1.2relating to human services; modifying provisions related to licensing data,
1.3human services licensing, child care programs, financial fraud and abuse
1.4investigations, vendors of chemical dependency treatment services, background
1.5studies, and fair hearings; requiring the use of NETStudy for background studies;
1.6amending Minnesota Statutes 2012, sections 13.46, subdivisions 3, 4; 119B.125,
1.7subdivision 1b; 168.012, subdivision 1; 245A.02, subdivision 5a; 245A.04,
1.8subdivisions 1, 5, 11; 245A.06, subdivision 1; 245A.07, subdivisions 2, 2a, 3,
1.9by adding a subdivision; 245A.08, subdivisions 2a, 5a; 245A.146, subdivisions
1.103, 4; 245A.50, subdivision 4; 245A.65, subdivision 1; 245A.66, subdivision
1.111; 245B.02, subdivision 10; 245B.04; 245B.05, subdivisions 1, 7; 245B.07,
1.12subdivisions 5, 9, 10; 245C.04; 245C.05, subdivision 6; 245C.08, subdivision
1.131; 245C.16, subdivision 1; 245C.20, subdivision 1; 245C.22, subdivision 1;
1.14245C.23, subdivision 2; 245C.24, subdivision 2; 245C.28, subdivisions 1, 3;
1.15245C.29, subdivision 2; 254B.05, subdivision 5; 256.01, subdivision 18d;
1.16256.045, subdivision 3b; 268.19, subdivision 1; 471.346; proposing coding for
1.17new law in Minnesota Statutes, chapter 245A; repealing Minnesota Statutes
1.182012, sections 245B.02, subdivision 8a; 245B.07, subdivision 7a.
1.19BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:


1.22    Section 1. Minnesota Statutes 2012, section 13.46, subdivision 3, is amended to read:
1.23    Subd. 3. Investigative data. (a) Data on persons, including data on vendors of
1.24services, licensees, and applicants that is collected, maintained, used, or disseminated
1.25by the welfare system in an investigation, authorized by statute, and relating to the
1.26enforcement of rules or law are confidential data on individuals pursuant to section 13.02,
1.27subdivision 3 , or protected nonpublic data not on individuals pursuant to section 13.02,
1.28subdivision 13 , and shall not be disclosed except:
1.29(1) pursuant to section 13.05;
2.1(2) pursuant to statute or valid court order;
2.2(3) to a party named in a civil or criminal proceeding, administrative or judicial, for
2.3preparation of defense; or
2.4(4) to provide notices required or permitted by statute.
2.5The data referred to in this subdivision shall be classified as public data upon
2.6submission to an administrative law judge or court in an administrative or judicial
2.7proceeding. Inactive welfare investigative data shall be treated as provided in section
2.813.39, subdivision 3 .
2.9(b) Notwithstanding any other provision in law, the commissioner of human services
2.10shall provide all active and inactive investigative data, including the name of the reporter
2.11of alleged maltreatment under section 626.556 or 626.557, to the ombudsman for mental
2.12health and developmental disabilities upon the request of the ombudsman.
2.13    (c) Notwithstanding paragraph (a) and section 13.39, the existence of an
2.14investigation by the commissioner of possible overpayments of public funds to a service
2.15provider is public data during an investigation or recipient may be disclosed if the
2.16commissioner determines that it will not compromise the investigation.

2.17    Sec. 2. Minnesota Statutes 2012, section 13.46, subdivision 4, is amended to read:
2.18    Subd. 4. Licensing data. (a) As used in this subdivision:
2.19    (1) "licensing data" are all data collected, maintained, used, or disseminated by the
2.20welfare system pertaining to persons licensed or registered or who apply for licensure
2.21or registration or who formerly were licensed or registered under the authority of the
2.22commissioner of human services;
2.23    (2) "client" means a person who is receiving services from a licensee or from an
2.24applicant for licensure; and
2.25    (3) "personal and personal financial data" are Social Security numbers, identity
2.26of and letters of reference, insurance information, reports from the Bureau of Criminal
2.27Apprehension, health examination reports, and social/home studies.
2.28    (b)(1)(i) Except as provided in paragraph (c), the following data on applicants,
2.29license holders, and former licensees are public: name, address, telephone number of
2.30licensees, date of receipt of a completed application, dates of licensure, licensed capacity,
2.31type of client preferred, variances granted, record of training and education in child care
2.32and child development, type of dwelling, name and relationship of other family members,
2.33previous license history, class of license, the existence and status of complaints, and the
2.34number of serious injuries to or deaths of individuals in the licensed program as reported
2.35to 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) The commissioner may also issue a conditional license for services provided
12.22in the license holder's own home when an individual who has ever been subject to a
12.23background study has a disqualification that is not set aside if: (1) the disqualified
12.24individual is a "family or household member" of the license holder, as defined in section
12.25518B.01, subdivision 2; or (2) the disqualified individual has a record of having had direct
12.26contact with, or access to, persons served by the program.

12.27    Sec. 7. Minnesota Statutes 2012, section 245A.07, subdivision 2, is amended to read:
12.28    Subd. 2. Temporary immediate suspension. If the license holder's actions or
12.29failure to comply with applicable law or rule, or the actions of other individuals or
12.30conditions in the program pose an imminent risk of harm to the health, safety, or rights of
12.31persons served by the program, or if while the program continues to operate pending an
12.32appeal of an order of revocation the commissioner identifies one or more new violations
12.33of law or rule which may adversely affect the health or safety of persons served by the
12.34program, the commissioner shall act immediately to temporarily suspend the license.
13.1No state funds shall be made available or be expended by any agency or department of
13.2state, county, or municipal government for use by a license holder regulated under this
13.3chapter while a license is under immediate suspension. A notice stating the reasons for
13.4the immediate suspension and informing the license holder of the right to an expedited
13.5hearing under chapter 14 and specifically Minnesota Rules, parts 1400.8505 to 1400.8612,
13.6must be delivered by personal service to the address shown on the application or the last
13.7known address of the license holder. The license holder may appeal an order immediately
13.8suspending a license. The appeal of an order immediately suspending a license must
13.9be made in writing by certified mail or personal service. If mailed, the appeal must be
13.10postmarked and sent to the commissioner within five calendar days after the license holder
13.11receives notice that the license has been immediately suspended. If a request is made by
13.12personal service, it must be received by the commissioner within five calendar days after
13.13the license holder received the order. A license holder and any controlling individual
13.14shall discontinue operation of the program upon receipt of the commissioner's order to
13.15immediately suspend the license.

13.16    Sec. 8. Minnesota Statutes 2012, section 245A.07, subdivision 2a, is amended to read:
13.17    Subd. 2a. Immediate suspension expedited hearing. (a) Within five working days
13.18of receipt of the license holder's timely appeal, the commissioner shall request assignment
13.19of an administrative law judge. The request must include a proposed date, time, and place
13.20of a hearing. A hearing must be conducted by an administrative law judge within 30
13.21calendar days of the request for assignment, unless an extension is requested by either
13.22party and granted by the administrative law judge for good cause. The commissioner shall
13.23issue a notice of hearing by certified mail or personal service at least ten working days
13.24before the hearing. The scope of the hearing shall be limited solely to the issue of whether
13.25the temporary immediate suspension should remain in effect pending the commissioner's
13.26final order under section 245A.08, regarding a licensing sanction issued under subdivision
13.273 following the immediate suspension. The burden of proof in expedited hearings under
13.28this subdivision shall be limited to the commissioner's demonstration that reasonable
13.29cause exists to believe that the license holder's actions or failure to comply with applicable
13.30law or rule poses, or if the actions of other individuals or conditions in the program poses
13.31an imminent risk of harm to the health, safety, or rights of persons served by the program.
13.32"Reasonable cause" means there exist specific articulable facts or circumstances which
13.33provide the commissioner with a reasonable suspicion that there is an imminent risk of
13.34harm to the health, safety, or rights of persons served by the program.
14.1    (b) The administrative law judge shall issue findings of fact, conclusions, and a
14.2recommendation within ten working days from the date of hearing. The parties shall
14.3have ten calendar days to submit exceptions to the administrative law judge's report.
14.4The record shall close at the end of the ten-day period for submission of exceptions.
14.5The commissioner's final order shall be issued within ten working days from the close
14.6of the record. When an appeal of a temporary immediate suspension is withdrawn or
14.7dismissed, the commissioner shall issue a final order affirming the temporary immediate
14.8suspension within ten calendar days of the commissioner's receipt of the withdrawal or
14.9dismissal. Within 90 calendar days after a final order affirming an immediate suspension,
14.10the commissioner shall make a determination regarding whether a final licensing sanction
14.11shall be issued under subdivision 3. The license holder shall continue to be prohibited
14.12from operation of the program during this 90-day period.
14.13    (c) When the final order under paragraph (b) affirms an immediate suspension, and a
14.14final licensing sanction is issued under subdivision 3 and the license holder appeals that
14.15sanction, the license holder continues to be prohibited from operation of the program
14.16pending a final commissioner's order under section 245A.08, subdivision 5, regarding the
14.17final licensing sanction.

14.18    Sec. 9. Minnesota Statutes 2012, section 245A.07, subdivision 3, is amended to read:
14.19    Subd. 3. License suspension, revocation, or fine. (a) The commissioner may
14.20suspend or revoke a license, or impose a fine if:
14.21(1) a license holder fails to comply fully with applicable laws or rules;
14.22(2) a license holder, a controlling individual, or an individual living in the household
14.23where the licensed services are provided or is otherwise subject to a background study has
14.24a disqualification which has not been set aside under section 245C.22;
14.25(3) a license holder knowingly withholds relevant information from or gives false
14.26or misleading information to the commissioner in connection with an application for
14.27a license, in connection with the background study status of an individual, during an
14.28investigation, or regarding compliance with applicable laws or rules; or
14.29(4) after July 1, 2012, and upon request by the commissioner, a license holder fails
14.30to submit the information required of an applicant under section 245A.04, subdivision 1,
14.31paragraph (f) or (g).
14.32A license holder who has had a license suspended, revoked, or has been ordered
14.33to pay a fine must be given notice of the action by certified mail or personal service. If
14.34mailed, the notice must be mailed to the address shown on the application or the last
15.1known address of the license holder. The notice must state the reasons the license was
15.2suspended, revoked, or a fine was ordered.
15.3    (b) If the license was suspended or revoked, the notice must inform the license
15.4holder of the right to a contested case hearing under chapter 14 and specifically Minnesota
15.5Rules, parts 1400.8505 to 1400.8612. The license holder may appeal an order suspending
15.6or revoking a license. The appeal of an order suspending or revoking a license must
15.7be made in writing by certified mail or personal service. If mailed, the appeal must be
15.8postmarked and sent to the commissioner within ten calendar days after the license holder
15.9receives notice that the license has been suspended or revoked. If a request is made by
15.10personal service, it must be received by the commissioner within ten calendar days after
15.11the license holder received the order. Except as provided in subdivision 2a, paragraph
15.12(c), if a license holder submits a timely appeal of an order suspending or revoking a
15.13license, the license holder may continue to operate the program as provided in section
15.14245A.04, subdivision 7 , paragraphs (g) and (h), until the commissioner issues a final order
15.15on the suspension or revocation.
15.16    (c)(1) If the license holder was ordered to pay a fine, the notice must inform the
15.17license holder of the responsibility for payment of fines and the right to a contested case
15.18hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal
15.19of an order to pay a fine must be made in writing by certified mail or personal service. If
15.20mailed, the appeal must be postmarked and sent to the commissioner within ten calendar
15.21days after the license holder receives notice that the fine has been ordered. If a request is
15.22made by personal service, it must be received by the commissioner within ten calendar
15.23days after the license holder received the order.
15.24    (2) The license holder shall pay the fines assessed on or before the payment date
15.25specified. If the license holder fails to fully comply with the order, the commissioner
15.26may issue a second fine or suspend the license until the license holder complies. If the
15.27license holder receives state funds, the state, county, or municipal agencies or departments
15.28responsible for administering the funds shall withhold payments and recover any payments
15.29made while the license is suspended for failure to pay a fine. A timely appeal shall stay
15.30payment of the fine until the commissioner issues a final order.
15.31    (3) A license holder shall promptly notify the commissioner of human services,
15.32in writing, when a violation specified in the order to forfeit a fine is corrected. If upon
15.33reinspection the commissioner determines that a violation has not been corrected as
15.34indicated by the order to forfeit a fine, the commissioner may issue a second fine. The
15.35commissioner shall notify the license holder by certified mail or personal service that a
16.1second fine has been assessed. The license holder may appeal the second fine as provided
16.2under this subdivision.
16.3    (4) Fines shall be assessed as follows: the license holder shall forfeit $1,000 for
16.4each determination of maltreatment of a child under section 626.556 or the maltreatment
16.5of a vulnerable adult under section 626.557 for which the license holder is determined
16.6responsible for the maltreatment under section 626.556, subdivision 10e, paragraph (i),
16.7or 626.557, subdivision 9c, paragraph (c); the license holder shall forfeit $200 for each
16.8occurrence of a violation of law or rule governing matters of health, safety, or supervision,
16.9including but not limited to the provision of adequate staff-to-child or adult ratios, and
16.10failure to comply with background study requirements under chapter 245C; and the license
16.11holder shall forfeit $100 for each occurrence of a violation of law or rule other than those
16.12subject to a $1,000 or $200 fine above. For purposes of this section, "occurrence" means
16.13each violation identified in the commissioner's fine order. Fines assessed against a license
16.14holder that holds a license to provide the residential-based habilitation services, as defined
16.15under section 245B.02, subdivision 20, and a license to provide foster care, may be
16.16assessed against both licenses for the same occurrence, but the combined amount of the
16.17fines shall not exceed the amount specified in this clause for that occurrence.
16.18    (5) When a fine has been assessed, the license holder may not avoid payment by
16.19closing, selling, or otherwise transferring the licensed program to a third party. In such an
16.20event, the license holder will be personally liable for payment. In the case of a corporation,
16.21each controlling individual is personally and jointly liable for payment.
16.22(d) Except for background study violations involving the failure to comply with an
16.23order to immediately remove an individual or an order to provide continuous, direct
16.24supervision, the commissioner shall not issue a fine under paragraph (c) relating to a
16.25background study violation to a license holder who self-corrects a background study
16.26violation before the commissioner discovers the violation. A license holder who has
16.27previously exercised the provisions of this paragraph to avoid a fine for a background
16.28study violation may not avoid a fine for a subsequent background study violation unless at
16.29least 365 days have passed since the license holder self-corrected the earlier background
16.30study violation.

