SF 7

06/07/25  REVISOR  DTT/RC  25-05696  as introduced
  SENATE
  STATE OF MINNESOTA
  SPECIAL SESSION  S.F. No. 7
       (SENATE AUTHORS: HOFFMAN, Maye Quade, Fateh and Mohamed)
  DATE       D-PG  OFFICIAL STATUS
       06/09/2025       10 Introduction and first reading
  11 Laid on table
  15 Author added Mohamed
1.1A bill for an act
1.2relating to human services; amending provisions on aging and older adult services,
1.3disability services, health care, substance use disorder treatment, Direct Care and
1.4Treatment, early intensive developmental and behavioral intervention program
1.5reform, homelessness, and the Department of Health; making technical and
1.6conforming changes; establishing task forces; requiring reports; making forecast
1.7adjustments; appropriating money; amending Minnesota Statutes 2024, sections
1.8144.0724, subdivision 11, as amended; 144A.01, subdivision 4; 144A.474,
1.9subdivision 11; 144A.4799; 144G.08, subdivision 15; 144G.31, subdivision 8;
1.10      144G.52, subdivisions 1, 2, 3, 8; 144G.54, subdivisions 3, 7; 144G.55, subdivision
1.11      1; 179A.54, by adding a subdivision; 181.213, subdivision 2, by adding
1.12      subdivisions; 245.735, subdivision 3; 245.91, subdivision 4, as amended; 245A.03,
1.13      by adding a subdivision; 245A.04, subdivision 7, as amended; 245A.042, by adding
1.14      subdivisions; 245A.043, by adding a subdivision; 245A.06, subdivisions 1a, 2;
1.15      245A.10, subdivisions 1, 2, 3, 4, 8, by adding subdivisions; 245C.03, subdivisions
1.16      6, 15, by adding a subdivision; 245C.04, subdivision 6, by adding subdivisions;
1.17      245C.10, subdivision 6, by adding a subdivision; 245C.13, subdivision 2; 245C.16,
1.18      subdivision 1; 245D.091, subdivisions 2, as amended, 3, as amended; 245F.08,
1.19      subdivision 3; 245G.01, subdivision 13b, by adding subdivisions; 245G.02,
1.20      subdivision 2; 245G.07, subdivisions 1, 3, 4, by adding subdivisions; 245G.11,
1.21      subdivision 6, by adding a subdivision; 245G.22, subdivisions 11, 15, as amended;
1.22      246.54, subdivisions 1a, 1b; 246C.07, by adding a subdivision; 252.32, subdivision
1.23      3; 253B.10, subdivision 1, as amended; 254A.19, subdivision 4; 254B.01,
1.24      subdivisions 10, 11; 254B.02, subdivision 5; 254B.03, subdivisions 1, 3; 254B.04,
1.25      subdivisions 1a, as amended, 5, 6, 6a; 254B.05, subdivisions 1, as amended, 1a,
1.26      as amended, 5, as amended, by adding a subdivision; 254B.052, by adding a
1.27      subdivision; 254B.09, subdivision 2; 254B.19, subdivision 1; 256.01, by adding
1.28      a subdivision; 256.043, subdivision 3; 256.476, subdivision 4; 256.4792; 256.9657,
1.29      subdivision 1; 256.9752, subdivisions 2, 3; 256B.04, subdivision 21; 256B.051,
1.30      subdivisions 2, 5, 6, 8, by adding subdivisions; 256B.0625, subdivision 5m, as
1.31      amended; 256B.0659, subdivision 17a; 256B.0701, subdivisions 1, 2, by adding
1.32      subdivisions; 256B.0757, subdivision 4c; 256B.0911, subdivisions 1, 10, 13, 14,
1.33      17, 24, 30, by adding subdivisions; 256B.092, subdivisions 1a, as amended, 3, by
1.34      adding a subdivision; 256B.0924, subdivision 6; 256B.0949, subdivisions 2, 13,
1.35      15, 16, 16a, by adding a subdivision; 256B.431, subdivision 30; 256B.434,
1.36      subdivisions 4, 4k; 256B.49, subdivisions 13, as amended, 18, by adding a
1.37      subdivision; 256B.4914, subdivisions 3, 5, 5a, 5b, 8, 9, by adding subdivisions;
1.38      256B.761; 256B.766; 256B.85, subdivisions 2, 5, 7, 7a, 8, 8a, 11, 13, 16, 17a, by
1
       06/07/25  REVISOR      DTT/RC  25-05696  as introduced
2.1adding a subdivision; 256B.851, subdivisions 5, 6, 7, by adding subdivisions;
2.2256G.08, subdivisions 1, 2; 256G.09, subdivisions 1, 2, as amended; 256I.04,
2.3subdivision 2a; 256I.05, by adding subdivisions; 256R.02, by adding subdivisions;
2.4256R.23, subdivisions 7, 8; 256R.24, subdivision 3; 256R.25, as amended; 256R.26,
2.5subdivision 9; 256R.27, subdivisions 2, 3; 256R.41; 256R.43; 256S.205,
2.6subdivisions 2, 3, 5, 7, by adding subdivisions; 260E.14, subdivision 1, as amended;
2.7325F.725; 611.43, by adding a subdivision; 626.5572, subdivision 13; Laws 2021,
2.8First Special Session chapter 7, article 13, section 73; Laws 2023, chapter 61,
2.9article 1, section 61, subdivision 4; article 9, section 2, subdivisions 13, 14, as
2.10      amended, 16, as amended, 17, 18, as amended; Laws 2024, chapter 125, article 4,
2.11      section 9, subdivisions 1, 8, 9, by adding a subdivision; article 6, section 1,
2.12      subdivision 7; article 8, section 2, subdivisions 12, 13, 14, 15, 19; proposing coding
2.13      for new law in Minnesota Statutes, chapters 145D; 245A; 245D; 254B; 256B;
2.14      256R; repealing Minnesota Statutes 2024, sections 245C.03, subdivision 13;
2.15      245C.10, subdivision 16; 245G.01, subdivision 20d; 245G.07, subdivision 2;
2.16      254B.01, subdivision 5; 254B.04, subdivision 2a; 254B.181; 256B.0949,
2.17      subdivision 9; 256R.02, subdivision 38; 256R.12, subdivision 10; 256R.23,
2.18      subdivision 6; 256R.36; Laws 2021, First Special Session chapter 7, article 13,
2.19      section 75, subdivisions 3, as amended, 6, as amended; Laws 2023, chapter 59,
2.20      article 3, section 11; Laws 2024, chapter 127, article 46, section 39.
2.21 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
2.22ARTICLE 1
2.23AGING AND OLDER ADULT SERVICES
2.24   Section 1. Minnesota Statutes 2024, section 181.213, subdivision 2, is amended to read:
2.25     Subd. 2. Investigation of market conditions. (a) The board must investigate market
2.26 conditions and the existing wages, benefits, and working conditions of nursing home workers
2.27 for specific geographic areas of the state and specific nursing home occupations. Based on
2.28 this information, the board must seek to adopt minimum nursing home employment standards
2.29 that meet or exceed existing industry conditions for a majority of nursing home workers in
2.30 the relevant geographic area and nursing home occupation. Except for standards exceeding
2.31 the threshold determined in paragraph (d), initial employment standards established by the
2.32 board are effective beginning January 1, 2025, and shall remain in effect until any subsequent
2.33 standards are adopted by rules.
2.34     (b) The board must consider the following types of information in making determinations
2.35 that employment standards are reasonably necessary to protect the health and welfare of
2.36 nursing home workers:
2.37     (1) wage rate and benefit data collected by or submitted to the board for nursing home
2.38 workers in the relevant geographic area and nursing home occupations;
2.39     (2) statements showing wage rates and benefits paid to nursing home workers in the
2.40 relevant geographic area and nursing home occupations;
       Article 1 Section 1.  2
       06/07/25  REVISOR     DTT/RC  25-05696  as introduced
3.1      (3) signed collective bargaining agreements applicable to nursing home workers in the
3.2  relevant geographic area and nursing home occupations;
3.3      (4) testimony and information from current and former nursing home workers, worker
3.4  organizations, nursing home employers, and employer organizations;
3.5      (5) local minimum nursing home employment standards;
3.6      (6) information submitted by or obtained from state and local government entities; and
3.7      (7) any other information pertinent to establishing minimum nursing home employment
3.8  standards.
3.9      (c) In considering wage and benefit increases, the board must determine the impact of
3.10 the proposed standards on nursing home operating payment rates determined pursuant to
3.11 section 256R.21, subdivision 3, and the employee benefits portion of the external fixed
3.12 costs payment rate determined pursuant to section 256R.25. If the board, in consultation
3.13 with the commissioner of human services, determines the operating payment rate and
3.14 employee benefits portion of the external fixed costs payment rate will increase to comply
3.15 with the new employment standards, the board shall report to the legislature the increase in
3.16 funding needed to increase payment rates to comply with the new employment standards
3.17 and must make implementation of any new nursing home employment standards contingent
3.18 upon an appropriation, as determined by sections 256R.21 and 256R.25, to fund the rate
3.19 increase necessary to comply with the new employment standards.
3.20     (d) In evaluating the impact of the employment standards on payment rates determined
3.21 by sections 256R.21 and 256R.25, the board, in consultation with the commissioner of
3.22 human services, must consider the following:
3.23     (1) the statewide average wage rates for employees pursuant to section 256R.10,
3.24 subdivision 5, and benefit rates pursuant to section 256R.02, subdivisions 18 and 22, as
3.25 determined by the annual Medicaid cost report used to determine the operating payment
3.26 rate and the employee benefits portion of the external fixed costs payment rate for the first
3.27 day of the calendar year immediately following the date the board has established minimum
3.28 wage and benefit levels;
3.29     (2) compare the results of clause (1) to the operating payment rate and employee benefits
3.30 portion of the external fixed costs payment rate increase for the first day of the second
3.31 calendar year after the adoption of any nursing home employment standards included in the
3.32 most recent budget and economic forecast completed under section 16A.103; and
       Article 1 Section 1.  3
       06/07/25  REVISOR  DTT/RC  25-05696  as introduced
4.1      (3) if the established nursing home employment standards result in an increase in costs
4.2  that exceed the operating payment rate and external fixed costs payment rate increase
4.3  included in the most recent budget and economic forecast completed under section 16A.103,
4.4  effective on the proposed implementation date of the new nursing home employment
4.5  standards, the board must determine if the rates will need to be increased to meet the new
4.6  employment standards and the standards must not be effective until an appropriation sufficient
4.7  to cover the rate increase and federal approval of the rate increase is obtained.
4.8      (e) The budget and economic forecasts completed under section 16A.103 shall not
4.9  assume an increase in payment rates determined under chapter 256R resulting from the new
4.10 employment standards until the board certifies the rates will need to be increased and the
4.11 legislature appropriates funding for the increase in payment rates.
4.12   Sec. 2. Minnesota Statutes 2024, section 181.213, is amended by adding a subdivision to
4.13 read:
4.14     Subd. 2a. Effective dates of new employment standards. (a) New employment standards
4.15 that do not meet the threshold determined in subdivision 2, paragraph (c) or (d), are effective
4.16 on the date determined by the board in rules.
4.17     (b) New employment standards that exceed the threshold determined in subdivision 2,
4.18 paragraph (c) or (d), are effective upon federal approval or the following date, whichever
4.19 is later:
4.20     (1) if subdivision 2b is in effect, the date the applicable rate adjustment under section
4.21 256R.495 is effective; or
4.22     (2) if subdivision 2b is not in effect, the effective date of an enacted appropriation
4.23 sufficient to cover the rate increase.
4.24   Sec. 3. Minnesota Statutes 2024, section 181.213, is amended by adding a subdivision to
4.25 read:
4.26     Subd. 2b. Implementation of rate increases. (a) This paragraph is effective only for
4.27 those rate years, as defined in section 256R.02, during which both the CPI-U inflation limits
4.28 and the percentage increase limits under sections 256R.23, subdivisions 7 and 8, and 256R.24,
4.29 subdivision 3, are in effect.
4.30     (b) For an increase in rates the board has determined under subdivision 2, paragraph (c)
4.31 or (d), is needed to cover the increased cost of compliance with new nursing home
       Article 1 Sec. 3.  4
       06/07/25  REVISOR  DTT/RC  25-05696  as introduced
5.1  employment standards, the appropriation sufficient to cover the rate increase must be made
5.2  in the form of a rate adjustment under section 256R.495.
5.3    Sec. 4. Minnesota Statutes 2024, section 256.4792, is amended to read:
5.4      256.4792 LONG-TERM SERVICES AND SUPPORTS LOAN PROGRAM.
5.5      Subdivision 1. Long-term services and supports loan program. The commissioner
5.6  of human services shall establish a competitive loan program to provide operating loans to
5.7  eligible long-term services and supports providers and facilities. The commissioner shall
5.8  initiate the application process for the loan described in this section at least once annually
5.9  if money is available. A second application process may be initiated each year at the
5.10 discretion of the commissioner on an ongoing basis.
5.11     Subd. 2. Eligibility. To be an eligible applicant for a loan under this section, a provider
5.12 must submit to the commissioner of human services a loan application in the form and
5.13 according to the timelines established by the commissioner. In its loan application, a loan
5.14 applicant must demonstrate the following:
5.15     (1) for nursing facilities with a medical assistance provider agreement that are licensed
5.16 as a nursing home or boarding care home according to section 256R.02, subdivision 33:
5.17     (i) the total net income of the nursing facility is not generating sufficient revenue to
5.18 cover the nursing facility's operating expenses;
5.19     (ii) the nursing facility is at risk of closure; and
5.20     (iii) additional operating revenue is necessary to either preserve access to nursing facility
5.21 services within the community or support people with complex, high-acuity support needs;
5.22 and
5.23     (2) for other long-term services and supports providers:
5.24     (i) demonstration (1) that the provider is enrolled in a Minnesota health care program
5.25 and provides one or more of the following services in a Minnesota health care program:
5.26     (A) (i) home and community-based services under chapter 245D;
5.27     (B) (ii) personal care assistance services under section 256B.0659;
5.28     (C) (iii) community first services and supports under section 256B.85;
5.29     (D) (iv) early intensive developmental and behavioral intervention services under section
5.30 256B.0949;
       Article 1 Sec. 4.  5
       06/07/25  REVISOR  DTT/RC  25-05696  as introduced
6.1      (E) (v) home care services as defined under section 256B.0651, subdivision 1, paragraph
6.2  (d); or
6.3      (F) (vi) customized living services as defined in section 256S.02; and
6.4      (ii) (2) additional operating revenue is necessary to preserve access to services within
6.5  the community, expand services to people within the community, expand services to new
6.6  communities, or support people with complex, high-acuity support needs.
6.7      Subd. 2a. Allowable uses of loan money. (a) A loan awarded to a nursing facility under
6.8  subdivision 2, clause (1), must only be used to cover the facility's short-term operating
6.9  expenses. Nursing facilities receiving loans must not use the loan proceeds to pay related
6.10 organizations as defined in section 256R.02, subdivision 43.
6.11     (b) A loan awarded to a long-term services and supports provider under subdivision 2,
6.12 clause (2), must only be used to cover expenses related to achieving outcomes identified in
6.13 subdivision 2, clause (2), item (ii).
6.14     Subd. 3. Approving loans. The commissioner must evaluate all loan applications on a
6.15 competitive basis and award loans to successful applicants within available appropriations
6.16 for this purpose. The commissioner's decisions are final and not subject to appeal.
6.17     Subd. 4. Disbursement schedule. Successful loan applicants under this section may
6.18 receive loan disbursements as a lump sum or on an agreed upon disbursement schedule.
6.19 The commissioner shall approve disbursements to successful loan applicants through a
6.20 memorandum of understanding. Memoranda of understanding must specify the amount and
6.21 schedule of loan disbursements.
6.22     Subd. 5. Loan administration. The commissioner may contract with an independent
6.23 third party to administer the loan program under this section.
6.24     Subd. 6. Loan payments. The commissioner shall negotiate the terms of the loan
6.25 repayment, including the start of the repayment plan, the due date of the repayment, and
6.26 the frequency of the repayment installments. Repayment installments must not begin until
6.27 at least 18 months after the first disbursement date. The memoranda of understanding must
6.28 specify the amount and schedule of loan payments. The repayment term must not exceed
6.29 72 months. If any loan payment to the commissioner is not paid within the time specified
6.30 by the memoranda of understanding, the late payment must be assessed a penalty rate of
6.31 0.01 percent of the original loan amount each month the payment is past due. For nursing
6.32 facilities, this late fee is not an allowable cost on the department's cost report. The
       Article 1 Sec. 4.  6
       06/07/25  REVISOR  DTT/RC  25-05696  as introduced
7.1  commissioner shall have the power to abate penalties when discrepancies occur resulting
7.2  from but not limited to circumstances of error and mail delivery.
7.3      Subd. 7. Loan repayment. (a) If a borrower is more than 60 calendar days delinquent
7.4  in the timely payment of a contractual payment under this section, the provisions in
7.5  paragraphs (b) to (e) apply.
7.6      (b) The commissioner may withhold some or all of the amount of the delinquent loan
7.7  payment, together with any penalties due and owing on those amounts, from any money
7.8  the department owes to the borrower. The commissioner may, at the commissioner's
7.9  discretion, also withhold future contractual payments from any money the commissioner
7.10 owes the provider as those contractual payments become due and owing. The commissioner
7.11 may continue this withholding until the commissioner determines there is no longer any
7.12 need to do so.
7.13     (c) The commissioner shall give prior notice of the commissioner's intention to withhold
7.14 by mail, facsimile, or email at least ten business days before the date of the first payment
7.15 period for which the withholding begins. The notice must be deemed received as of the date
7.16 of mailing or receipt of the facsimile or electronic notice. The notice must state:
7.17     (1) state the amount of the delinquent contractual payment;
7.18     (2) state the amount of the withholding per payment period;
7.19     (3) state the date on which the withholding is to begin;
7.20     (4) state whether the commissioner intends to withhold future installments of the
7.21 provider's contractual payments; and
7.22     (5) state other contents as the commissioner deems appropriate.
7.23     (d) The commissioner, or the commissioner's designee, may enter into written settlement
7.24 agreements with a provider to resolve disputes and other matters involving unpaid loan
7.25 contractual payments or future loan contractual payments.
7.26     (e) Notwithstanding any law to the contrary, all unpaid loans, plus any accrued penalties,
7.27 are overpayments for the purposes of section 256B.0641, subdivision 1. The current owner
7.28 of a nursing home, boarding care home, or long-term services and supports provider is liable
7.29 for the overpayment amount owed by a former owner for any facility provider sold,
7.30 transferred, or reorganized.
       Article 1 Sec. 4.  7
       06/07/25  REVISOR  DTT/RC  25-05696  as introduced
8.1      Subd. 7a. Nursing home loans. (a) All loans disbursed to nursing facilities under this
8.2  section prior to August 1, 2025, must follow the criteria and repayment terms outlined in
8.3  their executed loan agreements.
8.4      (b) In the event of a facility's closure prior to repayment, the commissioner must attempt
8.5  to recover the unpaid amounts owed by the facility.
8.6      (c) By January 15 of each year, the commissioner must provide a report to the chairs
8.7  and ranking minority members of the legislative committees with jurisdiction over nursing
8.8  facilities of all facilities that are delinquent in their repayments.
8.9      Subd. 8. Audit. Loan money allocated under this section is subject to audit to determine
8.10 whether the money was spent as authorized under this section.
8.11     Subd. 8a. Special revenue account. A long-term services and supports loan account is
8.12 created in the special revenue fund in the state treasury. Money appropriated for the purposes
8.13 of this section must be transferred to the long-term services and supports loan account. All
8.14 payments received under subdivision 6, along with fees, penalties, and interest, must be
8.15 deposited into the special revenue account and are appropriated to the commissioner for the
8.16 purposes of this section.
8.17     Subd. 9. Carryforward. Notwithstanding section 16A.28, subdivision 3, money in the
8.18 long-term services and supports loan account for the purposes under this section carries
8.19 forward and does not lapse.
8.20     EFFECTIVE DATE. This section is effective for memoranda of understanding executed
8.21 on or after August 1, 2025.
8.22   Sec. 5. Minnesota Statutes 2024, section 256.9657, subdivision 1, is amended to read:
8.23     Subdivision 1. Nursing home license surcharge. (a) Effective July 1, 1993, Each
8.24 non-state-operated nursing home licensed under chapter 144A shall pay to the commissioner
8.25 an annual surcharge according to the schedule in subdivision 4. The surcharge shall be
8.26 calculated as $620 $2,815 per licensed bed. If the number of licensed beds is reduced
8.27 changed, the surcharge shall be based on the number of remaining licensed beds the second
8.28 month following the receipt of timely notice by the commissioner of human services that
8.29 beds have been delicensed on the first day of the month following the change in number of
8.30 licensed beds. The nursing home must notify the commissioner of health in writing when
8.31 beds are licensed or delicensed. The commissioner of health must notify the commissioner
8.32 of human services within ten working days after receiving written notification. If the
8.33 notification is received by the commissioner of human services by the 15th of the month,
       Article 1 Sec. 5.  8
       06/07/25  REVISOR  DTT/RC  25-05696  as introduced
9.1  the invoice for the second following month must be reduced to recognize the delicensing
9.2  of beds. Beds on layaway status continue to be subject to the surcharge. The commissioner
9.3  of human services must acknowledge a medical care surcharge appeal within 30 90 days
9.4  of receipt of the written appeal from the provider.
9.5      (b) Effective July 1, 1994, the surcharge in paragraph (a) shall be increased to $625
9.6  January 1, 2026, or the first day of the month following federal approval, whichever is later,
9.7  the surcharge under this subdivision shall be increased to $5,900.
9.8      (c) Effective August 15, 2002, the surcharge under paragraph (b) shall be increased to
9.9  $990.
9.10     (d) Effective July 15, 2003, the surcharge under paragraph (c) shall be increased to
9.11 $2,815.
9.12     (e) (c) The commissioner may reduce, and may subsequently restore, the surcharge under
9.13 paragraph (d) based on the commissioner's determination of a permissible surcharge must
9.14 decrease the amount under this subdivision as necessary to remain under the allowable
9.15 federal tax percent in Code of Federal Regulations, title 42, part 433.
9.16     EFFECTIVE DATE. This section is effective the day following final enactment.
9.17   Sec. 6. Minnesota Statutes 2024, section 256.9752, subdivision 2, is amended to read:
9.18     Subd. 2. Authority. The Minnesota Board on Aging shall allocate to area agencies on
9.19 aging the state and federal funds which are received for the senior nutrition programs of
9.20 congregate dining and home-delivered meals in a manner consistent with federal requirements
9.21 the board's intrastate funding formula.
9.22     EFFECTIVE DATE. This section is effective the day following final enactment.
9.23   Sec. 7. Minnesota Statutes 2024, section 256.9752, subdivision 3, is amended to read:
9.24     Subd. 3. Nutrition support services. (a) Funds allocated to an area agency on aging
9.25 for nutrition support services may be used for the following:
9.26     (1) transportation of home-delivered meals and purchased food and medications to the
9.27 residence of a senior citizen;
9.28     (2) expansion of home-delivered meals into unserved and underserved areas;
9.29     (3) transportation to supermarkets or delivery of groceries from supermarkets to homes;
9.30     (4) vouchers for food purchases at selected restaurants in isolated rural areas;
       Article 1 Sec. 7.  9
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
10.1      (5) the Supplemental Nutrition Assistance Program (SNAP) outreach;
10.2      (6) transportation of seniors to congregate dining sites;
10.3      (7) nutrition screening assessments and counseling as needed by individuals with special
10.4  dietary needs, performed by a licensed dietitian or nutritionist; and
10.5      (8) other appropriate services which support senior nutrition programs, including new
10.6  service delivery models; and
10.7      (9) innovative models of providing healthy and nutritious meals to seniors, including
10.8  through partnerships with schools, restaurants, and other community partners.
10.9      (b) An area agency on aging may transfer unused funding for nutrition support services
10.10 to fund congregate dining services and home-delivered meals.
10.11     (c) State funds under this subdivision are subject to federal requirements in accordance
10.12 with the Minnesota Board on Aging's intrastate funding formula.
10.13   Sec. 8. Minnesota Statutes 2024, section 256B.431, subdivision 30, is amended to read:
10.14     Subd. 30. Bed layaway and delicensure. (a) For rate years beginning on or after July
10.15 1, 2000, a nursing facility reimbursed under this section which has placed beds on layaway
10.16 shall, for purposes of application of the downsizing incentive in subdivision 3a, paragraph
10.17 (c), and calculation of the rental per diem, have those beds given the same effect as if the
10.18 beds had been delicensed so long as the beds remain on layaway. Through December 31,
10.19 2026, at the time of a layaway, a facility may change its single bed election for use in
10.20 calculating capacity days under Minnesota Rules, part 9549.0060, subpart 11. The property
10.21 payment rate increase shall be effective the first day of the month of January or July,
10.22 whichever occurs first following the date on which the layaway of the beds becomes effective
10.23 under section 144A.071, subdivision 4b.
10.24     (b) For rate years beginning on or after July 1, 2000, notwithstanding any provision to
10.25 the contrary under section 256B.434 or chapter 256R, a nursing facility reimbursed under
10.26 that section or chapter that has placed beds on layaway shall, for so long as the beds remain
10.27 on layaway, be allowed to:
10.28     (1) aggregate the applicable investment per bed limits based on the number of beds
10.29 licensed immediately prior to entering the alternative payment system;
10.30     (2) retain or change the facility's single bed election for use in calculating capacity days
10.31 under Minnesota Rules, part 9549.0060, subpart 11. Beginning January 1, 2027, a facility
10.32 is not allowed to change the facility's single bed election; and
Article 1 Sec. 8.  10
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
11.1      (3) establish capacity days based on the number of beds immediately prior to the layaway
11.2  and the number of beds after the layaway.
11.3      The commissioner shall increase the facility's property payment rate by the incremental
11.4  increase in the rental per diem resulting from the recalculation of the facility's rental per
11.5  diem applying only the changes resulting from the layaway of beds and clauses (1), (2), and
11.6  (3). If a facility reimbursed under section 256B.434 or chapter 256R completes a moratorium
11.7  exception project after its base year, the base year property rate shall be the moratorium
11.8  project property rate. The base year rate shall be inflated by the factors in Minnesota Statutes
11.9  2024, section 256B.434, subdivision 4, paragraph (c). The property payment rate increase
11.10 shall be effective the first day of the month of January or July, whichever occurs first
11.11 following the date on which the layaway of the beds becomes effective.
11.12     (c) If a nursing facility removes a bed from layaway status in accordance with section
11.13 144A.071, subdivision 4b, the commissioner shall establish capacity days based on the
11.14 number of licensed and certified beds in the facility not on layaway and shall reduce the
11.15 nursing facility's property payment rate in accordance with paragraph (b).
11.16     (d) For the rate years beginning on or after July 1, 2000, notwithstanding any provision
11.17 to the contrary under section 256B.434 or chapter 256R, a nursing facility reimbursed under
11.18 that section or chapter that has delicensed beds after July 1, 2000, by giving notice of the
11.19 delicensure to the commissioner of health according to the notice requirements in section
11.20 144A.071, subdivision 4b, shall be allowed to:
11.21     (1) aggregate the applicable investment per bed limits based on the number of beds
11.22 licensed immediately prior to entering the alternative payment system;
11.23     (2) retain or change the facility's single bed election for use in calculating capacity days
11.24 under Minnesota Rules, part 9549.0060, subpart 11. Beginning January 1, 2027, a facility
11.25 is not allowed to change the facility's single bed election; and
11.26     (3) establish capacity days based on the number of beds immediately prior to the
11.27 delicensure and the number of beds after the delicensure.
11.28     The commissioner shall increase the facility's property payment rate by the incremental
11.29 increase in the rental per diem resulting from the recalculation of the facility's rental per
11.30 diem applying only the changes resulting from the delicensure of beds and clauses (1), (2),
11.31 and (3). If a facility reimbursed under section 256B.434 completes a moratorium exception
11.32 project after its base year, the base year property rate shall be the moratorium project property
11.33 rate. The base year rate shall be inflated by the factors in Minnesota Statutes 2024, section
11.34 256B.434, subdivision 4, paragraph (c). The property payment rate increase shall be effective
Article 1 Sec. 8.  11
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
12.1  the first day of the month of January or July, whichever occurs first following the date on
12.2  which the delicensure of the beds becomes effective.
12.3      (e) For nursing facilities reimbursed under this section, section 256B.434, or chapter
12.4  256R, any beds placed on layaway shall not be included in calculating facility occupancy
12.5  as it pertains to leave days defined in Minnesota Rules, part 9505.0415.
12.6      (f) For nursing facilities reimbursed under this section, section 256B.434, or chapter
12.7  256R, the rental rate calculated after placing beds on layaway may not be less than the rental
12.8  rate prior to placing beds on layaway.
12.9      (g) A nursing facility receiving a rate adjustment as a result of this section shall comply
12.10 with section 256R.06, subdivision 5.
12.11     (h) A facility that does not utilize the space made available as a result of bed layaway
12.12 or delicensure under this subdivision to reduce the number of beds per room or provide
12.13 more common space for nursing facility uses or perform other activities related to the
12.14 operation of the nursing facility shall have its property rate increase calculated under this
12.15 subdivision reduced by the ratio of the square footage made available that is not used for
12.16 these purposes to the total square footage made available as a result of bed layaway or
12.17 delicensure.
12.18     (i) The commissioner must not adjust the property payment rates under this subdivision
12.19 for beds placed in or removed from layaway on or after January 1, 2027.
12.20     EFFECTIVE DATE. This section is effective July 1, 2025.
12.21   Sec. 9. Minnesota Statutes 2024, section 256B.434, subdivision 4, is amended to read:
12.22     Subd. 4. Alternate rates for nursing facilities. Effective for the rate years beginning
12.23 on and after January 1, 2019 2026, a nursing facility's property payment rate for the second
12.24 and subsequent years of a facility's contract under this section are is the facility's previous
12.25 rate year's property payment rate plus an inflation adjustment. The index for the inflation
12.26 adjustment must be based on the change in the Consumer Price Index-All Items (United
12.27 States City average) (CPI-U) forecasted by the Reports and Forecasts Division of the
12.28 Department of Human Services, as forecasted in the fourth quarter of the calendar year
12.29 preceding the rate year. The inflation adjustment must be based on the 12-month period
12.30 from the midpoint of the previous rate year to the midpoint of the rate year for which the
12.31 rate is being determined.
Article 1 Sec. 9.  12
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
13.1    Sec. 10. Minnesota Statutes 2024, section 256B.434, subdivision 4k, is amended to read:
13.2      Subd. 4k. Property rate increase for certain nursing facilities. (a) A rate increase
13.3  under this subdivision ends upon the effective date of the transition of the facility's property
13.4  rate to a property payment rate under section 256R.26, subdivision 8, or May 31, 2026,
13.5  whichever is earlier.
13.6      (b) The commissioner shall increase the property rate of a nursing facility located in the
13.7  city of St. Paul at 1415 Almond Avenue in Ramsey County by $10.65 on January 1, 2025.
13.8      (c) The commissioner shall increase the property rate of a nursing facility located in the
13.9  city of Duluth at 3111 Church Place in St. Louis County by $20.81 on January 1, 2025.
13.10     (d) The commissioner shall increase the property rate of a nursing facility located in the
13.11 city of Chatfield at 1102 Liberty Street SE in Fillmore County by $21.35 on January 1,
13.12 2025.
13.13     (e) Effective January 1, 2025, through June 30, 2025, the commissioner shall increase
13.14 the property rate of a nursing facility located in the city of Fergus Falls at 1131 South
13.15 Mabelle Avenue in Ottertail County by $38.56.
13.16     EFFECTIVE DATE. This section is effective January 1, 2026.
13.17   Sec. 11. Minnesota Statutes 2024, section 256R.02, is amended by adding a subdivision
13.18 to read:
13.19     Subd. 14a. CPI-U inflation. "CPI-U inflation" means the percentage change in the
13.20 Consumer Price Index-All Items (United States City average) (CPI-U) provided by the
13.21 Reports and Forecasts Division of the Department of Human Services in the fourth quarter
13.22 of the calendar year preceding the rate year based on the 12-month period ending with the
13.23 midpoint of the reporting period for which CPI-U inflation is being applied to determine
13.24 the rates and beginning with the midpoint of the previous reporting period.
13.25     EFFECTIVE DATE. This section is effective the day following final enactment.
13.26   Sec. 12. Minnesota Statutes 2024, section 256R.02, is amended by adding a subdivision
13.27 to read:
13.28     Subd. 36a. Patient driven payment model or PDPM. "Patient driven payment model"
13.29 or "PDPM" has the meaning given in section 144.0724, subdivision 2.
13.30     EFFECTIVE DATE. This section is effective the day following final enactment.
Article 1 Sec. 12.  13
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
14.1    Sec. 13. Minnesota Statutes 2024, section 256R.02, is amended by adding a subdivision
14.2  to read:
14.3      Subd. 45a. Resource utilization group or RUG. "Resource utilization group" or "RUG"
14.4  has the meaning given in section 144.0724, subdivision 2.
14.5      EFFECTIVE DATE. This section is effective the day following final enactment.
14.6    Sec. 14. Minnesota Statutes 2024, section 256R.23, subdivision 7, is amended to read:
14.7      Subd. 7. Determination of direct care payment rates. A facility's direct care payment
14.8  rate equals the lesser of (1) the facility's direct care costs per standardized day, or (2) the
14.9  facility's direct care costs per standardized day divided by its cost to limit ratio, (3) the
14.10 previous year's direct care payment rate times one plus CPI-U inflation, or (4) 104 percent
14.11 of the previous year's direct care payment rate.
14.12     EFFECTIVE DATE. This section is effective January 1, 2026.
14.13   Sec. 15. Minnesota Statutes 2024, section 256R.23, subdivision 8, is amended to read:
14.14     Subd. 8. Determination of other care-related payment rates. A facility's other
14.15 care-related payment rate equals the lesser of (1) the facility's other care-related cost per
14.16 resident day, or (2) the facility's other care-related cost per resident day divided by its cost
14.17 to limit ratio, (3) the previous year's other care-related rate times one plus CPI-U inflation,
14.18 or (4) 104 percent of the previous year's other care-related payment rate.
14.19     EFFECTIVE DATE. This section is effective January 1, 2026.
14.20   Sec. 16. Minnesota Statutes 2024, section 256R.24, subdivision 3, is amended to read:
14.21     Subd. 3. Determination of the other operating payment rate. A facility's other
14.22 operating payment rate equals the lesser of (1) 105 percent of the median other operating
14.23 cost per day, (2) the previous year's other operating payment rate times one plus CPI-U
14.24 inflation, or (3) 104 percent of the previous year's other operating payment rate.
14.25     EFFECTIVE DATE. This section is effective January 1, 2026.
Article 1 Sec. 16.  14
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
15.1    Sec. 17. Minnesota Statutes 2024, section 256R.25, as amended by Laws 2025, chapter
15.2  38, article 1, section 27, is amended to read:
15.3      256R.25 EXTERNAL FIXED COSTS PAYMENT RATE.
15.4      Subd. 1. Determination of external fixed cost payment rate. (a) The payment rate for
15.5  external fixed costs is the sum of the amounts in paragraphs (b) to (p) subdivisions 2 to 17.
15.6      Subd. 2. Provider surcharges. (b) (a) For a facility licensed as a nursing home, the
15.7  portion related to the provider surcharge under section 256.9657 is equal to $8.86 $19.02
15.8  per resident day. For a facility licensed as both a nursing home and a boarding care home,
15.9  the portion related to the provider surcharge under section 256.9657 is equal to $8.86 $19.02
15.10 per resident day multiplied by the result of its number of nursing home beds divided by its
15.11 total number of licensed beds.
15.12     (b) The commissioner must decrease the portion related to the provider surcharge as
15.13 necessary to conform to decreases in the nursing home license surcharge fee under section
15.14 256.9657.
15.15     (c) The commissioner must reduce the portion related to the provider surcharge on
15.16 January 1 for each rate year the surcharge revenue received under section 256.9657,
15.17 subdivision 1, in the previous state fiscal year is less than the forecasted amount by 15
15.18 percent or more. The commissioner's computation must be based on the forecast published
15.19 most immediately prior to the beginning of the state fiscal year. A reduction of the portion
15.20 related to the provider surcharge under this paragraph is equal to the difference between
15.21 the forecasted amount and actual collections divided by total resident days from the most
15.22 recent cost reports, not to exceed a ten dollar reduction per resident day.
15.23     Subd. 3. Licensure fees. (c) The portion related to the licensure fee under section 144.122,
15.24 paragraph (d), is the amount of the fee divided by the sum of the facility's resident days.
15.25     Subd. 4. Advisory councils. (d) The portion related to development and education of
15.26 resident and family advisory councils under section 144A.33 is $5 per resident day divided
15.27 by 365.
15.28     Subd. 5. Scholarships. (e) The portion related to scholarships is determined under section
15.29 256R.37.
15.30     Subd. 6. Planned closures. (f) The portion related to planned closure rate adjustments
15.31 is as determined under section 256R.40, subdivision 5, and Minnesota Statutes 2010, section
15.32 256B.436.
Article 1 Sec. 17.  15
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
16.1      Subd. 7. Consolidations. (g) The portion related to consolidation rate adjustments shall
16.2  be as determined under section 256R.405.
16.3      Subd. 8. Single-bed rooms. (h) The portion related to single-bed room incentives is as
16.4  determined under section 256R.41.
16.5      Subd. 9. Taxes. (i) The portions related to real estate taxes, special assessments, and
16.6  payments made in lieu of real estate taxes directly identified or allocated to the nursing
16.7  facility are the allowable amounts divided by the sum of the facility's resident days. Allowable
16.8  costs under this paragraph for payments made by a nonprofit nursing facility that are in lieu
16.9  of real estate taxes shall not exceed the amount which the nursing facility would have paid
16.10 to a city or township and county for fire, police, sanitation services, and road maintenance
16.11 costs had real estate taxes been levied on that property for those purposes.
16.12     Subd. 10. Health insurance. (j) The portion related to employer health insurance costs
16.13 is the allowable costs divided by the sum of the facility's resident days.
16.14     Subd. 11. Public employees retirement. (k) The portion related to the Public Employees
16.15 Retirement Association is the allowable costs divided by the sum of the facility's resident
16.16 days.
16.17     Subd. 12. Quality improvement incentives. (l) The portion related to quality
16.18 improvement incentive payment rate adjustments is the amount determined under section
16.19 256R.39.
16.20     Subd. 13. Performance-based incentives. (m) The portion related to performance-based
16.21 incentive payments is the amount determined under section 256R.38.
16.22     Subd. 14. Special diets. (n) The portion related to special dietary needs is the amount
16.23 determined under section 256R.51.
16.24     Subd. 15. Border city facilities. (o) The portion related to the rate adjustments for border
16.25 city facilities is the amount determined under section 256R.481.
16.26     Subd. 16. Critical access facilities. (p) The portion related to the rate adjustment for
16.27 critical access nursing facilities is the amount determined under section 256R.47.
16.28     Subd. 17. Nursing home employment standards. The portion related to the rate
16.29 adjustment for nursing home employment standards is the amount determined under section
16.30 256R.495.
16.31     EFFECTIVE DATE. The amendments to subdivisions 1 and 17 are effective January
16.32 1, 2026, or upon federal approval, whichever is later. The amendments to subdivision 2 are
Article 1 Sec. 17.  16
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
17.1  effective January 1, 2026, or the first day of the month following federal approval, whichever
17.2  is later. The commissioner of human services shall notify the revisor of statutes when federal
17.3  approval is obtained.
17.4    Sec. 18. Minnesota Statutes 2024, section 256R.26, subdivision 9, is amended to read:
17.5      Subd. 9. Transition period. (a) A facility's property payment rate is the property rate
17.6  established for the facility under sections 256B.431 and 256B.434 until the facility's property
17.7  rate is transitioned upon completion of any project authorized under section 144A.071,
17.8  subdivision 3 or 4d; or 144A.073, subdivision 3, to the fair rental value property rate
17.9  calculated under this chapter.
17.10     (b) Effective the first day of the first month of the calendar quarter after the completion
17.11 of the project described in paragraph (a), the commissioner shall transition a facility to the
17.12 property payment rate calculated under this chapter. The initial rate year ends on December
17.13 31 and may be less than a full 12-month period. The commissioner shall schedule an appraisal
17.14 within 90 days of the commissioner receiving notification from the facility that the project
17.15 is completed. The commissioner shall apply the property payment rate determined after the
17.16 appraisal retroactively to the first day of the first month of the calendar quarter after the
17.17 completion of the project.
17.18     (c) Upon a facility's transition to the fair rental value property rates calculated under this
17.19 chapter, the facility's total property payment rate under subdivision 8 shall be the only
17.20 payment for costs related to capital assets, including depreciation, interest and lease expenses
17.21 for all depreciable assets, including movable equipment, land improvements, and land.
17.22 Facilities with property payment rates established under subdivisions 1 to 8 are not eligible
17.23 for planned closure rate adjustments under section 256R.40; consolidation rate adjustments
17.24 under section 144A.071, subdivisions 4c, paragraph (a), clauses (5) and (6), and 4d 256R.405;
17.25 single-bed room incentives under section 256R.41; and the property rate inflation adjustment
17.26 under Minnesota Statutes 2024, section 256B.434, subdivision 4. The commissioner shall
17.27 remove any of these incentives from the facility's existing rate upon the facility transitioning
17.28 to the fair rental value property rates calculated under this chapter.
17.29     EFFECTIVE DATE. This section is effective January 1, 2026.
17.30   Sec. 19. Minnesota Statutes 2024, section 256R.27, subdivision 2, is amended to read:
17.31     Subd. 2. Determination of interim payment rates. (a) The nursing facility shall submit
17.32 an interim cost report in a format similar to the Minnesota Statistical and Cost Report and
17.33 other supporting information as required by this chapter for the reporting year in which the
Article 1 Sec. 19.  17
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
18.1  nursing facility plans to begin operation at least 60 days before the first day a resident is
18.2  admitted to the newly constructed nursing facility bed. The interim cost report must include
18.3  the nursing facility's anticipated interim costs and anticipated interim resident days for each
18.4  resident class in the interim cost report. The anticipated interim resident days for each
18.5  resident class is multiplied by the weight for that resident class to determine the anticipated
18.6  interim standardized days as defined in section 256R.02, subdivision 50, and resident days
18.7  as defined in section 256R.02, subdivision 45, for the reporting period.
18.8      (b) The interim payment rates are determined according to sections 256R.21 to 256R.25,
18.9  except that:
18.10     (1) the anticipated interim costs and anticipated interim resident days reported on the
18.11 interim cost report and the anticipated interim standardized days as defined by section
18.12 256R.02, subdivision 50, must be used for the interim;
18.13     (2) the commissioner shall use anticipated interim costs and anticipated interim
18.14 standardized days in determining the allowable historical direct care cost per standardized
18.15 day as determined under section 256R.23, subdivision 2;
18.16     (3) the commissioner shall use anticipated interim costs and anticipated interim resident
18.17 days in determining the allowable historical other care-related cost per resident day as
18.18 determined under section 256R.23, subdivision 3;
18.19     (4) the commissioner shall use anticipated interim costs and anticipated interim resident
18.20 days to determine the allowable historical external fixed costs per day under section 256R.25,
18.21 paragraphs (b) to (k) subdivisions 2 to 11;
18.22     (5) the total care-related payment rate limits established in section 256R.23, subdivision
18.23 5, and in effect at the beginning of the interim period must be increased by ten percent; and
18.24     (6) the other operating payment rate as determined under section 256R.24 in effect for
18.25 the rate year must be used for the other operating cost per day.
18.26   Sec. 20. Minnesota Statutes 2024, section 256R.27, subdivision 3, is amended to read:
18.27     Subd. 3. Determination of settle-up payment rates. (a) When the interim payment
18.28 rates begin between May 1 and September 30, the nursing facility shall file settle-up cost
18.29 reports for the period from the beginning of the interim payment rates through September
18.30 30 of the following year.
18.31     (b) When the interim payment rates begin between October 1 and April 30, the nursing
18.32 facility shall file settle-up cost reports for the period from the beginning of the interim
Article 1 Sec. 20.  18
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
19.1  payment rates to the first September 30 following the beginning of the interim payment
19.2  rates.
19.3      (c) The settle-up payment rates are determined according to sections 256R.21 to 256R.25,
19.4  except that:
19.5      (1) the allowable costs and resident days reported on the settle-up cost report and the
19.6  standardized days as defined by section 256R.02, subdivision 50, must be used for the
19.7  interim and settle-up period;
19.8      (2) the commissioner shall use the allowable costs and standardized days in clause (1)
19.9  to determine the allowable historical direct care cost per standardized day as determined
19.10 under section 256R.23, subdivision 2;
19.11     (3) the commissioner shall use the allowable costs and the allowable resident days to
19.12 determine both the allowable historical other care-related cost per resident day as determined
19.13 under section 256R.23, subdivision 3;
19.14     (4) the commissioner shall use the allowable costs and the allowable resident days to
19.15 determine the allowable historical external fixed costs per day under section 256R.25,
19.16 paragraphs (b) to (k) subdivisions 2 to 11;
19.17     (5) the total care-related payment limits established in section 256R.23, subdivision 5,
19.18 are the limits for the settle-up reporting periods. If the interim period includes more than
19.19 one July 1 date, the commissioner shall use the total care-related payment rate limit
19.20 established in section 256R.23, subdivision 5, increased by ten percent for the second July
19.21 1 date; and
19.22     (6) the other operating payment rate as determined under section 256R.24 in effect for
19.23 the rate year must be used for the other operating cost per day.
19.24   Sec. 21. Minnesota Statutes 2024, section 256R.41, is amended to read:
19.25     256R.41 SINGLE-BED ROOM INCENTIVE.
19.26     Subdivision 1. Single-bed incentive. (a) Beginning July 1, 2005, The operating payment
19.27 rate for nursing facilities reimbursed under this chapter shall be increased by 20 percent
19.28 multiplied by the ratio of the number of new single-bed rooms created divided by the number
19.29 of active beds on July 1, 2005, for each bed closure that results in the creation of a single-bed
19.30 room after July 1, 2005. The commissioner may implement rate adjustments for up to 3,000
19.31 new single-bed rooms each year through June 30, 2030. For eligible bed closures for which
19.32 the commissioner receives a notice from a facility that a bed has been delicensed and a new
Article 1 Sec. 21.  19
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
20.1  single-bed room has been established, the rate adjustment in this paragraph shall be effective
20.2  on either the first day of the month of January or July, whichever occurs first following the
20.3  date of the bed delicensure.
20.4      Subd. 2. Single-bed incentive phase-out. (a) Beginning January 1, 2027, the
20.5  commissioner shall reduce the value of the single-bed incentive calculated under subdivision
20.6  1 as follows:
20.7      (1) January 1, 2027, through December 31, 2027, the single-bed incentive is 80 percent
20.8  of the value calculated under subdivision 1;
20.9      (2) January 1, 2028, through December 31, 2028, the single-bed incentive is 60 percent
20.10 of the value calculated under subdivision 1;
20.11     (3) January 1, 2029, through December 31, 2029, the single-bed incentive is 40 percent
20.12 of the value calculated under subdivision 1;
20.13     (4) January 1, 2030, through December 31, 2030, the single-bed incentive is 20 percent
20.14 of the value calculated under subdivision 1; and
20.15     (5) on or after January 1, 2031, the single-bed incentive is zero.
20.16     (b) The phase-out schedule in this subdivision applies to all existing and new rate
20.17 adjustment amounts determined under subdivision 1.
20.18     Subd. 3. Discharge prohibition. (b) A nursing facility is prohibited from discharging
20.19 residents for purposes of establishing single-bed rooms. A nursing facility must submit
20.20 documentation to the commissioner in a form prescribed by the commissioner, certifying
20.21 the occupancy status of beds closed to create single-bed rooms. In the event that the
20.22 commissioner determines that a facility has discharged a resident for purposes of establishing
20.23 a single-bed room, the commissioner shall not provide a rate adjustment under paragraph
20.24 (a) this section.
20.25     EFFECTIVE DATE. This section is effective the day following final enactment.
20.26   Sec. 22. Minnesota Statutes 2024, section 256R.43, is amended to read:
20.27     256R.43 BED HOLDS.
