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In the Matter of the Conditional License and Order to Forfeit a Fine Against the License of Rosemary Milton |
FINDINGS OF FACT, CONCLUSIONS, AND RECOMMENDATIONS |
A hearing was held in this matter before
Administrative Law Judge Steve M. Mihalchick on October 21, 2005, at the Office
of Administrative Hearings,
Margaret L. Gustafson, Special Assistant Ramsey
County Attorney,
This report is a recommendation, not a final
decision. The Commissioner of Human
Services will make the final decision after a review of the record. The Commissioner may adopt, reject or modify
the Findings of Fact, Conclusions, and Recommendations. Under Minn. Stat. § 14.61, the final decision
of the Commissioner shall not be made until this Report has been made available
to the parties to the proceeding for at least ten days. An opportunity must be afforded to each party
adversely affected by this Report to file exceptions and present argument to
the Commissioner. Parties should contact
Kevin Goodno, Commissioner, Department of Human Services,
If the Commissioner fails to issue a final decision within 90 days of the close of the record, this report will constitute the final agency decision under Minn. Stat. § 14.62, subd. 2a. The record closes upon the filing of exceptions to the report and the presentation of argument to the Commissioner, or upon the expiration of the deadline for doing so. The Commissioner must notify the parties and the Administrative Law Judge of the date on which the record closes.
Under Minn. Stat. § 14.62, subd. 1, the agency is required to serve its final decision upon each party and the Administrative Law Judge by first class mail or as otherwise provided by law.
1. Was Licensee required to submit a background study form for a substitute caregiver Minn. Stat. §§ 245C.04, subd. 1, and 245C.03, subd. 1(d), and, if so, did she fail to do so?
2. If so, did the Department properly impose a fine of $200 and order conditional licensure
Based upon all of the proceedings herein, the Administrative Law Judge makes the following:
1. Licensee has been licensed by DHS to provide family child care for up to 10 children in her home since March 2001. Licensee typically provides care for about seven or eight children.[1]
2.
Raberta
3. On May 13, 2004, Licensee was advised that she would need major surgery that would require six weeks of recuperation during which she could not work as a child care provider. Licensee was concerned that if she shut down for a six week period, her clients would find permanent child care elsewhere and she would be out of business. Licensee was so anxious about the issue that she discussed it with a psychologist.[4]
4. Under the Department's day care rules, children in a day care must be supervised by a “caregiver,” and the licensed provider must be the primary caregiver. A “substitute” may provide care in place of the licensed provider (when the provider is not present), but not for more than a total of 30 days in any 12 month period.[5] Providers are licensed to provide day care at a particular location. Other caregivers are not licensed, whether they assist the provider when the provider is present or whether they act as a substitute when the provider is temporarily absent. A licensed provider must submit documentation that all adult caregivers who assist with care on a regular basis have had a physical examination within the prior 12 months and are physically able to care for children.[6]
5.
Under
"Commissioner" means the commissioner of human services or the commissioner's designated representative including county agencies and private agencies.[8]
6. In addition to licensed child care, there are certain situations that are excluded from the licensure requirement where the care is being provided by otherwise qualified organizations or where the amount of child care that is provided is so limited that a license is not required. The exclusions that apply to child care by individuals are listed in Minn. Stat. § 245A.03, subd. 2(a)(2004), as follows:
This chapter does not apply to:
(1) residential or nonresidential programs that are provided to a person by an individual who is related unless the residential program is a child foster care placement made by a local social services agency or a licensed child-placing agency, except as provided in subdivision 2a;
(2) nonresidential programs that are provided by an unrelated individual to persons from a single related family;
. . .