16.31    Sec. 10. Minnesota Statutes 2012, section 245A.07, is amended by adding a
16.32subdivision to read:
16.33    Subd. 7. Time frame for conducting hearing. Within 15 working days of receipt
16.34of the license holder's timely appeal of a sanction under this section other than a temporary
16.35immediate suspension, the commissioner shall request assignment of an administrative
17.1law judge. The commissioner's request must include a proposed date, time, and place of a
17.2hearing. A hearing must be conducted by an administrative law judge within 90 calendar
17.3days of the request for assignment, unless an extension is requested by either party and
17.4granted by the administrative law judge for good cause or for purposes of discussing
17.5settlement. In no case shall one or more extensions be granted for a total of more than 90
17.6calendar days unless there is a criminal or juvenile court action pending against the license
17.7holder or another individual subject to a background study.

17.8    Sec. 11. Minnesota Statutes 2012, section 245A.08, subdivision 2a, is amended to read:
17.9    Subd. 2a. Consolidated contested case hearings. (a) When a denial of a license
17.10under section 245A.05 or a licensing sanction under section 245A.07, subdivision 3, is
17.11based on a disqualification for which reconsideration was timely requested and which was
17.12not set aside under section 245C.22, the scope of the contested case hearing shall include
17.13the disqualification and the licensing sanction or denial of a license, unless otherwise
17.14specified in this subdivision. When the licensing sanction or denial of a license is based on
17.15a determination of maltreatment under section 626.556 or 626.557, or a disqualification
17.16for serious or recurring maltreatment which was not set aside, the scope of the contested
17.17case hearing shall include the maltreatment determination, disqualification, and the
17.18licensing sanction or denial of a license, unless otherwise specified in this subdivision. In
17.19such cases, a fair hearing under section 256.045 shall not be conducted as provided for in
17.20sections 245C.27, 626.556, subdivision 10i, and 626.557, subdivision 9d.
17.21    (b) Except for family child care and child foster care, reconsideration of a
17.22maltreatment determination under sections 626.556, subdivision 10i, and 626.557,
17.23subdivision 9d, and reconsideration of a disqualification under section 245C.22, shall
17.24not be conducted when:
17.25    (1) a denial of a license under section 245A.05, or a licensing sanction under section
17.26245A.07 , is based on a determination that the license holder is responsible for maltreatment
17.27or the disqualification of a license holder is based on serious or recurring maltreatment;
17.28    (2) the denial of a license or licensing sanction is issued at the same time as the
17.29maltreatment determination or disqualification; and
17.30    (3) the license holder appeals the maltreatment determination or disqualification,
17.31and denial of a license or licensing sanction. In these cases, a fair hearing shall not be
17.32conducted under sections 245C.27, 626.556, subdivision 10i, and 626.557, subdivision
17.339d. The scope of the contested case hearing must include the maltreatment determination,
17.34disqualification, and denial of a license or licensing sanction.
18.1    Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment
18.2determination or disqualification, but does not appeal the denial of a license or a licensing
18.3sanction, reconsideration of the maltreatment determination shall be conducted under
18.4sections 626.556, subdivision 10i, and 626.557, subdivision 9d, and reconsideration of the
18.5disqualification shall be conducted under section 245C.22. In such cases, a fair hearing
18.6shall also be conducted as provided under sections 245C.27, 626.556, subdivision 10i, and
18.7626.557, subdivision 9d .
18.8    (c) In consolidated contested case hearings regarding sanctions issued in family child
18.9care, child foster care, family adult day services, and adult foster care, the county attorney
18.10shall defend the commissioner's orders in accordance with section 245A.16, subdivision 4.
18.11    (d) The commissioner's final order under subdivision 5 is the final agency action
18.12on the issue of maltreatment and disqualification, including for purposes of subsequent
18.13background studies under chapter 245C and is the only administrative appeal of the final
18.14agency determination, specifically, including a challenge to the accuracy and completeness
18.15of data under section 13.04.
18.16    (e) When consolidated hearings under this subdivision involve a licensing sanction
18.17based on a previous maltreatment determination for which the commissioner has issued
18.18a final order in an appeal of that determination under section 256.045, or the individual
18.19failed to exercise the right to appeal the previous maltreatment determination under
18.20section 626.556, subdivision 10i, or 626.557, subdivision 9d, the commissioner's order is
18.21conclusive on the issue of maltreatment. In such cases, the scope of the administrative
18.22law judge's review shall be limited to the disqualification and the licensing sanction or
18.23denial of a license. In the case of a denial of a license or a licensing sanction issued to
18.24a facility based on a maltreatment determination regarding an individual who is not the
18.25license holder or a household member, the scope of the administrative law judge's review
18.26includes the maltreatment determination.
18.27    (f) The hearings of all parties may be consolidated into a single contested case
18.28hearing upon consent of all parties and the administrative law judge, if:
18.29    (1) a maltreatment determination or disqualification, which was not set aside under
18.30section 245C.22, is the basis for a denial of a license under section 245A.05 or a licensing
18.31sanction under section 245A.07;
18.32    (2) the disqualified subject is an individual other than the license holder and upon
18.33whom a background study must be conducted under section 245C.03; and
18.34    (3) the individual has a hearing right under section 245C.27.
18.35    (g) When a denial of a license under section 245A.05 or a licensing sanction under
18.36section 245A.07 is based on a disqualification for which reconsideration was requested
19.1and was not set aside under section 245C.22, and the individual otherwise has no hearing
19.2right under section 245C.27, the scope of the administrative law judge's review shall
19.3include the denial or sanction and a determination whether the disqualification should
19.4be set aside, unless section 245C.24 prohibits the set-aside of the disqualification. In
19.5determining whether the disqualification should be set aside, the administrative law judge
19.6shall consider the factors under section 245C.22, subdivision 4, to determine whether the
19.7individual poses a risk of harm to any person receiving services from the license holder.
19.8    (h) Notwithstanding section 245C.30, subdivision 5, when a licensing sanction
19.9under section 245A.07 is based on the termination of a variance under section 245C.30,
19.10subdivision 4 , the scope of the administrative law judge's review shall include the sanction
19.11and a determination whether the disqualification should be set aside, unless section
19.12245C.24 prohibits the set-aside of the disqualification. In determining whether the
19.13disqualification should be set aside, the administrative law judge shall consider the factors
19.14under section 245C.22, subdivision 4, to determine whether the individual poses a risk of
19.15harm to any person receiving services from the license holder.

19.16    Sec. 12. Minnesota Statutes 2012, section 245A.08, subdivision 5a, is amended to read:
19.17    Subd. 5a. Granting subsequent license. (a) A license holder and each controlling
19.18individual of a license holder whose license has been revoked because of noncompliance
19.19with applicable law or rule must not be granted a license for five years following the
19.20revocation. Notwithstanding the five-year restriction, when a license is revoked because a
19.21person, other than the license holder, resides in the home where services are provided and
19.22that person has a disqualification that is not set aside and no variance has been granted,
19.23the former license holder may reapply for a license when:
19.24(1) the person with a disqualification, who is not a minor child, is no longer residing
19.25in the home and is prohibited from residing in or returning to the home; or
19.26(2) the person with the disqualification is a minor child, the restriction applies until
19.27the minor child becomes an adult and permanently moves away from the home or five
19.28years, whichever is less.
19.29(b) An applicant or controlling individual whose application was denied must not
19.30be granted a license for two years following a denial, unless the applicant's subsequent
19.31application contains new information which constitutes a substantial change in the
19.32conditions that caused the previous denial. The addition of a new co-applicant in a
19.33subsequent application does not constitute a substantial change. If an applicant or
19.34controlling individual whose application was denied is affiliated with a subsequent
20.1application, and two years have not passed since the denial, the subsequent application
20.2must be denied.

20.3    Sec. 13. Minnesota Statutes 2012, section 245A.146, subdivision 3, is amended to read:
20.4    Subd. 3. License holder documentation of cribs. (a) Annually, from the date
20.5printed on the license, all license holders shall check all their cribs' brand names and
20.6model numbers against the United States Consumer Product Safety Commission Web
20.7site listing of unsafe cribs.
20.8(b) The license holder shall maintain written documentation to be reviewed on site
20.9for each crib showing that the review required in paragraph (a) has been completed, and
20.10which of the following conditions applies:
20.11(1) the crib was not identified as unsafe on the United States Consumer Product
20.12Safety Commission Web site;
20.13(2) the crib was identified as unsafe on the United States Consumer Product Safety
20.14Commission Web site, but the license holder has taken the action directed by the United
20.15States Consumer Product Safety Commission to make the crib safe; or
20.16(3) the crib was identified as unsafe on the United States Consumer Product Safety
20.17Commission Web site, and the license holder has removed the crib so that it is no longer
20.18used by or accessible to children in care.
20.19(c) Documentation of the review completed under this subdivision shall be
20.20maintained by the license holder on site and made available to parents or guardians of
20.21children in care and the commissioner.
20.22(d) Notwithstanding Minnesota Rules, part 9502.0425, a family child care provider
20.23that complies with this section may use a mesh-sided or fabric-sided play yard, pack
20.24and play, or playpen or crib that has not been identified as unsafe on the United States
20.25Consumer Product Safety Commission Web site for the care or sleeping of infants.
20.26(e) On at least a monthly basis, the family child care license holder shall perform
20.27safety inspections of every mesh-sided or fabric-sided play yard, pack and play, or playpen
20.28used by or that is accessible to any child in care, and must document the following:
20.29(1) there are no tears, holes, or loose or unraveling threads in mesh or fabric sides of
20.30crib;
20.31(2) the weave of the mesh on the crib is no larger than 1/4 of an inch;
20.32(3) no mesh fabric is unsecure or unattached to top rail and floor plate of crib;
20.33(4) no tears or holes to top rail of crib;
20.34(5) the mattress floor board is not soft and does not exceed one-inch thick;
20.35(6) the mattress floor board has no rips or tears in covering;
21.1(7) the mattress floor board in use is a waterproof original mattress or replacement
21.2mattress provided by the manufacturer of the crib;
21.3(8) there are no protruding or loose rivets, metal nuts, or bolts on the crib;
21.4(9) there are no knobs or wing nuts on outside crib legs;
21.5(10) there are no missing, loose, or exposed staples; and
21.6(11) the latches on top and side rails used to collapse crib are secure, they lock
21.7properly, and are not loose.

