Bill Text: MN HF1840 | 2013-2014 | 88th Legislature | Introduced
Bill Title: State agency advisory inspections statute provision miscellaneous oversights, inconsistencies, ambiguities, unintended results, and technical errors corrected.
Sponsorship: Bipartisan Bill
Status: (Introduced - Dead) 2013-05-20 - House rule 1.21, placed on Calendar for the Day [HF1840 Detail]
Download: Minnesota-2013-HF1840-Introduced.html
1.2relating to legislative enactments; correcting miscellaneous oversights,
1.3inconsistencies, ambiguities, unintended results, and technical errors;amending
1.4Minnesota Statutes 2012, section 15.985.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 15.985, is amended to read:
1.715.985 ADVISORY INSPECTIONS.
1.8(a) Upon the voluntary request of a person to a state agency for an advisory inspection
1.9for the purpose of complying with state law, the agency must, except as provided in
1.10paragraphs (f) and (g), conduct an advisory inspection. An agency is not required to
1.11conduct an advisory inspection if the agency has a regularly scheduled inspection that
1.12would occur within 90 days after the request for the advisory inspection, or if before
1.13an advisory inspection is requested, the agency has notified the person that it will be
1.14conducting an inspection within 45 days. If an advisory inspection results in findings that
1.15potentially could make a person subject to a fine or other penalty imposed by the agency, the
1.16agency must notify the person in writing of those findings within ten days of the inspection.
1.17(1) Except as provided in clause (2), if within 60 days of receiving notice, the person
1.18notifies the agency that it has corrected the situation that made the person potentially
1.19subject to the fine or penalty, and the agency later determines that the situation is
1.20corrected, the agency may not impose a fine or penalty as a result of the findings in the
1.21advisory inspection.
1.22 (2) For violations of chapter 177, if the person notifies the agency within the time
1.23period for remedying violations required under the applicable section of chapter 177 that it
1.24has corrected the situation that made the person potentially subject to the fine or penalty,
2.1and the agency later determines that the situation is corrected, the agency may not impose
2.2a fine or penalty as a result of the finding in the advisory inspection.
2.3 (3) A person may not request more than one advisory inspection from the same
2.4agency in a calendar year. A person may not request an advisory inspection after an
2.5inspection resulting in a fine or other penalty has been determined and the violator notified
2.6of the amount to be paid, until fines or penalties have been paid or settled.
2.7(b) For purposes of this section:
2.8(1) "inspection" includes an examination of real or personal property or an audit or
2.9other examination of financial or other documents;
2.10(2) "penalty" includes a civil or administrative fine or other financial sanction;
2.11(3) "person" includes a real person and businesses, including corporations,
2.12partnerships, limited liability companies, and unincorporated associations; and
2.13(4) "state agency" means a department, agency, board, commission, constitutional
2.14office, or other group in the executive branch of state government.
2.15(c) If an agency revises, amends, extends, or adds additional violations to a notice,
2.16the person has 60 days from the date of those changes to correct the situation without fine
2.17or penalty. For violations of chapter 177, the person has the time period for remedying
2.18violations under the applicable section of chapter 177 to correct the situation without
2.19fine or penalty.
2.20 (d) An agency conducting an inspection under this section may impose and collect
2.21from the person requesting the inspection a fee equal to the costs incurred by the agency
2.22related to the inspection. Fees under this section shall be considered charges for goods
2.23and services provided for the direct and primary use of a private individual, business, or
2.24other entity under section16A.1283 , paragraph (b), clause (3). Fee revenue collected
2.25under this section must be deposited in an appropriate fund other than the general fund
2.26and is appropriated from that fund to the agency collecting the fee for the purpose of
2.27conducting inspections under this section.
2.28 (e) Nothing in this section shall prohibit or interfere with an agency offering similar
2.29programs that allow independent audits or inspections, including the environmental
2.30improvement program under chapter 114C. If a person conducts a self-audit under chapter
2.31114C, the terms and conditions of this section do not apply. For advisory inspections
2.32conducted by the Pollution Control Agency, terms and conditions of sections114C.20 to
2.33144C.28 114C.28 shall be used instead of those in paragraphs (a) to (c) and (g).
2.34(f) If agency staff resources are limited, an agency must give higher priority to
2.35the agency's regular inspections over advisory inspections under this section. Insofar as
2.36conducting advisory inspections reduces an agency's costs, the savings must be reflected
3.1in the charges for advisory inspections. Before hiring additional staff complement for
3.2purposes of this section, an agency must report to the chairs and ranking minority members
3.3of the legislative budget committees with jurisdiction over the agency documenting: (1)
3.4the demand for advisory inspections and why additional staff complement is needed to
3.5meet the demand; and (2) that the revenue generated by advisory inspections will cover the
3.6expenses of the additional staff complement. If a person requests an advisory inspection,
3.7but the agency does not have staff resources necessary to conduct the advisory inspection
3.8before a regular inspection is conducted, and the regular inspection results in findings that
3.9could make a person subject to a fine or penalty, the agency must take into account the
3.10person's request for an advisory inspection and the person's desire to take corrective action
3.11before taking any enforcement action against the person.
