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October 2, 2026 CERTIFIED MAIL Phillip Weiss, Authorized Agent Island Recovery Center LLC 6633 N Kendzie Ave, Apt 616 Chicago, IL 60645 License Application Number 1128499 (245G) ORDER OF LICENSE DENIAL Dear Phillip Weiss: The Department of Human Services (DHS) is denying your application for a substance use disorder treatment program license at 227 McKinley Ave, Eveleth, MN 55734. This denial is based on failure to demonstrate competent knowledge of applicable licensing statutes and rules and failure to submit a substantially complete application. Details of our findings are provided below. Our next steps and your options are also detailed. REASON FOR LICENSE DENIAL 1. Failure to submit a substantially complete application You submitted an application for a license to provide substance use disorder treatment services at 227 McKinley Ave, Eveleth, MN 55734. A DHS licensor reviewed your full policy and procedure manual and determined that the manual was substantially incomplete. A DHS licensor reached out to you via email to schedule a virtual feedback meeting on January 27, March 27, May 12, and June 26, 2026. You did not respond to the requests for a meeting. On February 18, 2026 and April 9, 2026 DHS sent you a Notice of Incomplete Application, notifying you that your application was incomplete and that you had 45 days to submit additional information. Both notices were returned without delivery. On March 27, May 12, and June 26, 2026, DHS emailed you a Notice of Incomplete Application, notifying you that your application was incomplete and that you had 45 days to submit additional information. You did not respond to these emails, however a delivery receipt indicated the notice was delivered on June 26, 2026. The Notice of Incomplete Application indicated your application continued to be substantially incomplete in the following ways: · You failed to submit a policy and procedure manual that met all applicable requirements. The following policies and procedures were not in compliance with 245G requirements: o Service initiation: Missing policies the comply with Code of Federal Regulations, title 45, part 96.131 and titles of staff members authorized to initiate services for clients. o Service termination: Missing requirements for a service termination for a client who poses a substantial likelihood of harm to the client or others, a service termination and denial of service initiation that poses an immediate threat or requires immediate medical intervention, a service termination that involves the commission of a crime, a staff-member requested termination, a service termination for not reaching treatment plan goals, procedures that staff members must follow when a client admitted under Minnesota Statutes, chapter 254B is to have services terminated, procedures when a client leaves against staff or medical advice, a procedure for communicating staff-approved service termination criteria to the client, and titles of staff members authorized to terminate services. o Grievance procedure: Missing/incorrect contact information for the Department of Human Services Licensing Division, The Office of Ombudsman for Mental Health and Developmental Disabilities, The Department of Health Facilities Complaints, and the Minnesota Board of Behavioral Health and Therapy, and the requirements that he license holder responds to the client grievance within 3 days. o Medical services including: § Administration of medication and assistance with self-administration: Missing a provision on delegation of administration of medication requirements, self-administration of medication, and guidelines for when to inform a nurse of problems with self-administration of medication. § Control of drugs: Incorrect information on storage of a Schedule II drug, missing a documentation system for schedule III-V drugs, missing a procedure for recording the client’s use of medication including signatures, missing a statement that no legend drug supply for one client shall be given to another client, and missing a procedure for monitoring, replenishing and destroying naloxone. § Procedures for assessing and monitoring a clients health: Missing inclusion of a standardized data collection tool approved by a registered nurse. o Behavioral emergency policy and procedure: Missing staff members authorized to implement procedures. o Maltreatment of vulnerable adults reporting policy: Must allow but not mandate an internal report, identify the primary and secondary persons to whom and internal report may be made and who is responsible for forwarding reports to common entry point, indicate when the secondary person must be involved, and establish and maintain policies and procedures for an internal review and corrective action. o Personnel policies including: § Disciplinary procedures: Missing a description of behavior that constitutes ground for disciplinary action. § Orientation: Inaccurate timelines, missing orientation to client needs. § Staff development: Listed staff qualifications for not match statute requirements. o Comprehensive assessment and discharge summary guidelines: Contains inaccurate timelines. o Client record requirements: Contains incomplete requirements. · You failed to include the following items in the policies and procedures manual: o Client rights policy o Photographs of clients policy o Description of treatment services o Client attendance policy o Medical services policies including: § Description of health care services § Procedures for obtaining medical intervention § Emergency overdose treatment policy § Tuberculosis and tuberculosis screening policy § HIV minimum standards o Program abuse prevention plan o Maltreatment of minors reporting policy o Personnel policies including: § Job descriptions § Policies prohibiting client abuse § Organizational structure § Drug and alcohol policy o Plan for reporting a client death o Plan for transfer of clients and records upon closure Legal Authority: 245A.05, subdivision (a)(1). 2. Failure to demonstrate competent knowledge of applicable licensing statutes and rules You were not able to submit a substantially complete application and did not respond to DHS meeting requests to offer assistance. The DHS website where you found the online application provides the application process and hyperlinks to the Minnesota statutes applicable to substance use disorder treatment programs. A DHS licensor also provided you with written feedback on the policies and procedures manual you submitted with your application. Despite these resources, you did not submit policies and procedures that met statute requirements. Your inability to follow the laws and rules during the application process make it less likely you will be able to do so when operating a substance use disorder treatment program. Legal Authority: Minnesota Statutes, sections 245A.04, subdivision 6(a)(5); and 245A.05, subdivision (a)(8). 3. Commissioner’s evaluation of program Before issuing, denying, suspending, revoking, or making conditional a license, the commissioner shall evaluate information gathered under Minnesota Statutes, section 245A.04, subdivision 6. The commissioner’s evaluation shall consider the applicable requirements of statutes and rules for the program or services for which the applicant seeks a license including disqualification standards set forth in chapter 245C. The commissioner shall evaluate facts, conditions, or circumstances concerning the programs operation; the well-being of persons served; available evaluations of the program by persons receiving services; the qualifications of personnel employed by the applicant; and applicant’s ability to demonstrate competent knowledge of applicable statutes and rules. Your inability to submit a complete application in 45 days after receiving information from DHS calls into question your ability to follow the applicable laws and rules; to be able to operate a program; and to ensure the well-being of persons served. DHS has determined that the denial of your license is appropriate based on the violations identified above and the program evaluation. Legal Authority: Minnesota Statutes, section 245A.04, subdivision 6. YOUR RIGHT TO APPEAL You have the right to appeal the denial. 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 20 calendar days from when you received this order. Please send it to: Commissioner, Department of Human Services Office of Inspector General Legal Counsel’s Office Attention: 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 20 calendar days from when you received this order. Please bring it to: Commissioner, Department of Human Services Office of Inspector General Legal Counsel’s Office Attention: 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. If you do not appeal or if the order is affirmed by the Commissioner following a hearing, DHS is prohibited from issuing you and the controlling individuals a license for two years. 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 · This action is taken under Minnesota Statutes, section 245A.05, subdivision (a), which describes under which conditions DHS may deny an application. · “Controlling individual” is defined under Minnesota Statutes, section 245A.02, subdivision 5a. · 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. · Under Minnesota Statutes, section 245A.04, subdivision 7, paragraph (d), clause (2), the commissioner shall not issue or reissue a license if the applicant, license holder, or controlling individual has been denied a license under this chapter within the past two years. Questions If you have any further questions regarding this matter, you may contact Kathryn Schesso, Supervisor, at 651-431-2734. Sincerely,
Katie Leuer, Unit Manager Licensing Division Office of Inspector General
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