21.8    Sec. 14. Minnesota Statutes 2012, section 245A.146, subdivision 4, is amended to read:
21.9    Subd. 4. Crib safety standards and inspection. (a) On at least a monthly basis,
21.10the license holder shall perform safety inspections of every crib or portable crib of rigid
21.11construction including full size and non-full size cribs used by or that is accessible to any
21.12child in care, and must document the following:
21.13(1) no corner posts extend more than 1/16 of an inch;
21.14(2) no spaces between side slats exceed 2.375 inches;
21.15(3) no mattress supports can be easily dislodged from any point of the crib;
21.16(4) no cutout designs are present on end panels;
21.17(5) no heights of the rail and end panel are less than 26 inches when measured from
21.18the top of the rail or panel in the highest position to the top of the mattress support in
21.19its lowest position;
21.20(6) no heights of the rail and end panel are less than nine inches when measured
21.21from the top of the rail or panel in its lowest position to the top of the mattress support in
21.22its highest position;
21.23(7) (2) no screws, bolts, or hardware are loose or not secured, and there is no use
21.24of woodscrews in components that are designed to be assembled and disassembled by
21.25the crib owner;
21.26(8) (3) no sharp edges, points, or rough surfaces are present;
21.27(9) (4) no wood surfaces are rough, splintered, split, or cracked; and
21.28(10) no tears in mesh of fabric sides in non-full-size cribs;
21.29(11) no mattress pads in non-full-size mesh or fabric cribs exceed one inch; and
21.30(12) (5) no unacceptable gaps between the mattress and any sides of the crib are
21.31present as follows:
21.32(i) when the noncompressed mattress is centered in the non-full-size crib, at any of
21.33the adjustable mattress support positions, the gap between the perimeter of the mattress
21.34and the perimeter of the crib cannot be greater than one-half inch at any point. When the
22.1mattress is placed against the perimeter of the crib, the resulting gap cannot be greater
22.2than one inch at any point; and
22.3(ii) when the noncompressed mattress is centered in the full-size crib, at any of
22.4the adjustable mattress support positions, the gap between the perimeter of the mattress
22.5and the perimeter of the crib cannot be greater than 11/16 inch at any point. When the
22.6mattress is placed against the perimeter of the crib, the resulting gap cannot be greater
22.7than 1-3/8 inch at any point.
22.8(b) Upon discovery of any unsafe condition identified by the license holder during
22.9the safety inspection required under paragraph (a) or subdivision 3, paragraph (e), the
22.10license holder shall immediately remove the crib from use and ensure that the crib is not
22.11accessible to children in care, and as soon as practicable, but not more than two business
22.12days after the inspection, remove the crib from the area where child care services are
22.13routinely provided for necessary repairs or to destroy the crib.
22.14(c) Documentation of the inspections and actions taken with unsafe cribs required in
22.15paragraphs (a) and (b), and subdivision 3, paragraph (e), shall be maintained on site by the
22.16license holder and made available to parents of children in care and the commissioner.

22.17    Sec. 15. Minnesota Statutes 2012, section 245A.50, subdivision 4, is amended to read:
22.18    Subd. 4. Cardiopulmonary resuscitation. (a) When children are present in a
22.19family child care home governed by Minnesota Rules, parts 9502.0315 to 9502.0445, at
22.20least one staff person caregiver must be present in the home who has been trained in
22.21cardiopulmonary resuscitation (CPR), including CPR techniques for infants and children,
22.22 and in the treatment of obstructed airways. The CPR training must have been provided by
22.23an individual approved to provide CPR instruction, must be repeated at least once every
22.24three years, and must be documented in the staff person's records.
22.25    (b) A family child care provider is exempt from the CPR training requirement in
22.26this subdivision related to any substitute caregiver who provides less than 30 hours of
22.27care during any 12-month period.
22.28    (c) Video training reviewed and approved by the county licensing agency satisfies
22.29the training requirement of this subdivision.

22.30    Sec. 16. [245A.55] APPLICABILITY OF LAWS AND RULES TO A FAMILY
22.31CHILD CARE LICENSE HOLDER'S OWN CHILDREN.
22.32Any provision of statute or rule governing the care of a child in a licensed family
22.33child care program applies to the care of a child of any license holder, controlling
22.34individual, or caregiver when the child:
23.1(1) is ten years old or younger; and
23.2(2) is present in the licensed family child care home when the program is in operation.

23.3    Sec. 17. Minnesota Statutes 2012, section 245A.65, subdivision 1, is amended to read:
23.4    Subdivision 1. License holder requirements. All license holders serving vulnerable
23.5adults shall establish and enforce written policies and procedures related to suspected or
23.6alleged maltreatment, and shall orient clients and mandated reporters who are under
23.7the control of the license holder to these procedures, as defined in section 626.5572,
23.8subdivision 16 .
23.9    (a) License holders must establish policies and procedures allowing but not
23.10mandating the internal reporting of alleged or suspected maltreatment. License holders
23.11shall ensure that the policies and procedures on internal reporting:
23.12    (1) meet all the requirements identified for the optional internal reporting policies
23.13and procedures in section 626.557, subdivision 4a; and
23.14    (2) identify the primary and secondary person or position to whom internal reports
23.15may be made and the primary and secondary person or position responsible for forwarding
23.16internal reports to the common entry point as defined in section 626.5572, subdivision 5.
23.17The secondary person must be involved when there is reason to believe that the primary
23.18person was involved in the alleged or suspected maltreatment.
23.19    (b) The license holder shall:
23.20    (1) establish and maintain policies and procedures to ensure that an internal review
23.21is completed within 30 calendar days and that corrective action is taken as necessary to
23.22protect the health and safety of vulnerable adults when the facility has reason to know
23.23that an internal or external report of alleged or suspected maltreatment has been made.
23.24The review must include an evaluation of whether related policies and procedures were
23.25followed, whether the policies and procedures were adequate, whether there is a need for
23.26additional staff training, whether the reported event is similar to past events with the
23.27vulnerable adults or the services involved, and whether there is a need for corrective
23.28action by the license holder to protect the health and safety of vulnerable adults. Based on
23.29the results of this review, the license holder must develop, document, and implement a
23.30corrective action plan designed to correct current lapses and prevent future lapses in
23.31performance by individuals or the license holder, if any.
23.32    (2) identify the primary and secondary person or position who will ensure that, when
23.33required, internal reviews are completed. The secondary person shall be involved when
23.34there is reason to believe that the primary person was involved in the alleged or suspected
23.35maltreatment; and
24.1    (3) document and make internal reviews accessible to the commissioner immediately
24.2upon the commissioner's request. For the purposes of this section, the documentation
24.3provided to the commissioner by the license holder may consist of a completed checklist
24.4that verifies completion of each of the requirements of the review.
24.5    (c) The license holder shall provide an orientation to the internal and external
24.6reporting procedures to all persons receiving services. The orientation shall include the
24.7telephone number for the license holder's common entry point as defined in section
24.8626.5572, subdivision 5 . If applicable, the person's legal representative must be notified of
24.9the orientation. The program shall provide this orientation for each new person within 24
24.10hours of admission, or for persons who would benefit more from a later orientation, the
24.11orientation may take place within 72 hours.
24.12    (d) The license holder shall post a copy of the internal and external reporting policies
24.13and procedures, including the telephone number of the common entry point as defined
24.14in section 626.5572, subdivision 5, in a prominent location in the program and have it
24.15available upon request to mandated reporters, persons receiving services, and the person's
24.16legal representatives.

24.17    Sec. 18. Minnesota Statutes 2012, section 245A.66, subdivision 1, is amended to read:
24.18    Subdivision 1. Internal review. Except for family child care settings and foster care
24.19for children in the license holder's residence, license holders serving children shall:
24.20    (1) establish and maintain policies and procedures to ensure that an internal review
24.21is completed within 30 calendar days and that corrective action is taken if necessary to
24.22protect the health and safety of children in care when the facility has reason to know that
24.23an internal or external report of alleged or suspected maltreatment has been made. The
24.24review must include an evaluation of whether:
24.25    (i) related policies and procedures were followed;
24.26    (ii) the policies and procedures were adequate;
24.27    (iii) there is a need for additional staff training;
24.28    (iv) the reported event is similar to past events with the children or the services
24.29involved; and
24.30    (v) there is a need for corrective action by the license holder to protect the health and
24.31safety of children in care.
24.32    Based on the results of this review, the license holder must develop, document, and
24.33implement a corrective action plan designed to correct current lapses and prevent future
24.34lapses in performance by individuals or the license holder, if any;
25.1    (2) identify the primary and secondary person or position who will ensure that, when
25.2required, internal reviews are completed. The secondary person shall be involved when
25.3there is reason to believe that the primary person was involved in the alleged or suspected
25.4maltreatment; and
25.5    (3) document that the and make internal review has been completed and provide
25.6documentation showing the review was completed reviews accessible to the commissioner
25.7immediately upon the commissioner's request. For the purposes of this section, the
25.8documentation provided to the commissioner by the license holder may consist of a
25.9completed checklist that verifies completion of each of the requirements of the review.

25.10    Sec. 19. Minnesota Statutes 2012, section 245B.02, subdivision 10, is amended to read:
25.11    Subd. 10. Incident. "Incident" means an occurrence that affects the ordinary
25.12provision of services to a person and includes any of the following:
25.13(1) serious injury as determined by section 245.91, subdivision 6;
25.14(2) a consumer's death;
25.15(3) any medical emergency emergencies, unexpected serious illness illnesses, or
25.16significant unexpected changes in an illness or medical condition, or the mental health
25.17status of a person accidents that requires calling 911 or a mental health mobile crisis
25.18intervention team, require physician treatment, or hospitalization;
25.19(4) a consumer's unauthorized or unexplained absence;
25.20(5) any fires or other events that require the relocation of services for more than 24
25.21hours, or circumstances involving a law enforcement agency or fire department related to
25.22the health, safety, or supervision of a consumer;
25.23(6) physical aggression by a consumer against another consumer that causes
25.24physical pain, injury, or persistent emotional distress, including, but not limited to, hitting,
25.25slapping, kicking, scratching, pinching, biting, pushing, and spitting;
25.26(6) (7) any sexual activity between consumers involving force or coercion as defined
25.27under section 609.341, subdivisions 3 and 14; or
25.28(7) (8) a report of child or vulnerable adult maltreatment under section 626.556 or
25.29626.557 .