20.28     The commissioner shall limit payment for leave days in a nursing facility to 30 percent
20.29 of that nursing facility's total payment rate for the involved resident, and shall allow this
20.30 payment only when the occupancy of the nursing facility, inclusive of bed hold days, is
20.31 equal to or greater than 96 percent, notwithstanding Minnesota Rules, part 9505.0415. For
20.32 the purpose of establishing leave day payments, the commissioner shall determine occupancy
Article 1 Sec. 22.  20
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
21.1  based on the number of licensed and certified beds in the facility that are not in layaway
21.2  status.
21.3      EFFECTIVE DATE. This section is effective the day following final enactment.
21.4    Sec. 23. [256R.495] RATE ADJUSTMENT FOR NURSING HOME EMPLOYMENT
21.5  STANDARDS.
21.6      Subdivision 1. Nursing home employment standards rate adjustment. For each rate
21.7  year for which section 181.213, subdivision 2b, is in effect, and for which the legislature
21.8  appropriates money to fund a rate increase necessary to meet new employment standards
21.9  established under section 181.213, a nursing facility's rate under this chapter must include
21.10 a rate adjustment to pay for the nursing home employment standards promulgated by the
21.11 Nursing Home Workforce Standards Board if the facility complies with the requirements
21.12 in subdivision 2. To receive a rate adjustment under this section, a nursing facility must
21.13 report to the commissioner the wage rate for every worker and contracted worker below a
21.14 new minimum employment standard established by the board under section 181.213.
21.15     Subd. 2. Application for rate adjustments. To receive a rate adjustment under this
21.16 section, a nursing facility must submit to the commissioner in a form and manner determined
21.17 by the commissioner an application for each rate year in which a rate adjustment is available.
21.18 The application must include data for a period beginning with the first pay period after June
21.19 1 of the year prior to the rate year in which the rate adjustment takes effect, including at
21.20 least two months of worker-compensated hours by wage rate and a spending plan that
21.21 describes how the money from the rate adjustment will be allocated for compensation to
21.22 workers as defined by Minnesota Rules, part 5200.2060, who are paid less than the general
21.23 wage standards defined in Minnesota Rules, part 5200.2080, and the wage standards for
21.24 certain positions defined by Minnesota Rules, part 5200.2090. A nursing facility must submit
21.25 the application by October 1 of the year prior to the rate year in which the rate adjustment
21.26 takes effect. The commissioner may request any additional information needed to determine
21.27 the rate adjustment. The nursing facility must provide any additional information requested
21.28 by the commissioner within 20 calendar days of receiving a request from the commissioner
21.29 for additional information. The commissioner may waive the deadlines in this subdivision
21.30 under extraordinary circumstances.
21.31     Subd. 3. Rate adjustment timeline. Based on an approved application submitted under
21.32 subdivision 2, the commissioner must calculate the amount of the rate adjustment based on
21.33 the facility's approved application under subdivision 2 and include that amount in the facility's
21.34 external fixed cost payment rate under section 256R.25. For each rate year for which a
Article 1 Sec. 23.  21
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
22.1  nursing facility receives approval of the application under subdivision 2, the facility must
22.2  receive a final rate adjustment according to the applicable subdivision of this section. The
22.3  final rate adjustment must be included in the external fixed costs payment rate under section
22.4  256R.25 for two rate years.
22.5      Subd. 4. January 1, 2026, rate adjustment calculation. (a) For the rate year beginning
22.6  January 1, 2026, the commissioner must calculate the annualized compensation costs by
22.7  adding the totals of clauses (1) to (5). The result must be divided by the total resident days
22.8  from the most recently available cost report to determine the preliminary rate adjustment
22.9  for the nursing home employment standards:
22.10     (1) for certified nursing assistants, the sum of the difference between $22.50 and any
22.11 hourly wage rate of less than $22.50 multiplied by the number of compensated hours at that
22.12 wage rate;
22.13     (2) for trained medication aides, the sum of the difference between $23.50 and any hourly
22.14 wage rate of less than $23.50 multiplied by the number of compensated hours at that wage
22.15 rate;
22.16     (3) for licensed practical nurses, the sum of the difference between $27 and any hourly
22.17 wage rate of less than $27 multiplied by the number of compensated hours at that wage
22.18 rate;
22.19     (4) for all nursing home workers not included in clauses (1) to (3) who are subject to
22.20 the minimum wage standards established by the board under section 181.213, the sum of
22.21 the difference between $19 and any hourly wage rate less than $19 multiplied by the number
22.22 of compensated hours at that wage rate; and
22.23     (5) the sum of the employer's share of FICA taxes, Medicare taxes, state and federal
22.24 unemployment taxes, workers' compensation, pensions, and contributions to employee
22.25 retirement accounts attributable to the amounts in clauses (1) to (4).
22.26     (b) If the aggregate net general fund spending under this subdivision does not exceed
22.27 the increase in funding needed to increase payment rates to comply with the new employment
22.28 standards as reported to the legislature by the Nursing Home Workforce Standards Board
22.29 under section 181.213, the preliminary rate adjustment calculated under paragraph (a) is
22.30 the final rate adjustment for the nursing home employment standards.
22.31     (c) If the aggregate net general fund spending under this subdivision exceeds the increase
22.32 in funding needed to increase payment rates necessary to comply with the new employment
22.33 standards as reported to the legislature by the Nursing Home Workforce Standards Board
Article 1 Sec. 23.  22
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
23.1  under section 181.213, the commissioner must determine the final rate adjustment by
23.2  reducing all preliminary rate adjustments calculated under paragraph (a) by an equal
23.3  proportion such that the aggregate net general fund spending under this subdivision is equal
23.4  to the amount reported to the legislature by the Nursing Home Workforce Standards Board.
23.5      Subd. 5. January 1, 2027, rate adjustment calculation. (a) For the rate year beginning
23.6  January 1, 2027, the commissioner must calculate the annualized compensation costs by
23.7  adding the totals of clauses (1) to (5). The result must be divided by the total resident days
23.8  from the most recently available cost report to determine the final rate adjustment for the
23.9  nursing home employment standards:
23.10     (1) for certified nursing assistants, the sum of the difference between $24 and any hourly
23.11 wage rate of less than $24 multiplied by the number of compensated hours at that wage
23.12 rate;
23.13     (2) for trained medication aides, the sum of the difference between $25 and any hourly
23.14 wage rate of less than $25 multiplied by the number of compensated hours at that wage
23.15 rate;
23.16     (3) for licensed practical nurses, the sum of the difference between $28.50 and any hourly
23.17 wage rate of less than $28.50 multiplied by the number of compensated hours at that wage
23.18 rate;
23.19     (4) for all nursing home workers not included in clauses (1) to (3) who are subject to
23.20 the minimum wage standards established by the board under section 181.213, the sum of
23.21 the difference between $20.50 and any hourly wage rate of less than $20.50 multiplied by
23.22 the number of compensated hours at that wage rate; and
23.23     (5) the sum of the employer's share of FICA taxes, Medicare taxes, state and federal
23.24 unemployment taxes, workers' compensation, pensions, and contributions to employee
23.25 retirement accounts attributable to the amounts in clauses (1) to (4).
23.26     (b) If the aggregate net general fund spending under this subdivision does not exceed
23.27 the increase in funding needed to increase payment rates necessary to comply with the new
23.28 employment standards as reported to the legislature by the Nursing Home Workforce
23.29 Standards Board under section 181.213, the preliminary rate adjustment calculated under
23.30 paragraph (a) is the final rate adjustment for the nursing home employment standards.
23.31     (c) If the aggregate net general fund spending under this subdivision exceeds the increase
23.32 in funding needed to increase payment rates necessary to comply with the new employment
23.33 standards as reported to the legislature by the Nursing Home Workforce Standards Board
Article 1 Sec. 23.  23
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
24.1  under section 181.213, the commissioner must determine the final rate adjustment by
24.2  reducing all preliminary rate adjustments calculated under paragraph (a) by an equal
24.3  proportion such that the aggregate net general fund spending under this subdivision is equal
24.4  to the amount reported to the legislature by the Nursing Home Workforce Standards Board.
24.5      EFFECTIVE DATE. This section is effective July 1, 2025, or upon federal approval,
24.6  whichever is later. The commissioner of human services shall notify the revisor of statutes
24.7  when federal approval is obtained.
24.8    Sec. 24. [256R.531] PATIENT DRIVEN PAYMENT MODEL PHASE-IN.
24.9      Subdivision 1. PDPM phase-in. Effective October 1, 2025, through December 31, 2028,
24.10 for each facility, the commissioner must determine an adjustment to its total payment rate
24.11 as determined under sections 256R.21 and 256R.27 to phase in the transition from the
24.12 RUG-IV case mix classification system to the patient driven payment model (PDPM) case
24.13 mix classification system.
24.14     Subd. 1a. Definition. "Medical assistance facility average case mix index" means the
24.15 facility average case mix index for the subset of a facility's residents that includes only
24.16 medical assistance recipients.
24.17     Subd. 2. PDPM phase-in rate adjustment. A facility's PDPM phase-in rate adjustment
24.18 to its total payment rate is equal to:
24.19     (1) the blended medical assistance case mix adjusted direct care payment rate determined
24.20 in subdivision 6; minus
24.21     (2) the PDPM medical assistance case mix adjusted direct care payment rate determined
24.22 in section 256R.23, subdivision 7.
24.23     Subd. 3. RUG-IV standardized days and RUG-IV facility case mix index. (a) Effective
24.24 October 1, 2025, through December 31, 2027, for each facility, the commissioner must
24.25 determine the RUG-IV standardized days and RUG-IV medical assistance facility average
24.26 case mix index.
24.27     (b) For the rate year beginning January 1, 2028, only:
24.28     (1) for each facility, the commissioner must determine both the RUG-IV facility average
24.29 case mix index and the RUG-IV medical assistance facility average case mix index using
24.30 resident days by the case mix classification on the facility's September 30, 2025, Minnesota
24.31 Statistical and Cost Report; and
Article 1 Sec. 24.  24
06/07/25  REVISOR       DTT/RC  25-05696  as introduced
25.1      (2) for each facility, the commissioner must determine the RUG-IV standardized days
25.2  by multiplying the facility's resident days on the facility's September 30, 2026, Minnesota
25.3  Statistical and Cost Report by the facility's RUG-IV facility average case mix index
25.4  determined under clause (1).
25.5      Subd. 4. RUG-IV medical assistance case mix adjusted direct care payment rate. The
25.6  commissioner must determine a facility's RUG-IV medical assistance case mix adjusted
25.7  direct care payment rate as the product of:
25.8      (1) the facility's RUG-IV direct care payment rate determined in section 256R.23,
25.9  subdivision 7, using the RUG-IV standardized days determined in subdivision 3; and
25.10     (2) the corresponding RUG-IV medical assistance facility average case mix index
25.11 determined in subdivision 3.
25.12     Subd. 5. PDPM medical assistance case mix adjusted direct care payment rate. The
25.13 commissioner must determine a facility's PDPM case mix adjusted direct care payment rate
25.14 as the product of:
25.15     (1) the facility's direct care payment rate determined in section 256R.23, subdivision 7;
25.16 and
25.17     (2) the corresponding medical assistance facility average case mix index.
25.18     Subd. 6. Blended medical assistance case mix adjusted direct care payment rate. The
25.19 commissioner must determine a facility's blended medical assistance case mix adjusted
25.20 direct care payment rate as the sum of:
25.21     (1) the RUG-IV medical assistance case mix adjusted direct care payment rate determined
25.22 in subdivision 4 multiplied by the following percentages:
25.23     (i) October 1, 2025, through December 31, 2026, 75 percent;
25.24     (ii) January 1, 2027, through December 31, 2027, 50 percent; and
25.25     (iii) January 1, 2028, through December 31, 2028, 25 percent; and
25.26     (2) the PDPM medical assistance case mix adjusted direct care payment rate determined
25.27 in subdivision 5 multiplied by the following percentages:
25.28     (i) October 1, 2025, through December 31, 2026, 25 percent;
25.29     (ii) January 1, 2027, through December 31, 2027, 50 percent; and
25.30     (iii) January 1, 2028, through December 31, 2028, 75 percent.
25.31     Subd. 7. Expiration. This section expires January 1, 2029.
Article 1 Sec. 24.  25
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
26.1      EFFECTIVE DATE. This section is effective October 1, 2025.
26.2    Sec. 25. Minnesota Statutes 2024, section 256S.205, subdivision 2, is amended to read:
26.3      Subd. 2. Rate adjustment application. (a) Effective through September 30, 2023, a
26.4  facility may apply to the commissioner for an initial designation as a disproportionate share
26.5  facility. Applications must be submitted annually between September 1 and September 30.
26.6  The applying facility must apply in a manner determined by the commissioner. The applying
26.7  facility must document each of the following on the application:
26.8      (1) the number of customized living residents in the facility on September 1 of the
26.9  application year, broken out by specific waiver program; and
26.10     (2) the total number of people residing in the facility on September 1 of the application
26.11 year.
26.12     (b) Effective October 1, 2023, the commissioner must not process any new initial
26.13 applications for disproportionate share facilities after the September 1 through September
26.14 30, 2023, application period.
26.15     (c) A facility that receives received rate floor payments in rate year 2024 may submit
26.16 an annual application under this subdivision to maintain its designation as a disproportionate
26.17 share facility for rate year 2025.
26.18   Sec. 26. Minnesota Statutes 2024, section 256S.205, subdivision 3, is amended to read:
26.19     Subd. 3. Rate adjustment eligibility criteria. (a) Effective through September 30, 2023,
26.20 Only facilities satisfying all of the following conditions on September 1 of the application
26.21 year are eligible for designation as a disproportionate share facility:
26.22     (1) at least 83.5 percent of the residents of the facility are customized living residents;
26.23 and
26.24     (2) at least 70 percent of the customized living residents are elderly waiver participants.
26.25     (b) A facility determined eligible for the disproportionate share rate adjustment in
26.26 application year 2023 and receiving payments in rate year 2024 is eligible to receive payments
26.27 in rate year 2025 years beginning on or after January 1, 2025, only if the commissioner
26.28 determines that the facility continues to meet the eligibility requirements under this
26.29 subdivision as determined by the application process under subdivision 2, paragraph (c).
Article 1 Sec. 26.  26
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
27.1    Sec. 27. Minnesota Statutes 2024, section 256S.205, subdivision 5, is amended to read:
27.2      Subd. 5. Rate adjustment; rate floor. (a) Effective through December 31, 2025,
27.3  Notwithstanding the 24-hour customized living monthly service rate limits under section
27.4  256S.202, subdivision 2, and the component service rates established under section 256S.201,
27.5  subdivision 4, the commissioner must establish a rate floor equal to $141 per resident per
27.6  day for 24-hour customized living services provided to an elderly waiver participant in a
27.7  designated disproportionate share facility.
27.8      (b) The commissioner must apply the rate floor to the services described in paragraph
27.9  (a) provided during the rate year.
27.10   Sec. 28. Minnesota Statutes 2024, section 256S.205, subdivision 7, is amended to read:
27.11     Subd. 7. Expiration. This section expires January 1, 2026 May 31, 2028.
27.12   Sec. 29. Minnesota Statutes 2024, section 256S.205, is amended by adding a subdivision
27.13 to read:
27.14     Subd. 8. Coercion prohibited. (a) A facility must not pressure, coerce, entice, or
27.15 otherwise unduly influence a resident to become an elderly waiver participant. Every six
27.16 months, each designated disproportionate share facility must submit a written attestation to
27.17 the commissioner affirming that neither the facility nor any of its owners, operators, or
27.18 employees pressured, coerced, enticed, or otherwise unduly influenced a resident to become
27.19 an elderly waiver participant. If a facility fails to submit the required attestation to the
27.20 commissioner within 60 days of the due date of the attestation, the commissioner must
27.21 terminate the facility's designation. The facility may appeal the decision of the commissioner
27.22 under section 256.045.
27.23     (b) The commissioner shall terminate a facility's designation as a disproportionate share
27.24 facility upon a credible allegation of a facility violating this subdivision. The commissioner
27.25 may also impose other sanctions under chapter 256B as the commissioner deems appropriate.
27.26 The facility may appeal the decision of the commissioner under section 256.045.
27.27   Sec. 30. Minnesota Statutes 2024, section 256S.205, is amended by adding a subdivision
27.28 to read:
27.29     Subd. 9. Compensation requirements. (a) A provider receiving a rate floor must use
27.30 a minimum of 66 percent of the incremental increase in revenue generated by the rate floor
27.31 under this section for direct care staff compensation.
Article 1 Sec. 30.  27
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
28.1      (b) Compensation under this subdivision includes:
28.2      (1) wages;
28.3      (2) taxes and workers' compensation;
28.4      (3) health insurance;
28.5      (4) dental insurance;
28.6      (5) vision insurance;
28.7      (6) life insurance;
28.8      (7) short-term disability insurance;
28.9      (8) long-term disability insurance;
28.10     (9) retirement spending;
28.11     (10) tuition reimbursement;
28.12     (11) wellness programs;
28.13     (12) paid vacation time;
28.14     (13) paid sick time; or
28.15     (14) other items of monetary value provided to direct care staff.
28.16   Sec. 31. LAWS EFFECTIVE DATE.
28.17     Notwithstanding any other law to the contrary, Laws 2025, chapter 38, article 1, section
28.18 30, is effective January 1, 2026.
28.19     EFFECTIVE DATE. This section is effective the day following final enactment.
28.20   Sec. 32. REPEALER.
28.21     (a) Minnesota Statutes 2024, section 256R.02, subdivision 38, is repealed.
28.22     (b) Minnesota Statutes 2024, sections 256R.12, subdivision 10; and 256R.36, are repealed.
28.23     (c) Minnesota Statutes 2024, section 256R.23, subdivision 6, is repealed.
28.24     EFFECTIVE DATE. Paragraph (a) is effective January 1, 2026. Paragraph (b) is
28.25 effective the day following final enactment. Paragraph (c) is effective October 1, 2025.
Article 1 Sec. 32.  28
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
29.1ARTICLE 2
29.2DISABILITY SERVICES
29.3    Section 1. Minnesota Statutes 2024, section 179A.54, is amended by adding a subdivision
29.4  to read:
29.5      Subd. 12. Minnesota Caregiver Retirement Fund Trust. (a) The state and an exclusive
29.6  representative certified pursuant to this section may establish a joint labor and management
29.7  trust, referred to as the Minnesota Caregiver Retirement Fund Trust, for the exclusive
29.8  purpose of creating, implementing, and administering a retirement program for individual
29.9  providers of direct support services who are represented by the exclusive representative.
29.10     (b) The state must make financial contributions to the Minnesota Caregiver Retirement
29.11 Fund Trust pursuant to a collective bargaining agreement negotiated under this section. The
29.12 financial contributions by the state must be held in trust for the purpose of paying, from
29.13 principal, income, or both, the costs associated with creating, implementing, and
29.14 administering a defined contribution or other individual account retirement program for
29.15 individual providers of direct support services working under a collective bargaining
29.16 agreement and providing services through a covered program under section 256B.0711. A
29.17 board of trustees composed of an equal number of trustees appointed by the governor and
29.18 trustees appointed by the exclusive representative under this section must administer, manage,
29.19 and otherwise jointly control the Minnesota Caregiver Retirement Fund Trust. The trust
29.20 must not be an agent of either the state or the exclusive representative.
29.21     (c) A third-party administrator, financial management institution, other appropriate
29.22 entity, or any combination thereof may provide trust administrative, management, legal,
29.23 and financial services to the board of trustees as designated by the board of trustees from
29.24 time to time. The services must be paid from the money held in trust and created by the
29.25 state's financial contributions to the Minnesota Caregiver Retirement Fund Trust.
29.26     (d) The state is authorized to purchase liability insurance for members of the board of
29.27 trustees appointed by the governor.
29.28     (e) Financial contributions to or participation in the management or administration of
29.29 the Minnesota Caregiver Retirement Fund Trust must not be considered an unfair labor
29.30 practice under section 179A.13, or a violation of Minnesota law.
29.31     (f) Nothing in this section shall be construed to authorize the creation of a defined benefit
29.32 retirement plan or program.
29.33     EFFECTIVE DATE. This section is effective July 1, 2025.
Article 2 Section 1.  29
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
30.1    Sec. 2. Minnesota Statutes 2024, section 245A.042, is amended by adding a subdivision
30.2  to read:
30.3      Subd. 5. Compliance education required. The commissioner must make licensing
30.4  compliance education available to all license holders operating programs licensed under
30.5  both this chapter and chapter 245D. The licensing compliance education must include clear
30.6  and accessible explanations of achieving and maintaining compliance with the relevant
30.7  licensing requirements under this chapter and chapter 245D.
30.8      EFFECTIVE DATE. This section is effective January 1, 2027.
30.9    Sec. 3. Minnesota Statutes 2024, section 245A.042, is amended by adding a subdivision
30.10 to read:
30.11     Subd. 6. Legal resources required. If requested by a license holder that is (1) subject
30.12 to an enforcement action under section 245A.06 or 245A.07, and (2) operating a program
30.13 licensed under this chapter and chapter 245D, the commissioner must provide the license
30.14 holder with a list of legal resources.
30.15     EFFECTIVE DATE. This section is effective January 1, 2026.
30.16   Sec. 4. Minnesota Statutes 2024, section 245A.06, subdivision 1a, is amended to read:
30.17     Subd. 1a. Correction orders and conditional licenses for programs licensed as home
30.18 and community-based services. (a) For programs licensed under both this chapter and
30.19 chapter 245D, if the license holder operates more than one service site under a single license
30.20 governed by chapter 245D, the correction order or order of conditional license issued under
30.21 this section shall be specific to the service site or sites at which the violations of applicable
30.22 law or rules occurred. The order shall not apply to other service sites governed by chapter
30.23 245D and operated by the same license holder unless the commissioner has included in the
30.24 order the articulable basis for applying the order to another service site.
30.25     (b) If the commissioner has issued more than one license to the license holder under this
30.26 chapter, the conditions imposed order issued under this section shall be specific to the license
30.27 for the program at which the violations of applicable law or rules occurred and shall not
30.28 apply to other licenses held by the same license holder if those programs are being operated
30.29 in substantial compliance with applicable law and rules.
30.30     (c) Prior to issuing an order of conditional license under this section to a license holder
30.31 operating a program licensed under both this chapter and chapter 245D, the commissioner
30.32 must inform the license holder that the next audit or investigation may lead to an order of
Article 2 Sec. 4.  30
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
31.1  conditional license if the provider fails to correct the violations specified in a prior correction
31.2  order or has any new violations. Nothing in this paragraph limits the commissioner's authority
31.3  to take immediate action under section 245A.07 to prevent or correct actions by the license
31.4  holder that imminently endanger the health, safety, or rights of the persons served by the
31.5  program.
31.6      (d) The commissioner may reduce the length of time of a conditional license for a license
31.7  holder operating a program licensed under both this chapter and chapter 245D if the license
31.8  holder demonstrates compliance or progress toward compliance before the conditional
31.9  license period expires.
31.10     (e) By January 1, 2027, and annually thereafter, the commissioner must provide a report
31.11 to the chairs and ranking minority members of the legislative committees with jurisdiction
31.12 over chapter 245D licensing on the number of correction orders and orders of conditional
31.13 license issued to license holders who operate programs licensed under both this chapter and
31.14 chapter 245D. The report must include aggregated data on the zip codes of locations, number
31.15 of employees, license effective dates for any license holders subject to correction orders
31.16 and orders of conditional license, and the commissioner's efforts to offer collaborative safety
31.17 process improvements to license holders under section 245A.042 and this subdivision.
31.18     EFFECTIVE DATE. This section is effective January 1, 2027.
31.19   Sec. 5. Minnesota Statutes 2024, section 245A.06, subdivision 2, is amended to read:
31.20     Subd. 2. Reconsideration of correction orders. (a) If the applicant or license holder
31.21 believes that the contents of the commissioner's correction order are in error, the applicant
31.22 or license holder may ask the Department of Human Services to reconsider the parts of the
31.23 correction order that are alleged to be in error. The request for reconsideration must be made
31.24 in writing and must be postmarked and sent to the commissioner within 20 calendar days
31.25 after receipt of the correction order by the applicant or license holder or submitted in the
31.26 provider licensing and reporting hub within 20 calendar days from the date the commissioner
31.27 issued the order through the hub, and:
31.28     (1) specify the parts of the correction order that are alleged to be in error;
31.29     (2) explain why they are in error; and
31.30     (3) include documentation to support the allegation of error.
31.31     Upon implementation of the provider licensing and reporting hub, the provider must use
31.32 the hub to request reconsideration. A request for reconsideration does not stay any provisions
Article 2 Sec. 5.  31
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
32.1  or requirements of the correction order. The commissioner's disposition of a request for
32.2  reconsideration is final and not subject to appeal under chapter 14.
32.3      (b) This paragraph applies only to licensed family child care providers. A licensed family
32.4  child care provider who requests reconsideration of a correction order under paragraph (a)
32.5  may also request, on a form and in the manner prescribed by the commissioner, that the
32.6  commissioner expedite the review if:
32.7      (1) the provider is challenging a violation and provides a description of how complying
32.8  with the corrective action for that violation would require the substantial expenditure of
32.9  funds or a significant change to their program; and
32.10     (2) describes what actions the provider will take in lieu of the corrective action ordered
32.11 to ensure the health and safety of children in care pending the commissioner's review of the
32.12 correction order.
32.13     (b) Notwithstanding paragraph (a), when a request for reconsideration is denied, the
32.14 commissioner must offer the option of mediation for a license holder operating a program
32.15 licensed under both this chapter and chapter 245D, if a license holder further disputes the
32.16 commissioner's correction order. The costs of the mediation option under this paragraph
32.17 must be paid by the license holder.
32.18     EFFECTIVE DATE. This section is effective January 1, 2027.
32.19   Sec. 6. Minnesota Statutes 2024, section 245D.091, subdivision 2, as amended by Laws
32.20 2025, chapter 20, section 202, is amended to read:
32.21     Subd. 2. Positive support professional qualifications. A positive support professional
32.22 providing positive support services as identified in section 245D.03, subdivision 1, paragraph
32.23 (c), clause (1), item (i), must have competencies in the following areas as required under
32.24 the brain injury, community access for disability inclusion, community alternative care, and
32.25 developmental disabilities waiver plans or successor plans:
32.26     (1) ethical considerations;
32.27     (2) functional assessment;
32.28     (3) functional analysis;
32.29     (4) measurement of behavior and interpretation of data;
32.30     (5) selecting intervention outcomes and strategies;
Article 2 Sec. 6.  32
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
33.1      (6) behavior reduction and elimination strategies that promote least restrictive approved
33.2  alternatives;
33.3      (7) data collection;
33.4      (8) staff and caregiver training;
33.5      (9) support plan monitoring;
33.6      (10) co-occurring mental disorders or neurocognitive disorder;
33.7      (11) demonstrated expertise with populations being served; and
33.8      (12) must be a:
33.9      (i) psychologist licensed under sections 148.88 to 148.98, who has stated to the Board
33.10 of Psychology competencies in the above identified areas;
33.11     (ii) clinical social worker licensed as an independent clinical social worker under chapter
33.12 148E, or a person with a master's degree in social work from an accredited college or
33.13 university, with at least 4,000 hours of post-master's supervised experience in the delivery
33.14 of clinical services in the areas identified in clauses (1) to (11);
33.15     (iii) physician licensed under chapter 147 and certified by the American Board of
33.16 Psychiatry and Neurology or eligible for board certification in psychiatry with competencies
33.17 in the areas identified in clauses (1) to (11);
33.18     (iv) licensed professional clinical counselor licensed under sections 148B.29 to 148B.39
33.19 with at least 4,000 hours of post-master's supervised experience in the delivery of clinical
33.20 services who has demonstrated competencies in the areas identified in clauses (1) to (11);
33.21     (v) person with a master's degree from an accredited college or university in one of the
33.22 behavioral sciences or related fields, with at least 4,000 hours of post-master's supervised
33.23 experience in the delivery of clinical services with demonstrated competencies in the areas
33.24 identified in clauses (1) to (11);
33.25     (vi) person with a master's degree or PhD in one of the behavioral sciences or related
33.26 fields with demonstrated expertise in positive support services, as determined by the person's
33.27 needs as outlined in the person's assessment summary; or
33.28     (vii) registered nurse who is licensed under sections 148.171 to 148.285, and who is
33.29 certified as a clinical specialist or as a nurse practitioner in adult or family psychiatric and
33.30 mental health nursing by a national nurse certification organization, or who has a master's
33.31 degree in nursing or one of the behavioral sciences or related fields from an accredited
Article 2 Sec. 6.  33
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
34.1  college or university or its equivalent, with at least 4,000 hours of post-master's supervised
34.2  experience in the delivery of clinical services.; or
34.3      (viii) person who has completed a competency-based training program as determined
34.4  by the commissioner.
34.5    Sec. 7. Minnesota Statutes 2024, section 245D.091, subdivision 3, as amended by Laws
34.6  2025, chapter 38, article 1, section 5, is amended to read:
34.7      Subd. 3. Positive support analyst qualifications. (a) A positive support analyst providing
34.8  positive support services as identified in section 245D.03, subdivision 1, paragraph (c),
34.9  clause (1), item (i), must have competencies in one of the following areas satisfy one of the
34.10 following requirements as required under the brain injury, community access for disability
34.11 inclusion, community alternative care, and developmental disabilities waiver plans or
34.12 successor plans:
34.13     (1) have obtained a baccalaureate degree, master's degree, or PhD in either a social
34.14 services discipline or nursing;
34.15     (2) meet the qualifications of a mental health practitioner as defined in section 245.462,
34.16 subdivision 17; or
34.17     (3) be a board-certified behavior analyst or board-certified assistant behavior analyst by
34.18 the Behavior Analyst Certification Board, Incorporated.; or
34.19     (4) have completed a competency-based training program as determined by the
34.20 commissioner.
34.21     (b) In addition, a positive support analyst must:
34.22     (1) either have two years of supervised experience conducting functional behavior
34.23 assessments and designing, implementing, and evaluating effectiveness of positive practices
34.24 behavior support strategies for people who exhibit challenging behaviors as well as
34.25 co-occurring mental disorders and neurocognitive disorder, or for those who have obtained
34.26 a baccalaureate degree in one of the behavioral sciences or related fields, demonstrated
34.27 expertise in positive support services;
34.28     (2) have received training prior to hire or within 90 calendar days of hire that includes:
34.29     (i) ten hours of instruction in functional assessment and functional analysis;
34.30     (ii) 20 hours of instruction in the understanding of the function of behavior;
34.31     (iii) ten hours of instruction on design of positive practices behavior support strategies;
Article 2 Sec. 7.  34
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
35.1(iv) 20 hours of instruction preparing written intervention strategies, designing data
35.2  collection protocols, training other staff to implement positive practice strategies,
35.3  summarizing and reporting program evaluation data, analyzing program evaluation data to
35.4  identify design flaws in behavioral interventions or failures in implementation fidelity, and
35.5  recommending enhancements based on evaluation data; and
35.6(v) eight hours of instruction on principles of person-centered thinking;
35.7(3) be determined by a positive support professional to have the training and prerequisite
35.8  skills required to provide positive practice strategies as well as behavior reduction approved
35.9  and permitted intervention to the person who receives positive support; and
35.10(4) be under the direct supervision of a positive support professional.
35.11(c) Meeting the qualifications for a positive support professional under subdivision 2
35.12 shall substitute for meeting the qualifications listed in paragraph (b).
35.13   Sec. 8. [245D.13] OUT-OF-HOME RESPITE CARE SERVICES FOR CHILDREN.
35.14Subdivision 1. Licensed setting required. A license holder with a home and
35.15 community-based services license providing out-of-home respite care services for children
35.16 may do so only in a licensed setting, unless exempt under subdivision 2. For purposes of
35.17 this section, "respite care services" has the meaning given in section 245A.02, subdivision
35.18 15.
35.19Subd. 2. Exemption from licensed setting requirement. (a) The exemption under this
35.20 subdivision does not apply to the provision of respite care services to a child in foster care
35.21 under chapter 260C or 260D.
35.22(b) A license holder with a home and community-based services license may provide
35.23 out-of-home respite care services for children in an unlicensed residential setting if:
35.24(1) all background studies are completed according to the requirements in chapter 245C;
35.25(2) a child's case manager conducts and documents an assessment of the residential
35.26 setting and the setting's environment before services are provided and at least once each
35.27 calendar year thereafter if services continue to be provided at that residence. The assessment
35.28 must ensure that the setting is suitable for the child receiving respite care services. The
35.29 assessment must be conducted and documented in the manner prescribed by the
35.30 commissioner;
Article 2 Sec. 8.  35
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
36.1      (3) the child's legal representative visits the residence and signs and dates a statement
36.2  authorizing services in the residence before services are provided and at least once each
36.3  calendar year thereafter if services continue to be provided at that residence;
36.4      (4) the services are provided in a residential setting that is not licensed to provide any
36.5  other licensed services;
36.6      (5) the services are provided to no more than four children at any one time. Each child
36.7  must have an individual bedroom, except two siblings may share a bedroom;
36.8      (6) the services are not provided to children and adults over the age of 21 in the same
36.9  residence at the same time;
36.10     (7) the services are not provided to a single family for more than 46 calendar days in a
36.11 calendar year and no more than ten consecutive days;
36.12     (8) the license holder's license was not made conditional, suspended, or revoked during
36.13 the previous 24 months; and
36.14     (9) each individual in the residence at the time services are provided, other than
36.15 individuals receiving services, is an employee, as defined under section 245C.02, of the
36.16 license holder and has had a background study completed under chapter 245C. No other
36.17 household members or other individuals may be present in the residence while services are
36.18 provided.
36.19     (c) A child may not receive out-of-home respite care services in more than two unlicensed
36.20 residential settings in a calendar year.
36.21     (d) The license holder must ensure the requirements in this section are met.
36.22     Subd. 3. Documentation requirements. The license holder must maintain documentation
36.23 of the following:
36.24     (1) background studies completed under chapter 245C;
36.25     (2) service recipient records indicating the calendar dates and times when services were
36.26 provided;
36.27     (3) the case manager's initial residential setting assessment and each residential assessment
36.28 completed thereafter; and
36.29     (4) the legal representative's approval of the residential setting before services are
36.30 provided and each year thereafter.
Article 2 Sec. 8.  36
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
37.1      EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval,
37.2  whichever is later. The commissioner of human services shall inform the revisor of statutes
37.3  when federal approval is obtained.
37.4    Sec. 9. Minnesota Statutes 2024, section 252.32, subdivision 3, is amended to read:
37.5      Subd. 3. Amount of support grant; use. (a) Support grant amounts shall be determined
37.6  by the county social service agency. Services and items purchased with a support grant
37.7  must:
37.8      (1) be over and above the normal costs of caring for the dependent if the dependent did
37.9  not have a disability, including adaptive or one-on-one swimming lessons for drowning
37.10 prevention for a dependent younger than 12 years of age whose disability puts the dependent
37.11 at a higher risk of drowning according to the Centers for Disease Control Vital Statistics
37.12 System;
37.13     (2) be directly attributable to the dependent's disabling condition; and
37.14     (3) enable the family to delay or prevent the out-of-home placement of the dependent.
37.15     (b) The design and delivery of services and items purchased under this section must be
37.16 provided in the least restrictive environment possible, consistent with the needs identified
37.17 in the individual service plan.
37.18     (c) Items and services purchased with support grants must be those for which there are
37.19 no other public or private funds available to the family. Fees assessed to parents for health
37.20 or human services that are funded by federal, state, or county dollars are not reimbursable
37.21 through this program.
37.22     (d) In approving or denying applications, the county shall consider the following factors:
37.23     (1) the extent and areas of the functional limitations of a child with a disability;
37.24     (2) the degree of need in the home environment for additional support; and
37.25     (3) the potential effectiveness of the grant to maintain and support the person in the
37.26 family environment.
37.27     (e) The maximum monthly grant amount shall be $250 per eligible dependent, or $3,000
37.28 per eligible dependent per state fiscal year, within the limits of available funds and as
37.29 adjusted by any legislatively authorized cost of living adjustment. The county social service
37.30 agency may consider the dependent's Supplemental Security Income in determining the
37.31 amount of the support grant.
Article 2 Sec. 9.  37
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
38.1      (f) Any adjustments to their monthly grant amount must be based on the needs of the
38.2  family and funding availability.
38.3    Sec. 10. Minnesota Statutes 2024, section 256.476, subdivision 4, is amended to read:
38.4      Subd. 4. Support grants; criteria and limitations. (a) A county board may choose to
38.5  participate in the consumer support grant program. If a county has not chosen to participate
38.6  by July 1, 2002, the commissioner shall contract with another county or other entity to
38.7  provide access to residents of the nonparticipating county who choose the consumer support
38.8  grant option. The commissioner shall notify the county board in a county that has declined
38.9  to participate of the commissioner's intent to enter into a contract with another county or
38.10 other entity at least 30 days in advance of entering into the contract. The local agency shall
38.11 establish written procedures and criteria to determine the amount and use of support grants.
38.12 These procedures must include, at least, the availability of respite care, assistance with daily
38.13 living, and adaptive aids. The local agency may establish monthly or annual maximum
38.14 amounts for grants and procedures where exceptional resources may be required to meet
38.15 the health and safety needs of the person on a time-limited basis, however, the total amount
38.16 awarded to each individual may not exceed the limits established in subdivision 11.
38.17     (b) Support grants to a person, a person's legal representative, or other authorized
38.18 representative will be provided through a monthly subsidy payment and be in the form of
38.19 cash, voucher, or direct county payment to vendor. Support grant amounts must be determined
38.20 by the local agency. Each service and item purchased with a support grant must meet all of
38.21 the following criteria:
38.22     (1) it must be over and above the normal cost of caring for the person if the person did
38.23 not have functional limitations, including adaptive or one-on-one swimming lessons for
38.24 drowning prevention for a person younger than 12 years of age whose disability puts the
38.25 person at a higher risk of drowning according to the Centers for Disease Control Vital
38.26 Statistics System;
38.27     (2) it must be directly attributable to the person's functional limitations;
38.28     (3) it must enable the person, a person's legal representative, or other authorized
38.29 representative to delay or prevent out-of-home placement of the person; and
38.30     (4) it must be consistent with the needs identified in the service agreement, when
38.31 applicable.
38.32     (c) Items and services purchased with support grants must be those for which there are
38.33 no other public or private funds available to the person, a person's legal representative, or
Article 2 Sec. 10.  38
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
39.1  other authorized representative. Fees assessed to the person or the person's family for health
39.2  and human services are not reimbursable through the grant.
39.3      (d) In approving or denying applications, the local agency shall consider the following
39.4  factors:
39.5      (1) the extent and areas of the person's functional limitations;
39.6      (2) the degree of need in the home environment for additional support; and
39.7      (3) the potential effectiveness of the grant to maintain and support the person in the
39.8  family environment or the person's own home.
39.9      (e) At the time of application to the program or screening for other services, the person,
39.10 a person's legal representative, or other authorized representative shall be provided sufficient
39.11 information to ensure an informed choice of alternatives by the person, the person's legal
39.12 representative, or other authorized representative, if any. The application shall be made to
39.13 the local agency and shall specify the needs of the person or the person's legal representative
39.14 or other authorized representative, the form and amount of grant requested, the items and
39.15 services to be reimbursed, and evidence of eligibility for medical assistance.
39.16     (f) Upon approval of an application by the local agency and agreement on a support plan
39.17 for the person or the person's legal representative or other authorized representative, the
39.18 local agency shall make grants to the person or the person's legal representative or other
39.19 authorized representative. The grant shall be in an amount for the direct costs of the services
39.20 or supports outlined in the service agreement.
39.21     (g) Reimbursable costs shall not include costs for resources already available, such as
39.22 special education classes, day training and habilitation, case management, other services to
39.23 which the person is entitled, medical costs covered by insurance or other health programs,
39.24 or other resources usually available at no cost to the person or the person's legal representative
39.25 or other authorized representative.
39.26     (h) The state of Minnesota, the county boards participating in the consumer support
39.27 grant program, or the agencies acting on behalf of the county boards in the implementation
39.28 and administration of the consumer support grant program shall not be liable for damages,
39.29 injuries, or liabilities sustained through the purchase of support by the individual, the
39.30 individual's family, or the authorized representative under this section with funds received
39.31 through the consumer support grant program. Liabilities include but are not limited to:
39.32 workers' compensation liability, the Federal Insurance Contributions Act (FICA), or the
39.33 Federal Unemployment Tax Act (FUTA). For purposes of this section, participating county
Article 2 Sec. 10.  39
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
40.1  boards and agencies acting on behalf of county boards are exempt from the provisions of
40.2  section 268.035.
40.3    Sec. 11. Minnesota Statutes 2024, section 256B.0659, subdivision 17a, is amended to
40.4  read:
40.5      Subd. 17a. Enhanced rate. (a) An enhanced rate of 107.5 percent of the rate paid for
40.6  personal care assistance services shall be paid for services provided to persons who qualify
40.7  for ten or more hours of personal care assistance services per day when provided by a
40.8  personal care assistant who meets the requirements of subdivision 11, paragraph (d). This
40.9  paragraph expires upon the effective date of paragraph (b).
40.10     (b) Effective January 1, 2026, or upon federal approval, whichever is later, an enhanced
40.11 rate of 112.5 percent of the rate paid for personal care assistance services shall be paid for
40.12 services provided to persons who qualify for ten or more hours of personal care assistance
40.13 services per day when provided by a personal care assistant who meets the requirements of
40.14 subdivision 11, paragraph (d).
40.15     (b) (c) A personal care assistance provider must use all additional revenue attributable
40.16 to the rate enhancements under this subdivision for the wages and wage-related costs of the
40.17 personal care assistants, including any corresponding increase in the employer's share of
40.18 FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers'
40.19 compensation premiums. The agency must not use the additional revenue attributable to
40.20 any enhanced rate under this subdivision to pay for mileage reimbursement, health and
40.21 dental insurance, life insurance, disability insurance, long-term care insurance, uniform
40.22 allowance, contributions to employee retirement accounts, or any other employee benefits.
40.23     (c) (d) Any change in the eligibility criteria for the enhanced rate for personal care
40.24 assistance services as described in this subdivision and referenced in subdivision 11,
40.25 paragraph (d), does not constitute a change in a term or condition for individual providers
40.26 as defined in section 256B.0711, and is not subject to the state's obligation to meet and
40.27 negotiate under chapter 179A.
40.28     EFFECTIVE DATE. This section is effective the day following final enactment.
40.29   Sec. 12. Minnesota Statutes 2024, section 256B.0911, subdivision 1, is amended to read:
40.30     Subdivision 1. Purpose and goal. (a) The purpose of long-term care consultation services
40.31 is to assist persons with long-term or chronic care needs in making care decisions and
40.32 selecting support and service options that meet their needs and reflect their preferences.
Article 2 Sec. 12.  40
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
41.1  The availability of, and access to, information and other types of assistance, including
41.2  long-term care consultation assessment and support planning, is also intended to prevent
41.3  or delay institutional placements and to provide access to transition assistance after
41.4  placement. Further, the goal of long-term care consultation services is to contain costs
41.5  associated with unnecessary institutional admissions. Long-term care consultation services
41.6  must be available to any person regardless of public program eligibility.
41.7      (b) The commissioner of human services shall seek to maximize use of available federal
41.8  and state funds and establish the broadest program possible within the funding available.
41.9      (c) Long-term care consultation services must be coordinated with long-term care options
41.10 counseling, long-term care options counseling for assisted living at critical care transitions,
41.11 the Disability Hub, and preadmission screening.
41.12     (d) A lead agency providing long-term care consultation services shall encourage the
41.13 use of volunteers from families, religious organizations, social clubs, and similar civic and
41.14 service organizations to provide community-based services.
41.15   Sec. 13. Minnesota Statutes 2024, section 256B.0911, subdivision 10, is amended to read:
41.16     Subd. 10. Definitions. (a) For purposes of this section, the following definitions apply.
41.17     (b) "Available service and setting options" or "available options," with respect to the
41.18 home and community-based waivers under chapter 256S and sections 256B.092 and 256B.49,
41.19 means all services and settings defined under the waiver plan for which a waiver applicant
41.20 or waiver participant is eligible.
41.21     (c) "Competitive employment" means work in the competitive labor market that is
41.22 performed on a full-time or part-time basis in an integrated setting, and for which an
41.23 individual is compensated at or above the minimum wage, but not less than the customary
41.24 wage and level of benefits paid by the employer for the same or similar work performed by
41.25 individuals without disabilities.
41.26     (d) "Cost-effective" means community services and living arrangements that cost the
41.27 same as or less than institutional care. For an individual found to meet eligibility criteria
41.28 for home and community-based service programs under chapter 256S or section 256B.49,
41.29 "cost-effectiveness" has the meaning found in the federally approved waiver plan for each
41.30 program.
41.31     (e) "Independent living" means living in a setting that is not controlled by a provider.
41.32     (f) "Informed choice" has the meaning given in section 256B.4905, subdivision 1a.
Article 2 Sec. 13.  41
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
42.1(g) "Lead agency" means a county administering or a Tribe or health plan under contract
42.2  with the commissioner to administer long-term care consultation services.
42.3(h) "Long-term care consultation services" means the activities described in subdivision
42.4  11.
42.5(i) "Long-term care options counseling" means the services provided by sections 256.01,
42.6  subdivision 24, and 256.975, subdivision 7, and also includes telephone assistance and
42.7  follow-up after a long-term care consultation assessment has been completed.
42.8(j) "Long-term care options counseling for assisted living at critical care transitions"
42.9  means the services provided under section 256.975, subdivisions subdivision 7e to 7g.
42.10(k) "Minnesota health care programs" means the medical assistance program under this
42.11 chapter and the alternative care program under section 256B.0913.
42.12(l) "Person-centered planning" is a process that includes the active participation of a
42.13 person in the planning of the person's services, including in making meaningful and informed
42.14 choices about the person's own goals, talents, and objectives, as well as making meaningful
42.15 and informed choices about the services the person receives, the settings in which the person
42.16 receives the services, and the setting in which the person lives.
42.17(m) "Preadmission screening" means the services provided under section 256.975,
42.18 subdivisions 7a to 7c.
42.19   Sec. 14. Minnesota Statutes 2024, section 256B.0911, subdivision 13, is amended to read:
42.20Subd. 13. MnCHOICES assessor qualifications, training, and certification. (a) The
42.21 commissioner shall develop and implement a curriculum and an assessor certification
42.22 process.
42.23(b) MnCHOICES certified assessors must have received training and certification specific
42.24 to assessment and consultation for long-term care services in the state and either:
42.25(1) either have a bachelor's at least an associate's degree in social work human services,
42.26 or other closely related field;
42.27(2) have at least an associate's degree in nursing with a public health nursing certificate,
42.28 or other closely related field; or
42.29(3) be a registered nurse; and.
42.30(2) have received training and certification specific to assessment and consultation for
42.31 long-term care services in the state.
Article 2 Sec. 14.  42
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
43.1      (c) Certified assessors shall demonstrate best practices in assessment and support
43.2  planning, including person-centered planning principles, and have a common set of skills
43.3  that ensures consistency and equitable access to services statewide.
43.4      (d) Certified assessors must be recertified every three years.
43.5      EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
43.6  whichever is later. The commissioner of human services shall notify the revisor of statutes
43.7  when federal approval is obtained.
43.8    Sec. 15. Minnesota Statutes 2024, section 256B.0911, subdivision 14, is amended to read:
43.9      Subd. 14. Use of MnCHOICES certified assessors required. (a) Each lead agency
43.10 shall use MnCHOICES certified assessors who have completed MnCHOICES training and
43.11 the certification process determined by the commissioner in subdivision 13.
43.12     (b) Each lead agency must ensure that the lead agency has sufficient numbers of certified
43.13 assessors to provide long-term consultation assessment and support planning within the
43.14 timelines and parameters of the service.
43.15     (c) A lead agency may choose, according to departmental policies, to contract with a
43.16 qualified, certified assessor to conduct assessments and reassessments on behalf of the lead
43.17 agency.
43.18     (d) Tribes and health plans under contract with the commissioner must provide long-term
43.19 care consultation services as specified in the contract.
43.20     (e) A lead agency must provide the commissioner with an administrative contact for
43.21 communication purposes.
