Contested Case of Laura Baker School Ass'n v. Department of Human Services

377 N.W.2d 465, 1985 Minn. App. LEXIS 4630, 29 Educ. L. Rep. 362
CourtCourt of Appeals of Minnesota
DecidedNovember 19, 1985
DocketNo. C8-85-833
StatusPublished
Cited by1 cases

This text of 377 N.W.2d 465 (Contested Case of Laura Baker School Ass'n v. Department of Human Services) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Contested Case of Laura Baker School Ass'n v. Department of Human Services, 377 N.W.2d 465, 1985 Minn. App. LEXIS 4630, 29 Educ. L. Rep. 362 (Mich. Ct. App. 1985).

Opinion

OPINION

WOZNIAK, Judge.

Relator Laura Baker School Association brought a writ of certiorari seeking review of a decision by the Commissioner of Human Services in which the Commissioner ruled that the School was subject to the Department of Human Services’ need determination process prior to seeking certification from the Department of Health as an intermediate care facility for the mentally retarded. The Commissioner further found that the Department did not unreasonably fail to exercise its authority in making a need determination prior to June 10, 1983, when the statutory moratorium on certification of intermediate care facility beds for the mentally retarded went into effect. The Department of Human Services refused to make a determination of need because of the moratorium. We reverse and remand.

FACTS

The Laura Baker School Association (School) is a nonprofit corporation. It provides educational and residential services to mentally retarded persons at its facilities in Northfield, Minnesota, serving children and adults in approximately equal numbers. The adult residents are semi-independent, require limited supervision, and are able to work in sheltered employment or attend developmental achievement centers. School age residents function at a lower level, and tend to be severely or profoundly retarded and have other medical problems.

The School was founded in 1897, and has been licensed ever since the state began licensing such facilities. It is licensed as a supervised living (residential) facility for mentally retarded persons. It is now licensed by the Department of Human Services (DHS) for 73 residents under Minn.R. 9525.0210-.0430 and by the Minnesota Department of Health (DOH) under Minn.R. ch. 4665. Presently, 337 facilities are licensed under these rules. All but four are also certified as intermediate care facilities for mentally retarded persons (ICF/MR) by the DOH. The School is one of the four which is not certified as ICF/MR. In Minnesota, ICF/MRs provide approximately 7,489 beds for mentally retarded persons, about 2,200 of which are located in state hospitals.

In 1978, the School began planning a building improvement program. In 1979, Rice County welfare officials suggested that the School become certified as an ICF/MR, which would make the county eligible for federal medical assistance funds for the costs of resident care. The building program was adopted, resulting in the construction of two new residential buildings which housed sixteen residents each, and a food service building. The construction was completed prior to April 27, 1983. These improvements were designed to meet the requirements for ICF/MR certification.

In late August 1982, School officials began making inquiries regarding ICF/MR [467]*467certification, and had preliminary contacts with the DOH. Sometime in March 1983, Paul Hermanson, the School’s accountant, obtained the necessary application form. He believed that the School was required to submit it for DHS. approval so that the School could be certified as an ICF/MR. He telephoned DHS several times in April 1983; each time he was told he would have to speak to Ardo Wrobel, the director of the mental retardation program division. Wrobel was sick from the end of March through April 21, 1983. On April 22, 1983, Wrobel returned Hermanson’s call, and a meeting was scheduled for April 27 to discuss the School’s application for certification as an ICF/MR.

On April 27, School representatives met with DHS personnel. The School’s application was filed with the Department at that time. The application was accompanied by a November 9, 1982 letter to the School on behalf of the county board, reiterating the County’s support for the building program and expressing the Board’s hope that “the necessary requirements for Title XIX eligibility are being made.”

On February 11, 1983, the Legislative Auditor’s office issued an evaluation of community residential programs for mentally retarded persons, and recommended that alternatives to ICF/MRs be made available and used, and that development of new ICF/MRs be limited. On February 14, 1983, a bill, which DHS helped draft, called for a moratorium on the licensure of new intermediate care beds and a statewide limitation on certified ICF/MRs. In late February or early March 1983, the Department adopted an internal administrative moratorium on the approval of additional ICF/MR beds. The moratorium was not promulgated as a rule. After the moratorium was adopted, no applications for need determinations were approved and none were recommended for approval.

However, DHS continued to process applications for need determinations. In anticipation of legislative action, the mental retardation program division and the TriDivisional (3-D) Committee, which reviews applications for need determinations, delayed final action on completed applications for 30 days to determine whether the legislation passed during the interim. A 30-day time limit was used for applications from existing facilities because DHS had a duty, under existing rules, to consider applications from new, unlicensed facilities within a 30-day period. At the expiration of the 30-day period, applications were denied on the basis of the administrative moratorium if DHS’s legislation had not yet been considered by the legislature.

On April 29, 1983, the 3-D Committee discussed the School’s application. The committee agreed that the building improvements made by the School should be approved for purposes of Minn.R. 9525.-0230 but, notwithstanding Rice County’s letter of November 9 supporting the application, directed that the application be returned to Rice County for comment on the School’s ICF/MR certification; the members agreed that no other action on the ICF/MR certification should be taken at that time. Almost two weeks later, on May 12, 1983, a letter was sent to the County requesting comment on the certification.

On May 12, 1983, the 3-D Committee held its next regularly scheduled meeting. At that meeting, the committee recommended approval of the School’s buildings, but not its certification as an ICF/MR facility. On May 19, 1983, the committee received a reply letter from the county supporting the School’s application for ICF/MR certification. On May 26, 1983, the 3-D Committee held its next regularly scheduled meeting. While no further action was required by the School, the Committee determined that no immediate action was required on the School’s application, and none was recommended. It delayed acting because it claimed its informal 30-day period for final action had not yet run; the DHS staff felt it would be imprudent to approve new ICF/MR beds during the 30-day period because of the Department’s pending legislation and its conclusion that [468]*468only 7,500 certified ICF/MR beds were needed in the state.

On June 10, 1983, a statutory moratorium on the approval of new intermediate care facilities and capacity increases in existing facilities went into effect. On July 1, 1983, a statutory limitation on certified ICF/MR beds also became operative. It limited the total number of certified ICF/MR beds in the state to 7,500.

On September 2, 1983, the 3-D Committee recommended that the School’s application for an ICF/MR determination of need not be granted because of the statutory moratorium on new ICF/MRs and limitations on the number of certified ICF/MRs. On September 21, 1983, the board and the School were notified that the School’s application for a change to an ICF/MR classification was denied, but that its program was approved.

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Related

Laura Baker School Ass'n v. Department of Human Services
393 N.W.2d 364 (Supreme Court of Minnesota, 1986)

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Bluebook (online)
377 N.W.2d 465, 1985 Minn. App. LEXIS 4630, 29 Educ. L. Rep. 362, Counsel Stack Legal Research, https://law.counselstack.com/opinion/contested-case-of-laura-baker-school-assn-v-department-of-human-services-minnctapp-1985.