25.30    Sec. 20. Minnesota Statutes 2012, section 245B.04, is amended to read:
25.31245B.04 CONSUMER RIGHTS.
25.32    Subdivision 1. License holder's responsibility for consumers' rights. The license
25.33holder must:
26.1(1) provide the consumer or the consumer's legal representative a copy of the
26.2consumer's rights on the day that services are initiated and an explanation of the rights
26.3in subdivisions 2 and 3 within five working days of service initiation and annually
26.4thereafter. Reasonable accommodations shall be made by the license holder to provide
26.5this information in other formats as needed to facilitate understanding of the rights by the
26.6consumer and the consumer's legal representative, if any;
26.7(2) document the consumer's or the consumer's legal representative's receipt of a
26.8copy of the rights and an explanation of the rights; and
26.9(3) ensure the exercise and protection of the consumer's rights in the services
26.10provided by the license holder and authorized in the individual service plan.
26.11    Subd. 2. Service-related rights. A consumer's service-related rights include the
26.12right to:
26.13(1) refuse or terminate services and be informed of the consequences of refusing
26.14or terminating services;
26.15(2) know, in advance, limits to the services available from the license holder;
26.16(3) know conditions and terms governing the provision of services, including the
26.17license holder's policies and procedures those related to initiation and termination;
26.18(4) know what the charges are for services, regardless of who will be paying for the
26.19services, and be notified upon request of changes in those charges;
26.20(5) know, in advance, whether services are covered by insurance, government
26.21funding, or other sources, and be told of any charges the consumer or other private party
26.22may have to pay; and
26.23(6) receive licensed services from individuals who are competent and trained,
26.24who have professional certification or licensure, as required, and who meet additional
26.25qualifications identified in the individual service plan.
26.26    Subd. 3. Protection-related rights. (a) The consumer's protection-related rights
26.27include the right to:
26.28(1) have personal, financial, services, and medical information kept private, and
26.29be advised of the license holder's policies and procedures regarding disclosure of such
26.30information;
26.31(2) access records and recorded information about the person in accordance with
26.32applicable state and federal law, regulation, or rule;
26.33(3) be free from maltreatment;
26.34(4) be treated with courtesy and respect for the consumer's individuality, mode of
26.35communication, and culture, and receive respectful treatment of the consumer's property;
26.36(5) reasonable observance of cultural and ethnic practice and religion;
27.1(6) be free from bias and harassment regarding race, gender, age, disability,
27.2spirituality, and sexual orientation;
27.3(7) be informed of and use the license holder's grievance policy and procedures,
27.4including knowing how to contact persons responsible for addressing problems and to
27.5appeal under section 256.045;
27.6(8) know the name, telephone number, and the Web site, e-mail, and street
27.7addresses of protection and advocacy services, including the appropriate state-appointed
27.8ombudsman, and a brief description of how to file a complaint with these offices;
27.9(9) voice grievances, know the contact persons responsible for addressing problems
27.10and how to contact those persons;
27.11(10) (6) any procedures for grievance or complaint resolution and the right to appeal
27.12under section 256.045;
27.13(11) (7) know the name and address of the state, county, or advocacy agency to
27.14contact for additional information or assistance;
27.15(12) (8) assert these rights personally, or have them asserted by the consumer's
27.16family or legal representative, without retaliation;
27.17(13) (9) give or withhold written informed consent to participate in any research or
27.18experimental treatment;
27.19(14) (10) have daily, private access to and use of a non-coin-operated telephone for
27.20local calls and long-distance calls made collect or paid for by the resident;
27.21(15) (11) receive and send, without interference, uncensored, unopened mail or
27.22electronic correspondence or communication;
27.23(16) (12) marital privacy for visits with the consumer's spouse and, if both are
27.24residents of the site, the right to share a bedroom and bed;
27.25(17) (13) associate with other persons of the consumer's choice;
27.26(18) (14) personal privacy; and
27.27(19) (15) engage in chosen activities.
27.28(b) Restriction of a person's rights under paragraph (a), clauses (13) to (15), or
27.29this paragraph is allowed only if determined necessary to ensure the health, safety, and
27.30well-being of the person. Any restriction of these rights must be documented in the service
27.31plan for the person and must include the following information:
27.32(1) the justification for the restriction based on an assessment of the person's
27.33vulnerability related to exercising the right without restriction;
27.34(2) the objective measures set as conditions for ending the restriction;
27.35(3) a schedule for reviewing the need for the restriction based on the conditions for
27.36ending the restriction to occur, at a minimum, every three months for persons who do not
28.1have a legal representative and annually for persons who do have a legal representative
28.2from the date of initial approval; and
28.3(4) signed and dated approval for the restriction from the person, or the person's
28.4legal representative, if any. A restriction may be implemented only when the required
28.5approval has been obtained. Approval may be withdrawn at any time. If approval is
28.6withdrawn, the right must be immediately and fully restored.

28.7    Sec. 21. Minnesota Statutes 2012, section 245B.05, subdivision 1, is amended to read:
28.8    Subdivision 1. Environment. The license holder must:
28.9(1) ensure that services are provided in a safe and hazard-free environment when the
28.10license holder is the owner, lessor, or tenant of the service site. All other license holders
28.11shall inform the consumer or the consumer's legal representative and case manager about
28.12any environmental safety concerns in writing;
28.13(2) ensure that doors are locked or toxic substances or dangerous items normally
28.14accessible to persons served by the program are stored in locked cabinets, drawers, or
28.15containers lock doors only to protect the safety of consumers and not as a substitute for
28.16staff supervision or interactions with consumers. If doors are locked or toxic substances
28.17or dangerous items normally accessible to persons served by the program are stored in
28.18locked cabinets, drawers, or containers, the license holder must justify and document
28.19how this determination was made in consultation with the person or the person's legal
28.20representative and how access will otherwise be provided to the person and all other
28.21affected persons receiving services;
28.22(3) follow procedures that minimize the consumer's health risk from communicable
28.23diseases; and
28.24(4) maintain equipment, vehicles, supplies, and materials owned or leased by the
28.25license holder in good condition.

28.26    Sec. 22. Minnesota Statutes 2012, section 245B.05, subdivision 7, is amended to read:
28.27    Subd. 7. Reporting incidents. (a) The license holder must maintain information
28.28about and report incidents under section 245B.02, subdivision 10, clauses (1) to (7) (8), to
28.29the consumer's legal representative, other licensed caregiver, if any, and case manager
28.30within 24 hours of the occurrence, or within 24 hours of receipt of the information unless
28.31the incident has been reported by another license holder. An incident under section
28.32245B.02, subdivision 10 , clause (8), must be reported as required under paragraph (c)
28.33unless the incident has been reported by another license holder.
29.1(b) When the incident involves more than one consumer, the license holder must
29.2not disclose personally identifiable information about any other consumer when making
29.3the report to each consumer's legal representative, other licensed caregiver, if any, and
29.4case manager unless the license holder has the consent of a consumer or a consumer's
29.5legal representative.
29.6(c) Within 24 hours of reporting maltreatment as required under section 626.556
29.7or 626.557, the license holder must inform the consumer's legal representative and case
29.8manager of the report unless there is reason to believe that the legal representative or case
29.9manager is involved in the suspected maltreatment. The information the license holder
29.10must disclose is the nature of the activity or occurrence reported, the agency that receives
29.11the report, and the telephone number of the Department of Human Services Licensing
29.12Division.
29.13(d) Except as provided in paragraph (e), death or serious injury of the consumer
29.14must also be reported to the Department of Human Services Licensing Division and the
29.15ombudsman, as required under sections 245.91 and 245.94, subdivision 2a.
29.16(e) When a death or serious injury occurs in a facility certified as an intermediate
29.17care facility for persons with developmental disabilities, the death or serious injury must
29.18be reported to the Department of Health, Office of Health Facility Complaints, and the
29.19ombudsman, as required under sections 245.91 and 245.94, subdivision 2a.

29.20    Sec. 23. Minnesota Statutes 2012, section 245B.07, subdivision 5, is amended to read:
29.21    Subd. 5. Staff orientation. (a) Within 60 days of hiring staff who provide direct
29.22service, the license holder must provide 30 hours of staff orientation. Direct care staff
29.23must complete 15 of the 30 hours orientation before providing any unsupervised direct
29.24service to a consumer. If the staff person has received orientation training from a license
29.25holder licensed under this chapter, or provides semi-independent living services only, the
29.2615-hour requirement may be reduced to eight hours. The total orientation of 30 hours may
29.27be reduced to 15 hours if the staff person has previously received orientation training from
29.28a license holder licensed under this chapter.
29.29(b) The 30 hours of orientation must combine supervised on-the-job training with
29.30review coverage of and instruction on the following material:
29.31(1) review of the consumer's service plans and risk management plan to achieve an
29.32understanding of the consumer as a unique individual and staff responsibilities related to
29.33implementation of those plans;
29.34(2) review and instruction on implementation of the license holder's policies and
29.35procedures, including their location and access;
30.1(3) staff responsibilities related to emergency procedures;
30.2(4) explanation of specific job functions, including implementing objectives from
30.3the consumer's individual service plan;
30.4(5) explanation of responsibilities related to section 245A.65; sections 626.556
30.5and 626.557, governing maltreatment reporting and service planning for children and
30.6vulnerable adults; and section 245.825, governing use of aversive and deprivation
30.7procedures;
30.8(6) medication administration as it applies to the individual consumer, from a
30.9training curriculum developed by a health services professional described in section
30.10245B.05, subdivision 5 , and when the consumer meets the criteria of having overriding
30.11health care needs, then medication administration taught by a health services professional.
30.12Staff may administer medications only after they demonstrate the ability, as defined in the
30.13license holder's medication administration policy and procedures. Once a consumer with
30.14overriding health care needs is admitted, staff will be provided with remedial training as
30.15deemed necessary by the license holder and the health professional to meet the needs of
30.16that consumer.
30.17For purposes of this section, overriding health care needs means a health care
30.18condition that affects the service options available to the consumer because the condition
30.19requires:
30.20(i) specialized or intensive medical or nursing supervision; and
30.21(ii) nonmedical service providers to adapt their services to accommodate the health
30.22and safety needs of the consumer;
30.23(7) consumer rights and staff responsibilities related to protecting and ensuring
30.24the exercise of the consumer rights; and
30.25(8) other topics necessary as determined by the consumer's individual service plan or
30.26other areas identified by the license holder.
30.27(c) The license holder must document each employee's orientation received.

30.28    Sec. 24. Minnesota Statutes 2012, section 245B.07, subdivision 9, is amended to read:
30.29    Subd. 9. Availability of current written policies and procedures. The license
30.30holder shall:
30.31(1) review and update, as needed, the written policies and procedures in this chapter;
30.32(2) inform consumers or the consumer's legal representatives of the written policies
30.33and procedures in this chapter upon service initiation. Copies of policies and procedures
30.34affecting a consumer's rights under section 245D.04 must be provided upon service
30.35initiation. Copies of all other policies and procedures must be available to consumers
31.1or the consumer's legal representatives, case managers, the county where services are
31.2located, and the commissioner upon request;
31.3(3) provide all consumers or the consumers' legal representatives and case managers
31.4a copy of the revised policies and procedures and explanation of the revisions to policies
31.5and procedures that affect consumers' service-related or protection-related rights under
31.6section 245B.04 and maltreatment reporting policies and procedures. Unless there is
31.7reasonable cause, the license holder must provide this notice at least 30 days before
31.8implementing the revised policy and procedure. The license holder must document the
31.9reason for not providing the notice at least 30 days before implementing the revisions;
31.10(4) annually notify all consumers or the consumers' legal representatives and case
31.11managers of any revised policies and procedures under this chapter, other than those in
31.12clause (3). Upon request, the license holder must provide the consumer or consumer's
31.13legal representative and case manager copies of the revised policies and procedures;
31.14(5) before implementing revisions to policies and procedures under this chapter,
31.15inform all employees of the revisions and provide training on implementation of the
31.16 revised policies and procedures; and
31.17(6) document and maintain relevant information related to the policies and
31.18procedures in this chapter.

31.19    Sec. 25. Minnesota Statutes 2012, section 245B.07, subdivision 10, is amended to read:
31.20    Subd. 10. Consumer funds. (a) The license holder must ensure that consumers
31.21retain the use and availability of personal funds or property unless restrictions are justified
31.22in the consumer's individual service plan.
31.23(b) The license holder must ensure separation of consumer funds from funds of the
31.24license holder, the program, or program staff.
31.25(c) Whenever the license holder assists a consumer with the safekeeping of funds
31.26or other property, the license holder must have written authorization to do so by the
31.27consumer or the consumer's legal representative, and the case manager. In addition, the
31.28license holder must:
31.29(1) document receipt and disbursement of the consumer's funds or the property;
31.30(2) annually survey, document, and implement the preferences of the consumer,
31.31consumer's legal representative, and the case manager for frequency of receiving a
31.32statement that itemizes receipts and disbursements of consumer funds or other property; and
31.33(3) return to the consumer upon the consumer's request, funds and property in the
31.34license holder's possession subject to restrictions in the consumer's individual service plan,
31.35as soon as possible, but no later than three working days after the date of the request.
32.1(d) License holders and program staff must not:
32.2(1) borrow money from a consumer;
32.3(2) purchase personal items from a consumer;
32.4(3) sell merchandise or personal services to a consumer;
32.5(4) require a consumer to purchase items for which the license holder is eligible for
32.6reimbursement; or
32.7(5) use consumer funds in a manner that would violate section 256B.04, or any
32.8rules promulgated under that section; or.
32.9(6) accept powers-of-attorney from a person receiving services from the license
32.10holder for any purpose, and may not accept an appointment as guardian or conservator of
32.11a person receiving services from the license holder. This does not apply to license holders
32.12that are Minnesota counties or other units of government.

32.13    Sec. 26. REPEALER.
32.14Minnesota Statutes 2012, sections 245B.02, subdivision 8a; and 245B.07,
32.15subdivision 7a, are repealed.