(15) nonresidential programs for children provided for a cumulative total of less than 30 days in any 12-month period;[9]
7. Licensee was not familiar with the rules on the use of substitutes. She was unaware even that the word “substitute” had a particular meaning in day care licensure. She understood the word according to its common meaning to mean anybody that could replace her, including other licensed providers. Licensee had never used a substitute caregiver to relieve her, even for a few hours. She assumed that all substitutes had to be licensed providers. She recalls having heard of licensed providers who did only “substitute work.” Licensee was also unfamiliar with the statute allowing unlicensed child care in limited situations.[10]
8.
On July 23, 2004, Licensee called her Licensor, Ms.
Washington, and informed her that she would be having surgery in January
2005. She asked if Ms.
9.
Ms.
10.
Licensee called the Adults and Children's
11. On or about August 30, 2004, FCC Licensing mailed a brochure about adult caregiver and helper training to Licensee. The brochure described co-applicants, adult caregivers, and helpers. A co-applicant was described as a person whose name appeared on the license, completed the application and other requirements and signed a provider agreement and met the same training requirements as the primary licensed provider. A helper was described as a person 13 up to 18 years old, who had 18 would be considered an adult assistant. An adult caregiver was described as follows:
ADULT
CAREGIVER:
Provides care 30 times a year or more but name is not on the license. The adult caregiver must provide a BCA, Fact Sheet, Physician’s Report, and at least 6 hours of training each year which includes CPR and SIDS training. An Adult Substitute Caregiver can provide care in the absent [sic] of the provider up to 30 times in one calendar year. Six hours of training per year is required.[14]
12. Upon seeing this provision, Licensee realized for the first time that a substitute caregiver could be unlicensed. However, she did not realize that this was because the licensed provider remains responsible for the care of the children provided by a substitute caregiver because she still did not understand the concept of a substitute in licensing parlance. Instead, she focused on the concept that a caregiver could be unlicensed, which was new to her.[15]
13. Licensee reviewed her provider handbook to confirm her understanding that adult substitutes did not have to be licensed. She found a page describing changes to the Human Services Licensing Act -- Minnesota Statute 245A. It was on a form numbered RCW 3239 (8/00) cdr.[16] It listed the statutory exclusions from licensure. Licensee made particular note of the following statement paraphrasing clause (15):
A license is still not required in the following child care situations under Minnesota Statutes, section 245A.03, subdivision 2, . . . (15) child care provided to children for a cumulative total of less than 30 days in any 12 month period.
Licensee understood this provision to apply to substitutes, as she used the term, and now thought that she had another option available. Under this law, she could find someone to provide child care for her clients for less than a total of 30 days and that person would not have to be licensed.[17]
14. On September 3, 2004, Licensee contacted Tammy E. Wayne, the parent of a child who had formerly received child care from Licensee, and asked if she would be interested in providing substitute day care in Licensee’s home. After Ms. Wayne expressed interest, Licensee contacted a tax attorney with some knowledge of day care laws. The attorney said that it was his understanding that Licensee could use an unlicensed substitute, but suggested that she contact the Licensor to see what was required. The attorney also advised Licensee to create an independent contractor relationship with the Ms. Wayne. He suggested a contract establishing independent contractor status between Ms. Wayne and Licensee and another set of contracts between Ms. Wayne and the parents of each of the children receiving child care. Licensee decided to proceed as her lawyer suggested.[18]
15.
On September 7, 2005, the Licensee spoke to Ms.
16.
Licensee and Ms. Washington misunderstood each
other during these discussions in September.
Licensee was talking about Ms. Wayne temporarily providing unlicensed
child care in Licensee's home, while Ms.
17.