3.12(g) This section does not apply to:
3.13(1) criminal penalties;
3.14(2) situations in which implementation of this section is prohibited by federal
3.15law or would result in loss of federal funding or in other federal sanctions or in which
3.16implementation would interfere with multistate agreements, international agreements, or
3.17agreements between state and federal regulatory agencies;
3.18(3) conduct constituting fraud;
3.19(4) violations in a manner that endangers human life or presents significant risk of
3.20major injury or severe emotional harm to humans;
3.21(5) violations that are part of a pattern that has occurred repeatedly and shows
3.22willful intent;
3.23(6) violations for which it may be demonstrated that the alternative inspections
3.24process is being used to avoid enforcement;
3.25(7) violations that occur within three years of violating an applicable law;
3.26(8) the Department of Revenue;
3.27(9) the Workers' Compensation Division at the Department of Labor and Industry;
3.28(10) violations of vehicle size weight limits under sections169.80 to
169.88 ;
3.29(11) commercial motor vehicle inspections under section169.781 and motor carrier
3.30regulations under chapter 221;
3.31(12) the Dairy and Food Inspection Division of the Department of Agriculture, if the
3.32division provides free inspections similar to those under this section;
3.33(13) state inspections or surveys of hospitals, nursing homes, outpatient surgical
3.34centers, supervised living facilities, board and lodging with special services, home care,
3.35housing with services and assisted living settings, hospice, and supplemental nursing
3.36services agencies;
4.1(14) examinations of health maintenance organizations or county-based purchasing
4.2entities regulated under chapter 62D;
4.3(15) special transportation services under section174.30 ; and
4.4(16) entities regulated by the Department of Commerce's Financial Institutions and
4.5Insurance Divisions for purposes of regulatory requirements of those divisions.
4.6If an agency determines that this section does not apply due to situations specified in
4.7clause (2), the agency must report the basis for that determination to the chairs and ranking
4.8minority members of the legislative committees with jurisdiction over the agency.
4.9(h) An agency may terminate an advisory inspection and proceed as if an inspection
4.10were a regular inspection if, in the process of conducting an advisory inspection, the
4.11agency finds a situation that the agency determines: could lead to criminal penalties;
4.12endangers human life or presents significant risk of major injury or severe emotional
4.13harm to humans; presents a severe and imminent threat to animals, food, feed, crops,
4.14commodities, or the environment; or evidences a pattern of willful violations.
4.15 Sec. 2. EFFECTIVE DATE.
4.16Unless otherwise provided, each section of this act takes effect at the time the
4.17provision being corrected takes effect.
1.3inconsistencies, ambiguities, unintended results, and technical errors;amending
1.4Minnesota Statutes 2012, section 15.985.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 15.985, is amended to read:
1.715.985 ADVISORY INSPECTIONS.
1.8(a) Upon the voluntary request of a person to a state agency for an advisory inspection
1.9for the purpose of complying with state law, the agency must, except as provided in
1.10paragraphs (f) and (g), conduct an advisory inspection. An agency is not required to
1.11conduct an advisory inspection if the agency has a regularly scheduled inspection that
1.12would occur within 90 days after the request for the advisory inspection, or if before
1.13an advisory inspection is requested, the agency has notified the person that it will be
1.14conducting an inspection within 45 days. If an advisory inspection results in findings that
1.15potentially could make a person subject to a fine or other penalty imposed by the agency, the
1.16agency must notify the person in writing of those findings within ten days of the inspection.
1.17(1) Except as provided in clause (2), if within 60 days of receiving notice, the person
1.18notifies the agency that it has corrected the situation that made the person potentially
1.19subject to the fine or penalty, and the agency later determines that the situation is
1.20corrected, the agency may not impose a fine or penalty as a result of the findings in the
1.21advisory inspection.
1.22 (2) For violations of chapter 177, if the person notifies the agency within the time
1.23period for remedying violations required under the applicable section of chapter 177 that it
1.24has corrected the situation that made the person potentially subject to the fine or penalty,
2.1and the agency later determines that the situation is corrected, the agency may not impose
2.2a fine or penalty as a result of the finding in the advisory inspection.
2.3 (3) A person may not request more than one advisory inspection from the same
2.4agency in a calendar year. A person may not request an advisory inspection after an
2.5inspection resulting in a fine or other penalty has been determined and the violator notified
2.6of the amount to be paid, until fines or penalties have been paid or settled.