32.18    Section 1. Minnesota Statutes 2012, section 168.012, subdivision 1, is amended to read:
32.19    Subdivision 1. Vehicles exempt from tax, fees, or plate display. (a) The following
32.20vehicles are exempt from the provisions of this chapter requiring payment of tax and
32.21registration fees, except as provided in subdivision 1c:
32.22    (1) vehicles owned and used solely in the transaction of official business by the
32.23federal government, the state, or any political subdivision;
32.24    (2) vehicles owned and used exclusively by educational institutions and used solely
32.25in the transportation of pupils to and from those institutions;
32.26    (3) vehicles used solely in driver education programs at nonpublic high schools;
32.27    (4) vehicles owned by nonprofit charities and used exclusively to transport disabled
32.28persons for charitable, religious, or educational purposes;
32.29    (5) vehicles owned by nonprofit charities and used exclusively for disaster response
32.30and related activities;
32.31    (6) vehicles owned by ambulance services licensed under section 144E.10 that
32.32are equipped and specifically intended for emergency response or providing ambulance
32.33services; and
33.1    (7) vehicles owned by a commercial driving school licensed under section 171.34,
33.2or an employee of a commercial driving school licensed under section 171.34, and the
33.3vehicle is used exclusively for driver education and training.
33.4    (b) Provided the general appearance of the vehicle is unmistakable, the following
33.5vehicles are not required to register or display number plates:
33.6(1) vehicles owned by the federal government;
33.7(2) fire apparatuses, including fire-suppression support vehicles, owned or leased by
33.8the state or a political subdivision;
33.9(3) police patrols owned or leased by the state or a political subdivision; and
33.10(4) ambulances owned or leased by the state or a political subdivision.
33.11    (c) Unmarked vehicles used in general police work, liquor investigations, or arson
33.12investigations, and passenger automobiles, pickup trucks, and buses owned or operated by
33.13the Department of Corrections or by conservation officers of the Division of Enforcement
33.14and Field Service of the Department of Natural Resources, must be registered and must
33.15display appropriate license number plates, furnished by the registrar at cost. Original and
33.16renewal applications for these license plates authorized for use in general police work and
33.17for use by the Department of Corrections or by conservation officers must be accompanied
33.18by a certification signed by the appropriate chief of police if issued to a police vehicle,
33.19the appropriate sheriff if issued to a sheriff's vehicle, the commissioner of corrections if
33.20issued to a Department of Corrections vehicle, or the appropriate officer in charge if
33.21issued to a vehicle of any other law enforcement agency. The certification must be on a
33.22form prescribed by the commissioner and state that the vehicle will be used exclusively
33.23for a purpose authorized by this section.
33.24    (d) Unmarked vehicles used by the Departments of Revenue and Labor and Industry,
33.25fraud unit, in conducting seizures or criminal investigations must be registered and must
33.26display passenger vehicle classification license number plates, furnished at cost by the
33.27registrar. Original and renewal applications for these passenger vehicle license plates
33.28must be accompanied by a certification signed by the commissioner of revenue or the
33.29commissioner of labor and industry. The certification must be on a form prescribed by
33.30the commissioner and state that the vehicles will be used exclusively for the purposes
33.31authorized by this section.
33.32    (e) Unmarked vehicles used by the Division of Disease Prevention and Control of the
33.33Department of Health must be registered and must display passenger vehicle classification
33.34license number plates. These plates must be furnished at cost by the registrar. Original
33.35and renewal applications for these passenger vehicle license plates must be accompanied
33.36by a certification signed by the commissioner of health. The certification must be on a
34.1form prescribed by the commissioner and state that the vehicles will be used exclusively
34.2for the official duties of the Division of Disease Prevention and Control.
34.3    (f) Unmarked vehicles used by staff of the Gambling Control Board in gambling
34.4investigations and reviews must be registered and must display passenger vehicle
34.5classification license number plates. These plates must be furnished at cost by the
34.6registrar. Original and renewal applications for these passenger vehicle license plates must
34.7be accompanied by a certification signed by the board chair. The certification must be on a
34.8form prescribed by the commissioner and state that the vehicles will be used exclusively
34.9for the official duties of the Gambling Control Board.
34.10    (g) Unmarked vehicles used in general investigation, surveillance, supervision, and
34.11monitoring by the staff of the Department of Human Services Services' Office of Special
34.12Investigations and the executive director of Investigations' staff; the Minnesota sex
34.13offender program program's executive director and the executive director's staff; and the
34.14Office of Inspector General's staff, including, but not limited to, county fraud prevention
34.15investigators, must be registered and must display passenger vehicle classification license
34.16number plates, furnished by the registrar at cost. Original and renewal applications for
34.17passenger vehicle license plates must be accompanied by a certification signed by the
34.18commissioner of human services. The certification must be on a form prescribed by the
34.19commissioner and state that the vehicles must be used exclusively for the official duties of
34.20the Office of Special Investigations and Investigations' staff; the executive director of the
34.21 Minnesota sex offender program program's executive director and the executive director's
34.22staff; and the Office of the Inspector General's staff, including, but not limited to, contract
34.23and county fraud prevention investigators.
34.24(h) Each state hospital and institution for persons who are mentally ill and
34.25developmentally disabled may have one vehicle without the required identification on
34.26the sides of the vehicle. The vehicle must be registered and must display passenger
34.27vehicle classification license number plates. These plates must be furnished at cost by the
34.28registrar. Original and renewal applications for these passenger vehicle license plates must
34.29be accompanied by a certification signed by the hospital administrator. The certification
34.30must be on a form prescribed by the commissioner and state that the vehicles will be used
34.31exclusively for the official duties of the state hospital or institution.
34.32    (i) Each county social service agency may have vehicles used for child and
34.33vulnerable adult protective services without the required identification on the sides of the
34.34vehicle. The vehicles must be registered and must display passenger vehicle classification
34.35license number plates. These plates must be furnished at cost by the registrar. Original
34.36and renewal applications for these passenger vehicle license plates must be accompanied
35.1by a certification signed by the agency administrator. The certification must be on a form
35.2prescribed by the commissioner and state that the vehicles will be used exclusively for the
35.3official duties of the social service agency.
35.4    (j) All other motor vehicles must be registered and display tax-exempt number
35.5plates, furnished by the registrar at cost, except as provided in subdivision 1c. All
35.6vehicles required to display tax-exempt number plates must have the name of the state
35.7department or political subdivision, nonpublic high school operating a driver education
35.8program, licensed commercial driving school, or other qualifying organization or entity,
35.9plainly displayed on both sides of the vehicle. This identification must be in a color
35.10giving contrast with that of the part of the vehicle on which it is placed and must endure
35.11throughout the term of the registration. The identification must not be on a removable
35.12plate or placard and must be kept clean and visible at all times; except that a removable
35.13plate or placard may be utilized on vehicles leased or loaned to a political subdivision or
35.14to a nonpublic high school driver education program.

35.15    Sec. 2. Minnesota Statutes 2012, section 256.01, subdivision 18d, is amended to read:
35.16    Subd. 18d. Data sharing with the Department of Human Services; multiple
35.17identification cards. (a) The commissioner of public safety shall, on a monthly basis,
35.18provide the commissioner of human services with the first, middle, and last name, and
35.19 the address, date of birth, and driver's license or state identification card number, and
35.20all photographs or electronically produced images of all applicants and holders whose
35.21drivers' licenses and state identification cards have been canceled under section 171.14,
35.22paragraph (a), clause (2) or (3), by the commissioner of public safety. After the initial data
35.23report has been provided by the commissioner of public safety to the commissioner of
35.24human services under this paragraph, subsequent reports shall only include cancellations
35.25that occurred after the end date of the cancellations represented in the previous data report.
35.26(b) The commissioner of human services shall compare the information provided
35.27under paragraph (a) with the commissioner's data regarding recipients of all public
35.28assistance programs managed by the Department of Human Services to determine whether
35.29any individual with multiple identification cards issued by the Department of Public
35.30Safety has illegally or improperly enrolled in any public assistance program managed by
35.31the Department of Human Services.
35.32(c) If the commissioner of human services determines that an applicant or recipient
35.33has illegally or improperly enrolled in any public assistance program, the commissioner
35.34shall provide all due process protections to the individual before terminating the individual
35.35from the program according to applicable statute and notifying the county attorney.
36.1EFFECTIVE DATE.This section is effective July 1, 2013.

36.2    Sec. 3. Minnesota Statutes 2012, section 268.19, subdivision 1, is amended to read:
36.3    Subdivision 1. Use of data. (a) Except as provided by this section, data gathered
36.4from any person under the administration of the Minnesota Unemployment Insurance Law
36.5are private data on individuals or nonpublic data not on individuals as defined in section
36.613.02 , subdivisions 9 and 12, and may not be disclosed except according to a district court
36.7order or section 13.05. A subpoena is not considered a district court order. These data
36.8may be disseminated to and used by the following agencies without the consent of the
36.9subject of the data:
36.10    (1) state and federal agencies specifically authorized access to the data by state
36.11or federal law;
36.12    (2) any agency of any other state or any federal agency charged with the
36.13administration of an unemployment insurance program;
36.14    (3) any agency responsible for the maintenance of a system of public employment
36.15offices for the purpose of assisting individuals in obtaining employment;
36.16    (4) the public authority responsible for child support in Minnesota or any other
36.17state in accordance with section 256.978;
36.18    (5) human rights agencies within Minnesota that have enforcement powers;
36.19    (6) the Department of Revenue to the extent necessary for its duties under Minnesota
36.20laws;
36.21    (7) public and private agencies responsible for administering publicly financed
36.22assistance programs for the purpose of monitoring the eligibility of the program's recipients;
36.23    (8) the Department of Labor and Industry and the Division of Insurance Fraud
36.24Prevention in the Department of Commerce for uses consistent with the administration of
36.25their duties under Minnesota law;
36.26(9) the Department of Human Services and the Office of Inspector General and its
36.27agents within the Department of Human Services, including county fraud investigators,
36.28for investigations related to recipient or provider fraud and employees of providers when
36.29the provider is suspected of committing public assistance fraud;
36.30    (9) (10) local and state welfare agencies for monitoring the eligibility of the data
36.31subject for assistance programs, or for any employment or training program administered
36.32by those agencies, whether alone, in combination with another welfare agency, or in
36.33conjunction with the department or to monitor and evaluate the statewide Minnesota
36.34family investment program by providing data on recipients and former recipients of food
37.1stamps or food support, cash assistance under chapter 256, 256D, 256J, or 256K, child care
37.2assistance under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;
37.3    (10) (11) local and state welfare agencies for the purpose of identifying employment,
37.4wages, and other information to assist in the collection of an overpayment debt in an
37.5assistance program;
37.6    (11) (12) local, state, and federal law enforcement agencies for the purpose of
37.7ascertaining the last known address and employment location of an individual who is the
37.8subject of a criminal investigation;
37.9    (12) (13) the United States Immigration and Customs Enforcement has access to
37.10data on specific individuals and specific employers provided the specific individual or
37.11specific employer is the subject of an investigation by that agency;
37.12    (13) (14) the Department of Health for the purposes of epidemiologic investigations;
37.13    (14) (15) the Department of Corrections for the purpose of preconfinement and
37.14postconfinement employment tracking of committed offenders for the purpose of case
37.15planning; and
37.16    (15) (16) the state auditor to the extent necessary to conduct audits of job opportunity
37.17building zones as required under section 469.3201.
37.18    (b) Data on individuals and employers that are collected, maintained, or used by
37.19the department in an investigation under section 268.182 are confidential as to data
37.20on individuals and protected nonpublic data not on individuals as defined in section
37.2113.02 , subdivisions 3 and 13, and must not be disclosed except under statute or district
37.22court order or to a party named in a criminal proceeding, administrative or judicial, for
37.23preparation of a defense.
37.24    (c) Data gathered by the department in the administration of the Minnesota
37.25unemployment insurance program must not be made the subject or the basis for any
37.26suit in any civil proceedings, administrative or judicial, unless the action is initiated by
37.27the department.
37.28EFFECTIVE DATE.This section is effective the day following final enactment.

