Minnesota

July 16, 2025 CERTIFIED MAIL

Sarah Opitz, Authorized Agent

The Lotus Center Inc

1401 8th St S, Ste 3

Moorhead, MN 56560

License Number 1090378 (245G)

ORDER TO PAY A FINE FOR

BACKGROUND STUDY VIOLATIONS

Dear Sarah Opitz:

The Department of Human Services (DHS) is ordering you to pay a fine of $800 for three background study violations. Details of our findings are provided below. Our next steps and your options are also detailed.

Reason for the Fine

DHS is issuing this fine order based on your failure to comply with the following background study requirements:

Background Study Violation Determined on April 23, 2025:

1. On April 23, 2025, a DHS licensor determined that the license holder did not initiate a background study on three staff persons (SP1, SP2, and SP3) before they began positions allowing direct contact with persons served by the program.

· SP1 began working in a position allowing direct contact with persons served by the program on June 20, 2023; however, the license holder did not initiate a background study to DHS until October 23, 2023.

Under Minnesota Statutes, section 245A.07, subdivision 3, paragraph (d), the Commissioner shall not issue a fine to a license holder who self-corrects a background study violation before the Commissioner discovers the violation. A license holder who has previously exercised the provision of paragraph (d) to avoid a fine for a background study violation may not avoid a fine for a subsequent background study violation unless at least 365 days have passed since the license holder self-corrected the earlier background study violation.

Because the license holder self-corrected the background study violation involving SP1 before the Commissioner discovered the violation, the license holder is not being fined for the background study violation involving SP1.

· SP2 began working in a position allowing direct contact with persons served by the program on July 19, 2023; however, the license holder did not initiate a background study to DHS until November 13, 2023.

Although the license holder self-corrected the background study violation involving SP2 on November 13, 2023, at least 365 days had not passed since the license holder previously self-corrected the background study for SP1 on October 23, 2023. Therefore, the license holder is being fined for the background study violation involving SP2.

· SP3 began working in a position allowing direct contact with persons served by the program on February 8, 2023; however, the license holder did not initiate a background study to DHS until April 17, 2025.

Although the license holder self-corrected the background study violation involving SP3 on April 17, 2025, the background study violation was self-corrected after a DHS licensor notified you of the licensing review that was conducted on April 23, 2025. Therefore, the license holder is being fined or the background study violation involving SP3.

Statute Violated: Minnesota Statutes, section 245C.04, subdivision 1, paragraph (g).

Fine: $400 (three background study violations – two fineable violations at $200 per violation)

Corrective Action Ordered: You must comply with background study requirements in Minnesota Statutes, chapter 245C. Within 10 days from receipt of this order, submit written documentation to your licensor detailing how compliance will be maintained in the future.

2. As the result of a licensing review conducted on April 23, 2025, a DHS licensor determined that you did not remove a disqualified individual (SP1) from direct contact with people served by your program after receiving notice of your obligation to do so from DHS.

On November 1, 2023, DHS instructed the license holder to immediately remove SP1 from any position allowing direct contact with, or access to, persons receiving services. During the licensing review on April 23, 2025, the DHS licensor determined that the license holder allowed SP1 to continue to provide direct contact services on and after notification from DHS to immediately remove SP1.

The failure to comply with an order from the Commissioner to immediately remove a disqualified individual from a position of direct contact is a violation of background study requirements.

Statute Violated: Minnesota Statutes, section 245C.18.

Fine: $200 (one fineable violation at $200 per violation)

Background Study Violation Determined on April 24, 2025:

3. As the result of a licensing review on April 24, 2025, a DHS licensor determined that the license holder did not initiate a background study on one staff person (SP4) before they became a controlling individual.

SP4 was hired and began working in a controlling individual position on February 12, 2025. At the time of the licensing review on April 24, 2025, the license holder had not submitted a background study request to DHS for SP4.

The failure to initiate background study requests on staff persons before they begin positions as controlling individuals is a violation of background study requirements.

Statute Violated: Minnesota Statutes, section 245C.04, subdivision 1.

