Human services background studies and variances modified, data and language for licensing laws aligned, human services licensing procedures clarified, and program integrity provisions added.

A bill for an act

relating to human services; modifying human services background studies and

variances; aligning data and language for licensing laws; clarifying human services

licensing procedures; adding program integrity provisions; amending Minnesota

Statutes 2024, sections 13A.03, by adding a subdivision; 245.095, subdivisions 2,

5; 245A.02, subdivision 13; 245A.043, subdivision 2; 245A.07, subdivision 2a;

245C.02, subdivision 18; 245C.03, subdivision 1; 245C.04, subdivision 1; 245C.15,

subdivisions 2, 3, 4; 245C.24, subdivision 2; 245D.04, subdivision 3; 245D.10,

subdivision 4; 256B.02, by adding a subdivision; 256B.04, subdivision 10;

256B.064, subdivision 2; 256B.27, subdivision 3; Minnesota Statutes 2025

Supplement, sections 245A.03, subdivision 2; 245A.043, subdivision 2a; 245A.07,

subdivision 3; 245A.10, subdivision 4; 245A.142, subdivision 3; 245A.242,

subdivision 2; 245C.07; 245C.13, subdivision 2; 245C.15, subdivision 4a; 245C.22,

subdivision 5; 260E.03, subdivision 6; 260E.11, subdivision 1; 260E.14, subdivision

1; 626.5572, subdivision 13; repealing Minnesota Statutes 2024, section 245A.02,

subdivision 10b; Minnesota Statutes 2025 Supplement, section 245A.10,

subdivision 3a; Minnesota Rules, part 9505.2165, subpart 4.

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

Section 1.

Minnesota Statutes 2024, section 13A.03, is amended by adding a subdivision

to read:

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Subd. 2a.

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Exception.

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Law enforcement may delay notification under section 13A.02,

subdivision 3, or authorize another government authority to delay notification to a customer

without a court order if law enforcement determines in writing that notification would

compromise the integrity of a current and ongoing criminal investigation. The written

determination from law enforcement must be renewed every 90 days.

new text end

Sec. 2.

Minnesota Statutes 2024, section 245.095, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) For purposes of this section, the following definitions have the

meanings given.

(b) "Associated entity" means a provider or vendor owned or controlled by an excluded

individual.

(c) "Associated individual" means an individual or entity that has a relationship with

the business or its owners or controlling individuals, such that the individual or entity would

have knowledge of the financial practices of the program in question.

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(d) "Convicted" means a judgment of conviction has been entered by a federal, state, or

local court, regardless of whether an appeal from the judgment is pending, and includes a

stay of adjudication, a court-ordered diversion program, or a plea of guilty or nolo contendere.

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(e) "Credible allegation of fraud" means an allegation that has been verified by the

commissioner from any source, including but not limited to:

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(1) fraud hotline complaints;

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(2) claims data mining;

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(3) patterns identified through provider audits, civil false claims cases, and law

enforcement investigations; and

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(4) court filings and other legal documents, including but not limited to police reports,

complaints, indictments, informations, affidavits, declarations, and search warrants.

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(d)
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(f)
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"Excluded" means removed under other authorities from a program administered

by a Minnesota state or federal agency
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, including
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. Excluded includes but is not limited to:
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(1)
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a final determination to stop payments
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.
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;
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(2) a conclusive background study disqualification, except for a disqualification issued

under section 245C.15, subdivision 4c, that has not been set aside or had a variance granted

under section 245C.15; and

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(3) a final agency decision regarding a denial of a license application.

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(g) "Fraud" has the meaning given in section 256B.02, subdivision 20.

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(e)
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(h)
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"Individual" means a natural person providing products or services as a provider

or vendor.

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(f)
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(i)
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"Provider" means any entity, individual, owner, controlling individual, license

holder, director, or managerial official of an entity receiving payment from a program

administered by a Minnesota state or federal agency.

Sec. 3.

Minnesota Statutes 2024, section 245.095, subdivision 5, is amended to read:

Subd. 5.

Withholding of payments.

(a) Except as otherwise provided by state or federal

law, the commissioner may withhold payments to a provider, vendor, individual, associated

individual, or associated entity in any program administered by the commissioner if the

commissioner determines
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:
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(1)
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there is a credible allegation of fraud for which an investigation is pending for a

program administered by a Minnesota state or federal agency
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.
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;
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(2) the individual, the entity, or an associated individual or entity was convicted of a

crime, in state or federal court, for an offense that involves fraud or theft against a program

administered by the commissioner or another state or federal agency;

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(3) the provider is operating after a state or federal agency orders the suspension,

revocation, or decertification of the provider's license or certification, or if the provider is

subject to a temporary immediate suspension, regardless of whether the action is under

appeal; or

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(4) the provider, vendor, individual, associated individual, or associated entity, including

those receiving funds under any contract or registered program, has a background study

disqualification under section 245C.15, subdivisions 1 to 4b, that has not been set aside and

for which no variance has been issued.

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(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation

that has been verified by the commissioner from any source, including but not limited to:

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(1) fraud hotline complaints;

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(2) claims data mining;

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(3) patterns identified through provider audits, civil false claims cases, and law

enforcement investigations; and

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(4) court filings and other legal documents, including but not limited to police reports,

complaints, indictments, informations, affidavits, declarations, and search warrants.

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(c)
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(b)
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The commissioner must send notice of the withholding of payments within five

days of taking such action. The notice must:

(1) state that payments are being withheld according to this subdivision;

(2) set forth the general allegations related to the withholding action, except the notice

need not disclose specific information concerning an ongoing investigation;

(3) state that the withholding is for a temporary period and cite the circumstances under

which the withholding will be terminated; and

(4) inform the provider, vendor, individual, associated individual, or associated entity

of the right to submit written evidence to contest the withholding action for consideration

by the commissioner.

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(d)
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(c)
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If the commissioner withholds payments under this subdivision, the provider,

vendor, individual, associated individual, or associated entity has a right to request

administrative reconsideration. A request for administrative reconsideration must be made

in writing, state with specificity the reasons the payment withholding decision is in error,

and include documents to support the request. Within 60 days from receipt of the request,

the commissioner shall judiciously review allegations, facts, evidence available to the

commissioner, and information submitted by the provider, vendor, individual, associated

individual, or associated entity to determine whether the payment withholding should remain

in place.

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(e)
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(d)
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The commissioner shall stop withholding payments if the commissioner determines

there is insufficient evidence of fraud by the provider, vendor, individual, associated

individual, or associated entity or when legal proceedings relating to the alleged fraud are

completed, unless the commissioner has sent notice under subdivision 3 to the provider,

vendor, individual, associated individual, or associated entity.

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(f)
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(e)
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The withholding of payments
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under this section
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is a temporary action and is not

subject to appeal under section
256.045
or chapter 14.

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(f) Section 15.013 does not apply to the commissioner taking action under this section.

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Sec. 4.

Minnesota Statutes 2024, section 245A.02, subdivision 13, is amended to read:

Subd. 13.

Individual who is related.

"Individual who is related" means a spouse, a

parent, a birth or adopted child or stepchild, a stepparent, a stepbrother, a stepsister, a niece,

a nephew, an adoptive parent, a grandparent, a sibling, an aunt, an uncle,
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a cousin,
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or a legal

guardian
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, including an individual who has a relationship named in this subdivision through

marriage
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.

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EFFECTIVE DATE.

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This section is effective July 1, 2026.

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Sec. 5.

Minnesota Statutes 2025 Supplement, section 245A.03, subdivision 2, is amended

to read:

Subd. 2.

Exclusion from licensure.

(a) This chapter does not apply to:

(1) residential or nonresidential programs that are provided to a person by an individual

who is related;

(2) nonresidential programs that are provided by an unrelated individual to persons from

a single related family;

(3) residential or nonresidential programs that are provided to adults who do not misuse

substances or have a substance use disorder, a mental illness, a developmental disability, a

functional impairment, or a physical disability;

(4) sheltered workshops or work activity programs that are certified by the commissioner

of employment and economic development;

(5) programs operated by a public school for children 33 months or older;

(6) nonresidential programs primarily for children that provide care or supervision for

periods of less than three hours a day while the child's parent or legal guardian is in the

same building as the nonresidential program or present within another building that is

directly contiguous to the building in which the nonresidential program is located;

(7) nursing homes or hospitals licensed by the commissioner of health except as specified

under section
245A.02
;

(8) board and lodge facilities licensed by the commissioner of health that do not provide

children's residential services under Minnesota Rules, chapter
2960
, mental health or

substance use disorder treatment;

(9) programs licensed by the commissioner of corrections;

(10) recreation programs for children or adults that are operated or approved by a park

and recreation board whose primary purpose is to provide social and recreational activities;

(11) noncertified boarding care homes unless they provide services for five or more

persons whose primary diagnosis is mental illness or a developmental disability;

(12) programs for children such as scouting, boys clubs, girls clubs, and sports and art

programs, and nonresidential programs for children provided for a cumulative total of less

than 30 days in any 12-month period;

(13) residential programs for persons with mental illness, that are located in hospitals;

(14) camps licensed by the commissioner of health under Minnesota Rules, chapter

4630;

(15) mental health outpatient services for adults with mental illness or children with

mental illness;

(16) residential programs serving school-age children whose sole purpose is cultural or

educational exchange, until the commissioner adopts appropriate rules;

(17) community support services programs as defined in section
245.462, subdivision

6
, and family community support services as defined in section
245.4871, subdivision 17
;

(18) assisted living facilities licensed by the commissioner of health under chapter 144G;

(19) substance use disorder treatment activities of licensed professionals in private

practice as defined in section
245G.01, subdivision 17
;

(20) consumer-directed community support service funded under the Medicaid waiver

for persons with developmental disabilities when the individual who provided the service

is:

(i) the same individual who is the direct payee of these specific waiver funds or paid by

a fiscal agent, fiscal intermediary, or employer of record; and

(ii) not otherwise under the control of a residential or nonresidential program that is

required to be licensed under this chapter when providing the service;

(21) a county that is an eligible vendor under section
254B.0501
to provide care

coordination and comprehensive assessment services;

(22) a recovery community organization that is an eligible vendor under section

254B.0501
to provide peer recovery support services; or

(23) programs licensed by the commissioner of children, youth, and families in chapter

142B.

(b) For purposes of paragraph (a), clause (6), a building is directly contiguous to a

building in which a nonresidential program is located if it shares a common wall with the

building in which the nonresidential program is located or is attached to that building by

skyway, tunnel, atrium, or common roof.

(c) Except for the home and community-based services identified in section
245D.03,

subdivision 1
, nothing in this chapter shall be construed to require licensure for any services

provided and funded according to an approved federal waiver plan where licensure is

specifically identified as not being a condition for the services and funding.

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(d) Notwithstanding section 245A.02, subdivision 13, programs initially licensed prior

to July 1, 2026, may continue to operate under the definition of related individual in

Minnesota Statutes 2024, section 245A.02, subdivision 13, until the service recipient related

to the license holder by marriage or as a cousin is no longer receiving services licensed

under this chapter.

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Sec. 6.

Minnesota Statutes 2024, section 245A.043, subdivision 2, is amended to read:

Subd. 2.

Change in ownership.

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(a)
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If the commissioner determines that there is a change

in ownership, the commissioner shall require submission of a new license application. This

subdivision does not apply to a licensed program or service located in a home where the

license holder resides. A change in ownership occurs when:

(1)
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except as provided in paragraph (b),
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the license holder sells or transfers 100 percent

of the property, stock, or assets;

(2) the license holder merges with another organization;

(3) the license holder consolidates with two or more organizations, resulting in the

creation of a new organization;

(4) there is a change to the federal tax identification number associated with the license

holder; or

(5)
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except as provided in paragraph (b),
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all controlling individuals for the original license

have changed.

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(b) For changes under paragraph (a), clause (1) or (5), no change in ownership has

occurred and a new license application is not required if at least one controlling individual

has been affiliated as a controlling individual for the license for at least the previous 12

months immediately preceding the change.

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Sec. 7.

Minnesota Statutes 2025 Supplement, section 245A.043, subdivision 2a, is amended

to read:

Subd. 2a.

Review of change in ownership.

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(a)
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After a change in ownership under

subdivision 2,
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paragraph (a),
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the commissioner may complete a review for all new license

holders within 12 months after the new license is issued.

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(b) For all license holders subject to the exception in subdivision 2, paragraph (b), the

license holder must notify the commissioner of the date of the change in controlling

individuals pursuant to section
245A.04, subdivision 7a
, and the commissioner may complete

a review within 12 months following the change.

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Sec. 8.

Minnesota Statutes 2024, section 245A.07, subdivision 2a, is amended to read:

Subd. 2a.