37.29    Sec. 4. Minnesota Statutes 2012, section 471.346, is amended to read:
37.30471.346 PUBLICLY OWNED AND LEASED VEHICLES IDENTIFIED.
37.31All motor vehicles owned or leased by a statutory or home rule charter city, county,
37.32town, school district, metropolitan or regional agency, or other political subdivision, except
37.33for unmarked vehicles used in general police and fire work and, arson investigations,
37.34 and Department of Human Services investigations including county fraud prevention
38.1investigations, shall have the name of the political subdivision plainly displayed on both
38.2sides of the vehicle in letters not less than 2-1/2 inches high and one-half inch wide. The
38.3identification must be in a color that contrasts with the color of the part of the vehicle on
38.4which it is placed and must remain on and be clean and visible throughout the period of
38.5which the vehicle is owned or leased by the political subdivision. The identification must
38.6not be on a removable plate or placard except on leased vehicles but the plate or placard
38.7must not be removed from a leased vehicle at any time during the term of the lease.


38.10    Section 1. Minnesota Statutes 2012, section 254B.05, subdivision 5, is amended to read:
38.11    Subd. 5. Rate requirements. (a) The commissioner shall establish rates for
38.12chemical dependency services and service enhancements funded under this chapter.
38.13(b) Eligible chemical dependency treatment services include:
38.14(1) outpatient treatment services that are licensed according to Minnesota Rules,
38.15parts 9530.6405 to 9530.6480, or applicable tribal license;
38.16(2) medication-assisted therapy services that are licensed according to Minnesota
38.17Rules, parts 9530.6405 to 9530.6480 and 9530.6500, or applicable tribal license;
38.18(3) medication-assisted therapy plus enhanced treatment services that meet the
38.19requirements of clause (2) and provide nine hours of clinical services each week;
38.20(4) high, medium, and low intensity residential treatment services that are licensed
38.21according to Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6505, or applicable
38.22tribal license which provide, respectively, 30, 15, and five hours of clinical services each
38.23week;
38.24(5) hospital-based treatment services that are licensed according to Minnesota Rules,
38.25parts 9530.6405 to 9530.6480, or applicable tribal license and licensed as a hospital under
38.26sections 144.50 to 144.56;
38.27(6) adolescent treatment programs that are licensed as outpatient treatment programs
38.28according to Minnesota Rules, parts 9530.6405 to 9530.6485, or as residential treatment
38.29programs according to Minnesota Rules, chapter 2960 parts 2960.0010 to 2960.0220, and
38.302960.0430 to 2960.0490, or applicable tribal license; and
38.31(7) room and board facilities that meet the requirements of section 254B.05,
38.32subdivision 1a.
38.33(c) The commissioner shall establish higher rates for programs that meet the
38.34requirements of paragraph (b) and the following additional requirements:
38.35(1) programs that serve parents with their children if the program:
39.1(i) provides on-site child care during hours of treatment activity that meets the
39.2additional licensing requirement requirements in Minnesota Rules, part 9530.6490, and
39.3provides child care that meets the requirements of or section 245A.03, subdivision 2,
39.4during hours of treatment activity; or
39.5(ii) arranges for off-site child care during hours of treatment activity at a facility that
39.6is licensed under chapter 245A as:
39.7(A) a child care center under Minnesota Rules, chapter 9503; or
39.8(B) a family child care home under Minnesota Rules, chapter 9502;
39.9(2) programs serving special populations if the program meets the requirements in
39.10Minnesota Rules, part 9530.6605, subpart 13;
39.11(3) programs that offer medical services delivered by appropriately credentialed
39.12health care staff in an amount equal to two hours per client per week if the medical
39.13needs of the client and the nature and provision of any medical services provided are
39.14documented in the client file; and
39.15(4) programs that offer services to individuals with co-occurring mental health and
39.16chemical dependency problems if:
39.17(i) the program meets the co-occurring requirements in Minnesota Rules, part
39.189530.6495;
39.19(ii) 25 percent of the counseling staff are licensed mental health professionals, as
39.20defined in section 245.462, subdivision 18, clauses (1) to (6), or are students or licensing
39.21candidates under the supervision of a licensed alcohol and drug counselor supervisor and
39.22licensed mental health professional, except that no more than 50 percent of the mental
39.23health staff may be students or licensing candidates with time documented to be directly
39.24related to provisions of co-occurring services;
39.25(iii) clients scoring positive on a standardized mental health screen receive a mental
39.26health diagnostic assessment within ten days of admission;
39.27(iv) the program has standards for multidisciplinary case review that include a
39.28monthly review for each client that, at a minimum, includes a licensed mental health
39.29professional and licensed alcohol and drug counselor, and their involvement in the review
39.30is documented;
39.31(v) family education is offered that addresses mental health and substance abuse
39.32disorders and the interaction between the two; and
39.33(vi) co-occurring counseling staff will receive eight hours of co-occurring disorder
39.34training annually.
39.35(d) In order to be eligible for a higher rate under paragraph (c), clause (1), a program
39.36that provides arrangements for off-site child care must maintain current documentation at
40.1the chemical dependency facility of the child care provider's current licensure to provide
40.2child care services. Programs that provide child care according to paragraph (c), clause
40.3(1), must be deemed in compliance with the licensing requirements in Minnesota Rules,
40.4part 9530.6490.
40.5(e) Adolescent residential programs that meet the requirements of Minnesota Rules,
40.6parts 2960.0580 to 2960.0700 2960.0430 to 2960.0490 and 2960.0580 to 2960.0690, are
40.7exempt from the requirements in paragraph (c), clause (4), items (i) to (iv).


40.10    Section 1. Minnesota Statutes 2012, section 245C.04, is amended to read:
40.11245C.04 WHEN BACKGROUND STUDY MUST OCCUR.
40.12    Subdivision 1. Licensed programs. (a) The commissioner shall conduct a
40.13background study of an individual required to be studied under section 245C.03,
40.14subdivision 1 , at least upon application for initial license for all license types.
40.15    (b) The commissioner shall conduct a background study of an individual required
40.16to be studied under section 245C.03, subdivision 1, at reapplication for a license for
40.17family child care.
40.18    (c) The commissioner is not required to conduct a study of an individual at the time
40.19of reapplication for a license if the individual's background study was completed by the
40.20commissioner of human services for an adult foster care license holder that is also:
40.21    (1) registered under chapter 144D; or
40.22    (2) licensed to provide home and community-based services to people with
40.23disabilities at the foster care location and the license holder does not reside in the foster
40.24care residence; and
40.25    (3) the following conditions are met:
40.26    (i) a study of the individual was conducted either at the time of initial licensure or
40.27when the individual became affiliated with the license holder;
40.28    (ii) the individual has been continuously affiliated with the license holder since
40.29the last study was conducted; and
40.30    (iii) the last study of the individual was conducted on or after October 1, 1995.
40.31    (d) From July 1, 2007, to June 30, 2009, the commissioner of human services shall
40.32conduct a study of an individual required to be studied under section 245C.03, at the
40.33time of reapplication for a child foster care license. The county or private agency shall
40.34collect and forward to the commissioner the information required under section 245C.05,
41.1subdivisions 1, paragraphs (a) and (b), and 5, paragraphs (a) and (b). The background
41.2study conducted by the commissioner of human services under this paragraph must
41.3include a review of the information required under section 245C.08, subdivisions 1,
41.4paragraph (a), clauses (1) to (5), 3, and 4.
41.5    (e) The commissioner of human services shall conduct a background study of an
41.6individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2)
41.7to (6), who is newly affiliated with a child foster care license holder. The county or
41.8private agency shall collect and forward to the commissioner the information required
41.9under section 245C.05, subdivisions 1 and 5. The background study conducted by the
41.10commissioner of human services under this paragraph must include a review of the
41.11information required under section 245C.08, subdivisions 1, 3, and 4.
41.12    (f) From January 1, 2010, to December 31, 2012, unless otherwise specified in
41.13paragraph (c), the commissioner shall conduct a study of an individual required to
41.14be studied under section 245C.03 at the time of reapplication for an adult foster care
41.15or family adult day services license: (1) the county shall collect and forward to the
41.16commissioner the information required under section 245C.05, subdivision 1, paragraphs
41.17(a) and (b), and subdivision 5, paragraphs (a) and (b), for background studies conducted
41.18by the commissioner for all family adult day services and for adult foster care when
41.19the adult foster care license holder resides in the adult foster care or family adult day
41.20services residence; (2) the license holder shall collect and forward to the commissioner
41.21the information required under section 245C.05, subdivisions 1, paragraphs (a) and (b);
41.22and 5, paragraphs (a) and (b), for background studies conducted by the commissioner for
41.23adult foster care when the license holder does not reside in the adult foster care residence;
41.24and (3) the background study conducted by the commissioner under this paragraph must
41.25include a review of the information required under section 245C.08, subdivision 1,
41.26paragraph (a), clauses (1) to (5), and subdivisions 3 and 4.
41.27(g) The commissioner shall conduct a background study of an individual specified
41.28under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly
41.29affiliated with an adult foster care or family adult day services license holder: (1) the
41.30county shall collect and forward to the commissioner the information required under
41.31section 245C.05, subdivision 1, paragraphs (a) and (b), and subdivision 5, paragraphs (a)
41.32and (b), for background studies conducted by the commissioner for all family adult day
41.33services and for adult foster care when the adult foster care license holder resides in
41.34the adult foster care residence; (2) the license holder shall collect and forward to the
41.35commissioner the information required under section 245C.05, subdivisions 1, paragraphs
41.36(a) and (b); and 5, paragraphs (a) and (b), for background studies conducted by the
42.1commissioner for adult foster care when the license holder does not reside in the adult
42.2foster care residence; and (3) the background study conducted by the commissioner under
42.3this paragraph must include a review of the information required under section 245C.08,
42.4subdivision 1 , paragraph (a), and subdivisions 3 and 4.
42.5(h) Applicants for licensure, license holders, and other entities as provided in this
42.6chapter must submit completed background study forms requests to the commissioner
42.7using the electronic system known as NETStudy before individuals specified in section
42.8245C.03, subdivision 1 , begin positions allowing direct contact in any licensed program.
42.9    (i) A license holder must initiate a new background study through the commissioner's
42.10online background study system NETStudy when:
42.11    (1) an individual returns to a position requiring a background study following an
42.12absence of 90 120 or more consecutive days; or
42.13    (2) a program that discontinued providing licensed direct contact services for 90 120
42.14 or more consecutive days begins to provide direct contact licensed services again.
42.15    The license holder shall maintain a copy of the notification provided to
42.16the commissioner under this paragraph in the program's files. If the individual's
42.17disqualification was previously set aside for the license holder's program and the new
42.18background study results in no new information that indicates the individual may pose a
42.19risk of harm to persons receiving services from the license holder, the previous set-aside
42.20shall remain in effect.
42.21    (j) For purposes of this section, a physician licensed under chapter 147 is considered
42.22to be continuously affiliated upon the license holder's receipt from the commissioner of
42.23health or human services of the physician's background study results.
42.24(k) For purposes of family child care, a substitute caregiver must receive repeat
42.25background studies at the time of each license renewal.
42.26    Subd. 2. Other state agencies. Applicants and license holders under the jurisdiction
42.27of other state agencies who are required in other statutory sections to initiate background
42.28studies under this chapter must submit completed background study forms to the
42.29commissioner before the background study subject begins in a position allowing direct
42.30contact in the licensed program or, where applicable, prior to being employed.
42.31    Subd. 3. Personal care provider organizations. (a) The commissioner shall
42.32conduct a background study of an individual required to be studied under section 245C.03,
42.33subdivision 2 , at least upon application for initial enrollment under sections 256B.0651 to
42.34256B.0656 and 256B.0659.
42.35(b) Organizations required to initiate background studies under sections 256B.0651
42.36to 256B.0656 and 256B.0659 for individuals described in section 245C.03, subdivision 2,
43.1must submit a completed background study form request to the commissioner using the
43.2electronic system known as NETStudy before those individuals begin a position allowing
43.3direct contact with persons served by the organization.
43.4(c) Organizations required to initiate background studies under sections 256B.0651
43.5to 256B.0656 and 256B.0659 for individuals described in section 245C.03, subdivision 2,
43.6must initiate a new background study through NETStudy when an individual returns to a
43.7position requiring a background study following an absence of 120 or more consecutive
43.8days.
43.9    Subd. 4. Supplemental nursing services agencies. (a) The commissioner shall
43.10conduct a background study of an individual required to be studied under section 245C.03,
43.11subdivision 3 , at least upon application for registration under section 144A.71, subdivision
43.121 .
43.13(b) Each supplemental nursing services agency must initiate background studies
43.14using the electronic system known as NETStudy before an individual begins a position
43.15allowing direct contact with persons served by the agency and annually thereafter.
43.16    Subd. 5. Personnel agencies; educational programs; professional services
43.17agencies. Agencies, programs, and individuals who initiate background studies under
43.18section 245C.03, subdivision 4, must initiate the studies annually using the electronic
43.19system known as NETStudy.
43.20    Subd. 6. Unlicensed home and community-based waiver providers of service to
43.21seniors and individuals with disabilities. (a) Providers required to initiate background
43.22studies under section 256B.4912 must initiate a study using the electronic system known
43.23as NETStudy before the individual begins in a position allowing direct contact with
43.24persons served by the provider.
43.25(b) Except as provided in paragraph (c), the providers must initiate a background
43.26study annually of an individual required to be studied under section 245C.03, subdivision 6.
43.27(c) After an initial background study under this subdivision is initiated on an
43.28individual by a provider of both services licensed by the commissioner and the unlicensed
43.29services under this subdivision, a repeat annual background study is not required if:
43.30(1) the provider maintains compliance with the requirements of section 245C.07,
43.31paragraph (a), regarding one individual with one address and telephone number as the
43.32person to receive sensitive background study information for the multiple programs that
43.33depend on the same background study, and that the individual who is designated to receive
43.34the sensitive background information is capable of determining, upon the request of the
43.35commissioner, whether a background study subject is providing direct contact services
44.1in one or more of the provider's programs or services and, if so, at which location or
44.2locations; and
44.3(2) the individual who is the subject of the background study provides direct
44.4contact services under the provider's licensed program for at least 40 hours per year so
44.5the individual will be recognized by a probation officer or corrections agent to prompt
44.6a report to the commissioner regarding criminal convictions as required under section
44.7245C.05, subdivision 7 .
44.8    Subd. 7. New study required with legal name change. For a background study
44.9completed on an individual required to be studied under section 245C.03, the license
44.10holder or other entity that initiated the background study must initiate a new background
44.11study using the electronic system known as NETStudy when an individual who is affiliated
44.12with the license holder or other entity undergoes a legal name change.

