HF3526

Purpose

This bill makes changes to how fines from home care licensing surveys and investigations are handled, strengthens penalties for maltreatment by home care providers, creates a grant program to improve home care quality and outcomes, and reorganizes the advisory council that oversees home care and assisted living issues.

Main Provisions

• Fines for licensing violations

  • A tiered fine system (Level 1–Level 5) based on the seriousness of violations, plus possible enforcement actions.
  • Level 1: no fines or enforcement.
  • Level 2: $500 per violation.
  • Level 3: $1,000 per incident.
  • Level 4: $3,000 per incident.
  • Level 5: $5,000 per violation.
  • Higher fines apply for maltreatment determined to be the licensee’s fault, including sexual assault, death, or abuse resulting in serious injury.
  • Fines can be imposed immediately for surveys and investigations, and may be combined with other enforcement actions.

• Correction orders and notices

  • Violations are graded by level and by scope (isolated, pattern, or widespread).
  • A notice of noncompliance can be emailed to the facility’s last known address.
  • Each identified violation can trigger an immediate fine, with the right to appeal.
  • License holders must pay fines by a specified date; failing to comply can lead to a second fine or license suspension.
  • If a violation is corrected, the license holder must notify the commissioner; failure to correct on reinspection can lead to additional fines; notices are mailed.
  • A timely appeal can stay the payment of fines during the process.

• Special revenue account and grants for home care

  • Fines collected are deposited into a dedicated special revenue account.
  • Annually, money in the account is used to fund a competitive grant program to improve home care client quality of care and outcomes.
  • Grants go to licensed home care providers or organizations with expertise in home care practices; providers with temporary licenses are not eligible.
  • The department may keep up to 10% of each grant for administrative costs.
  • The department must publish an annual report showing fines collected and how the funds were allocated.

• Advisory council structure and appointments

  • The Home Care and Assisted Living Advisory Council will have 14 members, including:
  • Four public members (including individuals who have received home care services and a family member of someone who has received care).
  • Two home care licensees (e.g., managers or nursing staff).
  • One nurse from the Minnesota Board of Nursing.
  • One representative from the Office of the Ombudsman for Long-Term Care.
  • One representative from the Office of the Ombudsman for Mental Health and Developmental Disabilities.
  • One county health and human services or county adult protection office representative.
  • Two assisted living facility licensees (including those with dementia care).
  • One organization representing long-term care providers and home care providers.
  • One consumer advocacy representative for people receiving long-term care.
  • When a vacancy occurs, the commissioner must select a qualified applicant within 60 days, with a 21-day posting period for applicants.

• Special Projects Grant Program timeline

  • By December 31, 2028, distribute the remaining balance in the special revenue account (as of January 1, 2027) through a competitive grant program.
  • Grants must align with criteria in the advisory council’s guidelines.
  • If funds remain unawarded by 12/31/2028, they must be used for annual distributions starting 1/1/2029.

Significant Changes to Existing Law

• Elevates the use of fines and makes them more immediate for home care licensing violations and maltreatment, including higher penalties for egregious cases.
• Ties fined money to a dedicated account used to fund improvements in home care quality, safety, and outcomes, plus an annual reporting requirement.
• Expands and formalizes the Home Care and Assisted Living Advisory Council with a specific, published membership structure and a defined process for filling vacancies.
• Establishes a focused grant program (Special Projects) to support projects that advance client quality of care and outcomes, funded by fines and administered through a new or existing framework.

Implementation and Oversight (Key Details)

• Fines and enforcement are governed alongside existing enforcement mechanisms in related sections, with provisions for correction orders, notices, appeals, and possible license suspension.
• An annual report will be published detailing fines collected and how the funds were allocated.
• The grant program is competitive and restricted to licensed home care providers or experienced organizations; a portion of each grant may be used for administrative costs.

Relevant terms - home care licensing surveys and investigations - fines (Level 1–Level 5) - maltreatment - sexual assault - correction orders - notice of noncompliance - immediate fines - appeals and reconsiderations - second fines - license suspension - dedicated special revenue account - annual report - grants / special projects grant program - home care providers - assisted living facilities - advisory council (home care and assisted living) - Minnesota Board of Nursing - Office of Ombudsman for Long-Term Care - Office of Ombudsman for Mental Health and Developmental Disabilities - county health and human services - dementia care - licensure and renewal - temporary license

Relevant Terms - compliance - client quality of care - health and safety - enforcement actions - investigation costs - corrective action - petition for reconsideration - provider accountability - grant administration - annual appropriation