Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2260 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to human services; Department of Human Services policy bill sections on
3	3		1.3 background studies, fraud prevention, Department of Corrections reconsiderations,
4		-	1.4 ~~illegal remuneration~~ crimes, and appeals division worker protections; providing
5		-	1.5 ~~for criminal~~ penalties; amending Minnesota Statutes 2024, sections 13.46,
6		-	1.6 ~~subdivisions 1, 2,~~ 3, 4; 15.471, subdivision 6; 142E.51, subdivisions 5, 6, ~~by adding~~
7		-	1.7 ~~a subdivision; 245.095, subdivision 5,~~ by adding a subdivision; 245A.04,
8		-	1.8 ~~subdivision 1; 245A.05; 245A.07, subdivision~~ 2; 245C.05, by adding a subdivision;
9		-	1.9 ~~245C.08, subdivision 3; 245C.14, by adding~~ a subdivision; 245C.22, subdivision
10		-	1.10 ~~5; 254A.19, subdivision 4; 256.98, subdivision~~ 1; 256B.064, subdivision 1a;
11		-	1.11 ~~256B.12; 256G.01, subdivision 3; 256G.08,~~ subdivisions 1, 2; 256G.09,
12		-	1.12 ~~subdivisions 1, 2; 480.40, subdivision 1; 611.43, by~~ adding a subdivision; 611.46,
13		-	1.13 ~~subdivision 1; 611.55, by adding a subdivision;~~ Laws 2023, chapter 70, article 7,
14		-	1.14 ~~section 34; proposing coding for new law in~~ Minnesota Statutes, chapter 609.
	4	+	1.4 kickback crimes, and appeals division worker protections; providing for criminal
	5	+	1.5 penalties; amending Minnesota Statutes 2024, sections 13.46, subdivisions 1, 2,
	6	+	1.6 3, 4; 15.471, subdivision 6; 142E.51, subdivisions 5, 6; 245.095, subdivision 5,
	7	+	1.7 by adding a subdivision; 245A.04, subdivision 1; 245A.05; 245A.07, subdivision
	8	+	1.8 2; 245C.05, by adding a subdivision; 245C.08, subdivision 3; 245C.14, by adding
	9	+	1.9 a subdivision; 245C.22, subdivision 5; 254A.19, subdivision 4; 256.98, subdivision
	10	+	1.10 1; 256B.064, subdivision 1a; 256B.12; 256G.01, subdivision 3; 256G.08,
	11	+	1.11 subdivisions 1, 2; 256G.09, subdivisions 1, 2; 480.40, subdivision 1; 611.43, by
	12	+	1.12 adding a subdivision; 611.46, subdivision 1; 611.55, by adding a subdivision;
	13	+	1.13 Laws 2023, chapter 70, article 7, section 34; proposing coding for new law in
	14	+	1.14 Minnesota Statutes, chapter 609.
15	15		1.15BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
16	16		1.16 Section 1. Minnesota Statutes 2024, section 13.46, subdivision 1, is amended to read:
17	17		1.17 Subdivision 1.Definitions.As used in this section:
18	18		1.18 (a) "Individual" means an individual according to section 13.02, subdivision 8, but does
19	19		1.19not include a vendor of services.
20	20		1.20 (b) "Program" includes all programs for which authority is vested in a component of the
21	21		1.21welfare system according to statute or federal law, including but not limited to Native
22	22		1.22American Tribe programs that provide a service component of the welfare system, the
23	23		1.23Minnesota family investment program, medical assistance, general assistance, general
24	24		1.24assistance medical care formerly codified in chapter 256D, the child care assistance program,
25	25		1.25and child support collections.
26	26		1Section 1.
27		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT
28		-	136
29		-	Printed
30		-	Page No.State of Minnesota
	27	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT
	28	+	State of Minnesota
31	29		This Document can be made available
32	30		in alternative formats upon request
33	31		HOUSE OF REPRESENTATIVES
34	32		H. F. No. 2260
35	33		NINETY-FOURTH SESSION
36	34		Authored by Curran03/12/2025
37	35		The bill was read for the first time and referred to the Committee on Judiciary Finance and Civil Law
38		-	Adoption of Report: Amended and re-referred to the Committee on Public Safety Finance and Policy03/24/2025
39		-	Adoption of Report: Placed on the General Register as Amended04/03/2025
40		-	Read for the Second Time 2.1 (c) "Welfare system" includes the Department of Human Services; Direct Care and
	36	+	Adoption of Report: Amended and re-referred to the Committee on Public Safety Finance and Policy03/24/2025 2.1 (c) "Welfare system" includes the Department of Human Services; Direct Care and
41	37		2.2Treatment; the Department of Children, Youth, and Families; local social services agencies;
42	38		2.3county welfare agencies; county public health agencies; county veteran services agencies;
43	39		2.4county housing agencies; private licensing agencies; the public authority responsible for
44	40		2.5child support enforcement; human services boards; community mental health center boards,
45	41		2.6state hospitals, state nursing homes, the ombudsman for mental health and developmental
46	42		2.7disabilities; Native American Tribes to the extent a Tribe provides a service component of
47	43		2.8the welfare system; the Minnesota Competency Attainment Board and forensic navigators
48	44		2.9under chapter 611; and persons, agencies, institutions, organizations, and other entities
49	45		2.10under contract to any of the above agencies to the extent specified in the contract.
50	46		2.11 (d) "Mental health data" means data on individual clients and patients of community
51	47		2.12mental health centers, established under section 245.62, mental health divisions of counties
52	48		2.13and other providers under contract to deliver mental health services, Direct Care and
53	49		2.14Treatment mental health services, or the ombudsman for mental health and developmental
54	50		2.15disabilities.
55	51		2.16 (e) "Fugitive felon" means a person who has been convicted of a felony and who has
56	52		2.17escaped from confinement or violated the terms of probation or parole for that offense.
57	53		2.18 (f) "Private licensing agency" means an agency licensed by the commissioner of children,
58	54		2.19youth, and families under chapter 142B to perform the duties under section 142B.30.
59	55		2.20 Sec. 2. Minnesota Statutes 2024, section 13.46, subdivision 2, is amended to read:
60	56		2.21 Subd. 2.General.(a) Data on individuals collected, maintained, used, or disseminated
61	57		2.22by the welfare system are private data on individuals, and shall not be disclosed except:
62	58		2.23 (1) according to section 13.05;
63	59		2.24 (2) according to court order;
64	60		2.25 (3) according to a statute specifically authorizing access to the private data;
65	61		2.26 (4) to an agent of the welfare system and an or investigator acting on behalf of a county,
66	62		2.27the state, or the federal government, including a law enforcement person or attorney in the
67	63		2.28investigation or prosecution of a criminal, civil, or administrative proceeding relating to the
68	64		2.29administration of a program;
69	65		2.30 (5) to personnel of the welfare system who require the data to verify an individual's
70	66		2.31identity; determine eligibility, amount of assistance, and the need to provide services to an
71	67		2.32individual or family across programs; coordinate services for an individual or family;
72	68		2Sec. 2.
73		-	REVISOR DTT H2260-2HF2260 ~~SECOND~~ ENGROSSMENT 3.1evaluate the effectiveness of programs; assess parental contribution amounts; and investigate
	69	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 3.1evaluate the effectiveness of programs; assess parental contribution amounts; and investigate
74	70		3.2suspected fraud;
75	71		3.3 (6) to administer federal funds or programs;
76	72		3.4 (7) between personnel of the welfare system working in the same program;
77	73		3.5 (8) to the Department of Revenue to administer and evaluate tax refund or tax credit
78	74		3.6programs and to identify individuals who may benefit from these programs, and prepare
79	75		3.7the databases for reports required under section 270C.13 and Laws 2008, chapter 366, article
80	76		3.817, section 6. The following information may be disclosed under this paragraph: an
81	77		3.9individual's and their dependent's names, dates of birth, Social Security or individual taxpayer
82	78		3.10identification numbers, income, addresses, and other data as required, upon request by the
83	79		3.11Department of Revenue. Disclosures by the commissioner of revenue to the commissioner
84	80		3.12of human services for the purposes described in this clause are governed by section 270B.14,
85	81		3.13subdivision 1. Tax refund or tax credit programs include, but are not limited to, the dependent
86	82		3.14care credit under section 290.067, the Minnesota working family credit under section
87	83		3.15290.0671, the property tax refund under section 290A.04, and the Minnesota education
88	84		3.16credit under section 290.0674;
89	85		3.17 (9) between the Department of Human Services; the Department of Employment and
90	86		3.18Economic Development; the Department of Children, Youth, and Families; Direct Care and
91	87		3.19Treatment; and, when applicable, the Department of Education, for the following purposes:
92	88		3.20 (i) to monitor the eligibility of the data subject for unemployment benefits, for any
93	89		3.21employment or training program administered, supervised, or certified by that agency;
94	90		3.22 (ii) to administer any rehabilitation program or child care assistance program, whether
95	91		3.23alone or in conjunction with the welfare system;
96	92		3.24 (iii) to monitor and evaluate the Minnesota family investment program or the child care
97	93		3.25assistance program by exchanging data on recipients and former recipients of Supplemental
98	94		3.26Nutrition Assistance Program (SNAP) benefits, cash assistance under chapter 142F, 256D,
99	95		3.27256J, or 256K, child care assistance under chapter 142E, medical programs under chapter
100	96		3.28256B or 256L; and
101	97		3.29 (iv) to analyze public assistance employment services and program utilization, cost,
102	98		3.30effectiveness, and outcomes as implemented under the authority established in Title II,
103	99		3.31Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of 1999.
104	100		3.32Health records governed by sections 144.291 to 144.298 and "protected health information"
105	101		3.33as defined in Code of Federal Regulations, title 45, section 160.103, and governed by Code
106	102		3Sec. 2.
107		-	REVISOR DTT H2260-2HF2260 ~~SECOND~~ ENGROSSMENT 4.1of Federal Regulations, title 45, parts 160-164, including health care claims utilization
	103	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 4.1of Federal Regulations, title 45, parts 160-164, including health care claims utilization
108	104		4.2information, must not be exchanged under this clause;
109	105		4.3 (10) to appropriate parties in connection with an emergency if knowledge of the
110	106		4.4information is necessary to protect the health or safety of the individual or other individuals
111	107		4.5or persons;
112	108		4.6 (11) data maintained by residential programs as defined in section 245A.02 may be
113	109		4.7disclosed to the protection and advocacy system established in this state according to Part
114	110		4.8C of Public Law 98-527 to protect the legal and human rights of persons with developmental
115	111		4.9disabilities or other related conditions who live in residential facilities for these persons if
116	112		4.10the protection and advocacy system receives a complaint by or on behalf of that person and
117	113		4.11the person does not have a legal guardian or the state or a designee of the state is the legal
118	114		4.12guardian of the person;
119	115		4.13 (12) to the county medical examiner or the county coroner for identifying or locating
120	116		4.14relatives or friends of a deceased person;
121	117		4.15 (13) data on a child support obligor who makes payments to the public agency may be
122	118		4.16disclosed to the Minnesota Office of Higher Education to the extent necessary to determine
123	119		4.17eligibility under section 136A.121, subdivision 2, clause (5);
124	120		4.18 (14) participant Social Security or individual taxpayer identification numbers and names
125	121		4.19collected by the telephone assistance program may be disclosed to the Department of
126	122		4.20Revenue to conduct an electronic data match with the property tax refund database to
127	123		4.21determine eligibility under section 237.70, subdivision 4a;
128	124		4.22 (15) the current address of a Minnesota family investment program participant may be
129	125		4.23disclosed to law enforcement officers who provide the name of the participant and notify
130	126		4.24the agency that:
131	127		4.25 (i) the participant:
132	128		4.26 (A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after
133	129		4.27conviction, for a crime or attempt to commit a crime that is a felony under the laws of the
134	130		4.28jurisdiction from which the individual is fleeing; or
135	131		4.29 (B) is violating a condition of probation or parole imposed under state or federal law;
136	132		4.30 (ii) the location or apprehension of the felon is within the law enforcement officer's
137	133		4.31official duties; and
138	134		4.32 (iii) the request is made in writing and in the proper exercise of those duties;
139	135		4Sec. 2.
140		-	REVISOR DTT H2260-2HF2260 ~~SECOND~~ ENGROSSMENT 5.1 (16) the current address of a recipient of general assistance may be disclosed to probation
	136	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 5.1 (16) the current address of a recipient of general assistance may be disclosed to probation
141	137		5.2officers and corrections agents who are supervising the recipient and to law enforcement
142	138		5.3officers who are investigating the recipient in connection with a felony level offense;
143	139		5.4 (17) information obtained from a SNAP applicant or recipient households may be
144	140		5.5disclosed to local, state, or federal law enforcement officials, upon their written request, for
145	141		5.6the purpose of investigating an alleged violation of the Food and Nutrition Act, according
146	142		5.7to Code of Federal Regulations, title 7, section 272.1(c);
147	143		5.8 (18) the address, Social Security or individual taxpayer identification number, and, if
148	144		5.9available, photograph of any member of a household receiving SNAP benefits shall be made
149	145		5.10available, on request, to a local, state, or federal law enforcement officer if the officer
150	146		5.11furnishes the agency with the name of the member and notifies the agency that:
151	147		5.12 (i) the member:
152	148		5.13 (A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a
153	149		5.14crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;
154	150		5.15 (B) is violating a condition of probation or parole imposed under state or federal law;
155	151		5.16or
156	152		5.17 (C) has information that is necessary for the officer to conduct an official duty related
157	153		5.18to conduct described in subitem (A) or (B);
158	154		5.19 (ii) locating or apprehending the member is within the officer's official duties; and
159	155		5.20 (iii) the request is made in writing and in the proper exercise of the officer's official duty;
160	156		5.21 (19) the current address of a recipient of Minnesota family investment program, general
161	157		5.22assistance, or SNAP benefits may be disclosed to law enforcement officers who, in writing,
162	158		5.23provide the name of the recipient and notify the agency that the recipient is a person required
163	159		5.24to register under section 243.166, but is not residing at the address at which the recipient is
164	160		5.25registered under section 243.166;
165	161		5.26 (20) certain information regarding child support obligors who are in arrears may be
166	162		5.27made public according to section 518A.74;
167	163		5.28 (21) data on child support payments made by a child support obligor and data on the
168	164		5.29distribution of those payments excluding identifying information on obligees may be
169	165		5.30disclosed to all obligees to whom the obligor owes support, and data on the enforcement
170	166		5.31actions undertaken by the public authority, the status of those actions, and data on the income
171	167		5.32of the obligor or obligee may be disclosed to the other party;
172	168		5Sec. 2.
173		-	REVISOR DTT H2260-2HF2260 ~~SECOND~~ ENGROSSMENT 6.1 (22) data in the work reporting system may be disclosed under section 142A.29,
	169	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 6.1 (22) data in the work reporting system may be disclosed under section 142A.29,
174	170		6.2subdivision 7;
175	171		6.3 (23) to the Department of Education for the purpose of matching Department of Education
176	172		6.4student data with public assistance data to determine students eligible for free and
177	173		6.5reduced-price meals, meal supplements, and free milk according to United States Code,
178	174		6.6title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and state
179	175		6.7funds that are distributed based on income of the student's family; and to verify receipt of
180	176		6.8energy assistance for the telephone assistance plan;
181	177		6.9 (24) the current address and telephone number of program recipients and emergency
182	178		6.10contacts may be released to the commissioner of health or a community health board as
183	179		6.11defined in section 145A.02, subdivision 5, when the commissioner or community health
184	180		6.12board has reason to believe that a program recipient is a disease case, carrier, suspect case,
185	181		6.13or at risk of illness, and the data are necessary to locate the person;
186	182		6.14 (25) to other state agencies, statewide systems, and political subdivisions of this state,
187	183		6.15including the attorney general, and agencies of other states, interstate information networks,
188	184		6.16federal agencies, and other entities as required by federal regulation or law for the
189	185		6.17administration of the child support enforcement program;
190	186		6.18 (26) to personnel of public assistance programs as defined in section 518A.81, for access
191	187		6.19to the child support system database for the purpose of administration, including monitoring
192	188		6.20and evaluation of those public assistance programs;
193	189		6.21 (27) to monitor and evaluate the Minnesota family investment program by exchanging
194	190		6.22data between the Departments of Human Services; Children, Youth, and Families; and
195	191		6.23Education, on recipients and former recipients of SNAP benefits, cash assistance under
196	192		6.24chapter 142F, 256D, 256J, or 256K, child care assistance under chapter 142E, medical
197	193		6.25programs under chapter 256B or 256L, or a medical program formerly codified under chapter
198	194		6.26256D;
199	195		6.27 (28) to evaluate child support program performance and to identify and prevent fraud
200	196		6.28in the child support program by exchanging data between the Department of Human Services;
201	197		6.29Department of Children, Youth, and Families; Department of Revenue under section 270B.14,
202	198		6.30subdivision 1, paragraphs (a) and (b), without regard to the limitation of use in paragraph
203	199		6.31(c); Department of Health; Department of Employment and Economic Development; and
204	200		6.32other state agencies as is reasonably necessary to perform these functions;
205	201		6Sec. 2.
206		-	REVISOR DTT H2260-2HF2260 ~~SECOND~~ ENGROSSMENT 7.1 (29) counties and the Department of Children, Youth, and Families operating child care
	202	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 7.1 (29) counties and the Department of Children, Youth, and Families operating child care
207	203		7.2assistance programs under chapter 142E may disseminate data on program participants,
208	204		7.3applicants, and providers to the commissioner of education;
209	205		7.4 (30) child support data on the child, the parents, and relatives of the child may be
210	206		7.5disclosed to agencies administering programs under titles IV-B and IV-E of the Social
211	207		7.6Security Act, as authorized by federal law;
212	208		7.7 (31) to a health care provider governed by sections 144.291 to 144.298, to the extent
213	209		7.8necessary to coordinate services;
214	210		7.9 (32) to the chief administrative officer of a school to coordinate services for a student
215	211		7.10and family; data that may be disclosed under this clause are limited to name, date of birth,
216	212		7.11gender, and address;
217	213		7.12 (33) to county correctional agencies to the extent necessary to coordinate services and
218	214		7.13diversion programs; data that may be disclosed under this clause are limited to name, client
219	215		7.14demographics, program, case status, and county worker information; or
220	216		7.15 (34) between the Department of Human Services and the Metropolitan Council for the
221	217		7.16following purposes:
222	218		7.17 (i) to coordinate special transportation service provided under section 473.386 with
223	219		7.18services for people with disabilities and elderly individuals funded by or through the
224	220		7.19Department of Human Services; and
225	221		7.20 (ii) to provide for reimbursement of special transportation service provided under section
226	222		7.21473.386.