44.13    Sec. 2. Minnesota Statutes 2012, section 245C.05, subdivision 6, is amended to read:
44.14    Subd. 6. Applicant, license holder, other entities, and agencies. (a) The applicant,
44.15license holder, other entities as provided in this chapter, Bureau of Criminal Apprehension,
44.16law enforcement agencies, commissioner of health, and county agencies shall help with
44.17the study by giving the commissioner criminal conviction data and reports about the
44.18maltreatment of adults substantiated under section 626.557 and the maltreatment of
44.19minors substantiated under section 626.556.
44.20(b) If a background study is initiated by an applicant, license holder, or other entities
44.21as provided in this chapter, and the applicant, license holder, or other entity receives
44.22information about the possible criminal or maltreatment history of an individual who is
44.23the subject of the background study, the applicant, license holder, or other entity must
44.24immediately provide the information to the commissioner.
44.25(c) The program or county or other agency must provide written notice to the
44.26individual who is the subject of the background study of the requirements under this
44.27subdivision.

44.28    Sec. 3. Minnesota Statutes 2012, section 245C.08, subdivision 1, is amended to read:
44.29    Subdivision 1. Background studies conducted by Department of Human
44.30Services. (a) For a background study conducted by the Department of Human Services,
44.31the commissioner shall review:
44.32    (1) information related to names of substantiated perpetrators of maltreatment of
44.33vulnerable adults that has been received by the commissioner as required under section
44.34626.557, subdivision 9c , paragraph (j);
45.1    (2) the commissioner's records relating to the maltreatment of minors in licensed
45.2programs, and from findings of maltreatment of minors as indicated through the social
45.3service information system;
45.4    (3) information from juvenile courts as required in subdivision 4 for individuals
45.5listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;
45.6    (4) information from the Bureau of Criminal Apprehension;
45.7    (5) except as provided in clause (6), information from the national crime information
45.8system when the commissioner has reasonable cause as defined under section 245C.05,
45.9subdivision 5; and
45.10    (6) for a background study related to a child foster care application for licensure or
45.11adoptions, the commissioner shall also review:
45.12    (i) information from the child abuse and neglect registry for any state in which the
45.13background study subject has resided for the past five years; and
45.14    (ii) information from national crime information databases, when the background
45.15study subject is 18 years of age or older.
45.16    (b) Notwithstanding expungement by a court, the commissioner may consider
45.17information obtained under paragraph (a), clauses (3) and (4), unless the commissioner
45.18received notice of the petition for expungement and the court order for expungement is
45.19directed specifically to the commissioner.
45.20(c) When the commissioner has reasonable cause to believe that the identity of
45.21a background study subject is uncertain, the commissioner may require the subject to
45.22provide a set of classifiable fingerprints for purposes of completing a fingerprint-based
45.23record check with the Bureau of Criminal Apprehension.

45.24    Sec. 4. Minnesota Statutes 2012, section 245C.16, subdivision 1, is amended to read:
45.25    Subdivision 1. Determining immediate risk of harm. (a) If the commissioner
45.26determines that the individual studied has a disqualifying characteristic, the commissioner
45.27shall review the information immediately available and make a determination as to the
45.28subject's immediate risk of harm to persons served by the program where the individual
45.29studied will have direct contact with, or access to, people receiving services.
45.30    (b) The commissioner shall consider all relevant information available, including the
45.31following factors in determining the immediate risk of harm:
45.32    (1) the recency of the disqualifying characteristic;
45.33    (2) the recency of discharge from probation for the crimes;
45.34    (3) the number of disqualifying characteristics;
45.35    (4) the intrusiveness or violence of the disqualifying characteristic;
46.1    (5) the vulnerability of the victim involved in the disqualifying characteristic;
46.2    (6) the similarity of the victim to the persons served by the program where the
46.3individual studied will have direct contact;
46.4    (7) whether the individual has a disqualification from a previous background study
46.5that has not been set aside; and
46.6    (8) if the individual has a disqualification which may not be set aside because it is
46.7a permanent bar under section 245C.24, subdivision 1, the commissioner may order the
46.8immediate removal of the individual from any position allowing direct contact with, or
46.9access to, persons receiving services from the program.
46.10    (c) This section does not apply when the subject of a background study is regulated
46.11by a health-related licensing board as defined in chapter 214, and the subject is determined
46.12to be responsible for substantiated maltreatment under section 626.556 or 626.557.
46.13    (d) This section does not apply to a background study related to an initial application
46.14for a child foster care license.
46.15(e) Except for paragraph (f), this section does not apply to a background study that
46.16is also subject to the requirements under section 256B.0659, subdivisions 11 and 13, for
46.17a personal care assistant or a qualified professional as defined in section 256B.0659,
46.18subdivision 1 .
46.19    (f) If the commissioner has reason to believe, based on arrest information or an
46.20active maltreatment investigation, that an individual poses an imminent risk of harm to
46.21persons receiving services, the commissioner may order that the person be continuously
46.22supervised or immediately removed pending the conclusion of the maltreatment
46.23investigation or criminal proceedings.

46.24    Sec. 5. Minnesota Statutes 2012, section 245C.20, subdivision 1, is amended to read:
46.25    Subdivision 1. Background studies initiated by program. A licensed program
46.26shall document the date the program initiates a background study under this chapter
46.27 and the date the subject of the study first has direct contact with persons served by the
46.28program in the program's personnel files. When a background study is completed under
46.29this chapter, a licensed program shall maintain a notice that the study was undertaken and
46.30completed in the program's personnel files. Except when background studies are initiated
46.31through the commissioner's online system, if a licensed program has not received a
46.32response from the commissioner under section 245C.17 within 45 days of initiation of the
46.33background study request, the licensed program must contact the human services licensing
46.34division to inquire about the status of the study. If a license holder initiates a background
46.35study under the commissioner's online system, but the background study subject's name
47.1does not appear in the list of active or recent studies initiated by that license holder, the
47.2license holder must either contact the human services licensing division or resubmit the
47.3background study information online for that individual.

47.4    Sec. 6. Minnesota Statutes 2012, section 245C.22, subdivision 1, is amended to read:
47.5    Subdivision 1. Time frame; response to disqualification reconsideration
47.6requests. (a) The commissioner shall respond in writing or by electronic transmission to
47.7all reconsideration requests for which the basis for the request is that the information the
47.8commissioner relied upon to disqualify is incorrect or inaccurate within 30 working days
47.9of receipt of a complete request and all required relevant information.
47.10(b) If the basis for a disqualified individual's reconsideration request is that the
47.11individual does not pose a risk of harm, the commissioner shall respond to the request
47.12within 15 working days after receiving the a complete request for reconsideration and
47.13all required relevant information.
47.14(c) If the disqualified individual's reconsideration request is based on both the
47.15correctness or accuracy of the information the commissioner relied upon to disqualify the
47.16individual and the individual's risk of harm, the commissioner shall respond to the request
47.17within 45 working days after receiving the a complete request for reconsideration and
47.18all required relevant information.

47.19    Sec. 7. Minnesota Statutes 2012, section 245C.23, subdivision 2, is amended to read:
47.20    Subd. 2. Commissioner's notice of disqualification that is not set aside. (a) The
47.21commissioner shall notify the license holder of the disqualification and order the license
47.22holder to immediately remove the individual from any position allowing direct contact
47.23with persons receiving services from the license holder if:
47.24    (1) the individual studied does not submit a timely request for reconsideration
47.25under section 245C.21;
47.26    (2) the individual submits a timely request for reconsideration, but the commissioner
47.27does not set aside the disqualification for that license holder under section 245C.22, unless
47.28the individual has a right to request a hearing under section 245C.27, 245C.28, or 256.045;
47.29    (3) an individual who has a right to request a hearing under sections 245C.27 and
47.30256.045 , or 245C.28 and chapter 14 for a disqualification that has not been set aside, does
47.31not request a hearing within the specified time; or
47.32    (4) an individual submitted a timely request for a hearing under sections 245C.27
47.33and 256.045, or 245C.28 and chapter 14, but the commissioner does not set aside the
47.34disqualification under section 245A.08, subdivision 5, or 256.045.
48.1    (b) If the commissioner does not set aside the disqualification under section 245C.22,
48.2and the license holder was previously ordered under section 245C.17 to immediately
48.3remove the disqualified individual from direct contact with persons receiving services or
48.4to ensure that the individual is under continuous, direct supervision when providing direct
48.5contact services, the order remains in effect pending the outcome of a hearing under
48.6sections 245C.27 and 256.045, or 245C.28 and chapter 14.
48.7(c) If the commissioner does not set aside the disqualification under section 245C.22,
48.8and the license holder was not previously ordered under section 245C.17 to immediately
48.9remove the disqualified individual from direct contact with persons receiving services or
48.10to ensure that the individual is under continuous direct supervision when providing direct
48.11contact services, the commissioner shall order the individual to remain under continuous
48.12direct supervision pending the outcome of a hearing under sections 245C.27 and 256.045,
48.13or 245C.28 and chapter 14.
48.14    (c) (d) For background studies related to child foster care, the commissioner shall
48.15also notify the county or private agency that initiated the study of the results of the
48.16reconsideration.
48.17(d) (e) For background studies related to adult foster care and family adult day
48.18services, the commissioner shall also notify the county that initiated the study of the
48.19results of the reconsideration.

