Subd. 1. Record retention; license holder requirements.

1. (a) A license holder must maintain and store records in a manner that will allow for review by the commissioner as identified in section 142B.10, subdivision 5. The following records must be maintained as specified and in accordance with applicable state or federal law, regulation, or rule:

   1. (1) service recipient records, including verification of service delivery, must be maintained for a minimum of five years following discharge or termination of service;
   2. (2) personnel records must be maintained for a minimum of five years following termination of employment; and
   3. (3) program administration and financial records must be maintained for a minimum of five years from the date the program closes.
2. (b) A license holder who ceases to provide services must maintain all records related to the licensed program for five years from the date the program closes. The license holder must notify the commissioner of the location where the licensing records will be stored and the name of the person responsible for maintaining the stored records.
3. (c) If the ownership of a licensed program or service changes, the transferor, unless otherwise provided by law or written agreement with the transferee, is responsible for maintaining, preserving, and making available to the commissioner on demand the license records generated before the date of the transfer.
4. (d) In the event of a contested case, the license holder must retain records as required in paragraph (a) or until the final agency decision is issued and the conclusion of any related appeal, whichever period is longer.

Subd. 2. Electronic records; license holder use.

A license holder's use of electronic record keeping or electronic signatures must meet the following requirements:

1. (1) use of electronic record keeping or electronic signatures does not alter the license holder's obligations under state or federal law, regulation, or rule;
2. (2) the license holder must ensure that the use of electronic record keeping does not limit the commissioner's access to records as specified under section 142B.10, subdivision 5;
3. (3) upon request, the license holder must assist the commissioner in accessing and copying all records, including encrypted records and electronic signatures; and

4. (4) the license holder must establish a mechanism or procedure to ensure that:

   1. (i) the act of creating the electronic record or signature is attributable to the license holder, according to section 325L.09;
   2. (ii) the electronic records and signatures are maintained in a form capable of being retained and accurately reproduced;
   3. (iii) the commissioner has access to information that establishes the date and time that data and signatures were entered into the electronic record; and
   4. (iv) the license holder's use of electronic record keeping or electronic signatures does not compromise the security of the records.

Subd. 3. First date of direct contact; documentation requirements.

Except for family child care and family foster care for children, license holders must document the first date that a background study subject has direct contact, as defined in section 245C.02, subdivision 11, with a person served by the license holder's program. Unless this chapter otherwise requires, if the license holder does not maintain the documentation required by this subdivision in the license holder's personnel files, the license holder must provide the documentation to the commissioner upon the commissioner's request.