One child in Licensee’s care receives daycare
subsidy payments from the County. The
County has contracted with Resources for Child Caring (“RCC”) to provide some
administrative services pertaining to the payment of day care subsidies,
including the meals program. RCC also
contracts with the County to operate a clearinghouse for parents seeking available
licensed daycare in
18. On October 28, 2004, Ms. Wayne and Licensee signed a Substitute Childcare Provider Agreement that had been drafted by Licensee or her attorney. The agreement contained the following provisions, among others:
a. From February 7, 2005 to March 18, 2005, Ms. Wayne would be the “substitute childcare provider in place of” Licensee while Licensee recovered from surgery.
b. Ms. Wayne would provide the childcare at Licensee's residence.
c. Ms. Wayne would have her own contract with each of the clients so that they would understand that she was acting as a self-employed provider, not an employee of Licensee. Licensee would be on the premises recovering from surgery, but would not be providing care to the children and would not be supervising Ms. Wayne. She would, however, be available to answer questions from Ms. Wayne.
d. The clients would pay Ms. Wayne directly and Licensee would receive no income during the period.
e. Supplies would be provided by Licensee.
f. All curriculum, activities, cooking, etc. were the sole responsibility of Ms. Wayne.
g. Ms. Wayne would complete and pass a First Aid/CPR course prior to beginning work, because it was a state requirement.[21]
19. At various times during November 2004, Licensee's parents each signed an Enrollment Agreement for Child Care Services. Ms. Wayne signed the agreements on January 13, 2005. Each Enrollment Agreement stated that the parents understood that their children were enrolled in child care with Ms. Wayne for the period of February 7, 2005, through March 18, 2005. Each provided that day care would be provided Monday through Friday and identified the particular days and times each child would be attending, stated the rates to be paid, and provided for a termination notice of two weeks. Ms. Wayne signed the document in a space labeled, “Provider's signature.”[22]
20. The period of February 7, 2005, through March 18, 2005, is almost six weeks long and has 30 weekdays.
21. On January 28, 2005, Licensee had surgery. She closed day care services for one week. On February 7, 2005, Ms. Wayne began caring for Licensee’s day care children at Licensee’s home. Licensee was present at her home, other than when she left for medical appointments. She saw Ms. Wayne interact with the children at various times during the day and did not observe any conduct that would cause concern. Licensee also had a monitor in her bedroom so she could hear the children in the event Ms. Wayne needed assistance. Licensee perceived no problems until March 2, 2005, when she observed Ms. Wayne was bleeding from her ear.[23]
22.
On March 3, 2005, the County received a report
from
23.
Ms.
24. The form used by FCC Licensing for authorizing background checks of criminal information is form number RCW 1909 (Rev.7/02) Page 1 [and 2] cdr. There is no title on the front page of the form, only instructions to, “PLEASE PROVIDE THE FOLLOWING INFORMATION (Please Print):.” The back of the form has the title, “Applicant Background Study, Bureau of Criminal Apprehension Clearance Check.” It contains a number of instructions and information that the information requested will be disclosed to the Department and the local agency responsible for licensing.[26]
25. Ms. Washington and the County believe that when day care is provided in a licensee's home, it is being provided under that licensee's day care license.[27] In this case, they did not believe that Ms. Wayne could provide legal unlicensed day care in Licensee's home.
26. Licensee terminated her contract with Ms. Wayne on March 3, 2005. Ms. Wayne had no contact with the children in day care after March 2, 2005. Ms. Wayne provided day care in Licensee's home from February 7, 2005, to March 2, 2005, a total of 24 days.[28]
27.
Ms.
28.
On March 29, 2005, Ms.
FCC licensing informed Mrs. Milton that these were not the correct forms and that the licensor had previously stated to her (7/23/04 phone call, 1/20/05 relicensing visit) the forms that needed to be completed prior to any substitute caregiver being employed. In addition, all the forms were to be submitted and cleared by Ramsey County FCC Licensing as agent for DHS.
29.
There was no relicensing visit on January 20,
2005. There had been a relicensing visit
on January 20, 2004. It could not
possibly have happened on that date. Ms.
30. The March 29, 2005, letter stated the County's position on the arrangement with Ms. Wayne as follows:
The fact that day care services were being provided in the Milton FCC home meant that care was under the FCC license. As the license holder, Mrs. Milton was to follow the mandated licensing rules regarding documentation and qualification of caregivers, and was therefore, in violation.
