Location requirements modification for assisted living facilities with a licensed resident capacity of six or fewer persons and licensed residential programs

A bill for an act

relating to human services; modifying location requirements for assisted living

facilities with a licensed resident capacity of six or fewer persons and licensed

residential programs; modifying permissible relocations of assisted living facilities;

allowing the commissioners of health and human services to delegate authority to

county agencies and local units of government to conduct certain inspections;

modifying notification requirements to affected political subdivisions for certain

licenses issued by the commissioners of health and human services; modifying

report and notification requirements for reports of maltreatment of vulnerable

adults; amending Minnesota Statutes 2024, sections 144G.15; 144G.16, by adding

a subdivision; 144G.195, subdivision 1; 144G.45, subdivision 3; 245A.04,

subdivisions 2, 2a; 245A.11, subdivision 4; 626.557, subdivision 9c.

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

Section 1.

Minnesota Statutes 2024, section 144G.15, is amended to read:

144G.15 CONSIDERATION OF APPLICATIONS.

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Subdivision 1.

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Consideration.

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(a) Before issuing a provisional license or license or

renewing a license, the commissioner shall consider an applicant's compliance history in

providing care in this state or any other state in a facility that provides care to children, the

elderly, ill individuals, or individuals with disabilities.
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Before issuing a provisional license

or a new license for an assisted living facility with a licensed resident capacity of six or

fewer, the commissioner shall also consider the facility's proximity to other assisted living

facilities and residential programs as specified in subdivision 3.
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(b) The applicant's compliance history shall include repeat violation, rule violations, and

any license or certification involuntarily suspended or terminated during an enforcement

process.

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Subd. 2.

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Grounds for licensing action.

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(c)
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The commissioner may deny, revoke, suspend,

restrict, or refuse to renew the license or impose conditions if:

(1) the applicant fails to provide complete and accurate information on the application

and the commissioner concludes that the missing or corrected information is needed to

determine if a license shall be granted;

(2) the applicant, knowingly or with reason to know, made a false statement of a material

fact in an application for the license or any data attached to the application or in any matter

under investigation by the department;

(3) the applicant refused to allow agents of the commissioner to inspect its books, records,

and files related to the license application, or any portion of the premises;

(4) the applicant willfully prevented, interfered with, or attempted to impede in any way:

(i) the work of any authorized representative of the commissioner, the ombudsman for

long-term care, or the ombudsman for mental health and developmental disabilities; or (ii)

the duties of the commissioner, local law enforcement, city or county attorneys, adult

protection, county case managers, or other local government personnel;

(5) the applicant, owner, controlling individual, managerial official, or assisted living

director for the facility has a history of noncompliance with federal or state regulations that

were detrimental to the health, welfare, or safety of a resident or a client; or

(6) the applicant violates any requirement in this chapter.

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Subd. 3.

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Proximity to other licensed facilities.

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(a) The commissioner must not grant

a provisional license or a new license for an assisted living facility with a licensed resident

capacity of six or fewer that will be located within 650 feet of an existing assisted living

facility with a licensed resident capacity of six or fewer or an existing residential program

licensed under chapter 245A.

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(b) Notwithstanding paragraph (a), the commissioner may grant a provisional license

or a new license for an assisted living facility with a licensed resident capacity of six or

fewer that will be located within 650 feet of an existing assisted living facility with a licensed

resident capacity of six or fewer or an existing residential program licensed under chapter

245A if:

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(1) the existing residential program is located in a hospital licensed by the commissioner;

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(2) the town, municipality, or county zoning authority grants the assisted living facility

an interim use or special use permit; or

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(3) the assisted living facility submits an application for certificate of need developed

by the commissioner and the commissioner approves the certificate of need.

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Subd. 4.

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Reconsideration rights.

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(d)
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If a license is denied, the applicant has the

reconsideration rights available under section 144G.16, subdivision 4.

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EFFECTIVE DATE.

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This section is effective January 1, 2027, and applies to

applications for a provisional license or a new license submitted on or after that date.