48.20    Sec. 8. Minnesota Statutes 2012, section 245C.24, subdivision 2, is amended to read:
48.21    Subd. 2. Permanent bar to set aside a disqualification. (a) Except as provided in
48.22paragraph (b), the commissioner may not set aside the disqualification of any individual
48.23disqualified pursuant to this chapter, regardless of how much time has passed, if the
48.24individual was disqualified for a crime or conduct listed in section 245C.15, subdivision
48.251 . conviction under section 609.185 (murder in the first degree); 609.19 (murder in the
48.26second degree); 609.195 (murder in the third degree); 609.20 (manslaughter in the first
48.27degree); 609.205 (manslaughter in the second degree); 609.322, subdivisions 1 and
48.281a (solicitation, inducement, and promotion of prostitution; sex trafficking); 609.324,
48.29subdivision 1 (engaging in, hiring, or agreeing to hire a minor to engage in prostitution);
48.30609.342 (criminal sexual conduct in the first degree); 609.343 (criminal sexual conduct
48.31in the second degree); 609.344 (criminal sexual conduct in the third degree); 609.345
48.32(criminal sexual conduct in the fourth degree); 609.3451 (criminal sexual conduct in the
48.33fifth degree); 609.3453 (criminal sexual predatory conduct); 609.352 (solicitation of
48.34children to engage in sexual conduct); 609.365 (incest); 617.246 (use of minors in sexual
48.35performance); or 617.247 (possession of pornographic work involving minors).
49.1    (b) For an individual in the chemical dependency or corrections field who was
49.2disqualified for a crime or conduct listed under section 245C.15, subdivision 1, and whose
49.3disqualification was set aside prior to July 1, 2005, the commissioner must consider
49.4granting a variance pursuant to section 245C.30 for the license holder for a program
49.5dealing primarily with adults. A request for reconsideration evaluated under this paragraph
49.6must include a letter of recommendation from the license holder that was subject to the
49.7prior set-aside decision addressing the individual's quality of care to children or vulnerable
49.8adults and the circumstances of the individual's departure from that service.
49.9(c) When a licensed foster care provider adopts an individual who had received
49.10foster care services from the provider for over six months, and the adopted individual is
49.11required to receive a background study under section 245C.03, subdivision 1, paragraph
49.12(a), clause (2) or (6), the commissioner may grant a variance to the license holder under
49.13section 245C.30 to permit the adopted individual with a permanent disqualification
49.14to remain affiliated with the license holder under the conditions of the variance when
49.15the variance is recommended by the county of responsibility for each of the remaining
49.16individuals in placement in the home and the licensing agency for the home.

49.17    Sec. 9. Minnesota Statutes 2012, section 245C.28, subdivision 1, is amended to read:
49.18    Subdivision 1. License holder. (a) If a maltreatment determination or a
49.19disqualification for which reconsideration was timely requested and which was not set
49.20aside is the basis for a denial of a license under section 245A.05 or a licensing sanction
49.21under section 245A.07, the license holder has the right to a contested case hearing under
49.22chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The license holder must
49.23submit the appeal under section 245A.05 or 245A.07, subdivision 3.
49.24    (b) As provided under section 245A.08, subdivision 2a, if the denial of a license
49.25or licensing sanction is based on a disqualification for which reconsideration was timely
49.26requested and was not set aside, the scope of the consolidated contested case hearing
49.27must include:
49.28    (1) the disqualification, to the extent the license holder otherwise has a hearing right
49.29on the disqualification under this chapter; and
49.30    (2) the licensing sanction or denial of a license.
49.31    (c) As provided for under section 245A.08, subdivision 2a, if the denial of a license
49.32or licensing sanction is based on a determination of maltreatment under section 626.556
49.33or 626.557, or a disqualification for serious or recurring maltreatment which was not set
49.34aside, the scope of the contested case hearing must include:
50.1    (1) the maltreatment determination, if the maltreatment is not conclusive under
50.2section 245C.29;
50.3    (2) the disqualification, if the disqualification is not conclusive under section
50.4245C.29 ; and
50.5    (3) the licensing sanction or denial of a license. In such cases, a fair hearing must not
50.6be conducted under section 256.045. If the disqualification was based on a determination
50.7of substantiated serious or recurring maltreatment under section 626.556 or 626.557, the
50.8appeal must be submitted under sections 245A.07, subdivision 3, and 626.556, subdivision
50.910i, or 626.557, subdivision 9d.
50.10    (d) Except for family child care and child foster care, reconsideration of a
50.11maltreatment determination under sections 626.556, subdivision 10i, and 626.557,
50.12subdivision 9d, and reconsideration of a disqualification under section 245C.22, must
50.13not be conducted when:
50.14    (1) a denial of a license under section 245A.05, or a licensing sanction under section
50.15245A.07 , is based on a determination that the license holder is responsible for maltreatment
50.16or the disqualification of a license holder based on serious or recurring maltreatment;
50.17    (2) the denial of a license or licensing sanction is issued at the same time as the
50.18maltreatment determination or disqualification; and
50.19    (3) the license holder appeals the maltreatment determination, disqualification, and
50.20denial of a license or licensing sanction. In such cases a fair hearing under section 256.045
50.21must not be conducted under sections 245C.27, 626.556, subdivision 10i, and 626.557,
50.22subdivision 9d. Under section 245A.08, subdivision 2a, the scope of the consolidated
50.23contested case hearing must include the maltreatment determination, disqualification, and
50.24denial of a license or licensing sanction.
50.25    Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment
50.26determination or disqualification, but does not appeal the denial of a license or a licensing
50.27sanction, reconsideration of the maltreatment determination shall be conducted under
50.28sections 626.556, subdivision 10i, and 626.557, subdivision 9d, and reconsideration of the
50.29disqualification shall be conducted under section 245C.22. In such cases, a fair hearing
50.30shall also be conducted as provided under sections 245C.27, 626.556, subdivision 10i, and
50.31626.557, subdivision 9d .

50.32    Sec. 10. Minnesota Statutes 2012, section 245C.28, subdivision 3, is amended to read:
50.33    Subd. 3. Employees of public employer. (a) A disqualified individual who is an
50.34employee of an employer, as defined in section 179A.03, subdivision 15, may request
50.35a contested case hearing under chapter 14, and specifically Minnesota Rules, parts
51.11400.8505 to 1400.8612, following a reconsideration decision under section 245C.23,
51.2unless the disqualification is deemed conclusive under section 245C.29. The request for a
51.3contested case hearing must be made in writing and must be postmarked and sent within
51.430 calendar days after the employee receives notice of the reconsideration decision. If
51.5the individual was disqualified based on a conviction or admission to any crimes listed in
51.6section 245C.15, the scope of the contested case hearing shall be limited solely to whether
51.7the individual poses a risk of harm pursuant to section 245C.22.
51.8(b) When an individual is disqualified based on a maltreatment determination, the
51.9scope of the contested case hearing under paragraph (a), must include the maltreatment
51.10determination and the disqualification. In such cases, a fair hearing must not be conducted
51.11under section 256.045.
51.12(c) Rules adopted under this chapter may not preclude an employee in a contested
51.13case hearing for a disqualification from submitting evidence concerning information
51.14gathered under this chapter.
51.15(d) When an individual has been disqualified from multiple licensed programs, if
51.16at least one of the disqualifications entitles the person to a contested case hearing under
51.17this subdivision, the scope of the contested case hearing shall include all disqualifications
51.18from licensed programs.
51.19(e) In determining whether the disqualification should be set aside, the administrative
51.20law judge shall consider all of the characteristics that cause the individual to be disqualified,
51.21as well as all the factors set forth in section 245C.22, in order to determine whether the
51.22individual poses has met the burden of demonstrating that the individual does not pose
51.23 a risk of harm. The administrative law judge's recommendation and the commissioner's
51.24order to set aside a disqualification that is the subject of the hearing constitutes a
51.25determination that the individual does not pose a risk of harm and that the individual may
51.26provide direct contact services in the individual program specified in the set aside.
51.27(f) An individual may not request a contested case hearing under this section if a
51.28contested case hearing has previously been held regarding the individual's disqualification
51.29on the same basis.

51.30    Sec. 11. Minnesota Statutes 2012, section 245C.29, subdivision 2, is amended to read:
51.31    Subd. 2. Conclusive disqualification determination. (a) Unless otherwise
51.32specified in statute, a determination that:
51.33(1) the information the commissioner relied upon to disqualify an individual under
51.34section 245C.14 was correct based on serious or recurring maltreatment;
52.1(2) a preponderance of the evidence shows that the individual committed an act or
52.2acts that meet the definition of any of the crimes listed in section 245C.15; or
52.3(3) the individual failed to make required reports under section 626.556, subdivision
52.43 , or 626.557, subdivision 3, is conclusive if: A disqualification is conclusive for purposes
52.5of current and future background studies if:
52.6(i) (1) the commissioner has issued a final order in an appeal of that determination
52.7 the disqualification under section 245A.08, subdivision 5, 245C.28, subdivision 3, or
52.8256.045 , or a court has issued a final decision;
52.9(ii) (2) the individual did not request reconsideration of the disqualification under
52.10section 245C.21 on the basis that the information relied upon to disqualify the individual
52.11was incorrect; or
52.12(iii) (3) the individual did not timely request a hearing on the disqualification under
52.13section 256.045 or this chapter, chapter 14, or section 256.045 after previously being
52.14given the right to do so.
52.15(b) When a licensing action under section 245A.05, 245A.06, or 245A.07 is based
52.16on the disqualification of an individual in connection with a license to provide family child
52.17care, foster care for children in the provider's own home, or foster care services for adults
52.18in the provider's own home, that disqualification shall be conclusive for purposes of the
52.19licensing action if a request for reconsideration was not submitted within 30 calendar days
52.20of the individual's receipt of the notice of disqualification.
52.21(c) If a determination that the information relied upon to disqualify an individual
52.22was correct and disqualification is conclusive under this section, and the individual is
52.23subsequently disqualified under section 245C.15, the individual has a right to request
52.24reconsideration on the risk of harm under section 245C.21 unless the commissioner is
52.25barred from setting aside the disqualification under 245C.24. Subsequent determinations
52.26 The commissioner's decision regarding the risk of harm shall be made according to section
52.27245C.22 and are not subject to another the final agency decision and is not subject to a
52.28 hearing under this chapter, section 256.045 or chapter 14, or section 256.045.

52.29    Sec. 12. Minnesota Statutes 2012, section 256.045, subdivision 3b, is amended to read:
52.30    Subd. 3b. Standard of evidence for maltreatment and disqualification hearings.
52.31(a) The state human services referee shall determine that maltreatment has occurred if a
52.32preponderance of evidence exists to support the final disposition under sections 626.556
52.33and 626.557. For purposes of hearings regarding disqualification, the state human services
52.34referee shall affirm the proposed disqualification in an appeal under subdivision 3,
52.35paragraph (a), clause (9), if a preponderance of the evidence shows the individual has:
53.1(1) committed maltreatment under section 626.556 or 626.557, which is serious or
53.2recurring;
53.3(2) committed an act or acts meeting the definition of any of the crimes listed in
53.4section 245C.15, subdivisions 1 to 4; or
53.5(3) failed to make required reports under section 626.556 or 626.557, for incidents
53.6in which the final disposition under section 626.556 or 626.557 was substantiated
53.7maltreatment that was serious or recurring.
53.8(b) If the disqualification is affirmed, the state human services referee shall
53.9determine whether the individual poses a risk of harm in accordance with the requirements
53.10of section 245C.22, and whether the disqualification should be set aside or not set aside.
53.11In determining whether the disqualification should be set aside, the human services
53.12referee shall consider all of the characteristics that cause the individual to be disqualified,
53.13including those characteristics that were not subject to review under paragraph (a), in
53.14order to determine whether the individual poses a risk of harm. A decision to set aside
53.15a disqualification that is the subject of the hearing constitutes a determination that the
53.16individual does not pose a risk of harm and that the individual may provide direct contact
53.17services in the individual program specified in the set aside. If a determination that the
53.18information relied upon to disqualify an individual was correct and is conclusive under
53.19section 245C.29, and the individual is subsequently disqualified under section 245C.14,
53.20the individual has a right to again request reconsideration on the risk of harm under section
53.21245C.21. Subsequent determinations regarding risk of harm are not subject to another
53.22hearing under this section.
53.23(c) If a disqualification is based solely on a conviction or is conclusive for any
53.24reason under section 245C.29, the disqualified individual does not have a right to a
53.25hearing under this section.
53.26(c) (d) The state human services referee shall recommend an order to the
53.27commissioner of health, education, or human services, as applicable, who shall issue a
53.28final order. The commissioner shall affirm, reverse, or modify the final disposition. Any
53.29order of the commissioner issued in accordance with this subdivision is conclusive upon
53.30the parties unless appeal is taken in the manner provided in subdivision 7. In any licensing
53.31appeal under chapters 245A and 245C and sections 144.50 to 144.58 and 144A.02 to
53.32144A.46 , the commissioner's determination as to maltreatment is conclusive, as provided
53.33under section 245C.29.