43.22     (f) A lead agency may contract under this subdivision with any hospital licensed under
43.23 sections 144.50 to 144.56 to conduct assessments of patients in the hospital on behalf of
43.24 the lead agency when the lead agency has failed to meet its obligations under subdivision
43.25 17. The contracted assessment must be conducted by a hospital employee who is a qualified,
43.26 certified assessor. The hospital employees who perform assessments under the contract
43.27 between the hospital and the lead agency may perform assessments in addition to other
43.28 duties assigned to the employee by the hospital, except the hospital employees who perform
43.29 the assessments under contract with the lead agency must not perform any waiver-related
43.30 tasks other than assessments. Hospitals are not eligible for reimbursement under subdivision
43.31 33. The lead agency that enters into a contract with a hospital under this paragraph is
43.32 responsible for oversight, compliance, and quality assurance for all assessments performed
43.33 under the contract.
Article 2 Sec. 15.  43
06/07/25  REVISOR       DTT/RC  25-05696  as introduced
44.1    Sec. 16. Minnesota Statutes 2024, section 256B.0911, subdivision 17, is amended to read:
44.2      Subd. 17. MnCHOICES assessments. (a) A person requesting long-term care
44.3  consultation services must be visited by a long-term care consultation team must begin an
44.4  assessment of a person requesting long-term care consultation services or for whom long-term
44.5  care consultation services were recommended, including an estimated timeline to full
44.6  completion of the assessment, within 20 working days after the date on which an assessment
44.7  was requested or recommended.
44.8      (b) Assessments must be conducted according to this subdivision and subdivisions 19
44.9  to 21, 23, 24, and 29 to 31.
44.10     (b) (c) Lead agencies shall use certified assessors to conduct the assessment.
44.11     (c) (d) For a person with complex health care needs, a public health or registered nurse
44.12 from the team must be consulted.
44.13     (d) (e) The lead agency must use the MnCHOICES assessment provided by the
44.14 commissioner to complete a comprehensive, conversation-based, person-centered assessment.
44.15 The assessment must include the health, psychological, functional, environmental, and
44.16 social needs of the individual necessary to develop a person-centered assessment summary
44.17 that meets the individual's needs and preferences.
44.18     (e) (f) Except as provided in subdivision 24, an assessment must be conducted by a
44.19 certified assessor in an in-person conversational interview with the person being assessed.
44.20   Sec. 17. Minnesota Statutes 2024, section 256B.0911, subdivision 24, is amended to read:
44.21     Subd. 24. Remote reassessments. (a) Assessments performed according to subdivisions
44.22 17 to 20 and 23 must be in person unless the assessment is a reassessment meeting the
44.23 requirements of this subdivision. Remote reassessments conducted by interactive video or
44.24 telephone may substitute for in-person reassessments.
44.25     (b) For services provided by the developmental disabilities waiver under section
44.26 256B.092, and the community access for disability inclusion, community alternative care,
44.27 and brain injury waiver programs under section 256B.49, remote reassessments may be
44.28 substituted for two four consecutive reassessments if followed by an in-person reassessment.
44.29     (c) For services provided by alternative care under section 256B.0913, essential
44.30 community supports under section 256B.0922, and the elderly waiver under chapter 256S,
44.31 remote reassessments may be substituted for one reassessment if followed by an in-person
44.32 reassessment.
Article 2 Sec. 17.  44
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
45.1      (d) For personal care assistance provided under section 256B.0659 and community first
45.2  services and supports provided under section 256B.85, remote reassessments may be
45.3  substituted for two consecutive reassessments if followed by an in-person reassessment.
45.4      (e) A remote reassessment is permitted only if the lead agency provides informed choice
45.5  and the person being reassessed or the person's legal representative provides informed
45.6  consent for a remote assessment. Lead agencies must document that informed choice was
45.7  offered.
45.8      (f) The person being reassessed, or the person's legal representative, may refuse a remote
45.9  reassessment at any time.
45.10     (g) During a remote reassessment, if the certified assessor determines an in-person
45.11 reassessment is necessary in order to complete the assessment, the lead agency shall schedule
45.12 an in-person reassessment.
45.13     (h) All other requirements of an in-person reassessment apply to a remote reassessment,
45.14 including updates to a person's support plan.
45.15     EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval,
45.16 whichever is later. The commissioner of human services shall notify the revisor of statutes
45.17 when federal approval is obtained.
45.18   Sec. 18. Minnesota Statutes 2024, section 256B.0911, is amended by adding a subdivision
45.19 to read:
45.20     Subd. 24a. Verbal attestation or alternative to replace required reassessment
45.21 signatures. (a) Effective January 1, 2026, or upon federal approval, whichever is later, the
45.22 commissioner shall allow for verbal attestation or another alternative to replace required
45.23 reassessment signatures for service initiation.
45.24     (b) Within 30 days of completion of a reassessment, an assessor must send a request for
45.25 written attestation via mail to obtain a signature from the service recipient.
45.26     EFFECTIVE DATE. This section is effective the day following final enactment.
45.27   Sec. 19. Minnesota Statutes 2024, section 256B.0911, is amended by adding a subdivision
45.28 to read:
45.29     Subd. 25a. Attesting to no changes in needs or services. (a) A person who is older
45.30 than 21 years of age, under 65 years of age, and receiving home and community-based
45.31 waiver services under the developmental disabilities waiver program under section 256B.092;
Article 2 Sec. 19.  45
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
46.1  community access for disability inclusion, community alternative care, and brain injury
46.2  waiver programs under section 256B.49; or community first services and supports under
46.3  section 256B.85 may attest that the person has unchanged needs from the most recent prior
46.4  assessment or reassessment for up to two consecutive reassessments if the lead agency
46.5  provides informed choice and the person being reassessed or the person's legal representative
46.6  provides informed consent. Lead agencies must document that informed choice was offered.
46.7      (b) The person or person's legal representative must attest, verbally or through alternative
46.8  communications, that the information provided in the previous assessment or reassessment
46.9  is still accurate and applicable and that no changes in the person's circumstances have
46.10 occurred that would require changes from the most recent prior assessment or reassessment.
46.11 The person or the person's legal representative may request a full reassessment at any time.
46.12     (c) The assessor must review the most recent prior assessment or reassessment as required
46.13 in subdivision 22, paragraphs (a) and (b), clause (1), before conducting the interview. The
46.14 certified assessor must confirm that the information from the previous assessment or
46.15 reassessment is current.
46.16     (d) The assessment conducted under this section must:
46.17     (1) verify current assessed support needs;
46.18     (2) confirm continued need for the currently assessed level of care;
46.19     (3) inform the person of alternative long-term services and supports available;
46.20     (4) provide informed choice of institutional or home and community-based services;
46.21 and
46.22     (5) identify changes in need that may require a full reassessment.
46.23     (e) The assessor must ensure that any new assessment items or requirements mandated
46.24 by federal or state authority are addressed and the person must provide required information.
46.25     (f) The person has appeal rights under section 256.045, subdivision 3, if the assessor
46.26 does not confirm that there are no changes in needs or services.
46.27     EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval,
46.28 whichever is later. The commissioner of human services shall notify the revisor of statutes
46.29 when federal approval is obtained.
Article 2 Sec. 19.  46
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
47.1    Sec. 20. Minnesota Statutes 2024, section 256B.0911, subdivision 30, is amended to read:
47.2      Subd. 30. Assessment and support planning; supplemental information. The lead
47.3  agency must give the person receiving long-term care consultation services or the person's
47.4  legal representative materials and forms supplied by the commissioner containing the
47.5  following information:
47.6      (1) written recommendations for community-based services and consumer-directed
47.7  options;
47.8      (2) documentation that the most cost-effective alternatives available were offered to the
47.9  person;
47.10     (3) the need for and purpose of preadmission screening conducted by long-term care
47.11 options counselors according to section 256.975, subdivisions 7a to 7c, if the person selects
47.12 nursing facility placement. If the person selects nursing facility placement, the lead agency
47.13 shall forward information needed to complete the level of care determinations and screening
47.14 for developmental disability and mental illness collected during the assessment to the
47.15 long-term care options counselor using forms provided by the commissioner;
47.16     (4) the role of long-term care consultation assessment and support planning in eligibility
47.17 determination for waiver and alternative care programs and state plan home care, case
47.18 management, and other services as defined in subdivision 11, clauses (7) to (10);
47.19     (5) information about Minnesota health care programs;
47.20     (6) the person's freedom to accept or reject the recommendations of the team;
47.21     (7) the person's right to confidentiality under the Minnesota Government Data Practices
47.22 Act, chapter 13;
47.23     (8) the certified assessor's decision regarding the person's need for institutional level of
47.24 care as determined under criteria established in subdivision 26 and regarding eligibility for
47.25 all services and programs as defined in subdivision 11, clauses (7) to (10);
47.26     (9) the person's right to appeal the certified assessor's decision regarding eligibility for
47.27 all services and programs as defined in subdivision 11, clauses (5), (7) to (10), and (15),
47.28 and the decision regarding the need for institutional level of care, an attestation to no changes
47.29 in needs or services, or the lead agency's final decisions regarding public programs eligibility
47.30 according to section 256.045, subdivision 3. The certified assessor must verbally
47.31 communicate this appeal right to the person and must visually point out where in the
47.32 document the right to appeal is stated; and
Article 2 Sec. 20.  47
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
48.1      (10) documentation that available options for employment services, independent living,
48.2  and self-directed services and supports were described to the person.
48.3    Sec. 21. Minnesota Statutes 2024, section 256B.0911, is amended by adding a subdivision
48.4  to read:
48.5      Subd. 34. Dashboard on assessment completions. (a) The commissioner shall maintain
48.6  a dashboard on the department's public website containing summary data on the completion
48.7  of assessments under this section. The commissioner must update the dashboard at least
48.8  twice per year.
48.9      (b) The dashboard must include:
48.10     (1) the total number of assessments performed since the previous reporting period, by
48.11 lead agency;
48.12     (2) the total number of initial assessments performed since the previous reporting period,
48.13 by lead agency;
48.14     (3) the total number of reassessments performed since the previous reporting period, by
48.15 lead agency;
48.16     (4) the number and percentage of assessments completed within the required timeline,
48.17 by lead agency;
48.18     (5) the average length of time to complete an assessment, by lead agency;
48.19     (6) summary data of the location in which the assessments were performed, by lead
48.20 agency; and
48.21     (7) other information the commissioner determines is valuable to assess the capacity of
48.22 lead agencies to complete assessments within the timelines prescribed by law.
48.23     EFFECTIVE DATE. This section is effective January 1, 2026.
48.24   Sec. 22. Minnesota Statutes 2024, section 256B.092, subdivision 1a, as amended by Laws
48.25 2025, chapter 38, article 1, section 16, is amended to read:
48.26     Subd. 1a. Case management services. (a) Each recipient of a home and community-based
48.27 waiver shall be provided case management services by qualified vendors as described in
48.28 the federally approved waiver application.
48.29     (b) Case management service activities provided to or arranged for a person include:
48.30     (1) development of the person-centered support plan under subdivision 1b;
Article 2 Sec. 22.  48
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
49.1      (2) informing the individual or the individual's legal guardian or conservator, or parent
49.2  if the person is a minor, of service options, including all service options available under the
49.3  waiver plan;
49.4      (3) consulting with relevant medical experts or service providers;
49.5      (4) assisting the person in the identification of potential providers of chosen services,
49.6  including:
49.7      (i) providers of services provided in a non-disability-specific setting;
49.8      (ii) employment service providers;
49.9      (iii) providers of services provided in settings that are not controlled by a provider; and
49.10     (iv) providers of financial management services;
49.11     (5) assisting the person to access services and assisting in appeals under section 256.045;
49.12     (6) coordination of services, if coordination is not provided by another service provider;
49.13     (7) evaluation and monitoring of the services identified in the support plan, which must
49.14 incorporate at least one annual face-to-face visit by the case manager with each person; and
49.15     (8) reviewing support plans and providing the lead agency with recommendations for
49.16 service authorization based upon the individual's needs identified in the support plan.
49.17     (c) Case management service activities that are provided to the person with a
49.18 developmental disability shall be provided directly by county agencies or under contract.
49.19 If a county agency contracts for case management services, the county agency must provide
49.20 each recipient of home and community-based services who is receiving contracted case
49.21 management services with the contact information the recipient may use to file a grievance
49.22 with the county agency about the quality of the contracted services the recipient is receiving
49.23 from a county-contracted case manager. If a county agency provides case management
49.24 under contracts with other individuals or agencies and the county agency utilizes a
49.25 competitive proposal process for the procurement of contracted case management services,
49.26 the competitive proposal process must include evaluation criteria to ensure that the county
49.27 maintains a culturally responsive program for case management services adequate to meet
49.28 the needs of the population of the county. For the purposes of this section, "culturally
49.29 responsive program" means a case management services program that: (1) ensures effective,
49.30 equitable, comprehensive, and respectful quality care services that are responsive to
49.31 individuals within a specific population's values, beliefs, practices, health literacy, preferred
Article 2 Sec. 22.  49
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
50.1  language, and other communication needs; and (2) is designed to address the unique needs
50.2  of individuals who share a common language or racial, ethnic, or social background.
50.3      (d) Case management services must be provided by a public or private agency that is
50.4  enrolled as a medical assistance provider determined by the commissioner to meet all of
50.5  the requirements in the approved federal waiver plans. Case management services must not
50.6  be provided to a recipient by a private agency that has a financial interest in the provision
50.7  of any other services included in the recipient's support plan. For purposes of this section,
50.8  "private agency" means any agency that is not identified as a lead agency under section
50.9  256B.0911, subdivision 10.
50.10     (e) Case managers are responsible for service provisions listed in paragraphs (a) and
50.11 (b). Case managers shall collaborate with consumers, families, legal representatives, and
50.12 relevant medical experts and service providers in the development and annual review of the
50.13 person-centered support plan and habilitation plan.
50.14     (f) For persons who need a positive support transition plan as required in chapter 245D,
50.15 the case manager shall participate in the development and ongoing evaluation of the plan
50.16 with the expanded support team. At least quarterly, the case manager, in consultation with
50.17 the expanded support team, shall evaluate the effectiveness of the plan based on progress
50.18 evaluation data submitted by the licensed provider to the case manager. The evaluation must
50.19 identify whether the plan has been developed and implemented in a manner to achieve the
50.20 following within the required timelines:
50.21     (1) phasing out the use of prohibited procedures;
50.22     (2) acquisition of skills needed to eliminate the prohibited procedures within the plan's
50.23 timeline; and
50.24     (3) accomplishment of identified outcomes.
50.25 If adequate progress is not being made, the case manager shall consult with the person's
50.26 expanded support team to identify needed modifications and whether additional professional
50.27 support is required to provide consultation.
50.28     (g) The Department of Human Services shall offer ongoing education in case management
50.29 to case managers. Case managers shall receive no less than 20 hours of case management
50.30 education and disability-related training each year. The education and training must include
50.31 appropriate service authorization, person-centered planning, informed choice, informed
50.32 decision making, cultural competency, employment planning, community living planning,
50.33 self-direction options, and use of technology supports. Case managers must annually complete
Article 2 Sec. 22.  50
06/07/25  REVISOR       DTT/RC  25-05696  as introduced
51.1  an informed choice curriculum and pass a competency evaluation, in a form determined by
51.2  the commissioner, on informed decision-making standards. By August 1, 2024, all case
51.3  managers must complete an employment support training course identified by the
51.4  commissioner of human services. For case managers hired after August 1, 2024, this training
51.5  must be completed within the first six months of providing case management services. For
51.6  the purposes of this section, "person-centered planning" or "person-centered" has the meaning
51.7  given in section 256B.0911, subdivision 10. Case managers must document completion of
51.8  training in a system identified by the commissioner.
51.9    Sec. 23. Minnesota Statutes 2024, section 256B.092, subdivision 3, is amended to read:
51.10     Subd. 3. Authorization and termination of services. County agency case managers,
51.11 under rules of the commissioner, shall authorize and terminate services of community and
51.12 regional treatment center providers according to support plans. Except as provided in
51.13 subdivision 3b, services provided to persons with developmental disabilities may only be
51.14 authorized and terminated by case managers or certified assessors according to (1) rules of
51.15 the commissioner and (2) the support plan as defined in subdivision 1b. Medical assistance
51.16 services not needed shall not be authorized by county agencies or funded by the
51.17 commissioner. When purchasing or arranging for unlicensed respite care services for persons
51.18 with overriding health needs, the county agency shall seek the advice of a health care
51.19 professional in assessing provider staff training needs and skills necessary to meet the
51.20 medical needs of the person.
51.21   Sec. 24. Minnesota Statutes 2024, section 256B.092, is amended by adding a subdivision
51.22 to read:
51.23     Subd. 3b. Service authorizations and service agreements. (a) Recipients must be
51.24 screened and authorized for services according to the federally approved waiver application
51.25 and its subsequent amendments.
51.26     (b) The commissioner must require lead agency supervisors to review and accept all
51.27 service agreements entered by lead agency staff into the Medicaid management information
51.28 system (MMIS) prior to the commissioner's approval of the service agreement.
51.29     (c) For a service agreement with a proposed total authorized amount that exceeds the
51.30 total authorized amount in the recipient's prior service agreement by more than the value
51.31 of legislatively enacted rate increases, the commissioner must manually review and manually
51.32 approve the service agreement in the MMIS. For purposes of this paragraph, "prior service
Article 2 Sec. 24.  51
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
52.1  agreement" means the service agreement that was in effect 12 months prior to the start date
52.2  of the new proposed service agreement.
52.3      (d) In a format prescribed by the commissioner, lead agencies must submit the following
52.4  information for all service agreements subject to the commissioner's approval in paragraph
52.5  (c):
52.6      (1) changes in the number of units authorized;
52.7      (2) new services authorized;
52.8      (3) changes in the values used to calculate service rates under section 256B.4914, except
52.9  for automatic adjustments required under section 256B.4914, subdivisions 5 and 5b;
52.10     (4) changes in the person's level of need that require an increase in the amount of services
52.11 authorized;
52.12     (5) documentation detailing why the previous amount of services is not sufficient to
52.13 meet the person's needs; and
52.14     (6) anticipated impact if the total service amount is not increased to the proposed amount.
52.15     (e) Except for rate increases required under section 256B.4914, subdivisions 5 and 5b,
52.16 and rate changes authorized by the 2025 legislature, the commissioner must not approve
52.17 service agreements under paragraph (c) that are not the result of either a documented change
52.18 in a person's assessed needs or documented evidence that the previous level of service was
52.19 insufficient to meet the person's assessed needs.
52.20     (f) This subdivision expires upon full implementation of waiver reimagine. The
52.21 commissioner must inform the revisor of statutes when waiver reimagine is fully
52.22 implemented.
52.23   Sec. 25. Minnesota Statutes 2024, section 256B.0924, subdivision 6, is amended to read:
52.24     Subd. 6. Payment for targeted case management. (a) Medical assistance and
52.25 MinnesotaCare payment for targeted case management shall be made on a monthly basis.
52.26 In order to receive payment for an eligible adult, the provider must document at least one
52.27 contact per month and not more than two consecutive months without a face-to-face contact
52.28 either in person or by interactive video that meets the requirements in section 256B.0625,
52.29 subdivision 20b, with the adult or the adult's legal representative, family, primary caregiver,
52.30 or other relevant persons identified as necessary to the development or implementation of
52.31 the goals of the personal service plan.
Article 2 Sec. 25.  52
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
53.1      (b) Except as provided under paragraph (m), payment for targeted case management
53.2  provided by county staff under this subdivision shall be based on the monthly rate
53.3  methodology under section 256B.094, subdivision 6, paragraph (b), calculated as one
53.4  combined average rate together with adult mental health case management under section
53.5  256B.0625, subdivision 20, except for calendar year 2002. In calendar year 2002, the rate
53.6  for case management under this section shall be the same as the rate for adult mental health
53.7  case management in effect as of December 31, 2001. Billing and payment must identify the
53.8  recipient's primary population group to allow tracking of revenues.
53.9      (c) Payment for targeted case management provided by county-contracted vendors shall
53.10 be based on a monthly rate calculated in accordance with section 256B.076, subdivision 2.
53.11 The rate must not exceed the rate charged by the vendor for the same service to other payers.
53.12 If the service is provided by a team of contracted vendors, the team shall determine how to
53.13 distribute the rate among its members. No reimbursement received by contracted vendors
53.14 shall be returned to the county, except to reimburse the county for advance funding provided
53.15 by the county to the vendor.
53.16     (d) If the service is provided by a team that includes contracted vendors and county staff,
53.17 the costs for county staff participation on the team shall be included in the rate for
53.18 county-provided services. In this case, the contracted vendor and the county may each
53.19 receive separate payment for services provided by each entity in the same month. In order
53.20 to prevent duplication of services, the county must document, in the recipient's file, the need
53.21 for team targeted case management and a description of the different roles of the team
53.22 members.
53.23     (e) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs for
53.24 targeted case management shall be provided by the recipient's county of responsibility, as
53.25 defined in sections 256G.01 to 256G.12, from sources other than federal funds or funds
53.26 used to match other federal funds.
53.27     (f) The commissioner may suspend, reduce, or terminate reimbursement to a provider
53.28 that does not meet the reporting or other requirements of this section. The county of
53.29 responsibility, as defined in sections 256G.01 to 256G.12, is responsible for any federal
53.30 disallowances. The county may share this responsibility with its contracted vendors.
53.31     (g) The commissioner shall set aside five percent of the federal funds received under
53.32 this section for use in reimbursing the state for costs of developing and implementing this
53.33 section.
Article 2 Sec. 25.  53
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
54.1      (h) Payments to counties for targeted case management expenditures under this section
54.2  shall only be made from federal earnings from services provided under this section. Payments
54.3  to contracted vendors shall include both the federal earnings and the county share.
54.4      (i) Notwithstanding section 256B.041, county payments for the cost of case management
54.5  services provided by county staff shall not be made to the commissioner of management
54.6  and budget. For the purposes of targeted case management services provided by county
54.7  staff under this section, the centralized disbursement of payments to counties under section
54.8  256B.041 consists only of federal earnings from services provided under this section.
54.9      (j) If the recipient is a resident of a nursing facility, intermediate care facility, or hospital,
54.10 and the recipient's institutional care is paid by medical assistance, payment for targeted case
54.11 management services under this subdivision is limited to the lesser of:
54.12     (1) the last 180 days of the recipient's residency in that facility; or
54.13     (2) the limits and conditions which apply to federal Medicaid funding for this service.
54.14     (k) Payment for targeted case management services under this subdivision shall not
54.15 duplicate payments made under other program authorities for the same purpose.
54.16     (l) Any growth in targeted case management services and cost increases under this
54.17 section shall be the responsibility of the counties.
54.18     (m) The commissioner may make payments for Tribes according to section 256B.0625,
54.19 subdivision 34, or other relevant federally approved rate setting methodologies for vulnerable
54.20 adult and developmental disability targeted case management provided by Indian health
54.21 services and facilities operated by a Tribe or Tribal organization.
54.22     EFFECTIVE DATE. This section is effective July 1, 2025.
54.23   Sec. 26. Minnesota Statutes 2024, section 256B.49, subdivision 13, as amended by Laws
54.24 2025, chapter 38, article 1, section 18, is amended to read:
54.25     Subd. 13. Case management. (a) Each recipient of a home and community-based waiver
54.26 shall be provided case management services by qualified vendors as described in the federally
54.27 approved waiver application. The case management service activities provided must include:
54.28     (1) finalizing the person-centered written support plan within the timelines established
54.29 by the commissioner and section 256B.0911, subdivision 29;
54.30     (2) informing the recipient or the recipient's legal guardian or conservator of service
54.31 options, including all service options available under the waiver plans;
Article 2 Sec. 26.  54
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
55.1      (3) assisting the recipient in the identification of potential service providers of chosen
55.2  services, including:
55.3      (i) available options for case management service and providers;
55.4      (ii) providers of services provided in a non-disability-specific setting;
55.5      (iii) employment service providers;
55.6      (iv) providers of services provided in settings that are not community residential settings;
55.7  and
55.8      (v) providers of financial management services;
55.9      (4) assisting the recipient to access services and assisting with appeals under section
55.10 256.045; and
55.11     (5) coordinating, evaluating, and monitoring of the services identified in the service
55.12 plan.
55.13     (b) The case manager may delegate certain aspects of the case management service
55.14 activities to another individual provided there is oversight by the case manager. The case
55.15 manager may not delegate those aspects which require professional judgment including:
55.16     (1) finalizing the person-centered support plan;
55.17     (2) ongoing assessment and monitoring of the person's needs and adequacy of the
55.18 approved person-centered support plan; and
55.19     (3) adjustments to the person-centered support plan.
55.20     (c) Case management services must be provided by a public or private agency that is
55.21 enrolled as a medical assistance provider determined by the commissioner to meet all of
55.22 the requirements in the approved federal waiver plans. If a county agency provides case
55.23 management under contracts with other individuals or agencies and the county agency
55.24 utilizes a competitive proposal process for the procurement of contracted case management
55.25 services, the competitive proposal process must include evaluation criteria to ensure that
55.26 the county maintains a culturally responsive program for case management services adequate
55.27 to meet the needs of the population of the county. For the purposes of this section, "culturally
55.28 responsive program" means a case management services program that: (1) ensures effective,
55.29 equitable, comprehensive, and respectful quality care services that are responsive to
55.30 individuals within a specific population's values, beliefs, practices, health literacy, preferred
55.31 language, and other communication needs; and (2) is designed to address the unique needs
55.32 of individuals who share a common language or racial, ethnic, or social background.
Article 2 Sec. 26.  55
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
56.1      (d) Case management services must not be provided to a recipient by a private agency
56.2  that has any financial interest in the provision of any other services included in the recipient's
56.3  support plan. For purposes of this section, "private agency" means any agency that is not
56.4  identified as a lead agency under section 256B.0911, subdivision 10.
56.5      (e) For persons who need a positive support transition plan as required in chapter 245D,
56.6  the case manager shall participate in the development and ongoing evaluation of the plan
56.7  with the expanded support team. At least quarterly, the case manager, in consultation with
56.8  the expanded support team, shall evaluate the effectiveness of the plan based on progress
56.9  evaluation data submitted by the licensed provider to the case manager. The evaluation must
56.10 identify whether the plan has been developed and implemented in a manner to achieve the
56.11 following within the required timelines:
56.12     (1) phasing out the use of prohibited procedures;
56.13     (2) acquisition of skills needed to eliminate the prohibited procedures within the plan's
56.14 timeline; and
56.15     (3) accomplishment of identified outcomes.
56.16 If adequate progress is not being made, the case manager shall consult with the person's
56.17 expanded support team to identify needed modifications and whether additional professional
56.18 support is required to provide consultation.
56.19     (f) The Department of Human Services shall offer ongoing education in case management
56.20 to case managers. Case managers shall receive no less than 20 hours of case management
56.21 education and disability-related training each year. The education and training must include
56.22 appropriate service authorization, person-centered planning, informed choice, informed
56.23 decision making, cultural competency, employment planning, community living planning,
56.24 self-direction options, and use of technology supports. Case managers must annually complete
56.25 an informed choice curriculum and pass a competency evaluation, in a form determined by
56.26 the commissioner, on informed decision-making standards. By August 1, 2024, all case
56.27 managers must complete an employment support training course identified by the
56.28 commissioner of human services. For case managers hired after August 1, 2024, this training
56.29 must be completed within the first six months of providing case management services. For
56.30 the purposes of this section, "person-centered planning" or "person-centered" has the meaning
56.31 given in section 256B.0911, subdivision 10. Case managers shall document completion of
56.32 training in a system identified by the commissioner.
Article 2 Sec. 26.  56
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
57.1    Sec. 27. Minnesota Statutes 2024, section 256B.49, is amended by adding a subdivision
57.2  to read:
57.3      Subd. 17a. Service authorizations and service agreements. (a) Recipients must be
57.4  screened and authorized for services according to the federally approved waiver application
57.5  and its subsequent amendments.
57.6      (b) The commissioner must require lead agency supervisors to review and accept all
57.7  service agreements entered by lead agency staff into the Medicaid management information
57.8  system (MMIS) prior to the commissioner's approval of the service agreement.
57.9      (c) For a service agreement with a proposed total authorized amount that exceeds the
57.10 total authorized amount in the recipient's prior service agreement by more than the value
57.11 of legislatively enacted rate increases, the commissioner must manually review and manually
57.12 approve the service agreement in the MMIS. For purposes of this paragraph, "prior service
57.13 agreement" means the service agreement that was in effect 12 months prior to the start date
57.14 of the new proposed service agreement.
57.15     (d) In a format prescribed by the commissioner, lead agencies must submit the following
57.16 information for all service agreements subject to the commissioner's approval in paragraph
57.17 (c):
57.18     (1) changes in the number of units authorized;
57.19     (2) new services authorized;
57.20     (3) changes in the values used to calculate service rates under section 256B.4914, except
57.21 for automatic adjustments required under section 256B.4914, subdivisions 5 and 5b;
57.22     (4) changes in the person's level of need that require an increase in the amount of services
57.23 authorized;
57.24     (5) documentation detailing why the previous amount of services is not sufficient to
57.25 meet the person's needs; and
57.26     (6) anticipated impact if the total service amount is not increased to the proposed amount.
57.27     (e) Except for rate increases required under section 256B.4914, subdivisions 5 and 5b,
57.28 and rate changes authorized by the 2025 legislature, the commissioner must not approve
57.29 service agreements under paragraph (c) that are not the result of either a documented change
57.30 in a person's assessed needs or documented evidence that the previous level of service was
57.31 insufficient to meet the person's assessed needs.
Article 2 Sec. 27.  57
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
58.1      (f) This subdivision expires upon full implementation of waiver reimagine. The
58.2  commissioner must inform the revisor of statutes when waiver reimagine is fully
58.3  implemented.
58.4    Sec. 28. Minnesota Statutes 2024, section 256B.49, subdivision 18, is amended to read:
58.5      Subd. 18. Payments. The commissioner shall reimburse approved vendors from the
58.6  medical assistance account for the costs of providing home and community-based services
58.7  to eligible recipients using the invoice processing procedures of the Medicaid management
58.8  information system (MMIS). Recipients will be screened and authorized for services
58.9  according to the federally approved waiver application and its subsequent amendments.
58.10   Sec. 29. [256B.4907] ADVISORY TASK FORCE ON WAIVER REIMAGINE.
58.11     Subdivision 1. Membership; co-chairs. (a) The Advisory Task Force on Waiver
58.12 Reimagine consists of the following members:
58.13     (1) one member of the house of representatives, appointed by the speaker of the house;
58.14     (2) one member of the house of representatives, appointed by the leader of the house of
58.15 representatives Democratic-Farmer-Labor caucus;
58.16     (3) one member of the senate, appointed by the senate majority leader;
58.17     (4) one member of the senate, appointed by the senate minority leader;
58.18     (5) four individuals currently receiving disability waiver services who are under the age
58.19 of 65, appointed by the governor;
58.20     (6) one county employee who conducts long-term care consultation services assessments
58.21 for persons under the age of 65, appointed by the Minnesota Association of County Social
58.22 Services Administrators;
58.23     (7) one representative of the Department of Human Services with knowledge of the
58.24 requirements for a provider to participate in disability waiver service programs and of the
58.25 administration of benefits, appointed by the commissioner of human services;
58.26     (8) one employee of the Minnesota Council on Disability, appointed by the Minnesota
58.27 Council on Disability;
58.28     (9) two representatives of disability advocacy organizations, appointed by the governor;
58.29     (10) two family members of individuals who are receiving disability waiver services,
58.30 appointed by the governor;
Article 2 Sec. 29.  58
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
59.1      (11) two providers of disability waiver services for persons who are under the age of
59.2  65, appointed by the governor;
59.3      (12) one employee from the Office of Ombudsman for Mental Health and Developmental
59.4  Disabilities, appointed by the ombudsman;
59.5      (13) one employee from the Olmstead Implementation Office, appointed by the director
59.6  of the office;
59.7      (14) the assistant commissioner of the Department of Human Services administration
59.8  that oversees disability services; and
59.9      (15) a member of the Minnesota Disability Law Center, appointed by the executive
59.10 director of Mid-Minnesota Legal Aid.
59.11     (b) Each appointing authority must make appointments by September 30, 2025.
59.12 Appointments made by an agency or commissioner may also be made by a designee.
59.13     (c) In making task force appointments, the governor must ensure representation from
59.14 greater Minnesota.
59.15     (d) The Office of Collaboration and Dispute Resolution must convene the task force.
59.16     (e) The task force members must elect co-chairs from the membership of the task force
59.17 at the first task force meeting.
59.18     Subd. 2. Meetings; administrative support. (a) The first meeting of the task force must
59.19 be convened no later than November 30, 2025. The task force must meet at least quarterly.
59.20 Meetings are subject to chapter 13D. The task force may meet by telephone or interactive
59.21 technology consistent with section 13D.015.
59.22     (b) The Department of Human Services shall provide meeting space and administrative
59.23 and research support to the task force.
59.24     Subd. 3. Duties. (a) The task force must make findings and recommendations related
59.25 to Waiver Reimagine in Minnesota, including but not limited to the following:
59.26     (1) consolidation of the existing four disability home and community-based waiver
59.27 service programs into two waiver programs;
59.28     (2) budgets based on the needs of the individual that are not tied to location of services,
59.29 including resources beyond those required to meet assessed needs that may be necessary
59.30 for the individual to live in the least restrictive environment;
Article 2 Sec. 29.  59
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
60.1      (3) criteria and processes for provider rate exceptions and individualized budget
60.2  exceptions;
60.3      (4) appropriate assessments, including the MnCHOICES 2.0 assessment tool, in
60.4  determining service needs and individualized budgets;
60.5      (5) covered services under each disability waiver program, including any proposed
60.6  adjustments to the menu of services;
60.7      (6) service planning and authorization processes for disability waiver services;
60.8      (7) a plan of support, financial and otherwise, to live in the person's own home and in
60.9  the most integrated setting as defined under Title 2 of the Americans with Disabilities Act
60.10 Integration Mandate and in Minnesota's Olmstead Plan;
60.11     (8) intended and unintended outcomes of Waiver Reimagine; and
60.12     (9) other items related to Waiver Reimagine as necessary.
60.13     (b) The task force must seek input from the public, counties, persons receiving disability
60.14 waiver services, families of persons receiving disability waiver services, providers, state
60.15 agencies, and advocacy groups.
60.16     (c) The task force must hold public meetings to gather information to fulfill the purpose
60.17 of the task force. The meetings must be accessible by remote participants.
60.18     (d) The Department of Human Services shall provide relevant data and research to the
60.19 task force to facilitate the task force's work.
60.20     Subd. 4. Compensation; expenses. Members of the task force may receive compensation
60.21 and expense reimbursement as provided in section 15.059, subdivision 3.
60.22     Subd. 5. Report. (a) The task force shall submit a report to the chairs and ranking
60.23 minority members of the legislative committees with jurisdiction over disability waiver
60.24 services no later than January 15, 2027, that describes any concerns or recommendations
60.25 related to Waiver Reimagine as identified by the task force.
60.26     (b) The report required under Laws 2021, First Special Session chapter 7, article 13,
60.27 section 75, subdivision 4, as amended by Laws 2024, chapter 108, article 1, section 28,
60.28 must be presented to the task force prior to December 15, 2026.
60.29     Subd. 6. Task force does not expire. Notwithstanding section 15.059, subdivision 6,
60.30 the task force under this section does not expire.
60.31     EFFECTIVE DATE. This section is effective the day following final enactment.
Article 2 Sec. 29.  60
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
61.1    Sec. 30. Minnesota Statutes 2024, section 256B.4914, subdivision 3, is amended to read:
61.2      Subd. 3. Applicable services. (a) Applicable services are those authorized under the
61.3  state's home and community-based services waivers under sections 256B.092 and 256B.49,
61.4  including the following, as defined in the federally approved home and community-based
61.5  services plan:
61.6      (1) 24-hour customized living;
61.7      (2) adult day services;
61.8      (3) adult day services bath;
61.9      (4) community residential services;
61.10     (5) customized living;
61.11     (6) day support services;
61.12     (7) employment development services;
61.13     (8) employment exploration services;
61.14     (9) employment support services;
61.15     (10) family residential services;
61.16     (11) individualized home supports;
61.17     (12) individualized home supports with family training;
61.18     (13) individualized home supports with training;
61.19     (14) integrated community supports;
61.20     (15) life sharing;
61.21     (16) effective until the effective date of clauses (17) and (18), night supervision;
61.22     (17) effective January 1, 2026, or upon federal approval, whichever is later, awake night
61.23 supervision;
61.24     (18) effective January 1, 2026, or upon federal approval, whichever is later, asleep night
61.25 supervision;
61.26     (17) (19) positive support services;
61.27     (18) (20) prevocational services;
61.28     (19) (21) residential support services;
Article 2 Sec. 30.  61
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
62.1      (20) respite services;
62.2      (21) (22) transportation services; and
62.3      (22) (23) other services as approved by the federal government in the state home and
62.4  community-based services waiver plan.
62.5      (b) Effective January 1, 2024, or upon federal approval, whichever is later, respite
62.6  services under paragraph (a), clause (20), are not an applicable service under this section.
62.7      EFFECTIVE DATE. This section is effective the day following final enactment.
62.8    Sec. 31. Minnesota Statutes 2024, section 256B.4914, subdivision 5, is amended to read:
62.9      Subd. 5. Base wage index; establishment and updates. (a) The base wage index is
62.10 established to determine staffing costs associated with providing services to individuals
62.11 receiving home and community-based services. For purposes of calculating the base wage,
62.12 Minnesota-specific wages taken from job descriptions and standard occupational
62.13 classification (SOC) codes from the Bureau of Labor Statistics as defined in the Occupational
62.14 Handbook must be used.
62.15     (b) The commissioner shall update establish the base wage index in subdivision 5a,
62.16 publish these updated values, and load them into the rate management system as follows:
62.17     (1) on January 1, 2022, based on wage data by SOC from the Bureau of Labor Statistics
62.18 available as of December 31, 2019;
62.19     (2) on January 1, 2024, based on wage data by SOC from the Bureau of Labor Statistics
62.20 published in March 2022.; and
62.21     (3) on January 1, 2026, and every two years thereafter, based on wage data by SOC from
62.22 the Bureau of Labor Statistics published in the spring approximately 21 months prior to the
62.23 scheduled update.
62.24     EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval,
62.25 whichever is later. The commissioner of human services shall notify the revisor of statutes
62.26 when federal approval is obtained.
62.27   Sec. 32. Minnesota Statutes 2024, section 256B.4914, subdivision 5a, is amended to read:
62.28     Subd. 5a. Base wage index; calculations. The base wage index must be calculated as
62.29 follows:
Article 2 Sec. 32.  62
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
63.1      (1) for supervisory staff, 100 percent of the median wage for community and social
63.2  services specialist (SOC code 21-1099), with the exception of the supervisor of positive
63.3  supports professional, positive supports analyst, and positive supports specialist, which is
63.4  100 percent of the median wage for clinical counseling and school psychologist (SOC code
63.5  19-3031);
63.6      (2) for registered nurse staff, 100 percent of the median wage for registered nurses (SOC
63.7  code 29-1141);
63.8      (3) for licensed practical nurse staff, 100 percent of the median wage for licensed practical
63.9  nurses (SOC code 29-2061);
63.10     (4) for residential asleep-overnight staff, the minimum wage in Minnesota for large
63.11 employers;
63.12     (5) for residential direct care staff, the sum of:
63.13     (i) 15 percent of the subtotal of 50 percent of the median wage for home health and
63.14 personal care aide (SOC code 31-1120); 30 percent of the median wage for nursing assistant
63.15 (SOC code 31-1131); and 20 percent of the median wage for social and human services
63.16 aide (SOC code 21-1093); and
63.17     (ii) 85 percent of the subtotal of 40 percent of the median wage for home health and
63.18 personal care aide (SOC code 31-1120); 20 percent of the median wage for nursing assistant
63.19 (SOC code 31-1131); 20 percent of the median wage for psychiatric technician (SOC code
63.20 29-2053); and 20 percent of the median wage for social and human services aide (SOC code
63.21 21-1093);
63.22     (6) for adult day services staff, 70 percent of the median wage for nursing assistant (SOC
63.23 code 31-1131); and 30 percent of the median wage for home health and personal care aide
63.24 (SOC code 31-1120);
63.25     (7) for day support services staff and prevocational services staff, 20 percent of the
63.26 median wage for nursing assistant (SOC code 31-1131); 20 percent of the median wage for
63.27 psychiatric technician (SOC code 29-2053); and 60 percent of the median wage for social
63.28 and human services aide (SOC code 21-1093);
63.29     (8) for positive supports analyst staff, 100 percent of the median wage for substance
63.30 abuse, behavioral disorder, and mental health counselor (SOC code 21-1018);
63.31     (9) for positive supports professional staff, 100 percent of the median wage for clinical
63.32 counseling and school psychologist (SOC code 19-3031);
Article 2 Sec. 32.  63
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
64.1      (10) for positive supports specialist staff, 100 percent of the median wage for psychiatric
64.2  technicians (SOC code 29-2053);
64.3      (11) for individualized home supports with family training staff, 20 percent of the median
64.4  wage for nursing aide (SOC code 31-1131); 30 percent of the median wage for community
64.5  social service specialist (SOC code 21-1099); 40 percent of the median wage for social and
64.6  human services aide (SOC code 21-1093); and ten percent of the median wage for psychiatric
64.7  technician (SOC code 29-2053);
64.8      (12) for individualized home supports with training services staff, 40 percent of the
64.9  median wage for community social service specialist (SOC code 21-1099); 50 percent of
64.10 the median wage for social and human services aide (SOC code 21-1093); and ten percent
64.11 of the median wage for psychiatric technician (SOC code 29-2053);
64.12     (13) for employment support services staff, 50 percent of the median wage for
64.13 rehabilitation counselor (SOC code 21-1015); and 50 percent of the median wage for
64.14 community and social services specialist (SOC code 21-1099);
64.15     (14) for employment exploration services staff, 50 percent of the median wage for
64.16 education, guidance, school, and vocational counselor (SOC code 21-1012); and 50 percent
64.17 of the median wage for community and social services specialist (SOC code 21-1099);
64.18     (15) for employment development services staff, 50 percent of the median wage for
64.19 education, guidance, school, and vocational counselors (SOC code 21-1012); and 50 percent
64.20 of the median wage for community and social services specialist (SOC code 21-1099);
64.21     (16) for individualized home support without training staff, 50 percent of the median
64.22 wage for home health and personal care aide (SOC code 31-1120); and 50 percent of the
64.23 median wage for nursing assistant (SOC code 31-1131); and
64.24     (17) effective until the effective date of clauses (18) and (19), for night supervision staff,
64.25 40 percent of the median wage for home health and personal care aide (SOC code 31-1120);
64.26 20 percent of the median wage for nursing assistant (SOC code 31-1131); 20 percent of the
64.27 median wage for psychiatric technician (SOC code 29-2053); and 20 percent of the median
64.28 wage for social and human services aide (SOC code 21-1093).;
64.29     (18) effective January 1, 2026, or upon federal approval, whichever is later, for awake
64.30 night supervision staff, 40 percent of the median wage for home health and personal care
64.31 aide (SOC code 31-1120); 20 percent of the median wage for nursing assistant (SOC code
64.32 31-1131); 20 percent the median wage for psychiatric technician (SOC code 29-2053); and
64.33 20 percent of the median wage for social and human services aid (SOC code 21-1093); and
Article 2 Sec. 32.  64
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
65.1      (19) effective January 1, 2026, or upon federal approval, whichever is later, for asleep
65.2  night supervision staff, the minimum wage in Minnesota for large employers.
65.3      EFFECTIVE DATE. This section is effective the day following final enactment.
65.4    Sec. 33. Minnesota Statutes 2024, section 256B.4914, subdivision 5b, is amended to read:
65.5      Subd. 5b. Standard component value adjustments. The commissioner shall update
65.6  the base wage index under subdivision 5a; client and programming support, transportation,
65.7  and program facility cost component values as required in subdivisions 6 to 9; and the rates
65.8  identified in subdivision 19 for changes in the Consumer Price Index. If the result of this
65.9  update exceeds eight percent, the commissioner shall implement a change to the base wage
65.10 index, component values, and rates under subdivision 19 of eight percent. If the result of
65.11 this update is less than eight percent, the commissioner shall implement the full value of
65.12 the change. The commissioner shall adjust these values higher or lower, publish these
65.13 updated values, and load them into the rate management system as follows:
65.14     (1) on January 1, 2022, by the percentage change in the CPI-U from the date of the
65.15 previous update to the data available on December 31, 2019;
65.16     (2) on January 1, 2024, by the percentage change in the CPI-U from the date of the
65.17 previous update to the data available as of December 31, 2022; and
65.18     (3) on January 1, 2026, and every two years thereafter, by the percentage change in the
65.19 CPI-U from the date of the previous update to the data available 24 months and one day
65.20 prior to the scheduled update.
65.21     EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval,
65.22 whichever is later. The commissioner of human services shall notify the revisor of statutes
65.23 when federal approval is obtained.
65.24   Sec. 34. Minnesota Statutes 2024, section 256B.4914, subdivision 8, is amended to read:
65.25     Subd. 8. Unit-based services with programming; component values and calculation
65.26 of payment rates. (a) For the purpose of this section, unit-based services with programming
65.27 include employment exploration services, employment development services, employment
65.28 support services, individualized home supports with family training, individualized home
65.29 supports with training, and positive support services provided to an individual outside of
65.30 any service plan for a day program or residential support service.
65.31     (b) Component values for unit-based services with programming are:
Article 2 Sec. 34.  65
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
66.1(1) competitive workforce factor: 6.7 percent;
66.2(2) supervisory span of control ratio: 11 percent;
66.3(3) employee vacation, sick, and training allowance ratio: 8.71 percent;
66.4(4) employee-related cost ratio: 23.6 percent;
66.5(5) program plan support ratio: 15.5 percent;
66.6(6) client programming and support ratio: 4.7 percent, updated as specified in subdivision
66.7  5b;
66.8(7) general administrative support ratio: 13.25 percent;
66.9(8) program-related expense ratio: 6.1 percent; and
66.10(9) absence and utilization factor ratio: 3.9 percent.
66.11(c) A unit of service for unit-based services with programming is 15 minutes.
66.12(d) Payments for unit-based services with programming must be calculated as follows,
66.13 unless the services are reimbursed separately as part of a residential support services or day
66.14 program payment rate:
66.15(1) determine the number of units of service to meet a recipient's needs;
66.16(2) determine the appropriate hourly staff wage rates derived by the commissioner as
66.17 provided in subdivisions 5 and 5a;
66.18(3) except for subdivision 5a, clauses (1) to (4), multiply the result of clause (2) by the
66.19 product of one plus the competitive workforce factor;
66.20(4) for a recipient requiring customization for deaf and hard-of-hearing language
66.21 accessibility under subdivision 12, add the customization rate provided in subdivision 12
66.22 to the result of clause (3);
66.23(5) multiply the number of direct staffing hours by the appropriate staff wage;
66.24(6) multiply the number of direct staffing hours by the product of the supervisory span
66.25 of control ratio and the appropriate supervisory staff wage in subdivision 5a, clause (1);
66.26(7) combine the results of clauses (5) and (6), and multiply the result by one plus the
66.27 employee vacation, sick, and training allowance ratio. This is defined as the direct staffing
66.28 rate;
66.29(8) for program plan support, multiply the result of clause (7) by one plus the program
66.30 plan support ratio;
Article 2 Sec. 34.  66
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
67.1      (9) for employee-related expenses, multiply the result of clause (8) by one plus the
67.2  employee-related cost ratio;
67.3      (10) for client programming and supports, multiply the result of clause (9) by one plus
67.4  the client programming and support ratio;
67.5      (11) this is the subtotal rate;
67.6      (12) sum the standard general administrative support ratio, the program-related expense
67.7  ratio, and the absence and utilization factor ratio;
67.8      (13) divide the result of clause (11) by one minus the result of clause (12). This is the
67.9  total payment amount;
67.10     (14) for services provided in a shared manner, divide the total payment in clause (13)
67.11 as follows:
67.12     (i) for employment exploration services, divide by the number of service recipients, not
67.13 to exceed five;
67.14     (ii) for employment support services, divide by the number of service recipients, not to
67.15 exceed six;
67.16     (iii) for individualized home supports with training and individualized home supports
67.17 with family training, divide by the number of service recipients, not to exceed three; and
67.18     (iv) for night supervision, divide by the number of service recipients, not to exceed two;
67.19 and
67.20     (15) adjust the result of clause (14) by a factor to be determined by the commissioner
67.21 to adjust for regional differences in the cost of providing services.