Immediate suspension expedited hearing.

(a) Within five working days of

receipt of the license holder's timely appeal, the commissioner shall request assignment of

an administrative law judge. The request must include a proposed date, time, and place of

a hearing. A hearing must be conducted by an administrative law judge within 30 calendar

days of the request for assignment, unless an extension is requested by either party and

granted by the administrative law judge for good cause. The commissioner shall issue a

notice of hearing by certified mail or personal service at least ten working days before the

hearing. The scope of the hearing shall be limited solely to the issue of whether the temporary

immediate suspension should remain in effect pending the commissioner's final order under

section
245A.08
, regarding a licensing sanction issued under subdivision 3 following the

immediate suspension. For suspensions under subdivision 2, paragraph (a), clause (1), the

burden of proof in expedited hearings under this subdivision
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shall be limited to
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is met only

if
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the
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commissioner's demonstration
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new text begin
commissioner demonstrates
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that reasonable cause exists

to believe that the license holder's
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or controlling individual's
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actions or failure to comply

with applicable law or rule poses, or the actions of other individuals or conditions in the

program poses an imminent risk of harm to the health, safety, or rights of persons served

by the program. "Reasonable cause" means there exist specific articulable facts or

circumstances which provide the commissioner with a reasonable suspicion that there is an

imminent risk of harm to the health, safety, or rights of persons served by the program.

When the commissioner has determined there is reasonable cause to order the temporary

immediate suspension of a license based on a violation of safe sleep requirements, as defined

in section
245A.1435
, the commissioner is not required to demonstrate that an infant died

or was injured as a result of the safe sleep violations. For suspensions under subdivision 2,

paragraph (a), clause (2), the burden of proof in expedited hearings under this subdivision
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shall be limited to
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is met only if
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the
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commissioner's demonstration
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commissioner

demonstrates
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by a preponderance of the evidence that, since the license was revoked, the

license holder committed additional violations of law or rule which may adversely affect

the health or safety of persons served by the program.

(b) The administrative law judge shall issue findings of fact, conclusions, and a

recommendation within ten working days from the date of hearing. The parties shall have

ten calendar days to submit exceptions to the administrative law judge's report. The record

shall close at the end of the ten-day period for submission of exceptions. The commissioner's

final order shall be issued within ten working days from the close of the record. When an

appeal of a temporary immediate suspension is withdrawn or dismissed, the commissioner

shall issue a final order affirming the temporary immediate suspension within ten calendar

days of the commissioner's receipt of the withdrawal or dismissal. Within 90 calendar days

after an immediate suspension has been issued and the license holder has not submitted a

timely appeal under subdivision 2, paragraph (b), or within 90 calendar days after a final

order affirming an immediate suspension, the commissioner shall determine:

(1) whether a final licensing sanction shall be issued under subdivision 3, paragraph (a),

clauses (1) to
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(6)
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(5)
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. The license holder shall continue to be prohibited from operation of

the program during this 90-day period; or

(2) whether the outcome of related, ongoing investigations or judicial proceedings are

necessary to determine if a final licensing sanction under subdivision 3, paragraph (a),

clauses (1) to
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(6)
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(5)
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, will be issued and whether persons served by the program remain at

an imminent risk of harm during the investigation period or proceedings. If so, the

commissioner shall issue a suspension order under subdivision 3, paragraph (a), clause
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(7).
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(6); or
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(3) whether the license holder or controlling individual remains the subject of a pending

administrative, civil, or criminal investigation or subject to an administrative or civil action

related to fraud against a program administered by a state or federal agency. If so, the

commissioner shall issue a suspension order under subdivision 3, paragraph (a), clause (6).

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(c) When the final order under paragraph (b) affirms an immediate suspension, or the

license holder does not submit a timely appeal of the immediate suspension, and a final

licensing sanction is issued under subdivision 3 and the license holder appeals that sanction,

the license holder continues to be prohibited from operation of the program pending a final

commissioner's order under section
245A.08, subdivision 5
, regarding the final licensing

sanction.

(d) The license holder shall continue to be prohibited from operation of the program

while a suspension order issued under paragraph (b), clause (2)
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or (3)
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, remains in effect.

(e) For suspensions under subdivision 2, paragraph (a), clause (3), the burden of proof

in expedited hearings under this subdivision
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shall be limited to
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is met only if
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the
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commissioner's demonstration
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commissioner demonstrates
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by a preponderance of the

evidence that a criminal complaint and warrant or summons was issued for the license holder
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or controlling individual
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that was not dismissed, and that the criminal charge is an offense

that involves fraud or theft against a program administered by the commissioner.

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(f) For suspensions under subdivision 2, paragraph (c), the burden of proof in expedited

hearings under this subdivision is met only if the commissioner demonstrates by a

preponderance of the evidence that the license holder or controlling individual is the subject

of a pending administrative, civil, or criminal investigation or is subject to an administrative

or civil action related to fraud against a program administered by a state or federal agency.

new text end

Sec. 9.

Minnesota Statutes 2025 Supplement, section 245A.07, subdivision 3, is amended

to read:

Subd. 3.

License suspension, revocation, or fine.

(a) The commissioner may suspend

or revoke a license, or impose a fine if:

(1) a license holder fails to comply fully with applicable laws or rules including but not

limited to the requirements of this chapter and chapter 245C;

(2) a license holder, a controlling individual, or an individual living in the household

where the licensed services are provided or is otherwise subject to a background study has

been disqualified and the disqualification was not set aside and no variance has been granted;

(3) a license holder knowingly withholds relevant information from or gives false or

misleading information to the commissioner in connection with an application for a license,

in connection with the background study status of an individual, during an investigation,

or regarding compliance with applicable laws or rules;

(4) a license holder is excluded from any program administered by the commissioner

under section
245.095
;

(5) revocation is required under section
245A.04, subdivision 7
, paragraph (d); or

(6) suspension is necessary under subdivision 2a, paragraph (b), clause (2)
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or (3)
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.

A license holder who has had a license issued under this chapter suspended, revoked,

or has been ordered to pay a fine must be given notice of the action by certified mail, by

personal service, or through the provider licensing and reporting hub. If mailed, the notice

must be mailed to the address shown on the application or the last known address of the

license holder. The notice must state in plain language the reasons the license was suspended

or revoked, or a fine was ordered.

(b) If the license was suspended or revoked, the notice must inform the license holder

of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts

1400.8505
to
1400.8612
. The license holder may appeal an order suspending or revoking

a license. The appeal of an order suspending or revoking a license must be made in writing

by certified mail, by personal service, or through the provider licensing and reporting hub.

If mailed, the appeal must be postmarked and sent to the commissioner within ten calendar

days after the license holder receives notice that the license has been suspended or revoked.

If a request is made by personal service, it must be received by the commissioner within

ten calendar days after the license holder received the order. If the order is issued through

the provider hub, the appeal must be received by the commissioner within ten calendar days

from the date the commissioner issued the order through the hub. Except as provided in

subdivision 2a, paragraph (c), if a license holder submits a timely appeal of an order

suspending or revoking a license, the license holder may continue to operate the program

as provided in section
245A.04, subdivision 7
, paragraphs (i) and (j), until the commissioner

issues a final order on the suspension or revocation.

(c)(1) If the license holder was ordered to pay a fine, the notice must inform the license

holder of the responsibility for payment of fines and the right to a contested case hearing

under chapter 14 and Minnesota Rules, parts
1400.8505
to
1400.8612
. The appeal of an

order to pay a fine must be made in writing by certified mail, by personal service, or through

the provider licensing and reporting hub. If mailed, the appeal must be postmarked and sent

to the commissioner within ten calendar days after the license holder receives notice that

the fine has been ordered. If a request is made by personal service, it must be received by

the commissioner within ten calendar days after the license holder received the order. If the

order is issued through the provider hub, the appeal must be received by the commissioner

within ten calendar days from the date the commissioner issued the order through the hub.

(2) The license holder shall pay the fines assessed on or before the payment date specified.

If the license holder fails to fully comply with the order, the commissioner may issue a

second fine or suspend the license until the license holder complies. If the license holder

receives state funds, the state, county, or municipal agencies or departments responsible for

administering the funds shall withhold payments and recover any payments made while the

license is suspended for failure to pay a fine. A timely appeal shall stay payment of the fine

until the commissioner issues a final order.

(3) A license holder shall promptly notify the commissioner of human services, in writing,

when a violation specified in the order to forfeit a fine is corrected. If upon reinspection the

commissioner determines that a violation has not been corrected as indicated by the order

to forfeit a fine, the commissioner may issue a second fine. The commissioner shall notify

the license holder by certified mail, by personal service, or through the provider licensing

and reporting hub that a second fine has been assessed. The license holder may appeal the

second fine as provided under this subdivision.

(4) Fines shall be assessed as follows:

(i) the license holder shall forfeit $1,000 for each determination of maltreatment of a

child under chapter 260E or the maltreatment of a vulnerable adult under section
626.557

for which the license holder is determined responsible for the maltreatment under section

260E.30, subdivision 4
, paragraphs (a) and (b), or
626.557, subdivision 9c
, paragraph (c);

(ii) if the commissioner determines that a determination of maltreatment for which the

license holder is responsible is the result of maltreatment that meets the definition of serious

maltreatment as defined in section
245C.02, subdivision 18
, the license holder shall forfeit

$5,000;

(iii) the license holder shall forfeit $200 for each occurrence of a violation of law or rule

governing matters of health, safety, or supervision, including but not limited to the provision

of adequate staff-to-child or adult ratios, and failure to comply with background study

requirements under chapter 245C; and

(iv) the license holder shall forfeit $100 for each occurrence of a violation of law or rule

other than those subject to a $5,000, $1,000, or $200 fine in items (i) to (iii).

For purposes of this section, "occurrence" means each violation identified in the

commissioner's fine order. Fines assessed against a license holder that holds a license to

provide home and community-based services, as identified in section
245D.03, subdivision

1
, and a community residential setting or day services facility license under chapter 245D

where the services are provided, may be assessed against both licenses for the same

occurrence, but the combined amount of the fines shall not exceed the amount specified in

this clause for that occurrence.

(5) When a fine has been assessed, the license holder may not avoid payment by closing,

selling, or otherwise transferring the licensed program to a third party. In such an event, the

license holder will be personally liable for payment. In the case of a corporation, each

controlling individual is personally and jointly liable for payment.

(d) Except for background study violations involving the failure to comply with an order

to immediately remove an individual or an order to provide continuous, direct supervision,

the commissioner shall not issue a fine under paragraph (c) relating to a background study

violation to a license holder who self-corrects a background study violation before the

commissioner discovers the violation. A license holder who has previously exercised the

provisions of this paragraph to avoid a fine for a background study violation may not avoid

a fine for a subsequent background study violation unless at least 365 days have passed

since the license holder self-corrected the earlier background study violation.

Sec. 10.

Minnesota Statutes 2025 Supplement, section 245A.10, subdivision 4, is amended

to read:

Subd. 4.

License or certification fee for certain programs.

(a)(1) A program licensed

to provide one or more of the home and community-based services and supports identified

under chapter 245D to persons with disabilities or age 65 and older, shall pay an annual

nonrefundable license fee based on revenues derived from the provision of services that

would require licensure under chapter 245D during the calendar year immediately preceding

the year in which the license fee is paid, according to the following schedule:

License Holder Annual Revenue

License Fee

less than or equal to $10,000

$250

greater than $10,000 but less than or

equal to $25,000

$375

greater than $25,000 but less than or

equal to $50,000

$500

greater than $50,000 but less than or

equal to $100,000

$625

greater than $100,000 but less than or

equal to $150,000

$750

greater than $150,000 but less than or

equal to $200,000

$1,000

greater than $200,000 but less than or

equal to $250,000

$1,250

greater than $250,000 but less than or

equal to $300,000

$1,500

greater than $300,000 but less than or

equal to $350,000

$1,750

greater than $350,000 but less than or

equal to $400,000

$2,000

greater than $400,000 but less than or

equal to $450,000

$2,250

greater than $450,000 but less than or

equal to $500,000

$2,500

greater than $500,000 but less than or

equal to $600,000

$2,850

greater than $600,000 but less than or

equal to $700,000

$3,200

greater than $700,000 but less than or

equal to $800,000

$3,600

greater than $800,000 but less than or

equal to $900,000

$3,900

greater than $900,000 but less than or

equal to $1,000,000

$4,250

greater than $1,000,000 but less than or

equal to $1,250,000

$4,550

greater than $1,250,000 but less than or

equal to $1,500,000

$4,900

greater than $1,500,000 but less than or

equal to $1,750,000

$5,200

greater than $1,750,000 but less than or

equal to $2,000,000

$5,500

greater than $2,000,000 but less than or

equal to $2,500,000

$5,900

greater than $2,500,000 but less than or

equal to $3,000,000

$6,200

greater than $3,000,000 but less than or

equal to $3,500,000

$6,500

greater than $3,500,000 but less than or

equal to $4,000,000

$7,200

greater than $4,000,000 but less than or

equal to $4,500,000

$7,800

greater than $4,500,000 but less than or

equal to $5,000,000

$9,000

greater than $5,000,000 but less than or

equal to $7,500,000

$10,000

greater than $7,500,000 but less than or

equal to $10,000,000

$14,000

greater than $10,000,000 but less than or

equal to $12,500,000

$18,000

greater than $12,500,000 but less than or

equal to $15,000,000

$25,000

greater than $15,000,000 but less than or

equal to $17,500,000

$28,000

greater than $17,500,000 but less than
new text begin
or

equal to
new text end
$20,000,000

$32,000

greater than $20,000,000 but less than
new text begin
or

equal to
new text end
$25,000,000

$36,000

greater than $25,000,000 but less than
new text begin
or

equal to
new text end
$30,000,000

$45,000

greater than $30,000,000 but less than
new text begin
or

equal to
new text end
$35,000,000

$55,000

greater than $35,000,000

$75,000

(2) If requested, the license holder shall provide the commissioner information to verify

the license holder's annual revenues or other information as needed, including copies of

documents submitted to the Department of Revenue.