2.7(b) For purposes of this section:
2.8(1) "inspection" includes an examination of real or personal property or an audit or
2.9other examination of financial or other documents;
2.10(2) "penalty" includes a civil or administrative fine or other financial sanction;
2.11(3) "person" includes a real person and businesses, including corporations,
2.12partnerships, limited liability companies, and unincorporated associations; and
2.13(4) "state agency" means a department, agency, board, commission, constitutional
2.14office, or other group in the executive branch of state government.
2.15(c) If an agency revises, amends, extends, or adds additional violations to a notice,
2.16the person has 60 days from the date of those changes to correct the situation without fine
2.17or penalty. For violations of chapter 177, the person has the time period for remedying
2.18violations under the applicable section of chapter 177 to correct the situation without
2.19fine or penalty.
2.20 (d) An agency conducting an inspection under this section may impose and collect
2.21from the person requesting the inspection a fee equal to the costs incurred by the agency
2.22related to the inspection. Fees under this section shall be considered charges for goods
2.23and services provided for the direct and primary use of a private individual, business, or
2.24other entity under section
2.25under this section must be deposited in an appropriate fund other than the general fund
2.26and is appropriated from that fund to the agency collecting the fee for the purpose of
2.27conducting inspections under this section.
2.28 (e) Nothing in this section shall prohibit or interfere with an agency offering similar
2.29programs that allow independent audits or inspections, including the environmental
2.30improvement program under chapter 114C. If a person conducts a self-audit under chapter
2.31114C, the terms and conditions of this section do not apply. For advisory inspections
2.32conducted by the Pollution Control Agency, terms and conditions of sections
2.33
2.34(f) If agency staff resources are limited, an agency must give higher priority to
2.35the agency's regular inspections over advisory inspections under this section. Insofar as
2.36conducting advisory inspections reduces an agency's costs, the savings must be reflected
3.1in the charges for advisory inspections. Before hiring additional staff complement for
3.2purposes of this section, an agency must report to the chairs and ranking minority members
3.3of the legislative budget committees with jurisdiction over the agency documenting: (1)
3.4the demand for advisory inspections and why additional staff complement is needed to
3.5meet the demand; and (2) that the revenue generated by advisory inspections will cover the
3.6expenses of the additional staff complement. If a person requests an advisory inspection,
3.7but the agency does not have staff resources necessary to conduct the advisory inspection
3.8before a regular inspection is conducted, and the regular inspection results in findings that
3.9could make a person subject to a fine or penalty, the agency must take into account the
3.10person's request for an advisory inspection and the person's desire to take corrective action
3.11before taking any enforcement action against the person.
3.12(g) This section does not apply to:
3.13(1) criminal penalties;
3.14(2) situations in which implementation of this section is prohibited by federal
3.15law or would result in loss of federal funding or in other federal sanctions or in which
3.16implementation would interfere with multistate agreements, international agreements, or
3.17agreements between state and federal regulatory agencies;
3.18(3) conduct constituting fraud;
3.19(4) violations in a manner that endangers human life or presents significant risk of
3.20major injury or severe emotional harm to humans;
3.21(5) violations that are part of a pattern that has occurred repeatedly and shows
3.22willful intent;
3.23(6) violations for which it may be demonstrated that the alternative inspections
3.24process is being used to avoid enforcement;
3.25(7) violations that occur within three years of violating an applicable law;
3.26(8) the Department of Revenue;
3.27(9) the Workers' Compensation Division at the Department of Labor and Industry;
3.28(10) violations of vehicle size weight limits under sections
3.29(11) commercial motor vehicle inspections under section
3.30regulations under chapter 221;
3.31(12) the Dairy and Food Inspection Division of the Department of Agriculture, if the
3.32division provides free inspections similar to those under this section;
3.33(13) state inspections or surveys of hospitals, nursing homes, outpatient surgical
3.34centers, supervised living facilities, board and lodging with special services, home care,
3.35housing with services and assisted living settings, hospice, and supplemental nursing
3.36services agencies;
4.1(14) examinations of health maintenance organizations or county-based purchasing
4.2entities regulated under chapter 62D;
4.3(15) special transportation services under section
4.4(16) entities regulated by the Department of Commerce's Financial Institutions and
4.5Insurance Divisions for purposes of regulatory requirements of those divisions.
4.6If an agency determines that this section does not apply due to situations specified in
4.7clause (2), the agency must report the basis for that determination to the chairs and ranking
4.8minority members of the legislative committees with jurisdiction over the agency.
4.9(h) An agency may terminate an advisory inspection and proceed as if an inspection
4.10were a regular inspection if, in the process of conducting an advisory inspection, the
4.11agency finds a situation that the agency determines: could lead to criminal penalties;
4.12endangers human life or presents significant risk of major injury or severe emotional
4.13harm to humans; presents a severe and imminent threat to animals, food, feed, crops,
4.14commodities, or the environment; or evidences a pattern of willful violations.
4.15 Sec. 2. EFFECTIVE DATE.
4.16Unless otherwise provided, each section of this act takes effect at the time the
4.17provision being corrected takes effect.