67.22     (e) Effective January 1, 2026, or upon federal approval, whichever is later, a provider
67.23 must not bill more than three consecutive hours and not more than six total hours per day
67.24 for individualized home supports with training and individualized home supports with family
67.25 training. This daily limit does not limit a person's use of other disability waiver services,
67.26 including individualized home supports, which may be provided on the same day by the
67.27 same provider providing individualized home supports with training or individualized home
67.28 supports with family training.
67.29     EFFECTIVE DATE. This section is effective the day following final enactment.
Article 2 Sec. 34.  67
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
68.1    Sec. 35. Minnesota Statutes 2024, section 256B.4914, subdivision 9, is amended to read:
68.2Subd. 9. Unit-based services without programming; component values and
68.3  calculation of payment rates. (a) For the purposes of this section, unit-based services
68.4  without programming include individualized home supports without training and night
68.5  supervision provided to an individual outside of any service plan for a day program or
68.6  residential support service. Unit-based services without programming do not include respite.
68.7  This paragraph expires upon the effective date of paragraph (b).
68.8(b) Effective January 1, 2026, or upon federal approval, whichever is later, for the
68.9  purposes of this section, unit-based services without programming include individualized
68.10 home supports without training, awake night supervision, and asleep night supervision
68.11 provided to an individual outside of any service plan for a day program or residential support
68.12 service.
68.13(b) (c) Component values for unit-based services without programming are:
68.14(1) competitive workforce factor: 6.7 percent;
68.15(2) supervisory span of control ratio: 11 percent;
68.16(3) employee vacation, sick, and training allowance ratio: 8.71 percent;
68.17(4) employee-related cost ratio: 23.6 percent;
68.18(5) program plan support ratio: 7.0 percent;
68.19(6) client programming and support ratio: 2.3 percent, updated as specified in subdivision
68.20 5b;
68.21(7) general administrative support ratio: 13.25 percent;
68.22(8) program-related expense ratio: 2.9 percent; and
68.23(9) absence and utilization factor ratio: 3.9 percent.
68.24(c) (d) A unit of service for unit-based services without programming is 15 minutes.
68.25(d) (e) Payments for unit-based services without programming must be calculated as
68.26 follows unless the services are reimbursed separately as part of a residential support services
68.27 or day program payment rate:
68.28(1) determine the number of units of service to meet a recipient's needs;
68.29(2) determine the appropriate hourly staff wage rates derived by the commissioner as
68.30 provided in subdivisions 5 to 5a;
Article 2 Sec. 35.  68
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
69.1      (3) except for subdivision 5a, clauses (1) to (4), multiply the result of clause (2) by the
69.2  product of one plus the competitive workforce factor;
69.3      (4) for a recipient requiring customization for deaf and hard-of-hearing language
69.4  accessibility under subdivision 12, add the customization rate provided in subdivision 12
69.5  to the result of clause (3);
69.6      (5) multiply the number of direct staffing hours by the appropriate staff wage;
69.7      (6) multiply the number of direct staffing hours by the product of the supervisory span
69.8  of control ratio and the appropriate supervisory staff wage in subdivision 5a, clause (1);
69.9      (7) combine the results of clauses (5) and (6), and multiply the result by one plus the
69.10 employee vacation, sick, and training allowance ratio. This is defined as the direct staffing
69.11 rate;
69.12     (8) for program plan support, multiply the result of clause (7) by one plus the program
69.13 plan support ratio;
69.14     (9) for employee-related expenses, multiply the result of clause (8) by one plus the
69.15 employee-related cost ratio;
69.16     (10) for client programming and supports, multiply the result of clause (9) by one plus
69.17 the client programming and support ratio;
69.18     (11) this is the subtotal rate;
69.19     (12) sum the standard general administrative support ratio, the program-related expense
69.20 ratio, and the absence and utilization factor ratio;
69.21     (13) divide the result of clause (11) by one minus the result of clause (12). This is the
69.22 total payment amount;
69.23     (14) for individualized home supports without training provided in a shared manner,
69.24 divide the total payment amount in clause (13) by the number of service recipients, not to
69.25 exceed three; and
69.26     (15) adjust the result of clause (14) by a factor to be determined by the commissioner
69.27 to adjust for regional differences in the cost of providing services.
69.28     EFFECTIVE DATE. This section is effective the day following final enactment.
Article 2 Sec. 35.  69
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
70.1    Sec. 36. Minnesota Statutes 2024, section 256B.4914, is amended by adding a subdivision
70.2  to read:
70.3      Subd. 14a. Limitations on rate exceptions for residential services. (a) Effective July
70.4  1, 2026, the commissioner must implement limitations on the rate exceptions for community
70.5  residential services, customized living services, family residential services, and integrated
70.6  community supports.
70.7      (b) The commissioner must restrict rate exceptions to the absence and utilization factor
70.8  ratio to people temporarily receiving hospital or crisis respite services.
70.9      (c) For rate exceptions related to behavioral needs, the lead agency must include:
70.10     (1) a documented behavioral diagnosis; or
70.11     (2) determined assessed needs for behavioral supports as identified in the person's most
70.12 recent assessment or reassessment under section 256B.0911.
70.13     (d) Community residential services rate exceptions must not include positive support
70.14 services costs.
70.15     (e) The commissioner must not approve rate exception requests related to increased
70.16 community time or transportation.
70.17     (f) For the commissioner to approve a rate exception annual renewal, the person's most
70.18 recent assessment must indicate continued extraordinary needs in the areas cited in the
70.19 exception request. If a person's assessment continues to identify these extraordinary needs,
70.20 lead agencies requesting an annual renewal of rate exceptions must submit documentation
70.21 supporting the continuation of the exception. At a minimum, documentation must include:
70.22     (1) payroll records for direct care wages cited in the request;
70.23     (2) payment records or receipts for other costs cited in the request; and
70.24     (3) documentation of expenses paid that were identified as necessary for the initial rate
70.25 exception.
70.26     (g) The commissioner must not increase rate exception annual renewals that request an
70.27 exception to direct care or supervision wages more than the most recently implemented
70.28 base wage index determined under subdivision 5.
70.29     (h) The commissioner must publish online an annual report detailing the impact of the
70.30 limitations under this subdivision on home and community-based services spending, including
70.31 but not limited to:
Article 2 Sec. 36.  70
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
71.1      (1) the number and percentage of rate exceptions granted and denied;
71.2      (2) total spending on community residential setting services and rate exceptions;
71.3      (3) trends in the percentage of spending attributable to rate exceptions; and
71.4      (4) an evaluation of the effectiveness of the limitations in controlling spending growth.
71.5      EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval,
71.6  whichever is later. The commissioner of human services shall notify the revisor of statutes
71.7  when federal approval is obtained.
71.8    Sec. 37. Minnesota Statutes 2024, section 256B.4914, is amended by adding a subdivision
71.9  to read:
71.10     Subd. 20. Sanctions and monetary recovery. Payments under this section are subject
71.11 to the sanctions and monetary recovery requirements under section 256B.064.
71.12   Sec. 38. Minnesota Statutes 2024, section 256B.85, subdivision 2, is amended to read:
71.13     Subd. 2. Definitions. (a) For the purposes of this section and section 256B.851, the terms
71.14 defined in this subdivision have the meanings given.
71.15     (b) "Activities of daily living" or "ADLs" means:
71.16     (1) dressing, including assistance with choosing, applying, and changing clothing and
71.17 applying special appliances, wraps, or clothing;
71.18     (2) grooming, including assistance with basic hair care, oral care, shaving, applying
71.19 cosmetics and deodorant, and care of eyeglasses and hearing aids. Grooming includes nail
71.20 care, except for recipients who are diabetic or have poor circulation;
71.21     (3) bathing, including assistance with basic personal hygiene and skin care;
71.22     (4) eating, including assistance with hand washing and applying orthotics required for
71.23 eating or feeding;
71.24     (5) transfers, including assistance with transferring the participant from one seating or
71.25 reclining area to another;
71.26     (6) mobility, including assistance with ambulation and use of a wheelchair. Mobility
71.27 does not include providing transportation for a participant;
71.28     (7) positioning, including assistance with positioning or turning a participant for necessary
71.29 care and comfort; and
Article 2 Sec. 38.  71
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
72.1      (8) toileting, including assistance with bowel or bladder elimination and care, transfers,
72.2  mobility, positioning, feminine hygiene, use of toileting equipment or supplies, cleansing
72.3  the perineal area, inspection of the skin, and adjusting clothing.
72.4      (c) "Agency-provider model" means a method of CFSS under which a qualified agency
72.5  provides services and supports through the agency's own employees and policies. The agency
72.6  must allow the participant to have a significant role in the selection and dismissal of support
72.7  workers of their choice for the delivery of their specific services and supports.
72.8      (d) "Behavior" means a description of a need for services and supports used to determine
72.9  the home care rating and additional service units. The presence of Level I behavior is used
72.10 to determine the home care rating.
72.11     (e) "Budget model" means a service delivery method of CFSS that allows the use of a
72.12 service budget and assistance from a financial management services (FMS) provider for a
72.13 participant to directly employ support workers and purchase supports and goods.
72.14     (f) "Complex health-related needs" means an intervention listed in clauses (1) to (8) that
72.15 has been ordered by a physician, advanced practice registered nurse, or physician's assistant
72.16 and is specified in an assessment summary, including:
72.17     (1) tube feedings requiring:
72.18     (i) a gastrojejunostomy tube; or
72.19     (ii) continuous tube feeding lasting longer than 12 hours per day;
72.20     (2) wounds described as:
72.21     (i) stage III or stage IV;
72.22     (ii) multiple wounds;
72.23     (iii) requiring sterile or clean dressing changes or a wound vac; or
72.24     (iv) open lesions such as burns, fistulas, tube sites, or ostomy sites that require specialized
72.25 care;
72.26     (3) parenteral therapy described as:
72.27     (i) IV therapy more than two times per week lasting longer than four hours for each
72.28 treatment; or
72.29     (ii) total parenteral nutrition (TPN) daily;
72.30     (4) respiratory interventions, including:
Article 2 Sec. 38.  72
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
73.1      (i) oxygen required more than eight hours per day;
73.2      (ii) respiratory vest more than one time per day;
73.3      (iii) bronchial drainage treatments more than two times per day;
73.4      (iv) sterile or clean suctioning more than six times per day;
73.5      (v) dependence on another to apply respiratory ventilation augmentation devices such
73.6  as BiPAP and CPAP; and
73.7      (vi) ventilator dependence under section 256B.0651;
73.8      (5) insertion and maintenance of catheter, including:
73.9      (i) sterile catheter changes more than one time per month;
73.10     (ii) clean intermittent catheterization, and including self-catheterization more than six
73.11 times per day; or
73.12     (iii) bladder irrigations;
73.13     (6) bowel program more than two times per week requiring more than 30 minutes to
73.14 perform each time;
73.15     (7) neurological intervention, including:
73.16     (i) seizures more than two times per week and requiring significant physical assistance
73.17 to maintain safety; or
73.18     (ii) swallowing disorders diagnosed by a physician, advanced practice registered nurse,
73.19 or physician's assistant and requiring specialized assistance from another on a daily basis;
73.20 and
73.21     (8) other congenital or acquired diseases creating a need for significantly increased direct
73.22 hands-on assistance and interventions in six to eight activities of daily living.
73.23     (g) "Community first services and supports" or "CFSS" means the assistance and supports
73.24 program under this section needed for accomplishing activities of daily living, instrumental
73.25 activities of daily living, and health-related tasks through hands-on assistance to accomplish
73.26 the task or constant supervision and cueing to accomplish the task, or the purchase of goods
73.27 as defined in subdivision 7, clause (3), that replace the need for human assistance.
73.28     (h) "Community first services and supports service delivery plan" or "CFSS service
73.29 delivery plan" means a written document detailing the services and supports chosen by the
73.30 participant to meet assessed needs that are within the approved CFSS service authorization,
Article 2 Sec. 38.  73
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
74.1  as determined in subdivision 8. Services and supports are based on the support plan identified
74.2  in sections 256B.092, subdivision 1b, and 256S.10.
74.3      (i) "Consultation services" means a Minnesota health care program enrolled provider
74.4  organization that provides assistance to the assisting a participant in making informed
74.5  choices about CFSS services in general and self-directed tasks in particular, and in developing
74.6  a person-centered CFSS service delivery plan to achieve quality service outcomes.
74.7      (j) "Critical activities of daily living" means transferring, mobility, eating, and toileting.
74.8      (k) "Dependency" in activities of daily living means a person requires hands-on assistance
74.9  or constant supervision and cueing to accomplish one or more of the activities of daily living
74.10 every day or on the days during the week that the activity is performed; however, a child
74.11 must not be found to be dependent in an activity of daily living if, because of the child's
74.12 age, an adult would either perform the activity for the child or assist the child with the
74.13 activity and the assistance needed is the assistance appropriate for a typical child of the
74.14 same age.
74.15     (l) "Extended CFSS" means CFSS services and supports provided under CFSS that are
74.16 included in the CFSS service delivery plan through one of the home and community-based
74.17 services waivers and as approved and authorized under chapter 256S and sections 256B.092,
74.18 subdivision 5, and 256B.49, which exceed the amount, duration, and frequency of the state
74.19 plan CFSS services for participants. Extended CFSS excludes the purchase of goods.
74.20     (m) "Financial management services provider" or "FMS provider" means a qualified
74.21 organization required for participants using the budget model under subdivision 13 that is
74.22 an enrolled provider with the department to provide vendor fiscal/employer agent financial
74.23 management services (FMS).
74.24     (n) "Health-related procedures and tasks" means procedures and tasks related to the
74.25 specific assessed health needs of a participant that can be taught or assigned by a
74.26 state-licensed health care or mental health professional and performed by a support worker.
74.27     (o) "Instrumental activities of daily living" means activities related to living independently
74.28 in the community, including but not limited to: meal planning, preparation, and cooking;
74.29 shopping for food, clothing, or other essential items; laundry; housecleaning; assistance
74.30 with medications; managing finances; communicating needs and preferences during activities;
74.31 arranging supports; and assistance with traveling around and participating in the community,
74.32 including traveling to medical appointments. For purposes of this paragraph, traveling
74.33 includes driving and accompanying the recipient in the recipient's chosen mode of
74.34 transportation and according to the individual CFSS service delivery plan.
Article 2 Sec. 38.  74
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
75.1      (p) "Lead agency" has the meaning given in section 256B.0911, subdivision 10.
75.2      (q) "Legal representative" means parent of a minor, a court-appointed guardian, or
75.3  another representative with legal authority to make decisions about services and supports
75.4  for the participant. Other representatives with legal authority to make decisions include but
75.5  are not limited to a health care agent or an attorney-in-fact authorized through a health care
75.6  directive or power of attorney.
75.7      (r) "Level I behavior" means physical aggression toward self or others or destruction of
75.8  property that requires the immediate response of another person.
75.9      (s) "Medication assistance" means providing verbal or visual reminders to take regularly
75.10 scheduled medication, and includes any of the following supports listed in clauses (1) to
75.11 (3) and other types of assistance, except that a support worker must not determine medication
75.12 dose or time for medication or inject medications into veins, muscles, or skin:
75.13     (1) under the direction of the participant or the participant's representative, bringing
75.14 medications to the participant including medications given through a nebulizer, opening a
75.15 container of previously set-up medications, emptying the container into the participant's
75.16 hand, opening and giving the medication in the original container to the participant, or
75.17 bringing to the participant liquids or food to accompany the medication;
75.18     (2) organizing medications as directed by the participant or the participant's representative;
75.19 and
75.20     (3) providing verbal or visual reminders to perform regularly scheduled medications.
75.21     (t) "Participant" means a person who is eligible for CFSS.
75.22     (u) "Participant's representative" means a parent, family member, advocate, or other
75.23 adult authorized by the participant or participant's legal representative, if any, to serve as a
75.24 representative in connection with the provision of CFSS. If the participant is unable to assist
75.25 in the selection of a participant's representative, the legal representative shall appoint one.
75.26     (v) "Person-centered planning process" means a process that is directed by the participant
75.27 to plan for CFSS services and supports.
75.28     (w) "Service budget" means the authorized dollar amount used for the budget model or
75.29 for the purchase of goods.
75.30     (x) "Shared services" means the provision of CFSS services by the same CFSS support
75.31 worker to two or three participants who voluntarily enter into a written agreement to receive
Article 2 Sec. 38.  75
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
76.1  services at the same time, in the same setting, and through the same agency-provider or
76.2  FMS provider.
76.3      (y) "Support worker" means a qualified and trained employee of the agency-provider
76.4  as required by subdivision 11b or of the participant employer under the budget model as
76.5  required by subdivision 14 who has direct contact with the participant and provides services
76.6  as specified within the participant's CFSS service delivery plan.
76.7      (z) "Unit" means the increment of service based on hours or minutes identified in the
76.8  service agreement.
76.9      (aa) "Vendor fiscal employer agent" means an agency that provides financial management
76.10 services.
76.11     (bb) "Wages and benefits" means the hourly wages and salaries, the employer's share
76.12 of FICA taxes, Medicare taxes, state and federal unemployment taxes, workers' compensation,
76.13 mileage reimbursement, health and dental insurance, life insurance, disability insurance,
76.14 long-term care insurance, uniform allowance, contributions to employee retirement accounts,
76.15 or other forms of employee compensation and benefits.
76.16     (cc) "Worker training and development" means services provided according to subdivision
76.17 18a for developing workers' skills as required by the participant's individual CFSS service
76.18 delivery plan that are arranged for or provided by the agency-provider or purchased by the
76.19 participant employer. These services include training, education, direct observation and
76.20 supervision, and evaluation and coaching of job skills and tasks, including supervision of
76.21 health-related tasks or behavioral supports.
76.22   Sec. 39. Minnesota Statutes 2024, section 256B.85, subdivision 5, is amended to read:
76.23     Subd. 5. Assessment requirements. (a) The assessment of functional need must:
76.24     (1) be conducted by a certified assessor according to the criteria established in section
76.25 256B.0911, subdivisions 17 to 21, 23, 24, and 29 to 31;
76.26     (2) be conducted face-to-face, initially and at least annually thereafter, or when there is
76.27 a significant change in the participant's condition or a change in the need for services and
76.28 supports, or at the request of the participant when the participant experiences a change in
76.29 condition or needs a change in the services or supports; and
76.30     (3) be completed using the format established by the commissioner.
76.31     (b) The results of the assessment and any recommendations and authorizations for CFSS
76.32 must be determined and communicated in writing by the lead agency's assessor as defined
Article 2 Sec. 39.  76
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
77.1  in section 256B.0911 to the participant or the participant's representative and chosen CFSS
77.2  providers within ten business days and must include the participant's right to appeal the
77.3  assessment under section 256.045, subdivision 3.
77.4      (c) The lead agency assessor may authorize a temporary authorization for CFSS services
77.5  to be provided under the agency-provider model. The lead agency assessor may authorize
77.6  a temporary authorization for CFSS services to be provided under the agency-provider
77.7  model without using the assessment process described in this subdivision. Authorization
77.8  for a temporary level of CFSS services under the agency-provider model is limited to the
77.9  time specified by the commissioner, but shall not exceed 45 days. The level of services
77.10 authorized under this paragraph shall have no bearing on a future authorization. For CFSS
77.11 services needed beyond the 45-day temporary authorization, the lead agency must conduct
77.12 an assessment as described in this subdivision and participants must use consultation services
77.13 to complete their orientation and selection of a service model.
77.14   Sec. 40. Minnesota Statutes 2024, section 256B.85, is amended by adding a subdivision
77.15 to read:
77.16     Subd. 5a. Temporary authorization without assessment. The lead agency assessor
77.17 may authorize a temporary authorization for CFSS services to be provided under the
77.18 agency-provider model. The lead agency assessor may authorize a temporary authorization
77.19 for CFSS services to be provided under the agency-provider model without using the
77.20 assessment process described in subdivision 5. Authorization for a temporary level of CFSS
77.21 services under the agency-provider model is limited to the time specified by the
77.22 commissioner, but shall not exceed 45 days. The level of services authorized under this
77.23 subdivision shall have no bearing on a future authorization. For CFSS services needed
77.24 beyond the 45-day temporary authorization, the lead agency must conduct an assessment
77.25 as described in subdivision 5 and participants must use consultation services to complete
77.26 their orientation and selection of a service model.
77.27   Sec. 41. Minnesota Statutes 2024, section 256B.85, subdivision 7, is amended to read:
77.28     Subd. 7. Community first services and supports; covered services. Services and
77.29 supports covered under CFSS include:
77.30     (1) assistance to accomplish activities of daily living (ADLs), instrumental activities of
77.31 daily living (IADLs), and health-related procedures and tasks through hands-on assistance
77.32 to accomplish the task or constant supervision and cueing to accomplish the task;
Article 2 Sec. 41.  77
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
78.1      (2) assistance to acquire, maintain, or enhance the skills necessary for the participant to
78.2  accomplish activities of daily living, instrumental activities of daily living, or health-related
78.3  tasks;
78.4      (3) expenditures for items, services, supports, environmental modifications, or goods,
78.5  including assistive technology. These expenditures must:
78.6      (i) relate to a need identified in a participant's CFSS service delivery plan; and
78.7      (ii) increase independence or substitute for human assistance, to the extent that
78.8  expenditures would otherwise be made for human assistance for the participant's assessed
78.9  needs;
78.10     (4) observation and redirection for behavior or symptoms where there is a need for
78.11 assistance;
78.12     (5) back-up systems or mechanisms, such as the use of pagers or other electronic devices,
78.13 to ensure continuity of the participant's services and supports;
78.14     (6) swimming lessons for a participant younger than 12 years of age whose disability
78.15 puts the participant at a higher risk of drowning according to the Centers for Disease Control
78.16 Vital Statistics System;
78.17     (6) (7) services described under subdivision 17 provided by a consultation services
78.18 provider as defined under subdivision 17, that is under contract with the department and
78.19 enrolled as a Minnesota health care program provider meeting the requirements of subdivision
78.20 17a;
78.21     (7) (8) services provided by an FMS provider as defined under subdivision 13a, that is
78.22 an enrolled provider with the department;
78.23     (8) (9) CFSS services provided by a support worker who is a parent, stepparent, or legal
78.24 guardian of a participant under age 18, or who is the participant's spouse. Covered services
78.25 under this clause are subject to the limitations described in subdivision 7b; and
78.26     (9) (10) worker training and development services as described in subdivision 18a.
78.27     EFFECTIVE DATE. This section is effective July 1, 2025, or upon federal approval,
78.28 whichever is later. The commissioner of human services shall notify the revisor of statutes
78.29 when federal approval is obtained.
Article 2 Sec. 41.  78
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
79.1    Sec. 42. Minnesota Statutes 2024, section 256B.85, subdivision 7a, is amended to read:
79.2      Subd. 7a. Enhanced rate. (a) An enhanced rate of 107.5 percent of the rate paid for
79.3  CFSS must be paid for services provided to persons who qualify for ten or more hours of
79.4  CFSS per day when provided by a support worker who meets the requirements of subdivision
79.5  16, paragraph (e). This paragraph expires upon the effective date of paragraph (b).
79.6      (b) Effective January 1, 2026, or upon federal approval, whichever is later, an enhanced
79.7  rate of 112.5 percent of the rate paid for CFSS must be paid for services provided to persons
79.8  who qualify for ten or more hours of CFSS per day when provided by a support worker
79.9  who meets the requirements of subdivision 16, paragraph (e).
79.10     (b) (c) An agency provider must use all additional revenue attributable to the rate
79.11 enhancements under this subdivision for the wages and wage-related costs of the support
79.12 workers, including any corresponding increase in the employer's share of FICA taxes,
79.13 Medicare taxes, state and federal unemployment taxes, and workers' compensation premiums.
79.14 The agency provider must not use the additional revenue attributable to any enhanced rate
79.15 under this subdivision to pay for mileage reimbursement, health and dental insurance, life
79.16 insurance, disability insurance, long-term care insurance, uniform allowance, contributions
79.17 to employee retirement accounts, or any other employee benefits.
79.18     (c) (d) Any change in the eligibility criteria for the enhanced rate for CFSS as described
79.19 in this subdivision and referenced in subdivision 16, paragraph (e), does not constitute a
79.20 change in a term or condition for individual providers as defined in section 256B.0711, and
79.21 is not subject to the state's obligation to meet and negotiate under chapter 179A.
79.22     EFFECTIVE DATE. This section is effective the day following final enactment.
79.23   Sec. 43. Minnesota Statutes 2024, section 256B.85, subdivision 8, is amended to read:
79.24     Subd. 8. Determination of CFSS service authorization amount. (a) All community
79.25 first services and supports must be authorized by the commissioner or the commissioner's
79.26 designee before services begin. The authorization for CFSS must be completed as soon as
79.27 possible following an assessment but no later than 40 calendar days from the date of the
79.28 assessment.
79.29     (b) The amount of CFSS authorized must be based on the participant's home care rating
79.30 described in paragraphs (d) and (e) and any additional service units for which the participant
79.31 qualifies as described in paragraph (f).
Article 2 Sec. 43.  79
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
80.1      (c) The home care rating shall be determined by the commissioner or the commissioner's
80.2  designee based on information submitted to the commissioner identifying the following for
80.3  a participant:
80.4      (1) the total number of dependencies of activities of daily living;
80.5      (2) the presence of complex health-related needs; and
80.6      (3) the presence of Level I behavior.
80.7      (d) The methodology to determine the total service units for CFSS for each home care
80.8  rating is based on the median paid units per day for each home care rating from fiscal year
80.9  2007 data for the PCA program.
80.10     (e) Each home care rating is designated by the letters P through Z and EN and has the
80.11 following base number of service units assigned:
80.12     (1) P home care rating requires Level I behavior or one to three dependencies in ADLs
80.13 and qualifies the person for five service units;
80.14     (2) Q home care rating requires Level I behavior and one to three dependencies in ADLs
80.15 and qualifies the person for six service units;
80.16     (3) R home care rating requires a complex health-related need and one to three
80.17 dependencies in ADLs and qualifies the person for seven service units;
80.18     (4) S home care rating requires four to six dependencies in ADLs and qualifies the person
80.19 for ten service units;
80.20     (5) T home care rating requires four to six dependencies in ADLs and Level I behavior
80.21 and qualifies the person for 11 service units;
80.22     (6) U home care rating requires four to six dependencies in ADLs and a complex
80.23 health-related need and qualifies the person for 14 service units;
80.24     (7) V home care rating requires seven to eight dependencies in ADLs and qualifies the
80.25 person for 17 service units;
80.26     (8) W home care rating requires seven to eight dependencies in ADLs and Level I
80.27 behavior and qualifies the person for 20 service units;
80.28     (9) Z home care rating requires seven to eight dependencies in ADLs and a complex
80.29 health-related need and qualifies the person for 30 service units; and
80.30     (10) EN home care rating includes ventilator dependency as defined in section 256B.0651,
80.31 subdivision 1, paragraph (g). A person who meets the definition of ventilator-dependent
Article 2 Sec. 43.  80
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
81.1  and the EN home care rating and utilize a combination of CFSS and home care nursing
81.2  services is limited to a total of 96 service units per day for those services in combination.
81.3  Additional units may be authorized when a person's assessment indicates a need for two
81.4  staff to perform activities. Additional time is limited to 16 service units per day.
81.5(f) Additional service units are provided through the assessment and identification of
81.6  the following:
81.7(1) 30 additional minutes per day for a dependency in each critical activity of daily
81.8  living;
81.9(2) 30 additional minutes per day for each complex health-related need; and
81.10(3) 30 additional minutes per day for each behavior under this clause that requires
81.11 assistance at least four times per week:
81.12(i) level I behavior that requires the immediate response of another person;
81.13(ii) increased vulnerability due to cognitive deficits or socially inappropriate behavior;
81.14 or
81.15(iii) increased need for assistance for participants who are verbally aggressive or resistive
81.16 to care so that the time needed to perform activities of daily living is increased.
81.17(g) The service budget for budget model participants shall be based on:
81.18(1) assessed units as determined by the home care rating; and
81.19(2) an adjustment needed for administrative expenses. This paragraph expires upon the
81.20 effective date of paragraph (h).
81.21(h) Effective January 1, 2026, or upon federal approval, whichever is later, the service
81.22 budget for budget model participants shall be based on:
81.23(1) assessed units as determined by the home care rating and the payment methodologies
81.24 under section 256B.851; and
81.25(2) an adjustment needed for administrative expenses.
81.26EFFECTIVE DATE. This section is effective the day following final enactment.
81.27   Sec. 44. Minnesota Statutes 2024, section 256B.85, subdivision 8a, is amended to read:
81.28Subd. 8a. Authorization; exceptions. All CFSS services must be authorized by the
81.29 commissioner or the commissioner's designee as described in subdivision 8 except when:
Article 2 Sec. 44.  81
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
82.1      (1) the lead agency temporarily authorizes services in the agency-provider model as
82.2  described in subdivision 5, paragraph (c) 5a;
82.3      (2) CFSS services in the agency-provider model were required to treat an emergency
82.4  medical condition that if not immediately treated could cause a participant serious physical
82.5  or mental disability, continuation of severe pain, or death. The CFSS agency provider must
82.6  request retroactive authorization from the lead agency no later than five working days after
82.7  providing the initial emergency service. The CFSS agency provider must be able to
82.8  substantiate the emergency through documentation such as reports, notes, and admission
82.9  or discharge histories. A lead agency must follow the authorization process in subdivision
82.10 5 after the lead agency receives the request for authorization from the agency provider;
82.11     (3) the lead agency authorizes a temporary increase to the amount of services authorized
82.12 in the agency or budget model to accommodate the participant's temporary higher need for
82.13 services. Authorization for a temporary level of CFSS services is limited to the time specified
82.14 by the commissioner, but shall not exceed 45 days. The level of services authorized under
82.15 this clause shall have no bearing on a future authorization;
82.16     (4) a participant's medical assistance eligibility has lapsed, is then retroactively reinstated,
82.17 and an authorization for CFSS services is completed based on the date of a current
82.18 assessment, eligibility, and request for authorization;
82.19     (5) a third-party payer for CFSS services has denied or adjusted a payment. Authorization
82.20 requests must be submitted by the provider within 20 working days of the notice of denial
82.21 or adjustment. A copy of the notice must be included with the request;
82.22     (6) the commissioner has determined that a lead agency or state human services agency
82.23 has made an error; or
82.24     (7) a participant enrolled in managed care experiences a temporary disenrollment from
82.25 a health plan, in which case the commissioner shall accept the current health plan
82.26 authorization for CFSS services for up to 60 days. The request must be received within the
82.27 first 30 days of the disenrollment. If the recipient's reenrollment in managed care is after
82.28 the 60 days and before 90 days, the provider shall request an additional 30-day extension
82.29 of the current health plan authorization, for a total limit of 90 days from the time of
82.30 disenrollment.
82.31   Sec. 45. Minnesota Statutes 2024, section 256B.85, subdivision 11, is amended to read:
82.32     Subd. 11. Agency-provider model. (a) The agency-provider model includes services
82.33 provided by support workers and staff providing worker training and development services
Article 2 Sec. 45.  82
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
83.1  who are employed by an agency-provider that meets the criteria established by the
83.2  commissioner, including required training.
83.3      (b) The agency-provider shall allow the participant to have a significant role in the
83.4  selection and dismissal of the support workers for the delivery of the services and supports
83.5  specified in the participant's CFSS service delivery plan. The agency must make a reasonable
83.6  effort to fulfill the participant's request for the participant's preferred support worker.
83.7      (c) A participant may use authorized units of CFSS services as needed within a service
83.8  agreement that is not greater than 12 months. Using authorized units in a flexible manner
83.9  in either the agency-provider model or the budget model does not increase the total amount
83.10 of services and supports authorized for a participant or included in the participant's CFSS
83.11 service delivery plan.
83.12     (d) A participant may share CFSS services. Two or three CFSS participants may share
83.13 services at the same time provided by the same support worker.
83.14     (e) The agency-provider must use a minimum of 72.5 percent of the revenue generated
83.15 by the medical assistance payment for CFSS for support worker wages and benefits, except
83.16 all of the revenue generated by a medical assistance rate increase due to a collective
83.17 bargaining agreement under section 179A.54 must be used for support worker wages and
83.18 benefits. The agency-provider must document how this requirement is being met. The
83.19 revenue generated by the worker training and development services and the reasonable costs
83.20 associated with the worker training and development services must not be used in making
83.21 this calculation.
83.22     (f) The agency-provider model must be used by participants who are restricted by the
83.23 Minnesota restricted recipient program under Minnesota Rules, parts 9505.2160 to
83.24 9505.2245.
83.25     (g) Participants purchasing goods under this the agency-provider model, along with
83.26 support worker services, must:
83.27     (1) specify the goods in the CFSS service delivery plan and detailed budget for
83.28 expenditures that must be approved by the lead agency, case manager, or care coordinator;
83.29 and
83.30     (2) use the FMS provider for the billing and payment of such goods.
83.31     (h) The agency provider is responsible for ensuring that any worker driving a participant
83.32 under subdivision 2, paragraph (o), has a valid driver's license and the vehicle used is
83.33 registered and insured according to Minnesota law.
Article 2 Sec. 45.  83
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
84.1    Sec. 46. Minnesota Statutes 2024, section 256B.85, subdivision 13, is amended to read:
84.2      Subd. 13. Budget model. (a) Under the budget model participants exercise responsibility
84.3  and control over the services and supports described and budgeted within the CFSS service
84.4  delivery plan. Participants must use consultation services specified in subdivision 17 and
84.5  services specified in subdivision 13a provided by an FMS provider. Under this model,
84.6  participants may use their approved service budget allocation to:
84.7      (1) directly employ support workers, and pay wages, federal and state payroll taxes, and
84.8  premiums for workers' compensation, liability, family and medical benefit insurance, and
84.9  health insurance coverage; and
84.10     (2) obtain supports and goods as defined in subdivision 7.
84.11     (b) Participants who are unable to fulfill any of the functions listed in paragraph (a) may
84.12 authorize a legal representative or participant's representative to do so on their behalf.
84.13     (c) If two or more participants using the budget model live in the same household and
84.14 have the same support worker, the participants must use the same FMS provider.
84.15     (d) If the FMS provider advises that there is a joint employer in the budget model, all
84.16 participants associated with that joint employer must use the same FMS provider.
84.17     (e) The commissioner shall disenroll or exclude participants from the budget model and
84.18 transfer them to the agency-provider model under, but not limited to, the following
84.19 circumstances:
84.20     (1) when a participant has been restricted by the Minnesota restricted recipient program,
84.21 in which case the participant may be excluded for a specified time period under Minnesota
84.22 Rules, parts 9505.2160 to 9505.2245;
84.23     (2) when a participant exits the budget model during the participant's service plan year.
84.24 Upon transfer, the participant shall not access the budget model for the remainder of that
84.25 service plan year; or
84.26     (3) when the department determines that the participant or participant's representative
84.27 or legal representative is unable to fulfill the responsibilities under the budget model, as
84.28 specified in subdivision 14.
84.29     (f) A participant may appeal in writing to the department under section 256.045,
84.30 subdivision 3, to contest the department's decision under paragraph (e), clause (3), to disenroll
84.31 or exclude the participant from the budget model.
Article 2 Sec. 46.  84
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
85.1    Sec. 47. Minnesota Statutes 2024, section 256B.85, subdivision 16, is amended to read:
85.2      Subd. 16. Support workers requirements. (a) Support workers shall:
85.3      (1) enroll with the department as a support worker after a background study under chapter
85.4  245C has been completed and the support worker has received a notice from the
85.5  commissioner that the support worker:
85.6      (i) is not disqualified under section 245C.14; or
85.7      (ii) is disqualified, but has received a set-aside of the disqualification under section
85.8  245C.22;
85.9      (2) have the ability to effectively communicate with the participant or the participant's
85.10 representative;
85.11     (3) have the skills and ability to provide the services and supports according to the
85.12 participant's CFSS service delivery plan and respond appropriately to the participant's needs;
85.13     (4) complete the basic standardized CFSS training as determined by the commissioner
85.14 before completing enrollment. The training must be available in languages other than English
85.15 and to those who need accommodations due to disabilities. CFSS support worker training
85.16 must include successful completion of the following training components: basic first aid,
85.17 vulnerable adult, child maltreatment, OSHA universal precautions, basic roles and
85.18 responsibilities of support workers including information about basic body mechanics,
85.19 emergency preparedness, orientation to positive behavioral practices, orientation to
85.20 responding to a mental health crisis, fraud issues, time cards and documentation, and an
85.21 overview of person-centered planning and self-direction. Upon completion of the training
85.22 components, the support worker must pass the certification test to provide assistance to
85.23 participants;
85.24     (5) complete employer-directed training and orientation on the participant's individual
85.25 needs;
85.26     (6) maintain the privacy and confidentiality of the participant; and
85.27     (7) not independently determine the medication dose or time for medications for the
85.28 participant.
85.29     (b) The commissioner may deny or terminate a support worker's provider enrollment
85.30 and provider number if the support worker:
85.31     (1) does not meet the requirements in paragraph (a);
85.32     (2) fails to provide the authorized services required by the employer;
Article 2 Sec. 47.  85
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
86.1      (3) has been intoxicated by alcohol or drugs while providing authorized services to the
86.2  participant or while in the participant's home;
86.3      (4) has manufactured or distributed drugs while providing authorized services to the
86.4  participant or while in the participant's home; or
86.5      (5) has been excluded as a provider by the commissioner of human services, or by the
86.6  United States Department of Health and Human Services, Office of Inspector General, from
86.7  participation in Medicaid, Medicare, or any other federal health care program.
86.8      (c) A support worker may appeal in writing to the commissioner to contest the decision
86.9  to terminate the support worker's provider enrollment and provider number.
86.10     (d) A support worker must not provide or be paid for more than 310 hours of CFSS per
86.11 month, regardless of the number of participants the support worker serves or the number
86.12 of agency-providers or participant employers by which the support worker is employed.
86.13 The department shall not disallow the number of hours per day a support worker works
86.14 unless it violates other law.
86.15     (e) CFSS qualify for an enhanced rate or budget if the support worker providing the
86.16 services:
86.17     (1) provides services, within the scope of CFSS described in subdivision 7, to a participant
86.18 who qualifies for ten or more hours per day of CFSS; and
86.19     (2) satisfies the current requirements of Medicare for training and competency or
86.20 competency evaluation of home health aides or nursing assistants, as provided in the Code
86.21 of Federal Regulations, title 42, section 483.151 or 484.36, or alternative state-approved
86.22 training or competency requirements. This paragraph expires upon the effective date of
86.23 paragraph (f).
86.24     (f) Effective January 1, 2026, or upon federal approval, whichever is later, CFSS qualify
86.25 for an enhanced rate or budget if the support worker providing the services:
86.26     (1) provides services, within the scope of CFSS described in subdivision 7, to a participant
86.27 who qualifies for ten or more hours per day of CFSS; and
86.28     (2) satisfies the current requirements of Medicare for training and competency or
86.29 competency evaluation of home health aides or nursing assistants, as provided in the Code
86.30 of Federal Regulations, title 42, section 483.151 or 484.36, or alternative state-approved
86.31 training or competency requirements.
86.32     EFFECTIVE DATE. This section is effective the day following final enactment.
Article 2 Sec. 47.  86
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
87.1    Sec. 48. Minnesota Statutes 2024, section 256B.85, subdivision 17a, is amended to read:
87.2      Subd. 17a. Consultation services provider qualifications and
87.3  requirements. Consultation services providers must meet the following qualifications and
87.4  requirements:
87.5      (1) meet the requirements under subdivision 10, paragraph (a), excluding clauses (4)
87.6  and (5);
87.7      (2) are be under contract with the department and enrolled as a Minnesota health care
87.8  program provider;
87.9      (3) are not not be the FMS provider, the lead agency, or the CFSS or home and
87.10 community-based services waiver vendor or agency-provider to the participant;
87.11     (4) meet the service standards as established by the commissioner;
87.12     (5) have proof of surety bond coverage. Upon new enrollment, or if the consultation
87.13 service provider's Medicaid revenue in the previous calendar year is less than or equal to
87.14 $300,000, the consultation service provider must purchase a surety bond of $50,000. If the
87.15 agency-provider's Medicaid revenue in the previous calendar year is greater than $300,000,
87.16 the consultation service provider must purchase a surety bond of $100,000. The surety bond
87.17 must be in a form approved by the commissioner, must be renewed annually, and must
87.18 allow for recovery of costs and fees in pursuing a claim on the bond;
87.19     (6) employ lead professional staff with a minimum of two years of experience in
87.20 providing services such as support planning, support broker, case management or care
87.21 coordination, or consultation services and consumer education to participants using a
87.22 self-directed program using FMS under medical assistance;
87.23     (7) report maltreatment as required under chapter 260E and section 626.557;
87.24     (8) comply with medical assistance provider requirements;
87.25     (9) understand the CFSS program and its policies;
87.26     (10) are be knowledgeable about self-directed principles and the application of the
87.27 person-centered planning process;
87.28     (11) have general knowledge of the FMS provider duties and the vendor fiscal/employer
87.29 agent model, including all applicable federal, state, and local laws and regulations regarding
87.30 tax, labor, employment, and liability and workers' compensation coverage for household
87.31 workers; and
Article 2 Sec. 48.  87
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
88.1      (12) have all employees, including lead professional staff, staff in management and
88.2  supervisory positions, and owners of the agency who are active in the day-to-day management
88.3  and operations of the agency, complete training as specified in the contract with the
88.4  department.
88.5    Sec. 49. Minnesota Statutes 2024, section 256B.851, subdivision 5, is amended to read:
88.6      Subd. 5. Payment rates; component values. (a) The commissioner must use the
88.7  following component values:
88.8      (1) employee vacation, sick, and training factor, 8.71 percent;
88.9      (2) employer taxes and workers' compensation factor, 11.56 percent;
88.10     (3) employee benefits factor, 12.04 percent;
88.11     (4) client programming and supports factor, 2.30 percent;
88.12     (5) program plan support factor, 7.00 percent;
88.13     (6) general business and administrative expenses factor, 13.25 percent;
88.14     (7) program administration expenses factor, 2.90 percent; and
88.15     (8) absence and utilization factor, 3.90 percent.
88.16     (b) For purposes of implementation, the commissioner shall use the following
88.17 implementation components:
88.18     (1) personal care assistance services and CFSS: 88.19 percent;
88.19     (2) enhanced rate personal care assistance services and enhanced rate CFSS: 88.19
88.20 percent; and
88.21     (3) qualified professional services and CFSS worker training and development: 88.19
88.22 percent.
88.23     (c) (b) Effective January 1, 2025, for purposes of implementation, the commissioner
88.24 shall use the following implementation components:
88.25     (1) personal care assistance services and CFSS: 92.08 percent;
88.26     (2) enhanced rate personal care assistance services and enhanced rate CFSS: 92.08
88.27 percent; and
88.28     (3) qualified professional services and CFSS worker training and development: 92.08
88.29 percent. This paragraph expires upon the effective date of subdivision 5a.
Article 2 Sec. 49.  88
06/07/25  REVISOR       DTT/RC  25-05696  as introduced
89.1      (d) (c) The commissioner shall use the following worker retention components:
89.2      (1) for workers who have provided fewer than 1,001 cumulative hours in personal care
89.3  assistance services or CFSS, the worker retention component is zero percent;
89.4      (2) for workers who have provided between 1,001 and 2,000 cumulative hours in personal
89.5  care assistance services or CFSS, the worker retention component is 2.17 percent;
89.6      (3) for workers who have provided between 2,001 and 6,000 cumulative hours in personal
89.7  care assistance services or CFSS, the worker retention component is 4.36 percent;
89.8      (4) for workers who have provided between 6,001 and 10,000 cumulative hours in
89.9  personal care assistance services or CFSS, the worker retention component is 7.35 percent;
89.10 and
89.11     (5) for workers who have provided more than 10,000 cumulative hours in personal care
89.12 assistance services or CFSS, the worker retention component is 10.81 percent. This paragraph
89.13 expires upon the effective date of subdivision 5b.
89.14     (e) (d) The commissioner shall define the appropriate worker retention component under
89.15 subdivision 5b or 5c based on the total number of units billed for services rendered by the
89.16 individual provider since July 1, 2017. The worker retention component must be determined
89.17 by the commissioner for each individual provider and is not subject to appeal.
89.18     EFFECTIVE DATE. This section is effective the day following final enactment.
89.19   Sec. 50. Minnesota Statutes 2024, section 256B.851, is amended by adding a subdivision
89.20 to read:
89.21     Subd. 5a. Payment rates; implementation components. Effective January 1, 2026, or
89.22 upon federal approval, whichever is later, for purposes of implementation, the commissioner
89.23 shall use the following implementation components:
89.24     (1) personal care assistance services and CFSS: 92.20 percent;
89.25     (2) enhanced rate personal care assistance services and enhanced rate CFSS: 92.20
89.26 percent; and
89.27     (3) qualified professional services and CFSS worker training and development: 92.20
89.28 percent.
89.29     EFFECTIVE DATE. This section is effective the day following final enactment.
Article 2 Sec. 50.  89
06/07/25  REVISOR       DTT/RC  25-05696  as introduced
90.1    Sec. 51. Minnesota Statutes 2024, section 256B.851, is amended by adding a subdivision
90.2  to read:
90.3      Subd. 5b. Payment rates; worker retention component. Effective January 1, 2026,
90.4  or upon federal approval, whichever is later, the commissioner shall use the following
90.5  worker retention components:
90.6      (1) for workers who have provided fewer than 1,001 cumulative hours in personal care
90.7  assistance services or CFSS, the worker retention component is zero percent;
90.8      (2) for workers who have provided between 1,001 and 2,000 cumulative hours in personal
90.9  care assistance services or CFSS, the worker retention component is 4.05 percent;
90.10     (3) for workers who have provided between 2,001 and 6,000 cumulative hours in personal
90.11 care assistance services or CFSS, the worker retention component is 6.24 percent;
90.12     (4) for workers who have provided between 6,001 and 10,000 cumulative hours in
90.13 personal care assistance services or CFSS, the worker retention component is 9.23 percent;
90.14 and
90.15     (5) for workers who have provided more than 10,000 cumulative hours in personal care
90.16 assistance services or CFSS, the worker retention component is 12.69 percent.
90.17     EFFECTIVE DATE. This section is effective the day following final enactment.
90.18   Sec. 52. Minnesota Statutes 2024, section 256B.851, is amended by adding a subdivision
90.19 to read:
90.20     Subd. 5c. Payment rates; enhanced worker retention component. Effective January
90.21 1, 2027, or upon federal approval, whichever is later, the commissioner shall use the
90.22 following worker retention components if a worker has completed either the orientation for
90.23 individual providers offered through the Home Care Orientation Trust or an orientation
90.24 defined and offered by the commissioner:
90.25     (1) for workers who have provided fewer than 1,001 cumulative hours in personal care
90.26 assistance services or CFSS, the worker retention component is 1.88 percent;
90.27     (2) for workers who have provided between 1,001 and 2,000 cumulative hours in personal
90.28 care assistance services or CFSS, the worker retention component is 5.92 percent;
90.29     (3) for workers who have provided between 2,001, and 6,000 cumulative hours in personal
90.30 care assistance services or CFSS, the worker retention component is 8.11 percent;
Article 2 Sec. 52.  90
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
91.1      (4) for workers who have provided between 6,001 and 10,000 cumulative hours in
91.2  personal care assistance services or CFSS, the worker retention component is 11.10 percent;
91.3  and
91.4      (5) for workers who have provided more than 10,000 cumulative hours in personal care
91.5  assistance services or CFSS, the worker retention component is 14.56 percent.
91.6      EFFECTIVE DATE. This section is effective the day following final enactment.
91.7    Sec. 53. Minnesota Statutes 2024, section 256B.851, subdivision 6, is amended to read:
91.8      Subd. 6. Payment rates; rate determination. (a) The commissioner must determine
91.9  the rate for personal care assistance services, CFSS, extended personal care assistance
91.10 services, extended CFSS, enhanced rate personal care assistance services, enhanced rate
91.11 CFSS, qualified professional services, and CFSS worker training and development as
91.12 follows:
91.13     (1) multiply the appropriate total wage component value calculated in subdivision 4 by
91.14 one plus the employee vacation, sick, and training factor in subdivision 5;
91.15     (2) for program plan support, multiply the result of clause (1) by one plus the program
91.16 plan support factor in subdivision 5;
91.17     (3) for employee-related expenses, add the employer taxes and workers' compensation
91.18 factor in subdivision 5 and the employee benefits factor in subdivision 5. The sum is
91.19 employee-related expenses. Multiply the product of clause (2) by one plus the value for
91.20 employee-related expenses;
91.21     (4) for client programming and supports, multiply the product of clause (3) by one plus
91.22 the client programming and supports factor in subdivision 5;
91.23     (5) for administrative expenses, add the general business and administrative expenses
91.24 factor in subdivision 5, the program administration expenses factor in subdivision 5, and
91.25 the absence and utilization factor in subdivision 5;
91.26     (6) divide the result of clause (4) by one minus the result of clause (5). The quotient is
91.27 the hourly rate;
91.28     (7) multiply the hourly rate by the appropriate implementation component under
91.29 subdivision 5 or 5a. This is the adjusted hourly rate; and
91.30     (8) divide the adjusted hourly rate by four. The quotient is the total adjusted payment
91.31 rate.