(3) At each annual renewal, a license holder may elect to pay the highest renewal fee,

and not provide annual revenue information to the commissioner.

(4) A license holder that knowingly provides the commissioner incorrect revenue amounts

for the purpose of paying a lower license fee shall be subject to a civil penalty in the amount

of double the fee the provider should have paid.

(b) A substance use disorder treatment program licensed under chapter 245G, to provide

substance use disorder treatment shall pay an annual nonrefundable license fee based on

the following schedule:

Licensed Capacity

License Fee

1 to 24 persons

$2,600

25 to 49 persons

$3,000

50 to 74 persons

$5,000

75 to 99 persons

$10,000

100 to 199 persons

$15,000

200 or more persons

$20,000

(c) A detoxification program licensed under Minnesota Rules, parts
9530.6510
to

9530.6590
, or a withdrawal management program licensed under chapter 245F shall pay

an annual nonrefundable license fee based on the following schedule:

Licensed Capacity

License Fee

1 to 24 persons

$2,600

25 to 49 persons

$3,000

50 or more persons

$5,000

A detoxification program that also operates a withdrawal management program at the same

location shall only pay one fee based upon the licensed capacity of the program with the

higher overall capacity.

(d) A children's residential facility licensed under Minnesota Rules, chapter
2960
, to

serve children shall pay an annual nonrefundable license fee based on the following schedule:

Licensed Capacity

License Fee

1 to 24 persons

$1,000

25 to 49 persons

$1,100

50 to 74 persons

$1,200

75 to 99 persons

$1,300

100 or more persons

$1,400

(e) A residential facility licensed under section
245I.23
or Minnesota Rules, parts

9520.0500
to
9520.0670
, to serve persons with mental illness shall pay an annual

nonrefundable license fee based on the following schedule:

Licensed Capacity

License Fee

1 to 24 persons

$2,600

25 to 49 persons

$3,000

50 or more persons

$20,000

(f) A residential facility licensed under Minnesota Rules, parts
9570.2000
to
9570.3400
,

to serve persons with physical disabilities shall pay an annual nonrefundable license fee

based on the following schedule:

Licensed Capacity

License Fee

1 to 24 persons

$450

25 to 49 persons

$650

50 to 74 persons

$850

75 to 99 persons

$1,050

100 or more persons

$1,250

(g) A program licensed as an adult day care center licensed under Minnesota Rules,

parts
9555.9600
to
9555.9730
, shall pay an annual nonrefundable license fee based on the

following schedule:

Licensed Capacity

License Fee

1 to 24 persons

$2,600

25 to 49 persons

$3,000

50 to 74 persons

$5,000

75 to 99 persons

$10,000

100 to 199 persons

$15,000

200 or more persons

$20,000

(h) A program licensed to provide treatment services to persons with sexual psychopathic

personalities or sexually dangerous persons under Minnesota Rules, parts
9515.3000
to

9515.3110
, shall pay an annual nonrefundable license fee of $20,000.

(i) A mental health clinic certified under section
245I.20
shall pay an annual

nonrefundable certification fee of $1,550. If the mental health clinic provides services at a

primary location with satellite facilities, the satellite facilities shall be certified with the

primary location without an additional charge.

(j) If a program subject to annual fees under paragraph (b) provides services at a primary

location with satellite facilities, the satellite facilities must be licensed with the primary

location and must be subject to an additional $500 annual nonrefundable license fee per

satellite facility.

Sec. 11.

Minnesota Statutes 2025 Supplement, section 245A.142, subdivision 3, is amended

to read:

Subd. 3.

Provisional license.

(a) Beginning January 1, 2026, the commissioner shall

begin issuing provisional licenses to agencies enrolled under chapter 256B to provide EIDBI

services.

(b) Agencies enrolled before July 1, 2025, have until May 31, 2026, to submit an

application for provisional licensure on the forms and in the manner prescribed by the

commissioner.

(c) Beginning June 1, 2026, an agency must not operate if it has not submitted an

application for provisional licensure under this section. The commissioner shall disenroll

an agency from providing EIDBI services under chapter 256B if the agency fails to submit

an application for provisional licensure by May 31, 2026.

(d) The commissioner must determine whether a provisional license applicant complies

with all applicable rules and laws and either issue a provisional license to the applicant or

deny the application by December 31, 2026.

(e) A provisional license is effective until comprehensive EIDBI agency licensure

standards are in effect unless the provisional license is suspended or revoked.

new text begin

(f) Initial provisional license applications are subject to the $2,100 application fee under

section 245A.10, subdivision 3.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 12.

Minnesota Statutes 2025 Supplement, section 245A.242, subdivision 2, is amended

to read:

Subd. 2.

Emergency overdose treatment.

(a) A license holder must maintain a supply

of opiate antagonists as defined in section
604A.04, subdivision 1
, available for emergency

treatment of opioid overdose
deleted text begin
and
deleted text end
new text begin
. For administration via intramuscular injection, a license

holder
new text end
must have a written standing order protocol by a physician who is licensed under

chapter 147, advanced practice registered nurse who is licensed under chapter 148, or

physician assistant who is licensed under chapter 147A, that permits the license holder to

maintain a supply of
new text begin
intramuscular injection
new text end
opiate antagonists on site. A license holder

must require staff to undergo training in the specific mode of administration used at the

program, which may include intranasal administration, intramuscular injection, or both,

before the staff has direct contact, as defined in section
245C.02, subdivision 11
, with a

person served by the program.

(b) Notwithstanding any requirements to the contrary in Minnesota Rules, chapters
2960

and
9530
, and Minnesota Statutes, chapters 245F, 245G, and 245I:

(1) emergency opiate antagonist medications are not required to be stored in a locked

area and staff and adult clients may carry this medication on them and store it in an unlocked

location;

(2) staff persons who only administer emergency opiate antagonist medications only

require the training required by paragraph (a), which any knowledgeable trainer may provide.

The trainer is not required to be a registered nurse or part of an accredited educational

institution; and

(3) nonresidential substance use disorder treatment programs that do not administer

client medications beyond emergency opiate antagonist medications are not required to

have the policies and procedures required in section
245G.08, subdivisions 5 and 6
, and

must instead describe the program's procedures for administering opiate antagonist

medications in the license holder's description of health care services under section
245G.08,

subdivision 1
.

Sec. 13.

Minnesota Statutes 2024, section 245C.02, subdivision 18, is amended to read:

Subd. 18.

Serious maltreatment.

(a) "Serious maltreatment" means sexual abuse,

maltreatment resulting in death, neglect resulting in serious injury which reasonably requires

the care of a physician, advanced practice registered nurse, or physician assistant whether

or not the care of a physician, advanced practice registered nurse, or physician assistant was

sought,
deleted text begin
or
deleted text end
abuse resulting in serious injury
new text begin
, or financial exploitation of a vulnerable adult

if the value of the funds or property is $1,000 or greater
new text end
.

(b) For purposes of this definition, "care of a physician, advanced practice registered

nurse, or physician assistant" is treatment received or ordered by a physician, physician

assistant, or advanced practice registered nurse, but does not include:

(1) diagnostic testing, assessment, or observation;

(2) the application of, recommendation to use, or prescription solely for a remedy that

is available over the counter without a prescription; or

(3) a prescription solely for a topical antibiotic to treat burns when there is no follow-up

appointment.

(c) For purposes of this definition, "abuse resulting in serious injury" means: bruises,

bites, skin laceration, or tissue damage; fractures; dislocations; evidence of internal injuries;

head injuries with loss of consciousness; extensive second-degree or third-degree burns and

other burns for which complications are present; extensive second-degree or third-degree

frostbite and other frostbite for which complications are present; irreversible mobility or

avulsion of teeth; injuries to the eyes; ingestion of foreign substances and objects that are

harmful; near drowning; and heat exhaustion or sunstroke.

(d) Serious maltreatment includes neglect when it results in criminal sexual conduct

against a child or vulnerable adult.

Sec. 14.

Minnesota Statutes 2024, section 245C.03, subdivision 1, is amended to read:

Subdivision 1.

Programs licensed by the commissioner.

(a) The commissioner shall

conduct a background study on:

(1) the person or persons applying for a license;

(2) an individual age 13 and over living in the household where the licensed program

will be provided who is not receiving licensed services from the program;

(3) current or prospective employees of the applicant or license holder who will have

direct contact with persons served by the facility, agency, or program;

(4) volunteers or student volunteers who will have direct contact with persons served

by the program to provide program services if the contact is not under the continuous, direct

supervision by an individual listed in clause (1) or (3);

(5) an individual age ten to 12 living in the household where the licensed services will

be provided when the commissioner has reasonable cause as defined in section
245C.02
,

subdivision 15;

(6) an individual who, without providing direct contact services at a licensed program,

may have unsupervised access to children or vulnerable adults receiving services from a

program, when the commissioner has reasonable cause as defined in section
245C.02
,

subdivision 15; and

(7) all controlling individuals as defined in section
245A.02, subdivision 5a
;

(8) notwithstanding clause (3), for children's residential facilities and foster residence

settings, any adult working in the facility, whether or not the individual will have direct

contact with persons served by the facility.

(b) For child foster care when the license holder resides in the home where foster care

services are provided, a short-term substitute caregiver providing direct contact services for

a child for less than 72 hours of continuous care is not required to receive a background

study under this chapter.

(c) This subdivision applies to the following programs that must be licensed under

chapter 245A:

(1) adult foster care;

(2) children's residential facilities;

(3) licensed home and community-based services under chapter 245D;

(4) residential mental health programs for adults;

(5) substance use disorder treatment programs under chapter 245G;

(6) withdrawal management programs under chapter 245F;

(7) adult day care centers;

(8) family adult day services;

(9) detoxification programs;

(10) community residential settings;

(11) intensive residential treatment services and residential crisis stabilization under

chapter 245I;
deleted text begin
and
deleted text end

(12) treatment programs for persons with sexual psychopathic personality or sexually

dangerous persons, licensed under chapter 245A and according to Minnesota Rules, parts

9515.3000
to
9515.3110
deleted text begin
.
deleted text end
new text begin
; and
new text end

new text begin

(13) children's foster residence settings.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective November 3, 2026.

new text end

Sec. 15.

Minnesota Statutes 2024, section 245C.04, subdivision 1, is amended to read:

Subdivision 1.

Licensed programs; other child care programs.

(a) The commissioner

shall conduct a background study of an individual required to be studied under section

245C.03, subdivision 1
, at least upon application for initial license for all license types.

(b) The commissioner shall conduct a background study of an individual required to be

studied under section
245C.03
, subdivision 1, including a child care background study

subject as defined in section
245C.02, subdivision 6a
, in a family child care program, licensed

child care center, certified license-exempt child care center, or legal nonlicensed child care

provider, on a schedule determined by the commissioner. Except as provided in section

245C.05, subdivision 5a
, a child care background study must include submission of

fingerprints for a national criminal history record check and a review of the information

under section
245C.08
. A background study for a child care program must be repeated

within five years from the most recent study conducted under this paragraph.

