, subdivision 2a, if the denial of a license
43.2or licensing sanction is based on a disqualification for which reconsideration was timely
43.3requested and was not set aside, the scope of the consolidated contested case hearing
43.4must include:
43.5    (1) the disqualification, to the extent the license holder otherwise has a hearing right
43.6on the disqualification under this chapter; and
43.7    (2) the licensing sanction or denial of a license.
43.8    (c) As provided for under section 245A.08, subdivision 2a, if the denial of a license
43.9or licensing sanction is based on a determination of maltreatment under section 626.556
43.10or 626.557, or a disqualification for serious or recurring maltreatment which was not set
43.11aside, the scope of the contested case hearing must include:
43.12    (1) the maltreatment determination, if the maltreatment is not conclusive under
43.13section 245C.29;
43.14    (2) the disqualification, if the disqualification is not conclusive under section
43.15245C.29 ; and
43.16    (3) the licensing sanction or denial of a license. In such cases, a fair hearing must not
43.17be conducted under section 256.045. If the disqualification was based on a determination
43.18of substantiated serious or recurring maltreatment under section 626.556 or 626.557, the
43.19appeal must be submitted under sections 245A.07, subdivision 3, and 626.556, subdivision
43.2010i, or 626.557, subdivision 9d.
43.21    (d) Except for family child care and child foster care, reconsideration of a
43.22maltreatment determination under sections 626.556, subdivision 10i, and 626.557,
43.23subdivision 9d, and reconsideration of a disqualification under section 245C.22, must
43.24not be conducted when:
43.25    (1) a denial of a license under section 245A.05, or a licensing sanction under section
43.26245A.07 , is based on a determination that the license holder is responsible for maltreatment
43.27or the disqualification of a license holder based on serious or recurring maltreatment;
43.28    (2) the denial of a license or licensing sanction is issued at the same time as the
43.29maltreatment determination or disqualification; and
43.30    (3) the license holder appeals the maltreatment determination, disqualification, and
43.31denial of a license or licensing sanction. In such cases a fair hearing under section 256.045
43.32must not be conducted under sections 245C.27, 626.556, subdivision 10i, and 626.557,
43.33subdivision 9d. Under section 245A.08, subdivision 2a, the scope of the consolidated
43.34contested case hearing must include the maltreatment determination, disqualification, and
43.35denial of a license or licensing sanction.
44.1    Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment
44.2determination or disqualification, but does not appeal the denial of a license or a licensing
44.3sanction, reconsideration of the maltreatment determination shall be conducted under
44.4sections 626.556, subdivision 10i, and 626.557, subdivision 9d, and reconsideration of the
44.5disqualification shall be conducted under section 245C.22. In such cases, a fair hearing
44.6shall also be conducted as provided under sections 245C.27, 626.556, subdivision 10i, and
44.7626.557, subdivision 9d .

44.8    Sec. 9. Minnesota Statutes 2012, section 245C.28, subdivision 3, is amended to read:
44.9    Subd. 3. Employees of public employer. (a) A disqualified individual who is an
44.10employee of an employer, as defined in section 179A.03, subdivision 15, may request
44.11a contested case hearing under chapter 14, and specifically Minnesota Rules, parts
44.121400.8505 to 1400.8612, following a reconsideration decision under section 245C.23,
44.13unless the disqualification is deemed conclusive under section 245C.29. The request for a
44.14contested case hearing must be made in writing and must be postmarked and sent within
44.1530 calendar days after the employee receives notice of the reconsideration decision. If
44.16the individual was disqualified based on a conviction or admission to any crimes listed in
44.17section 245C.15, the scope of the contested case hearing shall be limited solely to whether
44.18the individual poses a risk of harm pursuant to section 245C.22.
44.19(b) When an individual is disqualified based on a maltreatment determination, the
44.20scope of the contested case hearing under paragraph (a), must include the maltreatment
44.21determination and the disqualification. In such cases, a fair hearing must not be conducted
44.22under section 256.045.
44.23(c) Rules adopted under this chapter may not preclude an employee in a contested
44.24case hearing for a disqualification from submitting evidence concerning information
44.25gathered under this chapter.
44.26(d) When an individual has been disqualified from multiple licensed programs, if
44.27at least one of the disqualifications entitles the person to a contested case hearing under
44.28this subdivision, the scope of the contested case hearing shall include all disqualifications
44.29from licensed programs.
44.30(e) In determining whether the disqualification should be set aside, the administrative
44.31law judge shall consider all of the characteristics that cause the individual to be disqualified,
44.32as well as all the factors set forth in section 245C.22, in order to determine whether the
44.33individual poses has met the burden of demonstrating that the individual does not pose
44.34 a risk of harm. The administrative law judge's recommendation and the commissioner's
44.35order to set aside a disqualification that is the subject of the hearing constitutes a
45.1determination that the individual does not pose a risk of harm and that the individual may
45.2provide direct contact services in the individual program specified in the set aside.
45.3(f) An individual may not request a contested case hearing under this section if a
45.4contested case hearing has previously been held regarding the individual's disqualification
45.5on the same basis.

