Purpose

To modify how licensing violations are handled for providers that operate under both Minnesota's human services licensing framework and the child care licensing framework. The bill aims to limit enforcement actions to the specific site or program where violations occurred, provide clearer steps for corrective action, offer support resources, and improve transparency and accountability through reporting and oversight.

Main Provisions

• Targeted enforcement by site
  • When a provider operates more than one service site under a single license (under the child care framework), any correction orders or conditional licenses issued under this section must specify the exact site(s) where violations happened. Other sites under the same license are not automatically affected unless there is a clear basis.
  • If a provider has multiple licenses under this chapter, the added requirements tied to violations apply only to the specific program where violations occurred and only if those other programs are in substantial compliance with the rules.
• Notice before adding a conditional license
  • Before issuing a conditional license for providers who run programs under both this chapter and the child care chapter, the commissioner must tell the provider that their next audit or investigation could lead to a conditional license if there are violations.
• Flexibility to shorten conditional licenses
  • The commissioner may reduce the length of a conditional license if the provider demonstrates compliance or progress toward compliance before the conditional period ends.
• Conditions tied to the most recent correction order
  • Conditional licenses can only be issued if the provider failed to implement or follow the requirements from the most recent correction order.
• Access to support resources
  • If the provider asks, the commissioner must refer them to legal assistance or other technical assistance resources or services during enforcement actions.
• Education and partnerships
  • The commissioner must partner with culturally specific organizations to provide education on licensing requirements and staff training and informational assistance to providers operating programs under both frameworks.
• Reporting and transparency
  • By January 1, 2026 and every year after, the commissioner must report to legislative leaders on the number of correction orders and conditional licenses issued to dual-licensed providers, including aggregated data such as locations, zip codes, number of employees, and license dates, plus efforts to improve safety processes.

Changes to Existing Law

• Clarifies that orders and conditional licenses issued under this section are site- or program-specific when a provider has multiple sites or licenses, reducing blanket penalties across multiple programs.
• Requires advance notice about potential conditional licensing when the provider is subject to additional enforcement due to dual licensing.
• Creates a pathway to shorten conditional licensing periods based on demonstrated compliance.
• Expands the role of the commissioner to provide referrals to legal/technical assistance and to actively partner with culturally specific organizations for education and training.
• Establishes a formal annual reporting requirement to legislators with defined data elements related to enforcement actions.

Process and Procedures

• Reconsideration of correction orders
  • If a provider believes a correction order is in error, they may request reconsideration in writing within 20 days of receipt (or via the provider licensing and reporting hub within 20 days). The request must specify the challenged parts, explain why, and include supporting documentation.
  • Once the provider licensing and reporting hub is in place, reconsiderations must be submitted through the hub.
  • A reconsideration request does not automatically pause the correction order’s requirements.
  • For licensed family child care providers, there is an expedited review option if they describe substantial costs or major program changes required to comply, and they outline alternative actions to protect health and safety pending review.
  • The commissioner must offer alternative dispute resolution services when a correction order is appealed.
• Appeals
  • If a correction order is appealed, the bill requires consideration of alternative dispute resolution options, with the outcome of reconsiderations being final and not subject to a separate appeal under Chapter 14.

Support, Training, and Collaboration

• The commissioner must refer providers to legal and technical assistance upon request.
• The commissioner must partner with culturally specific organizations to provide targeted education on licensing requirements and staff training.

Reporting and Oversight

• A standing annual report to the legislative chairs and ranking minority members on the number of correction orders and conditional licenses issued to dual-licensed providers.
• The report must include data on locations (zip codes), number of employees, license effective dates, and efforts to improve safety through collaborative processes.

Effective Date / Implementation Notes

• The bill sets a deadline for the annual reporting to begin by January 1, 2026, with ongoing yearly reporting thereafter.
• The provider licensing and reporting hub is referenced as the future mechanism for submitting reconsideration requests.

Relevant Terms correction order conditional license service site program chapter 245A chapter 245D dual licensing license holder violation audit investigation substantial compliance most recent correction order articulable basis legal assistance technical assistance culturally specific organizations licensing requirements staff training informational assistance provider licensing and reporting hub expedited review alternative dispute resolution appeal Chapter 14 data elements (zip codes, locations, employees, license dates) safety process improvements