(c) At reauthorization or when a new background study is needed under section
142E.16,

subdivision 2
, for a legal nonlicensed child care provider authorized under chapter 142E:

(1) for a background study affiliated with a legal nonlicensed child care provider, the

individual shall provide information required under section
245C.05, subdivision 1
,

paragraphs (a), (b), and (d), to the commissioner and be fingerprinted and photographed

under section
245C.05, subdivision 5
; and

(2) the commissioner shall verify the information received under clause (1) and submit

the request in NETStudy 2.0 to complete the background study.

(d) At reapplication for a family child care license:

(1) for a background study affiliated with a licensed family child care center, the

individual shall provide information required under section
245C.05, subdivision 1
,

paragraphs (a), (b), and (d), to the county agency, and be fingerprinted and photographed

under section
245C.05, subdivision 5
;

(2) the county agency shall verify the information received under clause (1) and forward

the information to the commissioner and submit the request in NETStudy 2.0 to complete

the background study; and

(3) the background study conducted by the commissioner under this paragraph must

include a review of the information required under section
245C.08
.

deleted text begin

(e) The commissioner is not required to conduct a study of an individual at the time of

reapplication for a license if the individual's background study was completed by the

commissioner of human services and the following conditions are met:

deleted text end

deleted text begin

(1) a study of the individual was conducted either at the time of initial licensure or when

the individual became affiliated with the license holder;

deleted text end

deleted text begin

(2) the individual has been continuously affiliated with the license holder since the last

study was conducted; and

deleted text end

deleted text begin

(3) the last study of the individual was conducted on or after October 1, 1995.

deleted text end

deleted text begin

(f)
deleted text end
new text begin
(e)
new text end
The commissioner of human services shall conduct a background study of an

individual specified under section
245C.03, subdivision 1
, paragraph (a), clauses (2) to (6),

who is newly affiliated with a child foster family setting license holder:

(1) the county or private agency shall collect and forward to the commissioner the

information required under section
245C.05, subdivisions 1
and 5, when the child foster

family setting applicant or license holder resides in the home where child foster care services

are provided; and

(2) the background study conducted by the commissioner of human services under this

paragraph must include a review of the information required under section
245C.08,

subdivisions 1
, 3, and 4.

deleted text begin

(g)
deleted text end
new text begin
(f)
new text end
The commissioner shall conduct a background study of an individual specified

under section
245C.03, subdivision 1
, paragraph (a), clauses (2) to (6), who is newly affiliated

with an adult foster care or family adult day services and with a family child care license

holder or a legal nonlicensed child care provider authorized under chapter 142E and:

(1) except as provided in section
245C.05, subdivision 5a
, the county shall collect and

forward to the commissioner the information required under section
245C.05, subdivision

1
, paragraphs (a) and (b), and subdivision 5, paragraph (b), for background studies conducted

by the commissioner for all family adult day services, for adult foster care when the adult

foster care license holder resides in the adult foster care residence, and for family child care

and legal nonlicensed child care authorized under chapter 142E;

(2) the license holder shall collect and forward to the commissioner the information

required under section
245C.05, subdivisions 1
, paragraphs (a) and (b); and 5, paragraphs

(a) and (b), for background studies conducted by the commissioner for adult foster care

when the license holder does not reside in the adult foster care residence; and

(3) the background study conducted by the commissioner under this paragraph must

include a review of the information required under section
245C.08, subdivision 1
, paragraph

(a), and subdivisions 3 and 4.

deleted text begin

(h)
deleted text end
new text begin
(g)
new text end
Applicants for licensure, license holders, and other entities as provided in this

chapter must submit completed background study requests to the commissioner using the

electronic system known as NETStudy
new text begin
2.0
new text end
before individuals specified in section
245C.03,

subdivision 1
, begin positions allowing direct contact in any licensed program.

deleted text begin

(i)
deleted text end
new text begin
(h)
new text end
For an individual who is not on the entity's active roster, the entity must initiate

a new background study through NETStudy when:

(1) an individual returns to a position requiring a background study following an absence

of 120 or more consecutive days; or

(2) a program that discontinued providing licensed direct contact services for 120 or

more consecutive days begins to provide direct contact licensed services again.

The license holder shall maintain a copy of the notification provided to the commissioner

under this paragraph in the program's files. If the individual's disqualification was previously

set aside for the license holder's program and the new background study results in no new

information that indicates the individual may pose a risk of harm to persons receiving

services from the license holder, the previous set-aside shall remain in effect.

deleted text begin

(j)
deleted text end
new text begin
(i)
new text end
For purposes of this section, a physician licensed under chapter 147, advanced

practice registered nurse licensed under chapter 148, or physician assistant licensed under

chapter 147A is considered to be continuously affiliated upon the license holder's receipt

from the commissioner of health or human services of the physician's, advanced practice

registered nurse's, or physician assistant's background study results.

deleted text begin

(k)
deleted text end
new text begin
(j)
new text end
For purposes of family child care, a substitute caregiver must receive repeat

background studies at the time of each license renewal.

deleted text begin

(l)
deleted text end
new text begin
(k)
new text end
A repeat background study at the time of license renewal is not required if the

family child care substitute caregiver's background study was completed by the commissioner

on or after October 1, 2017, and the substitute caregiver is on the license holder's active

roster in NETStudy 2.0.

deleted text begin

(m)
deleted text end
new text begin
(l)
new text end
Before and after school programs authorized under chapter 142E, are exempt

from the background study requirements under section
123B.03
, for an employee for whom

a background study under this chapter has been completed.

Sec. 16.

Minnesota Statutes 2025 Supplement, section 245C.07, is amended to read:

245C.07 STUDY SUBJECT AFFILIATED WITH MULTIPLE FACILITIES.

(a) Subject to the conditions in paragraph (d), when a license holder, applicant, or other

entity owns multiple programs or services that are licensed by the Department of Human

Services; Department of Children, Youth, and Families; Department of Health; or Department

of Corrections, only one background study is required for an individual who provides direct

contact services in one or more of the licensed programs or services if:

(1) the license holder designates one individual with one address and telephone number

as the person to receive sensitive background study information for the multiple licensed

programs or services that depend on the same background study; and

(2) the individual designated to receive the sensitive background study information is

capable of determining, upon request of the department, whether a background study subject

is providing direct contact services in one or more of the license holder's programs or services

and, if so, at which location or locations.

(b) When a license holder maintains background study compliance for multiple licensed

programs according to paragraph (a), and one or more of the licensed programs closes, the

license holder shall immediately notify the commissioner which staff must be transferred

to an active license so that the background studies can be electronically paired with the

license holder's active program.

(c) When a background study is being initiated by a licensed program or service or a

foster care provider that is also licensed under chapter 144G, a study subject affiliated with

multiple licensed programs or services may attach to the background study form a cover

letter indicating the additional names of the programs or services, addresses, and background

study identification numbers.

When the commissioner receives a notice, the commissioner shall notify each program

or service identified by the background study subject of the study results.

The background study notice the commissioner sends to the subsequent agencies shall

satisfy those programs' or services' responsibilities for initiating a background study on that

individual.

(d)
deleted text begin
If a background study was conducted on an individual related to child foster care

and the requirements under paragraph (a) are met, the background study is transferable

across all licensed programs.
deleted text end
If a background study was conducted on an individual under

a license other than child foster care and the requirements under paragraph (a) are met, the

background study is transferable to all licensed programs except child foster care.

(e) The provisions of this section that allow a single background study in one or more

licensed programs or services do not apply to background studies submitted by adoption

agencies, supplemental nursing services agencies, personnel pool agencies, educational

programs, professional services agencies, temporary personnel agencies, and unlicensed

personal care provider organizations.

(f) For an entity operating under NETStudy 2.0, the entity's active roster must be the

system used to document when a background study subject is affiliated with multiple entities.

For a background study to be transferable:

(1) the background study subject must be on and moving to a roster for which the person

designated to receive sensitive background study information is the same; and

(2) the same entity must own or legally control both the roster from which the transfer

is occurring and the roster to which the transfer is occurring. For an entity that holds or

controls multiple licenses, or unlicensed personal care provider organizations, there must

be a common highest level entity that has a legally identifiable structure that can be verified

through records available from the secretary of state.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2026.

new text end

Sec. 17.

Minnesota Statutes 2025 Supplement, section 245C.13, subdivision 2, is amended

to read:

Subd. 2.

Activities pending completion of background study.

The subject of a

background study may not perform any activity requiring a background study under

paragraph (c) until the commissioner has issued one of the notices under paragraph (a).

(a) Notices from the commissioner required prior to activity under paragraph (c) include:

(1) a notice of the study results under section
245C.17
stating that:

(i) the individual is not disqualified; or

(ii) more time is needed to complete the study but the individual is not required to be

removed from direct contact or access to people receiving services prior to completion of

the study as provided under section
245C.17, subdivision 1
, paragraph (b) or (c). The notice

that more time is needed to complete the study must also indicate whether the individual is

required to be under continuous direct supervision prior to completion of the background

study. When more time is necessary to complete a background study of an individual

affiliated with a Title IV-E eligible children's residential facility or foster residence setting,

the individual may not work in the facility or setting regardless of whether or not the

individual is supervised;

(2) a notice that a disqualification has been set aside under section
245C.23
; or

(3) a notice that a variance has been granted related to the individual under section

245C.30
.

(b) For a
new text begin
child care
new text end
background study
deleted text begin
affiliated with a licensed child care center or

certified license-exempt child care center
deleted text end
new text begin
subject required to submit fingerprints for a

national criminal history check, except as provided in section 245C.05, subdivision 5a
new text end
, the

notice sent under paragraph (a), clause (1), item (ii), must not be issued until the

commissioner receives a qualifying result for the individual for the fingerprint-based national

criminal history record check or the fingerprint-based criminal history information from

the Bureau of Criminal Apprehension. The notice must require the individual to be under

continuous direct supervision prior to completion of the remainder of the background study

except as permitted in subdivision 3.

(c) Activities prohibited prior to receipt of notice under paragraph (a) include:

(1) being issued a license;

(2) living in the household where the licensed program will be provided;

(3) providing direct contact services to persons served by a program unless the subject

is under continuous direct supervision;

(4) having access to persons receiving services if the background study was completed

under section
144.057, subdivision 1
, or
245C.03, subdivision 1
, paragraph (a), clause (2),

(5), or (6), unless the subject is under continuous direct supervision;

(5) for
deleted text begin
licensed child care centers and certified license-exempt child care centers
deleted text end
new text begin
a child

care background study subject
new text end
,
deleted text begin
providing direct contact services to persons served by the

program
deleted text end
new text begin
performing any act listed in section 245C.02, subdivision 6a, unless the study is

being renewed under section 245C.04, subdivision 1, paragraph (b), and it has been less

than five years since the child care background study subject was previously disqualified

or provided notice under paragraph (a), clause (1), item (i)
new text end
;

(6) for children's residential facilities or foster residence settings, working in the facility

or setting;

(7) for background studies affiliated with a personal care provider organization, except

as provided in section
245C.03, subdivision 3b
, before a personal care assistant provides

services, the personal care assistance provider agency must initiate a background study of

the personal care assistant under this chapter and the personal care assistance provider

agency must have received a notice from the commissioner that the personal care assistant

is:

(i) not disqualified under section
245C.14
; or

(ii) disqualified, but the personal care assistant has received a set aside of the

disqualification under section
245C.22
; or

(8) for background studies affiliated with an early intensive developmental and behavioral

intervention provider, before an individual provides services, the early intensive

developmental and behavioral intervention provider must initiate a background study for

the individual under this chapter and the early intensive developmental and behavioral

intervention provider must have received a notice from the commissioner that the individual

is:

(i) not disqualified under section
245C.14
; or

(ii) disqualified, but the individual has received a set-aside of the disqualification under

section
245C.22
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2026.

new text end

Sec. 18.

Minnesota Statutes 2024, section 245C.15, subdivision 2, is amended to read:

Subd. 2.

15-year disqualification.