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Sec. 2.

Minnesota Statutes 2024, section 144G.16, is amended by adding a subdivision to

read:

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Subd. 8.

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Notice to affected municipality.

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(a) No later than ten calendar days after

issuing a provisional license or a new facility license to an assisted living facility with a

licensed resident capacity of six or fewer, the commissioner must provide the following

information about the provisional licensee or licensee and the facility to the affected

municipality or other political subdivision:

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(1) business name of the provisional licensee or licensee;

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(2) street address of the facility;

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(3) license category;

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(4) licensed resident capacity; and

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(5) contact information for an authorized agent of the provisional licensee or licensee.

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(b) The commissioner may provide notice through electronic communication or by

submitting a written document to the official address of the municipality or other political

subdivision.

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EFFECTIVE DATE.

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This section is effective July 1, 2026, and applies to provisional

licenses and facility licenses issued on or after that date.

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Sec. 3.

Minnesota Statutes 2024, section 144G.195, subdivision 1, is amended to read:

Subdivision 1.

New license not required.

(a)
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Beginning March 15, 2025,
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An assisted

living facility with a licensed resident capacity of five residents or fewer may operate under

the licensee's current license if the facility is relocated with the approval of the commissioner

of health during the period the current license is valid.

(b) A licensee is not required to apply for a new license solely because the licensee

receives approval to relocate a facility. The licensee's license for the relocated facility

remains valid until the expiration date specified on the existing license. The commissioner

of health must apply the licensing and survey cycle previously established for the facility's

prior location to the facility's new location.

(c) A licensee must notify the commissioner of health, on a form developed by the

commissioner, of the licensee's intent to relocate the licensee's facility and submit a

nonrefundable relocation fee of $3,905. The commissioner must deposit all relocation fees

in the state treasury to be credited to the state government special revenue fund.

(d) The licensee must obtain plan review approval for the building to which the licensee

intends to relocate the facility and a certificate of occupancy from the commissioner of labor

and industry or the commissioner of labor and industry's delegated authority for the building.

Upon issuance of a certificate of occupancy, the commissioner of health must review and

inspect the building to which the licensee intends to relocate the facility and approve or

deny the license relocation within 30 calendar days.

(e) A licensee
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may only relocate a facility within the geographic boundaries of the

municipality in which the facility is currently located or within the geographic boundaries

of a contiguous municipality
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located in the seven-county metropolitan area may not relocate

outside of the seven-county metropolitan area. Assisted living facilities located outside of

the seven-county metropolitan area may not relocate more than two hours or 120 miles from

the previous licensed facilities location
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.

(f) A licensee may only relocate one time in any three-year period, except that the

commissioner may approve an additional relocation within a three-year period upon a

licensee's demonstration of an extenuating circumstance, including but not limited to the

criteria outlined in section
256B.49, subdivision 28a
, paragraph (c).

(g) A licensee that receives approval from the commissioner to relocate a facility must

provide each resident with a new assisted living contract and comply with the coordinated

move requirements under section
144G.55
.

(h) A licensee denied approval by the commissioner of health to relocate a facility may

continue to operate the facility in its current location, follow the requirements in section

144G.57
and close the facility, or notify the commissioner of health of the licensee's intent

to relocate the facility to an alternative new location. If the licensee notifies the commissioner

of the licensee's intent to relocate the facility to an alternative new location, paragraph (c)

applies, including the timelines for approving or denying the license relocation for the

alternative new location.

Sec. 4.

Minnesota Statutes 2024, section 144G.45, subdivision 3, is amended to read:

Subd. 3.

Local laws apply
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; delegating inspection authority
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.

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(a)
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Assisted living facilities

shall comply with all applicable state and local governing laws, regulations, standards,

ordinances, and codes for fire safety, building, and zoning requirements, except a facility

with a licensed resident capacity of six or fewer is exempt from rental licensing regulations

imposed by any town, municipality, or county.