227	223		7.22The data that may be shared under this clause are limited to the individual's first, last, and
228	224		7.23middle names; date of birth; residential address; and program eligibility status with expiration
229	225		7.24date for the purposes of informing the other party of program eligibility.
230	226		7.25 (b) Information on persons who have been treated for substance use disorder may only
231	227		7.26be disclosed according to the requirements of Code of Federal Regulations, title 42, sections
232	228		7.272.1 to 2.67.
233	229		7.28 (c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16),
234	230		7.29(17), or (18), or paragraph (b), are investigative data and are confidential or protected
235	231		7.30nonpublic while the investigation is active. The data are private after the investigation
236	232		7.31becomes inactive under section 13.82, subdivision 7, clause (a) or (b).
237	233		7Sec. 2.
238		-	REVISOR DTT H2260-2HF2260 ~~SECOND~~ ENGROSSMENT 8.1 (d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are
	234	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 8.1 (d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are
239	235		8.2not subject to the access provisions of subdivision 10, paragraph (b).
240	236		8.3 For the purposes of this subdivision, a request will be deemed to be made in writing if
241	237		8.4made through a computer interface system.
242	238		8.5 Sec. 3. Minnesota Statutes 2024, section 13.46, subdivision 3, is amended to read:
243	239		8.6 Subd. 3.Investigative data.(a) Data on persons, including data on vendors of services,
244	240		8.7licensees, and applicants that is collected, maintained, used, or disseminated by the welfare
245	241		8.8system in an investigation, authorized by statute, and relating to the enforcement of rules
246	242		8.9or law are confidential data on individuals pursuant to section 13.02, subdivision 3, or
247	243		8.10protected nonpublic data not on individuals pursuant to section 13.02, subdivision 13, and
248	244		8.11shall not be disclosed except:
249	245		8.12 (1) pursuant to section 13.05;
250	246		8.13 (2) pursuant to statute or valid court order;
251	247		8.14 (3) to a party named in a civil or criminal proceeding, administrative or judicial, for
252	248		8.15preparation of defense;
253	249		8.16 (4) to an agent of the welfare system or an investigator acting on behalf of a county,
254	250		8.17state, or federal government, including a law enforcement officer or attorney in the
255	251		8.18investigation or prosecution of a criminal, civil, or administrative proceeding, unless the
256	252		8.19commissioner of human services or; the commissioner of children, youth, and families; or
257	253		8.20the Direct Care and Treatment executive board determines that disclosure may compromise
258	254		8.21a Department of Human Services or; Department of Children, Youth, and Families; or Direct
259	255		8.22Care and Treatment ongoing investigation; or
260	256		8.23 (5) to provide notices required or permitted by statute.
261	257		8.24 The data referred to in this subdivision shall be classified as public data upon submission
262	258		8.25to an administrative law judge or court in an administrative or judicial proceeding. Inactive
263	259		8.26welfare investigative data shall be treated as provided in section 13.39, subdivision 3.
264	260		8.27 (b) Notwithstanding any other provision in law, the commissioner of human services
265	261		8.28shall provide all active and inactive investigative data, including the name of the reporter
266	262		8.29of alleged maltreatment under section 626.557 or chapter 260E, to the ombudsman for
267	263		8.30mental health and developmental disabilities upon the request of the ombudsman.
268	264		8.31 (c) Notwithstanding paragraph (a) and section 13.39, the existence of an investigation
269	265		8.32by the commissioner of human services of possible overpayments of public funds to a service
270	266		8Sec. 3.
271		-	REVISOR DTT H2260-2HF2260 ~~SECOND~~ ENGROSSMENT 9.1provider or recipient or the reduction or withholding of payments may be disclosed if the
	267	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 9.1provider or recipient or the reduction or withholding of payments may be disclosed if the
272	268		9.2commissioner determines that it will not compromise the investigation.
273	269		9.3 EFFECTIVE DATE.This section is effective July 1, 2025.
274	270		9.4 Sec. 4. Minnesota Statutes 2024, section 13.46, subdivision 4, is amended to read:
275	271		9.5 Subd. 4.Licensing data.(a) As used in this subdivision:
276	272		9.6 (1) "licensing data" are all data collected, maintained, used, or disseminated by the
277	273		9.7welfare system pertaining to persons licensed or registered or who apply for licensure or
278	274		9.8registration or who formerly were licensed or registered under the authority of the
279	275		9.9commissioner of human services;
280	276		9.10 (2) "client" means a person who is receiving services from a licensee or from an applicant
281	277		9.11for licensure; and
282	278		9.12 (3) "personal and personal financial data" are Social Security numbers, identity of and
283	279		9.13letters of reference, insurance information, reports from the Bureau of Criminal
284	280		9.14Apprehension, health examination reports, and social/home studies.
285	281		9.15 (b)(1)(i) Except as provided in paragraph (c), the following data on applicants, license
286	282		9.16holders, certification holders, and former licensees are public: name, address, telephone
287	283		9.17number of licensees, email addresses except for family child foster care, date of receipt of
288	284		9.18a completed application, dates of licensure, licensed capacity, type of client preferred,
289	285		9.19variances granted, record of training and education in child care and child development,
290	286		9.20type of dwelling, name and relationship of other family members, previous license history,
291	287		9.21class of license, the existence and status of complaints, and the number of serious injuries
292	288		9.22to or deaths of individuals in the licensed program as reported to the commissioner of human
293	289		9.23services; the commissioner of children, youth, and families; the local social services agency;
294	290		9.24or any other county welfare agency. For purposes of this clause, a serious injury is one that
295	291		9.25is treated by a physician.
296	292		9.26 (ii) Except as provided in item (v), when a correction order, an order to forfeit a fine,
297	293		9.27an order of license suspension, an order of temporary immediate suspension, an order of
298	294		9.28license revocation, an order of license denial, or an order of conditional license has been
299	295		9.29issued, or a complaint is resolved, the following data on current and former licensees and
300	296		9.30applicants are public: the general nature of the complaint or allegations leading to the
301	297		9.31temporary immediate suspension; the substance and investigative findings of the licensing
302	298		9.32or maltreatment complaint, licensing violation, or substantiated maltreatment; the existence
303	299		9.33of settlement negotiations; the record of informal resolution of a licensing violation; orders
304	300		9Sec. 4.
305		-	REVISOR DTT H2260-2HF2260 ~~SECOND~~ ENGROSSMENT 10.1of hearing; findings of fact; conclusions of law; specifications of the final correction order,
	301	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 10.1of hearing; findings of fact; conclusions of law; specifications of the final correction order,
306	302		10.2fine, suspension, temporary immediate suspension, revocation, denial, or conditional license
307	303		10.3contained in the record of licensing action; whether a fine has been paid; and the status of
308	304		10.4any appeal of these actions.
309	305		10.5 (iii) When a license denial under section 142A.15 or 245A.05 or a sanction under section
310	306		10.6142B.18 or 245A.07 is based on a determination that a license holder, applicant, or controlling
311	307		10.7individual is responsible for maltreatment under section 626.557 or chapter 260E, the identity
312	308		10.8of the applicant, license holder, or controlling individual as the individual responsible for
313	309		10.9maltreatment is public data at the time of the issuance of the license denial or sanction.
314	310		10.10 (iv) When a license denial under section 142A.15 or 245A.05 or a sanction under section
315	311		10.11142B.18 or 245A.07 is based on a determination that a license holder, applicant, or controlling
316	312		10.12individual is disqualified under chapter 245C, the identity of the license holder, applicant,
317	313		10.13or controlling individual as the disqualified individual is public data at the time of the
318	314		10.14issuance of the licensing sanction or denial. If the applicant, license holder, or controlling
319	315		10.15individual requests reconsideration of the disqualification and the disqualification is affirmed,
320	316		10.16the reason for the disqualification and the reason to not set aside the disqualification are
321	317		10.17private data.
322	318		10.18 (v) A correction order or fine issued to a child care provider for a licensing violation is
323	319		10.19private data on individuals under section 13.02, subdivision 12, or nonpublic data under
324	320		10.20section 13.02, subdivision 9, if the correction order or fine is seven years old or older.
325	321		10.21 (2) For applicants who withdraw their application prior to licensure or denial of a license,
326	322		10.22the following data are public: the name of the applicant, the city and county in which the
327	323		10.23applicant was seeking licensure, the dates of the commissioner's receipt of the initial
328	324		10.24application and completed application, the type of license sought, and the date of withdrawal
329	325		10.25of the application.
330	326		10.26 (3) For applicants who are denied a license, the following data are public: the name and
331	327		10.27address of the applicant, the city and county in which the applicant was seeking licensure,
332	328		10.28the dates of the commissioner's receipt of the initial application and completed application,
333	329		10.29the type of license sought, the date of denial of the application, the nature of the basis for
334	330		10.30the denial, the existence of settlement negotiations, the record of informal resolution of a
335	331		10.31denial, orders of hearings, findings of fact, conclusions of law, specifications of the final
336	332		10.32order of denial, and the status of any appeal of the denial.
337	333		10.33 (4) When maltreatment is substantiated under section 626.557 or chapter 260E and the
338	334		10.34victim and the substantiated perpetrator are affiliated with a program licensed under chapter
339	335		10Sec. 4.
340		-	REVISOR DTT H2260-2HF2260 ~~SECOND~~ ENGROSSMENT 11.1142B or 245A; the commissioner of human services; commissioner of children, youth, and
	336	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 11.1142B or 245A; the commissioner of human services; commissioner of children, youth, and
341	337		11.2families; local social services agency; or county welfare agency may inform the license
342	338		11.3holder where the maltreatment occurred of the identity of the substantiated perpetrator and
343	339		11.4the victim.
344	340		11.5 (5) Notwithstanding clause (1), for child foster care, only the name of the license holder
345	341		11.6and the status of the license are public if the county attorney has requested that data otherwise
346	342		11.7classified as public data under clause (1) be considered private data based on the best interests
347	343		11.8of a child in placement in a licensed program.
348	344		11.9 (c) The following are private data on individuals under section 13.02, subdivision 12,
349	345		11.10or nonpublic data under section 13.02, subdivision 9: personal and personal financial data
350	346		11.11on family day care program and family foster care program applicants and licensees and
351	347		11.12their family members who provide services under the license.
352	348		11.13 (d) The following are private data on individuals: the identity of persons who have made
353	349		11.14reports concerning licensees or applicants that appear in inactive investigative data, and the
354	350		11.15records of clients or employees of the licensee or applicant for licensure whose records are
355	351		11.16received by the licensing agency for purposes of review or in anticipation of a contested
356	352		11.17matter. The names of reporters of complaints or alleged violations of licensing standards
357	353		11.18under chapters 142B, 245A, 245B, 245C, and 245D, and applicable rules and alleged
358	354		11.19maltreatment under section 626.557 and chapter 260E, are confidential data and may be
359	355		11.20disclosed only as provided in section 260E.21, subdivision 4; 260E.35; or 626.557,
360	356		11.21subdivision 12b.
361	357		11.22 (e) Data classified as private, confidential, nonpublic, or protected nonpublic under this
362	358		11.23subdivision become public data if submitted to a court or administrative law judge as part
363	359		11.24of a disciplinary proceeding in which there is a public hearing concerning a license which
364	360		11.25has been suspended, immediately suspended, revoked, or denied.
365	361		11.26 (f) Data generated in the course of licensing investigations that relate to an alleged
366	362		11.27violation of law are investigative data under subdivision 3.
367	363		11.28 (g) Data that are not public data collected, maintained, used, or disseminated under this
368	364		11.29subdivision that relate to or are derived from a report as defined in section 260E.03, or
369	365		11.30626.5572, subdivision 18, are subject to the destruction provisions of sections 260E.35,
370	366		11.31subdivision 6, and 626.557, subdivision 12b.
371	367		11.32 (h) Upon request, not public data collected, maintained, used, or disseminated under
372	368		11.33this subdivision that relate to or are derived from a report of substantiated maltreatment as
373	369		11.34defined in section 626.557 or chapter 260E may be exchanged with the Department of
374	370		11Sec. 4.
375		-	REVISOR DTT H2260-2HF2260 ~~SECOND~~ ENGROSSMENT 12.1Health for purposes of completing background studies pursuant to section 144.057 and with
	371	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 12.1Health for purposes of completing background studies pursuant to section 144.057 and with
376	372		12.2the Department of Corrections for purposes of completing background studies pursuant to
377	373		12.3section 241.021.
378	374		12.4 (i) Data on individuals collected according to licensing activities under chapters 142B,
379	375		12.5245A, and 245C, data on individuals collected by the commissioner of human services
380	376		12.6according to investigations under section 626.557 and chapters 142B, 245A, 245B, 245C,
381	377		12.7245D, and 260E may be shared with the Department of Human Rights, the Department of
382	378		12.8Health, the Department of Corrections, the ombudsman for mental health and developmental
383	379		12.9disabilities, and the individual's professional regulatory board when there is reason to believe
384	380		12.10that laws or standards under the jurisdiction of those agencies may have been violated or
385	381		12.11the information may otherwise be relevant to the board's regulatory jurisdiction. Background
386	382		12.12study data on an individual who is the subject of a background study under chapter 245C
387	383		12.13for a licensed service for which the commissioner of human services or; commissioner of
388	384		12.14children, youth, and families; or the Direct Care and Treatment executive board is the license
389	385		12.15holder may be shared with the commissioner and the commissioner's delegate by the licensing
390	386		12.16division. Unless otherwise specified in this chapter, the identity of a reporter of alleged
391	387		12.17maltreatment or licensing violations may not be disclosed.
392	388		12.18 (j) In addition to the notice of determinations required under sections 260E.24,
393	389		12.19subdivisions 5 and 7, and 260E.30, subdivision 6, paragraphs (b), (c), (d), (e), and (f), if the
394	390		12.20commissioner of children, youth, and families or the local social services agency has
395	391		12.21determined that an individual is a substantiated perpetrator of maltreatment of a child based
396	392		12.22on sexual abuse, as defined in section 260E.03, and the commissioner or local social services
397	393		12.23agency knows that the individual is a person responsible for a child's care in another facility,
398	394		12.24the commissioner or local social services agency shall notify the head of that facility of this
399	395		12.25determination. The notification must include an explanation of the individual's available
400	396		12.26appeal rights and the status of any appeal. If a notice is given under this paragraph, the
401	397		12.27government entity making the notification shall provide a copy of the notice to the individual
402	398		12.28who is the subject of the notice.
403	399		12.29 (k) All not public data collected, maintained, used, or disseminated under this subdivision
404	400		12.30and subdivision 3 may be exchanged between the Department of Human Services, Licensing
405	401		12.31Division, and the Department of Corrections for purposes of regulating services for which
406	402		12.32the Department of Human Services and the Department of Corrections have regulatory
407	403		12.33authority.
408	404		12.34 EFFECTIVE DATE.This section is effective July 1, 2025.
409	405		12Sec. 4.
410		-	REVISOR DTT H2260-2HF2260 ~~SECOND~~ ENGROSSMENT 13.1 Sec. 5. Minnesota Statutes 2024, section 15.471, subdivision 6, is amended to read:
	406	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 13.1 Sec. 5. Minnesota Statutes 2024, section 15.471, subdivision 6, is amended to read:
411	407		13.2 Subd. 6.Party.(a) Except as modified by paragraph (b), "party" means a person named
412	408		13.3or admitted as a party, or seeking and entitled to be admitted as a party, in a court action or
413	409		13.4contested case proceeding, or a person admitted by an administrative law judge for limited
414	410		13.5purposes, and who is:
415	411		13.6 (1) an unincorporated business, partnership, corporation, association, or organization,
416	412		13.7having not more than 500 employees at the time the civil action was filed or the contested
417	413		13.8case proceeding was initiated; and
418	414		13.9 (2) an unincorporated business, partnership, corporation, association, or organization
419	415		13.10whose annual revenues did not exceed $7,000,000 at the time the civil action was filed or
420	416		13.11the contested case proceeding was initiated.
421	417		13.12 (b) "Party" also includes a partner, officer, shareholder, member, or owner of an entity
422	418		13.13described in paragraph (a), clauses (1) and (2).
423	419		13.14 (c) "Party" does not include a person providing services pursuant to licensure or
424	420		13.15reimbursement on a cost basis by the Department of Health or, the Department of Human
425	421		13.16Services, or Direct Care and Treatment when that person is named or admitted or seeking
426	422		13.17to be admitted as a party in a matter which involves the licensing or reimbursement rates,
427	423		13.18procedures, or methodology applicable to those services.
428	424		13.19 EFFECTIVE DATE.This section is effective July 1, 2025.
429	425		13.20Sec. 6. Minnesota Statutes 2024, section 142E.51, subdivision 5, is amended to read:
430	426		13.21 Subd. 5.Administrative disqualification of child care providers caring for children
431	427		13.22receiving child care assistance.(a) The department shall pursue an administrative
432	428		13.23disqualification, if the child care provider is accused of committing an intentional program
433		-	13.24violation, in lieu of a criminal action when it has not been pursued ~~the department refers~~
434		-	13.~~25the investigation to a law enforcement~~ or ~~prosecutorial agency for possible criminal~~
435		-	13.~~26prosecution~~, ~~and the law enforcement or prosecutorial agency does not pursue a criminal~~
436		-	13.~~27action. Intentional program violations include~~ intentionally ~~making false or misleading~~
437		-	13.~~28statements; intentionally offering,~~ ~~providing, soliciting,~~ ~~or receiving illegal remuneration~~
438		-	13.~~29as described in subdivision 6a or in violation of section 609~~.~~542, subdivision 2; intentionally~~
439		-	13.~~30misrepresenting~~, ~~concealing, or withholding facts;~~ ~~and repeatedly and intentionally violating~~
440		-	13.~~31program regulations under this chapter.~~ ~~No conviction is required before~~ the ~~department~~
441		-	13.~~32pursues an administrative disqualification~~. ~~Intent may be proven by demonstrating a pattern~~
442		-	13.~~33of conduct that violates program rules under this chapter.~~
	429	+	13.24violation, in lieu of a criminal action when it has not been pursued. Intentional program
	430	+	13.25violations include intentionally making false or misleading statements; receiving or providing
	431	+	13.26a kickback, as defined in subdivision 6, paragraph (b); intentionally misrepresenting,
	432	+	13.27concealing, or withholding facts; and repeatedly and intentionally violating program
	433	+	13.28regulations under this chapter. Intent may be proven by demonstrating a pattern of conduct
	434	+	13.29that violates program rules under this chapter.
	435	+	13.30 (b) To initiate an administrative disqualification, the commissioner must send written
	436	+	13.31notice using a signature-verified confirmed delivery method to the provider against whom
	437	+	13.32the action is being taken. Unless otherwise specified under this chapter or Minnesota Rules,
	438	+	13.33chapter 3400, the commissioner must send the written notice at least 15 calendar days before
443	439		13Sec. 6.