31.
Ms.
32. On August 19, 2005, the Department issued an Order to Forfeit a Fine – Order of Conditional License to Licensee. It stated that it was based upon a recommendation by the County. It ordered a $200 fine stating the following reason:
On February 8, 2005, you were in violation of Minnesota Statutes, section 245C.04, subdivision 1, which requires license holders to submit a background study form to DHS before an individual working in the program has direct contact with children served by the program.
It described the violation as follows:
On March 3, 2005,
33.
The Order also placed Licensee's license on
conditional status for one year. The
Order cited
During the complaint investigation, the licensing workers determined that from February 8, 2005, to March 3, 2005, a caregiver who was providing care for children did not have a background study submitted as required.
34. The Order imposed five terms on the conditional license. They included that she submit a written plan describing how she would ensure that substitute caregivers have the appropriate training and how she would comply with the background study requirements for all substitute caregivers, that she notify her licensor prior to use of any substitute caregiver, and that she provide a copy of the Order of Conditional License to the parents of her day care children.[32]
35. Licensee filed a timely appeal. The Notice of and Order for Hearing dated August 29, 2005, was served by the County by mail on September 20, 2005.
Based upon the foregoing Findings of Fact, the Administrative Law Judge makes the following:
1. The Administrative Law Judge and the Commissioner of Human Services are authorized to consider the appeal of the fine and conditional child care license, pursuant to Minn. Stat. §§ 245A.08 and 14.50.
2. The Department may demonstrate reasonable cause for the action taken by submitting statements, reports, or affidavits to substantiate the allegations that the license holder failed to comply fully with applicable laws or rules. If the Department demonstrates reasonable cause, the burden of proof shifts to the license holder to demonstrate by a preponderance of the evidence that the license holder was in full compliance with those laws or rules that the Department alleges were violated.[33]
3. Licensee has demonstrated by a preponderance of the evidence that Ms. Wayne was acting as a provider of legal unlicensed day care providing day care in Licensee's home from February 7, 2005, through March 2, 2005. Licensee was not the provider of day care during that period and Ms. Wayne was not her “substitute” as that term is defined in Minn. Rule 9502.0315, subp. 29.
4. Since Ms. Wayne was a legal unlicensed day care provider, Licensee was not required to submit a completed background study form for her under Minn. Stat. §§ 245C.03, subd. 1, and 245C.04, subd. 1. Therefore, Licensee did not violate those statutes.
5. Even if Ms. Wayne were considered to have been a “substitute” and Licensee were considered to have been the “provider,” there was no violation of Minn. Stat. §§ 245C.03, subd. 1, and 245C.04, subd. 1, because a completed background check form for Ms. Wayne was submitted to RCC before she began providing care. RCC is a private agency authorized to request and receive the County's Release of Criminal Information form, RCW 2149A, which by its own terms provides for the release of information to Ramsey County Community Human Services. Thus, the completed background check form was provided to the County as required by the statutes.
Based upon the foregoing Conclusions, and for the reasons set forth in the accompanying Memorandum, the Administrative Law Judge makes the following:
Dated: December 9, 2005
/s/ Steve M. Mihalchick
__________________________
STEVE M. MIHALCHICK
Administrative Law Judge
Tape recorded (two tapes) not transcribed
The purpose of a background study in the day care setting is to determine whether persons who will have direct contact with day care children have committed any acts that would disqualify them from having that direct contact. The Department maintains that Licensee violated the plain language of the statute when she failed to submit a background study form before her substitute caregiver began work. The Department seeks sanctions consisting of a $200 fine and the imposition of a one-year conditional license.
Licensee has an exemplary record of providing quality child care. It is apparent that the County and Licensee have experienced significant miscommunications, some of which are not the fault of either Licensee or Ms. Washington, that have resulted in misunderstandings and hard feelings.