Article 2 Sec. 53.  91
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
92.1      (b) In processing personal care assistance provider agency and CFSS provider agency
92.2  claims, the commissioner shall incorporate the applicable worker retention component
92.3  components specified in subdivision 5, 5b, or 5c, by multiplying one plus the total adjusted
92.4  payment rate by the appropriate worker retention component under subdivision 5, paragraph
92.5  (d) 5b, or 5c.
92.6      (c) The commissioner must publish the total final payment rates.
92.7      EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval,
92.8  whichever is later. The commissioner of human services shall notify the revisor of statutes
92.9  when federal approval is obtained.
92.10   Sec. 54. Minnesota Statutes 2024, section 256B.851, subdivision 7, is amended to read:
92.11     Subd. 7. Treatment of rate adjustments provided outside of cost components. Any
92.12 rate adjustments applied to the service rates calculated under this section outside of the cost
92.13 components and rate methodology specified in this section, including but not limited to
92.14 those implemented to enable participant-employers and provider agencies to meet the terms
92.15 and conditions of any collective bargaining agreement negotiated under chapter 179A, shall
92.16 be applied as changes to the value of component values or, implementation components,
92.17 or worker retention components in subdivision subdivisions 5 to 5c.
92.18     EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval,
92.19 whichever is later. The commissioner of human services shall notify the revisor of statutes
92.20 when federal approval is obtained.
92.21   Sec. 55. Minnesota Statutes 2024, section 256B.851, is amended by adding a subdivision
92.22 to read:
92.23     Subd. 7a. Budget determinations. Effective January 1, 2026, the commissioner shall
92.24 increase the authorized amount for the CFSS budget model of those CFSS
92.25 participant-employers employing individual providers who have provided more than 1,000
92.26 hours of services. Effective January 1, 2027, the commissioner must increase the authorized
92.27 amount for the CFSS budget model of those CFSS participant-employers employing
92.28 individual providers who have provided more than 1,000 hours of services and providers
92.29 who have completed the orientation offered by the Home Care Orientation Trust or an
92.30 orientation defined and offered by the commissioner. The commissioner shall determine
92.31 the amount and method of the authorized amount increase.
Article 2 Sec. 55.  92
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
93.1      EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval,
93.2  whichever is later. The commissioner of human services shall notify the revisor of statutes
93.3  when federal approval is obtained.
93.4    Sec. 56. Laws 2021, First Special Session chapter 7, article 13, section 73, is amended to
93.5  read:
93.6    Sec. 73. WAIVER REIMAGINE PHASE II.
93.7      (a) Effective January 1, 2027, or upon federal approval, whichever is later, the
93.8  commissioner of human services must implement a two-home and community-based services
93.9  waiver program structure, as authorized under section 1915(c) of the federal Social Security
93.10 Act, that serves persons who are determined by a certified assessor to require the levels of
93.11 care provided in a nursing home, a hospital, a neurobehavioral hospital, or an intermediate
93.12 care facility for persons with developmental disabilities.
93.13     (b) The commissioner of human services must implement an individualized budget
93.14 methodology, as authorized under section 1915(c) of the federal Social Security Act, that
93.15 serves persons who are determined by a certified assessor to require the levels of care
93.16 provided in a nursing home, a hospital, a neurobehavioral hospital, or an intermediate care
93.17 facility for persons with developmental disabilities.
93.18     (c) The commissioner must develop an individualized budget methodology exception
93.19 to support access to self-directed home care nursing services. Lead agencies must submit
93.20 budget exception requests to the commissioner in a manner identified by the commissioner.
93.21 Eligibility for the budget exception in this paragraph is limited to persons meeting all of the
93.22 following criteria in the person's most recent assessment:
93.23     (1) the person is assessed to need the level of care delivered in a hospital setting as
93.24 evidenced by the submission of the Department of Human Services form 7096, primary
93.25 medical provider's documentation of medical monitoring and treatment needs;
93.26     (2) the person is assessed to receive a support range budget of E or H; and
93.27     (3) the person does not receive community residential services, family residential services,
93.28 integrated community supports services, or customized living services.
93.29     (d) Home care nursing services funded through the budget exception developed under
93.30 paragraph (c) must be ordered by a physician, physician assistant, or advanced practice
93.31 registered nurse. If the participant chooses home care nursing, the home care nursing services
93.32 must be performed by a registered nurse or licensed practical nurse practicing within the
Article 2 Sec. 56.  93
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
94.1  registered nurse's or licensed practical nurse's scope of practice as defined under Minnesota
94.2  Statutes, sections 148.171 to 148.285. If after a person's annual reassessment under Minnesota
94.3  Statutes, section 256B.0911, any requirements of this paragraph or paragraph (c) are no
94.4  longer met, the commissioner must terminate the budget exception.
94.5      (c) (e) The commissioner of human services may seek all federal authority necessary to
94.6  implement this section.
94.7      (d) (f) The commissioner must ensure that the new waiver service menu and individual
94.8  budgets allow people to live in their own home, family home, or any home and
94.9  community-based setting of their choice. The commissioner must ensure, within available
94.10 resources and subject to state and federal regulations and law, that waiver reimagine does
94.11 not result in unintended service disruptions.
94.12     (g) No later than July 1, 2026, the commissioner must:
94.13     (1) develop and implement an online support planning and tracking tool to provide
94.14 information in an accessible format to support informed choice for people using disability
94.15 waiver services that allows access to the total budget available to a person, the services for
94.16 which they are eligible, and the services they have chosen and used;
94.17     (2) explore operability options that facilitate real-time tracking of a person's remaining
94.18 available budget throughout the service year; and
94.19     (3) seek input from people with disabilities about the online support planning and tracking
94.20 tool prior to the tool's implementation.
94.21     EFFECTIVE DATE. This section is effective the day following final enactment.
94.22   Sec. 57. Laws 2023, chapter 61, article 1, section 61, subdivision 4, is amended to read:
94.23     Subd. 4. Evaluation and report. By December 1, 2024, the commissioner must submit
94.24 to the chairs and ranking minority members of the legislative committees with jurisdiction
94.25 over human services finance and policy an interim report on the impact and outcomes of
94.26 the grants, including the number of grants awarded and the organizations receiving the
94.27 grants. The interim report must include any available evidence of how grantees were able
94.28 to increase utilization of supported decision making and reduce or avoid more restrictive
94.29 forms of decision making such as guardianship and conservatorship. By December 1, 2025
94.30 2026, the commissioner must submit to the chairs and ranking minority members of the
94.31 legislative committees with jurisdiction over human services finance and policy a final
94.32 report on the impact and outcomes of the grants, including any updated information from
94.33 the interim report and the total number of people served by the grants. The final report must
Article 2 Sec. 57.  94
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
95.1  also detail how the money was used to achieve the requirements in subdivision 3, paragraph
95.2  (b).
95.3    Sec. 58. LONG-TERM SERVICES AND SUPPORTS ADVISORY COUNCIL.
95.4      Subdivision 1. Establishment. The commissioner of human services shall convene a
95.5  long-term services and supports advisory council to advise and assist the legislature and the
95.6  governor to reduce cost growth in long-term services and supports, build greater efficiencies
95.7  into the long-term care services system, and achieve better outcomes for Minnesotans with
95.8  long-term care needs.
95.9      Subd. 2. Membership; appointment. (a) The advisory council consists of at least 30
95.10 members as follows:
95.11     (1) the commissioner of human services or a designee;
95.12     (2) the chief executive officer of direct care and treatment or a designee;
95.13     (3) one individual receiving services under the elderly waiver, appointed by Elder Voices
95.14 Family Advocates;
95.15     (4) two people with disabilities, one living in a community residential setting and one
95.16 living independently, appointed by the ARC Minnesota;
95.17     (5) three family members of people with disabilities or older adults utilizing medical
95.18 assistance services, one of whom has professional experience with disability waiver services,
95.19 one of whom who has had experience in advocacy, and one of whom is a parent of a child
95.20 with autism, all appointed by the commissioner of human services from among the
95.21 membership of the Waiver Reimagine Advisory Committee;
95.22     (6) two county representatives, one of whom must be from greater Minnesota and one
95.23 of whom must be from the Twin Cities metropolitan area, both appointed by the Association
95.24 of Minnesota Counties;
95.25     (7) two county representatives, one of whom must be from greater Minnesota and one
95.26 of whom must be from the Twin Cities metropolitan area, both appointed by the Minnesota
95.27 Inter-County Association;
95.28     (8) two county social services workers, one of whom must be from greater Minnesota
95.29 and one of whom must be from the Twin Cities metropolitan area, both appointed by the
95.30 Minnesota Association of County Social Service Administrators;
95.31     (9) two representatives from Tribal Nations involved in the administration of social
95.32 services, appointed by the Minnesota Indian Affairs Council;
Article 2 Sec. 58.  95
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
96.1      (10) one provider of home care services, appointed by the Minnesota Home Care
96.2  Association;
96.3      (11) one provider of nursing facility services to older adults and people with disabilities,
96.4  appointed by the Long-Term Care Imperative;
96.5      (12) three providers of home and community-based disability services, one appointed
96.6  by MOHR, one appointed by Residential Providers Association of Minnesota, and one
96.7  appointed by ARRM. The appointing authorities under this clause must coordinate to ensure
96.8  that one day services provider, one community residential services provider, and one
96.9  own-home service provider is appointed;
96.10     (13) two advocates for people with disabilities, one appointed by the Disability Law
96.11 Center and one appointed by the ARC Minnesota;
96.12     (14) one advocate for older adults utilizing long-term care services, appointed by the
96.13 ombudsman for long-term care;
96.14     (15) one advocate for people with mental illness or developmental disabilities utilizing
96.15 long-term services and supports, appointed by the ombudsman for mental health and
96.16 developmental disabilities;
96.17     (16) one provider of long-term services and supports, appointed by Community Provider
96.18 Alliance;
96.19     (17) one provider of community first services and supports, appointed by Minnesota
96.20 First Provider Alliance;
96.21     (18) one member, appointed by the Service Employees International Union (SEIU)
96.22 Healthcare Minnesota & Iowa;
96.23     (19) one member appointed by the American Federation of State, County, & Municipal
96.24 Employees (AFSCME);
96.25     (20) one individual living with serious and persistent mental illness, appointed by National
96.26 Alliance on Mental Illness (NAMI) Minnesota; and
96.27     (21) any other individuals the commissioner of human services chooses to appoint.
96.28     (b) Each appointing authority must make appointments by September 1, 2025.
96.29 Appointments made by an agency or commissioner may also be made by a designee.
96.30     (c) An appointing authority may designate an alternate member to attend and participate
96.31 in advisory council meetings in the appointed member's stead, including replacing an
96.32 appointed member at the appointing authority's discretion.
Article 2 Sec. 58.  96
06/07/25  REVISOR        DTT/RC  25-05696  as introduced
97.1      (d) An appointing authority may replace any member who steps down from the advisory
97.2  council and replace any member who it appointed and who, in the judgment of the appointing
97.3  authority, fails to attend a sufficient number of advisory council meetings.
97.4      Subd. 3. Chair. The commissioner of human services or the commissioner's designee
97.5  shall serve as chair of the advisory council. The commissioner of human services must
97.6  convene the first meeting no later than October 1, 2025.
97.7      Subd. 4. Compensation; expenses; reimbursement. Public members shall be
97.8  compensated and reimbursed for expenses as provided in Minnesota Statutes, section
97.9  15.0575, subdivision 3.
97.10     Subd. 5. Administrative support. (a) The commissioner of human services shall provide
97.11 meeting space and administrative support to the advisory council, including facilitating
97.12 public testimony before the advisory council and coordinating other forms of public
97.13 engagement with the advisory council.
97.14     (b) The commissioner of human services must contract with a third party to provide
97.15 facilitation services for the advisory council. Use of a third party for this purpose is exempt
97.16 from state procurement process requirements under Minnesota Statutes, chapter 16C.
97.17     (c) The commissioner of human services may contract with a third party or parties to
97.18 provide policy research and analysis, data analysis, and administrative support related to
97.19 drafting the action plan and supporting materials. Use of a third party for these purposes is
97.20 exempt from state procurement process requirements under Minnesota Statutes, chapter
97.21 16C.
97.22     (d) The commissioner of human services shall compile and provide summary data and
97.23 existing information the advisory council requests in a manner consistent with Minnesota
97.24 Statutes, chapter 13.
97.25     Subd. 6. Meetings. (a) The advisory council must meet at least once every two months
97.26 until the advisory council submits recommendations to the legislature required under
97.27 subdivision 7. The advisory council must provide opportunities for public input, including
97.28 oral public testimony.
97.29     (b) The advisory council may form work groups as deemed necessary by the advisory
97.30 council.
97.31     Subd. 7. Duties. (a) By March 15, 2026, the commissioner or designee must present a
97.32 progress update on the advisory council's work including any initial recommendations to
97.33 the legislative committees with jurisdiction over human services.
Article 2 Sec. 58.  97
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
98.1(b) By December 1, 2026, the advisory council must submit to the legislature and the
98.2  governor recommendations to reduce cost growth in long-term services and supports, to
98.3  build greater efficiencies into the long-term care services system, and to promote better
98.4  outcomes for Minnesotans with long-term care needs. When developing the
98.5  recommendations, the advisory council must consider at least the following:
98.6(1) approaches to reducing human services expenditures, including identifying strategies
98.7  for addressing the significant cost drivers of state spending on long-term services and
98.8  supports;
98.9(2) cost-saving reforms, including reforms to:
98.10(i) licensing requirements, service standards, provider qualifications, and provider duties
98.11 and responsibilities;
98.12(ii) eligibility requirements for accessing long-term care;
98.13(iii) covered services, service authorizations, service limits, and budget limits;
98.14(iv) rate methodologies, rate enhancements and add-ons, rate exceptions, and rate limits;
98.15 or
98.16(v) any other cost-saving reforms to medical assistance long-term services and supports
98.17 and other programs serving Minnesotans with long-term care needs;
98.18(3) alternative service models to provide long-term services and supports to people with
98.19 limited dependencies, low-acuity assessed needs, or natural supports that may include:
98.20 tailoring available services to meet the needs of the target population; supplementing or
98.21 subsidizing family caregivers, religious organizations, social clubs, and similar civic and
98.22 service organizations; exercising the commissioner's authority under Minnesota Statutes,
98.23 section 256B.092, subdivision 4a; reexamining the provision of services under Minnesota
98.24 Statutes, section 245A.03, subdivision 9; reexamining the viability of a demonstration
98.25 project for the target population similar to the projects authorized under Minnesota Statutes,
98.26 sections 256B.69, subdivision 23, and 256B.77; modifying licensing and regulator
98.27 requirements to permit family or other natural supports to live with a person with long-term
98.28 needs in licensed settings, such as an assisted living facility or senior living setting; and tax
98.29 credits or other tax incentives to encourage intergenerational living arrangements, accessory
98.30 dwelling units, or other residential arrangements that permit easier access to natural supports;
98.31(4) strategies to increase administrative efficiencies and improve program simplification
98.32 within publicly funded long-term services and supports programs, including examining the
98.33 roles and experience of counties and Tribes in delivering services and identifying any
Article 2 Sec. 58.  98
06/07/25  REVISOR  DTT/RC  25-05696  as introduced
99.1  conflicting and duplicative roles and responsibilities among the Department of Human
99.2  Services, counties, Tribes, and other lead agencies; and
99.3      (5) opportunities for reducing fraud and improving program integrity in long-term
99.4  services and supports.
99.5      (c) The commissioner must continue to collaborate with the advisory council after the
99.6  December 1, 2026, recommendations are submitted under paragraph (b) until the advisory
99.7  council expires under subdivision 11.
99.8      (d) The commissioner of human services may contract with a private entity or consultant
99.9  as necessary to complete the duties under this section. Use of a private entity or consultant
99.10 for this purpose is exempt from state procurement process requirements under Minnesota
99.11 Statutes, chapter 16C.
99.12     (e) For all strategies included in the recommendations, the advisory council must include:
99.13     (1) the estimated fiscal impact of the strategy;
99.14     (2) the anticipated impact to people receiving services; and
99.15     (3) the level of support among members of the advisory council or ranking of each
99.16 strategy determined by the advisory council.
99.17     Subd. 8. Limitations. In developing the recommendations, the advisory council shall
99.18 take into consideration the impact of its recommendations on:
99.19     (1) the existing capacity of state agencies, including staffing needs, technology resources,
99.20 and existing agency responsibilities; and
99.21     (2) the capacity of county and Tribal partners.
99.22     Subd. 9. Savings determinations. (a) When preparing the forecast for state revenue and
99.23 expenditures under Minnesota Statutes, section 16A.103, the commissioner of management
99.24 and budget must assume the following reductions of human services general fund spending
99.25 for the biennium beginning July 1, 2027, until the end of the legislative session that enacts
99.26 a budget for the commissioner of human services for the biennium beginning July 1, 2027:
99.27     (1) if a bond appropriation for the replacement of the Miller Building on the Anoka
99.28 Metro Regional Treatment Center Campus is enacted during a 2025 special session,
99.29 $177,542,000; or
99.30     (2) if a bond appropriation for the replacement of the Miller Building on the Anoka
99.31 Metro Regional Treatment Center Campus is not enacted during a 2025 special session,
99.32 $143,542,000.
Article 2 Sec. 58.  99
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
100.1(b) Upon enactment of a budget for the commissioner of human services for the biennium
100.2  beginning July 1, 2027, the legislature must identify enacted provisions that were
100.3  recommended by the advisory council under subdivision 7.
100.4(c) To the extent the net savings attributable to the provisions identified by the legislature
100.5  under paragraph (b) for the biennium beginning July 1, 2027, are less than the assumed
100.6  savings in paragraph (a), the commissioner of human services must implement the contingent
100.7  spending reductions described in subdivision 10, beginning July 1, 2027, or upon federal
100.8  approval, whichever is later.
100.9Subd. 10. Contingent spending reductions. If upon enactment of a budget for the
100.10 commissioner of human services for the biennium beginning July 1, 2027, the net savings
100.11 for the biennium beginning July 1, 2027, attributable to the provisions identified by the
100.12 legislature under subdivision 9, paragraph (b), are less than the assumed savings in
100.13 subdivision 9, paragraph (a), beginning July 1, 2027, or upon federal approval, whichever
100.14 is later, the commissioner of human services must implement the following changes to
100.15 produce an amount of savings in the biennium beginning July 1, 2027, equal to the difference
100.16 between savings attributable to the enacted provisions identified under subdivision 9,
100.17 paragraph (b), and the applicable assumed savings in subdivision 9, paragraph (a):
100.18(1) if a bond appropriation for the replacement of the Miller Building on the Anoka
100.19 Metro Regional Treatment Center Campus is enacted during a 2025 special session:
100.20(i) adjust the value of the competitive workforce factors in Minnesota Statutes, section
100.21 256B.4914, subdivisions 6 to 9, to produce 49.58 percent of the required savings; and
100.22(ii) impose a county share of medical assistance costs not paid by federal funds for
100.23 services provided to a person receiving community residential services, family residential
100.24 services, customized living services, or integrated community supports reimbursed under
100.25 Minnesota Statutes, section 256B.4914, to produce 50.42 percent of the required savings;
100.26 or
100.27(2) if a bond appropriation for the replacement of the Miller Building on the Anoka
100.28 Metro Regional Treatment Center Campus is not enacted during a 2025 special session:
100.29(i) adjust the value of the competitive workforce factors in Minnesota Statutes, section
100.30 256B.4914, subdivisions 6 to 9, to produce 49.48 percent of the required savings; and
100.31(ii) impose a county share of medical assistance costs not paid by federal funds for
100.32 services provided to a person receiving community residential services, family residential
  Article 2 Sec. 58.  100
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
101.1  services, customized living services, or integrated community supports reimbursed under
101.2  Minnesota Statutes, section 256B.4914, to produce 50.52 percent of the required savings.
101.3      Subd. 11. Expiration. The advisory council expires July 1, 2028.
101.4      EFFECTIVE DATE. This section is effective July 1, 2025.
101.5    Sec. 59. POSITIVE SUPPORTS COMPETENCY PROGRAM.
101.6      (a) The commissioner shall establish a positive supports competency program with the
101.7  money appropriated for this purpose.
101.8      (b) When establishing the positive supports competency program, the commissioner
101.9  must use a community partner driven process to:
101.10     (1) define the core activities associated with effective intervention services at the positive
101.11 support specialist, positive support analyst, and positive support professional level;
101.12     (2) create tools providers may use to track whether the provider's positive support
101.13 specialists, positive support analysts, and positive support professionals are competently
101.14 performing the core activities associated with effective intervention services;
101.15     (3) align existing training systems funded through the Department of Human Services
101.16 and develop free online modules for competency-based training to prepare positive support
101.17 specialists, positive support analysts, and positive support professionals to provide effective
101.18 intervention services;
101.19     (4) assist providers interested in utilizing a competency-based training model to create
101.20 a career pathway for the positive support analysts and positive support specialists within
101.21 the provider's organizations by using experienced professionals;
101.22     (5) create written guidelines, stories, and examples for providers that will be placed on
101.23 Department of Human Services websites promoting capacity building; and
101.24     (6) disseminate resources and guidance to providers interested in meeting
101.25 competency-based qualifications for positive supports via preexisting regional networks of
101.26 experts, including communities of practice, and develop new avenues for disseminating
101.27 these resources and guidance, including through implementation of ECHO models.
101.28   Sec. 60. BUDGET INCREASE FOR CONSUMER-DIRECTED COMMUNITY
101.29 SUPPORTS.
101.30     Effective January 1, 2026, or upon federal approval, whichever is later, the commissioner
101.31 of human services must increase the consumer-directed community support budgets identified
  Article 2 Sec. 60.  101
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
102.1  in the waiver plans under Minnesota Statutes, sections 256B.092 and 256B.49, and chapter
102.2  256S; and the alternative care program under Minnesota Statutes, section 256B.0913, by
102.3  0.13 percent.
102.4      EFFECTIVE DATE. This section is effective the day following final enactment.
102.5    Sec. 61. ENHANCED BUDGET INCREASE FOR CONSUMER-DIRECTED
102.6  COMMUNITY SUPPORTS.
102.7      Effective January 1, 2026, or upon federal approval, whichever is later, the commissioner
102.8  of human services must increase the consumer-directed community supports budget
102.9  enhancement percentage identified in the waiver plans under Minnesota Statutes, sections
102.10 256B.092 and 256B.49, and chapter 256S; and the alternative care program under Minnesota
102.11 Statutes, section 256B.0913, from 7.5 to 12.5.
102.12     EFFECTIVE DATE. This section is effective the day following final enactment.
102.13   Sec. 62. STIPEND PAYMENTS TO SEIU HEALTHCARE MINNESOTA & IOWA
102.14 BARGAINING UNIT MEMBERS.
102.15     (a) The commissioner of human services shall issue stipend payments to collective
102.16 bargaining unit members as required by the labor agreement between the state of Minnesota
102.17 and the Service Employees International Union (SEIU) Healthcare Minnesota & Iowa.
102.18     (b) The definitions in Minnesota Statutes, section 290.01, apply to this section.
102.19     (c) For the purposes of this section, "subtraction" has the meaning given in Minnesota
102.20 Statutes, section 290.0132, subdivision 1, and the rules in that subdivision apply to this
102.21 section.
102.22     (d) The amount of stipend payments received by SEIU Healthcare Minnesota & Iowa
102.23 collective bargaining unit members under this section is a subtraction.
102.24     (e) The amount of stipend payments received by SEIU Healthcare Minnesota & Iowa
102.25 collective bargaining unit members under this section is excluded from income as defined
102.26 in Minnesota Statutes, sections 290.0693, subdivision 1, paragraph (i), and 290A.03,
102.27 subdivision 3.
102.28     (f) Notwithstanding any law to the contrary, stipend payments under this section must
102.29 not be considered income, assets, or personal property for purposes of determining or
102.30 recertifying eligibility for:
102.31     (1) child care assistance programs under Minnesota Statutes, chapter 142E;
  Article 2 Sec. 62.  102
  06/07/25  REVISOR       DTT/RC  25-05696  as introduced
103.1      (2) general assistance, Minnesota supplemental aid, and food support under Minnesota
103.2  Statutes, chapter 256D;
103.3      (3) housing support under Minnesota Statutes, chapter 256I;
103.4      (4) the Minnesota family investment program under Minnesota Statutes, chapter 142G;
103.5  and
103.6      (5) economic assistance programs under Minnesota Statutes, chapter 256P.
103.7      (g) The commissioner of human services must not consider stipend payments under this
103.8  section as income or assets under Minnesota Statutes, section 256B.056, subdivision 1a,
103.9  paragraph (a); 3; or 3c, or for persons with eligibility determined under Minnesota Statutes,
103.10 section 256B.057, subdivision 3, 3a, or 3b.
103.11     EFFECTIVE DATE. This section is effective the day following final enactment.
103.12   Sec. 63. DIRECTION TO COMMISSIONER; COST REPORTING IMPROVEMENT
103.13 AND DIRECT CARE STAFF REVIEW.
103.14     (a) The commissioner of human services must consult with interested parties and make
103.15 recommendations to the legislature to clarify provider cost reporting obligations to promote
103.16 more uniform and meaningful data collection under Minnesota Statutes, section 256B.4914.
103.17 By February 15, 2026, the commissioner must submit to the chairs and ranking minority
103.18 members of the legislative committees with jurisdiction over health and human services
103.19 policy and finance draft legislation required to implement the commissioner's
103.20 recommendations.
103.21     (b) The commissioner of human services must consult with interested parties and, based
103.22 on the results of the cost reporting completed for calendar year 2026, recommend what, if
103.23 any, encumbrance of medical assistance reimbursement is appropriate to support direct care
103.24 staff retention and the provision of quality services under Minnesota Statutes, section
103.25 256B.4914. By January 15, 2028, the commissioner must submit to the chairs and ranking
103.26 minority members of the legislative committees with jurisdiction over health and human
103.27 services policy and finance draft legislation required to implement the commissioner's
103.28 recommendations.
103.29   Sec. 64. DIRECTION TO THE COMMISSIONER OF HUMAN SERVICES;
103.30 LONG-TERM CARE CONSULTATION SERVICES PAYMENT REFORM.
103.31     Subdivision 1. Development of alternative payment methodology for long-term care
103.32 consultation services. (a) The commissioner of human services must develop a proposal
  Article 2 Sec. 64.  103
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
104.1  for a long-term care consultation services payment methodology that does not rely on a
104.2  time study to determine reimbursement to the counties for providing long-term care
104.3  consultation services under Minnesota Statutes, section 256B.0911. The new reimbursement
104.4  methodology must be a methodology that:
104.5      (1) results in a flat reimbursement amount per long-term care consultation assessment
104.6  under Minnesota Statutes, section 256B.0911;
104.7      (2) reduces expected general fund spending during the biennium beginning July 1, 2027,
104.8  by at least the amount assumed in subdivision 2, paragraph (a);
104.9      (3) preserves the commissioner's ability to allocate to medical assistance costs incurred
104.10 by counties for providing long-term care consultation services; and
104.11     (4) does not jeopardize the commissioner's ability to allocate other local administrative
104.12 costs to medical assistance or other federal programs.
104.13     (b) By October 1, 2026, the commissioner must submit to the chairs and ranking minority
104.14 members of the legislative committees with jurisdiction over medical assistance long-term
104.15 services and supports the proposal developed under paragraph (a) and any draft legislation
104.16 required to implement the proposal.
104.17     Subd. 2. Savings determination. (a) When preparing the forecast for state revenues and
104.18 expenditures under Minnesota Statutes, section 16A.103, the commissioner of management
104.19 and budget must assume a reduction of human services general fund spending of $18,000,000
104.20 for the biennium beginning July 1, 2027, until the end of the legislative session that enacts
104.21 a budget for the commissioner of human services for the biennium beginning July 1, 2027.
104.22     (b) Upon enactment of a budget for the commissioner of human services for the biennium
104.23 beginning July 1, 2027, the legislature must identify enacted provisions that were
104.24 recommended by or based on the proposal submitted by the commissioner of human services
104.25 under subdivision 1.
104.26     (c) To the extent the net savings attributable to the provisions identified by the legislature
104.27 under paragraph (b) for the biennium beginning July 1, 2027, are less than the assumed
104.28 savings in paragraph (a), the commissioner of human services shall implement the contingent
104.29 reductions in reimbursement to counties described in subdivision 3.
104.30     Subd. 3. Contingent reimbursement reductions. If upon enactment of a budget for
104.31 the commissioner of human services for the biennium beginning July 1, 2027, the net savings
104.32 for the biennium beginning July 1, 2027, attributable to the provisions identified by the
104.33 legislature under subdivision 2, paragraph (b), are less than the assumed savings in
  Article 2 Sec. 64.  104
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
105.1  subdivision 2, paragraph (a), notwithstanding Minnesota Statutes, section 256B.0911,
105.2  subdivision 33, the commissioner of human services must reduce the percentage of the
105.3  nonfederal share for the provision of long-term care consultation services the state pays to
105.4  the counties as reimbursement to a value that will produce by June 30, 2029, a net reduction
105.5  in expected general fund expenditures equal to the difference between the savings attributable
105.6  to the provisions identified in subdivision 2, paragraph (b), and the assumed savings in
105.7  subdivision 2, paragraph (a).
105.8      EFFECTIVE DATE. This section is effective July 1, 2025.
105.9    Sec. 65. COMMUNITY FIRST SERVICES AND SUPPORTS REIMBURSEMENT
105.10 DURING ACUTE CARE HOSPITAL STAYS.
105.11     (a) The commissioner of human services must seek to amend Minnesota's federally
105.12 approved community first services and supports program, authorized under United States
105.13 Code, title 42, sections 1915(i) and 1915(k), to reimburse for delivery of community first
105.14 services and supports under Minnesota Statutes, sections 256B.85 and 256B.851, during
105.15 an acute care stay in an acute care hospital setting that does not have the effect of isolating
105.16 individuals receiving community first services and supports from the broader community
105.17 of individuals not receiving community first services and supports, as permitted under Code
105.18 of Federal Regulations, title 42, section 441.530.
105.19     (b) Reimbursed services must:
105.20     (1) be identified in an individual's person-centered support plan as required under
105.21 Minnesota Statutes, section 256B.0911;
105.22     (2) be provided to meet the needs of the person that are not met through the provision
105.23 of hospital services;
105.24     (3) not substitute services that the hospital is obligated to provide as required under state
105.25 and federal law; and
105.26     (4) be designed to preserve the person's functional abilities during a hospital stay for
105.27 acute care and to ensure smooth transitions between acute care settings and home and
105.28 community-based settings.
105.29     EFFECTIVE DATE. Paragraph (a) is effective the day following final enactment.
105.30 Paragraph (b) is effective January 1, 2026, or upon federal approval, whichever is later. The
105.31 commissioner of human services shall notify the revisor of statutes when federal approval
105.32 is obtained.
  Article 2 Sec. 65.  105
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
106.1    Sec. 66. DIRECTION TO COMMISSIONER; GUIDANCE TO COUNTIES.
106.2      Upon receipt of approval from the Centers for Medicare and Medicaid Services, the
106.3  commissioner of human services shall provide guidance to counties on the administration
106.4  of the family support program under Minnesota Statutes, section 252.32; the consumer
106.5  support program under Minnesota Statutes, section 256.476; disability waivers under
106.6  Minnesota Statutes, sections 256B.092 and 256B.49; and the community first services and
106.7  supports program under Minnesota Statutes, section 256B.85, to clarify that the cost of
106.8  adaptive or one-on-one swimming lessons provided to a person younger than 12 years of
106.9  age whose disability puts the person at a higher risk of drowning according to the Centers
106.10 for Disease Control Vital Statistics System is an allowable use of money.
106.11   Sec. 67. DIRECTION TO COMMISSIONER; SWIMMING LESSONS COVERED
106.12 UNDER DISABILITY WAIVERS.
106.13     The commissioner of human services shall include swimming lessons for a participant
106.14 younger than 12 years of age whose disability puts the participant at a higher risk of drowning
106.15 as a covered service under the disability waivers, including the consumer-directed community
106.16 supports option, under Minnesota Statutes, sections 256B.092 and 256B.49.
106.17     EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval,
106.18 whichever is later. The commissioner of human services shall notify the revisor of statutes
106.19 when federal approval is obtained.
106.20   Sec. 68. DIRECTION TO THE COMMISSIONER OF HUMAN SERVICES;
106.21 INCREASE TO PAYMENTS FOR FAMILY RESIDENTIAL AND LIFE SHARING
106.22 SERVICES.
106.23     Effective January 1, 2026, or upon federal approval, whichever is later, the commissioner
106.24 of human services must increase by 25.84 percent payment rates previously established
106.25 under Minnesota Statutes, section 256B.4914, subdivision 19, for family residential services.
106.26 Rates for life sharing services must be ten percent higher than the corresponding family
106.27 residential services rate established under this section.
106.28   Sec. 69. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; OPTIONAL
106.29 CONSULTATION SERVICES.
106.30     The commissioner of human services may submit a medical assistance state plan
106.31 amendment to permit consultation services that are currently required under the community
106.32 first services and supports program to be an optional service for individuals receiving waiver
  Article 2 Sec. 69.  106
  06/07/25  REVISOR      DTT/RC  25-05696  as introduced
107.1  case management services under Minnesota Statutes, sections 256B.0913, 256B.092,
107.2  256B.0922, and 256B.49, or Minnesota Statutes, chapter 256S.
107.3    Sec. 70. REPEALER.
107.4      Subdivision 1. Direct care provider premiums. Laws 2023, chapter 59, article 3, section
107.5  11, is repealed.
107.6      Subd. 2. Legislative Task Force on Guardianship. Laws 2024, chapter 127, article
107.7  46, section 39, is repealed.
107.8      Subd. 3. Repealing laws. (a) Laws 2021, First Special Session chapter 7, article 13,
107.9  section 75, subdivision 3, as amended by Laws 2024, chapter 108, article 1, section 28, is
107.10 repealed.
107.11     (b) Laws 2021, First Special Session chapter 7, article 13, section 75, subdivision 6, as
107.12 amended by Laws 2024, chapter 108, article 1, section 28, is repealed.
107.13     EFFECTIVE DATE. This section is effective July 1, 2025.
107.14ARTICLE 3
107.15HEALTH CARE
107.16   Section 1. Minnesota Statutes 2024, section 256.01, is amended by adding a subdivision
107.17 to read:
107.18     Subd. 29a. State medical review team; expedited disability determinations. (a) The
107.19 commissioner must establish an expedited disability determination process within the state
107.20 medical review team for applicants in the following high-risk categories:
107.21     (1) individuals in a facility who cannot be discharged without home and community-based
107.22 services or long-term care supports in place;
107.23     (2) individuals experiencing life-threatening medical conditions requiring urgent access
107.24 to treatment or prescription medication;
107.25     (3) individuals diagnosed with a condition listed on the Social Security Administration's
107.26 Compassionate Allowance List; and
107.27     (4) children under the age of two who have screened positive for a rare disease recognized
107.28 by national medical registries or evidence-based standards.
  Article 3 Section 1.  107
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
108.1      (b) Hospitals submitting requests under paragraph (a) must complete an application for
108.2  medical assistance prior to an expedited request and assist patients with returning required
108.3  documentation necessary to determine disability.
108.4      (c) The commissioner must designate staff within the state medical review team to
108.5  coordinate expedited requests, communicate with county and tribal agencies, and ensure
108.6  timely electronic transmission of required documentation, including the use of electronic
108.7  signature platforms.
108.8      (d) For applicants subject to expedited review, medical assistance providers must comply
108.9  with subdivision 29. If electronic health records are unavailable, requesting providers must
108.10 coordinate with the state medical review team to obtain the medical records necessary to
108.11 support the disability determination.
108.12     (e) The commissioner must maintain a contract for electronic signature and document
108.13 transmission services to support expedited determinations.
108.14     EFFECTIVE DATE. This section is effective the day following final enactment.
108.15   Sec. 2. Minnesota Statutes 2024, section 256B.766, is amended to read:
108.16     256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.
108.17     Subdivision 1. Payment reductions for base care services effective July 1, 2009. (a)
108.18 Effective for services provided on or after July 1, 2009, total payments for basic care services,
108.19 shall be reduced by three percent, except that for the period July 1, 2009, through June 30,
108.20 2011, total payments shall be reduced by 4.5 percent for the medical assistance and general
108.21 assistance medical care programs, prior to third-party liability and spenddown calculation.
108.22     Subd. 2. Classification of therapies as basic care services. Effective July 1, 2010, The
108.23 commissioner shall classify physical therapy services, occupational therapy services, and
108.24 speech-language pathology and related services as basic care services. The reduction in this
108.25 paragraph subdivision 1 shall apply to physical therapy services, occupational therapy
108.26 services, and speech-language pathology and related services provided on or after July 1,
108.27 2010.
108.28     Subd. 3. Payment reductions to managed care plans effective October 1, 2009. (b)
108.29 Payments made to managed care plans and county-based purchasing plans shall be reduced
108.30 for services provided on or after October 1, 2009, to reflect the reduction in subdivision 1
108.31 effective July 1, 2009, and payments made to the plans shall be reduced effective October
108.32 1, 2010, to reflect the reduction in subdivision 1 effective July 1, 2010.
  Article 3 Sec. 2.  108
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
109.1      Subd. 4. Temporary payment reductions effective September 1, 2011. (c) (a) Effective
109.2  for services provided on or after September 1, 2011, through June 30, 2013, total payments
109.3  for outpatient hospital facility fees shall be reduced by five percent from the rates in effect
109.4  on August 31, 2011.
109.5      (d) (b) Effective for services provided on or after September 1, 2011, through June 30,
109.6  2013, total payments for ambulatory surgery centers facility fees, medical supplies and
109.7  durable medical equipment not subject to a volume purchase contract, prosthetics and
109.8  orthotics, renal dialysis services, laboratory services, public health nursing services, physical
109.9  therapy services, occupational therapy services, speech therapy services, eyeglasses not
109.10 subject to a volume purchase contract, hearing aids not subject to a volume purchase contract,
109.11 and anesthesia services shall be reduced by three percent from the rates in effect on August
109.12 31, 2011.
109.13     Subd. 5. Payment increases effective September 1, 2014. (e) (a) Effective for services
109.14 provided on or after September 1, 2014, payments for ambulatory surgery centers facility
109.15 fees, hospice services, renal dialysis services, laboratory services, public health nursing
109.16 services, eyeglasses not subject to a volume purchase contract, and hearing aids not subject
109.17 to a volume purchase contract shall be increased by three percent and payments for outpatient
109.18 hospital facility fees shall be increased by three percent.
109.19     (b) Payments made to managed care plans and county-based purchasing plans shall not
109.20 be adjusted to reflect payments under this paragraph subdivision.
109.21     Subd. 6. Temporary payment reductions effective July 1, 2014. (f) Payments for
109.22 medical supplies and durable medical equipment not subject to a volume purchase contract,
109.23 and prosthetics and orthotics, provided on or after July 1, 2014, through June 30, 2015, shall
109.24 be decreased by .33 percent.
109.25     Subd. 7. Payment increases effective July 1, 2015. (a) Payments for medical supplies
109.26 and durable medical equipment not subject to a volume purchase contract, and prosthetics
109.27 and orthotics, provided on or after July 1, 2015, shall be increased by three percent from
109.28 the rates as determined under paragraphs (i) and (j) subdivisions 9 and 10.
109.29     (g) (b) Effective for services provided on or after July 1, 2015, payments for outpatient
109.30 hospital facility fees, medical supplies and durable medical equipment not subject to a
109.31 volume purchase contract, prosthetics, and orthotics to a hospital meeting the criteria specified
109.32 in section 62Q.19, subdivision 1, paragraph (a), clause (4), shall be increased by 90 percent
109.33 from the rates in effect on June 30, 2015.
  Article 3 Sec. 2.  109
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110.1      (c) Payments made to managed care plans and county-based purchasing plans shall not
110.2  be adjusted to reflect payments under this paragraph (b).
110.3      Subd. 8. Exempt services. (h) This section does not apply to physician and professional
110.4  services, inpatient hospital services, family planning services, mental health services, dental
110.5  services, prescription drugs, medical transportation, federally qualified health centers, rural
110.6  health centers, Indian health services, and Medicare cost-sharing.
110.7      Subd. 9. Individually priced items. (i) (a) Effective for services provided on or after
110.8  July 1, 2015, the following categories of medical supplies and durable medical equipment
110.9  shall be individually priced items: customized and other specialized tracheostomy tubes
110.10 and supplies, electric patient lifts, and durable medical equipment repair and service.
110.11     (b) This paragraph subdivision does not apply to medical supplies and durable medical
110.12 equipment subject to a volume purchase contract, products subject to the preferred diabetic
110.13 testing supply program, and items provided to dually eligible recipients when Medicare is
110.14 the primary payer for the item.
110.15     (c) The commissioner shall not apply any medical assistance rate reductions to durable
110.16 medical equipment as a result of Medicare competitive bidding.
110.17     Subd. 10. Rate increases effective July 1, 2015. (j) (a) Effective for services provided
110.18 on or after July 1, 2015, medical assistance payment rates for durable medical equipment,
110.19 prosthetics, orthotics, or supplies shall be increased as follows:
110.20     (1) payment rates for durable medical equipment, prosthetics, orthotics, or supplies that
110.21 were subject to the Medicare competitive bid that took effect in January of 2009 shall be
110.22 increased by 9.5 percent; and
110.23     (2) payment rates for durable medical equipment, prosthetics, orthotics, or supplies on
110.24 the medical assistance fee schedule, whether or not subject to the Medicare competitive bid
110.25 that took effect in January of 2009, shall be increased by 2.94 percent, with this increase
110.26 being applied after calculation of any increased payment rate under clause (1).
110.27     This (b) Paragraph (a) does not apply to medical supplies and durable medical equipment
110.28 subject to a volume purchase contract, products subject to the preferred diabetic testing
110.29 supply program, items provided to dually eligible recipients when Medicare is the primary
110.30 payer for the item, and individually priced items identified in paragraph (i) subdivision 9.
110.31     (c) Payments made to managed care plans and county-based purchasing plans shall not
110.32 be adjusted to reflect the rate increases in this paragraph subdivision.
  Article 3 Sec. 2.  110
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111.1      Subd. 11. Rates for ventilators. (k) (a) Effective for nonpressure support ventilators
111.2  provided on or after January 1, 2016, the rate shall be the lower of the submitted charge or
111.3  the Medicare fee schedule rate.
111.4      (b) Effective for pressure support ventilators provided on or after January 1, 2016, the
111.5  rate shall be the lower of the submitted charge or 47 percent above the Medicare fee schedule
111.6  rate.
111.7      (c) For payments made in accordance with this paragraph subdivision, if, and to the
111.8  extent that, the commissioner identifies that the state has received federal financial
111.9  participation for ventilators in excess of the amount allowed effective January 1, 2018,
111.10 under United States Code, title 42, section 1396b(i)(27), the state shall repay the excess
111.11 amount to the Centers for Medicare and Medicaid Services with state funds and maintain
111.12 the full payment rate under this paragraph subdivision.
111.13     Subd. 12. Rates subject to the upper payment limit. (l) Payment rates for durable
111.14 medical equipment, prosthetics, orthotics or supplies, that are subject to the upper payment
111.15 limit in accordance with section 1903(i)(27) of the Social Security Act, shall be paid the
111.16 Medicare rate. Rate increases provided in this chapter shall not be applied to the items listed
111.17 in this paragraph subdivision.
111.18     Subd. 13. Temporary rates for enteral nutrition and supplies. (m) (a) For dates of
111.19 service on or after July 1, 2023, through June 30, 2025 2027, enteral nutrition and supplies
111.20 must be paid according to this paragraph subdivision. If sufficient data exists for a product
111.21 or supply, payment must be based upon the 50th percentile of the usual and customary
111.22 charges per product code submitted to the commissioner, using only charges submitted per
111.23 unit. Increases in rates resulting from the 50th percentile payment method must not exceed
111.24 150 percent of the previous fiscal year's rate per code and product combination. Data are
111.25 sufficient if: (1) the commissioner has at least 100 paid claim lines by at least ten different
111.26 providers for a given product or supply; or (2) in the absence of the data in clause (1), the
111.27 commissioner has at least 20 claim lines by at least five different providers for a product or
111.28 supply that does not meet the requirements of clause (1). If sufficient data are not available
111.29 to calculate the 50th percentile for enteral products or supplies, the payment rate must be
111.30 the payment rate in effect on June 30, 2023.
111.31     (b) This subdivision expires June 30, 2027.
111.32     Subd. 14. Rates for enteral nutrition and supplies. (n) For dates of service on or after
111.33 July 1, 2025 2027, enteral nutrition and supplies must be paid according to this paragraph
111.34 subdivision and updated annually each January 1. If sufficient data exists for a product or
  Article 3 Sec. 2.  111
  06/07/25  REVISOR      DTT/RC  25-05696  as introduced
112.1  supply, payment must be based upon the 50th percentile of the usual and customary charges
112.2  per product code submitted to the commissioner for the previous calendar year, using only
112.3  charges submitted per unit. Increases in rates resulting from the 50th percentile payment
112.4  method must not exceed 150 percent of the previous year's rate per code and product
112.5  combination. Data are sufficient if: (1) the commissioner has at least 100 paid claim lines
112.6  by at least ten different providers for a given product or supply; or (2) in the absence of the
112.7  data in clause (1), the commissioner has at least 20 claim lines by at least five different
112.8  providers for a product or supply that does not meet the requirements of clause (1). If
112.9  sufficient data are not available to calculate the 50th percentile for enteral products or
112.10 supplies, the payment must be the manufacturer's suggested retail price of that product or
112.11 supply minus 20 percent. If the manufacturer's suggested retail price is not available, payment
112.12 must be the actual acquisition cost of that product or supply plus 20 percent.
112.13ARTICLE 4
112.14SUBSTANCE USE DISORDER TREATMENT
112.15   Section 1. Minnesota Statutes 2024, section 245.735, subdivision 3, is amended to read:
112.16     Subd. 3. Certified community behavioral health clinics. (a) The commissioner shall
112.17 establish state certification and recertification processes for certified community behavioral
112.18 health clinics (CCBHCs) that satisfy all federal requirements necessary for CCBHCs certified
112.19 under this section to be eligible for reimbursement under medical assistance, without service
112.20 area limits based on geographic area or region. The commissioner shall consult with CCBHC
112.21 stakeholders before establishing and implementing changes in the certification or
112.22 recertification process and requirements. Any changes to the certification or recertification
112.23 process or requirements must be consistent with the most recently issued Certified
112.24 Community Behavioral Health Clinic Certification Criteria published by the Substance
112.25 Abuse and Mental Health Services Administration. The commissioner must allow a transition
112.26 period for CCBHCs to meet the revised criteria on or before January 1, 2025. The
112.27 commissioner is authorized to amend the state's Medicaid state plan or the terms of the
112.28 demonstration to comply with federal requirements.
112.29     (b) As part of the state CCBHC certification and recertification processes, the
112.30 commissioner shall provide to entities applying for certification or requesting recertification
112.31 the standard requirements of the community needs assessment and the staffing plan that are
112.32 consistent with the most recently issued Certified Community Behavioral Health Clinic
112.33 Certification Criteria published by the Substance Abuse and Mental Health Services
112.34 Administration.
  Article 4 Section 1.  112
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113.1      (c) The commissioner shall schedule a certification review that includes a site visit within
113.2  90 calendar days of receipt of an application for certification or recertification.