444		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 14.1 (b) To initiate an administrative disqualification, the commissioner must send written
445		-	14.2notice using a signature-verified confirmed delivery method to the provider against whom
446		-	14.3the action is being taken. Unless otherwise specified under this chapter or Minnesota Rules,
447		-	14.4chapter 3400, the commissioner must send the written notice at least 15 calendar days before
448		-	14.5the adverse action's effective date. The notice shall state (1) the factual basis for the agency's
449		-	14.6determination, (2) the action the agency intends to take, (3) the dollar amount of the monetary
450		-	14.7recovery or recoupment, if known, and (4) the provider's right to appeal the agency's proposed
451		-	14.8action.
452		-	14.9 (c) The provider may appeal an administrative disqualification by submitting a written
453		-	14.10request to the state agency. A provider's request must be received by the state agency no
454		-	14.11later than 30 days after the date the commissioner mails the notice.
455		-	14.12 (d) The provider's appeal request must contain the following:
456		-	14.13 (1) each disputed item, the reason for the dispute, and, if applicable, an estimate of the
457		-	14.14dollar amount involved for each disputed item;
458		-	14.15 (2) the computation the provider believes to be correct, if applicable;
459		-	14.16 (3) the statute or rule relied on for each disputed item; and
460		-	14.17 (4) the name, address, and telephone number of the person at the provider's place of
461		-	14.18business with whom contact may be made regarding the appeal.
462		-	14.19 (e) On appeal, the issuing agency bears the burden of proof to demonstrate by a
463		-	14.20preponderance of the evidence that the provider committed an intentional program violation.
464		-	14.21 (f) The hearing is subject to the requirements of section 142A.20. The human services
465		-	14.22judge may combine a fair hearing and administrative disqualification hearing into a single
466		-	14.23hearing if the factual issues arise out of the same or related circumstances and the provider
467		-	14.24receives prior notice that the hearings will be combined.
468		-	14.25 (g) A provider found to have committed an intentional program violation and is
469		-	14.26administratively disqualified must be disqualified, for a period of three years for the first
470		-	14.27offense and permanently for any subsequent offense, from receiving any payments from
471		-	14.28any child care program under this chapter.
472		-	14.29 (h) Unless a timely and proper appeal made under this section is received by the
473		-	14.30department, the administrative determination of the department is final and binding.
474		-	14Sec. 6.
475		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 15.1 Sec. 7. Minnesota Statutes 2024, section 142E.51, subdivision 6, is amended to read:
476		-	15.2 Subd. 6.Prohibited hiring practice practices.It is prohibited to A person must not
477		-	15.3hire a child care center employee when, as a condition of employment, the employee is
478		-	15.4required to have one or more children who are eligible for or receive child care assistance,
479		-	15.5if:
480		-	15.6 (1) the individual hiring the employee is, or is acting at the direction of or in cooperation
481		-	15.7with, a child care center provider, center owner, director, manager, license holder, or other
482		-	15.8controlling individual; and
483		-	15.9 (2) the individual hiring the employee knows or has reason to know the purpose in hiring
484		-	15.10the employee is to obtain child care assistance program funds.
485		-	15.11Sec. 8. Minnesota Statutes 2024, section 142E.51, is amended by adding a subdivision to
486		-	15.12read:
487		-	15.13 Subd. 6a.Illegal remuneration.(a) Except as provided in paragraph (b), program
488		-	15.14applicants, participants, and providers must not offer, provide, solicit, or receive money, a
489		-	15.15discount, a credit, a waiver, a rebate, a good, a service, employment, or anything else of
490		-	15.16value in exchange for:
491		-	15.17 (1) obtaining or attempting to obtain child care assistance program benefits; or
492		-	15.18 (2) directing a person's child care assistance program benefits to a particular provider.
493		-	15.19 (b) The prohibition in paragraph (a) does not apply to:
494		-	15.20 (1) marketing or promotional offerings that directly benefit an applicant or recipient's
495		-	15.21child or dependent for whom the child care provider is providing child care services; or
496		-	15.22 (2) child care provider discounts, scholarships, or other financial assistance allowed
497		-	15.23under section 142E.17, subdivision 7.
498		-	15.24 (c) An attempt to buy or sell access to a family's child care assistance program benefits
499		-	15.25to an unauthorized person by an applicant, a participant, or a provider is an intentional
500		-	15.26program violation under subdivision 5 and wrongfully obtaining assistance under section
501		-	15.27256.98.
502		-	15.28Sec. 9. Minnesota Statutes 2024, section 245.095, subdivision 5, is amended to read:
503		-	15.29 Subd. 5.Withholding of payments.(a) Except as otherwise provided by state or federal
504		-	15.30law, the commissioner may withhold payments to a provider, vendor, individual, associated
505		-	15Sec. 9.
506		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 16.1individual, or associated entity in any program administered by the commissioner if the
507		-	16.2commissioner determines:
508		-	16.3 (1) there is a credible allegation of fraud for which an investigation is pending for a
509		-	16.4program administered by a Minnesota state or federal agency.;
510		-	16.5 (2) the individual, the entity, or an associated individual or entity was convicted of a
511		-	16.6crime charged in state or federal court with an offense that involves fraud or theft against
512		-	16.7a program administered by the commissioner or another Minnesota state or federal agency.
513		-	16.8For purposes of this subdivision, "convicted" means a judgment of conviction has been
514		-	16.9entered by a federal, state, or local court, regardless of whether an appeal from the judgment
515		-	16.10is pending, and includes a stay of adjudication, a court-ordered diversion program, or a plea
516		-	16.11of guilty or nolo contendere;
517		-	16.12 (3) the provider is operating after a Minnesota state or federal agency orders the
518		-	16.13suspension, revocation, or decertification of the provider's license;
519		-	16.14 (4) the provider, vendor, associated individual, or associated entity, including those
520		-	16.15receiving money under any contract or registered program, has a background study
521		-	16.16disqualification under chapter 245C that has not been set aside and for which no variance
522		-	16.17has been issued, except for a disqualification under section 245C.14, subdivision 5; or
523		-	16.18 (5) by a preponderance of the evidence that the provider, vendor, individual, associated
524		-	16.19individual, or associated entity intentionally provided materially false information when
525		-	16.20billing the commissioner.
526		-	16.21 (b) For purposes of this subdivision, "credible allegation of fraud" means an allegation
527		-	16.22that has been verified by the commissioner from any source, including but not limited to:
528		-	16.23 (1) fraud hotline complaints;
529		-	16.24 (2) claims data mining;
530		-	16.25 (3) patterns identified through provider audits, civil false claims cases, and law
531		-	16.26enforcement investigations; and
532		-	16.27 (4) court filings and other legal documents, including but not limited to police reports,
533		-	16.28complaints, indictments, informations, affidavits, declarations, and search warrants.
534		-	16.29 (c) The commissioner must send notice of the withholding of payments within five days
535		-	16.30of taking such action. The notice must:
536		-	16.31 (1) state that payments are being withheld according to this subdivision;
537		-	16Sec. 9.
538		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 17.1 (2) set forth the general allegations related to the withholding action, except the notice
539		-	17.2need not disclose specific information concerning an ongoing investigation;
540		-	17.3 (3) state that the withholding is for a temporary period and cite the circumstances under
541		-	17.4which the withholding will be terminated; and
542		-	17.5 (4) inform the provider, vendor, individual, associated individual, or associated entity
543		-	17.6of the right to submit written evidence to contest the withholding action for consideration
544		-	17.7by the commissioner.
545		-	17.8 (d) If the commissioner withholds payments under this subdivision, the provider, vendor,
546		-	17.9individual, associated individual, or associated entity has a right to request administrative
547		-	17.10reconsideration. A request for administrative reconsideration must be made in writing, state
548		-	17.11with specificity the reasons the payment withholding decision is in error, and include
549		-	17.12documents to support the request. Within 60 days from receipt of the request, the
550		-	17.13commissioner shall judiciously review allegations, facts, evidence available to the
551		-	17.14commissioner, and information submitted by the provider, vendor, individual, associated
552		-	17.15individual, or associated entity to determine whether the payment withholding should remain
553		-	17.16in place.
554		-	17.17 (e) The commissioner shall stop withholding payments if the commissioner determines
555		-	17.18there is insufficient evidence of fraud by the provider, vendor, individual, associated
556		-	17.19individual, or associated entity or when legal proceedings relating to the alleged fraud are
557		-	17.20completed, unless the commissioner has sent notice under subdivision 3 to the provider,
558		-	17.21vendor, individual, associated individual, or associated entity.
559		-	17.22 (f) The withholding of payments is a temporary action and is not subject to appeal under
560		-	17.23section 256.045 or chapter 14.
561		-	17.24 EFFECTIVE DATE.This section is effective July 1, 2025.
562		-	17.25Sec. 10. Minnesota Statutes 2024, section 245.095, is amended by adding a subdivision
563		-	17.26to read:
564		-	17.27 Subd. 6.Data practices.The commissioner may exchange information, including claims
565		-	17.28data, with state or federal agencies, professional boards, departments, or programs for the
566		-	17.29purpose of investigating or prosecuting a criminal, civil, or administrative proceeding related
567		-	17.30to suspected fraud or exclusion from any program administered by a state or federal agency.
	440	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 14.1the adverse action's effective date. The notice shall state (1) the factual basis for the agency's
	441	+	14.2determination, (2) the action the agency intends to take, (3) the dollar amount of the monetary
	442	+	14.3recovery or recoupment, if known, and (4) the provider's right to appeal the agency's proposed
	443	+	14.4action.
	444	+	14.5 (c) The provider may appeal an administrative disqualification by submitting a written
	445	+	14.6request to the state agency. A provider's request must be received by the state agency no
	446	+	14.7later than 30 days after the date the commissioner mails the notice.
	447	+	14.8 (d) The provider's appeal request must contain the following:
	448	+	14.9 (1) each disputed item, the reason for the dispute, and, if applicable, an estimate of the
	449	+	14.10dollar amount involved for each disputed item;
	450	+	14.11 (2) the computation the provider believes to be correct, if applicable;
	451	+	14.12 (3) the statute or rule relied on for each disputed item; and
	452	+	14.13 (4) the name, address, and telephone number of the person at the provider's place of
	453	+	14.14business with whom contact may be made regarding the appeal.
	454	+	14.15 (e) On appeal, the issuing agency bears the burden of proof to demonstrate by a
	455	+	14.16preponderance of the evidence that the provider committed an intentional program violation.
	456	+	14.17 (f) The hearing is subject to the requirements of section 142A.20. The human services
	457	+	14.18judge may combine a fair hearing and administrative disqualification hearing into a single
	458	+	14.19hearing if the factual issues arise out of the same or related circumstances and the provider
	459	+	14.20receives prior notice that the hearings will be combined.
	460	+	14.21 (g) A provider found to have committed an intentional program violation and is
	461	+	14.22administratively disqualified must be disqualified, for a period of three years for the first
	462	+	14.23offense and permanently for any subsequent offense, from receiving any payments from
	463	+	14.24any child care program under this chapter.
	464	+	14.25 (h) Unless a timely and proper appeal made under this section is received by the
	465	+	14.26department, the administrative determination of the department is final and binding.
	466	+	14.27Sec. 7. Minnesota Statutes 2024, section 142E.51, subdivision 6, is amended to read:
	467	+	14.28 Subd. 6.Prohibited hiring practice practices.(a) It is prohibited to hire a child care
	468	+	14.29center employee when, as a condition of employment, the employee is required to have one
	469	+	14.30or more children who are eligible for or receive child care assistance, if:
	470	+	14Sec. 7.
	471	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 15.1 (1) the individual hiring the employee is, or is acting at the direction of or in cooperation
	472	+	15.2with, a child care center provider, center owner, director, manager, license holder, or other
	473	+	15.3controlling individual; and
	474	+	15.4 (2) the individual hiring the employee knows or has reason to know the purpose in hiring
	475	+	15.5the employee is to obtain child care assistance program funds.
	476	+	15.6 (b) Program applicants, participants, and providers are prohibited from receiving or
	477	+	15.7providing a kickback or payment in exchange for obtaining or attempting to obtain child
	478	+	15.8care assistance benefits for their own financial gain. This paragraph does not apply to:
	479	+	15.9 (1) marketing or promotional offerings that directly benefit an applicant or recipient's
	480	+	15.10child or dependent for whom the child care provider is providing child care services; or
	481	+	15.11 (2) child care provider discounts, scholarships, or other financial assistance allowed
	482	+	15.12under section 142E.17, subdivision 7.
	483	+	15.13 (c) An attempt to buy or sell access to a family's child care subsidy benefits to an
	484	+	15.14unauthorized person by an applicant, a participant, or a provider is a kickback, an intentional
	485	+	15.15program violation under subdivision 5, and wrongfully obtaining assistance under section
	486	+	15.16256.98.
	487	+	15.17Sec. 8. Minnesota Statutes 2024, section 245.095, subdivision 5, is amended to read:
	488	+	15.18 Subd. 5.Withholding of payments.(a) Except as otherwise provided by state or federal
	489	+	15.19law, the commissioner may withhold payments to a provider, vendor, individual, associated
	490	+	15.20individual, or associated entity in any program administered by the commissioner if the
	491	+	15.21commissioner determines:
	492	+	15.22 (1) there is a credible allegation of fraud for which an investigation is pending for a
	493	+	15.23program administered by a Minnesota state or federal agency.;
	494	+	15.24 (2) the individual, the entity, or an associated individual or entity was convicted of a
	495	+	15.25crime charged in state or federal court with an offense that involves fraud or theft against
	496	+	15.26a program administered by the commissioner or another Minnesota state or federal agency.
	497	+	15.27For purposes of this subdivision, "convicted" means a judgment of conviction has been
	498	+	15.28entered by a federal, state, or local court, regardless of whether an appeal from the judgment
	499	+	15.29is pending, and includes a stay of adjudication, a court-ordered diversion program, or a plea
	500	+	15.30of guilty or nolo contendere;
	501	+	15.31 (3) the provider is operating after a Minnesota state or federal agency orders the
	502	+	15.32suspension, revocation, or decertification of the provider's license;
	503	+	15Sec. 8.
	504	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 16.1 (4) the provider, vendor, associated individual, or associated entity, including those
	505	+	16.2receiving money under any contract or registered program, has a background study
	506	+	16.3disqualification under chapter 245C that has not been set aside and for which no variance
	507	+	16.4has been issued, except for a disqualification under section 245C.14, subdivision 5; or
	508	+	16.5 (5) by a preponderance of the evidence that the provider, vendor, individual, associated
	509	+	16.6individual, or associated entity intentionally provided materially false information when
	510	+	16.7billing the commissioner.
	511	+	16.8 (b) For purposes of this subdivision, "credible allegation of fraud" means an allegation
	512	+	16.9that has been verified by the commissioner from any source, including but not limited to:
	513	+	16.10 (1) fraud hotline complaints;
	514	+	16.11 (2) claims data mining;
	515	+	16.12 (3) patterns identified through provider audits, civil false claims cases, and law
	516	+	16.13enforcement investigations; and
	517	+	16.14 (4) court filings and other legal documents, including but not limited to police reports,
	518	+	16.15complaints, indictments, informations, affidavits, declarations, and search warrants.
	519	+	16.16 (c) The commissioner must send notice of the withholding of payments within five days
	520	+	16.17of taking such action. The notice must:
	521	+	16.18 (1) state that payments are being withheld according to this subdivision;
	522	+	16.19 (2) set forth the general allegations related to the withholding action, except the notice
	523	+	16.20need not disclose specific information concerning an ongoing investigation;
	524	+	16.21 (3) state that the withholding is for a temporary period and cite the circumstances under
	525	+	16.22which the withholding will be terminated; and
	526	+	16.23 (4) inform the provider, vendor, individual, associated individual, or associated entity
	527	+	16.24of the right to submit written evidence to contest the withholding action for consideration
	528	+	16.25by the commissioner.
	529	+	16.26 (d) If the commissioner withholds payments under this subdivision, the provider, vendor,
	530	+	16.27individual, associated individual, or associated entity has a right to request administrative
	531	+	16.28reconsideration. A request for administrative reconsideration must be made in writing, state
	532	+	16.29with specificity the reasons the payment withholding decision is in error, and include
	533	+	16.30documents to support the request. Within 60 days from receipt of the request, the
	534	+	16.31commissioner shall judiciously review allegations, facts, evidence available to the
	535	+	16.32commissioner, and information submitted by the provider, vendor, individual, associated
	536	+	16Sec. 8.
	537	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 17.1individual, or associated entity to determine whether the payment withholding should remain
	538	+	17.2in place.
	539	+	17.3 (e) The commissioner shall stop withholding payments if the commissioner determines
	540	+	17.4there is insufficient evidence of fraud by the provider, vendor, individual, associated
	541	+	17.5individual, or associated entity or when legal proceedings relating to the alleged fraud are
	542	+	17.6completed, unless the commissioner has sent notice under subdivision 3 to the provider,
	543	+	17.7vendor, individual, associated individual, or associated entity.
	544	+	17.8 (f) The withholding of payments is a temporary action and is not subject to appeal under
	545	+	17.9section 256.045 or chapter 14.
	546	+	17.10 EFFECTIVE DATE.This section is effective July 1, 2025.
	547	+	17.11Sec. 9. Minnesota Statutes 2024, section 245.095, is amended by adding a subdivision to
	548	+	17.12read:
	549	+	17.13 Subd. 6.Data practices.The commissioner may exchange information, including claims
	550	+	17.14data, with state or federal agencies, professional boards, departments, or programs for the
	551	+	17.15purpose of investigating or prosecuting a criminal, civil, or administrative proceeding related
	552	+	17.16to suspected fraud or exclusion from any program administered by a state or federal agency.
	553	+	17.17Sec. 10. Minnesota Statutes 2024, section 245A.04, subdivision 1, is amended to read:
	554	+	17.18 Subdivision 1.Application for licensure.(a) An individual, organization, or government
	555	+	17.19entity that is subject to licensure under section 245A.03 must apply for a license. The
	556	+	17.20application must be made on the forms and in the manner prescribed by the commissioner.
	557	+	17.21The commissioner shall provide the applicant with instruction in completing the application
	558	+	17.22and provide information about the rules and requirements of other state agencies that affect
	559	+	17.23the applicant. An applicant seeking licensure in Minnesota with headquarters outside of
	560	+	17.24Minnesota must have a program office located within 30 miles of the Minnesota border.
	561	+	17.25An applicant who intends to buy or otherwise acquire a program or services licensed under
	562	+	17.26this chapter that is owned by another license holder must apply for a license under this
	563	+	17.27chapter and comply with the application procedures in this section and section 245A.043.