(a) An individual is disqualified under section
245C.14

if: (1) less than 15 years have passed since the discharge of the sentence imposed, if any,

for the offense; and (2) the individual has committed a felony-level violation of any of the

following offenses: sections
152.021, subdivision 1
or 2b, (aggravated controlled substance

crime in the first degree; sale crimes);
152.022, subdivision 1
(controlled substance crime

in the second degree; sale crimes);
152.023, subdivision 1
(controlled substance crime in

the third degree; sale crimes);
152.024, subdivision 1
(controlled substance crime in the

fourth degree; sale crimes);
256.98
(wrongfully obtaining assistance);
268.182
(fraud);

393.07, subdivision 10
, paragraph (c) (federal SNAP fraud);
518B.01, subdivision 14

(violation of an order for protection);
609.165
(felon ineligible to possess firearm);
609.2112
,

609.2113
, or
609.2114
(criminal vehicular homicide or injury);
609.215
(suicide);
609.223

or
609.2231
(assault in the third or fourth degree); repeat offenses under
609.224
(assault

in the fifth degree);
609.229
(crimes committed for benefit of a gang);
609.2325
(criminal

abuse of a vulnerable adult);
new text begin
609.2334 (violation of an order for protection against financial

exploitation of a vulnerable adult);
new text end
609.2335
(financial exploitation of a vulnerable adult);

609.235
(use of drugs to injure or facilitate crime);
609.24
(simple robbery); 609.247,

subdivision 4 (carjacking in the third degree);
609.255
(false imprisonment);
609.2664

(manslaughter of an unborn child in the first degree);
609.2665
(manslaughter of an unborn

child in the second degree);
609.267
(assault of an unborn child in the first degree);
609.2671

(assault of an unborn child in the second degree);
609.268
(injury or death of an unborn

child in the commission of a crime);
609.27
(coercion);
609.275
(attempt to coerce);
609.466

(medical assistance fraud);
609.495
(aiding an offender);
609.498, subdivision 1
or 1b

(aggravated first-degree or first-degree tampering with a witness);
609.52
(theft);
609.521

(possession of shoplifting gear);
609.522
(organized retail theft);
609.525
(bringing stolen

goods into Minnesota);
609.527
(identity theft);
609.53
(receiving stolen property);
609.535

(issuance of dishonored checks);
new text begin
609.542 (illegal remunerations);
new text end
609.562
(arson in the

second degree);
609.563
(arson in the third degree);
609.582
(burglary);
609.59
(possession

of burglary tools);
609.611
(insurance fraud);
609.625
(aggravated forgery);
609.63
(forgery);

609.631
(check forgery; offering a forged check);
609.635
(obtaining signature by false

pretense);
609.66
(dangerous weapons);
609.67
(machine guns and short-barreled shotguns);

609.687
(adulteration);
609.71
(riot);
609.713
(terroristic threats);
609.746
(interference

with privacy);
609.82
(fraud in obtaining credit);
609.821
(financial transaction card fraud);

617.23
(indecent exposure), not involving a minor; repeat offenses under
617.241
(obscene

materials and performances; distribution and exhibition prohibited; penalty); or
624.713

(certain persons not to possess firearms).

(b) An individual is disqualified under section
245C.14
if less than 15 years has passed

since the individual's aiding and abetting, attempt, or conspiracy to commit any of the

offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.

(c) An individual is disqualified under section
245C.14
if less than 15 years has passed

since the termination of the individual's parental rights under section 260C.301, subdivision

1, paragraph (b), or subdivision 3.

(d) An individual is disqualified under section
245C.14
if less than 15 years has passed

since the discharge of the sentence imposed for an offense in any other state or country, the

elements of which are substantially similar to the elements of the offenses listed in paragraph

(a) or since the termination of parental rights in any other state or country, the elements of

which are substantially similar to the elements listed in paragraph (c).

(e) If the individual studied commits one of the offenses listed in paragraph (a), but the

sentence or level of offense is a gross misdemeanor or misdemeanor, the individual is

disqualified but the disqualification look-back period for the offense is the period applicable

to the gross misdemeanor or misdemeanor disposition.

(f) When a disqualification is based on a judicial determination other than a conviction,

the disqualification period begins from the date of the court order. When a disqualification

is based on an admission, the disqualification period begins from the date of an admission

in court. When a disqualification is based on an Alford Plea, the disqualification period

begins from the date the Alford Plea is entered in court. When a disqualification is based

on a preponderance of evidence of a disqualifying act, the disqualification date begins from

the date of the dismissal, the date of discharge of the sentence imposed for a conviction for

a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

Sec. 19.

Minnesota Statutes 2024, section 245C.15, subdivision 3, is amended to read:

Subd. 3.

Ten-year disqualification.

(a) An individual is disqualified under section

245C.14
if: (1) less than ten years have passed since the discharge of the sentence imposed,

if any, for the offense; and (2) the individual has committed a gross misdemeanor-level

violation of any of the following offenses: sections
256.98
(wrongfully obtaining assistance);

260B.425
(criminal jurisdiction for contributing to status as a juvenile petty offender or

delinquency);
260C.425
(criminal jurisdiction for contributing to need for protection or

services);
268.182
(fraud);
393.07, subdivision 10
, paragraph (c) (federal SNAP fraud);

609.2112
,
609.2113
, or
609.2114
(criminal vehicular homicide or injury);
609.221
or
609.222

(assault in the first or second degree);
609.223
or
609.2231
(assault in the third or fourth

degree);
609.224
(assault in the fifth degree);
609.224, subdivision 2
, paragraph (c) (assault

in the fifth degree by a caregiver against a vulnerable adult);
609.2242
and
609.2243

(domestic assault);
609.23
(mistreatment of persons confined);
609.231
(mistreatment of

residents or patients);
609.2325
(criminal abuse of a vulnerable adult);
609.233
(criminal

neglect of a vulnerable adult);
new text begin
609.2334 (violation of an order for protection against financial

exploitation of a vulnerable adult);
new text end
609.2335
(financial exploitation of a vulnerable adult);

609.234
(failure to report maltreatment of a vulnerable adult);
609.265
(abduction);
609.275

(attempt to coerce);
609.324, subdivision 1a
(other prohibited acts; minor engaged in

prostitution);
609.33
(disorderly house);
609.377
(malicious punishment of a child);
609.378

(neglect or endangerment of a child);
609.466
(medical assistance fraud);
609.52
(theft);

609.522
(organized retail theft);
609.525
(bringing stolen goods into Minnesota);
609.527

(identity theft);
609.53
(receiving stolen property);
609.535
(issuance of dishonored checks);

609.582
(burglary);
609.59
(possession of burglary tools);
609.611
(insurance fraud);
609.631

(check forgery; offering a forged check);
609.66
(dangerous weapons);
609.71
(riot);
609.72,

subdivision 3
(disorderly conduct against a vulnerable adult);
new text begin
609.746 (interference with

privacy);
new text end
609.749, subdivision 2
(harassment);
609.82
(fraud in obtaining credit);
609.821

(financial transaction card fraud);
617.23
(indecent exposure), not involving a minor;
617.241

(obscene materials and performances);
617.243
(indecent literature, distribution);
617.293

(harmful materials; dissemination and display to minors prohibited); or Minnesota Statutes

2012, section
609.21
; or violation of an order for protection under section
518B.01,

subdivision 14
.

(b) An individual is disqualified under section
245C.14
if less than ten years has passed

since the individual's aiding and abetting, attempt, or conspiracy to commit any of the

offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.

(c) An individual is disqualified under section
245C.14
if less than ten years has passed

since the discharge of the sentence imposed for an offense in any other state or country, the

elements of which are substantially similar to the elements of any of the offenses listed in

paragraph (a).

(d) If the individual studied commits one of the offenses listed in paragraph (a), but the

sentence or level of offense is a misdemeanor disposition, the individual is disqualified but

the disqualification lookback period for the offense is the period applicable to misdemeanors.

(e) When a disqualification is based on a judicial determination other than a conviction,

the disqualification period begins from the date of the court order. When a disqualification

is based on an admission, the disqualification period begins from the date of an admission

in court. When a disqualification is based on an Alford Plea, the disqualification period

begins from the date the Alford Plea is entered in court. When a disqualification is based

on a preponderance of evidence of a disqualifying act, the disqualification date begins from

the date of the dismissal, the date of discharge of the sentence imposed for a conviction for

a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

Sec. 20.

Minnesota Statutes 2024, section 245C.15, subdivision 4, is amended to read:

Subd. 4.

Seven-year disqualification.

(a) An individual is disqualified under section

245C.14
if: (1) less than seven years has passed since the discharge of the sentence imposed,

if any, for the offense; and (2) the individual has committed a misdemeanor-level violation

of any of the following offenses: sections
256.98
(wrongfully obtaining assistance);
260B.425

(criminal jurisdiction for contributing to status as a juvenile petty offender or delinquency);

260C.425
(criminal jurisdiction for contributing to need for protection or services);
268.182

(fraud);
393.07, subdivision 10
, paragraph (c) (federal SNAP fraud);
609.2112
,
609.2113
,

or
609.2114
(criminal vehicular homicide or injury);
609.221
(assault in the first degree);

609.222
(assault in the second degree);
609.223
(assault in the third degree);
609.2231

(assault in the fourth degree);
609.224
(assault in the fifth degree);
609.2242
(domestic

assault);
new text begin
609.2334 (violation of an order for protection against financial exploitation of a

vulnerable adult);
new text end
609.2335
(financial exploitation of a vulnerable adult);
609.234
(failure

to report maltreatment of a vulnerable adult);
609.2672
(assault of an unborn child in the

third degree);
609.27
(coercion); violation of an order for protection under
609.3232

(protective order authorized; procedures; penalties);
609.466
(medical assistance fraud);

609.52
(theft);
609.522
(organized retail theft);
609.525
(bringing stolen goods into

Minnesota);
609.527
(identity theft);
609.53
(receiving stolen property);
609.535
(issuance

of dishonored checks);
609.611
(insurance fraud);
609.66
(dangerous weapons);
609.665

(spring guns);
609.746
(interference with privacy);
609.79
(obscene or harassing telephone

calls);
609.795
(letter, telegram, or package; opening; harassment);
609.82
(fraud in obtaining

credit);
609.821
(financial transaction card fraud);
617.23
(indecent exposure), not involving

a minor;
617.293
(harmful materials; dissemination and display to minors prohibited); or

Minnesota Statutes 2012, section
609.21
; or violation of an order for protection under section

518B.01
(Domestic Abuse Act).

(b) An individual is disqualified under section
245C.14
if less than seven years has

passed since a determination or disposition of the individual's:

(1) failure to make required reports under section
260E.06
or
626.557, subdivision 3
,

for incidents in which: (i) the final disposition under section
626.557
or chapter 260E was

substantiated maltreatment, and (ii) the maltreatment was recurring or serious; or

(2) substantiated serious or recurring maltreatment of a minor under chapter 260E, a

vulnerable adult under section
626.557
, or serious or recurring maltreatment in any other

state, the elements of which are substantially similar to the elements of maltreatment under

section
626.557
or chapter 260E for which: (i) there is a preponderance of evidence that

the maltreatment occurred, and (ii) the subject was responsible for the maltreatment.

(c) An individual is disqualified under section
245C.14
if less than seven years has

passed since the individual's aiding and abetting, attempt, or conspiracy to commit any of

the offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota

Statutes.

(d) An individual is disqualified under section
245C.14
if less than seven years has

passed since the discharge of the sentence imposed for an offense in any other state or

country, the elements of which are substantially similar to the elements of any of the offenses

listed in paragraphs (a) and (b).

(e) When a disqualification is based on a judicial determination other than a conviction,

the disqualification period begins from the date of the court order. When a disqualification

is based on an admission, the disqualification period begins from the date of an admission

in court. When a disqualification is based on an Alford Plea, the disqualification period

begins from the date the Alford Plea is entered in court. When a disqualification is based

on a preponderance of evidence of a disqualifying act, the disqualification date begins from

the date of the dismissal, the date of discharge of the sentence imposed for a conviction for

a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

(f) An individual is disqualified under section
245C.14
if less than seven years has passed

since the individual was disqualified under section
256.98, subdivision 8
.

Sec. 21.

Minnesota Statutes 2025 Supplement, section 245C.15, subdivision 4a, is amended

to read:

Subd. 4a.

Licensed family foster setting disqualifications.