113.3      (d) Entities that choose to be CCBHCs must:
113.4      (1) complete a community needs assessment and complete a staffing plan that is
113.5  responsive to the needs identified in the community needs assessment and update both the
113.6  community needs assessment and the staffing plan no less frequently than every 36 months;
113.7      (2) comply with state licensing requirements and other requirements issued by the
113.8  commissioner;
113.9      (3) employ or contract with a medical director. A medical director must be a physician
113.10 licensed under chapter 147 and either certified by the American Board of Psychiatry and
113.11 Neurology, certified by the American Osteopathic Board of Neurology and Psychiatry, or
113.12 eligible for board certification in psychiatry. A registered nurse who is licensed under
113.13 sections 148.171 to 148.285 and is certified as a nurse practitioner in adult or family
113.14 psychiatric and mental health nursing by a national nurse certification organization may
113.15 serve as the medical director when a CCBHC is unable to employ or contract a qualified
113.16 physician;
113.17     (4) employ or contract for clinic staff who have backgrounds in diverse disciplines,
113.18 including licensed mental health professionals and licensed alcohol and drug counselors,
113.19 and staff who are culturally and linguistically trained to meet the needs of the population
113.20 the clinic serves;
113.21     (5) ensure that clinic services are available and accessible to individuals and families of
113.22 all ages and genders with access on evenings and weekends and that crisis management
113.23 services are available 24 hours per day;
113.24     (6) establish fees for clinic services for individuals who are not enrolled in medical
113.25 assistance using a sliding fee scale that ensures that services to patients are not denied or
113.26 limited due to an individual's inability to pay for services;
113.27     (7) comply with quality assurance reporting requirements and other reporting
113.28 requirements included in the most recently issued Certified Community Behavioral Health
113.29 Clinic Certification Criteria published by the Substance Abuse and Mental Health Services
113.30 Administration;
113.31     (8) provide crisis mental health and substance use services, withdrawal management
113.32 services, emergency crisis intervention services, and stabilization services through existing
113.33 mobile crisis services; screening, assessment, and diagnosis services, including risk
  Article 4 Section 1.  113
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114.1  assessments and level of care determinations; person- and family-centered treatment planning;
114.2  outpatient mental health and substance use services; targeted case management; psychiatric
114.3  rehabilitation services; peer support and counselor services and family support services;
114.4  and intensive community-based mental health services, including mental health services
114.5  for members of the armed forces and veterans. CCBHCs must directly provide the majority
114.6  of these services to enrollees, but may coordinate some services with another entity through
114.7  a collaboration or agreement, pursuant to subdivision 3a;
114.8      (9) provide coordination of care across settings and providers to ensure seamless
114.9  transitions for individuals being served across the full spectrum of health services, including
114.10 acute, chronic, and behavioral needs;
114.11     (10) be certified as a mental health clinic under section 245I.20;
114.12     (11) comply with standards established by the commissioner relating to CCBHC
114.13 screenings, assessments, and evaluations that are consistent with this section;
114.14     (12) be licensed to provide substance use disorder treatment under chapter 245G;
114.15     (13) be certified to provide children's therapeutic services and supports under section
114.16 256B.0943;
114.17     (14) be certified to provide adult rehabilitative mental health services under section
114.18 256B.0623;
114.19     (15) be enrolled to provide mental health crisis response services under section
114.20 256B.0624;
114.21     (16) be enrolled to provide mental health targeted case management under section
114.22 256B.0625, subdivision 20;
114.23     (17) provide services that comply with the evidence-based practices described in
114.24 subdivision 3d;
114.25     (18) provide peer services as defined in sections 256B.0615, 256B.0616, and 245G.07,
114.26 subdivision 2 2a, paragraph (b), clause (8) (2), as applicable when peer services are provided;
114.27 and
114.28     (19) inform all clients upon initiation of care of the full array of services available under
114.29 the CCBHC model.
114.30     EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
114.31 whichever is later. The commissioner of human services shall notify the revisor of statutes
114.32 when federal approval is obtained.
  Article 4 Section 1.  114
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
115.1    Sec. 2. Minnesota Statutes 2024, section 245.91, subdivision 4, as amended by Laws 2025,
115.2  chapter 38, article 8, section 48, is amended to read:
115.3      Subd. 4. Facility or program. "Facility" or "program" means a nonresidential or
115.4  residential program as defined in section 245A.02, subdivisions 10 and 14, and any agency,
115.5  facility, or program that provides services or treatment for mental illness, developmental
115.6  disability, or substance use disorder that is required to be licensed, certified, or registered
115.7  by the commissioner of human services, health, or education; a sober home recovery
115.8  residence as defined in section 254B.01, subdivision 11; peer recovery support services
115.9  provided by a recovery community organization as defined in section 254B.01, subdivision
115.10 8; and an acute care inpatient facility that provides services or treatment for mental illness,
115.11 developmental disability, or substance use disorder.
115.12     EFFECTIVE DATE. This section is effective January 1, 2027.
115.13   Sec. 3. Minnesota Statutes 2024, section 245F.08, subdivision 3, is amended to read:
115.14     Subd. 3. Peer recovery support services. Peer recovery support services must meet the
115.15 requirements in section 245G.07, subdivision 2 2a, paragraph (b), clause (8) (2), and must
115.16 be provided by a person who is qualified according to the requirements in section 245F.15,
115.17 subdivision 7.
115.18     EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
115.19 whichever is later. The commissioner of human services shall notify the revisor of statutes
115.20 when federal approval is obtained.
115.21   Sec. 4. Minnesota Statutes 2024, section 245G.01, subdivision 13b, is amended to read:
115.22     Subd. 13b. Guest speaker. (a) "Guest speaker" means an individual who is not an alcohol
115.23 and drug counselor qualified according to section 245G.11, subdivision 5; is not qualified
115.24 according to the commissioner's list of professionals under section 245G.07, subdivision
115.25 3; and who works under the direct observation of an alcohol and drug counselor to present
115.26 to clients on topics in which the guest speaker has expertise and that the license holder has
115.27 determined to be beneficial to a client's recovery.
115.28     (b) Tribally licensed programs have autonomy to identify the qualifications of their guest
115.29 speakers.
  Article 4 Sec. 4.  115
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
116.1    Sec. 5. Minnesota Statutes 2024, section 245G.01, is amended by adding a subdivision to
116.2  read:
116.3      Subd. 13d. Individual counseling. "Individual counseling" means professionally led
116.4  psychotherapeutic treatment for substance use disorders that is delivered in a one-to-one
116.5  setting or in a setting with the client and the client's family and other natural supports.
116.6      EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
116.7  whichever is later. The commissioner of human services shall notify the revisor of statutes
116.8  when federal approval is obtained.
116.9    Sec. 6. Minnesota Statutes 2024, section 245G.01, is amended by adding a subdivision to
116.10 read:
116.11     Subd. 20f. Psychoeducation. "Psychoeducation" means the services described in section
116.12 245G.07, subdivision 1a, clause (2).
116.13     EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
116.14 whichever is later. The commissioner of human services shall notify the revisor of statutes
116.15 when federal approval is obtained.
116.16   Sec. 7. Minnesota Statutes 2024, section 245G.01, is amended by adding a subdivision to
116.17 read:
116.18     Subd. 20g. Psychosocial treatment services. "Psychosocial treatment services" means
116.19 the services described in section 245G.07, subdivision 1a.
116.20     EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
116.21 whichever is later. The commissioner of human services shall notify the revisor of statutes
116.22 when federal approval is obtained.
116.23   Sec. 8. Minnesota Statutes 2024, section 245G.01, is amended by adding a subdivision to
116.24 read:
116.25     Subd. 20h. Recovery support services. "Recovery support services" means the services
116.26 described in section 245G.07, subdivision 2a, paragraph (b), clause (1).
116.27     EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
116.28 whichever is later. The commissioner of human services shall notify the revisor of statutes
116.29 when federal approval is obtained.
  Article 4 Sec. 8.  116
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
117.1    Sec. 9. Minnesota Statutes 2024, section 245G.01, is amended by adding a subdivision to
117.2  read:
117.3      Subd. 26a. Treatment coordination. "Treatment coordination" means the services
117.4  described in section 245G.07, subdivision 1b.
117.5      EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
117.6  whichever is later. The commissioner of human services shall notify the revisor of statutes
117.7  when federal approval is obtained.
117.8    Sec. 10. Minnesota Statutes 2024, section 245G.02, subdivision 2, is amended to read:
117.9      Subd. 2. Exemption from license requirement. This chapter does not apply to a county
117.10 or recovery community organization that is providing a service for which the county or
117.11 recovery community organization is an eligible vendor under section 254B.05. This chapter
117.12 does not apply to an organization whose primary functions are information, referral,
117.13 diagnosis, case management, and assessment for the purposes of client placement, education,
117.14 support group services, or self-help programs. This chapter does not apply to the activities
117.15 of a licensed professional in private practice. A license holder providing the initial set of
117.16 substance use disorder services allowable under section 254A.03, subdivision 3, paragraph
117.17 (c), to an individual referred to a licensed nonresidential substance use disorder treatment
117.18 program after a positive screen for alcohol or substance misuse is exempt from sections
117.19 245G.05; 245G.06, subdivisions 1, 1a, and 4; 245G.07, subdivisions 1, paragraph (a), clauses
117.20 (2) to (4), and 2, clauses (1) to (7) subdivision 1a, clause (2); and 245G.17.
117.21     EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
117.22 whichever is later. The commissioner of human services shall notify the revisor of statutes
117.23 when federal approval is obtained.
117.24   Sec. 11. Minnesota Statutes 2024, section 245G.07, subdivision 1, is amended to read:
117.25     Subdivision 1. Treatment service. (a) A licensed residential treatment program must
117.26 offer the treatment services in clauses (1) to (5) subdivisions 1a and 1b and may offer the
117.27 treatment services in subdivision 2 to each client, unless clinically inappropriate and the
117.28 justifying clinical rationale is documented. A nonresidential The treatment program must
117.29 offer all treatment services in clauses (1) to (5) and document in the individual treatment
117.30 plan the specific services for which a client has an assessed need and the plan to provide
117.31 the services:.
  Article 4 Sec. 11.  117
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
118.1      (1) individual and group counseling to help the client identify and address needs related
118.2  to substance use and develop strategies to avoid harmful substance use after discharge and
118.3  to help the client obtain the services necessary to establish a lifestyle free of the harmful
118.4  effects of substance use disorder;
118.5      (2) client education strategies to avoid inappropriate substance use and health problems
118.6  related to substance use and the necessary lifestyle changes to regain and maintain health.
118.7  Client education must include information on tuberculosis education on a form approved
118.8  by the commissioner, the human immunodeficiency virus according to section 245A.19,
118.9  other sexually transmitted diseases, drug and alcohol use during pregnancy, and hepatitis;
118.10     (3) a service to help the client integrate gains made during treatment into daily living
118.11 and to reduce the client's reliance on a staff member for support;
118.12     (4) a service to address issues related to co-occurring disorders, including client education
118.13 on symptoms of mental illness, the possibility of comorbidity, and the need for continued
118.14 medication compliance while recovering from substance use disorder. A group must address
118.15 co-occurring disorders, as needed. When treatment for mental health problems is indicated,
118.16 the treatment must be integrated into the client's individual treatment plan; and
118.17     (5) treatment coordination provided one-to-one by an individual who meets the staff
118.18 qualifications in section 245G.11, subdivision 7. Treatment coordination services include:
118.19     (i) assistance in coordination with significant others to help in the treatment planning
118.20 process whenever possible;
118.21     (ii) assistance in coordination with and follow up for medical services as identified in
118.22 the treatment plan;
118.23     (iii) facilitation of referrals to substance use disorder services as indicated by a client's
118.24 medical provider, comprehensive assessment, or treatment plan;
118.25     (iv) facilitation of referrals to mental health services as identified by a client's
118.26 comprehensive assessment or treatment plan;
118.27     (v) assistance with referrals to economic assistance, social services, housing resources,
118.28 and prenatal care according to the client's needs;
118.29     (vi) life skills advocacy and support accessing treatment follow-up, disease management,
118.30 and education services, including referral and linkages to long-term services and supports
118.31 as needed; and
  Article 4 Sec. 11.  118
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
119.1(vii) documentation of the provision of treatment coordination services in the client's
119.2  file.
119.3(b) A treatment service provided to a client must be provided according to the individual
119.4  treatment plan and must consider cultural differences and special needs of a client.
119.5(c) A supportive service alone does not constitute a treatment service. Supportive services
119.6  include:
119.7(1) milieu management or supervising or monitoring clients without also providing a
119.8  treatment service identified in subdivision 1a, 1b, or 2a;
119.9(2) transporting clients;
119.10      (3) waiting with clients for appointments at social service agencies, court hearings, and
119.11 similar activities; and
119.12      (4) collecting urinalysis samples.
119.13      (d) A treatment service provided in a group setting must be provided in a cohesive
119.14 manner and setting that allows every client receiving the service to interact and receive the
119.15 same service at the same time.
119.16      EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
119.17 whichever is later. The commissioner of human services shall notify the revisor of statutes
119.18 when federal approval is obtained.
119.19   Sec. 12. Minnesota Statutes 2024, section 245G.07, is amended by adding a subdivision
119.20 to read:
119.21      Subd. 1a. Psychosocial treatment service. Psychosocial treatment services must be
119.22 provided according to the hours identified in section 254B.19 for the ASAM level of care
119.23 provided to the client. A license holder must provide the following psychosocial treatment
119.24 services as a part of the client's individual treatment:
119.25      (1) counseling services that provide a client with professional assistance in managing
119.26 substance use disorder and co-occurring conditions, either individually or in a group setting.
119.27 Counseling must:
119.28      (i) use evidence-based techniques to help a client modify behavior, overcome obstacles,
119.29 and achieve and sustain recovery through techniques such as active listening, guidance,
119.30 discussion, feedback, and clarification;
  Article 4 Sec. 12.  119
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
120.1(ii) help the client to identify and address needs related to substance use, develop
120.2  strategies to avoid harmful substance use, and establish a lifestyle free of the harmful effects
120.3  of substance use disorder; and
120.4(iii) work to improve well-being and mental health, resolve or mitigate symptomatic
120.5  behaviors, beliefs, compulsions, thoughts, and emotions, and enhance relationships and
120.6  social skills, while addressing client-centered psychological and emotional needs; and
120.7(2) psychoeducation services to provide a client with information about substance use
120.8  and co-occurring conditions, either individually or in a group setting. Psychoeducation
120.9  includes structured presentations, interactive discussions, and practical exercises to help
120.10 clients understand and manage their conditions effectively. Topics include but are not limited
120.11 to:
120.12(i) the causes of substance use disorder and co-occurring disorders;
120.13(ii) behavioral techniques that help a client change behaviors, thoughts, and feelings;
120.14(iii) the importance of maintaining mental health, including understanding symptoms
120.15 of mental illness;
120.16(iv) medications for addiction and psychiatric disorders and the importance of medication
120.17 adherence;
120.18(v) the importance of maintaining physical health, health-related risk factors associated
120.19 with substance use disorder, and specific health education on tuberculosis, HIV, other
120.20 sexually transmitted diseases, drug and alcohol use during pregnancy, and hepatitis; and
120.21(vi) harm-reduction strategies.
120.22EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
120.23 whichever is later. The commissioner of human services shall notify the revisor of statutes
120.24 when federal approval is obtained.
120.25   Sec. 13. Minnesota Statutes 2024, section 245G.07, is amended by adding a subdivision
120.26 to read:
120.27Subd. 1b. Treatment coordination. (a) Treatment coordination must be provided to a
120.28 single client by an individual who meets the staff qualifications in section 245G.11,
120.29 subdivision 7. Treatment coordination services include:
120.30(1) coordinating directly with others involved in the client's treatment and recovery,
120.31 including the referral source, family or natural supports, social services agencies, and external
120.32 care providers;
  Article 4 Sec. 13.  120
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
121.1      (2) providing clients with training and facilitating connections to community resources
121.2  that support recovery;
121.3      (3) assisting clients in obtaining necessary resources and services such as financial
121.4  assistance, housing, food, clothing, medical care, education, harm reduction services,
121.5  vocational support, and recreational services that promote recovery;
121.6      (4) helping clients connect and engage with self-help support groups and expand social
121.7  support networks with family, friends, and organizations; and
121.8      (5) assisting clients in transitioning between levels of care, including providing direct
121.9  connections to ensure continuity of care.
121.10     (b) Treatment coordination does not include coordinating services or communicating
121.11 with staff members within the licensed program.
121.12     (c) Treatment coordination may be provided in a setting with the individual client and
121.13 others involved in the client's treatment and recovery.
121.14     EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
121.15 whichever is later. The commissioner of human services shall notify the revisor of statutes
121.16 when federal approval is obtained.
121.17   Sec. 14. Minnesota Statutes 2024, section 245G.07, is amended by adding a subdivision
121.18 to read:
121.19     Subd. 2a. Ancillary treatment service. (a) A license holder may provide ancillary
121.20 services in addition to the hours of psychosocial treatment services identified in section
121.21 254B.19 for the ASAM level of care provided to the client.
121.22     (b) A license holder may provide the following ancillary treatment services as a part of
121.23 the client's individual treatment:
121.24     (1) recovery support services provided individually or in a group setting, that include:
121.25     (i) supporting clients in restoring daily living skills, such as health and health care
121.26 navigation and self-care to enhance personal well-being;
121.27     (ii) providing resources and assistance to help clients restore life skills, including effective
121.28 parenting, financial management, pro-social behavior, education, employment, and nutrition;
121.29     (iii) assisting clients in restoring daily functioning and routines affected by substance
121.30 use and supporting them in developing skills for successful community integration; and
  Article 4 Sec. 14.  121
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122.1      (iv) helping clients respond to or avoid triggers that threaten their community stability,
122.2  assisting the client in identifying potential crises and developing a plan to address them,
122.3  and providing support to restore the client's stability and functioning; and
122.4      (2) peer recovery support services provided according to sections 254B.05, subdivision
122.5  5, and 254B.052.
122.6      EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
122.7  whichever is later. The commissioner of human services shall notify the revisor of statutes
122.8  when federal approval is obtained.
122.9    Sec. 15. Minnesota Statutes 2024, section 245G.07, subdivision 3, is amended to read:
122.10     Subd. 3. Counselors Treatment service providers. (a) All treatment services, except
122.11 peer recovery support services and treatment coordination, must be provided by an alcohol
122.12 and drug counselor qualified according to section 245G.11, subdivision 5, unless the
122.13 individual providing the service is specifically qualified according to the accepted credential
122.14 required to provide the service. The commissioner shall maintain a current list of
122.15 professionals qualified to provide treatment services.
122.16     (b) Psychosocial treatment services must be provided by an alcohol and drug counselor
122.17 qualified according to section 245G.11, subdivision 5, unless the individual providing the
122.18 service is specifically qualified according to the accepted credential required to provide the
122.19 service. The commissioner shall maintain a current list of professionals qualified to provide
122.20 psychosocial treatment services.
122.21     (c) Treatment coordination must be provided by a treatment coordinator qualified
122.22 according to section 245G.11, subdivision 7.
122.23     (d) Recovery support services must be provided by a behavioral health practitioner
122.24 qualified according to section 245G.11, subdivision 12.
122.25     (e) Peer recovery support services must be provided by a recovery peer qualified
122.26 according to section 245I.04, subdivision 18.
122.27     EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
122.28 whichever is later. The commissioner of human services shall notify the revisor of statutes
122.29 when federal approval is obtained.
  Article 4 Sec. 15.  122
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123.1    Sec. 16. Minnesota Statutes 2024, section 245G.07, subdivision 4, is amended to read:
123.2      Subd. 4. Location of service provision. (a) The license holder must provide all treatment
123.3  services a client receives at one of the license holder's substance use disorder treatment
123.4  licensed locations or at a location allowed under paragraphs (b) to (f). If the services are
123.5  provided at the locations in paragraphs (b) to (d), the license holder must document in the
123.6  client record the location services were provided.
123.7      (b) The license holder may provide nonresidential individual treatment services at a
123.8  client's home or place of residence.
123.9      (c) If the license holder provides treatment services by telehealth, the services must be
123.10 provided according to this paragraph:
123.11     (1) the license holder must maintain a licensed physical location in Minnesota where
123.12 the license holder must offer all treatment services in subdivision 1, paragraph (a), clauses
123.13 (1) to (4), 1a physically in-person to each client;
123.14     (2) the license holder must meet all requirements for the provision of telehealth in sections
123.15 254B.05, subdivision 5, paragraph (f), and 256B.0625, subdivision 3b. The license holder
123.16 must document all items in section 256B.0625, subdivision 3b, paragraph (c), for each client
123.17 receiving services by telehealth, regardless of payment type or whether the client is a medical
123.18 assistance enrollee;
123.19     (3) the license holder may provide treatment services by telehealth to clients individually;
123.20     (4) the license holder may provide treatment services by telehealth to a group of clients
123.21 that are each in a separate physical location;
123.22     (5) the license holder must not provide treatment services remotely by telehealth to a
123.23 group of clients meeting together in person, unless permitted under clause (7);
123.24     (6) clients and staff may join an in-person group by telehealth if a staff member qualified
123.25 to provide the treatment service is physically present with the group of clients meeting
123.26 together in person; and
123.27     (7) the qualified professional providing a residential group treatment service by telehealth
123.28 must be physically present on-site at the licensed residential location while the service is
123.29 being provided. If weather conditions or short-term illness prohibit a qualified professional
123.30 from traveling to the residential program and another qualified professional is not available
123.31 to provide the service, a qualified professional may provide a residential group treatment
123.32 service by telehealth from a location away from the licensed residential location. In such
123.33 circumstances, the license holder must ensure that a qualified professional does not provide
  Article 4 Sec. 16.  123
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124.1  a residential group treatment service by telehealth from a location away from the licensed
124.2  residential location for more than one day at a time, must ensure that a staff person who
124.3  qualifies as a paraprofessional is physically present with the group of clients, and must
124.4  document the reason for providing the remote telehealth service in the records of clients
124.5  receiving the service. The license holder must document the dates that residential group
124.6  treatment services were provided by telehealth from a location away from the licensed
124.7  residential location in a central log and must provide the log to the commissioner upon
124.8  request.
124.9      (d) The license holder may provide the additional ancillary treatment services under
124.10 subdivision 2, clauses (2) to (6) and (8), 2a away from the licensed location at a suitable
124.11 location appropriate to the treatment service.
124.12     (e) Upon written approval from the commissioner for each satellite location, the license
124.13 holder may provide nonresidential treatment services at satellite locations that are in a
124.14 school, jail, or nursing home. A satellite location may only provide services to students of
124.15 the school, inmates of the jail, or residents of the nursing home. Schools, jails, and nursing
124.16 homes are exempt from the licensing requirements in section 245A.04, subdivision 2a, to
124.17 document compliance with building codes, fire and safety codes, health rules, and zoning
124.18 ordinances.
124.19     (f) The commissioner may approve other suitable locations as satellite locations for
124.20 nonresidential treatment services. The commissioner may require satellite locations under
124.21 this paragraph to meet all applicable licensing requirements. The license holder may not
124.22 have more than two satellite locations per license under this paragraph.
124.23     (g) The license holder must provide the commissioner access to all files, documentation,
124.24 staff persons, and any other information the commissioner requires at the main licensed
124.25 location for all clients served at any location under paragraphs (b) to (f).
124.26     (h) Notwithstanding sections 245A.65, subdivision 2, and 626.557, subdivision 14, a
124.27 program abuse prevention plan is not required for satellite or other locations under paragraphs
124.28 (b) to (e). An individual abuse prevention plan is still required for any client that is a
124.29 vulnerable adult as defined in section 626.5572, subdivision 21.
124.30     EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
124.31 whichever is later. The commissioner of human services shall notify the revisor of statutes
124.32 when federal approval is obtained.
  Article 4 Sec. 16.  124
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125.1    Sec. 17. Minnesota Statutes 2024, section 245G.11, subdivision 6, is amended to read:
125.2      Subd. 6. Paraprofessionals. A paraprofessional must have knowledge of client rights,
125.3  according to section 148F.165, and staff member responsibilities. A paraprofessional may
125.4  not make decisions to admit, transfer, or discharge a client but may perform tasks related
125.5  to intake and orientation. A paraprofessional may be the responsible for the delivery of
125.6  treatment service staff member according to section 245G.10, subdivision 3. A
125.7  paraprofessional must not provide a treatment service unless qualified to do so according
125.8  to section 245G.07, subdivision 3.
125.9      EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
125.10 whichever is later. The commissioner of human services shall notify the revisor of statutes
125.11 when federal approval is obtained.
125.12   Sec. 18. Minnesota Statutes 2024, section 245G.11, is amended by adding a subdivision
125.13 to read:
125.14     Subd. 12. Behavioral health practitioners. (a) A behavioral health practitioner must
125.15 meet the qualifications in section 245I.04, subdivision 4.
125.16     (b) A behavioral health practitioner working within a substance use disorder treatment
125.17 program licensed under this chapter has the following scope of practice:
125.18     (1) a behavioral health practitioner may provide clients with recovery support services,
125.19 as defined in section 245G.07, subdivision 2a, paragraph (b), clause (1); and
125.20     (2) a behavioral health practitioner must not provide treatment supervision to other staff
125.21 persons.
125.22     (c) A behavioral health practitioner working within a substance use disorder treatment
125.23 program licensed under this chapter must receive at least one hour of supervision per month
125.24 on individual service delivery from an alcohol and drug counselor or a mental health
125.25 professional who has substance use treatment and assessments within the scope of their
125.26 practice.
125.27     EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
125.28 whichever is later. The commissioner of human services shall notify the revisor of statutes
125.29 when federal approval is obtained.
  Article 4 Sec. 18.  125
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126.1    Sec. 19. Minnesota Statutes 2024, section 245G.22, subdivision 11, is amended to read:
126.2      Subd. 11. Waiting list. An opioid treatment program must have a waiting list system.
126.3  If the person seeking admission cannot be admitted within 14 days of the date of application,
126.4  each person seeking admission must be placed on the waiting list, unless the person seeking
126.5  admission is assessed by the program and found ineligible for admission according to this
126.6  chapter and Code of Federal Regulations, title 42, part 1, subchapter A, section 8.12 (e),
126.7  and title 45, parts 160 to 164. The waiting list must assign a unique client identifier for each
126.8  person seeking treatment while awaiting admission. A person seeking admission on a waiting
126.9  list who receives no services under section 245G.07, subdivision 1 1a or 1b, must not be
126.10 considered a client as defined in section 245G.01, subdivision 9.
126.11     EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
126.12 whichever is later. The commissioner of human services shall notify the revisor of statutes
126.13 when federal approval is obtained.
126.14   Sec. 20. Minnesota Statutes 2024, section 245G.22, subdivision 15, as amended by Laws
126.15 2025, chapter 38, article 5, section 26, is amended to read:
126.16     Subd. 15. Nonmedication treatment services; documentation. (a) The program must
126.17 offer at least 50 consecutive minutes four 15-minute units of individual or group therapy
126.18 treatment services as defined in section 245G.07, subdivision 1, paragraph (a) 1a, clause
126.19 (1), per week, for the first ten weeks following the day of service initiation, and at least 50
126.20 consecutive minutes four 15-minute units per month thereafter. As clinically appropriate,
126.21 the program may offer these services cumulatively and not consecutively in increments of
126.22 no less than 15 minutes over the required time period, and for a total of 60 minutes of
126.23 treatment services over the time period, and must document the reason for providing services
126.24 cumulatively in the client's record. The program may offer additional levels of service when
126.25 deemed clinically necessary.
126.26     (b) The ten-week time frame may include a client's previous time at another opioid
126.27 treatment program licensed in Minnesota under this section if:
126.28     (1) the client was enrolled in the other opioid treatment program immediately prior to
126.29 admission to the license holder's program;
126.30     (2) the client did not miss taking a daily dose of medication to treat an opioid use disorder;
126.31 and
126.32     (3) the license holder obtains from the previous opioid treatment program the client's
126.33 number of days in comprehensive maintenance treatment, discharge summary, amount of
  Article 4 Sec. 20.  126
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127.1  daily milligram dose of medication for opioid use disorder, and previous three drug abuse
127.2  test results.
127.3      (c) Notwithstanding the requirements of comprehensive assessments in section 245G.05,
127.4  the assessment must be completed within 21 days from the day of service initiation.
127.5      EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
127.6  whichever is later. The commissioner of human services shall notify the revisor of statutes
127.7  when federal approval is obtained.
127.8    Sec. 21. Minnesota Statutes 2024, section 254A.19, subdivision 4, is amended to read:
127.9      Subd. 4. Civil commitments. For the purposes of determining level of care, a
127.10 comprehensive assessment does not need to be completed for an individual being committed
127.11 as a chemically dependent person, as defined in section 253B.02, and for the duration of a
127.12 civil commitment under section 253B.09 or 253B.095 in order for a county the individual
127.13 to access be eligible for the behavioral health fund under section 254B.04. The county
127.14 commissioner must determine if the individual meets the financial eligibility requirements
127.15 for the behavioral health fund under section 254B.04.
127.16     EFFECTIVE DATE. This section is effective July 1, 2026.
127.17   Sec. 22. Minnesota Statutes 2024, section 254B.01, subdivision 10, is amended to read:
127.18     Subd. 10. Skilled Psychosocial treatment services. "Skilled Psychosocial treatment
127.19 services" includes the treatment services described in section 245G.07, subdivisions 1,
127.20 paragraph (a), clauses (1) to (4), and 2, clauses (1) to (6). Skilled subdivision 1a. Psychosocial
127.21 treatment services must be provided by qualified professionals as identified in section
127.22 245G.07, subdivision 3, paragraph (b).
127.23     EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
127.24 whichever is later. The commissioner of human services shall notify the revisor of statutes
127.25 when federal approval is obtained.
127.26   Sec. 23. Minnesota Statutes 2024, section 254B.01, subdivision 11, is amended to read:
127.27     Subd. 11. Sober home Recovery residence. A sober home recovery residence is a
127.28 cooperative living residence, a room and board residence, an apartment, or any other living
127.29 accommodation that:
127.30     (1) provides temporary housing to persons with substance use disorders;
  Article 4 Sec. 23.  127
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
128.1      (2) stipulates that residents must abstain from using alcohol or other illicit drugs or
128.2  substances not prescribed by a physician;
128.3      (3) charges a fee for living there;
128.4      (4) does not provide counseling or treatment services to residents;
128.5      (5) promotes sustained recovery from substance use disorders; and
128.6      (6) follows the sober living guidelines published by the federal Substance Abuse and
128.7  Mental Health Services Administration.
128.8      EFFECTIVE DATE. This section is effective January 1, 2027.
128.9    Sec. 24. Minnesota Statutes 2024, section 254B.02, subdivision 5, is amended to read:
128.10     Subd. 5. Local agency Tribal allocation. The commissioner may make payments to
128.11 local agencies Tribal Nation servicing agencies from money allocated under this section to
128.12 support individuals with substance use disorders and determine eligibility for behavioral
128.13 health fund payments. The payment must not be less than 133 percent of the local agency
128.14 Tribal Nations payment for the fiscal year ending June 30, 2009, adjusted in proportion to
128.15 the statewide change in the appropriation for this chapter.
128.16     EFFECTIVE DATE. This section is effective July 1, 2026.
128.17   Sec. 25. Minnesota Statutes 2024, section 254B.03, subdivision 1, is amended to read:
128.18     Subdivision 1. Local agency duties Financial eligibility determinations. (a) Every
128.19 local agency The commissioner of human services or Tribal Nation servicing agencies must
128.20 determine financial eligibility for substance use disorder services and provide substance
128.21 use disorder services to persons residing within its jurisdiction who meet criteria established
128.22 by the commissioner. Substance use disorder money must be administered by the local
128.23 agencies according to law and rules adopted by the commissioner under sections 14.001 to
128.24 14.69.
128.25     (b) In order to contain costs, the commissioner of human services shall select eligible
128.26 vendors of substance use disorder services who can provide economical and appropriate
128.27 treatment. Unless the local agency is a social services department directly administered by
128.28 a county or human services board, the local agency shall not be an eligible vendor under
128.29 section 254B.05. The commissioner may approve proposals from county boards to provide
128.30 services in an economical manner or to control utilization, with safeguards to ensure that
  Article 4 Sec. 25.  128
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129.1  necessary services are provided. If a county implements a demonstration or experimental
129.2  medical services funding plan, the commissioner shall transfer the money as appropriate.
129.3      (c) An individual may choose to obtain a comprehensive assessment as provided in
129.4  section 245G.05. Individuals obtaining a comprehensive assessment may access any enrolled
129.5  provider that is licensed to provide the level of service authorized pursuant to section
129.6  254A.19, subdivision 3. If the individual is enrolled in a prepaid health plan, the individual
129.7  must comply with any provider network requirements or limitations.
129.8      (d) Beginning July 1, 2022, local agencies shall not make placement location
129.9  determinations.
129.10     EFFECTIVE DATE. This section is effective July 1, 2026.
129.11   Sec. 26. Minnesota Statutes 2024, section 254B.03, subdivision 3, is amended to read:
129.12     Subd. 3. Local agencies Counties to pay state for county share. Local agencies
129.13 Counties shall pay the state for the county share of the services authorized by the local
129.14 agency commissioner, except when the payment is made according to section 254B.09,
129.15 subdivision 8.
129.16     EFFECTIVE DATE. This section is effective July 1, 2026.
129.17   Sec. 27. Minnesota Statutes 2024, section 254B.04, subdivision 1a, as amended by Laws
129.18 2025, chapter 38, article 7, section 4, is amended to read:
129.19     Subd. 1a. Client eligibility. (a) Persons eligible for benefits under Code of Federal
129.20 Regulations, title 25, part 20, who meet the income standards of section 256B.056,
129.21 subdivision 4, and are not enrolled in medical assistance, are entitled to behavioral health
129.22 fund services. State money appropriated for this paragraph must be placed in a separate
129.23 account established for this purpose.
129.24     (b) Persons with dependent children who are determined to be in need of substance use
129.25 disorder treatment pursuant to an assessment under section 260E.20, subdivision 1, or in
129.26 need of chemical dependency treatment pursuant to a case plan under section 260C.201,
129.27 subdivision 6, or 260C.212, shall be assisted by the local agency commissioner to access
129.28 needed treatment services. Treatment services must be appropriate for the individual or
129.29 family, which may include long-term care treatment or treatment in a facility that allows
129.30 the dependent children to stay in the treatment facility. The county shall pay for out-of-home
129.31 placement costs, if applicable.
  Article 4 Sec. 27.  129
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130.1      (c) Notwithstanding paragraph (a), any person enrolled in medical assistance or
130.2  MinnesotaCare is eligible for room and board services under section 254B.05, subdivision
130.3  5, paragraph (b), clause (9).
130.4      (d) A client is eligible to have substance use disorder treatment paid for with funds from
130.5  the behavioral health fund when the client:
130.6      (1) is eligible for MFIP as determined under chapter 142G;
130.7      (2) is eligible for medical assistance as determined under Minnesota Rules, parts
130.8  9505.0010 to 9505.0150 9505.0140;
130.9      (3) is eligible for general assistance, general assistance medical care, or work readiness
130.10 as determined under Minnesota Rules, parts 9500.1200 to 9500.1318 9500.1272; or
130.11     (4) has income that is within current household size and income guidelines for entitled
130.12 persons, as defined in this subdivision and subdivision 7.
130.13     (e) Clients who meet the financial eligibility requirement in paragraph (a) and who have
130.14 a third-party payment source are eligible for the behavioral health fund if the third-party
130.15 payment source pays less than 100 percent of the cost of treatment services for eligible
130.16 clients.
130.17     (f) A client is ineligible to have substance use disorder treatment services paid for with
130.18 behavioral health fund money if the client:
130.19     (1) has an income that exceeds current household size and income guidelines for entitled
130.20 persons as defined in this subdivision and subdivision 7; or
130.21     (2) has an available third-party payment source that will pay the total cost of the client's
130.22 treatment.
130.23     (g) A client who is disenrolled from a state prepaid health plan during a treatment episode
130.24 is eligible for continued treatment service that is paid for by the behavioral health fund until
130.25 the treatment episode is completed or the client is re-enrolled in a state prepaid health plan
130.26 if the client:
130.27     (1) continues to be enrolled in MinnesotaCare, medical assistance, or general assistance
130.28 medical care; or
130.29     (2) is eligible according to paragraphs (a) and (b) and is determined eligible by a local
130.30 agency the commissioner under section 254B.04.
130.31     (h) When a county commits a client under chapter 253B to a regional treatment center
130.32 for substance use disorder services and the client is ineligible for the behavioral health fund,
  Article 4 Sec. 27.  130
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131.1  the county is responsible for the payment to the regional treatment center according to
131.2  section 254B.05, subdivision 4.
131.3      (i) Persons enrolled in MinnesotaCare are eligible for room and board services when
131.4  provided through intensive residential treatment services and residential crisis services under
131.5  section 256B.0632.
131.6      (j) A person is eligible for one 60-consecutive-calendar-day period per year. A person
131.7  may submit a request for additional eligibility to the commissioner. A person denied
131.8  additional eligibility under this paragraph may request a state agency hearing under section
131.9  256.045.
131.10     EFFECTIVE DATE. Paragraph (d) is effective July 1, 2025. Paragraphs (b), (g), and
131.11 (j) are effective July 1, 2026.
131.12   Sec. 28. Minnesota Statutes 2024, section 254B.04, subdivision 5, is amended to read:
131.13     Subd. 5. Local agency Commissioner responsibility to provide administrative
131.14 services. The local agency commissioner of human services may employ individuals to
131.15 conduct administrative activities and facilitate access to substance use disorder treatment
131.16 services.
131.17     EFFECTIVE DATE. This section is effective July 1, 2026.
131.18   Sec. 29. Minnesota Statutes 2024, section 254B.04, subdivision 6, is amended to read:
131.19     Subd. 6. Local agency Commissioner to determine client financial eligibility. (a)
131.20 The local agency commissioner shall determine a client's financial eligibility for the
131.21 behavioral health fund according to section 254B.04, subdivision 1a, with the income
131.22 calculated prospectively for one year from the date of request. The local agency commissioner
131.23 shall pay for eligible clients according to chapter 256G. Client eligibility must be determined
131.24 using only forms prescribed by the commissioner unless the local agency has a reasonable
131.25 basis for believing that the information submitted on a form is false. To determine a client's
131.26 eligibility, the local agency commissioner must determine the client's income, the size of
131.27 the client's household, the availability of a third-party payment source, and a responsible
131.28 relative's ability to pay for the client's substance use disorder treatment.
131.29     (b) A client who is a minor child must not be deemed to have income available to pay
131.30 for substance use disorder treatment, unless the minor child is responsible for payment under
131.31 section 144.347 for substance use disorder treatment services sought under section 144.343,
131.32 subdivision 1.
  Article 4 Sec. 29.  131
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132.1      (c) The local agency commissioner must determine the client's household size as follows:
132.2      (1) if the client is a minor child, the household size includes the following persons living
132.3  in the same dwelling unit:
132.4      (i) the client;
132.5      (ii) the client's birth or adoptive parents; and
132.6      (iii) the client's siblings who are minors; and
132.7      (2) if the client is an adult, the household size includes the following persons living in
132.8  the same dwelling unit:
132.9      (i) the client;
132.10     (ii) the client's spouse;
132.11     (iii) the client's minor children; and
132.12     (iv) the client's spouse's minor children.
132.13 For purposes of this paragraph, household size includes a person listed in clauses (1) and
132.14 (2) who is in an out-of-home placement if a person listed in clause (1) or (2) is contributing
132.15 to the cost of care of the person in out-of-home placement.
132.16     (d) The local agency commissioner must determine the client's current prepaid health
132.17 plan enrollment, the availability of a third-party payment source, including the availability
132.18 of total payment, partial payment, and amount of co-payment.
132.19     (e) The local agency must provide the required eligibility information to the department
132.20 in the manner specified by the department.
132.21     (f) (e) The local agency commissioner shall require the client and policyholder to
132.22 conditionally assign to the department the client and policyholder's rights and the rights of
132.23 minor children to benefits or services provided to the client if the department is required to
132.24 collect from a third-party pay source.
132.25     (g) (f) The local agency commissioner must redetermine determine a client's eligibility
132.26 for the behavioral health fund every 12 months for a 60-consecutive-calendar-day period
132.27 per calendar year.
132.28     (h) (g) A client, responsible relative, and policyholder must provide income or wage
132.29 verification, household size verification, and must make an assignment of third-party payment
132.30 rights under paragraph (f) (e). If a client, responsible relative, or policyholder does not
132.31 comply with the provisions of this subdivision, the client is ineligible for behavioral health
  Article 4 Sec. 29.  132
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133.1  fund payment for substance use disorder treatment, and the client and responsible relative
133.2  must be obligated to pay for the full cost of substance use disorder treatment services
133.3  provided to the client.
133.4      EFFECTIVE DATE. This section is effective July 1, 2026.
133.5    Sec. 30. Minnesota Statutes 2024, section 254B.04, subdivision 6a, is amended to read:
133.6      Subd. 6a. Span of eligibility. The local agency commissioner must enter the financial
133.7  eligibility span within five business days of a request. If the comprehensive assessment is
133.8  completed within the timelines required under chapter 245G, then the span of eligibility
133.9  must begin on the date services were initiated. If the comprehensive assessment is not
133.10 completed within the timelines required under chapter 245G, then the span of eligibility
133.11 must begin on the date the comprehensive assessment was completed.
133.12     EFFECTIVE DATE. This section is effective July 1, 2026.
133.13   Sec. 31. Minnesota Statutes 2024, section 254B.05, subdivision 1, as amended by Laws
133.14 2025, chapter 38, article 4, section 31, is amended to read:
133.15     Subdivision 1. Licensure or certification required. (a) Programs licensed by the
133.16 commissioner are eligible vendors. Hospitals may apply for and receive licenses to be
133.17 eligible vendors, notwithstanding the provisions of section 245A.03. American Indian
133.18 programs that provide substance use disorder treatment, extended care, transitional residence,
133.19 or outpatient treatment services, and are licensed by tribal government are eligible vendors.
133.20     (b) A licensed professional in private practice as defined in section 245G.01, subdivision
133.21 17, who meets the requirements of section 245G.11, subdivisions 1 and 4, is an eligible
133.22 vendor of a comprehensive assessment provided according to section 254A.19, subdivision
133.23 3, and treatment services provided according to sections 245G.06 and 245G.07, subdivision
133.24 1, paragraphs (a), clauses (1) to (5), and (b); and subdivision 2, clauses (1) to (6) subdivisions
133.25 1, 1a, and 1b.
133.26     (c) A county is an eligible vendor for a comprehensive assessment when provided by
133.27 an individual who meets the staffing credentials of section 245G.11, subdivisions 1 and 5,
133.28 and completed according to the requirements of section 254A.19, subdivision 3. A county
133.29 is an eligible vendor of care treatment coordination services when provided by an individual
133.30 who meets the staffing credentials of section 245G.11, subdivisions 1 and 7, and provided
133.31 according to the requirements of section 245G.07, subdivision 1, paragraph (a), clause (5)
133.32 1b. A county is an eligible vendor of peer recovery services when the services are provided
  Article 4 Sec. 31.  133
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134.1  by an individual who meets the requirements of section 245G.11, subdivision 8, and
134.2  according to section 254B.052.
134.3      (d) A recovery community organization that meets the requirements of clauses (1) to
134.4  (15), complies with the training requirements in section 254B.052, subdivision 4, and meets
134.5  certification requirements of the Minnesota Alliance of Recovery Community Organizations
134.6  or another Minnesota statewide recovery organization identified by the commissioner is an
134.7  eligible vendor of peer recovery support services. If the commissioner does not identify
134.8  another statewide recovery organization, or the Minnesota Alliance of Recovery Community
134.9  Organizations or the statewide recovery organization identified by the commissioner is not
134.10 reasonably positioned to certify vendors, the commissioner must determine the eligibility
134.11 of a vendor of peer recovery support services. A Minnesota statewide recovery organization
134.12 identified by the commissioner must update recovery community organization applicants
134.13 for certification on the status of the application within 45 days of receipt. If the approved
134.14 statewide recovery organization denies an application, it must provide a written explanation
134.15 for the denial to the recovery community organization. Eligible vendors under this paragraph
134.16 must:
134.17     (1) be nonprofit organizations under section 501(c)(3) of the Internal Revenue Code, be
134.18 free from conflicting self-interests, and be autonomous in decision-making, program
134.19 development, peer recovery support services provided, and advocacy efforts for the purpose
134.20 of supporting the recovery community organization's mission;
134.21     (2) be led and governed by individuals in the recovery community, with more than 50
134.22 percent of the board of directors or advisory board members self-identifying as people in
134.23 personal recovery from substance use disorders;
134.24     (3) have a mission statement and conduct corresponding activities indicating that the
134.25 organization's primary purpose is to support recovery from substance use disorder;
134.26     (4) demonstrate ongoing community engagement with the identified primary region and
134.27 population served by the organization, including individuals in recovery and their families,
134.28 friends, and recovery allies;
134.29     (5) be accountable to the recovery community through documented priority-setting and
134.30 participatory decision-making processes that promote the engagement of, and consultation
134.31 with, people in recovery and their families, friends, and recovery allies;
134.32     (6) provide nonclinical peer recovery support services, including but not limited to
134.33 recovery support groups, recovery coaching, telephone recovery support, skill-building,
134.34 and harm-reduction activities, and provide recovery public education and advocacy;
  Article 4 Sec. 31.  134
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135.1      (7) have written policies that allow for and support opportunities for all paths toward
135.2  recovery and refrain from excluding anyone based on their chosen recovery path, which
135.3  may include but is not limited to harm reduction paths, faith-based paths, and nonfaith-based
135.4  paths;
135.5      (8) maintain organizational practices to meet the needs of Black, Indigenous, and people
135.6  of color communities, LGBTQ+ communities, and other underrepresented or marginalized
135.7  communities. Organizational practices may include board and staff training, service offerings,
135.8  advocacy efforts, and culturally informed outreach and services;
135.9      (9) use recovery-friendly language in all media and written materials that is supportive
135.10 of and promotes recovery across diverse geographical and cultural contexts and reduces
135.11 stigma;
135.12     (10) establish and maintain a publicly available recovery community organization code
135.13 of ethics and grievance policy and procedures;
135.14     (11) not classify or treat any recovery peer hired on or after July 1, 2024, as an
135.15 independent contractor;
135.16     (12) not classify or treat any recovery peer as an independent contractor on or after
135.17 January 1, 2025;
135.18     (13) provide an orientation for recovery peers that includes an overview of the consumer
135.19 advocacy services provided by the Ombudsman for Mental Health and Developmental
135.20 Disabilities and other relevant advocacy services;
135.21     (14) provide notice to peer recovery support services participants that includes the
135.22 following statement: "If you have a complaint about the provider or the person providing
135.23 your peer recovery support services, you may contact the Minnesota Alliance of Recovery
135.24 Community Organizations. You may also contact the Office of Ombudsman for Mental
135.25 Health and Developmental Disabilities." The statement must also include:
135.26     (i) the telephone number, website address, email address, and mailing address of the
135.27 Minnesota Alliance of Recovery Community Organizations and the Office of Ombudsman
135.28 for Mental Health and Developmental Disabilities;
135.29     (ii) the recovery community organization's name, address, email, telephone number, and
135.30 name or title of the person at the recovery community organization to whom problems or
135.31 complaints may be directed; and
135.32     (iii) a statement that the recovery community organization will not retaliate against a
135.33 peer recovery support services participant because of a complaint; and
  Article 4 Sec. 31.  135
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136.1      (15) comply with the requirements of section 245A.04, subdivision 15a.
136.2      (e) A recovery community organization approved by the commissioner before June 30,
136.3  2023, must have begun the application process as required by an approved certifying or
136.4  accrediting entity and have begun the process to meet the requirements under paragraph (d)
136.5  by September 1, 2024, in order to be considered as an eligible vendor of peer recovery
136.6  support services.
136.7      (f) A recovery community organization that is aggrieved by a certification determination
136.8  and believes it meets the requirements under paragraph (d) may appeal the determination
136.9  under section 256.045, subdivision 3, paragraph (a), clause (14), for reconsideration as an
136.10 eligible vendor. If the human services judge determines that the recovery community
136.11 organization meets the requirements under paragraph (d), the recovery community
136.12 organization is an eligible vendor of peer recovery support services for up to two years from
136.13 the date of the determination. After two years, the recovery community organization must
136.14 apply for certification under paragraph (d) to continue to be an eligible vendor of peer
136.15 recovery support services.
136.16     (g) All recovery community organizations must be certified by an entity listed in
136.17 paragraph (d) by June 30, 2027.
136.18     (h) Detoxification programs licensed under Minnesota Rules, parts 9530.6510 to
136.19 9530.6590, are not eligible vendors. Programs that are not licensed as a residential or
136.20 nonresidential substance use disorder treatment or withdrawal management program by the
136.21 commissioner or by tribal government or do not meet the requirements of subdivisions 1a
136.22 and 1b are not eligible vendors.