	564	+	17.28 The commissioner shall act on the application within 90 working days after a complete
	565	+	17.29application and any required reports have been received from other state agencies or
	566	+	17.30departments, counties, municipalities, or other political subdivisions. The commissioner
	567	+	17.31shall not consider an application to be complete until the commissioner receives all of the
	568	+	17.32required information. If the applicant or a controlling individual is the subject of a pending
568	569		17Sec. 10.
569		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 18.1 Sec. 11. Minnesota Statutes 2024, section 245A.04, subdivision 1, is amended to read:
570		-	18.2 Subdivision 1.Application for licensure.(a) An individual, organization, or government
571		-	18.3entity that is subject to licensure under section 245A.03 must apply for a license. The
572		-	18.4application must be made on the forms and in the manner prescribed by the commissioner.
573		-	18.5The commissioner shall provide the applicant with instruction in completing the application
574		-	18.6and provide information about the rules and requirements of other state agencies that affect
575		-	18.7the applicant. An applicant seeking licensure in Minnesota with headquarters outside of
576		-	18.8Minnesota must have a program office located within 30 miles of the Minnesota border.
577		-	18.9An applicant who intends to buy or otherwise acquire a program or services licensed under
578		-	18.10this chapter that is owned by another license holder must apply for a license under this
579		-	18.11chapter and comply with the application procedures in this section and section 245A.043.
580		-	18.12 The commissioner shall act on the application within 90 working days after a complete
581		-	18.13application and any required reports have been received from other state agencies or
582		-	18.14departments, counties, municipalities, or other political subdivisions. The commissioner
583		-	18.15shall not consider an application to be complete until the commissioner receives all of the
584		-	18.16required information. If the applicant or a controlling individual is the subject of a pending
585		-	18.17administrative, civil, or criminal investigation, the application is not complete until the
586		-	18.18investigation has closed or the related legal proceedings are complete.
587		-	18.19 When the commissioner receives an application for initial licensure that is incomplete
588		-	18.20because the applicant failed to submit required documents or that is substantially deficient
589		-	18.21because the documents submitted do not meet licensing requirements, the commissioner
590		-	18.22shall provide the applicant written notice that the application is incomplete or substantially
591		-	18.23deficient. In the written notice to the applicant the commissioner shall identify documents
592		-	18.24that are missing or deficient and give the applicant 45 days to resubmit a second application
593		-	18.25that is substantially complete. An applicant's failure to submit a substantially complete
594		-	18.26application after receiving notice from the commissioner is a basis for license denial under
595		-	18.27section 245A.043.
596		-	18.28 (b) An application for licensure must identify all controlling individuals as defined in
597		-	18.29section 245A.02, subdivision 5a, and must designate one individual to be the authorized
598		-	18.30agent. The application must be signed by the authorized agent and must include the authorized
599		-	18.31agent's first, middle, and last name; mailing address; and email address. By submitting an
600		-	18.32application for licensure, the authorized agent consents to electronic communication with
601		-	18.33the commissioner throughout the application process. The authorized agent must be
602		-	18.34authorized to accept service on behalf of all of the controlling individuals. A government
603		-	18.35entity that holds multiple licenses under this chapter may designate one authorized agent
604		-	18Sec. 11.
605		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 19.1for all licenses issued under this chapter or may designate a different authorized agent for
606		-	19.2each license. Service on the authorized agent is service on all of the controlling individuals.
607		-	19.3It is not a defense to any action arising under this chapter that service was not made on each
608		-	19.4controlling individual. The designation of a controlling individual as the authorized agent
609		-	19.5under this paragraph does not affect the legal responsibility of any other controlling individual
610		-	19.6under this chapter.
611		-	19.7 (c) An applicant or license holder must have a policy that prohibits license holders,
612		-	19.8employees, subcontractors, and volunteers, when directly responsible for persons served
613		-	19.9by the program, from abusing prescription medication or being in any manner under the
614		-	19.10influence of a chemical that impairs the individual's ability to provide services or care. The
615		-	19.11license holder must train employees, subcontractors, and volunteers about the program's
616		-	19.12drug and alcohol policy.
617		-	19.13 (d) An applicant and license holder must have a program grievance procedure that permits
618		-	19.14persons served by the program and their authorized representatives to bring a grievance to
619		-	19.15the highest level of authority in the program.
620		-	19.16 (e) The commissioner may limit communication during the application process to the
621		-	19.17authorized agent or the controlling individuals identified on the license application and for
622		-	19.18whom a background study was initiated under chapter 245C. Upon implementation of the
623		-	19.19provider licensing and reporting hub, applicants and license holders must use the hub in the
624		-	19.20manner prescribed by the commissioner. The commissioner may require the applicant,
625		-	19.21except for child foster care, to demonstrate competence in the applicable licensing
626		-	19.22requirements by successfully completing a written examination. The commissioner may
627		-	19.23develop a prescribed written examination format.
628		-	19.24 (f) When an applicant is an individual, the applicant must provide:
629		-	19.25 (1) the applicant's taxpayer identification numbers including the Social Security number
630		-	19.26or Minnesota tax identification number, and federal employer identification number if the
631		-	19.27applicant has employees;
632		-	19.28 (2) at the request of the commissioner, a copy of the most recent filing with the secretary
633		-	19.29of state that includes the complete business name, if any;
634		-	19.30 (3) if doing business under a different name, the doing business as (DBA) name, as
635		-	19.31registered with the secretary of state;
636		-	19.32 (4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique
637		-	19.33Minnesota Provider Identifier (UMPI) number; and
638		-	19Sec. 11.
639		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 20.1 (5) at the request of the commissioner, the notarized signature of the applicant or
640		-	20.2authorized agent.
641		-	20.3 (g) When an applicant is an organization, the applicant must provide:
642		-	20.4 (1) the applicant's taxpayer identification numbers including the Minnesota tax
643		-	20.5identification number and federal employer identification number;
644		-	20.6 (2) at the request of the commissioner, a copy of the most recent filing with the secretary
645		-	20.7of state that includes the complete business name, and if doing business under a different
646		-	20.8name, the doing business as (DBA) name, as registered with the secretary of state;
647		-	20.9 (3) the first, middle, and last name, and address for all individuals who will be controlling
648		-	20.10individuals, including all officers, owners, and managerial officials as defined in section
649		-	20.11245A.02, subdivision 5a, and the date that the background study was initiated by the applicant
650		-	20.12for each controlling individual;
651		-	20.13 (4) if applicable, the applicant's NPI number and UMPI number;
652		-	20.14 (5) the documents that created the organization and that determine the organization's
653		-	20.15internal governance and the relations among the persons that own the organization, have
654		-	20.16an interest in the organization, or are members of the organization, in each case as provided
655		-	20.17or authorized by the organization's governing statute, which may include a partnership
656		-	20.18agreement, bylaws, articles of organization, organizational chart, and operating agreement,
657		-	20.19or comparable documents as provided in the organization's governing statute; and
658		-	20.20 (6) the notarized signature of the applicant or authorized agent.
659		-	20.21 (h) When the applicant is a government entity, the applicant must provide:
660		-	20.22 (1) the name of the government agency, political subdivision, or other unit of government
661		-	20.23seeking the license and the name of the program or services that will be licensed;
662		-	20.24 (2) the applicant's taxpayer identification numbers including the Minnesota tax
663		-	20.25identification number and federal employer identification number;
664		-	20.26 (3) a letter signed by the manager, administrator, or other executive of the government
665		-	20.27entity authorizing the submission of the license application; and
666		-	20.28 (4) if applicable, the applicant's NPI number and UMPI number.
667		-	20.29 (i) At the time of application for licensure or renewal of a license under this chapter, the
668		-	20.30applicant or license holder must acknowledge on the form provided by the commissioner
669		-	20.31if the applicant or license holder elects to receive any public funding reimbursement from
670		-	20.32the commissioner for services provided under the license that:
671		-	20Sec. 11.
672		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 21.1 (1) the applicant's or license holder's compliance with the provider enrollment agreement
673		-	21.2or registration requirements for receipt of public funding may be monitored by the
674		-	21.3commissioner as part of a licensing investigation or licensing inspection; and
675		-	21.4 (2) noncompliance with the provider enrollment agreement or registration requirements
676		-	21.5for receipt of public funding that is identified through a licensing investigation or licensing
677		-	21.6inspection, or noncompliance with a licensing requirement that is a basis of enrollment for
678		-	21.7reimbursement for a service, may result in:
679		-	21.8 (i) a correction order or a conditional license under section 245A.06, or sanctions under
680		-	21.9section 245A.07;
681		-	21.10 (ii) nonpayment of claims submitted by the license holder for public program
682		-	21.11reimbursement;
683		-	21.12 (iii) recovery of payments made for the service;
684		-	21.13 (iv) disenrollment in the public payment program; or
685		-	21.14 (v) other administrative, civil, or criminal penalties as provided by law.
686		-	21.15Sec. 12. Minnesota Statutes 2024, section 245A.05, is amended to read:
687		-	21.16 245A.05 DENIAL OF APPLICATION.
688		-	21.17 (a) The commissioner may deny a license if an applicant or controlling individual:
689		-	21.18 (1) fails to submit a substantially complete application after receiving notice from the
690		-	21.19commissioner under section 245A.04, subdivision 1;
691		-	21.20 (2) fails to comply with applicable laws or rules;
692		-	21.21 (3) knowingly withholds relevant information from or gives false or misleading
693		-	21.22information to the commissioner in connection with an application for a license or during
694		-	21.23an investigation;
695		-	21.24 (4) has a disqualification that has not been set aside under section 245C.22 and no
696		-	21.25variance has been granted;
697		-	21.26 (5) has an individual living in the household who received a background study under
698		-	21.27section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification that
699		-	21.28has not been set aside under section 245C.22, and no variance has been granted;
700		-	21.29 (6) is associated with an individual who received a background study under section
701		-	21.30245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised access to
702		-	21Sec. 12.
703		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 22.1children or vulnerable adults, and who has a disqualification that has not been set aside
704		-	22.2under section 245C.22, and no variance has been granted;
705		-	22.3 (7) fails to comply with section 245A.04, subdivision 1, paragraph (f) or (g);
706		-	22.4 (8) fails to demonstrate competent knowledge as required by section 245A.04, subdivision
707		-	22.56;
708		-	22.6 (9) has a history of noncompliance as a license holder or controlling individual with
709		-	22.7applicable laws or rules, including but not limited to this chapter and chapters 142E and
710		-	22.8245C; or
711		-	22.9 (10) is prohibited from holding a license according to section 245.095.; or
712		-	22.10 (11) is the subject of a pending administrative, civil, or criminal investigation.
713		-	22.11 (b) An applicant whose application has been denied by the commissioner must be given
714		-	22.12notice of the denial, which must state the reasons for the denial in plain language. Notice
715		-	22.13must be given by certified mail, by personal service, or through the provider licensing and
716		-	22.14reporting hub. The notice must state the reasons the application was denied and must inform
717		-	22.15the applicant of the right to a contested case hearing under chapter 14 and Minnesota Rules,
718		-	22.16parts 1400.8505 to 1400.8612. The applicant may appeal the denial by notifying the
719		-	22.17commissioner in writing by certified mail, by personal service, or through the provider
720		-	22.18licensing and reporting hub. If mailed, the appeal must be postmarked and sent to the
721		-	22.19commissioner within 20 calendar days after the applicant received the notice of denial. If
722		-	22.20an appeal request is made by personal service, it must be received by the commissioner
723		-	22.21within 20 calendar days after the applicant received the notice of denial. If the order is issued
724		-	22.22through the provider hub, the appeal must be received by the commissioner within 20
725		-	22.23calendar days from the date the commissioner issued the order through the hub. Section
726		-	22.24245A.08 applies to hearings held to appeal the commissioner's denial of an application.
727		-	22.25Sec. 13. Minnesota Statutes 2024, section 245A.07, subdivision 2, is amended to read:
728		-	22.26 Subd. 2.Temporary immediate suspension.(a) The commissioner shall act immediately
729		-	22.27to temporarily suspend a license issued under this chapter if:
730		-	22.28 (1) the license holder's or controlling individual's actions or failure to comply with
731		-	22.29applicable law or rule, or the actions of other individuals or conditions in the program, pose
732		-	22.30an imminent risk of harm to the health, safety, or rights of persons served by the program;
733		-	22Sec. 13.
734		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 23.1 (2) while the program continues to operate pending an appeal of an order of revocation,
735		-	23.2the commissioner identifies one or more subsequent violations of law or rule which may
736		-	23.3adversely affect the health or safety of persons served by the program; or
737		-	23.4 (3) the license holder or controlling individual is criminally charged in state or federal
738		-	23.5court with an offense that involves fraud or theft against a program administered by the
739		-	23.6commissioner a state or federal agency.
740		-	23.7 (b) No state funds shall be made available or be expended by any agency or department
741		-	23.8of state, county, or municipal government for use by a license holder regulated under this
742		-	23.9chapter while a license issued under this chapter is under immediate suspension. A notice
743		-	23.10stating the reasons for the immediate suspension and informing the license holder of the
744		-	23.11right to an expedited hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to
745		-	23.121400.8612, must be delivered by personal service to the address shown on the application
746		-	23.13or the last known address of the license holder. The license holder may appeal an order
747		-	23.14immediately suspending a license. The appeal of an order immediately suspending a license
748		-	23.15must be made in writing by certified mail, personal service, or other means expressly set
749		-	23.16forth in the commissioner's order. If mailed, the appeal must be postmarked and sent to the
750		-	23.17commissioner within five calendar days after the license holder receives notice that the
751		-	23.18license has been immediately suspended. If a request is made by personal service, it must
752		-	23.19be received by the commissioner within five calendar days after the license holder received
753		-	23.20the order. A license holder and any controlling individual shall discontinue operation of the
754		-	23.21program upon receipt of the commissioner's order to immediately suspend the license.
755		-	23.22 (c) The commissioner may act immediately to temporarily suspend a license issued
756		-	23.23under this chapter if the license holder or controlling individual is the subject of a pending
757		-	23.24administrative, civil, or criminal investigation or subject to an administrative or civil action
758		-	23.25related to fraud against a program administered by a state or federal agency.
759		-	23.26Sec. 14. Minnesota Statutes 2024, section 245C.05, is amended by adding a subdivision
760		-	23.27to read:
761		-	23.28 Subd. 9.Electronic signature.For documentation requiring a signature under this
762		-	23.29chapter, use of an electronic signature as defined under section 325L.02, paragraph (h), is
763		-	23.30allowed.
764		-	23.31Sec. 15. Minnesota Statutes 2024, section 245C.08, subdivision 3, is amended to read:
765		-	23.32 Subd. 3.Arrest and investigative information.(a) For any background study completed
766		-	23.33under this section, if the commissioner has reasonable cause to believe the information is
767		-	23Sec. 15.
768		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 24.1pertinent to the disqualification of an individual, the commissioner also may review arrest
769		-	24.2and investigative information from:
770		-	24.3 (1) the Bureau of Criminal Apprehension;
771		-	24.4 (2) the commissioners of children, youth, and families; health; and human services;
772		-	24.5 (3) a county attorney prosecutor;
773		-	24.6 (4) a county sheriff;
774		-	24.7 (5) (4) a county agency;
775		-	24.8 (6) (5) a local chief of police law enforcement agency;
776		-	24.9 (7) (6) other states;
777		-	24.10 (8) (7) the courts;
778		-	24.11 (9) (8) the Federal Bureau of Investigation;
779		-	24.12 (10) (9) the National Criminal Records Repository; and
780		-	24.13 (11) (10) criminal records from other states.
781		-	24.14 (b) Except when specifically required by law, the commissioner is not required to conduct
782		-	24.15more than one review of a subject's records from the Federal Bureau of Investigation if a
783		-	24.16review of the subject's criminal history with the Federal Bureau of Investigation has already
784		-	24.17been completed by the commissioner and there has been no break in the subject's affiliation
785		-	24.18with the entity that initiated the background study.
786		-	24.19 (c) If the commissioner conducts a national criminal history record check when required
787		-	24.20by law and uses the information from the national criminal history record check to make a
788		-	24.21disqualification determination, the data obtained is private data and cannot be shared with
789		-	24.22private agencies or prospective employers of the background study subject.
790		-	24.23 (d) If the commissioner conducts a national criminal history record check when required
791		-	24.24by law and uses the information from the national criminal history record check to make a
792		-	24.25disqualification determination, the license holder or entity that submitted the study is not
793		-	24.26required to obtain a copy of the background study subject's disqualification letter under
794		-	24.27section 245C.17, subdivision 3.
795		-	24Sec. 15.
796		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 25.1 Sec. 16. Minnesota Statutes 2024, section 245C.14, is amended by adding a subdivision
797		-	25.2to read:
798		-	25.3 Subd. 6.Disqualification from owning, operating, or billing.The commissioner shall
799		-	25.4disqualify an individual who is the subject of a background study from any position involving
800		-	25.5ownership, management, or control of a program or billing activities if a background study
801		-	25.6completed under this chapter shows a violation of section 142A.12, 245.095, or 256B.064.
802		-	25.7 EFFECTIVE DATE.This section is effective July 1, 2025.
803		-	25.8 Sec. 17. Minnesota Statutes 2024, section 245C.22, subdivision 5, is amended to read:
804		-	25.9 Subd. 5.Scope of set-aside.(a) If the commissioner sets aside a disqualification under
805		-	25.10this section, the disqualified individual remains disqualified, but may hold a license and
806		-	25.11have direct contact with or access to persons receiving services. Except as provided in
807		-	25.12paragraph (b), the commissioner's set-aside of a disqualification is limited solely to the
808		-	25.13licensed program, applicant, or agency specified in the set aside notice under section 245C.23.
809		-	25.14For personal care provider organizations, financial management services organizations,
810		-	25.15community first services and supports organizations, unlicensed home and community-based
811		-	25.16organizations, and consumer-directed community supports organizations, the commissioner's
812		-	25.17set-aside may further be limited to a specific individual who is receiving services. For new
813		-	25.18background studies required under section 245C.04, subdivision 1, paragraph (h), if an
814		-	25.19individual's disqualification was previously set aside for the license holder's program and
815		-	25.20the new background study results in no new information that indicates the individual may
816		-	25.21pose a risk of harm to persons receiving services from the license holder, the previous
817		-	25.22set-aside shall remain in effect.