(a) Notwithstanding

subdivisions 1 to 4
new text begin
, 4b, and 4c
new text end
, for a background study affiliated with a licensed family

foster setting, regardless of how much time has passed, an individual is disqualified under

section
245C.14
if the individual committed an act that resulted in a felony-level conviction

for sections:
609.185
(murder in the first degree);
609.19
(murder in the second degree);

609.195
(murder in the third degree);
609.20
(manslaughter in the first degree);
609.205

(manslaughter in the second degree);
609.2112
(criminal vehicular homicide);
609.221

(assault in the first degree);
609.223, subdivision 2
(assault in the third degree, past pattern

of child abuse);
609.223, subdivision 3
(assault in the third degree, victim under four); a

felony offense under sections
609.2242
and
609.2243
(domestic assault, spousal abuse,

child abuse or neglect, or a crime against children);
609.2247
(domestic assault by

strangulation);
609.2325
(criminal abuse of a vulnerable adult resulting in the death of a

vulnerable adult);
609.245
(aggravated robbery);
609.247, subdivision 2
or 3 (carjacking

in the first or second degree);
609.25
(kidnapping);
609.255
(false imprisonment);
609.2661

(murder of an unborn child in the first degree);
609.2662
(murder of an unborn child in the

second degree);
609.2663
(murder of an unborn child in the third degree);
609.2664

(manslaughter of an unborn child in the first degree);
609.2665
(manslaughter of an unborn

child in the second degree);
609.267
(assault of an unborn child in the first degree);
609.2671

(assault of an unborn child in the second degree);
609.268
(injury or death of an unborn

child in the commission of a crime);
609.322, subdivision 1
(solicitation, inducement, and

promotion of prostitution; sex trafficking in the first degree);
609.324, subdivision 1
(other

prohibited acts; engaging in, hiring, or agreeing to hire minor to engage in prostitution);

609.342
(criminal sexual conduct in the first degree);
609.343
(criminal sexual conduct in

the second degree);
609.344
(criminal sexual conduct in the third degree);
609.345
(criminal

sexual conduct in the fourth degree);
609.3451
(criminal sexual conduct in the fifth degree);

609.3453
(criminal sexual predatory conduct);
609.3458
(sexual extortion);
609.352

(solicitation of children to engage in sexual conduct);
609.377
(malicious punishment of a

child);
609.3775
(child torture);
609.378
(neglect or endangerment of a child);
609.561

(arson in the first degree);
609.582, subdivision 1
(burglary in the first degree);
609.746

(interference with privacy);
617.23
(indecent exposure);
617.246
(use of minors in sexual

performance prohibited); or
617.247
(possession of child sexual abuse material).

(b) Notwithstanding subdivisions 1 to 4
new text begin
, 4b, and 4c
new text end
, for the purposes of a background

study affiliated with a licensed family foster setting, an individual is disqualified under

section
245C.14
, regardless of how much time has passed, if the individual:

(1) committed an action under paragraph (e) that resulted in death or involved sexual

abuse, as defined in section
260E.03, subdivision 20
;

(2) committed an act that resulted in a gross misdemeanor-level conviction for section

609.3451
(criminal sexual conduct in the fifth degree);

(3) committed an act against or involving a minor that resulted in a felony-level conviction

for: section
609.222
(assault in the second degree);
609.223, subdivision 1
(assault in the

third degree);
609.2231
(assault in the fourth degree); or
609.224
(assault in the fifth degree);

or

(4) committed an act that resulted in a misdemeanor or gross misdemeanor-level

conviction for section
617.293
(dissemination and display of harmful materials to minors).

(c) Notwithstanding subdivisions 1 to 4
new text begin
, 4b, and 4c
new text end
, for a background study affiliated

with a licensed family foster setting, an individual is disqualified under section
245C.14
if

fewer than 20 years have passed since the termination of the individual's parental rights

under section
260C.301, subdivision 1
, paragraph (b), or if the individual consented to a

termination of parental rights under section
260C.301, subdivision 1
, paragraph (a), to settle

a petition to involuntarily terminate parental rights. An individual is disqualified under

section
245C.14
if fewer than 20 years have passed since the termination of the individual's

parental rights in any other state or country, where the conditions for the individual's

termination of parental rights are substantially similar to the conditions in section
260C.301,

subdivision 1
, paragraph (b).

(d) Notwithstanding subdivisions 1 to 4
new text begin
, 4b, and 4c
new text end
, for a background study affiliated

with a licensed family foster setting, an individual is disqualified under section
245C.14
if

fewer than five years have passed since a felony-level violation for sections:
152.021

(controlled substance crime in the first degree);
152.022
(controlled substance crime in the

second degree);
152.023
(controlled substance crime in the third degree);
152.024
(controlled

substance crime in the fourth degree);
152.025
(controlled substance crime in the fifth

degree);
152.0261
(importing controlled substances across state borders);
152.0262,

subdivision 1
, paragraph (b) (possession of substance with intent to manufacture

methamphetamine);
152.027, subdivision
6, paragraph (c) (sale or possession of synthetic

cannabinoids);
152.096
(conspiracies prohibited);
152.097
(simulated controlled substances);

152.136
(anhydrous ammonia; prohibited conduct; criminal penalties; civil liabilities);

152.137
(fentanyl- and methamphetamine-related crimes involving children or vulnerable

adults);
169A.24
(felony first-degree driving while impaired);
243.166
(violation of predatory

offender registration requirements);
609.2113
(criminal vehicular operation; bodily harm);

609.2114
(criminal vehicular operation; unborn child);
609.228
(great bodily harm caused

by distribution of drugs);
609.2325
(criminal abuse of a vulnerable adult not resulting in

the death of a vulnerable adult);
609.233
(criminal neglect);
609.235
(use of drugs to injure

or facilitate a crime);
609.24
(simple robbery);
609.247, subdivision 4
(carjacking in the

third degree);
609.322, subdivision 1a
(solicitation, inducement, and promotion of

prostitution; sex trafficking in the second degree);
609.498, subdivision 1
(tampering with

a witness in the first degree);
609.498, subdivision 1b
(aggravated first-degree witness

tampering);
609.562
(arson in the second degree);
609.563
(arson in the third degree);

609.582, subdivision 2
(burglary in the second degree);
609.66
(felony dangerous weapons);

609.687
(adulteration);
609.713
(terroristic threats);
609.749, subdivision 3
, 4, or 5

(felony-level harassment or stalking);
609.855, subdivision 5
(shooting at or in a public

transit vehicle or facility); or
624.713
(certain people not to possess firearms).

(e) Notwithstanding subdivisions 1 to 4
new text begin
, 4b, and 4c
new text end
, except as provided in paragraph

(a), for a background study affiliated with a licensed family child foster care license, an

individual is disqualified under section
245C.14
if fewer than five years have passed since:

(1) a felony-level violation for an act not against or involving a minor that constitutes:

section
609.222
(assault in the second degree);
609.223, subdivision 1
(assault in the third

degree);
609.2231
(assault in the fourth degree); or
609.224, subdivision 4
(assault in the

fifth degree);

(2) a violation of an order for protection under section
518B.01, subdivision 14
;

(3) a determination or disposition of the individual's failure to make required reports

under section
260E.06
or
626.557, subdivision 3
, for incidents in which the final disposition

under chapter 260E or section
626.557
was substantiated maltreatment and the maltreatment

was recurring or serious;

(4) a determination or disposition of the individual's substantiated serious or recurring

maltreatment of a minor under chapter 260E, a vulnerable adult under section
626.557
, or

serious or recurring maltreatment in any other state, the elements of which are substantially

similar to the elements of maltreatment under chapter 260E or section
626.557
and meet

the definition of serious maltreatment or recurring maltreatment;

(5) a gross misdemeanor-level violation for sections:
609.224, subdivision 2
(assault in

the fifth degree);
609.2242
and
609.2243
(domestic assault);
609.233
(criminal neglect);

609.377
(malicious punishment of a child);
609.378
(neglect or endangerment of a child);

609.746
(interference with privacy);
609.749
(stalking); or
617.23
(indecent exposure); or

(6) committing an act against or involving a minor that resulted in a misdemeanor-level

violation of section
609.224, subdivision 1
(assault in the fifth degree).

(f) For purposes of this subdivision, the disqualification begins from:

(1) the date of the alleged violation, if the individual was not convicted;

(2) the date of conviction, if the individual was convicted of the violation but not

committed to the custody of the commissioner of corrections; or

(3) the date of release from prison, if the individual was convicted of the violation and

committed to the custody of the commissioner of corrections.

Notwithstanding clause (3), if the individual is subsequently reincarcerated for a violation

of the individual's supervised release, the disqualification begins from the date of release

from the subsequent incarceration.

(g) An individual's aiding and abetting, attempt, or conspiracy to commit any of the

offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota

Statutes, permanently disqualifies the individual under section
245C.14
. An individual is

disqualified under section
245C.14
if fewer than five years have passed since the individual's

aiding and abetting, attempt, or conspiracy to commit any of the offenses listed in paragraphs

(d) and (e).

(h) An individual's offense in any other state or country, where the elements of the

offense are substantially similar to any of the offenses listed in paragraphs (a) and (b),

permanently disqualifies the individual under section
245C.14
. An individual is disqualified

under section
245C.14
if fewer than five years have passed since an offense in any other

state or country, the elements of which are substantially similar to the elements of any

offense listed in paragraphs (d) and (e).

Sec. 22.

Minnesota Statutes 2025 Supplement, section 245C.22, subdivision 5, is amended

to read:

Subd. 5.

Scope of set-aside.

(a) If the commissioner sets aside a disqualification under

this section, the disqualified individual remains disqualified, but may hold a license and

have direct contact with or access to persons receiving services. Except as provided in

paragraph (b), the commissioner's set-aside of a disqualification is limited solely to the

licensed program, applicant, or agency specified in the set aside notice under section
245C.23
.

For personal care provider organizations, financial management services organizations,

community first services and supports organizations, unlicensed home and community-based

organizations, and consumer-directed community supports organizations, the commissioner's

set-aside may further be limited to a specific individual who is receiving services. For new

background studies required under section
245C.04, subdivision 1
, paragraph
deleted text begin
(h)
deleted text end
new text begin
(g)
new text end
, if an

individual's disqualification was previously set aside for the license holder's program and

the new background study results in no new information that indicates the individual may

pose a risk of harm to persons receiving services from the license holder, the previous

set-aside shall remain in effect.

(b) If the commissioner has previously set aside an individual's disqualification for one

or more programs or agencies, and the individual is the subject of a subsequent background

study for a different program or agency, the commissioner shall determine whether the

disqualification is set aside for the program or agency that initiated the subsequent

background study. A notice of a set-aside under paragraph (c) shall be issued within 15

working days if all of the following criteria are met:

(1) the subsequent background study was initiated in connection with a program licensed

or regulated under the same provisions of law and rule for at least one program for which

the individual's disqualification was previously set aside by the commissioner;

(2) the individual is not disqualified for an offense specified in section
245C.15,

subdivision 1 or 2
;

(3) the commissioner has received no new information to indicate that the individual

may pose a risk of harm to any person served by the program; and

(4) the previous set-aside was not limited to a specific person receiving services.

(c) Notwithstanding paragraph (b), clause (2), for an individual who is employed in the

substance use disorder field, if the commissioner has previously set aside an individual's

disqualification for one or more programs or agencies in the substance use disorder treatment

field, and the individual is the subject of a subsequent background study for a different

program or agency in the substance use disorder treatment field, the commissioner shall set

aside the disqualification for the program or agency in the substance use disorder treatment

field that initiated the subsequent background study when the criteria under paragraph (b),

clauses (1), (3), and (4), are met and the individual is not disqualified for an offense specified

in section
245C.15, subdivision 1
. A notice of a set-aside under paragraph (d) shall be issued

within 15 working days.

(d) When a disqualification is set aside under paragraph (b), the notice of background

study results issued under section
245C.17
, in addition to the requirements under section

245C.17
, shall state that the disqualification is set aside for the program or agency that

initiated the subsequent background study. The notice must inform the individual that the

individual may request reconsideration of the disqualification under section
245C.21
on the

basis that the information used to disqualify the individual is incorrect.

Sec. 23.

Minnesota Statutes 2024, section 245C.24, subdivision 2, is amended to read:

Subd. 2.

Permanent bar to set aside a disqualification.

(a) Except as provided in

paragraphs (b) to
deleted text begin
(g)
deleted text end
new text begin
(f)
new text end
, the commissioner may not set aside the disqualification of any

individual disqualified pursuant to this chapter, regardless of how much time has passed,

if the individual was disqualified for a crime or conduct listed in section
245C.15, subdivision

1
.

(b) For an individual in the substance use disorder or corrections field who was

disqualified for a crime or conduct listed under section
245C.15
, subdivision 1, and whose

disqualification was set aside prior to July 1, 2005, the commissioner must consider granting

a variance pursuant to section
245C.30
for the license holder for a program dealing primarily

with adults. A request for reconsideration evaluated under this paragraph must include a

letter of recommendation from the license holder that was subject to the prior set-aside

decision addressing the individual's quality of care to children or vulnerable adults and the

circumstances of the individual's departure from that service.

(c) If an individual who requires a background study for nonemergency medical

transportation services under section
245C.03, subdivision 12
, was disqualified for a crime

or conduct listed under section
245C.15, subdivision 1
, and if more than 40 years have

passed since the discharge of the sentence imposed, the commissioner may consider granting

a set-aside pursuant to section
245C.22
. A request for reconsideration evaluated under this

paragraph must include a letter of recommendation from the employer. This paragraph does

not apply to a person disqualified based on a violation of sections
243.166
;
609.185
to

609.205
;
609.25
;
609.342
to
609.3453
;
609.352
;
617.23, subdivision 2
, clause (1), or 3,

clause (1);
617.246
; or
617.247
.