45.6    Sec. 10. Minnesota Statutes 2012, section 245C.29, subdivision 2, is amended to read:
45.7    Subd. 2. Conclusive disqualification determination. (a) Unless otherwise
45.8specified in statute, a determination that:
45.9(1) the information the commissioner relied upon to disqualify an individual under
45.10section 245C.14 was correct based on serious or recurring maltreatment;
45.11(2) a preponderance of the evidence shows that the individual committed an act or
45.12acts that meet the definition of any of the crimes listed in section 245C.15; or
45.13(3) the individual failed to make required reports under section 626.556, subdivision
45.143 , or 626.557, subdivision 3, is conclusive if: A disqualification is conclusive for purposes
45.15of current and future background studies if:
45.16(i) (1) the commissioner has issued a final order in an appeal of that determination
45.17 the disqualification under section 245A.08, subdivision 5, 245C.28, subdivision 3, or
45.18256.045 , or a court has issued a final decision;
45.19(ii) (2) the individual did not request reconsideration of the disqualification under
45.20section 245C.21 on the basis that the information relied upon to disqualify the individual
45.21was incorrect; or
45.22(iii) (3) the individual did not timely request a hearing on the disqualification under
45.23section 256.045 or this chapter, chapter 14, or section 256.045 after previously being
45.24given the right to do so.
45.25(b) When a licensing action under section 245A.05, 245A.06, or 245A.07 is based
45.26on the disqualification of an individual in connection with a license to provide family child
45.27care, foster care for children in the provider's own home, or foster care services for adults
45.28in the provider's own home, that disqualification shall be conclusive for purposes of the
45.29licensing action if a request for reconsideration was not submitted within 30 calendar days
45.30of the individual's receipt of the notice of disqualification.
45.31(c) If a determination that the information relied upon to disqualify an individual
45.32was correct and disqualification is conclusive under this section, and the individual is
45.33subsequently disqualified under section 245C.15, the individual has a right to request
45.34reconsideration on the risk of harm under section 245C.21 unless the commissioner
45.35is barred from setting aside the disqualification under section 245C.24. Subsequent
46.1determinations The commissioner's decision regarding the risk of harm shall be made
46.2according to section 245C.22 and are not subject to another the final agency decision and
46.3is not subject to a hearing under this chapter, section 256.045 or chapter 14, or section
46.4256.045.

46.5    Sec. 11. Minnesota Statutes 2013 Supplement, section 256.045, subdivision 3b,
46.6is amended to read:
46.7    Subd. 3b. Standard of evidence for maltreatment and disqualification hearings.
46.8    (a) The state human services judge shall determine that maltreatment has occurred if a
46.9preponderance of evidence exists to support the final disposition under sections 626.556
46.10and 626.557. For purposes of hearings regarding disqualification, the state human
46.11services judge shall affirm the proposed disqualification in an appeal under subdivision 3,
46.12paragraph (a), clause (9), if a preponderance of the evidence shows the individual has:
46.13    (1) committed maltreatment under section 626.556 or 626.557, which is serious or
46.14recurring;
46.15    (2) committed an act or acts meeting the definition of any of the crimes listed in
46.16section 245C.15, subdivisions 1 to 4; or
46.17    (3) failed to make required reports under section 626.556 or 626.557, for incidents
46.18in which the final disposition under section 626.556 or 626.557 was substantiated
46.19maltreatment that was serious or recurring.
46.20    (b) If the disqualification is affirmed, the state human services judge shall determine
46.21whether the individual poses a risk of harm in accordance with the requirements of
46.22section 245C.22, and whether the disqualification should be set aside or not set aside. In
46.23determining whether the disqualification should be set aside, the human services judge shall
46.24consider all of the characteristics that cause the individual to be disqualified, including those
46.25characteristics that were not subject to review under paragraph (a), in order to determine
46.26whether the individual poses a risk of harm. A decision to set aside a disqualification that
46.27is the subject of the hearing constitutes a determination that the individual does not pose a
46.28risk of harm and that the individual may provide direct contact services in the individual
46.29program specified in the set aside. If a determination that the information relied upon to
46.30disqualify an individual was correct and is conclusive under section 245C.29, and the
46.31individual is subsequently disqualified under section 245C.14, the individual has a right
46.32to again request reconsideration on the risk of harm under section 245C.21. Subsequent
46.33determinations regarding risk of harm are not subject to another hearing under this section.
47.1    (c) If a disqualification is based solely on a conviction or is conclusive for any
47.2reason under section 245C.29, the disqualified individual does not have a right to a
47.3hearing under this section.
47.4    (c) (d) The state human services judge shall recommend an order to the
47.5commissioner of health, education, or human services, as applicable, who shall issue a
47.6final order. The commissioner shall affirm, reverse, or modify the final disposition. Any
47.7order of the commissioner issued in accordance with this subdivision is conclusive upon
47.8the parties unless appeal is taken in the manner provided in subdivision 7. In any licensing
47.9appeal under chapters 245A and 245C and sections 144.50 to 144.58 and 144A.02 to
47.10144A.46 , the commissioner's determination as to maltreatment is conclusive, as provided
47.11under section 245C.29.

47.12    Sec. 12. BACKGROUND STUDY REVIEW.
47.13(a) The Office of the Legislative Auditor is requested to conduct a review of the
47.14background study provisions contained in Minnesota Statutes, chapter 245C. The review
47.15should include:
47.16(1) the appropriateness of the statutory list of disqualifying crimes and their various
47.17lookback periods;
47.18(2) the agency authority to disqualify an individual who has no conviction, but for
47.19whom the commissioner has determined there is a preponderance of the evidence that the
47.20individual committed the disqualifying offense;
47.21(3) the role of expungement in the agency's access to criminal records;
47.22(4) the impact and justification for the lifetime bar of some disqualified individuals
47.23based on certain criminal offenses or alleged offenses;
47.24(5) the available and relevant data on the demographics of applicants and those
47.25disqualified, such as race and gender; and
47.26(6) set-aside and variance policies.
47.27(b) As part of the review process, the auditor shall collect information from impacted
47.28stakeholders, including individuals who have been disqualified and those who represent
47.29individuals in the background study process. The legislative auditor is requested to submit
47.30the results of the review to the Legislative Audit Commission and the chairs of the senate
47.31and house of representatives policy committees having jurisdiction over the Department
47.32of Human Services background studies activities by January 1, 2015.