818		-	25.23 (b) If the commissioner has previously set aside an individual's disqualification for one
819		-	25.24or more programs or agencies, and the individual is the subject of a subsequent background
820		-	25.25study for a different program or agency, the commissioner shall determine whether the
821		-	25.26disqualification is set aside for the program or agency that initiated the subsequent
822		-	25.27background study. A notice of a set-aside under paragraph (c) shall be issued within 15
823		-	25.28working days if all of the following criteria are met:
824		-	25.29 (1) the subsequent background study was initiated in connection with a program licensed
825		-	25.30or regulated under the same provisions of law and rule for at least one program for which
826		-	25.31the individual's disqualification was previously set aside by the commissioner;
827		-	25.32 (2) the individual is not disqualified for an offense specified in section 245C.15,
828		-	25.33subdivision 1 or 2;
829		-	25Sec. 17.
830		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 26.1 (3) the commissioner has received no new information to indicate that the individual
831		-	26.2may pose a risk of harm to any person served by the program; and
832		-	26.3 (4) the previous set-aside was not limited to a specific person receiving services.
833		-	26.4 (c) Notwithstanding paragraph (b), clause (2), for an individual who is employed in the
834		-	26.5substance use disorder field, if the commissioner has previously set aside an individual's
835		-	26.6disqualification for one or more programs or agencies in the substance use disorder treatment
836		-	26.7field, and the individual is the subject of a subsequent background study for a different
837		-	26.8program or agency in the substance use disorder treatment field, the commissioner shall set
838		-	26.9aside the disqualification for the program or agency in the substance use disorder treatment
839		-	26.10field that initiated the subsequent background study when the criteria under paragraph (b),
840		-	26.11clauses (1), (3), and (4), are met and the individual is not disqualified for an offense specified
841		-	26.12in section 245C.15, subdivision 1. A notice of a set-aside under paragraph (d) shall be issued
842		-	26.13within 15 working days.
843		-	26.14 (d) When a disqualification is set aside under paragraph (b), the notice of background
844		-	26.15study results issued under section 245C.17, in addition to the requirements under section
845		-	26.16245C.17, shall state that the disqualification is set aside for the program or agency that
846		-	26.17initiated the subsequent background study. The notice must inform the individual that the
847		-	26.18individual may request reconsideration of the disqualification under section 245C.21 on the
848		-	26.19basis that the information used to disqualify the individual is incorrect.
849		-	26.20Sec. 18. Minnesota Statutes 2024, section 254A.19, subdivision 4, is amended to read:
850		-	26.21 Subd. 4.Civil commitments.For the purposes of determining level of care, a
851		-	26.22comprehensive assessment does not need to be completed for an individual being committed
852		-	26.23as a chemically dependent person, as defined in section 253B.02, and for the duration of a
853		-	26.24civil commitment under section 253B.09 or 253B.095 in order for a county the individual
854		-	26.25to access be eligible for the behavioral health fund under section 254B.04. The county
855		-	26.26commissioner must determine if the individual meets the financial eligibility requirements
856		-	26.27for the behavioral health fund under section 254B.04.
857		-	26.28 EFFECTIVE DATE.This section is effective July 1, 2025.
858		-	26.29Sec. 19. Minnesota Statutes 2024, section 256.98, subdivision 1, is amended to read:
859		-	26.30 Subdivision 1.Wrongfully obtaining assistance.(a) A person who commits any of the
860		-	26.31following acts or omissions with intent to defeat the purposes of sections 145.891 to 145.897,
861		-	26.32the MFIP program formerly codified in sections 256.031 to 256.0361, the AFDC program
862		-	26Sec. 19.
863		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 27.1formerly codified in sections 256.72 to 256.871, chapter 142G, 256B, 256D, 256I, 256K,
864		-	27.2or 256L, child care assistance programs, and emergency assistance programs under section
865		-	27.3256D.06, is guilty of theft and shall be sentenced under section 609.52, subdivision 3, clauses
866		-	27.4(1) to (5):
867		-	27.5 (1) obtains or attempts to obtain, or aids or abets any person to obtain by means of a
868		-	27.6willfully false statement or representation, by intentional concealment of any material fact,
869		-	27.7or by impersonation or other fraudulent device, assistance or the continued receipt of
870		-	27.8assistance, to include child care assistance or food benefits produced according to sections
871		-	27.9145.891 to 145.897 and MinnesotaCare services according to sections 256.9365, 256.94,
872		-	27.10and 256L.01 to 256L.15, to which the person is not entitled or assistance greater than that
873		-	27.11to which the person is entitled;
874		-	27.12 (2) knowingly aids or abets in buying or in any way disposing of the property of a
875		-	27.13recipient or applicant of assistance without the consent of the county agency; or
876		-	27.14 (3) obtains or attempts to obtain, alone or in collusion with others, the receipt of payments
877		-	27.15to which the individual is not entitled as a provider of subsidized child care, or; by furnishing
878		-	27.16or concurring in offering, providing, soliciting, or receiving illegal remuneration as described
879		-	27.17in section 142E.51, subdivision 6a, or in violation of section 609.542, subdivision 2; or by
880		-	27.18submitting or aiding and abetting the submission of a willfully false claim for child care
881		-	27.19assistance.
882		-	27.20 (b) The continued receipt of assistance to which the person is not entitled or greater than
883		-	27.21that to which the person is entitled as a result of any of the acts, failure to act, or concealment
884		-	27.22described in this subdivision shall be deemed to be continuing offenses from the date that
885		-	27.23the first act or failure to act occurred.
886		-	27.24Sec. 20. Minnesota Statutes 2024, section 256B.064, subdivision 1a, is amended to read:
887		-	27.25 Subd. 1a.Grounds for sanctions.(a) The commissioner may impose sanctions against
888		-	27.26any individual or entity that receives payments from medical assistance or provides goods
889		-	27.27or services for which payment is made from medical assistance for any of the following:
890		-	27.28 (1) fraud, theft, or abuse in connection with the provision of goods and services to
891		-	27.29recipients of public assistance for which payment is made from medical assistance;
892		-	27.30 (2) a pattern of presentment of false or duplicate claims or claims for services not
893		-	27.31medically necessary;
894		-	27.32 (3) a pattern of making false statements of material facts for the purpose of obtaining
895		-	27.33greater compensation than that to which the individual or entity is legally entitled;
	570	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 18.1administrative, civil, or criminal investigation, the application is not complete until the
	571	+	18.2investigation has closed or the related legal proceedings are complete.
	572	+	18.3 When the commissioner receives an application for initial licensure that is incomplete
	573	+	18.4because the applicant failed to submit required documents or that is substantially deficient
	574	+	18.5because the documents submitted do not meet licensing requirements, the commissioner
	575	+	18.6shall provide the applicant written notice that the application is incomplete or substantially
	576	+	18.7deficient. In the written notice to the applicant the commissioner shall identify documents
	577	+	18.8that are missing or deficient and give the applicant 45 days to resubmit a second application
	578	+	18.9that is substantially complete. An applicant's failure to submit a substantially complete
	579	+	18.10application after receiving notice from the commissioner is a basis for license denial under
	580	+	18.11section 245A.043.
	581	+	18.12 (b) An application for licensure must identify all controlling individuals as defined in
	582	+	18.13section 245A.02, subdivision 5a, and must designate one individual to be the authorized
	583	+	18.14agent. The application must be signed by the authorized agent and must include the authorized
	584	+	18.15agent's first, middle, and last name; mailing address; and email address. By submitting an
	585	+	18.16application for licensure, the authorized agent consents to electronic communication with
	586	+	18.17the commissioner throughout the application process. The authorized agent must be
	587	+	18.18authorized to accept service on behalf of all of the controlling individuals. A government
	588	+	18.19entity that holds multiple licenses under this chapter may designate one authorized agent
	589	+	18.20for all licenses issued under this chapter or may designate a different authorized agent for
	590	+	18.21each license. Service on the authorized agent is service on all of the controlling individuals.
	591	+	18.22It is not a defense to any action arising under this chapter that service was not made on each
	592	+	18.23controlling individual. The designation of a controlling individual as the authorized agent
	593	+	18.24under this paragraph does not affect the legal responsibility of any other controlling individual
	594	+	18.25under this chapter.
	595	+	18.26 (c) An applicant or license holder must have a policy that prohibits license holders,
	596	+	18.27employees, subcontractors, and volunteers, when directly responsible for persons served
	597	+	18.28by the program, from abusing prescription medication or being in any manner under the
	598	+	18.29influence of a chemical that impairs the individual's ability to provide services or care. The
	599	+	18.30license holder must train employees, subcontractors, and volunteers about the program's
	600	+	18.31drug and alcohol policy.
	601	+	18.32 (d) An applicant and license holder must have a program grievance procedure that permits
	602	+	18.33persons served by the program and their authorized representatives to bring a grievance to
	603	+	18.34the highest level of authority in the program.
	604	+	18Sec. 10.
	605	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 19.1 (e) The commissioner may limit communication during the application process to the
	606	+	19.2authorized agent or the controlling individuals identified on the license application and for
	607	+	19.3whom a background study was initiated under chapter 245C. Upon implementation of the
	608	+	19.4provider licensing and reporting hub, applicants and license holders must use the hub in the
	609	+	19.5manner prescribed by the commissioner. The commissioner may require the applicant,
	610	+	19.6except for child foster care, to demonstrate competence in the applicable licensing
	611	+	19.7requirements by successfully completing a written examination. The commissioner may
	612	+	19.8develop a prescribed written examination format.
	613	+	19.9 (f) When an applicant is an individual, the applicant must provide:
	614	+	19.10 (1) the applicant's taxpayer identification numbers including the Social Security number
	615	+	19.11or Minnesota tax identification number, and federal employer identification number if the
	616	+	19.12applicant has employees;
	617	+	19.13 (2) at the request of the commissioner, a copy of the most recent filing with the secretary
	618	+	19.14of state that includes the complete business name, if any;
	619	+	19.15 (3) if doing business under a different name, the doing business as (DBA) name, as
	620	+	19.16registered with the secretary of state;
	621	+	19.17 (4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique
	622	+	19.18Minnesota Provider Identifier (UMPI) number; and
	623	+	19.19 (5) at the request of the commissioner, the notarized signature of the applicant or
	624	+	19.20authorized agent.
	625	+	19.21 (g) When an applicant is an organization, the applicant must provide:
	626	+	19.22 (1) the applicant's taxpayer identification numbers including the Minnesota tax
	627	+	19.23identification number and federal employer identification number;
	628	+	19.24 (2) at the request of the commissioner, a copy of the most recent filing with the secretary
	629	+	19.25of state that includes the complete business name, and if doing business under a different
	630	+	19.26name, the doing business as (DBA) name, as registered with the secretary of state;
	631	+	19.27 (3) the first, middle, and last name, and address for all individuals who will be controlling
	632	+	19.28individuals, including all officers, owners, and managerial officials as defined in section
	633	+	19.29245A.02, subdivision 5a, and the date that the background study was initiated by the applicant
	634	+	19.30for each controlling individual;
	635	+	19.31 (4) if applicable, the applicant's NPI number and UMPI number;
	636	+	19Sec. 10.
	637	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 20.1 (5) the documents that created the organization and that determine the organization's
	638	+	20.2internal governance and the relations among the persons that own the organization, have
	639	+	20.3an interest in the organization, or are members of the organization, in each case as provided
	640	+	20.4or authorized by the organization's governing statute, which may include a partnership
	641	+	20.5agreement, bylaws, articles of organization, organizational chart, and operating agreement,
	642	+	20.6or comparable documents as provided in the organization's governing statute; and
	643	+	20.7 (6) the notarized signature of the applicant or authorized agent.
	644	+	20.8 (h) When the applicant is a government entity, the applicant must provide:
	645	+	20.9 (1) the name of the government agency, political subdivision, or other unit of government
	646	+	20.10seeking the license and the name of the program or services that will be licensed;
	647	+	20.11 (2) the applicant's taxpayer identification numbers including the Minnesota tax
	648	+	20.12identification number and federal employer identification number;
	649	+	20.13 (3) a letter signed by the manager, administrator, or other executive of the government
	650	+	20.14entity authorizing the submission of the license application; and
	651	+	20.15 (4) if applicable, the applicant's NPI number and UMPI number.
	652	+	20.16 (i) At the time of application for licensure or renewal of a license under this chapter, the
	653	+	20.17applicant or license holder must acknowledge on the form provided by the commissioner
	654	+	20.18if the applicant or license holder elects to receive any public funding reimbursement from
	655	+	20.19the commissioner for services provided under the license that:
	656	+	20.20 (1) the applicant's or license holder's compliance with the provider enrollment agreement
	657	+	20.21or registration requirements for receipt of public funding may be monitored by the
	658	+	20.22commissioner as part of a licensing investigation or licensing inspection; and
	659	+	20.23 (2) noncompliance with the provider enrollment agreement or registration requirements
	660	+	20.24for receipt of public funding that is identified through a licensing investigation or licensing
	661	+	20.25inspection, or noncompliance with a licensing requirement that is a basis of enrollment for
	662	+	20.26reimbursement for a service, may result in:
	663	+	20.27 (i) a correction order or a conditional license under section 245A.06, or sanctions under
	664	+	20.28section 245A.07;
	665	+	20.29 (ii) nonpayment of claims submitted by the license holder for public program
	666	+	20.30reimbursement;
	667	+	20.31 (iii) recovery of payments made for the service;
	668	+	20.32 (iv) disenrollment in the public payment program; or
	669	+	20Sec. 10.
	670	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 21.1 (v) other administrative, civil, or criminal penalties as provided by law.
	671	+	21.2 Sec. 11. Minnesota Statutes 2024, section 245A.05, is amended to read:
	672	+	21.3 245A.05 DENIAL OF APPLICATION.
	673	+	21.4 (a) The commissioner may deny a license if an applicant or controlling individual:
	674	+	21.5 (1) fails to submit a substantially complete application after receiving notice from the
	675	+	21.6commissioner under section 245A.04, subdivision 1;
	676	+	21.7 (2) fails to comply with applicable laws or rules;
	677	+	21.8 (3) knowingly withholds relevant information from or gives false or misleading
	678	+	21.9information to the commissioner in connection with an application for a license or during
	679	+	21.10an investigation;
	680	+	21.11 (4) has a disqualification that has not been set aside under section 245C.22 and no
	681	+	21.12variance has been granted;
	682	+	21.13 (5) has an individual living in the household who received a background study under
	683	+	21.14section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification that
	684	+	21.15has not been set aside under section 245C.22, and no variance has been granted;
	685	+	21.16 (6) is associated with an individual who received a background study under section
	686	+	21.17245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised access to
	687	+	21.18children or vulnerable adults, and who has a disqualification that has not been set aside
	688	+	21.19under section 245C.22, and no variance has been granted;
	689	+	21.20 (7) fails to comply with section 245A.04, subdivision 1, paragraph (f) or (g);
	690	+	21.21 (8) fails to demonstrate competent knowledge as required by section 245A.04, subdivision
	691	+	21.226;
	692	+	21.23 (9) has a history of noncompliance as a license holder or controlling individual with
	693	+	21.24applicable laws or rules, including but not limited to this chapter and chapters 142E and
	694	+	21.25245C; or
	695	+	21.26 (10) is prohibited from holding a license according to section 245.095.; or
	696	+	21.27 (11) is the subject of a pending administrative, civil, or criminal investigation.
	697	+	21.28 (b) An applicant whose application has been denied by the commissioner must be given
	698	+	21.29notice of the denial, which must state the reasons for the denial in plain language. Notice
	699	+	21.30must be given by certified mail, by personal service, or through the provider licensing and
	700	+	21.31reporting hub. The notice must state the reasons the application was denied and must inform
	701	+	21Sec. 11.
	702	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 22.1the applicant of the right to a contested case hearing under chapter 14 and Minnesota Rules,
	703	+	22.2parts 1400.8505 to 1400.8612. The applicant may appeal the denial by notifying the
	704	+	22.3commissioner in writing by certified mail, by personal service, or through the provider
	705	+	22.4licensing and reporting hub. If mailed, the appeal must be postmarked and sent to the
	706	+	22.5commissioner within 20 calendar days after the applicant received the notice of denial. If
	707	+	22.6an appeal request is made by personal service, it must be received by the commissioner
	708	+	22.7within 20 calendar days after the applicant received the notice of denial. If the order is issued
	709	+	22.8through the provider hub, the appeal must be received by the commissioner within 20
	710	+	22.9calendar days from the date the commissioner issued the order through the hub. Section
	711	+	22.10245A.08 applies to hearings held to appeal the commissioner's denial of an application.
	712	+	22.11Sec. 12. Minnesota Statutes 2024, section 245A.07, subdivision 2, is amended to read:
	713	+	22.12 Subd. 2.Temporary immediate suspension.(a) The commissioner shall act immediately
	714	+	22.13to temporarily suspend a license issued under this chapter if:
	715	+	22.14 (1) the license holder's or controlling individual's actions or failure to comply with
	716	+	22.15applicable law or rule, or the actions of other individuals or conditions in the program, pose
	717	+	22.16an imminent risk of harm to the health, safety, or rights of persons served by the program;
	718	+	22.17 (2) while the program continues to operate pending an appeal of an order of revocation,
	719	+	22.18the commissioner identifies one or more subsequent violations of law or rule which may
	720	+	22.19adversely affect the health or safety of persons served by the program; or
	721	+	22.20 (3) the license holder or controlling individual is criminally charged in state or federal
	722	+	22.21court with an offense that involves fraud or theft against a program administered by the
	723	+	22.22commissioner a state or federal agency.
	724	+	22.23 (b) No state funds shall be made available or be expended by any agency or department
	725	+	22.24of state, county, or municipal government for use by a license holder regulated under this
	726	+	22.25chapter while a license issued under this chapter is under immediate suspension. A notice
	727	+	22.26stating the reasons for the immediate suspension and informing the license holder of the
	728	+	22.27right to an expedited hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to
	729	+	22.281400.8612, must be delivered by personal service to the address shown on the application
	730	+	22.29or the last known address of the license holder. The license holder may appeal an order
	731	+	22.30immediately suspending a license. The appeal of an order immediately suspending a license
	732	+	22.31must be made in writing by certified mail, personal service, or other means expressly set
	733	+	22.32forth in the commissioner's order. If mailed, the appeal must be postmarked and sent to the
	734	+	22.33commissioner within five calendar days after the license holder receives notice that the
	735	+	22.34license has been immediately suspended. If a request is made by personal service, it must
	736	+	22Sec. 12.
	737	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 23.1be received by the commissioner within five calendar days after the license holder received
	738	+	23.2the order. A license holder and any controlling individual shall discontinue operation of the
	739	+	23.3program upon receipt of the commissioner's order to immediately suspend the license.
	740	+	23.4 (c) The commissioner may act immediately to temporarily suspend a license issued
	741	+	23.5under this chapter if the license holder or controlling individual is the subject of a pending
	742	+	23.6administrative, civil, or criminal investigation or subject to an administrative or civil action
	743	+	23.7related to fraud against a program administered by a state or federal agency.