(d) When a licensed foster care provider adopts an individual who had received foster

care services from the provider for over six months, and the adopted individual is required

to receive a background study under section
245C.03, subdivision 1
, paragraph (a), clause

(2) or (6), the commissioner may grant a variance to the license holder under section
245C.30

to permit the adopted individual with a permanent disqualification to remain affiliated with

the license holder under the conditions of the variance when the variance is recommended

by the county of responsibility for each of the remaining individuals in placement in the

home and the licensing agency for the home.

(e) For an individual 18 years of age or older affiliated with a licensed family foster

setting, the commissioner must not set aside or grant a variance for the disqualification of

any individual disqualified pursuant to this chapter, regardless of how much time has passed,

if the individual was disqualified for a crime or conduct listed in section
245C.15, subdivision

4a, paragraphs (a) and (b).

(f) In connection with a family foster setting license, the commissioner may grant a

variance to the disqualification for an individual who is under 18 years of age at the time

the background study is submitted.

deleted text begin

(g) In connection with foster residence settings and children's residential facilities, the

commissioner must not set aside or grant a variance for the disqualification of any individual

disqualified pursuant to this chapter, regardless of how much time has passed, if the individual

was disqualified for a crime or conduct listed in section
245C.15, subdivision 4a
, paragraph

(a) or (b).

deleted text end

Sec. 24.

Minnesota Statutes 2024, section 245D.04, subdivision 3, is amended to read:

Subd. 3.

Protection-related rights.

(a) A person's protection-related rights include the

right to:

(1) have personal, financial, service, health, and medical information kept private, and

be advised of disclosure of this information by the license holder;

(2) access records and recorded information about the person in accordance with

applicable state and federal law, regulation, or rule;

(3) be free from maltreatment;

(4) be free from restraint, time out, seclusion, restrictive intervention, or other prohibited

procedure identified in section
245D.06, subdivision 5
, or successor provisions, except for:

(i) emergency use of manual restraint to protect the person from imminent danger to self

or others according to the requirements in section
245D.061
or successor provisions; or (ii)

the use of safety interventions as part of a positive support transition plan under section

245D.06, subdivision 8
, or successor provisions;

(5) receive services in a clean and safe environment when the license holder is the owner,

lessor, or tenant of the service site;

(6) be treated with courtesy and respect and receive respectful treatment of the person's

property;

(7) reasonable observance of cultural and ethnic practice and religion;

(8) be free from bias and harassment regarding race, gender, age, disability, spirituality,

and sexual orientation;

(9) be informed of and use the license holder's grievance policy and procedures, including

knowing how to contact persons responsible for addressing problems and to appeal under

section
256.045
;

(10) know the name, telephone number, and the website, email, and street addresses of

protection and advocacy services, including the appropriate state-appointed ombudsman,

and a brief description of how to file a complaint with these offices;

(11) assert these rights personally, or have them asserted by the person's family,

authorized representative, or legal representative, without retaliation;

(12) give or withhold written informed consent to participate in any research or

experimental treatment;

(13) associate with other persons of the person's choice in the community;

(14) personal privacy, including the right to use the lock on the person's bedroom or unit

door;

(15) engage in chosen activities; and

(16) access to the person's personal possessions at any time, including financial resources.

(b) For a person residing in a residential site licensed according to chapter 245A, or

where the license holder is the owner, lessor, or tenant of the residential service site,

protection-related rights also include the right to:

(1) have daily, private access to and use of a non-coin-operated telephone for local calls

and long-distance calls made collect or paid for by the person;

(2) receive and send, without interference, uncensored, unopened mail or electronic

correspondence or communication;

(3) have use of and free access to common areas in the residence and the freedom to

come and go from the residence at will;

(4) choose the person's visitors and time of visits and have privacy for visits with the

person's spouse, next of kin, legal counsel, religious adviser, or others, in accordance with

section
363A.09
of the Human Rights Act, including privacy in the person's bedroom;

(5) have access to three nutritionally balanced meals and nutritious snacks between

meals each day;

(6) have freedom and support to access food and potable water at any time;

(7) have the freedom to furnish and decorate the person's bedroom or living unit;

(8) a setting that is clean and free from accumulation of dirt, grease, garbage, peeling

paint, mold, vermin, and insects;

(9) a setting that is free from hazards that threaten the person's health or safety; and

(10) a setting that meets the definition of a dwelling unit within a residential occupancy

as defined in the State Fire Code.

(c) Restriction of a person's rights under paragraph (a), clauses (13) to (16), or paragraph

(b)
new text begin
, clauses (1) to (7),
new text end
is allowed only if determined necessary to ensure the health, safety,

and well-being of the person. Any restriction of those rights must be documented in the

person's support plan or support plan addendum. The restriction must be implemented in

the least restrictive alternative manner necessary to protect the person and provide support

to reduce or eliminate the need for the restriction in the most integrated setting and inclusive

manner. The documentation must include the following information:

(1) the justification for the restriction based on an assessment of the person's vulnerability

related to exercising the right without restriction;

(2) the objective measures set as conditions for ending the restriction;

(3) a schedule for reviewing the need for the restriction based on the conditions for

ending the restriction to occur semiannually from the date of initial approval, at a minimum,

or more frequently if requested by the person, the person's legal representative, if any, and

case manager; and

(4) signed and dated approval for the restriction from the person, or the person's legal

representative, if any. A restriction may be implemented only when the required approval

has been obtained. Approval may be withdrawn at any time. If approval is withdrawn, the

right must be immediately and fully restored.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 25.

Minnesota Statutes 2024, section 245D.10, subdivision 4, is amended to read:

Subd. 4.

Availability of current written policies and procedures.

(a) The license

holder must review and update, as needed, the written policies and procedures required

under this chapter.

(b)(1) The license holder must inform the person
new text begin
or the person's legal representative
new text end
and

case manager of the policies and procedures affecting a person's rights under section
245D.04
,

and provide copies of those policies and procedures, within five working days of service

initiation.

(2) If a license holder only provides basic services and supports, this includes the:

(i) grievance policy and procedure required under subdivision 2;
deleted text begin
and
deleted text end

(ii) service suspension and termination policy and procedure required under subdivision

3
deleted text begin
.
deleted text end
new text begin
; and
new text end

new text begin

(iii) emergency use of manual restraints policy and procedure required under section

245D.061, subdivision 9, or successor provisions.

new text end

(3) For all other license holders this includes the:

(i) policies and procedures in clause (2);
new text begin
and
new text end

deleted text begin

(ii) emergency use of manual restraints policy and procedure required under section

245D.061, subdivision 9
, or successor provisions; and

deleted text end

deleted text begin

(iii)
deleted text end
new text begin
(ii)
new text end
data privacy requirements under section
245D.11, subdivision 3
.

(c) The license holder must provide a written notice to all persons or their legal

representatives and case managers at least 30 days before implementing any procedural

revisions to policies affecting a person's service-related or protection-related rights under

section
245D.04
and maltreatment reporting policies and procedures. The notice must

explain the revision that was made and include a copy of the revised policy and procedure.

The license holder must document the reasonable cause for not providing the notice at least

30 days before implementing the revisions.

(d) Before implementing revisions to required policies and procedures, the license holder

must inform all employees of the revisions and provide training on implementation of the

revised policies and procedures.

(e) The license holder must annually notify all persons, or their legal representatives,

and case managers of any procedural revisions to policies required under this chapter, other

than those in paragraph (c). Upon request, the license holder must provide the person, or

the person's legal representative, and case manager with copies of the revised policies and

procedures.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 26.

Minnesota Statutes 2024, section 256B.02, is amended by adding a subdivision

to read:

new text begin

Subd. 20.

new text end

new text begin

Fraud.

new text end

new text begin

"Fraud" means an intentional deception or misrepresentation made by

a person with the knowledge that the deception could result in an unauthorized benefit to

the person or another person. Fraud includes:

new text end

new text begin

(1) the following crimes, including attempts or conspiracy to commit the crimes:

new text end

new text begin

(i) theft in violation of section 609.52;

new text end

new text begin

(ii) perjury in violation of section 609.48;

new text end

new text begin

(iii) aggravated forgery and forgery in violation of sections 609.625 and 609.63;

new text end

new text begin

(iv) medical assistance fraud in violation of section 609.466;

new text end

new text begin

(v) financial transaction card fraud in violation of section 609.821;

new text end

new text begin

(vi) wrongfully obtaining assistance in violation of section 256.98;

new text end

new text begin

(vii) illegal remunerations in violation of section 609.542; and

new text end

new text begin

(viii) a felony listed in United States Code, title 42, section 1320a-7b(b)(1) or (2), subject

to any safe harbors established in Code of Federal Regulations, title 42, part 1001, section

952;

new text end

new text begin

(2) any act that constitutes fraud under applicable federal or state law, including but not

limited to knowingly and willfully submitting an application for provider status that is false

or fraudulent in whole or in part; and

new text end

new text begin

(3) an intentional submission of a claim for reimbursement under chapter 256B, knowing

or having reason to know the claim is ineligible for reimbursement in whole or in part and

acting with the intent to defraud the payor.

new text end

Sec. 27.

Minnesota Statutes 2024, section 256B.04, subdivision 10, is amended to read:

Subd. 10.

Investigation of certain claims.

new text begin
The commissioner must
new text end
establish by rule

general criteria and procedures for the identification and prompt investigation of suspected

medical assistance fraud, theft, abuse, presentment of false or duplicate claims, presentment

of claims for services not
new text begin
reasonable or
new text end
medically necessary, or false statement or

representation of material facts by a vendor of medical care
deleted text begin
, and for the imposition of

sanctions against a vendor of medical care
deleted text end
.
new text begin
The commissioner may utilize both prepayment

and postpayment review systems to review claims submitted by vendors. Payment of claims,

including payments made after a prepayment review, does not prohibit the commissioner

from completing a postpayment claims review and taking additional administrative actions

or monetary recovery against a vendor.
new text end
If it appears to the state agency that a vendor of

medical care may have acted in a manner warranting civil or criminal proceedings, it shall

so inform the attorney general in writing.

Sec. 28.

Minnesota Statutes 2024, section 256B.064, subdivision 2, is amended to read:

Subd. 2.

Imposition of monetary recovery and sanctions.

(a) The commissioner shall

determine any monetary amounts to be recovered and sanctions to be imposed upon an

individual or entity under this section. Except as provided in paragraphs (b) and (d), neither

a monetary recovery nor a sanction will be imposed by the commissioner without prior

notice and an opportunity for a hearing, according to chapter 14, on the commissioner's

proposed action, provided that the commissioner may suspend or reduce payment to an

individual or entity, except a nursing home or convalescent care facility, after notice and

prior to the hearing if in the commissioner's opinion that action is necessary to protect the

public welfare and the interests of the program.

(b) Except when the commissioner finds good cause not to suspend payments under

Code of Federal Regulations, title 42, section 455.23(e) or (f), the commissioner shall

withhold or reduce payments to an individual or entity without providing advance notice

of such withholding or reduction if either of the following occurs:

(1) the individual or entity is convicted of a crime involving the conduct described in

subdivision 1a; or

(2) the commissioner determines there is a credible allegation of fraud for which an

investigation is pending under the program. Allegations are considered credible when they

have an indicium of reliability and the state agency has reviewed all allegations, facts, and

evidence carefully and acts judiciously on a case-by-case basis. A credible allegation of

fraud is an allegation which has been verified by the state, from any source, including but

not limited to:

(i) fraud hotline complaints;

(ii) claims data mining; and

(iii) patterns identified through provider audits, civil false claims cases, and law

enforcement investigations.

(c) The commissioner must send notice of the withholding or reduction of payments

under paragraph (b) within five days of taking such action unless requested in writing by a

law enforcement agency to temporarily withhold the notice. The notice must:

(1) state that payments are being withheld according to paragraph (b);

(2) set forth the general allegations as to the nature of the withholding action, but need

not disclose any specific information concerning an ongoing investigation;

(3) except in the case of a conviction for conduct described in subdivision 1a, state that

the withholding is for a temporary period and cite the circumstances under which withholding

will be terminated;

(4) identify the types of claims to which the withholding applies; and

(5) inform the individual or entity of the right to submit written evidence for consideration

by the commissioner.

new text begin

The withholding of payments under paragraph (b) is a temporary action and is not subject

to a contested case for the purposes of chapter 14 nor subject to appeal under section 256.045.

new text end

(d) The withholding or reduction of payments will not continue after the commissioner

determines there is insufficient evidence of fraud by the individual or entity, or after legal

proceedings relating to the alleged fraud are completed, unless the commissioner has sent

notice of intention to impose monetary recovery or sanctions under paragraph (a). Upon

conviction for a crime related to the provision, management, or administration of a health

service under medical assistance, a payment held pursuant to this section by the commissioner

or a managed care organization that contracts with the commissioner under section
256B.035

is forfeited to the commissioner or managed care organization, regardless of the amount

charged in the criminal complaint or the amount of criminal restitution ordered.