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(b) At the request of a county or local unit of government, the commissioner may delegate

authority to a county agency or local unit of government to inspect an existing assisted

living facility with a licensed resident capacity of six or fewer that is in the jurisdiction of

the county or local unit of government for compliance with applicable building codes, fire

and safety codes, and zoning ordinances. A county agency or local unit of government

conducting an inspection must notify the commissioner of any violations or concerns within

ten working days of the inspection. A county agency or local unit of government that

conducts inspections under this subdivision must not inspect an assisted living facility more

frequently than every six months.

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(c) The commissioner must ensure that laws, rules, and codes are uniformly enforced

throughout the state by reviewing each county agency and local unit of government

conducting inspections under this subdivision for compliance with this subdivision and

other applicable laws and rules at least every four years.

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EFFECTIVE DATE.

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This section is effective January 1, 2027.

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Sec. 5.

Minnesota Statutes 2024, section 245A.04, subdivision 2, is amended to read:

Subd. 2.

Notification of affected municipality.

The commissioner must not issue a

license under this chapter without giving 30 calendar days' written notice to the affected

municipality or other political subdivision
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unless the program is considered a permitted

single-family residential use under sections
245A.11
and
245A.14
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.
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The written notice must

include the prospective license holder's name and contact information, the license type and

capacity, and the proposed address of the licensed facility or program.
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The commissioner

may provide notice through electronic communication. The notification must be given

before the first issuance of a license under this chapter and annually after that time if annual

notification is requested in writing by the affected municipality or other political subdivision.

State funds must not be made available to or be spent by an agency or department of state,

county, or municipal government for payment to a residential or nonresidential program

licensed under this chapter until the provisions of this subdivision have been complied with

in full. The provisions of this subdivision shall not apply to programs located in hospitals.

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EFFECTIVE DATE.

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This section is effective July 1, 2026, and applies to licenses

issued on or after that date.

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Sec. 6.

Minnesota Statutes 2024, section 245A.04, subdivision 2a, is amended to read:

Subd. 2a.

Meeting fire and safety codes.

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(a)
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An applicant or license holder under

sections
245A.01
to
245A.16
must document compliance with applicable building codes,

fire and safety codes, health rules, and zoning ordinances, or document that an appropriate

waiver has been granted.

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(b) At the request of a county or local unit of government, the commissioner may delegate

authority to a county agency or local unit of government to inspect an existing residential

program serving six or fewer persons for compliance with applicable building codes, fire

and safety codes, and zoning ordinances. A county agency or local unit of government

conducting an inspection must notify the commissioner of any violations or concerns within

ten working days of the inspection. A county agency or local unit of government that

conducts inspections under this subdivision must not inspect a residential program more

frequently than every six months.

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(c) The commissioner must ensure that laws, rules, and codes are uniformly enforced

throughout the state by reviewing each county agency and local unit of government

conducting inspections under this subdivision for compliance with this subdivision and

other applicable laws and rules at least every four years.

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EFFECTIVE DATE.

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This section is effective January 1, 2027.

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Sec. 7.

Minnesota Statutes 2024, section 245A.11, subdivision 4, is amended to read:

Subd. 4.

Location of residential programs.

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(a)
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In determining whether to grant a license,

the commissioner shall specifically consider the population, size, land use plan, availability

of community services, and the number and size of existing licensed residential programs

in the town, municipality, or county in which the applicant seeks to operate a residential

program. The commissioner shall not grant an initial license to any residential program if

the residential program will be
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located
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within
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1,320
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650
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feet of an existing residential

program
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unless one of the following conditions apply: (1) the existing residential program

is located in a hospital licensed by the commissioner of health; (2) the town, municipality,

or county zoning authority grants the residential program a conditional use or special use

permit; (3) the program serves six or fewer persons and is not located in a city of the first

class; or (4) the program is foster care, or a community residential setting as defined under

section
245D.02, subdivision 4a
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or assisted living facility with a licensed resident capacity

of six or fewer persons
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.