	744	+	23.8 Sec. 13. Minnesota Statutes 2024, section 245C.05, is amended by adding a subdivision
	745	+	23.9to read:
	746	+	23.10 Subd. 9.Electronic signature.For documentation requiring a signature under this
	747	+	23.11chapter, use of an electronic signature as defined under section 325L.02, paragraph (h), is
	748	+	23.12allowed.
	749	+	23.13Sec. 14. Minnesota Statutes 2024, section 245C.08, subdivision 3, is amended to read:
	750	+	23.14 Subd. 3.Arrest and investigative information.(a) For any background study completed
	751	+	23.15under this section, if the commissioner has reasonable cause to believe the information is
	752	+	23.16pertinent to the disqualification of an individual, the commissioner also may review arrest
	753	+	23.17and investigative information from:
	754	+	23.18 (1) the Bureau of Criminal Apprehension;
	755	+	23.19 (2) the commissioners of children, youth, and families; health; and human services;
	756	+	23.20 (3) a county attorney prosecutor;
	757	+	23.21 (4) a county sheriff;
	758	+	23.22 (5) (4) a county agency;
	759	+	23.23 (6) (5) a local chief of police law enforcement agency;
	760	+	23.24 (7) (6) other states;
	761	+	23.25 (8) (7) the courts;
	762	+	23.26 (9) (8) the Federal Bureau of Investigation;
	763	+	23.27 (10) (9) the National Criminal Records Repository; and
	764	+	23.28 (11) (10) criminal records from other states.
	765	+	23Sec. 14.
	766	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 24.1 (b) Except when specifically required by law, the commissioner is not required to conduct
	767	+	24.2more than one review of a subject's records from the Federal Bureau of Investigation if a
	768	+	24.3review of the subject's criminal history with the Federal Bureau of Investigation has already
	769	+	24.4been completed by the commissioner and there has been no break in the subject's affiliation
	770	+	24.5with the entity that initiated the background study.
	771	+	24.6 (c) If the commissioner conducts a national criminal history record check when required
	772	+	24.7by law and uses the information from the national criminal history record check to make a
	773	+	24.8disqualification determination, the data obtained is private data and cannot be shared with
	774	+	24.9private agencies or prospective employers of the background study subject.
	775	+	24.10 (d) If the commissioner conducts a national criminal history record check when required
	776	+	24.11by law and uses the information from the national criminal history record check to make a
	777	+	24.12disqualification determination, the license holder or entity that submitted the study is not
	778	+	24.13required to obtain a copy of the background study subject's disqualification letter under
	779	+	24.14section 245C.17, subdivision 3.
	780	+	24.15Sec. 15. Minnesota Statutes 2024, section 245C.14, is amended by adding a subdivision
	781	+	24.16to read:
	782	+	24.17 Subd. 6.Disqualification from owning, operating, or billing.The commissioner shall
	783	+	24.18disqualify an individual who is the subject of a background study from any position involving
	784	+	24.19ownership, management, or control of a program or billing activities if a background study
	785	+	24.20completed under this chapter shows a violation of section 142A.12, 245.095, or 256B.064.
	786	+	24.21 EFFECTIVE DATE.This section is effective July 1, 2025.
	787	+	24.22Sec. 16. Minnesota Statutes 2024, section 245C.22, subdivision 5, is amended to read:
	788	+	24.23 Subd. 5.Scope of set-aside.(a) If the commissioner sets aside a disqualification under
	789	+	24.24this section, the disqualified individual remains disqualified, but may hold a license and
	790	+	24.25have direct contact with or access to persons receiving services. Except as provided in
	791	+	24.26paragraph (b), the commissioner's set-aside of a disqualification is limited solely to the
	792	+	24.27licensed program, applicant, or agency specified in the set aside notice under section 245C.23.
	793	+	24.28For personal care provider organizations, financial management services organizations,
	794	+	24.29community first services and supports organizations, unlicensed home and community-based
	795	+	24.30organizations, and consumer-directed community supports organizations, the commissioner's
	796	+	24.31set-aside may further be limited to a specific individual who is receiving services. For new
	797	+	24.32background studies required under section 245C.04, subdivision 1, paragraph (h), if an
	798	+	24.33individual's disqualification was previously set aside for the license holder's program and
	799	+	24Sec. 16.
	800	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 25.1the new background study results in no new information that indicates the individual may
	801	+	25.2pose a risk of harm to persons receiving services from the license holder, the previous
	802	+	25.3set-aside shall remain in effect.
	803	+	25.4 (b) If the commissioner has previously set aside an individual's disqualification for one
	804	+	25.5or more programs or agencies, and the individual is the subject of a subsequent background
	805	+	25.6study for a different program or agency, the commissioner shall determine whether the
	806	+	25.7disqualification is set aside for the program or agency that initiated the subsequent
	807	+	25.8background study. A notice of a set-aside under paragraph (c) shall be issued within 15
	808	+	25.9working days if all of the following criteria are met:
	809	+	25.10 (1) the subsequent background study was initiated in connection with a program licensed
	810	+	25.11or regulated under the same provisions of law and rule for at least one program for which
	811	+	25.12the individual's disqualification was previously set aside by the commissioner;
	812	+	25.13 (2) the individual is not disqualified for an offense specified in section 245C.15,
	813	+	25.14subdivision 1 or 2;
	814	+	25.15 (3) the commissioner has received no new information to indicate that the individual
	815	+	25.16may pose a risk of harm to any person served by the program; and
	816	+	25.17 (4) the previous set-aside was not limited to a specific person receiving services.
	817	+	25.18 (c) Notwithstanding paragraph (b), clause (2), for an individual who is employed in the
	818	+	25.19substance use disorder field, if the commissioner has previously set aside an individual's
	819	+	25.20disqualification for one or more programs or agencies in the substance use disorder treatment
	820	+	25.21field, and the individual is the subject of a subsequent background study for a different
	821	+	25.22program or agency in the substance use disorder treatment field, the commissioner shall set
	822	+	25.23aside the disqualification for the program or agency in the substance use disorder treatment
	823	+	25.24field that initiated the subsequent background study when the criteria under paragraph (b),
	824	+	25.25clauses (1), (3), and (4), are met and the individual is not disqualified for an offense specified
	825	+	25.26in section 245C.15, subdivision 1. A notice of a set-aside under paragraph (d) shall be issued
	826	+	25.27within 15 working days.
	827	+	25.28 (d) When a disqualification is set aside under paragraph (b), the notice of background
	828	+	25.29study results issued under section 245C.17, in addition to the requirements under section
	829	+	25.30245C.17, shall state that the disqualification is set aside for the program or agency that
	830	+	25.31initiated the subsequent background study. The notice must inform the individual that the
	831	+	25.32individual may request reconsideration of the disqualification under section 245C.21 on the
	832	+	25.33basis that the information used to disqualify the individual is incorrect.
	833	+	25Sec. 16.
	834	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 26.1 Sec. 17. Minnesota Statutes 2024, section 254A.19, subdivision 4, is amended to read:
	835	+	26.2 Subd. 4.Civil commitments.For the purposes of determining level of care, a
	836	+	26.3comprehensive assessment does not need to be completed for an individual being committed
	837	+	26.4as a chemically dependent person, as defined in section 253B.02, and for the duration of a
	838	+	26.5civil commitment under section 253B.09 or 253B.095 in order for a county the individual
	839	+	26.6to access be eligible for the behavioral health fund under section 254B.04. The county
	840	+	26.7commissioner must determine if the individual meets the financial eligibility requirements
	841	+	26.8for the behavioral health fund under section 254B.04.
	842	+	26.9 EFFECTIVE DATE.This section is effective July 1, 2025.
	843	+	26.10Sec. 18. Minnesota Statutes 2024, section 256.98, subdivision 1, is amended to read:
	844	+	26.11 Subdivision 1.Wrongfully obtaining assistance.(a) A person who commits any of the
	845	+	26.12following acts or omissions with intent to defeat the purposes of sections 145.891 to 145.897,
	846	+	26.13the MFIP program formerly codified in sections 256.031 to 256.0361, the AFDC program
	847	+	26.14formerly codified in sections 256.72 to 256.871, chapter 142G, 256B, 256D, 256I, 256K,
	848	+	26.15or 256L, child care assistance programs, and emergency assistance programs under section
	849	+	26.16256D.06, is guilty of theft and shall be sentenced under section 609.52, subdivision 3, clauses
	850	+	26.17(1) to (5):
	851	+	26.18 (1) obtains or attempts to obtain, or aids or abets any person to obtain by means of a
	852	+	26.19willfully false statement or representation, by intentional concealment of any material fact,
	853	+	26.20or by impersonation or other fraudulent device, assistance or the continued receipt of
	854	+	26.21assistance, to include child care assistance or food benefits produced according to sections
	855	+	26.22145.891 to 145.897 and MinnesotaCare services according to sections 256.9365, 256.94,
	856	+	26.23and 256L.01 to 256L.15, to which the person is not entitled or assistance greater than that
	857	+	26.24to which the person is entitled;
	858	+	26.25 (2) knowingly aids or abets in buying or in any way disposing of the property of a
	859	+	26.26recipient or applicant of assistance without the consent of the county agency; or
	860	+	26.27 (3) obtains or attempts to obtain, alone or in collusion with others, the receipt of payments
	861	+	26.28to which the individual is not entitled as a provider of subsidized child care, or by furnishing
	862	+	26.29or concurring in receiving or providing any prohibited payment, as defined in section
	863	+	26.30609.542, subdivision 2, including a kickback, or by submitting or aiding or abetting the
	864	+	26.31submission of a willfully false claim for child care assistance.
	865	+	26.32 (b) The continued receipt of assistance to which the person is not entitled or greater than
	866	+	26.33that to which the person is entitled as a result of any of the acts, failure to act, or concealment
	867	+	26Sec. 18.
	868	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 27.1described in this subdivision shall be deemed to be continuing offenses from the date that
	869	+	27.2the first act or failure to act occurred.
	870	+	27.3 Sec. 19. Minnesota Statutes 2024, section 256B.064, subdivision 1a, is amended to read:
	871	+	27.4 Subd. 1a.Grounds for sanctions.(a) The commissioner may impose sanctions against
	872	+	27.5any individual or entity that receives payments from medical assistance or provides goods
	873	+	27.6or services for which payment is made from medical assistance for any of the following:
	874	+	27.7(1) fraud, theft, or abuse in connection with the provision of goods and services to recipients
	875	+	27.8of public assistance for which payment is made from medical assistance; (2) a pattern of
	876	+	27.9presentment of false or duplicate claims or claims for services not medically necessary; (3)
	877	+	27.10a pattern of making false statements of material facts for the purpose of obtaining greater
	878	+	27.11compensation than that to which the individual or entity is legally entitled; (4) suspension
	879	+	27.12or termination as a Medicare vendor; (5) refusal to grant the state agency access during
	880	+	27.13regular business hours to examine all records necessary to disclose the extent of services
	881	+	27.14provided to program recipients and appropriateness of claims for payment; (6) failure to
	882	+	27.15repay an overpayment or a fine finally established under this section; (7) failure to correct
	883	+	27.16errors in the maintenance of health service or financial records for which a fine was imposed
	884	+	27.17or after issuance of a warning by the commissioner; (8) soliciting or receiving any
	885	+	27.18remuneration as defined in section 609.542, subdivision 3, or United States Code, title 42,
	886	+	27.19section 1320a-7b(b)(1), and a criminal conviction is not required; (9) paying or offering to
	887	+	27.20pay any remuneration as defined in section 609.542, subdivision 2, or United States Code,
	888	+	27.21title 42, section 1320a-7b(b)(2), and a criminal conviction is not required; and (8) (10) any
	889	+	27.22reason for which an individual or entity could be excluded from participation in the Medicare
	890	+	27.23program under section 1128, 1128A, or 1866(b)(2) of the Social Security Act. For the
	891	+	27.24purposes of this section, goods or services for which payment is made from medical
	892	+	27.25assistance includes but is not limited to care and services identified in section 256B.0625
	893	+	27.26or provided pursuant to any federally approved waiver.
	894	+	27.27 (b) The commissioner may impose sanctions against a pharmacy provider for failure to
	895	+	27.28respond to a cost of dispensing survey under section 256B.0625, subdivision 13e, paragraph
	896	+	27.29(h).
	897	+	27.30Sec. 20. Minnesota Statutes 2024, section 256B.12, is amended to read:
	898	+	27.31 256B.12 LEGAL REPRESENTATION.
	899	+	27.32 The attorney general or the appropriate county attorney appearing at the direction of the
	900	+	27.33attorney general shall be the attorney for the state agency, and the county attorney of the
896	901		27Sec. 20.
897		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 28.1 (4) suspension or termination as a Medicare vendor;
898		-	28.2 (5) refusal to grant the state agency access during regular business hours to examine all
899		-	28.3records necessary to disclose the extent of services provided to program recipients and
900		-	28.4appropriateness of claims for payment;
901		-	28.5 (6) failure to repay an overpayment or a fine finally established under this section;
902		-	28.6 (7) failure to correct errors in the maintenance of health service or financial records for
903		-	28.7which a fine was imposed or after issuance of a warning by the commissioner; and
904		-	28.8 (8) any reason for which an individual or entity could be excluded from participation in
905		-	28.9the Medicare program under section 1128, 1128A, or 1866(b)(2) of the Social Security Act.
906		-	28.10 (b) For the purposes of this section, goods or services for which payment is made from
907		-	28.11medical assistance includes but is not limited to care and services identified in section
908		-	28.12256B.0625 or provided pursuant to any federally approved waiver.
909		-	28.13 (c) Regardless of the source of payment or other thing of value, the commissioner may
910		-	28.14impose sanctions against any individual or entity that solicits, receives, pays, or offers to
911		-	28.15pay any illegal remuneration as described in section 142E.51, subdivision 6a, in violation
912		-	28.16of section 609.542, subdivision 2, or in violation of United States Code, title 42, section
913		-	28.171320a-7b(b)(1) or (2). No conviction is required before the commissioner can impose
914		-	28.18sanctions under this paragraph.
915		-	28.19 (b) (d) The commissioner may impose sanctions against a pharmacy provider for failure
916		-	28.20to respond to a cost of dispensing survey under section 256B.0625, subdivision 13e,
917		-	28.21paragraph (h).
918		-	28.22Sec. 21. Minnesota Statutes 2024, section 256B.12, is amended to read:
919		-	28.23 256B.12 LEGAL REPRESENTATION.
920		-	28.24 The attorney general or the appropriate county attorney appearing at the direction of the
921		-	28.25attorney general shall be the attorney for the state agency, and the county attorney of the
922		-	28.26appropriate county shall be the attorney for the local agency in all matters pertaining hereto.
923		-	28.27To prosecute under this chapter or sections 609.466 and, 609.52, subdivision 2, and 609.542
924		-	28.28or to recover payments wrongfully made under this chapter, the attorney general or the
925		-	28.29appropriate county attorney, acting independently or at the direction of the attorney general
926		-	28.30may institute a criminal or civil action.
927		-	28Sec. 21.
928		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 29.1 Sec. 22. Minnesota Statutes 2024, section 256G.01, subdivision 3, is amended to read:
929		-	29.2 Subd. 3.Program coverage.This chapter applies to all social service programs
930		-	29.3administered by the commissioner of human services or the Direct Care and Treatment
931		-	29.4executive board in which residence is the determining factor in establishing financial
932		-	29.5responsibility. These include, but are not limited to: commitment proceedings, including
933		-	29.6voluntary admissions; emergency holds; competency proceedings under chapter 611; poor
934		-	29.7relief funded wholly through local agencies; social services, including title XX, IV-E and
935		-	29.8section 256K.10; social services programs funded wholly through the resources of county
936		-	29.9agencies; social services provided under the Minnesota Indian Family Preservation Act,
937		-	29.10sections 260.751 to 260.781; costs for delinquency confinement under section 393.07,
938		-	29.11subdivision 2; service responsibility for these programs; and housing support under chapter
939		-	29.12256I.
940		-	29.13Sec. 23. Minnesota Statutes 2024, section 256G.08, subdivision 1, is amended to read:
941		-	29.14 Subdivision 1.Commitment and competency proceedings.In cases of voluntary
942		-	29.15admission or, commitment to state or other institutions, or criminal orders for inpatient
943		-	29.16examination or participation in a competency attainment program under chapter 611, the
944		-	29.17committing county or the county from which the first criminal order for inpatient examination
945		-	29.18or order for participation in a competency attainment program under chapter 611 is issued
946		-	29.19shall initially pay for all costs. This includes the expenses of the taking into custody,
947		-	29.20confinement, emergency holds under sections 253B.051, subdivisions 1 and 2, and 253B.07,
948		-	29.21examination, commitment, conveyance to the place of detention, rehearing, and hearings
949		-	29.22under section sections 253B.092 and 611.47, including hearings held under that section
950		-	29.23which those sections that are venued outside the county of commitment or the county of
951		-	29.24the chapter 611 competency proceedings order.
952		-	29.25Sec. 24. Minnesota Statutes 2024, section 256G.08, subdivision 2, is amended to read:
953		-	29.26 Subd. 2.Responsibility for nonresidents.If a person committed or, voluntarily admitted
954		-	29.27to a state institution, or ordered for inpatient examination or participation in a competency
955		-	29.28attainment program under chapter 611 has no residence in this state, financial responsibility
956		-	29.29belongs to the county of commitment or the county from which the first criminal order for
957		-	29.30inpatient examination or order for participation in a competency attainment program under
958		-	29.31chapter 611 was issued.
959		-	29Sec. 24.
960		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 30.1 Sec. 25. Minnesota Statutes 2024, section 256G.09, subdivision 1, is amended to read:
961		-	30.2 Subdivision 1.General procedures.If upon investigation the local agency decides that
962		-	30.3the application or, commitment, or first criminal order under chapter 611 was not filed in
963		-	30.4the county of financial responsibility as defined by this chapter, but that the applicant is
964		-	30.5otherwise eligible for assistance, it shall send a copy of the application or, commitment
965		-	30.6claim, or chapter 611 claim together with the record of any investigation it has made, to the
966		-	30.7county it believes is financially responsible. The copy and record must be sent within 60
967		-	30.8days of the date the application was approved or the claim was paid. The first local agency
968		-	30.9shall provide assistance to the applicant until financial responsibility is transferred under
969		-	30.10this section.
970		-	30.11 The county receiving the transmittal has 30 days to accept or reject financial
971		-	30.12responsibility. A failure to respond within 30 days establishes financial responsibility by
972		-	30.13the receiving county.