136.23     (i) Hospitals, federally qualified health centers, and rural health clinics are eligible
136.24 vendors of a comprehensive assessment when the comprehensive assessment is completed
136.25 according to section 254A.19, subdivision 3, and by an individual who meets the criteria
136.26 of an alcohol and drug counselor according to section 245G.11, subdivision 5. The alcohol
136.27 and drug counselor must be individually enrolled with the commissioner and reported on
136.28 the claim as the individual who provided the service.
136.29     (j) Any complaints about a recovery community organization or peer recovery support
136.30 services may be made to and reviewed or investigated by the ombudsperson for behavioral
136.31 health and developmental disabilities under sections 245.91 and 245.94.
136.32     EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
136.33 whichever is later. The commissioner of human services shall notify the revisor of statutes
136.34 when federal approval is obtained.
  Article 4 Sec. 31.  136
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
137.1    Sec. 32. Minnesota Statutes 2024, section 254B.05, subdivision 1a, as amended by Laws
137.2  2025, chapter 38, article 7, section 5, is amended to read:
137.3      Subd. 1a. Room and board provider requirements. (a) Vendors of room and board
137.4  are eligible for behavioral health fund payment if the vendor:
137.5      (1) has rules prohibiting residents bringing chemicals into the facility or using chemicals
137.6  while residing in the facility and provide consequences for infractions of those rules;
137.7      (2) is determined to meet applicable health and safety requirements;
137.8      (3) is not a jail or prison;
137.9      (4) is not concurrently receiving funds under chapter 256I for the recipient;
137.10     (5) admits individuals who are 18 years of age or older;
137.11     (6) is registered as a board and lodging or lodging establishment according to section
137.12 157.17;
137.13     (7) has awake staff on site whenever a client is present;
137.14     (8) has staff who are at least 18 years of age and meet the requirements of section
137.15 245G.11, subdivision 1, paragraph (b);
137.16     (9) has emergency behavioral procedures that meet the requirements of section 245G.16;
137.17     (10) meets the requirements of section 245G.08, subdivision 5, if administering
137.18 medications to clients;
137.19     (11) meets the abuse prevention requirements of section 245A.65, including a policy on
137.20 fraternization and the mandatory reporting requirements of section 626.557;
137.21     (12) documents coordination with the treatment provider to ensure compliance with
137.22 section 254B.03, subdivision 2;
137.23     (13) protects client funds and ensures freedom from exploitation by meeting the
137.24 provisions of section 245A.04, subdivision 13;
137.25     (14) has a grievance procedure that meets the requirements of section 245G.15,
137.26 subdivision 2; and
137.27     (15) has sleeping and bathroom facilities for men and women separated by a door that
137.28 is locked, has an alarm, or is supervised by awake staff.
137.29     (b) Programs licensed according to Minnesota Rules, chapter 2960, are exempt from
137.30 paragraph (a), clauses (5) to (15).
  Article 4 Sec. 32.  137
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
138.1      (c) Programs providing children's mental health crisis admissions and stabilization under
138.2  section 245.4882, subdivision 6, are eligible vendors of room and board.
138.3      (d) Programs providing children's residential services under section 245.4882, except
138.4  services for individuals who have a placement under chapter 260C or 260D, are eligible
138.5  vendors of room and board.
138.6      (e) Licensed programs providing intensive residential treatment services or residential
138.7  crisis stabilization services pursuant to section 256B.0624 or 256B.0632 are eligible vendors
138.8  of room and board and are exempt from paragraph (a), clauses (6) to (15).
138.9      (f) A vendor that is not licensed as a residential treatment program must have a policy
138.10 to address staffing coverage when a client may unexpectedly need to be present at the room
138.11 and board site.
138.12     (g) No new vendors for room and board services may be approved after June 30, 2025,
138.13 to receive payments from the behavioral health fund, under the provisions of section 254B.04,
138.14 subdivision 2a. Room and board vendors that were approved and operating prior to July 1,
138.15 2025, may continue to receive payments from the behavioral health fund for services provided
138.16 until June 30, 2027. Room and board vendors providing services in accordance with section
138.17 254B.04, subdivision 2a, will no longer be eligible to claim reimbursement for room and
138.18 board services provided on or after July 1, 2027.
138.19     EFFECTIVE DATE. This section is effective the day following final enactment.
138.20   Sec. 33. Minnesota Statutes 2024, section 254B.05, subdivision 5, as amended by Laws
138.21 2025, chapter 38, article 4, section 32, is amended to read:
138.22     Subd. 5. Rate requirements. (a) Subject to the requirements of subdivision 6, the
138.23 commissioner shall establish rates for the following substance use disorder treatment services
138.24 and service enhancements funded under this chapter.:
138.25     (b) Eligible substance use disorder treatment services include:
138.26     (1) those licensed, as applicable, according to chapter 245G or applicable Tribal license
138.27 and provided according to the following ASAM levels of care:
138.28     (i) ASAM level 0.5 early intervention services provided according to section 254B.19,
138.29 subdivision 1, clause (1);
138.30     (ii) ASAM level 1.0 outpatient services provided according to section 254B.19,
138.31 subdivision 1, clause (2);
  Article 4 Sec. 33.  138
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
139.1      (iii) ASAM level 2.1 intensive outpatient services provided according to section 254B.19,
139.2  subdivision 1, clause (3);
139.3      (iv) ASAM level 2.5 partial hospitalization services provided according to section
139.4  254B.19, subdivision 1, clause (4);
139.5      (v) ASAM level 3.1 clinically managed low-intensity residential services provided
139.6  according to section 254B.19, subdivision 1, clause (5). The commissioner shall use the
139.7  base payment rate of $79.84 per day for services provided under this item;
139.8      (vi) ASAM level 3.1 clinically managed low-intensity residential services provided
139.9  according to section 254B.19, subdivision 1, clause (5), at 15 or more hours of skilled
139.10 treatment services each week. The commissioner shall use the base payment rate of $166.13
139.11 per day for services provided under this item;
139.12     (vii) ASAM level 3.3 clinically managed population-specific high-intensity residential
139.13 services provided according to section 254B.19, subdivision 1, clause (6). The commissioner
139.14 shall use the specified base payment rate of $224.06 per day for services provided under
139.15 this item; and
139.16     (viii) ASAM level 3.5 clinically managed high-intensity residential services provided
139.17 according to section 254B.19, subdivision 1, clause (7). The commissioner shall use the
139.18 specified base payment rate of $224.06 per day for services provided under this item;
139.19     (2) comprehensive assessments provided according to section 254A.19, subdivision 3;
139.20     (3) treatment coordination services provided according to section 245G.07, subdivision
139.21 1, paragraph (a), clause (5);
139.22     (4) peer recovery support services provided according to section 245G.07, subdivision
139.23 2 2a, paragraph (b), clause (8) (2);
139.24     (5) withdrawal management services provided according to chapter 245F;
139.25     (6) hospital-based treatment services that are licensed according to sections 245G.01 to
139.26 245G.17 or applicable Tribal license and licensed as a hospital under sections 144.50 to
139.27 144.56;
139.28     (7) substance use disorder treatment services with medications for opioid use disorder
139.29 provided in an opioid treatment program licensed according to sections 245G.01 to 245G.17
139.30 and 245G.22, or under an applicable Tribal license;
  Article 4 Sec. 33.  139
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
140.1      (8) medium-intensity residential treatment services that provide 15 hours of skilled
140.2  treatment services each week and are licensed according to sections 245G.01 to 245G.17
140.3  and 245G.21 or applicable Tribal license;
140.4      (9) adolescent treatment programs that are licensed as outpatient treatment programs
140.5  according to sections 245G.01 to 245G.18 or as residential treatment programs according
140.6  to Minnesota Rules, parts 2960.0010 to 2960.0220, and 2960.0430 to 2960.0490, or
140.7  applicable Tribal license;
140.8      (10) ASAM 3.5 clinically managed high-intensity residential services that are licensed
140.9  according to sections 245G.01 to 245G.17 and 245G.21 or applicable Tribal license, which
140.10 provide ASAM level of care 3.5 according to section 254B.19, subdivision 1, clause (7),
140.11 and are provided by a state-operated vendor or to clients who have been civilly committed
140.12 to the commissioner, present the most complex and difficult care needs, and are a potential
140.13 threat to the community; and
140.14     (11) room and board facilities that meet the requirements of subdivision 1a.
140.15     (c) (b) The commissioner shall establish higher rates for programs that meet the
140.16 requirements of paragraph (b) (a) and one of the following additional requirements: the
140.17 requirements of one clause in this paragraph.
140.18     (1) Programs that serve parents with their children are eligible for an enhanced payment
140.19 rate if the program:
140.20     (i) provides on-site child care during the hours of treatment activity that:
140.21     (A) is licensed under chapter 245A as a child care center under Minnesota Rules, chapter
140.22 9503; or
140.23     (B) is licensed under chapter 245A and sections 245G.01 to 245G.19; or
140.24     (ii) arranges for off-site child care during hours of treatment activity at a facility that is
140.25 licensed under chapter 245A as:
140.26     (A) a child care center under Minnesota Rules, chapter 9503; or
140.27     (B) a family child care home under Minnesota Rules, chapter 9502;.
140.28 In order to be eligible for a higher rate under this clause, a program that provides
140.29 arrangements for off-site child care must maintain current documentation at the substance
140.30 use disorder facility of the child care provider's current licensure to provide child care
140.31 services.
  Article 4 Sec. 33.  140
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
141.1      (2) Culturally specific or culturally responsive programs as defined in section 254B.01,
141.2  subdivision 4a;, are eligible for an enhanced payment rate.
141.3      (3) Disability responsive programs as defined in section 254B.01, subdivision 4b;, are
141.4  eligible for an enhanced payment rate.
141.5      (4) Programs that offer medical services delivered by appropriately credentialed health
141.6  care staff in an amount equal to one hour per client per week are eligible for an enhanced
141.7  payment rate if the medical needs of the client and the nature and provision of any medical
141.8  services provided are documented in the client file; or.
141.9      (5) Programs that offer services to individuals with co-occurring mental health and
141.10 substance use disorder problems are eligible for an enhanced payment rate if:
141.11     (i) the program meets the co-occurring requirements in section 245G.20;
141.12     (ii) the program employs a mental health professional as defined in section 245I.04,
141.13 subdivision 2;
141.14     (iii) clients scoring positive on a standardized mental health screen receive a mental
141.15 health diagnostic assessment within ten days of admission, excluding weekends and holidays;
141.16     (iv) the program has standards for multidisciplinary case review that include a monthly
141.17 review for each client that, at a minimum, includes a licensed mental health professional
141.18 and licensed alcohol and drug counselor, and their involvement in the review is documented;
141.19     (v) family education is offered that addresses mental health and substance use disorder
141.20 and the interaction between the two; and
141.21     (vi) co-occurring counseling staff shall receive eight hours of co-occurring disorder
141.22 training annually.
141.23     (d) In order to be eligible for a higher rate under paragraph (c), clause (1), a program
141.24 that provides arrangements for off-site child care must maintain current documentation at
141.25 the substance use disorder facility of the child care provider's current licensure to provide
141.26 child care services.
141.27     (e) Adolescent residential programs that meet the requirements of Minnesota Rules,
141.28 parts 2960.0430 to 2960.0490 and 2960.0580 to 2960.0690, are exempt from the requirements
141.29 in paragraph (c), clause (5), items (i) to (iv).
141.30     (f) (c) Substance use disorder services that are otherwise covered as direct face-to-face
141.31 services may be provided via telehealth as defined in section 256B.0625, subdivision 3b.
141.32 The use of telehealth to deliver services must be medically appropriate to the condition and
  Article 4 Sec. 33.  141
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
142.1  needs of the person being served. Reimbursement shall be at the same rates and under the
142.2  same conditions that would otherwise apply to direct face-to-face services.
142.3      (g) (d) For the purpose of reimbursement under this section, substance use disorder
142.4  treatment services provided in a group setting without a group participant maximum or
142.5  maximum client to staff ratio under chapter 245G shall not exceed a client to staff ratio of
142.6  48 to one. At least one of the attending staff must meet the qualifications as established
142.7  under this chapter for the type of treatment service provided. A recovery peer may not be
142.8  included as part of the staff ratio.
142.9      (h) (e) Payment for outpatient substance use disorder services that are licensed according
142.10 to sections 245G.01 to 245G.17 is limited to six hours per day or 30 hours per week unless
142.11 prior authorization of a greater number of hours is obtained from the commissioner.
142.12     (i) (f) Payment for substance use disorder services under this section must start from the
142.13 day of service initiation, when the comprehensive assessment is completed within the
142.14 required timelines.
142.15     (j) (g) A license holder that is unable to provide all residential treatment services because
142.16 a client missed services remains eligible to bill for the client's intensity level of services
142.17 under this paragraph if the license holder can document the reason the client missed services
142.18 and the interventions done to address the client's absence.
142.19     (k) (h) Hours in a treatment week may be reduced in observance of federally recognized
142.20 holidays.
142.21     (l) (i) Eligible vendors of peer recovery support services must:
142.22     (1) submit to a review by the commissioner of up to ten percent of all medical assistance
142.23 and behavioral health fund claims to determine the medical necessity of peer recovery
142.24 support services for entities billing for peer recovery support services individually and not
142.25 receiving a daily rate; and
142.26     (2) limit an individual client to 14 hours per week for peer recovery support services
142.27 from an individual provider of peer recovery support services.
142.28     (m) (j) Peer recovery support services not provided in accordance with section 254B.052
142.29 are subject to monetary recovery under section 256B.064 as money improperly paid.
142.30     EFFECTIVE DATE. This section is effective July 1, 2025, except for the change to
142.31 the new paragraph (a), clause (4), which is effective July 1, 2026, or upon federal approval,
142.32 whichever is later. The commissioner of human services must notify the revisor of statutes
142.33 when federal approval is obtained.
  Article 4 Sec. 33.  142
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
143.1    Sec. 34. Minnesota Statutes 2024, section 254B.05, is amended by adding a subdivision
143.2  to read:
143.3Subd. 6. Rate adjustments. (a) Effective for services provided on or after January 1,
143.4  2026, the commissioner must implement the following base payment rates for substance
143.5  use disorder treatment services under subdivision 5, paragraph (a):
143.6(1) for low-intensity residential services, 100 percent of the modeled rate included in
143.7  the final report required by Laws 2021, First Special Session chapter 7, article 17, section
143.8  18;
143.9(2) for high-intensity residential services, 83 percent of the modeled rate included in the
143.10 final report required by Laws 2021, First Special Session chapter 7, article 17, section 18;
143.11 and
143.12(3) for treatment coordination services, 100 percent of the modeled rate included in the
143.13 final report required by Laws 2021, First Special Session chapter 7, article 17, section 18.
143.14(b) Effective January 1, 2027, and annually thereafter, the commissioner of human
143.15 services must adjust the payment rates under paragraph (a) according to the change from
143.16 the midpoint of the previous rate year to the midpoint of the rate year for which the rate is
143.17 being determined using the Centers for Medicare and Medicaid Services Medicare Economic
143.18 Index as forecasted in the fourth quarter of the calendar year before the rate year.
143.19EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval,
143.20 whichever is later. The commissioner of human services shall notify the revisor of statutes
143.21 when federal approval is obtained.
143.22   Sec. 35. Minnesota Statutes 2024, section 254B.052, is amended by adding a subdivision
143.23 to read:
143.24Subd. 4. Recovery community organization vendor compliance training. (a) Effective
143.25 January 1, 2027, in order to enroll as an eligible vendor of peer recovery support services,
143.26 a recovery community organization must require all owners active in day-to-day management
143.27 and operations of the organization and managerial and supervisory employees to complete
143.28 compliance training before applying for enrollment and every three years thereafter.
143.29 Mandatory compliance training format and content must be determined by the commissioner,
143.30 and must include the following topics:
143.31(1) state and federal program billing, documentation, and service delivery requirements;
143.32(2) eligible vendor enrollment requirements;
  Article 4 Sec. 35.  143
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
144.1      (3) provider program integrity, including fraud prevention, fraud detection, and penalties;
144.2      (4) fair labor standards;
144.3      (5) workplace safety requirements; and
144.4      (6) recent changes in service requirements.
144.5      (b) Any new owners active in day-to-day management and operations of the organization
144.6  and managerial and supervisory employees must complete the training under this subdivision
144.7  in order to be employed by or conduct management and operations activities for the
144.8  organization. If the individual moves to another recovery community organization and
144.9  serves in a similar ownership or employment capacity, the individual is not required to
144.10 repeat the training required under this subdivision if the individual documents completion
144.11 of the training within the past three years.
144.12     (c) By July 1, 2026, the commissioner must make the training required under this
144.13 subdivision available in person, online, or by electronic remote connection.
144.14     (d) A recovery community organization enrolled as an eligible vendor before January
144.15 1, 2027, must document completion of the compliance training as required under this
144.16 subdivision by January 1, 2028, and every three years thereafter.
144.17   Sec. 36. Minnesota Statutes 2024, section 254B.09, subdivision 2, is amended to read:
144.18     Subd. 2. American Indian agreements. The commissioner may enter into agreements
144.19 with federally recognized Tribal units to pay for substance use disorder treatment services
144.20 provided under Laws 1986, chapter 394, sections 8 to 20. The agreements must clarify how
144.21 the governing body of the Tribal unit fulfills local agency the Tribal unit's responsibilities
144.22 regarding the form and manner of invoicing.
144.23     EFFECTIVE DATE. This section is effective July 1, 2026.
144.24   Sec. 37. Minnesota Statutes 2024, section 254B.19, subdivision 1, is amended to read:
144.25     Subdivision 1. Level of care requirements. (a) For each client assigned an ASAM level
144.26 of care, eligible vendors must implement the standards set by the ASAM for the respective
144.27 level of care. Additionally, vendors must meet the following requirements:
144.28     (1) For ASAM level 0.5 early intervention targeting individuals who are at risk of
144.29 developing a substance-related problem but may not have a diagnosed substance use disorder,
144.30 early intervention services may include individual or group counseling, treatment
  Article 4 Sec. 37.  144
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
145.1  coordination, peer recovery support, screening brief intervention, and referral to treatment
145.2  provided according to section 254A.03, subdivision 3, paragraph (c).
145.3(2) For ASAM level 1.0 outpatient clients, adults must receive up to eight hours per
145.4  week of skilled psychosocial treatment services and adolescents must receive up to five
145.5  hours per week. Services must be licensed according to section 245G.20 and meet
145.6  requirements under section 256B.0759. Peer recovery Ancillary services and treatment
145.7  coordination may be provided beyond the hourly skilled psychosocial treatment service
145.8  hours allowable per week.
145.9(3) For ASAM level 2.1 intensive outpatient clients, adults must receive nine to 19 hours
145.10 per week of skilled psychosocial treatment services and adolescents must receive six or
145.11 more hours per week. Vendors must be licensed according to section 245G.20 and must
145.12 meet requirements under section 256B.0759. Peer recovery Ancillary services and treatment
145.13 coordination may be provided beyond the hourly skilled psychosocial treatment service
145.14 hours allowable per week. If clinically indicated on the client's treatment plan, this service
145.15 may be provided in conjunction with room and board according to section 254B.05,
145.16 subdivision 1a.
145.17(4) For ASAM level 2.5 partial hospitalization clients, adults must receive 20 hours or
145.18 more of skilled psychosocial treatment services. Services must be licensed according to
145.19 section 245G.20 and must meet requirements under section 256B.0759. Level 2.5 is for
145.20 clients who need daily monitoring in a structured setting, as directed by the individual
145.21 treatment plan and in accordance with the limitations in section 254B.05, subdivision 5,
145.22 paragraph (h). If clinically indicated on the client's treatment plan, this service may be
145.23 provided in conjunction with room and board according to section 254B.05, subdivision
145.24 1a.
145.25(5) For ASAM level 3.1 clinically managed low-intensity residential clients, programs
145.26 must provide at least 5 hours of skilled psychosocial treatment services per week according
145.27 to each client's specific treatment schedule, as directed by the individual treatment plan.
145.28 Programs must be licensed according to section 245G.20 and must meet requirements under
145.29 section 256B.0759.
145.30(6) For ASAM level 3.3 clinically managed population-specific high-intensity residential
145.31 clients, programs must be licensed according to section 245G.20 and must meet requirements
145.32 under section 256B.0759. Programs must have 24-hour staffing coverage. Programs must
145.33 be enrolled as a disability responsive program as described in section 254B.01, subdivision
145.34 4b, and must specialize in serving persons with a traumatic brain injury or a cognitive
  Article 4 Sec. 37.  145
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
146.1  impairment so significant, and the resulting level of impairment so great, that outpatient or
146.2  other levels of residential care would not be feasible or effective. Programs must provide,
146.3  at a minimum, daily skilled psychosocial treatment services seven days a week according
146.4  to each client's specific treatment schedule, as directed by the individual treatment plan.
146.5      (7) For ASAM level 3.5 clinically managed high-intensity residential clients, services
146.6  must be licensed according to section 245G.20 and must meet requirements under section
146.7  256B.0759. Programs must have 24-hour staffing coverage and provide, at a minimum,
146.8  daily skilled psychosocial treatment services seven days a week according to each client's
146.9  specific treatment schedule, as directed by the individual treatment plan.
146.10     (8) For ASAM level withdrawal management 3.2 clinically managed clients, withdrawal
146.11 management must be provided according to chapter 245F.
146.12     (9) For ASAM level withdrawal management 3.7 medically monitored clients, withdrawal
146.13 management must be provided according to chapter 245F.
146.14     (b) Notwithstanding the minimum daily skilled psychosocial treatment service
146.15 requirements under paragraph (a), clauses (6) and (7), ASAM level 3.3 and 3.5 vendors
146.16 must provide each client at least 30 hours of treatment services per week for the period
146.17 between January 1, 2024, through June 30, 2024.
146.18     EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
146.19 whichever is later. The commissioner of human services shall notify the revisor of statutes
146.20 when federal approval is obtained.
146.21   Sec. 38. [254B.21] DEFINITIONS.
146.22     Subdivision 1. Scope. For the purposes of sections 254B.21 to 254B.216, the following
146.23 terms have the meanings given.
146.24     Subd. 2. Applicant. "Applicant" means any individual, organization, or entity who has
146.25 applied for certification of a recovery residence.
146.26     Subd. 3. Certified recovery residence. "Certified recovery residence" means a recovery
146.27 residence that has completed the application process and been approved for certification by
146.28 the commissioner.
146.29     Subd. 4. Co-occurring disorders. "Co-occurring disorders" means a diagnosis of both
146.30 a substance use disorder and a mental health disorder.
146.31     Subd. 5. Operator. "Operator" means the lawful owner or lessee of a recovery residence
146.32 or a person employed and designated by the owner or lessee of the recovery residence to
  Article 4 Sec. 38.  146
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
147.1  have primary responsibility for oversight of the recovery residence, including but not limited
147.2  to hiring and termination of recovery residence staff, recovery residence maintenance, and
147.3  responding to complaints being investigated by the commissioner.
147.4      Subd. 6. Recovery residence. "Recovery residence" means a type of community residence
147.5  that provides a safe, healthy, family-like, substance-free living environment that supports
147.6  individuals in recovery from substance use disorder.
147.7      Subd. 7. Recovery residence registry. "Recovery residence registry" means the list of
147.8  certified recovery residences maintained by the commissioner.
147.9      Subd. 8. Resident. "Resident" means an individual who resides in a recovery residence.
147.10     Subd. 9. Staff. "Staff" means employees, contractors, or volunteers who provide
147.11 monitoring, assistance, or other services for the use and benefit of a recovery residence and
147.12 the residence's residents.
147.13     Subd. 10. Substance free. "Substance free" means being free from the use of alcohol,
147.14 illicit drugs, and the illicit use of prescribed drugs. This term does not prohibit medications
147.15 prescribed, dispensed, or administered by a licensed health care professional, such as
147.16 pharmacotherapies specifically approved by the United States Food and Drug Administration
147.17 (FDA) for treatment of a substance use disorder as well as other medications approved by
147.18 the FDA for the treatment of co-occurring disorders when taken as directed.
147.19     Subd. 11. Substance use disorder. "Substance use disorder" has the meaning given in
147.20 the most recent edition of the Diagnostic and Statistical Manual of Disorders of the American
147.21 Psychiatric Association.
147.22     EFFECTIVE DATE. This section is effective January 1, 2027.
147.23   Sec. 39. [254B.211] RESIDENCE REQUIREMENTS AND RESIDENT RIGHTS.
147.24     Subdivision 1. Applicability. This section is applicable to all recovery residences
147.25 regardless of certification status.
147.26     Subd. 2. Residence requirements. All recovery residences must:
147.27     (1) comply with applicable state laws and regulations and local ordinances related to
147.28 maximum occupancy, fire safety, and sanitation;
147.29     (2) have safety policies and procedures that, at a minimum, address:
147.30     (i) safety inspections requiring periodic verification of smoke detectors, carbon monoxide
147.31 detectors, fire extinguishers, and emergency evacuation drills;
  Article 4 Sec. 39.  147
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
148.1      (ii) exposure to bodily fluids and contagious disease; and
148.2      (iii) emergency procedures posted in conspicuous locations in the residence;
148.3      (3) maintain a supply of an opiate antagonist in the home, post information on proper
148.4  use, and train staff in opiate antagonist use;
148.5      (4) have written policies regarding access to all prescribed medications and storage of
148.6  medications when requested by the resident;
148.7      (5) have written policies regarding residency termination, including how length of stay
148.8  is determined and procedures in case of evictions;
148.9      (6) return all property and medications to a person discharged from the home and retain
148.10 the items for a minimum of 60 days if the person did not collect the items upon discharge.
148.11 The owner must make an effort to contact persons listed as emergency contacts for the
148.12 discharged person so that the items are returned;
148.13     (7) ensure separation of money of persons served by the program from money of the
148.14 program or program staff. The program and staff must not:
148.15     (i) borrow money from a person served by the program;
148.16     (ii) purchase personal items from a person served by the program;
148.17     (iii) sell merchandise or personal services to a person served by the program;
148.18     (iv) require a person served by the program to purchase items for which the program is
148.19 eligible for reimbursement; or
148.20     (v) use money of persons served by the program to purchase items for which the program
148.21 is already receiving public or private payments;
148.22     (8) document the names and contact information for persons to contact in case of an
148.23 emergency, upon discharge, or other circumstances designated by the resident, including
148.24 but not limited to death due to an overdose;
148.25     (9) maintain contact information for emergency resources in the community, including
148.26 but not limited to local mental health crisis services and the 988 Lifeline, to address mental
148.27 health and health emergencies;
148.28     (10) have policies on staff qualifications and a prohibition against relationships between
148.29 operators and residents;
  Article 4 Sec. 39.  148
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
149.1      (11) permit residents to use, as directed by a licensed prescriber, legally prescribed and
149.2  dispensed or administered pharmacotherapies approved by the FDA for the treatment of
149.3  opioid use disorder, co-occurring substance use disorders, and mental health conditions;
149.4      (12) have a fee schedule and refund policy;
149.5      (13) have rules for residents, including on prohibited items;
149.6      (14) have policies that promote resident participation in treatment, self-help groups, or
149.7  other recovery supports;
149.8      (15) have policies requiring abstinence from alcohol and illicit drugs on the property.
149.9  If the program utilizes drug screening or toxicology, the procedures must be included in the
149.10 program's policies;
149.11     (16) distribute the recovery resident bill of rights in subdivision 3, resident rules,
149.12 certification, and grievance process and post the documents in this clause in common areas;
149.13     (17) have policies and procedures on person and room searches;
149.14     (18) have code of ethics policies and procedures they are aligned with the NARR code
149.15 of ethics and document that the policies and procedures are read and signed by all those
149.16 associated with the operation of the recovery residence, including owners, operators, staff,
149.17 and volunteers;
149.18     (19) have a description of how residents are involved with the governance of the
149.19 residence, including decision-making procedures, how residents are involved in setting and
149.20 implementing rules, and the role of peer leaders, if any; and
149.21     (20) have procedures to maintain a respectful environment, including appropriate action
149.22 to stop intimidation, bullying, sexual harassment, or threatening behavior of residents, staff,
149.23 and visitors within the residence. Programs should consider trauma-informed and
149.24 resilience-promoting practices when determining action.
149.25     Subd. 3. Resident bill of rights. An individual living in a recovery residence has the
149.26 right to:
149.27     (1) have access to an environment that supports recovery;
149.28     (2) have access to an environment that is safe and free from alcohol and other illicit
149.29 drugs or substances;
149.30     (3) be free from physical and verbal abuse, neglect, financial exploitation, and all forms
149.31 of maltreatment covered under the Vulnerable Adults Act, sections 626.557 to 626.5572;
  Article 4 Sec. 39.  149
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
150.1      (4) be treated with dignity and respect and to have personal property treated with respect;
150.2      (5) have personal, financial, and medical information kept private and to be advised of
150.3  the recovery residence's policies and procedures regarding disclosure of the information;
150.4      (6) access while living in the residence to other community-based support services as
150.5  needed;
150.6      (7) be referred to appropriate services upon leaving the residence if necessary;
150.7      (8) retain personal property that does not jeopardize the safety or health of the resident
150.8  or others;
150.9      (9) assert the rights in this subdivision personally or have the rights asserted by the
150.10 individual's representative or by anyone on behalf of the individual without retaliation;
150.11     (10) be provided with the name, address, and telephone number of the ombudsman for
150.12 mental health and developmental disabilities and the commissioner and be provided with
150.13 information about the right to file a complaint;
150.14     (11) be fully informed of the rights and responsibilities in this section and program
150.15 policies and procedures; and
150.16     (12) not be required to perform services for the residence that are not included in the
150.17 usual expectations for all residents.
150.18     EFFECTIVE DATE. This section is effective January 1, 2027.
150.19   Sec. 40. [254B.212] COMPLAINTS AGAINST RECOVERY RESIDENCES.
150.20     Subdivision 1. In general. Any complaints about a recovery residence may be made to
150.21 and reviewed or investigated by the commissioner.
150.22     Subd. 2. Types of complaints. The commissioner must receive and review complaints
150.23 that concern:
150.24     (1) the health and safety of residents;
150.25     (2) management of the recovery residence, including but not limited to house
150.26 environment, financial procedures, staffing, house rules and regulations, improper handling
150.27 of resident terminations, and recovery support environment; or
150.28     (3) illegal activities or threats.
150.29     Subd. 3. Investigation. (a) Complaints regarding illegal activities or threats must be
150.30 immediately referred to law enforcement in the jurisdiction where the recovery residence
  Article 4 Sec. 40.  150
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
151.1  is located. The commissioner must continue to investigate complaints under subdivision 2,
151.2  clause (3), that have been referred to law enforcement unless law enforcement requests the
151.3  commissioner to stay the investigation.
151.4      (b) The commissioner must investigate all other types of complaints under this section
151.5  and may take any action necessary to conduct an investigation, including but not limited to
151.6  interviewing the recovery residence operator, staff, and residents and inspecting the premises.
151.7      Subd. 4. Anonymity. When making a complaint pursuant to this section, an individual
151.8  must disclose the individual's identity to the commissioner. Unless ordered by a court or
151.9  authorized by the complainant, the commissioner must not disclose the complainant's
151.10 identity.
151.11     Subd. 5. Prohibition against retaliation. A recovery residence owner, operator, director,
151.12 staff member, or resident must not be subject to retaliation, including but not limited to
151.13 interference, threats, coercion, harassment, or discrimination for making any complaint
151.14 against a recovery residence or against a recovery residence owner, operator, or chief
151.15 financial officer.
151.16     EFFECTIVE DATE. This section is effective January 1, 2027.
151.17   Sec. 41. [254B.213] CERTIFICATION.
151.18     Subdivision 1. Voluntary certification. The commissioner must establish and provide
151.19 for the administration of a voluntary certification program based on best practices as outlined
151.20 by the American Society for Addiction Medicine and the Substance Abuse and Mental
151.21 Health Services Administration for recovery residences seeking certification under this
151.22 section.
151.23     Subd. 2. Application requirements. An applicant for certification must, at a minimum,
151.24 submit the following documents on forms approved by the commissioner:
151.25     (1) if the premises for the recovery residence is leased, documentation from the owner
151.26 that the applicant has permission from the owner to operate a recovery residence on the
151.27 premises;
151.28     (2) all policies and procedures required under this chapter;
151.29     (3) copies of all forms provided to residents, including but not limited to the recovery
151.30 residence's medication, drug-testing, return-to-use, refund, and eviction or transfer policies;
151.31     (4) proof of insurance coverage necessary and, at a minimum:
  Article 4 Sec. 41.  151
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
152.1      (i) employee dishonesty insurance in the amount of $10,000 if the vendor has or had
152.2  custody or control of money or property belonging to clients; and
152.3      (ii) bodily injury and property damage insurance in the amount of $2,000,000 for each
152.4  occurrence; and
152.5      (5) proof of completed background checks for the operator and residence staff.
152.6      Subd. 3. Inspection pursuant to application. Upon receiving a completed application,
152.7  the commissioner must conduct an initial on-site inspection of the recovery residence to
152.8  ensure the residence is in compliance with the requirements of sections 254B.21 to 254B.216.
152.9      Subd. 4. Certification. The commissioner must certify a recovery residence upon
152.10 approval of the application and after the initial on-site inspection. The certification
152.11 automatically terminates three years after issuance of the certification if the commissioner
152.12 does not renew the certification. Upon certification, the commissioner must issue the recovery
152.13 residence a proof of certification.
152.14     Subd. 5. Display of proof of certification. A certified recovery residence must publicly
152.15 display a proof of certification in the recovery residence.
152.16     Subd. 6. Nontransferability. Certifications issued pursuant to this section cannot be
152.17 transferred to an address other than the address in the application or to another certification
152.18 holder without prior approval from the commissioner.
152.19     EFFECTIVE DATE. This section is effective January 1, 2027.
152.20   Sec. 42. [254B.214] MONITORING AND OVERSIGHT OF CERTIFIED
152.21 RECOVERY RESIDENCES.
152.22     Subdivision 1. Monitoring and inspections. (a) The commissioner must conduct an
152.23 on-site certification review of the certified recovery residence every three years to determine
152.24 the certification holder's compliance with applicable rules and statutes.
152.25     (b) The commissioner must offer the certification holder a choice of dates for an
152.26 announced certification review. A certification review must occur during regular business
152.27 hours.
152.28     (c) The commissioner must make the results of certification reviews and the results of
152.29 investigations that result in a correction order publicly available on the department's website.
152.30     Subd. 2. Commissioner's right of access. (a) When the commissioner is exercising the
152.31 powers conferred to the commissioner under this section, if the recovery residence is in
  Article 4 Sec. 42.  152
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
153.1  operation and the information is relevant to the commissioner's inspection or investigation,
153.2  the certification holder must provide the commissioner access to:
153.3      (1) the physical facility and grounds where the residence is located;
153.4      (2) documentation and records, including electronically maintained records;
153.5      (3) residents served by the recovery residence;
153.6      (4) staff persons of the recovery residence; and
153.7      (5) personnel records of current and former staff of the recovery residence.
153.8      (b) The applicant or certification holder must provide the commissioner with access to
153.9  the facility and grounds, documentation and records, residents, and staff without prior notice
153.10 and as often as the commissioner considers necessary if the commissioner is conducting an
153.11 inspection or investigating alleged maltreatment or a violation of a law or rule. When
153.12 conducting an inspection, the commissioner may request assistance from other state, county,
153.13 and municipal governmental agencies and departments. The applicant or certification holder
153.14 must allow the commissioner, at the commissioner's expense, to photocopy, photograph,
153.15 and make audio and video recordings during an inspection.
153.16     Subd. 3. Correction orders. (a) If the applicant or certification holder fails to comply
153.17 with a law or rule, the commissioner may issue a correction order. The correction order
153.18 must state:
153.19     (1) the condition that constitutes a violation of the law or rule;
153.20     (2) the specific law or rule that the applicant or certification holder has violated; and
153.21     (3) the time that the applicant or certification holder is allowed to correct each violation.
153.22     (b) If the applicant or certification holder believes that the commissioner's correction
153.23 order is erroneous, the applicant or certification holder may ask the commissioner to
153.24 reconsider the correction order. An applicant or certification holder must make a request
153.25 for reconsideration in writing. The request must be sent via electronic communication to
153.26 the commissioner within 20 calendar days after the applicant or certification holder received
153.27 the correction order and must:
153.28     (1) specify the part of the correction order that is allegedly erroneous;
153.29     (2) explain why the specified part is erroneous; and
153.30     (3) include documentation to support the allegation of error.
  Article 4 Sec. 42.  153
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
154.1      (c) A request for reconsideration does not stay any provision or requirement of the
154.2  correction order. The commissioner's disposition of a request for reconsideration is final
154.3  and not subject to appeal.
154.4      (d) If the commissioner finds that the applicant or certification holder failed to correct
154.5  the violation specified in the correction order, the commissioner may decertify the certified
154.6  recovery residence according to subdivision 4.
154.7      (e) Nothing in this subdivision prohibits the commissioner from decertifying a recovery
154.8  residence according to subdivision 4.
154.9      Subd. 4. Decertification. (a) The commissioner may decertify a recovery residence if
154.10 a certification holder:
154.11     (1) failed to comply with an applicable law or rule; or
154.12     (2) knowingly withheld relevant information from or gave false or misleading information
154.13 to the commissioner in connection with an application for certification, during an
154.14 investigation, or regarding compliance with applicable laws or rules.
154.15     (b) When considering decertification of a recovery residence, the commissioner must
154.16 consider the nature, chronicity, or severity of the violation of law or rule and the effect of
154.17 the violation on the health, safety, or rights of residents.
154.18     (c) If the commissioner decertifies a recovery residence, the order of decertification
154.19 must inform the certification holder of the right to have a contested case hearing under
154.20 chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The certification holder
154.21 may appeal the decertification. The certification holder must appeal a decertification in
154.22 writing and send or deliver the appeal to the commissioner by certified mail or personal
154.23 service. If the certification holder mails the appeal, the appeal must be postmarked and sent
154.24 to the commissioner within ten calendar days after the certification holder receives the order
154.25 of decertification. If the certification holder delivers an appeal by personal service, the
154.26 commissioner must receive the appeal within ten calendar days after the certification holder
154.27 received the order. If the certification holder submits a timely appeal of an order of
154.28 decertification, the certification holder may continue to operate the program until the
154.29 commissioner issues a final order on the decertification.
154.30     (d) If the commissioner decertifies a recovery residence pursuant to paragraph (a), clause
154.31 (1), based on a determination that the recovery residence was responsible for maltreatment
154.32 under chapter 260E or section 626.557, the final decertification determination is stayed until
154.33 the commissioner issues a final decision regarding the maltreatment appeal if the certification
  Article 4 Sec. 42.  154
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
155.1  holder appeals the decertification according to paragraph (c) and appeals the maltreatment
155.2  determination pursuant to chapter 260E or section 626.557.
155.3      Subd. 5. Notifications required and noncompliance. (a) Changes in recovery residence
155.4  organization, staffing, services, or quality assurance procedures that affect the ability of the
155.5  certification holder to comply with the minimum standards of this chapter must be reported
155.6  in writing by the certification holder to the commissioner, in a manner approved by the
155.7  commissioner, within 15 days of the occurrence. The commissioner must review the change.
155.8  If the change would result in noncompliance in minimum standards, the commissioner must
155.9  give the recovery residence written notice and up to 180 days to correct the areas of
155.10 noncompliance before being decertified. The recovery residence must develop interim
155.11 procedures to resolve the noncompliance on a temporary basis and submit the interim
155.12 procedures in writing to the commissioner for approval within 30 days of the commissioner's
155.13 determination of the noncompliance. The commissioner must immediately decertify a
155.14 recovery residence that fails to report a change that results in noncompliance within 15 days,
155.15 fails to develop an approved interim procedure within 30 days of the determination of the
155.16 noncompliance, or does not resolve the noncompliance within 180 days.
155.17     (b) The commissioner may require the recovery residence to submit written information
155.18 to document that the recovery residence has maintained compliance with this section.
155.19     EFFECTIVE DATE. This section is effective January 1, 2027.
155.20   Sec. 43. [254B.215] CERTIFICATION LEVELS.
155.21     Subdivision 1. Certification levels. When certifying a recovery residence, the
155.22 commissioner must specify whether the residence is a level-one or level-two certified
155.23 recovery residence.
155.24     Subd. 2. Level-one certification. (a) The commissioner must designate a certified
155.25 residence as a level-one certified recovery residence when the residence is peer run. A
155.26 level-one certified recovery residence must:
155.27     (1) not permit an allowance for on-site paid staff or operator of the recovery residence;
155.28     (2) permit only nonpaid staff to live or work within the residence; and
155.29     (3) ensure that decisions are made solely by residents.
155.30     (b) Staff of a level-one certified recovery residence must not provide billable peer
155.31 recovery support services to residents of the recovery residence.
  Article 4 Sec. 43.  155
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
156.1      Subd. 3. Level-two certification. (a) The commissioner must designate a certified
156.2  residence as a level-two certified recovery residence when the residence is managed by
156.3  someone other than the residents. A level-two certified recovery residence must have staff
156.4  to model and teach recovery skills and behaviors.
156.5      (b) A level-two certified recovery residence must:
156.6      (1) have written job descriptions for each staff member position, including position
156.7  responsibilities and qualifications;
156.8      (2) have written policies and procedures for ongoing performance development of staff;
156.9      (3) provide annual training on emergency procedures, resident bill of rights, grievance
156.10 policies and procedures, and code of ethics;
156.11     (4) provide community or house meetings, peer supports, and involvement in self-help
156.12 or off-site treatment services;
156.13     (5) have identified recovery goals;
156.14     (6) maintain documentation that residents are linked with community resources such as
156.15 job search, education, family services, and health and housing programs; and
156.16     (7) maintain documentation of referrals made for additional services.
156.17     (c) Staff of a level-two certified recovery residence must not provide billable peer support
156.18 services to residents of the recovery residence.
156.19     EFFECTIVE DATE. This section is effective January 1, 2027.
156.20   Sec. 44. [254B.216] RESIDENT RECORD.
156.21     A certified recovery residence must maintain documentation with a resident's signature
156.22 stating that each resident received the following prior to or on the first day of residency:
156.23     (1) the recovery resident bill of rights in section 254B.211, subdivision 3;
156.24     (2) the residence's financial obligations and agreements, refund policy, and payments
156.25 from third-party payers for any fees paid on the resident's behalf;
156.26     (3) a description of the services provided by the recovery residence;
156.27     (4) relapse policies;
156.28     (5) policies regarding personal property;
156.29     (6) orientation to emergency procedures;
  Article 4 Sec. 44.  156
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
157.1      (7) orientation to resident rules; and
157.2      (8) all other applicable orientation materials identified in sections 254B.21 to 254B.216.
157.3      EFFECTIVE DATE. This section is effective January 1, 2027.
157.4    Sec. 45. Minnesota Statutes 2024, section 256.043, subdivision 3, is amended to read:
157.5      Subd. 3. Appropriations from registration and license fee account. (a) The
157.6  appropriations in paragraphs (b) to (n) shall be made from the registration and license fee
157.7  account on a fiscal year basis in the order specified.
157.8      (b) The appropriations specified in Laws 2019, chapter 63, article 3, section 1, paragraphs
157.9  (b), (f), (g), and (h), as amended by Laws 2020, chapter 115, article 3, section 35, shall be
157.10 made accordingly.
157.11     (c) $100,000 is appropriated to the commissioner of human services for grants for opiate
157.12 antagonist distribution. Grantees may utilize funds for opioid overdose prevention,
157.13 community asset mapping, education, and opiate antagonist distribution.
157.14     (d) $2,000,000 is appropriated to the commissioner of human services for grants direct
157.15 payments to Tribal nations and five urban Indian communities for traditional healing practices
157.16 for American Indians and to increase the capacity of culturally specific providers in the
157.17 behavioral health workforce. Any evaluations of practices under this paragraph must be
157.18 designed cooperatively by the commissioner and Tribal nations or urban Indian communities.
157.19 The commissioner must not require recipients to provide the details of specific ceremonies
157.20 or identities of healers.
157.21     (e) $400,000 is appropriated to the commissioner of human services for competitive
157.22 grants for opioid-focused Project ECHO programs.
157.23     (f) $277,000 in fiscal year 2024 and $321,000 each year thereafter is appropriated to the
157.24 commissioner of human services to administer the funding distribution and reporting
157.25 requirements in paragraph (o).
157.26     (g) $3,000,000 in fiscal year 2025 and $3,000,000 each year thereafter is appropriated
157.27 to the commissioner of human services for safe recovery sites start-up and capacity building
157.28 grants under section 254B.18.
157.29     (h) $395,000 in fiscal year 2024 and $415,000 each year thereafter is appropriated to
157.30 the commissioner of human services for the opioid overdose surge alert system under section
157.31 245.891.
  Article 4 Sec. 45.  157
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
158.1      (i) $300,000 is appropriated to the commissioner of management and budget for
158.2  evaluation activities under section 256.042, subdivision 1, paragraph (c).
158.3      (j) $261,000 is appropriated to the commissioner of human services for the provision of
158.4  administrative services to the Opiate Epidemic Response Advisory Council and for the
158.5  administration of the grants awarded under paragraph (n).
158.6      (k) $126,000 is appropriated to the Board of Pharmacy for the collection of the registration
158.7  fees under section 151.066.
158.8      (l) $672,000 is appropriated to the commissioner of public safety for the Bureau of
158.9  Criminal Apprehension. Of this amount, $384,000 is for drug scientists and lab supplies
158.10 and $288,000 is for special agent positions focused on drug interdiction and drug trafficking.
158.11     (m) After the appropriations in paragraphs (b) to (l) are made, 50 percent of the remaining
158.12 amount is appropriated to the commissioner of children, youth, and families for distribution
158.13 to county social service agencies and Tribal social service agency initiative projects
158.14 authorized under section 256.01, subdivision 14b, to provide prevention and child protection
158.15 services to children and families who are affected by addiction. The commissioner shall
158.16 distribute this money proportionally to county social service agencies and Tribal social
158.17 service agency initiative projects through a formula based on intake data from the previous
158.18 three calendar years related to substance use and out-of-home placement episodes where
158.19 parental drug abuse is a reason for the out-of-home placement. County social service agencies
158.20 and Tribal social service agency initiative projects receiving funds from the opiate epidemic
158.21 response fund must annually report to the commissioner on how the funds were used to
158.22 provide prevention and child protection services, including measurable outcomes, as
158.23 determined by the commissioner. County social service agencies and Tribal social service
158.24 agency initiative projects must not use funds received under this paragraph to supplant
158.25 current state or local funding received for child protection services for children and families
158.26 who are affected by addiction.
158.27     (n) After the appropriations in paragraphs (b) to (m) are made, the remaining amount in
158.28 the account is appropriated to the commissioner of human services to award grants as
158.29 specified by the Opiate Epidemic Response Advisory Council in accordance with section
158.30 256.042, unless otherwise appropriated by the legislature.
158.31     (o) Beginning in fiscal year 2022 and each year thereafter, funds for county social service
158.32 agencies and Tribal social service agency initiative projects under paragraph (m) and grant
158.33 funds specified by the Opiate Epidemic Response Advisory Council under paragraph (n)
158.34 may be distributed on a calendar year basis.
  Article 4 Sec. 45.  158
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
159.1      (p) Notwithstanding section 16A.28, subdivision 3, funds appropriated in paragraphs
159.2  (c), (d), (e), (g), (m), and (n) are available for three years after the funds are appropriated.
159.3    Sec. 46. Minnesota Statutes 2024, section 256B.0625, subdivision 5m, as amended by
159.4  Laws 2025, chapter 20, section 208, is amended to read:
159.5      Subd. 5m. Certified community behavioral health clinic services. (a) Medical
159.6  assistance covers services provided by a not-for-profit certified community behavioral health
159.7  clinic (CCBHC) that meets the requirements of section 245.735, subdivision 3.
159.8      (b) The commissioner shall reimburse CCBHCs on a per-day basis for each day that an
159.9  eligible service is delivered using the CCBHC daily bundled rate system for medical
159.10 assistance payments as described in paragraph (c). The commissioner shall include a quality
159.11 incentive payment in the CCBHC daily bundled rate system as described in paragraph (e).