(e) The commissioner shall suspend or terminate an individual's or entity's participation

in the program without providing advance notice and an opportunity for a hearing when the

suspension or termination is required because of the individual's or entity's exclusion from

participation in Medicare. Within five days of taking such action, the commissioner must

send notice of the suspension or termination. The notice must:

(1) state that suspension or termination is the result of the individual's or entity's exclusion

from Medicare;

(2) identify the effective date of the suspension or termination; and

(3) inform the individual or entity of the need to be reinstated to Medicare before

reapplying for participation in the program.

(f) Upon receipt of a notice under paragraph (a) that a monetary recovery or sanction is

to be imposed, an individual or entity may request a contested case, as defined in section

14.02, subdivision 3
, by filing with the commissioner a written request of appeal. The appeal

request must be received by the commissioner no later than 30 days after the date the

notification of monetary recovery or sanction was mailed to the individual or entity. The

appeal request must specify:

(1) each disputed item, the reason for the dispute, and an estimate of the dollar amount

involved for each disputed item;

(2) the computation that the individual or entity believes is correct;

(3) the authority in statute or rule upon which the individual or entity relies for each

disputed item;

(4) the name and address of the person or entity with whom contacts may be made

regarding the appeal; and

(5) other information required by the commissioner.

(g) The commissioner may order an individual or entity to forfeit a fine for failure to

fully document services according to standards in this chapter and Minnesota Rules, chapter

9505. The commissioner may assess fines if specific required components of documentation

are missing. The fine for incomplete documentation shall equal 20 percent of the amount

paid on the claims for reimbursement submitted by the individual or entity, or up to $5,000,

whichever is less. If the commissioner determines that an individual or entity repeatedly

violated this chapter, chapter 254B or 245G, or Minnesota Rules, chapter 9505, related to

the provision of services to program recipients and the submission of claims for payment,

the commissioner may order an individual or entity to forfeit a fine based on the nature,

severity, and chronicity of the violations, in an amount of up to $5,000 or 20 percent of the

value of the claims, whichever is greater.

(h) The individual or entity shall pay the fine assessed on or before the payment date

specified. If the individual or entity fails to pay the fine, the commissioner may withhold

or reduce payments and recover the amount of the fine. A timely appeal shall stay payment

of the fine until the commissioner issues a final order.

new text begin

(i) Section 15.013 does not apply to the commissioner taking action under this section.

new text end

Sec. 29.

Minnesota Statutes 2024, section 256B.27, subdivision 3, is amended to read:

Subd. 3.

Access to medical records.

The commissioner of human services, with the

written consent of the recipient, on file with the local welfare agency, shall be allowed

access in the manner and within the time prescribed by the commissioner to all personal

medical records of medical assistance recipients solely for the purposes of investigating

whether or not: (a) a vendor of medical care has submitted a claim for reimbursement, a

cost report or a rate application which is duplicative, erroneous, or false in whole or in part,

or which results in the vendor obtaining greater compensation than the vendor is legally

entitled to; or (b) the medical care was medically necessary.
deleted text begin
When the commissioner is

investigating a possible overpayment of Medicaid funds,
deleted text end
new text begin
The commissioner may conduct

on-site inspections of any and all vendors and service locations or may request records from

a vendor to verify that information submitted to the commissioner is accurate, determine

compliance with service delivery and billing requirements, and determine compliance with

any other applicable laws or rules.
new text end
The commissioner must be given immediate access

without prior notice to the vendor's office during regular business hours and to documentation

and records related to services provided and submission of claims for services provided.

The department shall document in writing the need for immediate access to records related

to a specific investigation. Denying the commissioner access to records is cause for the

vendor's immediate suspension of payment or termination according to section
256B.064
.

The determination of provision of services not medically necessary shall be made by the

commissioner. Notwithstanding any other law to the contrary, a vendor of medical care

shall not be subject to any civil or criminal liability for providing access to medical records

to the commissioner of human services pursuant to this section.

Sec. 30.

Minnesota Statutes 2025 Supplement, section 260E.03, subdivision 6, is amended

to read:

Subd. 6.

Facility.

"Facility" means:

(1) a licensed or unlicensed day care facility, certified license-exempt child care center,

residential facility, agency,
new text begin
psychiatric residential treatment facility,
new text end
hospital, sanitarium,

or other facility or institution required to be licensed under sections
144.50
to
144.58
,

241.021
, or
245A.01
to
245A.16
, or chapter 142B, 142C, 144H, or 245D;

(2) a school as defined in section
120A.05, subdivisions 9
, 11, and 13; and chapter 124E;

or

(3) a nonlicensed personal care provider organization as defined in section
256B.0625
,

subdivision 19a.

Sec. 31.

Minnesota Statutes 2025 Supplement, section 260E.11, subdivision 1, is amended

to read:

Subdivision 1.

Reports of maltreatment in facility.

A person mandated to report child

maltreatment occurring within a licensed facility shall report the information to the agency

responsible for licensing or certifying the facility under sections
144.50
to
144.58
,
241.021
,

and
245A.01
to
245A.16
or chapter 142B, 142C, 144H, or 245D or to a nonlicensed personal

care provider organization as defined in section
256B.0625, subdivision 19a
.
new text begin
A person

mandated to report child maltreatment occurring within a federally certified psychiatric

residential treatment facility must report the information to the Department of Health.
new text end

Sec. 32.

Minnesota Statutes 2025 Supplement, section 260E.14, subdivision 1, is amended

to read:

Subdivision 1.

Facilities and schools.

(a) The local welfare agency is the agency

responsible for investigating allegations of maltreatment in child foster care, family child

care, legally nonlicensed child care, and reports involving children served by an unlicensed

personal care provider organization under section
256B.0659
. Copies of findings related to

personal care provider organizations under section
256B.0659
must be forwarded to the

Department of Human Services provider enrollment.

(b) The Department of Human Services is the agency responsible for screening and

investigating allegations of maltreatment in juvenile correctional facilities listed under

section
241.021
located in the local welfare agency's county and in facilities licensed or

certified under chapters 245A and 245D
new text begin
, except federally certified psychiatric residential

treatment facilities
new text end
.

(c) The Department of Health is the agency responsible for screening and investigating

allegations of maltreatment in facilities licensed under sections
144.50
to
144.58
and
144A.43

to
144A.482

deleted text begin
or
deleted text end
new text begin
,
new text end
chapter 144H
new text begin
, or federally certified as a psychiatric residential treatment

facility
new text end
.

(d) The Department of Education is the agency responsible for screening and investigating

allegations of maltreatment in a school as defined in section
120A.05, subdivisions 9, 11,

and 13
, and chapter 124E. The Department of Education's responsibility to screen and

investigate includes allegations of maltreatment involving students 18 through 21 years of

age, including students receiving special education services, up to and including graduation

and the issuance of a secondary or high school diploma.

(e) The Department of Human Services is the agency responsible for screening and

investigating allegations of maltreatment of minors in an EIDBI agency operating under

sections
245A.142
and
256B.0949
.

(f) A health or corrections agency receiving a report may request the local welfare agency

to provide assistance pursuant to this section and sections
260E.20
and
260E.22
.

(g) The Department of Children, Youth, and Families is the agency responsible for

screening and investigating allegations of maltreatment in facilities or programs not listed

in paragraph (a) that are licensed or certified under chapters 142B and 142C.

Sec. 33.

Minnesota Statutes 2025 Supplement, section 626.5572, subdivision 13, is amended

to read:

Subd. 13.

Lead investigative agency.

"Lead investigative agency" is the primary

administrative agency responsible for investigating reports made under section
626.557
.

(a) The Department of Health is the lead investigative agency for facilities or services

licensed or required to be licensed as hospitals, home care providers, nursing homes, boarding

care homes, hospice providers, residential facilities that are also federally certified as

intermediate care facilities that serve people with developmental disabilities,
new text begin
federally

certified psychiatric residential treatment facilities,
new text end
or any other facility or service not listed

in this subdivision that is licensed or required to be licensed by the Department of Health

for the care of vulnerable adults. "Home care provider" has the meaning provided in section

144A.43, subdivision 4
, and applies when care or services are delivered in the vulnerable

adult's home.

(b) The Department of Human Services is the lead investigative agency for facilities or

services licensed or required to be licensed as adult day care, adult foster care, community

residential settings, programs for people with disabilities, EIDBI agencies, family adult day

services, mental health programs, mental health clinics, substance use disorder programs,

the Minnesota Sex Offender Program, or any other facility or service not listed in this

subdivision that is licensed or required to be licensed by the Department of Human Services
new text begin
,

except federally certified psychiatric residential treatment facilities
new text end
. The Department of

Human Services is also the lead investigative agency for unlicensed EIDBI agencies under

section
256B.0949
.

(c) The county social service agency or its designee is the lead investigative agency for

all other reports, including but not limited to reports involving vulnerable adults receiving

services from a personal care provider organization under section
256B.0659
.

Sec. 34.
new text begin
NEW BACKGROUND STUDIES FOR INDIVIDUALS NOT IN NETSTUDY

2.0.
new text end

new text begin

By March 1, 2027, the commissioner of human services and counties must conduct new

background studies for all individuals specified under Minnesota Statutes, section 245C.03,

subdivision 1, paragraph (a), clauses (2) to (6), and affiliated with a child foster family

setting license holder, adult foster care or family adult day services and with a family child

care license holder, or a legal nonlicensed child care provider authorized under Minnesota

Statutes, chapter 142E. The commissioner or county must follow the requirements in

Minnesota Statutes, section 245C.04, subdivision 1, paragraphs (e) and (f), when conducting

the background studies under this section. The new background studies must be submitted

through NETStudy 2.0.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective September 1, 2026.

new text end

Sec. 35.
new text begin
REPEALER.
new text end

new text begin

(a)

new text end

new text begin

Minnesota Statutes 2024, section 245A.02, subdivision 10b,

new text end

new text begin

is repealed.

new text end

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(b)

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Minnesota Statutes 2025 Supplement, section 245A.10, subdivision 3a,

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is repealed.

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(c)

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Minnesota Rules, part 9505.2165, subpart 4,

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is repealed.

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APPENDIX

Repealed Minnesota Statutes: 26-06084

245A.02 DEFINITIONS.

Subd. 10b.

Owner.

"Owner" means an individual or organization that has a direct or indirect ownership interest of five percent or more in a program licensed under this chapter. For purposes of this subdivision, "direct ownership interest" means the possession of equity in capital, stock, or profits of an organization, and "indirect ownership interest" means a direct ownership interest in an entity that has a direct or indirect ownership interest in a licensed program. For purposes of this chapter, "owner of an employee stock ownership plan" means the president and treasurer of the entity. A government entity or nonprofit corporation that is issued a license under this chapter shall be designated the owner.

245A.10 FEES.

Subd. 3a.

Fee for change of ownership exception.

(a) A license holder must submit a fee of $2,100 for each license subject to the change in ownership exception under section
245A.043, subdivision 2
, paragraph (b).

(b) License holders under chapter 245D must submit a fee of $4,200 for each license subject to the change in ownership exception under section
245A.043, subdivision 2
, paragraph (b).

(c) A license holder for a children's residential facility must submit a fee of $500 for each license subject to the change in ownership exception under section
245A.043, subdivision 2
, paragraph (b).

Repealed Minnesota Rule: 26-06084

9505.2165 DEFINITIONS.

§

Subp. 4.

Fraud.

"Fraud" means:

§

A.

acts which constitute a crime against any program, or attempts or conspiracies to commit those crimes, including the following:

§

(1)

theft in violation of Minnesota Statutes, section
609.52
;

§

(2)

perjury in violation of Minnesota Statutes, section
609.48
;

§

(3)

aggravated forgery and forgery in violation of Minnesota Statutes, sections
609.625
and
609.63
;

§

(4)

medical assistance fraud in violation of Minnesota Statutes, section
609.466
; and

§

(5)

financial transaction card fraud in violation of Minnesota Statutes, section
609.821
;

§

B.

making a false statement, false claim, or false representation to a program where the person knows or should reasonably know the statement, claim, or representation is false, including knowingly and willfully submitting a false or fraudulent application for provider status; and

§

C.

a felony listed in United States Code, title 42, section 1320a-7b(b)(3)(D), subject to any safe harbors established in Code of Federal Regulations, title 42, part 1001, section 952.