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(b) Notwithstanding paragraph (a), the commissioner may grant an initial license to a

residential program that will be located within 650 feet of an existing residential program

or assisted living facility with a licensed resident capacity of six or fewer persons if:

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(1) the existing residential program is located in a hospital licensed by the commissioner

of health;

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(2) the town, municipality, or county zoning authority grants the residential program an

interim use or special use permit;

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(3) the program submits an application for certificate of need developed by the

commissioner and the commissioner approves the certificate of need; or

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(4) the program is a foster care or a community residential setting as defined under

section 245D.02, subdivision 4a; the program submits an application for a certificate of

need developed by the commissioner; and the commissioner approves the certificate of

need.

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EFFECTIVE DATE.

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This section is effective July 1, 2026, and applies to applications

for initial licenses submitted on or after that date.

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Sec. 8.

Minnesota Statutes 2024, section 626.557, subdivision 9c, is amended to read:

Subd. 9c.

Lead investigative agency; notifications, dispositions, determinations.

(a)

Upon request of the reporter, the lead investigative agency shall notify the reporter
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and, if

applicable, the vulnerable adult's case manager and the case manager's supervisor,
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that it

has received the report
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,
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and provide information on the initial disposition of the report
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,

including the case number assigned to the report, in writing
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within five business days of

receipt of the report, provided that the notification will not endanger the vulnerable adult

or hamper the investigation.
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If the report is accepted for investigation, once the report is

assigned to an investigator the lead investigative agency must notify the reporter and, if

applicable, the vulnerable adult's case manager and the case manager's supervisor of the

name and contact information of the investigator assigned to the case. If the report is not

accepted for adult protective services or investigation, the notification must state the reason

the report was not accepted.
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(b) In making the initial disposition of a report alleging maltreatment of a vulnerable

adult, the lead investigative agency may consider previous reports of suspected maltreatment

and may request and consider public information, records maintained by a lead investigative

agency or licensed providers, and information from any person who may have knowledge

regarding the alleged maltreatment and the basis for the adult's vulnerability.

(c) When the county social service agency does not accept a report for adult protective

services or investigation, the agency may offer assistance to the reporter or the person who

was the subject of the report.

(d) While investigating reports and providing adult protective services, the lead

investigative agency may coordinate with entities identified under subdivision 12b, paragraph

(g), and may coordinate with support persons to safeguard the welfare of the vulnerable

adult and prevent further maltreatment of the vulnerable adult.

(e) Upon conclusion of every investigation it conducts, the lead investigative agency

shall make a final disposition as defined in section
626.5572, subdivision 8
.

(f) When determining whether the facility or individual is the responsible party for

substantiated maltreatment or whether both the facility and the individual are responsible

for substantiated maltreatment, the lead investigative agency shall consider at least the

following mitigating factors:

(1) whether the actions of the facility or the individual caregivers were in accordance

with, and followed the terms of, an erroneous physician order, prescription, resident care

plan, or directive. This is not a mitigating factor when the facility or caregiver is responsible

for the issuance of the erroneous order, prescription, plan, or directive or knows or should

have known of the errors and took no reasonable measures to correct the defect before

administering care;

(2) the comparative responsibility between the facility, other caregivers, and requirements

placed upon the employee, including but not limited to, the facility's compliance with related

regulatory standards and factors such as the adequacy of facility policies and procedures,

the adequacy of facility training, the adequacy of an individual's participation in the training,

the adequacy of caregiver supervision, the adequacy of facility staffing levels, and a

consideration of the scope of the individual employee's authority; and

(3) whether the facility or individual followed professional standards in exercising

professional judgment.

(g) When substantiated maltreatment is determined to have been committed by an

individual who is also the facility license holder, both the individual and the facility must

be determined responsible for the maltreatment, and both the background study

disqualification standards under section
245C.15, subdivision 4
, and the licensing actions

under section
245A.06
or
245A.07
apply.

