Minnesota

NOTICE: After an administrative review, the original determination that the facility was responsible for failing to report maltreatment was rescinded and the order was updated to rescind the failure to report maltreatment determination and associated $200 fine. The original document, dated April 28, 2026, should be destroyed.

Katie Perzel, Authorized Agent

Bar None Residential Services

7625 Metro Blvd Suit 200

Minneapolis, MN 55439-3057

DATE ISSUED: April 28, 2026

DATE REISSUED: October 5, 2026

License Number 1036848 (Children’s Residential Facility)

Report Number 202600402

DETERMINATION OF MALTREATMENT

AND ORDER TO PAY A FINE

Dear Katie Perzel:

The Department of Human Services (DHS) determined that Bar None Residential Services, located at 22426 Saint Francis Blvd, Anoka, MN, 55303, is responsible for maltreatment by neglect. Based on this determination, DHS is ordering you to pay a fine of $1000. Details of our findings are provided below and in the enclosed Investigation Memorandum for report 202600402. Our next steps and your options are also detailed.

I. Determination of Maltreatment

It was reported that a staff person (SP) digitally penetrated and kissed a 13-year-old alleged victim (AV), allowed the AV to use his/her personal cell phone to watch pornography and interact with strangers online, and provided him/her a vape that contained THC. It was also alleged that staff persons and the facility failed to report the maltreatment as required.

DHS investigated the report as alleged maltreatment by sexual abuse and neglect. Maltreatment was determined as to sexual abuse and neglect of the the AV by the SP and neglect of the AV by four staff persons and the facility.

Based on the maltreatment investigation, DHS determined that Bar None Residential Services was responsible for neglect of the AV. See the enclosed Investigation Memorandum for more information.

Legal Authority: Minnesota Statutes, section 260E.30, subdivision 2, paragraph (a).

Fine: $1,000

II. Order to Pay a Fine

Because DHS determined that Bar None Residential Services is responsible for maltreatment by neglect, you must pay a $1000 fine.

Legal Authority: Minnesota Statutes, section 245A.07, subdivision 3, paragraph (c), subparagraph (4).

III. Billing and Payment of the Fine

DHS will send you an invoice for the $1000 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 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.

IV. YOUR RIGHT TO APPEAL

On May 15, 2026, you appealed the maltreatment determination and fine and requested a contested case hearing and reconsideration. The appeal is ongoing and you do not need to submit a new appeal. After this hearing, the Commissioner of DHS will issue a final order.

Legal authority for this licensing action

· This action is taken under Minnesota Statutes, section 245A.07, subdivision 1, paragraph (a), which describes under which conditions DHS may impose a fine against a license.

· Minnesota Statutes, section 245A.07, subdivision 3, paragraph (c), clause (4), item (i) provides that DHS may impose a $1000 fine for each determination of maltreatment of a child under section 260E for which the license holder is determined responsible.

· In determining whether the facility, an individual, or both are responsible for substantiated maltreatment, DHS must consider the mitigating factors provided in Minnesota Statutes, section 260E.30, subdivision 4, paragraph (a), clauses (1) and (2).

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

· 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.

· License holders have a right to request reconsideration of a maltreatment determination, under Minnesota Statutes, section 260E.33, subdivision 2, paragraph (a) and (b).

· Minnesota Statutes, section 245A.04, subdivision 7, paragraph (d), clause (4), states that DHS shall not issue or reissue a license if the applicant, license holder, or controlling individual has an outstanding debt related to a license fee, licensing fine, or settlement agreement for which payment is delinquent.

· Minnesota Statutes, section 245A.07, subdivision 3, paragraph (c), clause (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.

Questions

If you have any further questions regarding this matter, you may contact Tessa Ripka, Unit Supervisor, at 651-308-2314.

Sincerely,

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AI-generated content may be incorrect.

Maggie Hanson, Intake and Investigations Unit Manager

Office of Inspector General

Licensing Division

Enclosure


PO Box 64242 • Saint Paul, Minnesota • 55164-0242 • An Equal Opportunity and Veteran Friendly Employer

https://mn.gov/dhs/general-public/licensing/