There are some conflicts in the testimony of Licensee and Ms. Washington and it is necessary to assess their credibility. Licensee was very precise, kept detailed and accurate records, and testified very credibly. She is an excellent day care provider. She sought information from the County and others as to how she could arrange to cover the care of her clients during her surgery and recovery. She looked at the statutes, rules, and other materials she had been provided and attempted to comply with them in every way. She suffered from a lack of knowledge of the jargon used by the County, and so did not ask the right questions and misunderstood the answers received.
Ms.
It is most clear that Ms. Washington never
understood that Licensee was contemplating using Ms. Wayne to provide legal
unlicensed day care in her home. That
was probably because of confusion over the use of the term “substitute.” Ms.
The County has provided no support for its statement that day care provided Licensee’s home “meant that care was under the FCC license.” Nothing in the licensing statutes or rules says that. On the contrary, Ms. Wayne met every requirement set by Minn. Stat. § 245A.03, subd. 2, to be excluded from licensure. Thus, the statutes the Department alleges have been violated did not apply in this situation.
Licensee was not intentionally attempting to circumvent the rules governing substitute caregivers. Rather, Licensee made great efforts to comply with the law and honestly believed that submitting the completed background check form to RCC was what was required in these unique circumstances. She appears to have been correct, but if she was wrong, her mistake is understandable. The form was submitted and the County presumably completed the background check. The children were cared for without incident. It is not appropriate that Licensee be penalized in this situation.
S.M.M.
[1]
Testimony of
[2]
Testimony of
[3]
Testimony of
[4]
Testimony of
[5]
Subp. 6. Caregiver. "Caregiver" means the provider, substitute, helper, or another adult giving care in the residence.
Subp. 14. Helper. "Helper" means a person at least 13 years of age and less than 18 years of age who assists the provider with the care of children.
Subp. 29. Substitute. "Substitute" means an adult at least 18 years of age who assumes the responsibility of the provider as specified in part 9502.0365, subpart 5.
Subp. 4. Helpers. A helper may be used in place of a second adult caregiver when there is no more than one infant or toddler present.
Subp. 5. Supervision and use of substitutes. A licensed provider must be the primary provider of care in the residence. Children in care must be supervised by a caregiver. The use of a substitute caregiver must be limited to a cumulative total of not more than 30 days in any 12-month period.
[6]
[7] Minn. Stat. §245C.04, subd. 1(d), provides:
Applicants for licensure, license holders, and other entities as provided in this chapter must submit completed background study forms to the commissioner before individuals specified in section 245C.03, subdivision 1, begin positions allowing direct contact in any licensed program.
The persons listed in Minn. Stat. § 245C.03, subd. 1, include:
(3) current or prospective employees or contractors of the applicant who will have direct contact with persons served by the facility, agency, or program;
[8]
[9] Effective August 1, 2005, clause (15) was amended to read:
programs for children such as scouting, boys clubs, girls clubs, and sports and art programs, and nonresidential programs for children provided for a cumulative total of less than 30 days in any 12-month period.
Laws of
[10]
Testimony of
[11]
Testimony of
[12] Testimony of Milton and Washington; Exs. 3 and 5 at 27.
[13]
Testimony of
[14]
Testimony of
[15]
Testimony of
[16] Ramsey County Welfare (RCW) is the former name of the Ramsey County Community Human Services Department.
[17]
Testimony of
[18]
Testimony of
[19]
Testimony of
[20] Testimony of Milton and Washington; Ex . 5 at 20.1.
[21] Testimony
of
[22] Ex. 5 at 19.1-19.11.
[23]
Testimony of
[24]
Testimony of
[25] Testimony of Milton and Washington; Ex. 5 at 28.2.
[26]
Testimony of
[27]
Testimony of
[28]
Testimony of
[29]
Testimony of
[30]
Testimony of
[31]
Testimony of
[32] Ex. 1. The order stated it was based a recommendation of Ramsey County Human Services Department.
[33]