(h) The lead investigative agency shall complete its final disposition within 60 calendar

days. If the lead investigative agency is unable to complete its final disposition within 60

calendar days, the lead investigative agency shall notify the following persons provided

that the notification will not endanger the vulnerable adult or hamper the investigation: (1)

the vulnerable adult or the vulnerable adult's guardian or health care agent, when known,

if the lead investigative agency knows them to be aware of the investigation; and (2) the

facility, where applicable. The notice shall contain the reason for the delay and the projected

completion date. If the lead investigative agency is unable to complete its final disposition

by a subsequent projected completion date, the lead investigative agency shall again notify

the vulnerable adult or the vulnerable adult's guardian or health care agent, when known if

the lead investigative agency knows them to be aware of the investigation, and the facility,

where applicable, of the reason for the delay and the revised projected completion date

provided that the notification will not endanger the vulnerable adult or hamper the

investigation. The lead investigative agency must notify the health care agent of the

vulnerable adult only if the health care agent's authority to make health care decisions for

the vulnerable adult is currently effective under section
145C.06
and not suspended under

section
524.5-310
and the investigation relates to a duty assigned to the health care agent

by the principal. A lead investigative agency's inability to complete the final disposition

within 60 calendar days or by any projected completion date does not invalidate the final

disposition.

(i) When the lead investigative agency is the Department of Health or the Department

of Human Services, the lead investigative agency shall provide a copy of the public

investigation memorandum under subdivision 12b, paragraph (b), clause (1), within ten

calendar days of completing the final disposition to the following persons:

(1) the vulnerable adult, or the vulnerable adult's guardian or health care agent, if known,

unless the lead investigative agency knows that the notification would endanger the

well-being of the vulnerable adult;

(2) the reporter, if the reporter requested notification when making the report, provided

this notification would not endanger the well-being of the vulnerable adult;

(3) the person or facility alleged responsible for maltreatment, if known;

(4) the facility; and

(5) the ombudsman for long-term care, or the ombudsman for mental health and

developmental disabilities, as appropriate.

(j) When the lead investigative agency is a county agency, within ten calendar days of

completing the final disposition, the lead investigative agency shall provide notification of

the final disposition to the following persons:

(1) the vulnerable adult, or the vulnerable adult's guardian or health care agent, if known,

when the allegation is applicable to the authority of the vulnerable adult's guardian or health

care agent, unless the agency knows that the notification would endanger the well-being of

the vulnerable adult;

(2) the individual determined responsible for maltreatment, if known; and

(3) when the alleged incident involves a personal care assistant or provider agency, the

personal care provider organization under section
256B.0659
. Upon implementation of

Community First Services and Supports (CFSS), this notification requirement applies to

the CFSS support worker or CFSS agency under section
256B.85
.

(k) If, as a result of a reconsideration, review, or hearing, the lead investigative agency

changes the final disposition, or if a final disposition is changed on appeal, the lead

investigative agency shall notify the parties specified in paragraph (i).

(l) The lead investigative agency shall notify the vulnerable adult who is the subject of

the report or the vulnerable adult's guardian or health care agent, if known, and any person

or facility determined to have maltreated a vulnerable adult, of their appeal or review rights

under this section or section
256.021
.

(m) The lead investigative agency shall routinely provide investigation memoranda for

substantiated reports to the appropriate licensing boards. These reports must include the

names of substantiated perpetrators. The lead investigative agency may not provide

investigative memoranda for inconclusive or false reports to the appropriate licensing boards

unless the lead investigative agency's investigation gives reason to believe that there may

have been a violation of the applicable professional practice laws. If the investigation

memorandum is provided to a licensing board, the subject of the investigation memorandum

shall be notified and receive a summary of the investigative findings.

(n) In order to avoid duplication, licensing boards shall consider the findings of the lead

investigative agency in their investigations if they choose to investigate. This does not

preclude licensing boards from considering other information.

(o) The lead investigative agency must provide to the commissioner of human services

its final dispositions, including the names of all substantiated perpetrators. The commissioner

of human services shall establish records to retain the names of substantiated perpetrators.

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EFFECTIVE DATE.

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This section is effective July 1, 2026, and applies to reports

submitted on or after that date.

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