973		-	30.14Sec. 26. Minnesota Statutes 2024, section 256G.09, subdivision 2, is amended to read:
974		-	30.15 Subd. 2.Financial disputes.(a) If the county receiving the transmittal does not believe
975		-	30.16it is financially responsible, it should provide to the commissioner of human services and
976		-	30.17the initially responsible county a statement of all facts and documents necessary for the
977		-	30.18commissioner to make the requested determination of financial responsibility. The submission
978		-	30.19must clearly state the program area in dispute and must state the specific basis upon which
979		-	30.20the submitting county is denying financial responsibility.
980		-	30.21 (b) The initially responsible county then has 15 calendar days to submit its position and
981		-	30.22any supporting evidence to the commissioner. The absence of a submission by the initially
982		-	30.23responsible county does not limit the right of the commissioner of human services or Direct
983		-	30.24Care and Treatment executive board to issue a binding opinion based on the evidence actually
984		-	30.25submitted.
985		-	30.26 (c) A case must not be submitted until the local agency taking the application or, making
986		-	30.27the commitment, or residing in the county from which the first criminal order under chapter
987		-	30.28611 was issued has made an initial determination about eligibility and financial responsibility,
988		-	30.29and services have been initiated. This paragraph does not prohibit the submission of closed
989		-	30.30cases that otherwise meet the applicable statute of limitations.
	902	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 28.1appropriate county shall be the attorney for the local agency in all matters pertaining hereto.
	903	+	28.2To prosecute under this chapter or sections 609.466 and, 609.52, subdivision 2, and 609.542
	904	+	28.3or to recover payments wrongfully made under this chapter, the attorney general or the
	905	+	28.4appropriate county attorney, acting independently or at the direction of the attorney general
	906	+	28.5may institute a criminal or civil action.
	907	+	28.6 Sec. 21. Minnesota Statutes 2024, section 256G.01, subdivision 3, is amended to read:
	908	+	28.7 Subd. 3.Program coverage.This chapter applies to all social service programs
	909	+	28.8administered by the commissioner of human services or the Direct Care and Treatment
	910	+	28.9executive board in which residence is the determining factor in establishing financial
	911	+	28.10responsibility. These include, but are not limited to: commitment proceedings, including
	912	+	28.11voluntary admissions; emergency holds; competency proceedings under chapter 611; poor
	913	+	28.12relief funded wholly through local agencies; social services, including title XX, IV-E and
	914	+	28.13section 256K.10; social services programs funded wholly through the resources of county
	915	+	28.14agencies; social services provided under the Minnesota Indian Family Preservation Act,
	916	+	28.15sections 260.751 to 260.781; costs for delinquency confinement under section 393.07,
	917	+	28.16subdivision 2; service responsibility for these programs; and housing support under chapter
	918	+	28.17256I.
	919	+	28.18Sec. 22. Minnesota Statutes 2024, section 256G.08, subdivision 1, is amended to read:
	920	+	28.19 Subdivision 1.Commitment and competency proceedings.In cases of voluntary
	921	+	28.20admission or, commitment to state or other institutions, or criminal orders for inpatient
	922	+	28.21examination or participation in a competency attainment program under chapter 611, the
	923	+	28.22committing county or the county from which the first criminal order for inpatient examination
	924	+	28.23or order for participation in a competency attainment program under chapter 611 is issued
	925	+	28.24shall initially pay for all costs. This includes the expenses of the taking into custody,
	926	+	28.25confinement, emergency holds under sections 253B.051, subdivisions 1 and 2, and 253B.07,
	927	+	28.26examination, commitment, conveyance to the place of detention, rehearing, and hearings
	928	+	28.27under section sections 253B.092 and 611.47, including hearings held under that section
	929	+	28.28which those sections that are venued outside the county of commitment or the county of
	930	+	28.29the chapter 611 competency proceedings order.
	931	+	28.30Sec. 23. Minnesota Statutes 2024, section 256G.08, subdivision 2, is amended to read:
	932	+	28.31 Subd. 2.Responsibility for nonresidents.If a person committed or, voluntarily admitted
	933	+	28.32to a state institution, or ordered for inpatient examination or participation in a competency
	934	+	28.33attainment program under chapter 611 has no residence in this state, financial responsibility
	935	+	28Sec. 23.
	936	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 29.1belongs to the county of commitment or the county from which the first criminal order for
	937	+	29.2inpatient examination or order for participation in a competency attainment program under
	938	+	29.3chapter 611 was issued.
	939	+	29.4 Sec. 24. Minnesota Statutes 2024, section 256G.09, subdivision 1, is amended to read:
	940	+	29.5 Subdivision 1.General procedures.If upon investigation the local agency decides that
	941	+	29.6the application or, commitment, or first criminal order under chapter 611 was not filed in
	942	+	29.7the county of financial responsibility as defined by this chapter, but that the applicant is
	943	+	29.8otherwise eligible for assistance, it shall send a copy of the application or, commitment
	944	+	29.9claim, or chapter 611 claim together with the record of any investigation it has made, to the
	945	+	29.10county it believes is financially responsible. The copy and record must be sent within 60
	946	+	29.11days of the date the application was approved or the claim was paid. The first local agency
	947	+	29.12shall provide assistance to the applicant until financial responsibility is transferred under
	948	+	29.13this section.
	949	+	29.14 The county receiving the transmittal has 30 days to accept or reject financial
	950	+	29.15responsibility. A failure to respond within 30 days establishes financial responsibility by
	951	+	29.16the receiving county.
	952	+	29.17Sec. 25. Minnesota Statutes 2024, section 256G.09, subdivision 2, is amended to read:
	953	+	29.18 Subd. 2.Financial disputes.(a) If the county receiving the transmittal does not believe
	954	+	29.19it is financially responsible, it should provide to the commissioner of human services and
	955	+	29.20the initially responsible county a statement of all facts and documents necessary for the
	956	+	29.21commissioner to make the requested determination of financial responsibility. The submission
	957	+	29.22must clearly state the program area in dispute and must state the specific basis upon which
	958	+	29.23the submitting county is denying financial responsibility.
	959	+	29.24 (b) The initially responsible county then has 15 calendar days to submit its position and
	960	+	29.25any supporting evidence to the commissioner. The absence of a submission by the initially
	961	+	29.26responsible county does not limit the right of the commissioner of human services or Direct
	962	+	29.27Care and Treatment executive board to issue a binding opinion based on the evidence actually
	963	+	29.28submitted.
	964	+	29.29 (c) A case must not be submitted until the local agency taking the application or, making
	965	+	29.30the commitment, or residing in the county from which the first criminal order under chapter
	966	+	29.31611 was issued has made an initial determination about eligibility and financial responsibility,
	967	+	29.32and services have been initiated. This paragraph does not prohibit the submission of closed
	968	+	29.33cases that otherwise meet the applicable statute of limitations.
	969	+	29Sec. 25.
	970	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 30.1 Sec. 26. Minnesota Statutes 2024, section 480.40, subdivision 1, is amended to read:
	971	+	30.2 Subdivision 1.Definitions.(a) For purposes of this section and section 480.45, the
	972	+	30.3following terms have the meanings given.
	973	+	30.4 (b) "Judicial official" means:
	974	+	30.5 (1) every Minnesota district court judge, senior judge, retired judge, and every judge of
	975	+	30.6the Minnesota Court of Appeals and every active, senior, recalled, or retired federal judge
	976	+	30.7who resides in Minnesota;
	977	+	30.8 (2) a justice of the Minnesota Supreme Court;
	978	+	30.9 (3) employees of the Minnesota judicial branch;
	979	+	30.10 (4) judicial referees and magistrate judges; and
	980	+	30.11 (5) current and retired judges and current employees of the Office of Administrative
	981	+	30.12Hearings, Department of Human Services Appeals Division, Workers' Compensation Court
	982	+	30.13of Appeals, and Tax Court.
	983	+	30.14 (c) "Personal information" does not include publicly available information. Personal
	984	+	30.15information means:
	985	+	30.16 (1) a residential address of a judicial official;
	986	+	30.17 (2) a residential address of the spouse, domestic partner, or children of a judicial official;
	987	+	30.18 (3) a nonjudicial branch issued telephone number or email address of a judicial official;
	988	+	30.19 (4) the name of any child of a judicial official; and
	989	+	30.20 (5) the name of any child care facility or school that is attended by a child of a judicial
	990	+	30.21official if combined with an assertion that the named facility or school is attended by the
	991	+	30.22child of a judicial official.
	992	+	30.23 (d) "Publicly available information" means information that is lawfully made available
	993	+	30.24through federal, state, or local government records or information that a business has a
	994	+	30.25reasonable basis to believe is lawfully made available to the general public through widely
	995	+	30.26distributed media, by a judicial official, or by a person to whom the judicial official has
	996	+	30.27disclosed the information, unless the judicial official has restricted the information to a
	997	+	30.28specific audience.
	998	+	30.29 (e) "Law enforcement support organizations" do not include charitable organizations.
	999	+	30.30 EFFECTIVE DATE.This section is effective the day following final enactment.
990	1000		30Sec. 26.
991		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 31.1 Sec. 27. Minnesota Statutes 2024, section 480.40, subdivision 1, is amended to read:
992		-	31.2 Subdivision 1.Definitions.(a) For purposes of this section and section 480.45, the
993		-	31.3following terms have the meanings given.
994		-	31.4 (b) "Judicial official" means:
995		-	31.5 (1) every Minnesota district court judge, senior judge, retired judge, and every judge of
996		-	31.6the Minnesota Court of Appeals and every active, senior, recalled, or retired federal judge
997		-	31.7who resides in Minnesota;
998		-	31.8 (2) a justice of the Minnesota Supreme Court;
999		-	31.9 (3) employees of the Minnesota judicial branch;
1000		-	31.10 (4) judicial referees and magistrate judges; and
1001		-	31.11 (5) current and retired judges and current employees of the Office of Administrative
1002		-	31.12Hearings, Department of Human Services Appeals Division, Workers' Compensation Court
1003		-	31.13of Appeals, and Tax Court.
1004		-	31.14 (c) "Personal information" does not include publicly available information. Personal
1005		-	31.15information means:
1006		-	31.16 (1) a residential address of a judicial official;
1007		-	31.17 (2) a residential address of the spouse, domestic partner, or children of a judicial official;
1008		-	31.18 (3) a nonjudicial branch issued telephone number or email address of a judicial official;
1009		-	31.19 (4) the name of any child of a judicial official; and
1010		-	31.20 (5) the name of any child care facility or school that is attended by a child of a judicial
1011		-	31.21official if combined with an assertion that the named facility or school is attended by the
1012		-	31.22child of a judicial official.
1013		-	31.23 (d) "Publicly available information" means information that is lawfully made available
1014		-	31.24through federal, state, or local government records or information that a business has a
1015		-	31.25reasonable basis to believe is lawfully made available to the general public through widely
1016		-	31.26distributed media, by a judicial official, or by a person to whom the judicial official has
1017		-	31.27disclosed the information, unless the judicial official has restricted the information to a
1018		-	31.28specific audience.
1019		-	31.29 (e) "Law enforcement support organizations" do not include charitable organizations.
1020		-	31.30 EFFECTIVE DATE.This section is effective the day following final enactment.
	1001	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 31.1 Sec. 27. [609.542] HUMAN SERVICES PROGRAMS CRIMES.
	1002	+	31.2 Subdivision 1.Definition.For purposes of this section, "federal health care program"
	1003	+	31.3has the meaning given in United States Code, title 42, section 1320a-7b(f).
	1004	+	31.4 Subd. 2.Prohibited payments made relating to human services programs.A person
	1005	+	31.5is guilty of a crime and may be sentenced as provided in subdivision 5 if the person
	1006	+	31.6intentionally offers or pays any remuneration, including any kickback, bribe, or rebate,
	1007	+	31.7directly or indirectly, overtly or covertly, in cash or in kind, to another person:
	1008	+	31.8 (1) to induce that person to apply for, receive, or induce another person to apply for or
	1009	+	31.9receive an item or service for which payment may be made in whole or in part under a
	1010	+	31.10federal health care program, state behavioral health program under section 254B.04, or
	1011	+	31.11family program under chapter 142E; or
	1012	+	31.12 (2) in return for purchasing, leasing, ordering, or arranging for or inducing the purchasing,
	1013	+	31.13leasing, or ordering of any good, facility, service, or item for which payment may be made
	1014	+	31.14in whole or in part, or which is administered in whole or in part under a federal health care
	1015	+	31.15program, state behavioral health program under section 254B.04, or family program under
	1016	+	31.16chapter 142E.
	1017	+	31.17 Subd. 3.Receipt of prohibited payments relating to human services programs.A
	1018	+	31.18person is guilty of a crime and may be sentenced as provided in subdivision 5 if the person
	1019	+	31.19intentionally solicits or receives any remuneration, including any kickback, bribe, or rebate,
	1020	+	31.20directly or indirectly, overtly or covertly, in cash or in kind:
	1021	+	31.21 (1) in return for applying for or receiving a human services benefit, service, or grant for
	1022	+	31.22which payment may be made in whole or in part under a federal health care program, state
	1023	+	31.23behavioral health program under section 254B.04, or family program under chapter 142E;
	1024	+	31.24or
	1025	+	31.25 (2) in return for purchasing, leasing, ordering, or arranging for or inducing the purchasing,
	1026	+	31.26leasing, or ordering of any good, facility, service, or item for which payment may be made
	1027	+	31.27in whole or in part under a federal health care program, state behavioral health program
	1028	+	31.28under section 254B.04, or family program under chapter 142E.
	1029	+	31.29 Subd. 4.Exemptions.(a) This section does not apply to remuneration exempted under
	1030	+	31.30the Anti-Kickback Statute, United States Code, title 42, section 1320a-7b(b)(3), or payment
	1031	+	31.31made under a federal health care program which is exempt from liability by United States
	1032	+	31.32Code, title 42, section 1001.952.
	1033	+	31.33 (b) This section does not apply to:
1021	1034		31Sec. 27.
1022		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 32.1 Sec. 28. [609.542] ILLEGAL REMUNERATIONS.
1023		-	32.2 Subdivision 1.Definition.As used in this section, "federal health care program" has the
1024		-	32.3meaning given in United States Code, title 42, section 1320a-7b(f).
1025		-	32.4 Subd. 2.Human services program; unauthorized remuneration.(a) A person who
1026		-	32.5intentionally solicits or receives money, a discount, a credit, a waiver, a rebate, a good, a
1027		-	32.6service, employment, or anything else of value in return for doing any of the following is
1028		-	32.7guilty of a crime and may be sentenced as provided in subdivision 4:
1029		-	32.8 (1) referring an individual to a person for the furnishing or arranging for the furnishing
1030		-	32.9of any item or service for which payment may be made in whole or in part under a federal
1031		-	32.10health care program, behavioral health program under chapter 254B, or program under
1032		-	32.11chapter 142E;
1033		-	32.12 (2) purchasing, leasing, ordering, or arranging for or recommending purchasing, leasing,
1034		-	32.13or ordering any good, facility, service, or item for which payment may be made in whole
1035		-	32.14or in part under a federal health care program, behavioral health program under chapter
1036		-	32.15254B, or program under chapter 142E; or
1037		-	32.16 (3) applying for or receiving any item or service for which payment may be made in
1038		-	32.17whole or in part under a federal health care program, behavioral health program under
1039		-	32.18chapter 254B, or program under chapter 142E.
1040		-	32.19 (b) A person who intentionally offers or provides money, a discount, a credit, a waiver,
1041		-	32.20a rebate, a good, a service, employment, or anything else of value to induce a person to do
1042		-	32.21any of the following is guilty of a crime and may be sentenced as provided in subdivision
1043		-	32.224:
1044		-	32.23 (1) refer an individual to a person for the furnishing or arranging for the furnishing of
1045		-	32.24any item or service for which payment may be made in whole or in part under a federal
1046		-	32.25health care program, behavioral health program under chapter 254B, or program under
1047		-	32.26chapter 142E;
1048		-	32.27 (2) purchase, lease, order, or arrange for or recommend purchasing, leasing, or ordering
1049		-	32.28any good, facility, service, or item for which payment may be made in whole or in part
1050		-	32.29under a federal health care program, behavioral health program under chapter 254B, or
1051		-	32.30program under chapter 142E; or
1052		-	32.31 (3) apply for or receive any item or service for which payment may be made in whole
1053		-	32.32or in part under a federal health care program, behavioral health program under chapter
1054		-	32.33254B, or program under chapter 142E.
	1035	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 32.1 (1) any amount paid by an employer to a bona fide employee for providing covered
	1036	+	32.2items or services under chapter 142E while acting in the course and scope of employment;
	1037	+	32.3or
	1038	+	32.4 (2) child care provider discounts, scholarships, or other financial assistance to families
	1039	+	32.5allowed under section 142E.17, subdivision 7.
	1040	+	32.6 Subd. 5.Sentence.(a) A person convicted under subdivision 2 or 3 may be sentenced
	1041	+	32.7pursuant to section 609.52, subdivision 3.
	1042	+	32.8 (b) For purposes of sentencing a violation of subdivision 2, "value" means the fair market
	1043	+	32.9value of the good, facility, service, or item that was obtained as a direct or indirect result
	1044	+	32.10of the prohibited payment.
	1045	+	32.11 (c) For purposes of sentencing a violation of subdivision 3, "value" means the amount
	1046	+	32.12of the prohibited payment solicited or received.
	1047	+	32.13 (d) As a matter of law, a claim for any good, facility, service, or item rendered or claimed
	1048	+	32.14to have been rendered in violation of this section is noncompensable and unenforceable at
	1049	+	32.15the time the claim is made.
	1050	+	32.16 Subd. 6.Aggregation.In a prosecution under this section, the value of the money,
	1051	+	32.17property, or benefit received or solicited by the defendant within a six-month period may
	1052	+	32.18be aggregated and the defendant charged accordingly in applying the provisions of
	1053	+	32.19subdivision 5.
	1054	+	32.20 Subd. 7.False claims.In addition to the penalties provided for in this section, a claim,
	1055	+	32.21as defined in section 15C.01, subdivision 2, that includes items or services resulting from
	1056	+	32.22a violation of this section constitutes a false or fraudulent claim for purposes of section
	1057	+	32.2315C.02.
	1058	+	32.24 EFFECTIVE DATE.This section is effective August 1, 2025, and applies to crimes
	1059	+	32.25committed on or after that date.
	1060	+	32.26Sec. 28. Minnesota Statutes 2024, section 611.43, is amended by adding a subdivision to
	1061	+	32.27read:
	1062	+	32.28 Subd. 5.Costs related to confined treatment.(a) When a defendant is ordered to
	1063	+	32.29participate in an examination in a treatment facility, a locked treatment facility, or a
	1064	+	32.30state-operated treatment facility under subdivision 1, paragraph (b), the facility shall bill
	1065	+	32.31the responsible health plan first. The county in which the criminal charges are filed is
	1066	+	32.32responsible to pay any charges not covered by the health plan, including co-pays and
1055	1067		32Sec. 28.
