A bill for an act
relating to human services licensing; modifying licensing violation actions against
chapter 245D providers; requiring reports; amending Minnesota Statutes 2022,
section 245A.06, subdivision 1a; Minnesota Statutes 2023 Supplement, section
245A.06, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 245A.06, subdivision 1a, is amended to read:


Subd. 1a.

Correction orders and conditional licenses for programs licensed as home
and community-based services.

(a) For programs licensed under both this chapter and
chapter 245D, if the license holder operates more than one service site under a single license
governed by chapter 245D, the order new text begin or conditional license new text end issued under this section shall
be specific to the service site or sites at which the violations of applicable law or rules
occurred. The order shall not apply to other service sites governed by chapter 245D and
operated by the same license holder unless the commissioner has included in the order the
articulable basis for applying the order to another service site.

(b) If the commissioner has issued more than one license to the license holder under this
chapter, the conditions imposed under this section shall be specific to the license for the
program at which the violations of applicable law or rules occurred and shall not apply to
other licenses held by the same license holder if those programs are being operated in
substantial compliance with applicable law and rules.

new text begin (c) Prior to issuing a conditional license under this section to a license holder operating
a program licensed under both this chapter and chapter 245D, the commissioner must inform
the license holder that their next audit or investigation will lead to a conditional license if
the provider fails or has any violations.
new text end

new text begin (d) The commissioner may reduce the conditional license period for a license holder
operating a program licensed under both this chapter and chapter 245D if the license holder
demonstrates compliance before the conditional license period expires.
new text end

new text begin (e) Conditional licenses may only be issued for license holders operating a program
licensed under both this chapter and chapter 245D when the license holder is willfully
violating chapter 245D.
new text end

new text begin (f) If requested by a license holder operating a program licensed under both this chapter
and chapter 245D, the commissioner must refer the license holder to legal assistance or
other available resources or services when the license holder is subject to an enforcement
action.
new text end

new text begin (g) The commissioner must partner with culturally specific organizations to provide
education on licensing requirements and staff, training, and informational assistance services
to license holders operating a program licensed under both this chapter and chapter 245D.
new text end

new text begin (h) By January 1, 2025, and annually thereafter, the commissioner must provide a report
to the chairs and ranking minority members of the legislative committees with jurisdiction
over chapter 245D licensing on the number of enforcement actions against license holders
who operate a program licensed under both this chapter and chapter 245D. The report must
include aggregated data on the self-identified race and ethnicity of license holders subject
to an enforcement action and on the commissioner's efforts to improve personnel diversity
and cultural competency.
new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 245A.06, subdivision 2, is amended
to read:


Subd. 2.

Reconsideration of correction orders.

(a) If the applicant or license holder
believes that the contents of the commissioner's correction order are in error, the applicant
or license holder may ask the Department of Human Services to reconsider the parts of the
correction order that are alleged to be in error. The request for reconsideration must be made
in writing and must be postmarked and sent to the commissioner within 20 calendar days
after receipt of the correction order by the applicant or license holder or submitted in the
provider licensing and reporting hub within 20 calendar days from the date the commissioner
issued the order through the hub, and:

(1) specify the parts of the correction order that are alleged to be in error;

(2) explain why they are in error; and

(3) include documentation to support the allegation of error.

Upon implementation of the provider licensing and reporting hub, the provider must use
the hub to request reconsideration. A request for reconsideration does not stay any provisions
or requirements of the correction order. The commissioner's disposition of a request for
reconsideration is final and not subject to appeal under chapter 14.

(b) This paragraph applies only to licensed family child care providers. A licensed family
child care provider who requests reconsideration of a correction order under paragraph (a)
may also request, on a form and in the manner prescribed by the commissioner, that the
commissioner expedite the review if:

(1) the provider is challenging a violation and provides a description of how complying
with the corrective action for that violation would require the substantial expenditure of
funds or a significant change to their program; and

(2) describes what actions the provider will take in lieu of the corrective action ordered
to ensure the health and safety of children in care pending the commissioner's review of the
correction order.

new text begin (c) The commissioner must offer license holders operating a program licensed under
both this chapter and chapter 245D alternative dispute resolution services when the license
holder appeals a corrective order.
new text end

Statutes affected:
Introduction: 245A.06