Fine: $200 (one violation at $200 per violation)

Corrective Action Required: Minnesota Statutes, section 245C.04, subdivision 1. Within 10 days of receipt of this order, submit written documentation that you affiliated SP1 with your NetStudy 2.0 roster.

Billing and Payment of the Fine

DHS will send you an invoice for the $800 fine. Payment must be made as directed on the invoice.

If you request a contested case hearing, as described below, do not pay the fine at this time. Following the contested case hearing, the Commissioner of DHS will issue a final order on this matter.

Please note, you may not avoid payment of this fine by closing, selling, or otherwise transferring the license to a third party. If this occurs, each controlling individual is personally and jointly responsible for payment. If you do not pay the fine on or before the date specified on the invoice and you did not request a contested case hearing, as described below, the Commissioner may issue a second fine, may not issue or reissue a license, or may suspend the license until the license holder pays the fine.

Your Right to Appeal

You have the right to appeal the fine. Your request must be in writing and clearly state that you are requesting a contested case hearing for this matter. Your request must be made before the deadlines provided below. If you do not meet this deadline, you lose your right to an administrative appeal. The timeline to appeal began when you received this order.

If you are mailing your request, it must be sent by certified mail and postmarked within 10 calendar days from when you receive this order. Please send it to:

Commissioner, Department of Human Services

Office of Inspector General

Legal Counsel’s Office

Attn: Licensing Legal Unit

PO Box 64953

St. Paul, MN 55164-0953

If your request is being personally delivered, it must be received by DHS within 10 calendar days from when you receive this order. Please bring it to:

Commissioner, Department of Human Services

Office of Inspector General

Legal Counsel’s Office

Attn: Licensing Legal Unit

444 Lafayette Road North

St. Paul, MN 55155

Upon DHS’ receipt of your timely appeal, your case would be scheduled for a contested case hearing in front of an Administrative Law Judge. Following this hearing, the Commissioner of DHS will issue a final order.

Legal representation at the contested case hearing

You do not need a lawyer to appeal. However, a lawyer can help you with your appeal. The state or county will not get you a lawyer and will not pay for a lawyer. If you cannot afford a lawyer, you may be able to get free legal advice or help with your appeal. To find out if free help is available, contact: Volunteer Lawyers Network at 612-752-6677; Central Minnesota Legal Services at 612-332-8151; Southern Minnesota Legal Services at 651-222-4731; or go to www.lawhelpmn.org to find a local legal services program that may be able to help you.

You can also find information on contested cases from the Office of Administrative Hearings website at https://mn.gov/oah/self-help. Click on Administrative Law Overview, then click on Administrative Law Contested Case Hearing Guide for a list of frequently asked questions.

Legal Authority for this Licensing Action

· DHS may impose a $200 fine for each background study violation under Minnesota Statutes, section 245A.07, subdivision 3, paragraph (c)(4)(iv).

· The exception that allows a license holder who self-corrects a background study violation to avoid a fine does not apply when the license holder was cited for the same violation within the past 365 days, under Minnesota Statutes, section 245A.07, subdivision 3, paragraph (d).

· Minnesota Statutes, section 245A.07, subdivision 3, paragraph (c)(5) states that license holders may not avoid payment of a fine by closing, selling, or transferring a license.

· Minnesota Statutes, section 245A.07, subdivision 3, paragraph (c)(2), states that that the license holder shall pay the fine assessed on or before the payment date specified, and if the license holder does not do so the commissioner may issue a second fine or suspend the license until the license holder complies.

· License holders have a right to appeal licensing actions and request a contested case hearing, under Minnesota Statutes, chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612.

· NetStudy 2.0 is defined by Minnesota Statutes, section 245C.02, subdivision 13e.

Questions

If you have any further questions regarding this matter, you may contact Maura McGarry, Supervisor, at 651-431-6671.

Sincerely,

Paula Halverson, Unit Manager

Licensing Division

Office of Inspector General

PO Box 64242 • Saint Paul, Minnesota • 55164-0242 • An Equal Opportunity and Veteran Friendly Employer
https://mn.gov/dhs/general-public/licensing/