1056		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 33.1 Subd. 3.Exceptions.(a) Subdivision 2 does not apply to any payment, discount, waiver,
1057		-	33.2or other remuneration exempted under United States Code, title 42, section 1320a-7b(b)(3),
1058		-	33.3or payment made under a federal health care program that is exempt from liability by United
1059		-	33.4States Code, title 42, section 1001.952.
1060		-	33.5 (b) For actions involving a program under chapter 142E, subdivision 2, does not apply
1061		-	33.6to:
1062		-	33.7 (1) any amount paid by an employer to a bona fide employee for providing covered
1063		-	33.8items or services under chapter 142E while acting in the course and scope of employment;
1064		-	33.9or
1065		-	33.10 (2) child care provider discounts, scholarships, or other financial assistance to families
1066		-	33.11allowed under section 142E.17, subdivision 7.
1067		-	33.12 Subd. 4.Penalties.Whoever violates subdivision 2 may be sentenced as follows:
1068		-	33.13 (1) to imprisonment of not more than 20 years or to payment of a fine of not more than
1069		-	33.14$100,000, or both, if the value of any money, discount, credit, waiver, rebate, good, service,
1070		-	33.15employment, or other thing of value solicited, received, offered, or provided exceeds $35,000;
1071		-	33.16 (2) to imprisonment of not more than ten years or to payment of a fine of not more than
1072		-	33.17$20,000, or both, if the value of any money, discount, credit, waiver, rebate, good, service,
1073		-	33.18employment, or other thing of value solicited, received, offered, or provided is more than
1074		-	33.19$5,000 but not more than $35,000; or
1075		-	33.20 (3) imprisonment for not more than five years or to payment of a fine of not more than
1076		-	33.21$10,000, or both, if the value of any money, discount, credit, waiver, rebate, good, service,
1077		-	33.22employment, or other thing of value solicited, received, offered, or provided is not more
1078		-	33.23than $5,000.
1079		-	33.24 Subd. 5.Aggregation.In a prosecution under this section, the value of any money,
1080		-	33.25discount, credit, waiver, rebate, good, service, employment, or other thing of value solicited,
1081		-	33.26received, offered, or provided within a six-month period may be aggregated and the defendant
1082		-	33.27charged accordingly. When two or more offenses are committed by the same person in two
1083		-	33.28or more counties, the accused may be prosecuted in any county in which one of the offenses
1084		-	33.29was committed for all of the offenses aggregated under this subdivision.
1085		-	33.30 Subd. 6.False claims.In addition to the penalties provided for in this section, a claim,
1086		-	33.31as defined in section 15C.01, subdivision 2, that includes items or services resulting from
1087		-	33.32a violation of this section constitutes a false or fraudulent claim for purposes of section
1088		-	33.3315C.02.
1089		-	33Sec. 28.
1090		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 34.1 EFFECTIVE DATE.This section is effective August 1, 2025, and applies to crimes
1091		-	34.2committed on or after that date.
1092		-	34.3 Sec. 29. Minnesota Statutes 2024, section 611.43, is amended by adding a subdivision to
1093		-	34.4read:
1094		-	34.5 Subd. 5.Costs related to confined treatment.(a) When a defendant is ordered to
1095		-	34.6participate in an examination in a treatment facility, a locked treatment facility, or a
1096		-	34.7state-operated treatment facility under subdivision 1, paragraph (b), the facility shall bill
1097		-	34.8the responsible health plan first. The county in which the criminal charges are filed is
1098		-	34.9responsible to pay any charges not covered by the health plan, including co-pays and
1099		-	34.10deductibles. If the defendant has health plan coverage and is confined in a hospital, but the
1100		-	34.11hospitalization does not meet the criteria in section 62M.07, subdivision 2, clause (1);
1101		-	34.1262Q.53; 62Q.535, subdivision 1; or 253B.045, subdivision 6, the county in which criminal
1102		-	34.13charges are filed is responsible for payment.
1103		-	34.14 (b) The Direct Care and Treatment executive board shall determine the cost of
1104		-	34.15confinement in a state-operated treatment facility based on the executive board's
1105		-	34.16determination of cost of care pursuant to section 246.50, subdivision 5.
1106		-	34.17Sec. 30. Minnesota Statutes 2024, section 611.46, subdivision 1, is amended to read:
1107		-	34.18 Subdivision 1.Order to competency attainment program.(a) If the court finds the
1108		-	34.19defendant incompetent and the charges have not been dismissed, the court shall order the
1109		-	34.20defendant to participate in a program to assist the defendant in attaining competency. The
1110		-	34.21court may order participation in a competency attainment program provided outside of a
1111		-	34.22jail, a jail-based competency attainment program, or an alternative program. The court must
1112		-	34.23determine the least-restrictive program appropriate to meet the defendant's needs and public
1113		-	34.24safety. In making this determination, the court must consult with the forensic navigator and
1114		-	34.25consider any recommendations of the court examiner. The court shall not order a defendant
1115		-	34.26to participate in a jail-based program or a state-operated treatment program if the highest
1116		-	34.27criminal charge is a targeted misdemeanor.
1117		-	34.28 (b) If the court orders the defendant to a locked treatment facility or jail-based program,
1118		-	34.29the court must calculate the defendant's custody credit and cannot order the defendant to a
1119		-	34.30locked treatment facility or jail-based program for a period that would cause the defendant's
1120		-	34.31custody credit to exceed the maximum sentence for the underlying charge.
1121		-	34.32 (c) The court may only order the defendant to participate in competency attainment at
1122		-	34.33an inpatient or residential treatment program under this section if the head of the treatment
1123		-	34Sec. 30.
1124		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 35.1program determines that admission to the program is clinically appropriate and consents to
1125		-	35.2the defendant's admission. The court may only order the defendant to participate in
1126		-	35.3competency attainment at a state-operated treatment facility under this section if the Direct
1127		-	35.4Care and Treatment executive board or a designee determines that admission of the defendant
1128		-	35.5is clinically appropriate and consents to the defendant's admission. The court may require
1129		-	35.6a competency program that qualifies as a locked facility or a state-operated treatment program
1130		-	35.7to notify the court in writing of the basis for refusing consent for admission of the defendant
1131		-	35.8in order to ensure transparency and maintain an accurate record. The court may not require
1132		-	35.9personal appearance of any representative of a competency program. The court shall send
1133		-	35.10a written request for notification to the locked facility or state-operated treatment program
1134		-	35.11and the locked facility or state-operated treatment program shall provide a written response
1135		-	35.12to the court within ten days of receipt of the court's request.
1136		-	35.13 (d) If the defendant is confined in jail and has not received competency attainment
1137		-	35.14services within 30 days of the finding of incompetency, the court shall review the case with
1138		-	35.15input from the prosecutor and defense counsel and may:
1139		-	35.16 (1) order the defendant to participate in an appropriate competency attainment program
1140		-	35.17that takes place outside of a jail;
1141		-	35.18 (2) order a conditional release of the defendant with conditions that include but are not
1142		-	35.19limited to a requirement that the defendant participate in a competency attainment program
1143		-	35.20when one becomes available and accessible;
1144		-	35.21 (3) make a determination as to whether the defendant is likely to attain competency in
1145		-	35.22the reasonably foreseeable future and proceed under section 611.49; or
1146		-	35.23 (4) upon a motion, dismiss the charges in the interest of justice.
1147		-	35.24 (e) The court may order any hospital, treatment facility, or correctional facility that has
1148		-	35.25provided care or supervision to a defendant in the previous two years to provide copies of
1149		-	35.26the defendant's medical records to the competency attainment program or alternative program
1150		-	35.27in which the defendant was ordered to participate. This information shall be provided in a
1151		-	35.28consistent and timely manner and pursuant to all applicable laws.
1152		-	35.29 (f) If at any time the defendant refuses to participate in a competency attainment program
1153		-	35.30or an alternative program, the head of the program shall notify the court and any entity
1154		-	35.31responsible for supervision of the defendant.
1155		-	35.32 (g) At any time, the head of the program may discharge the defendant from the program
1156		-	35.33or facility. The head of the program must notify the court, prosecutor, defense counsel, and
1157		-	35Sec. 30.
1158		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 36.1any entity responsible for the supervision of the defendant prior to any planned discharge.
1159		-	36.2Absent emergency circumstances, this notification shall be made five days prior to the
1160		-	36.3discharge if the defendant is not being discharged to jail or a correctional facility. Upon the
1161		-	36.4receipt of notification of discharge or upon the request of either party in response to
1162		-	36.5notification of discharge, the court may order that a defendant who is subject to bail or
1163		-	36.6unmet conditions of release be returned to jail upon being discharged from the program or
1164		-	36.7facility. If the court orders a defendant returned to jail, the court shall notify the parties and
1165		-	36.8head of the program at least one day before the defendant's planned discharge, except in
1166		-	36.9the event of an emergency discharge where one day notice is not possible. The court must
1167		-	36.10hold a review hearing within seven days of the defendant's return to jail. The forensic
1168		-	36.11navigator must be given notice of the hearing and be allowed to participate.
1169		-	36.12 (h) If the defendant is discharged from the program or facility under emergency
1170		-	36.13circumstances, notification of emergency discharge shall include a description of the
1171		-	36.14emergency circumstances and may include a request for emergency transportation. The
1172		-	36.15court shall make a determination on a request for emergency transportation within 24 hours.
1173		-	36.16Nothing in this section prohibits a law enforcement agency from transporting a defendant
1174		-	36.17pursuant to any other authority.
1175		-	36.18 (i) If the defendant is ordered to participate in an inpatient or residential competency
1176		-	36.19attainment or alternative program, the program or facility must notify the court, prosecutor,
1177		-	36.20defense counsel, and any entity responsible for the supervision of the defendant if the
1178		-	36.21defendant is placed on a leave or elopement status from the program and if the defendant
1179		-	36.22returns to the program from a leave or elopement status.
1180		-	36.23 (j) Defense counsel and prosecutors must have access to information relevant to a
1181		-	36.24defendant's participation and treatment in a competency attainment program or alternative
1182		-	36.25program, including but not limited to discharge planning.
1183		-	36.26Sec. 31. Minnesota Statutes 2024, section 611.55, is amended by adding a subdivision to
1184		-	36.27read:
1185		-	36.28 Subd. 5.Data access.Forensic navigators must have access to all data collected, created,
1186		-	36.29or maintained by a competency attainment program or an alternative program regarding a
1187		-	36.30defendant in order for navigators to carry out their duties under this section. A competency
1188		-	36.31attainment program or alternative program may request a copy of the court order appointing
1189		-	36.32the forensic navigator before disclosing any private information about a defendant.
1190		-	36Sec. 31.
1191		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT 37.1 Sec. 32. Laws 2023, chapter 70, article 7, section 34, the effective date, is amended to
1192		-	37.2read:
1193		-	37.3 EFFECTIVE DATE.This section is effective for background studies requested on or
1194		-	37.4after August 1, 2024 the day following final enactment.
1195		-	37Sec. 32.
1196		-	REVISOR DTT H2260-2HF2260 SECOND ENGROSSMENT
	1068	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 33.1deductibles. If the defendant has health plan coverage and is confined in a hospital, but the
	1069	+	33.2hospitalization does not meet the criteria in section 62M.07, subdivision 2, clause (1);
	1070	+	33.362Q.53; 62Q.535, subdivision 1; or 253B.045, subdivision 6, the county in which criminal
	1071	+	33.4charges are filed is responsible for payment.
	1072	+	33.5 (b) The Direct Care and Treatment executive board shall determine the cost of
	1073	+	33.6confinement in a state-operated treatment facility based on the executive board's
	1074	+	33.7determination of cost of care pursuant to section 246.50, subdivision 5.
	1075	+	33.8 Sec. 29. Minnesota Statutes 2024, section 611.46, subdivision 1, is amended to read:
	1076	+	33.9 Subdivision 1.Order to competency attainment program.(a) If the court finds the
	1077	+	33.10defendant incompetent and the charges have not been dismissed, the court shall order the
	1078	+	33.11defendant to participate in a program to assist the defendant in attaining competency. The
	1079	+	33.12court may order participation in a competency attainment program provided outside of a
	1080	+	33.13jail, a jail-based competency attainment program, or an alternative program. The court must
	1081	+	33.14determine the least-restrictive program appropriate to meet the defendant's needs and public
	1082	+	33.15safety. In making this determination, the court must consult with the forensic navigator and
	1083	+	33.16consider any recommendations of the court examiner. The court shall not order a defendant
	1084	+	33.17to participate in a jail-based program or a state-operated treatment program if the highest
	1085	+	33.18criminal charge is a targeted misdemeanor.
	1086	+	33.19 (b) If the court orders the defendant to a locked treatment facility or jail-based program,
	1087	+	33.20the court must calculate the defendant's custody credit and cannot order the defendant to a
	1088	+	33.21locked treatment facility or jail-based program for a period that would cause the defendant's
	1089	+	33.22custody credit to exceed the maximum sentence for the underlying charge.
	1090	+	33.23 (c) The court may only order the defendant to participate in competency attainment at
	1091	+	33.24an inpatient or residential treatment program under this section if the head of the treatment
	1092	+	33.25program determines that admission to the program is clinically appropriate and consents to
	1093	+	33.26the defendant's admission. The court may only order the defendant to participate in
	1094	+	33.27competency attainment at a state-operated treatment facility under this section if the Direct
	1095	+	33.28Care and Treatment executive board or a designee determines that admission of the defendant
	1096	+	33.29is clinically appropriate and consents to the defendant's admission. The court may require
	1097	+	33.30a competency program that qualifies as a locked facility or a state-operated treatment program
	1098	+	33.31to notify the court in writing of the basis for refusing consent for admission of the defendant
	1099	+	33.32in order to ensure transparency and maintain an accurate record. The court may not require
	1100	+	33.33personal appearance of any representative of a competency program. The court shall send
	1101	+	33.34a written request for notification to the locked facility or state-operated treatment program
	1102	+	33Sec. 29.
	1103	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 34.1and the locked facility or state-operated treatment program shall provide a written response
	1104	+	34.2to the court within ten days of receipt of the court's request.
	1105	+	34.3 (d) If the defendant is confined in jail and has not received competency attainment
	1106	+	34.4services within 30 days of the finding of incompetency, the court shall review the case with
	1107	+	34.5input from the prosecutor and defense counsel and may:
	1108	+	34.6 (1) order the defendant to participate in an appropriate competency attainment program
	1109	+	34.7that takes place outside of a jail;
	1110	+	34.8 (2) order a conditional release of the defendant with conditions that include but are not
	1111	+	34.9limited to a requirement that the defendant participate in a competency attainment program
	1112	+	34.10when one becomes available and accessible;
	1113	+	34.11 (3) make a determination as to whether the defendant is likely to attain competency in
	1114	+	34.12the reasonably foreseeable future and proceed under section 611.49; or
	1115	+	34.13 (4) upon a motion, dismiss the charges in the interest of justice.
	1116	+	34.14 (e) The court may order any hospital, treatment facility, or correctional facility that has
	1117	+	34.15provided care or supervision to a defendant in the previous two years to provide copies of
	1118	+	34.16the defendant's medical records to the competency attainment program or alternative program
	1119	+	34.17in which the defendant was ordered to participate. This information shall be provided in a
	1120	+	34.18consistent and timely manner and pursuant to all applicable laws.
	1121	+	34.19 (f) If at any time the defendant refuses to participate in a competency attainment program
	1122	+	34.20or an alternative program, the head of the program shall notify the court and any entity
	1123	+	34.21responsible for supervision of the defendant.
	1124	+	34.22 (g) At any time, the head of the program may discharge the defendant from the program
	1125	+	34.23or facility. The head of the program must notify the court, prosecutor, defense counsel, and
	1126	+	34.24any entity responsible for the supervision of the defendant prior to any planned discharge.
	1127	+	34.25Absent emergency circumstances, this notification shall be made five days prior to the
	1128	+	34.26discharge if the defendant is not being discharged to jail or a correctional facility. Upon the
	1129	+	34.27receipt of notification of discharge or upon the request of either party in response to
	1130	+	34.28notification of discharge, the court may order that a defendant who is subject to bail or
	1131	+	34.29unmet conditions of release be returned to jail upon being discharged from the program or
	1132	+	34.30facility. If the court orders a defendant returned to jail, the court shall notify the parties and
	1133	+	34.31head of the program at least one day before the defendant's planned discharge, except in
	1134	+	34.32the event of an emergency discharge where one day notice is not possible. The court must
	1135	+	34Sec. 29.
	1136	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT 35.1hold a review hearing within seven days of the defendant's return to jail. The forensic
	1137	+	35.2navigator must be given notice of the hearing and be allowed to participate.
	1138	+	35.3 (h) If the defendant is discharged from the program or facility under emergency
	1139	+	35.4circumstances, notification of emergency discharge shall include a description of the
	1140	+	35.5emergency circumstances and may include a request for emergency transportation. The
	1141	+	35.6court shall make a determination on a request for emergency transportation within 24 hours.
	1142	+	35.7Nothing in this section prohibits a law enforcement agency from transporting a defendant
	1143	+	35.8pursuant to any other authority.
	1144	+	35.9 (i) If the defendant is ordered to participate in an inpatient or residential competency
	1145	+	35.10attainment or alternative program, the program or facility must notify the court, prosecutor,
	1146	+	35.11defense counsel, and any entity responsible for the supervision of the defendant if the
	1147	+	35.12defendant is placed on a leave or elopement status from the program and if the defendant
	1148	+	35.13returns to the program from a leave or elopement status.
	1149	+	35.14 (j) Defense counsel and prosecutors must have access to information relevant to a
	1150	+	35.15defendant's participation and treatment in a competency attainment program or alternative
	1151	+	35.16program, including but not limited to discharge planning.
	1152	+	35.17Sec. 30. Minnesota Statutes 2024, section 611.55, is amended by adding a subdivision to
	1153	+	35.18read:
	1154	+	35.19 Subd. 5.Data access.Forensic navigators must have access to all data collected, created,
	1155	+	35.20or maintained by a competency attainment program or an alternative program regarding a
	1156	+	35.21defendant in order for navigators to carry out their duties under this section. A competency
	1157	+	35.22attainment program or alternative program may request a copy of the court order appointing
	1158	+	35.23the forensic navigator before disclosing any private information about a defendant.
	1159	+	35.24Sec. 31. Laws 2023, chapter 70, article 7, section 34, the effective date, is amended to
	1160	+	35.25read:
	1161	+	35.26 EFFECTIVE DATE.This section is effective for background studies requested on or
	1162	+	35.27after August 1, 2024 the day following final enactment.
	1163	+	35Sec. 31.
	1164	+	REVISOR DTT H2260-1HF2260 FIRST ENGROSSMENT