159.12 There is no county share for medical assistance services when reimbursed through the
159.13 CCBHC daily bundled rate system.
159.14     (c) The commissioner shall ensure that the CCBHC daily bundled rate system for CCBHC
159.15 payments under medical assistance meets the following requirements:
159.16     (1) the CCBHC daily bundled rate shall be a provider-specific rate calculated for each
159.17 CCBHC, based on the daily cost of providing CCBHC services and the total annual allowable
159.18 CCBHC costs divided by the total annual number of CCBHC visits. For calculating the
159.19 payment rate, total annual visits include visits covered by medical assistance and visits not
159.20 covered by medical assistance. Allowable costs include but are not limited to the salaries
159.21 and benefits of medical assistance providers; the cost of CCBHC services provided under
159.22 section 245.735, subdivision 3, paragraph (a), clauses (6) and (7); and other costs such as
159.23 insurance or supplies needed to provide CCBHC services;
159.24     (2) payment shall be limited to one payment per day per medical assistance enrollee
159.25 when an eligible CCBHC service is provided. A CCBHC visit is eligible for reimbursement
159.26 if at least one of the CCBHC services listed under section 245.735, subdivision 3, paragraph
159.27 (a), clause (6), is furnished to a medical assistance enrollee by a health care practitioner or
159.28 licensed agency employed by or under contract with a CCBHC;
159.29     (3) initial CCBHC daily bundled rates for newly certified CCBHCs under section 245.735,
159.30 subdivision 3, shall be established by the commissioner using a provider-specific rate based
159.31 on the newly certified CCBHC's audited historical cost report data adjusted for the expected
159.32 cost of delivering CCBHC services. Estimates are subject to review by the commissioner
  Article 4 Sec. 46.  159
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
160.1  and must include the expected cost of providing the full scope of CCBHC services and the
160.2  expected number of visits for the rate period;
160.3      (4) the commissioner shall rebase CCBHC rates once every two years following the last
160.4  rebasing and no less than 12 months following an initial rate or a rate change due to a change
160.5  in the scope of services. For CCBHCs certified after September 30, 2020, and before January
160.6  1, 2021, the commissioner shall rebase rates according to this clause for services provided
160.7  on or after January 1, 2024;
160.8      (5) the commissioner shall provide for a 60-day appeals process after notice of the results
160.9  of the rebasing;
160.10     (6) an entity that receives a CCBHC daily bundled rate that overlaps with another federal
160.11 Medicaid rate is not eligible for the CCBHC rate methodology;
160.12     (7) payments for CCBHC services to individuals enrolled in managed care shall be
160.13 coordinated with the state's phase-out of CCBHC wrap payments. The commissioner shall
160.14 complete the phase-out of CCBHC wrap payments within 60 days of the implementation
160.15 of the CCBHC daily bundled rate system in the Medicaid Management Information System
160.16 (MMIS), for CCBHCs reimbursed under this chapter, with a final settlement of payments
160.17 due made payable to CCBHCs no later than 18 months thereafter;
160.18     (8) the CCBHC daily bundled rate for each CCBHC shall be updated by trending each
160.19 provider-specific rate by the Medicare Economic Index for primary care services. This
160.20 update shall occur each year in between rebasing periods determined by the commissioner
160.21 in accordance with clause (4). CCBHCs must provide data on costs and visits to the state
160.22 annually using the CCBHC cost report established by the commissioner; and
160.23     (9) a CCBHC may request a rate adjustment for changes in the CCBHC's scope of
160.24 services when such changes are expected to result in an adjustment to the CCBHC payment
160.25 rate by 2.5 percent or more. The CCBHC must provide the commissioner with information
160.26 regarding the changes in the scope of services, including the estimated cost of providing
160.27 the new or modified services and any projected increase or decrease in the number of visits
160.28 resulting from the change. Estimated costs are subject to review by the commissioner. Rate
160.29 adjustments for changes in scope shall occur no more than once per year in between rebasing
160.30 periods per CCBHC and are effective on the date of the annual CCBHC rate update.
160.31     (d) Managed care plans and county-based purchasing plans shall reimburse CCBHC
160.32 providers at the CCBHC daily bundled rate. The commissioner shall monitor the effect of
160.33 this requirement on the rate of access to the services delivered by CCBHC providers. If, for
160.34 any contract year, federal approval is not received for this paragraph, the commissioner
  Article 4 Sec. 46.  160
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
161.1  must adjust the capitation rates paid to managed care plans and county-based purchasing
161.2  plans for that contract year to reflect the removal of this provision. Contracts between
161.3  managed care plans and county-based purchasing plans and providers to whom this paragraph
161.4  applies must allow recovery of payments from those providers if capitation rates are adjusted
161.5  in accordance with this paragraph. Payment recoveries must not exceed the amount equal
161.6  to any increase in rates that results from this provision. This paragraph expires if federal
161.7  approval is not received for this paragraph at any time.
161.8      (e) The commissioner shall implement a quality incentive payment program for CCBHCs
161.9  that meets the following requirements:
161.10     (1) a CCBHC shall receive a quality incentive payment upon meeting specific numeric
161.11 thresholds for performance metrics established by the commissioner, in addition to payments
161.12 for which the CCBHC is eligible under the CCBHC daily bundled rate system described in
161.13 paragraph (c);
161.14     (2) a CCBHC must be certified and enrolled as a CCBHC for the entire measurement
161.15 year to be eligible for incentive payments;
161.16     (3) each CCBHC shall receive written notice of the criteria that must be met in order to
161.17 receive quality incentive payments at least 90 days prior to the measurement year; and
161.18     (4) a CCBHC must provide the commissioner with data needed to determine incentive
161.19 payment eligibility within six months following the measurement year. The commissioner
161.20 shall notify CCBHC providers of their performance on the required measures and the
161.21 incentive payment amount within 12 months following the measurement year.
161.22     (f) All claims to managed care plans for CCBHC services as provided under this section
161.23 shall be submitted directly to, and paid by, the commissioner on the dates specified no later
161.24 than January 1 of the following calendar year, if:
161.25     (1) one or more managed care plans does not comply with the federal requirement for
161.26 payment of clean claims to CCBHCs, as defined in Code of Federal Regulations, title 42,
161.27 section 447.45(b), and the managed care plan does not resolve the payment issue within 30
161.28 days of noncompliance; and
161.29     (2) the total amount of clean claims not paid in accordance with federal requirements
161.30 by one or more managed care plans is 50 percent of, or greater than, the total CCBHC claims
161.31 eligible for payment by managed care plans.
161.32 If the conditions in this paragraph are met between January 1 and June 30 of a calendar
161.33 year, claims shall be submitted to and paid by the commissioner beginning on January 1 of
  Article 4 Sec. 46.  161
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
162.1  the following year. If the conditions in this paragraph are met between July 1 and December
162.2  31 of a calendar year, claims shall be submitted to and paid by the commissioner beginning
162.3  on July 1 of the following year.
162.4(g) Peer services provided by a CCBHC certified under section 245.735 are a covered
162.5  service under medical assistance when a licensed mental health professional or alcohol and
162.6  drug counselor determines that peer services are medically necessary. Eligibility under this
162.7  subdivision for peer services provided by a CCBHC supersede eligibility standards under
162.8  sections 256B.0615, 256B.0616, and 245G.07, subdivision 2 2a, paragraph (b), clause (8)
162.9  (2).
162.10EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
162.11 whichever is later. The commissioner of human services shall notify the revisor of statutes
162.12 when federal approval is obtained.
162.13   Sec. 47. Minnesota Statutes 2024, section 256B.0757, subdivision 4c, is amended to read:
162.14Subd. 4c. Behavioral health home services staff qualifications. (a) A behavioral health
162.15 home services provider must maintain staff with required professional qualifications
162.16 appropriate to the setting.
162.17(b) If behavioral health home services are offered in a mental health setting, the
162.18 integration specialist must be a licensed nurse, as defined in section 148.171, subdivision
162.19 9.
162.20(c) If behavioral health home services are offered in a primary care setting, the integration
162.21 specialist must be a mental health professional who is qualified according to section 245I.04,
162.22 subdivision 2.
162.23(d) If behavioral health home services are offered in either a primary care setting or
162.24 mental health setting, the systems navigator must be a mental health practitioner who is
162.25 qualified according to section 245I.04, subdivision 4, or a community health worker as
162.26 defined in section 256B.0625, subdivision 49.
162.27(e) If behavioral health home services are offered in either a primary care setting or
162.28 mental health setting, the qualified health home specialist must be one of the following:
162.29(1) a mental health certified peer specialist who is qualified according to section 245I.04,
162.30 subdivision 10;
162.31(2) a mental health certified family peer specialist who is qualified according to section
162.32 245I.04, subdivision 12;
  Article 4 Sec. 47.  162
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
163.1      (3) a case management associate as defined in section 245.462, subdivision 4, paragraph
163.2  (g), or 245.4871, subdivision 4, paragraph (j);
163.3      (4) a mental health rehabilitation worker who is qualified according to section 245I.04,
163.4  subdivision 14;
163.5      (5) a community paramedic as defined in section 144E.28, subdivision 9;
163.6      (6) a peer recovery specialist as defined in section 245G.07, subdivision 1, clause (5)
163.7  245G.11, subdivision 8; or
163.8      (7) a community health worker as defined in section 256B.0625, subdivision 49.
163.9      EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
163.10 whichever is later. The commissioner of human services shall notify the revisor of statutes
163.11 when federal approval is obtained.
163.12   Sec. 48. Minnesota Statutes 2024, section 256B.761, is amended to read:
163.13     256B.761 REIMBURSEMENT FOR MENTAL HEALTH SERVICES.
163.14     (a) Effective for services rendered on or after July 1, 2001, payment for medication
163.15 management provided to psychiatric patients, outpatient mental health services, day treatment
163.16 services, home-based mental health services, and family community support services shall
163.17 be paid at the lower of (1) submitted charges, or (2) 75.6 percent of the 50th percentile of
163.18 1999 charges.
163.19     (b) Effective July 1, 2001, the medical assistance rates for outpatient mental health
163.20 services provided by an entity that operates: (1) a Medicare-certified comprehensive
163.21 outpatient rehabilitation facility; and (2) a facility that was certified prior to January 1, 1993,
163.22 with at least 33 percent of the clients receiving rehabilitation services in the most recent
163.23 calendar year who are medical assistance recipients, will be increased by 38 percent, when
163.24 those services are provided within the comprehensive outpatient rehabilitation facility and
163.25 provided to residents of nursing facilities owned by the entity.
163.26     (c) In addition to rate increases otherwise provided, the commissioner may restructure
163.27 coverage policy and rates to improve access to adult rehabilitative mental health services
163.28 under section 256B.0623 and related mental health support services under section 256B.021,
163.29 subdivision 4, paragraph (f), clause (2). For state fiscal years 2015 and 2016, the projected
163.30 state share of increased costs due to this paragraph is transferred from adult mental health
163.31 grants under sections 245.4661 and 256K.10. The transfer for fiscal year 2016 is a permanent
163.32 base adjustment for subsequent fiscal years. Payments made to managed care plans and
  Article 4 Sec. 48.  163
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
164.1  county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect
164.2  the rate changes described in this paragraph.
164.3      (d) Any ratables effective before July 1, 2015, do not apply to early intensive
164.4  developmental and behavioral intervention (EIDBI) benefits described in section 256B.0949.
164.5      (e) Effective for services rendered on or after January 1, 2024, payment rates for
164.6  behavioral health services included in the rate analysis required by Laws 2021, First Special
164.7  Session chapter 7, article 17, section 18, except for adult day treatment services under section
164.8  256B.0671, subdivision 3; early intensive developmental and behavioral intervention services
164.9  under section 256B.0949; and substance use disorder services under chapter 254B, must be
164.10 increased by three percent from the rates in effect on December 31, 2023. Effective for
164.11 services rendered on or after January 1, 2025, payment rates for behavioral health services
164.12 included in the rate analysis required by Laws 2021, First Special Session chapter 7, article
164.13 17, section 18;, except early intensive developmental behavioral intervention services under
164.14 section 256B.0949; and substance use disorder services under chapter 254B, must be annually
164.15 adjusted according to the change from the midpoint of the previous rate year to the midpoint
164.16 of the rate year for which the rate is being determined using the Centers for Medicare and
164.17 Medicaid Services Medicare Economic Index as forecasted in the fourth quarter of the
164.18 calendar year before the rate year. For payments made in accordance with this paragraph,
164.19 if and to the extent that the commissioner identifies that the state has received federal
164.20 financial participation for behavioral health services in excess of the amount allowed under
164.21 United States Code, title 42, section 447.321, the state shall repay the excess amount to the
164.22 Centers for Medicare and Medicaid Services with state money and maintain the full payment
164.23 rate under this paragraph. This paragraph does not apply to federally qualified health centers,
164.24 rural health centers, Indian health services, certified community behavioral health clinics,
164.25 cost-based rates, and rates that are negotiated with the county. This paragraph expires upon
164.26 legislative implementation of the new rate methodology resulting from the rate analysis
164.27 required by Laws 2021, First Special Session chapter 7, article 17, section 18.
164.28     (f) Effective January 1, 2024, the commissioner shall increase capitation payments made
164.29 to managed care plans and county-based purchasing plans to reflect the behavioral health
164.30 service rate increase provided in paragraph (e). Managed care and county-based purchasing
164.31 plans must use the capitation rate increase provided under this paragraph to increase payment
164.32 rates to behavioral health services providers. The commissioner must monitor the effect of
164.33 this rate increase on enrollee access to behavioral health services. If for any contract year
164.34 federal approval is not received for this paragraph, the commissioner must adjust the
164.35 capitation rates paid to managed care plans and county-based purchasing plans for that
  Article 4 Sec. 48.  164
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
165.1  contract year to reflect the removal of this provision. Contracts between managed care plans
165.2  and county-based purchasing plans and providers to whom this paragraph applies must
165.3  allow recovery of payments from those providers if capitation rates are adjusted in accordance
165.4  with this paragraph. Payment recoveries must not exceed the amount equal to any increase
165.5  in rates that results from this provision.
165.6    Sec. 49. Minnesota Statutes 2024, section 256I.04, subdivision 2a, is amended to read:
165.7Subd. 2a. License required; staffing qualifications. (a) Except as provided in paragraph
165.8  (b), an agency may not enter into an agreement with an establishment to provide housing
165.9  support unless:
165.10(1) the establishment is licensed by the Department of Health as a hotel and restaurant;
165.11 a board and lodging establishment; a boarding care home before March 1, 1985; or a
165.12 supervised living facility, and the service provider for residents of the facility is licensed
165.13 under chapter 245A. However, an establishment licensed by the Department of Health to
165.14 provide lodging need not also be licensed to provide board if meals are being supplied to
165.15 residents under a contract with a food vendor who is licensed by the Department of Health;
165.16(2) the residence is: (i) licensed by the commissioner of human services under Minnesota
165.17 Rules, parts 9555.5050 to 9555.6265; (ii) certified by a county human services agency prior
165.18 to July 1, 1992, using the standards under Minnesota Rules, parts 9555.5050 to 9555.6265;
165.19 (iii) licensed by the commissioner under Minnesota Rules, parts 2960.0010 to 2960.0120,
165.20 with a variance under section 245A.04, subdivision 9; or (iv) licensed under section 245D.02,
165.21 subdivision 4a, as a community residential setting by the commissioner of human services;
165.22 or
165.23(3) the facility is licensed under chapter 144G and provides three meals a day.; or
165.24(4) effective January 1, 2027, the establishment is licensed by the Department of Health
165.25 as a board and lodging establishment and is certified by the commissioner as a recovery
165.26 residence in accordance with section 254B.215, subdivision 3, that is subject to the
165.27 requirements of section 256I.04, subdivisions 2a to 2f. The Department of Human Services
165.28 must serve as the lead agency for agreements entered into under this clause.
165.29(b) The requirements under paragraph (a) do not apply to establishments exempt from
165.30 state licensure because they are:
165.31(1) located on Indian reservations and subject to tribal health and safety requirements;
165.32 or
  Article 4 Sec. 49.  165
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
166.1(2) supportive housing establishments where an individual has an approved habitability
166.2  inspection and an individual lease agreement.
166.3(c) Supportive housing establishments that serve individuals who have experienced
166.4  long-term homelessness and emergency shelters must participate in the homeless management
166.5  information system and a coordinated assessment system as defined by the commissioner.
166.6(d) Effective July 1, 2016, an agency shall not have an agreement with a provider of
166.7  housing support unless all staff members who have direct contact with recipients:
166.8(1) have skills and knowledge acquired through one or more of the following:
166.9(i) a course of study in a health- or human services-related field leading to a bachelor
166.10 of arts, bachelor of science, or associate's degree;
166.11(ii) one year of experience with the target population served;
166.12(iii) experience as a mental health certified peer specialist according to section 256B.0615;
166.13 or
166.14(iv) meeting the requirements for unlicensed personnel under sections 144A.43 to
166.15 144A.483;
166.16(2) hold a current driver's license appropriate to the vehicle driven if transporting
166.17 recipients;
166.18(3) complete training on vulnerable adults mandated reporting and child maltreatment
166.19 mandated reporting, where applicable; and
166.20(4) complete housing support orientation training offered by the commissioner.
166.21   Sec. 50. Minnesota Statutes 2024, section 325F.725, is amended to read:
166.22325F.725 SOBER HOME RECOVERY RESIDENCE TITLE PROTECTION.
166.23No person or entity may use the phrase "sober home," "recovery residence," whether
166.24 alone or in combination with other words and whether orally or in writing, to advertise,
166.25 market, or otherwise describe, offer, or promote itself, or any housing, service, service
166.26 package, or program that it provides within this state, unless the person or entity meets the
166.27 definition of a sober home recovery residence in section 254B.01, subdivision 11, and meets
166.28 the requirements of section 254B.181 sections 254B.21 to 254B.216.
166.29EFFECTIVE DATE. This section is effective January 1, 2027.
  Article 4 Sec. 50.  166
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
167.1    Sec. 51. RECOVERY RESIDENCE WORK GROUP.
167.2      (a) The commissioner of human services must convene a work group to develop
167.3  recommendations specific to recovery residences. The work group must:
167.4      (1) produce a report that examines how other states fund recovery residences, identifying
167.5  best practices and models that could be applicable to Minnesota;
167.6      (2) engage with stakeholders to ensure meaningful collaboration with key external
167.7  stakeholders on the ideas being developed that will inform the final plan and
167.8  recommendations; and
167.9      (3) create an implementable plan addressing housing needs for individuals in outpatient
167.10 substance use disorder treatment that includes:
167.11     (i) clear strategies for aligning housing models with individual treatment needs;
167.12     (ii) an assessment of funding streams, including potential federal funding sources;
167.13     (iii) a timeline for implementation with key milestones and action steps;
167.14     (iv) recommendations for future resource allocation to ensure long-term housing stability
167.15 for individuals in recovery;
167.16     (v) specific recommendations for policy or legislative changes that may be required to
167.17 support sustainable recovery housing solutions, including challenges faced by recovery
167.18 residences resulting from state and local housing regulations and ordinances; and
167.19     (vi) recommendations for potentially delegating the commissioner's recovery residence
167.20 certification duties under Minnesota Statutes, sections 254B.21 to 254B.216 to a third-party
167.21 organization.
167.22     (b) The work group must include but is not limited to:
167.23     (1) at least two designees from the Department of Human Services representing: (i)
167.24 behavioral health; and (ii) homelessness and housing and support services;
167.25     (2) the commissioner of health or a designee;
167.26     (3) two people who have experience living in a recovery residence;
167.27     (4) representatives from at least three substance use disorder lodging facilities currently
167.28 operating in Minnesota;
167.29     (5) three representatives from county social services agencies, at least one from inside
167.30 the seven-county metropolitan area and one from outside the seven-county metropolitan
167.31 area;
  Article 4 Sec. 51.  167
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
168.1      (6) a representative from a Tribal social services agency;
168.2      (7) representatives from the state affiliate of the National Alliance for Recovery
168.3  Residences; and
168.4      (8) representatives from state mental health advocacy and adult mental health provider
168.5  organizations.
168.6      (c) The work group must meet at least monthly and as necessary to fulfill its
168.7  responsibilities. The commissioner of human services must provide administrative support
168.8  and meeting space for the work group. The work group may conduct meetings remotely.
168.9      (d) The commissioner of human services must make appointments to the work group
168.10 by October 1, 2025, and convene the first meeting of the work group by January 15, 2026.
168.11     (e) The work group must submit a final report with recommendations to the chairs and
168.12 ranking minority members of the legislative committees with jurisdiction over health and
168.13 human services policy and finance on or before January 1, 2027.
168.14   Sec. 52. DIRECTION TO COMMISSIONER; SUBSTANCE USE DISORDER
168.15 TREATMENT STAFF REPORT AND RECOMMENDATIONS.
168.16     The commissioner of human services must, in consultation with the Board of Nursing,
168.17 Board of Behavioral Health and Therapy, and Board of Medical Practice, conduct a study
168.18 and develop recommendations to the legislature for amendments to Minnesota Statutes,
168.19 chapter 245G, that would eliminate any limitations on licensed health professionals' ability
168.20 to provide substance use disorder treatment services while practicing within their licensed
168.21 or statutory scopes of practice. The commissioner must submit a report on the study and
168.22 recommendations to the chairs and ranking minority members of the legislative committees
168.23 with jurisdiction over human services finance and policy by January 15, 2027.
168.24   Sec. 53. DIRECTION TO THE COMMISSIONER; SUBSTANCE USE DISORDER
168.25 TREATMENT BILLING UNITS.
168.26     The commissioner of human services must establish six new billing codes for
168.27 nonresidential substance use disorder individual and group counseling, individual and group
168.28 psychoeducation, and individual and group recovery support services. The commissioner
168.29 must identify reimbursement rates for the newly defined codes and update the substance
168.30 use disorder fee schedule. The new billing codes must correspond to a 15-minute unit and
168.31 become effective for services provided on or after July 1, 2026, or upon federal approval,
168.32 whichever is later.
  Article 4 Sec. 53.  168
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
169.1      EFFECTIVE DATE. This section is effective July 1, 2026, or upon federal approval,
169.2  whichever is later. The commissioner of human services must inform the revisor of statutes
169.3  when federal approval is obtained.
169.4    Sec. 54. REVISOR INSTRUCTION.
169.5      The revisor of statutes, in consultation with the House Research Department; the Office
169.6  of Senate Counsel, Research and Fiscal Analysis; and the Department of Human Services
169.7  shall make necessary cross-reference changes and remove statutory cross-references in
169.8  Minnesota Statutes to conform with the renumbering in this act. The revisor may make
169.9  technical and other necessary changes to sentence structure to preserve the meaning of the
169.10 text. The revisor may alter the coding in this act to incorporate statutory changes made by
169.11 other law in the 2025 regular legislative session or a special session. If a provision stricken
169.12 in this act is also amended in the 2025 regular legislative session or a special session by
169.13 other law, the revisor shall merge the amendment into the numbering, notwithstanding
169.14 Minnesota Statutes, section 645.30.
169.15   Sec. 55. REVISOR INSTRUCTION.
169.16     The revisor of statutes shall renumber each provision of Minnesota Statutes listed in
169.17 column A as amended in this act to the number listed in column B. The revisor shall also
169.18 make necessary cross-reference changes consistent with the renumbering.
169.19 Column A  Column B
169.20 254B.05, subdivision 1, paragraph (a)  254B.0501, subdivision 1
169.21 254B.05, subdivision 1, paragraph (i)  254B.0501, subdivision 2
169.22 254B.05, subdivision 4  254B.0501, subdivision 3
169.23 254B.05, subdivision 1, paragraph (b)  254B.0501, subdivision 4
169.24 254B.05, subdivision 1, paragraph (c)  254B.0501, subdivision 5
169.25 254B.05, subdivision 1, paragraph (d)  254B.0501, subdivision 6, paragraph (a)
169.26 254B.05, subdivision 1, paragraph (e)  254B.0501, subdivision 6, paragraph (b)
169.27 254B.05, subdivision 1, paragraph (f)  254B.0501, subdivision 6, paragraph (c)
169.28 254B.05, subdivision 1, paragraph (g)  254B.0501, subdivision 6, paragraph (d)
169.29 254B.05, subdivision 1, paragraph (h)  254B.0501, subdivision 7
169.30 254B.05, subdivision 1b  254B.0501, subdivision 8
169.31 254B.05, subdivision 2  254B.0501, subdivision 9
169.32 254B.05, subdivision 3  254B.0501, subdivision 10
169.33 254B.05, subdivision 1a, paragraph (a)  254B.0503, subdivision 1, paragraph (a)
169.34 254B.05, subdivision 1a, paragraph (c)  254B.0503, subdivision 1, paragraph (b)
  Article 4 Sec. 55.  169
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170.1  254B.05, subdivision 1a, paragraph (d)  254B.0503, subdivision 1, paragraph (c)
170.2  254B.05, subdivision 1a, paragraph (e)  254B.0503, subdivision 1, paragraph (d)
170.3  254B.05, subdivision1a, paragraph (b)  254B.0503, subdivision 2, paragraph (a)
170.4  254B.05, subdivision 1a, paragraph (e)  254B.0503, subdivision 2, paragraph (b)
170.5  254B.05, subdivision 5, paragraph (a)  254B.0505, subdivision 1
170.6  254B.05, subdivision 5, paragraph (c)  254B.0505, subdivision 2
170.7  254B.05, subdivision 5, paragraph (d)  254B.0505, subdivision 3
170.8  254B.05, subdivision 5, paragraph (e)  254B.0505, subdivision 4
170.9  254B.05, subdivision 5, paragraph (f)  254B.0505, subdivision 5
170.10 254B.05, subdivision 5, paragraph (g)  254B.0505, subdivision 6
170.11 254B.05, subdivision 5, paragraph (h)  254B.0505, subdivision 7
170.12 254B.05, subdivision 5, paragraph (i)  254B.0505, subdivision 8
170.13 254B.05, subdivision 5, paragraph (b), first 254B.0507, subdivision 1
170.14 sentence
170.15 254B.05, subdivision 5, paragraph (b), clause 254B.0507, subdivision 2, paragraph (a)
170.16 (1), items (i) and (ii)
170.17 254B.05, subdivision 5, paragraph (b), block 254B.0507, subdivision 2, paragraph (b)
170.18 left paragraph
170.19 254B.05, subdivision 5, paragraph (b), clause 254B.0507, subdivision 3
170.20 (2)
170.21 254B.05, subdivision 5, paragraph (b), clause 254B.0507, subdivision 4
170.22 (3)
170.23 254B.05, subdivision 5, paragraph (b), clause 254B.0507, subdivision 5
170.24 (4)
170.25 254B.05, subdivision 5, paragraph (b), clause 254B.0507, subdivision 6, paragraph (a)
170.26 (5)
170.27 254B.05, subdivision 5, paragraph (b), clause 254B.0507, subdivision 6, paragraph (b)
170.28 (5), block left paragraph
170.29 254B.05, subdivision 6, paragraph (a)  254B.0509, subdivision 1
170.30 254B.05, subdivision 6, paragraph (b)  254B.0509, subdivision 2
170.31 254B.05, subdivision 1, paragraph (j)  254B.052, subdivision 4
170.32 254B.05, subdivision 5, paragraph (j)  254B.052, subdivision 5
170.33   Sec. 56. REVISOR INSTRUCTION.
170.34     The revisor of statutes shall change the terms "mental health practitioner" and "mental
170.35 health practitioners" to "behavioral health practitioner" or "behavioral health practitioners"
170.36 wherever they appear in Minnesota Statutes, chapter 245I.
170.37   Sec. 57. REPEALER.
170.38     (a) Minnesota Statutes 2024, section 254B.01, subdivision 5, is repealed.
  Article 4 Sec. 57.  170
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171.1      (b) Minnesota Statutes 2024, section 254B.04, subdivision 2a, is repealed.
171.2      (c) Minnesota Statutes 2024, section 254B.181, is repealed.
171.3      (d) Minnesota Statutes 2024, sections 245G.01, subdivision 20d; and 245G.07,
171.4  subdivision 2, are repealed.
171.5      EFFECTIVE DATE. Paragraph (a) is effective July 1, 2026, paragraph (b) is effective
171.6  July 1, 2027, paragraph (c) is effective January 1, 2027, and paragraph (d) is effective July
171.7  1, 2026, or upon federal approval, whichever is later. The commissioner of human services
171.8  must notify the revisor of statutes when federal approval is obtained.
171.9ARTICLE 5
171.10DIRECT CARE AND TREATMENT
171.11   Section 1. Minnesota Statutes 2024, section 246.54, subdivision 1a, is amended to read:
171.12     Subd. 1a. Anoka-Metro Regional Treatment Center. (a) A county's payment of the
171.13 cost of care provided at Anoka-Metro Regional Treatment Center shall be according to the
171.14 following schedule:
171.15     (1) zero percent for the first 30 days;
171.16     (2) 20 percent for days 31 and over if the stay is determined to be clinically appropriate
171.17 for the client; and
171.18     (3) 100 percent for each day during the stay, including the day of admission, when the
171.19 facility determines that it is clinically appropriate for the client to be discharged.
171.20     (b) If payments received by the state under sections 246.50 to 246.53 exceed 80 percent
171.21 of the cost of care for days over 31 for clients who meet the criteria in paragraph (a), clause
171.22 (2), the county shall be responsible for paying the state only the remaining amount. The
171.23 county shall not be entitled to reimbursement from the client, the client's estate, or from the
171.24 client's relatives, except as provided in section 246.53.
171.25     (c) Between July 1, 2023, and March 31, 2025, the county is not responsible for the cost
171.26 of care under paragraph (a), clause (3), for a person who is committed as a person who has
171.27 a mental illness and is dangerous to the public under section 253B.18 and who is awaiting
171.28 transfer to another state-operated facility or program. This paragraph expires March 31,
171.29 2025.
  Article 5 Section 1.  171
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
172.1      (d) Between April 1, 2025, and June 30, 2025, The county is not responsible for the cost
172.2  of care under paragraph (a), clause (3), for a person who is civilly committed, if the client
172.3  is awaiting transfer:
172.4      (1) to a facility operated by the Department of Corrections; or
172.5      (2) to another state-operated facility or program, and the Direct Care and Treatment
172.6  executive medical director's office or a designee has determined that:
172.7      (i) the client meets criteria for admission to that state-operated facility or program; and
172.8      (ii) the state-operated facility or program is the only facility or program that can
172.9  reasonably serve the client. This paragraph expires June 30, 2025.
172.10     (e) (c) Notwithstanding any law to the contrary, the client is not responsible for payment
172.11 of the cost of care under this subdivision.
172.12     EFFECTIVE DATE. This section is effective July 1, 2025.
172.13   Sec. 2. Minnesota Statutes 2024, section 246.54, subdivision 1b, is amended to read:
172.14     Subd. 1b. Community behavioral health hospitals. (a) A county's payment of the cost
172.15 of care provided at state-operated community-based behavioral health hospitals for adults
172.16 and children shall be according to the following schedule:
172.17     (1) 100 percent for each day during the stay, including the day of admission, when the
172.18 facility determines that it is clinically appropriate for the client to be discharged; and.
172.19     (2) (b) The county shall not be entitled to reimbursement from the client, the client's
172.20 estate, or from the client's relatives, except as provided in section 246.53.
172.21     (b) Between July 1, 2023, and March 31, 2025, the county is not responsible for the cost
172.22 of care under paragraph (a), clause (1), for a person committed as a person who has a mental
172.23 illness and is dangerous to the public under section 253B.18 and who is awaiting transfer
172.24 to another state-operated facility or program. This paragraph expires March 31, 2025.
172.25     (c) Between April 1, 2025, and June 30, 2025, The county is not responsible for the cost
172.26 of care under paragraph (a), clause (1), for a person who is civilly committed, if the client
172.27 is awaiting transfer:
172.28     (1) to a facility operated by the Department of Corrections; or
172.29     (2) to another state-operated facility or program, and the Direct Care and Treatment
172.30 executive medical director's office or a designee has determined that:
172.31     (i) the client meets criteria for admission to that state-operated facility or program; and
  Article 5 Sec. 2.  172
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
173.1      (ii) the state-operated facility or program is the only facility or program that can
173.2  reasonably serve the client. This paragraph expires June 30, 2025.
173.3      (d) (c) Notwithstanding any law to the contrary, the client is not responsible for payment
173.4  of the cost of care under this subdivision.
173.5      EFFECTIVE DATE. This section is effective July 1, 2025.
173.6    Sec. 3. Minnesota Statutes 2024, section 246C.07, is amended by adding a subdivision to
173.7  read:
173.8      Subd. 9. Public notice of admission metrics. (a) By January 1, 2026, the Direct Care
173.9  and Treatment executive board must publish on the agency's website a publicly accessible
173.10 dashboard regarding referrals under section 253B.10, subdivision 1, paragraph (b).
173.11     (b) The dashboard required under paragraph (a) must include data on:
173.12     (1) how many individuals are on the wait lists;
173.13     (2) the length of the shortest, longest, and average wait times for admission to Direct
173.14 Care and Treatment facilities;
173.15     (3) the number of referrals, admissions, and wait lists and the length of time individuals
173.16 have spent on wait lists; and
173.17     (4) framework categories and referral sources.
173.18     (c) Any published data must be de-identified.
173.19     (d) Data on the dashboard is public data under section 13.03.
173.20     (e) The executive board must update the dashboard quarterly.
173.21     (f) The executive board must also include relevant admissions policies and contact
173.22 information for the Direct Care and Treatment central preadmissions office on the agency's
173.23 website.
173.24     (g) The executive board must provide information about an individual's relative placement
173.25 on the wait list to the individual or the individual's legal representative, consistent with
173.26 section 13.04. Information about the individual's relative placement on the wait list must
173.27 be designated as confidential under section 13.02, subdivision 3, if the information
173.28 jeopardizes the health or well-being of the individual.
  Article 5 Sec. 3.  173
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
174.1    Sec. 4. Minnesota Statutes 2024, section 253B.10, subdivision 1, as amended by Laws
174.2  2025, chapter 38, article 3, section 41, is amended to read:
174.3      Subdivision 1. Administrative requirements. (a) When a person is committed, the
174.4  court shall issue a warrant or an order committing the patient to the custody of the head of
174.5  the treatment facility, state-operated treatment program, or community-based treatment
174.6  program. The warrant or order shall state that the patient meets the statutory criteria for
174.7  civil commitment.
174.8      (b) The executive board shall prioritize civilly committed patients being admitted from
174.9  jail or a correctional institution or who are referred to a state-operated treatment facility for
174.10 competency attainment or a competency examination under sections 611.40 to 611.59 for
174.11 admission to a medically appropriate state-operated direct care and treatment bed based on
174.12 the decisions of physicians in the executive medical director's office, using a priority
174.13 admissions framework. The framework must account for a range of factors for priority
174.14 admission, including but not limited to:
174.15     (1) the length of time the person has been on a waiting list for admission to a
174.16 state-operated direct care and treatment program since the date of the order under paragraph
174.17 (a), or the date of an order issued under sections 611.40 to 611.59;
174.18     (2) the intensity of the treatment the person needs, based on medical acuity;
174.19     (3) the person's revoked provisional discharge status;
174.20     (4) the person's safety and safety of others in the person's current environment;
174.21     (5) whether the person has access to necessary or court-ordered treatment;
174.22     (6) distinct and articulable negative impacts of an admission delay on the facility referring
174.23 the individual for treatment; and
174.24     (7) any relevant federal prioritization requirements.
174.25 Patients described in this paragraph must be admitted to a state-operated treatment program
174.26 within the timelines specified in section 253B.1005. The commitment must be ordered by
174.27 the court as provided in section 253B.09, subdivision 1, paragraph (d). Patients committed
174.28 to a secure treatment facility or less restrictive setting as ordered by the court under section
174.29 253B.18, subdivisions 1 and 2, must be prioritized for admission to a state-operated treatment
174.30 program using the priority admissions framework in this paragraph.
174.31     (c) Upon the arrival of a patient at the designated treatment facility, state-operated
174.32 treatment program, or community-based treatment program, the head of the facility or
  Article 5 Sec. 4.  174
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
175.1  program shall retain the duplicate of the warrant and endorse receipt upon the original
175.2  warrant or acknowledge receipt of the order. The endorsed receipt or acknowledgment must
175.3  be filed in the court of commitment. After arrival, the patient shall be under the control and
175.4  custody of the head of the facility or program.
175.5      (d) Copies of the petition for commitment, the court's findings of fact and conclusions
175.6  of law, the court order committing the patient, the report of the court examiners, and the
175.7  prepetition report, and any medical and behavioral information available shall be provided
175.8  at the time of admission of a patient to the designated treatment facility or program to which
175.9  the patient is committed. Upon a patient's referral to the executive board for admission
175.10 pursuant to subdivision 1, paragraph (b), any inpatient hospital, treatment facility, jail, or
175.11 correctional facility that has provided care or supervision to the patient in the previous two
175.12 years shall, when requested by the treatment facility or executive board, provide copies of
175.13 the patient's medical and behavioral records to the executive board for purposes of
175.14 preadmission planning. This information shall be provided by the head of the treatment
175.15 facility to treatment facility staff in a consistent and timely manner and pursuant to all
175.16 applicable laws.
175.17     (e) Within four business days of determining which state-operated direct care and
175.18 treatment program or programs are appropriate for an individual, the executive medical
175.19 director's office director or a designee must notify the source of the referral and the
175.20 responsible county human services agency, the individual being ordered to direct care and
175.21 treatment, and the district court that issued the order of the determination. The initial notice
175.22 shall include which program or programs are appropriate for the person's priority status the
175.23 individual's relative priority status by quartile and contact information for the Direct Care
175.24 and Treatment central preadmissions office. Detailed information on factors impacting the
175.25 individual's priority status is available from the central preadmissions office upon request,
175.26 consistent with section 13.04. Any interested person or the individual being ordered to direct
175.27 care and treatment may provide additional information to or request updated priority status
175.28 about the individual to from the executive medical director's office director or a designee
175.29 while the individual is awaiting admission. Updated Priority status of information for an
175.30 individual will only be disclosed to interested persons who are legally authorized to receive
175.31 private information about the individual, including the designated agency and the facility
175.32 to which the individual is awaiting admission. Specific updated priority status information
175.33 may be withheld from the individual being ordered to direct care and treatment if, in the
175.34 judgment of the physicians in the executive medical director's office, the information will
175.35 jeopardize the individual's health or well-being. When an available bed has been identified,
  Article 5 Sec. 4.  175
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
176.1  the executive medical director's office or a designee must notify the designated agency and
176.2  the facility where the individual is awaiting admission that the individual has been accepted
176.3  for admission to a particular state-operated direct care and treatment program and the earliest
176.4  possible date the admission can occur. The designated agency or facility where the individual
176.5  is awaiting admission must transport the individual to the admitting state-operated direct
176.6  care and treatment program no more than 48 hours after the offered admission date.
176.7      (f) For any individual not admitted to a state-operated direct care and treatment program
176.8  within 60 business days after the initial notice under paragraph (e), the executive medical
176.9  director or a designee must provide additional notice to the responsible county human
176.10 services agency, the individual being ordered to direct care and treatment, and the district
176.11 court that issued the order of the determination. The additional notice must include updates
176.12 to the same information provided in the previous notice.
176.13     (g) When an available bed has been identified, the executive medical director or a
176.14 designee must notify the designated agency and the facility where the individual is awaiting
176.15 admission that the individual has been accepted for admission to a particular state-operated
176.16 direct care and treatment program and the earliest possible date the admission can occur.
176.17 The designated agency or facility where the individual is awaiting admission must transport
176.18 the individual to the admitting direct care and treatment program no more than 48 hours
176.19 after the offered admission date.
176.20   Sec. 5. Minnesota Statutes 2024, section 256G.08, subdivision 1, is amended to read:
176.21     Subdivision 1. Commitment and competency proceedings. In cases of voluntary
176.22 admission, or commitment to state or other institutions, or criminal orders for inpatient
176.23 examination or participation in a competency attainment program under chapter 611, the
176.24 committing county or the county from which the first criminal order for inpatient examination
176.25 or order for participation in a competency attainment program under chapter 611 is issued
176.26 shall initially pay for all costs. This includes the expenses of the taking into custody,
176.27 confinement, emergency holds under sections 253B.051, subdivisions 1 and 2, and 253B.07,
176.28 examination, commitment, conveyance to the place of detention, rehearing, and hearings
176.29 under section sections 253B.092 and 611.47, including hearings held under that section
176.30 which those sections that are venued outside the county of commitment or the county of
176.31 the chapter 611 competency proceedings order.
176.32     EFFECTIVE DATE. This section is effective July 1, 2025.
  Article 5 Sec. 5.  176
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
177.1    Sec. 6. Minnesota Statutes 2024, section 256G.08, subdivision 2, is amended to read:
177.2      Subd. 2. Responsibility for nonresidents. If a person committed, or voluntarily admitted
177.3  to a state institution, or ordered for inpatient examination or participation in a competency
177.4  attainment program under chapter 611 has no residence in this state, financial responsibility
177.5  belongs to the county of commitment or the county from which the first criminal order for
177.6  inpatient examination or order for participation in a competency attainment program under
177.7  chapter 611 was issued.
177.8      EFFECTIVE DATE. This section is effective July 1, 2025.
177.9    Sec. 7. Minnesota Statutes 2024, section 256G.09, subdivision 1, is amended to read:
177.10     Subdivision 1. General procedures. If upon investigation the local agency decides that
177.11 the application, or commitment, or first criminal order under chapter 611 was not filed in
177.12 the county of financial responsibility as defined by this chapter, but that the applicant is
177.13 otherwise eligible for assistance, it shall send a copy of the application, or commitment
177.14 claim, or chapter 611 claim together with the record of any investigation it has made, to the
177.15 county it believes is financially responsible. The copy and record must be sent within 60
177.16 days of the date the application was approved or the claim was paid. The first local agency
177.17 shall provide assistance to the applicant until financial responsibility is transferred under
177.18 this section.
177.19     The county receiving the transmittal has 30 days to accept or reject financial
177.20 responsibility. A failure to respond within 30 days establishes financial responsibility by
177.21 the receiving county.
177.22     EFFECTIVE DATE. This section is effective July 1, 2025.
177.23   Sec. 8. Minnesota Statutes 2024, section 256G.09, subdivision 2, as amended by Laws
177.24 2025, chapter 21, section 54, is amended to read:
177.25     Subd. 2. Financial disputes. (a) If the county receiving the transmittal does not believe
177.26 it is financially responsible, it should provide to the commissioner of human services and
177.27 the initially responsible county a statement of all facts and documents necessary for the
177.28 commissioner to make the requested determination of financial responsibility. The submission
177.29 must clearly state the program area in dispute and must state the specific basis upon which
177.30 the submitting county is denying financial responsibility.
177.31     (b) The initially responsible county then has 15 calendar days to submit its position and
177.32 any supporting evidence to the commissioner of human services. The absence of a submission
  Article 5 Sec. 8.  177
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
178.1  by the initially responsible county does not limit the right of the commissioner of human
178.2  services; the commissioner of children, youth, and families; or Direct Care and Treatment
178.3  executive board to issue a binding opinion based on the evidence actually submitted.
178.4      (c) A case must not be submitted until the local agency taking the application, or making
178.5  the commitment, or residing in the county from which the first criminal order under chapter
178.6  611 was issued has made an initial determination about eligibility and financial responsibility,
178.7  and services have been initiated. This paragraph does not prohibit the submission of closed
178.8  cases that otherwise meet the applicable statute of limitations.
178.9      EFFECTIVE DATE. This section is effective July 1, 2025.
178.10   Sec. 9. Minnesota Statutes 2024, section 611.43, is amended by adding a subdivision to
178.11 read:
178.12     Subd. 5. Costs related to confined treatment. (a) When a defendant is ordered to
178.13 participate in an examination in a treatment facility, a locked treatment facility, or a
178.14 state-operated treatment facility under subdivision 1, paragraph (b), the facility shall bill
178.15 the responsible health plan first. The county in which the criminal charges are filed is
178.16 responsible to pay any charges not covered by the health plan, including co-pays and
178.17 deductibles. If the defendant has health plan coverage and is confined in a hospital, but the
178.18 hospitalization does not meet the criteria in section 62M.07, subdivision 2, clause (1);
178.19 62Q.53; 62Q.535, subdivision 1; or 253B.045, subdivision 6, the county in which criminal
178.20 charges are filed is responsible for payment.
178.21     (b) The Direct Care and Treatment executive board shall determine the cost of
178.22 confinement in a state-operated treatment facility based on the executive board's
178.23 determination of cost of care pursuant to section 246.50, subdivision 5.
178.24   Sec. 10. Laws 2024, chapter 125, article 6, section 1, subdivision 7, is amended to read:
178.25     Subd. 7. Expiration. Subdivisions 1 to 3 expire June 30, 2027. Subdivision 4 expire
178.26 expires June 30, 2026. Subdivisions 5 and 6 expire upon submission by the Direct Care and
178.27 Treatment executive board of the report to the legislature required under subdivision 5.
178.28   Sec. 11. PRIORITY ADMISSIONS REVIEW PANEL.
178.29     Subdivision 1. Establishment. The Priority Admissions Review Panel is established.
178.30     Subd. 2. Membership; compensation. (a) The review panel consists of the following
178.31 members:
  Article 5 Sec. 11.  178
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
179.1      (1) one member appointed by the governor;
179.2      (2) the commissioner of human services, or a designee;
179.3      (3) one representative of Direct Care and Treatment, who has experience with civil
179.4  commitments, appointed by the Direct Care and Treatment executive medical director's
179.5  office;
179.6      (4) the ombudsman for mental health and developmental disabilities;
179.7      (5) one hospital representative, appointed by the Minnesota Hospital Association;
179.8      (6) one county representative, appointed by the Association of Minnesota Counties;
179.9      (7) one county social services representative, appointed by the Minnesota Association
179.10 of County Social Service Administrators;
179.11     (8) one member appointed by the Hennepin County Commitment Defense Project;
179.12     (9) one county attorney, appointed by the Minnesota County Attorneys Association;
179.13     (10) one county sheriff, appointed by the Minnesota Sheriffs' Association;
179.14     (11) one member appointed by the Minnesota Psychiatric Society;
179.15     (12) one member appointed by the Minnesota Association of Community Mental Health
179.16 Programs;
179.17     (13) one member appointed by the National Alliance on Mental Illness Minnesota;
179.18     (14) the Minnesota attorney general or a designee;
179.19     (15) three individuals from organizations representing racial and ethnic groups that are
179.20 overrepresented in the criminal justice system, appointed by the commissioner of corrections;
179.21     (16) one member of the public with lived experience directly related to the review panel's
179.22 purposes, appointed by the governor; and
179.23     (17) one member who has an active role as a union representative representing staff at
179.24 Direct Care and Treatment appointed by joint representatives of the American Federation
179.25 of State, County and Municipal Employees (AFSCME); Minnesota Association of
179.26 Professional Employees (MAPE); Minnesota Nurses Association (MNA); Middle
179.27 Management Association (MMA); and State Residential Schools Education Association
179.28 (SRSEA).
179.29     (b) Individuals currently serving as members of the Priority Admissions Review Panel
179.30 established under Laws 2024, chapter 125, article 4, section 7, may continue to serve as
  Article 5 Sec. 11.  179
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
180.1  members of the Priority Admissions Review Panel. Any new appointments must be made
180.2  no later than September 1, 2025.
180.3      (c) Member compensation and reimbursement for expenses are governed by Minnesota
180.4  Statutes, section 15.059, subdivision 3.
180.5      (d) A member of the legislature must not serve as a member of the Priority Admissions
180.6  Review Panel.
180.7      Subd. 3. Officers; meetings. (a) The attorney general and the commissioner of human
180.8  services or their designees must serve as co-chairs. The review panel may elect other officers
180.9  as necessary.
180.10     (b) Review panel meetings are subject to the Minnesota Open Meeting Law under
180.11 Minnesota Statutes, chapter 13D.
180.12     Subd. 4. Administrative support. Direct Care and Treatment must provide administrative
180.13 support and staff assistance for the review panel.
180.14     Subd. 5. Data usage and privacy. Any data provided by executive agencies as part of
180.15 the work and report of the review panel is subject to the requirements of the Minnesota
180.16 Government Data Practices Act under Minnesota Statutes, chapter 13, and all other applicable
180.17 data privacy laws.
180.18     Subd. 6. Duties. The panel must:
180.19     (1) evaluate the 48-hour timelines for priority admissions required under Minnesota
180.20 Statutes, section 253B.1005, and measure progress toward implementing the
180.21 recommendations of the Task Force on Priority Admissions to State-Operated Treatment
180.22 Programs;
180.23     (2) develop policy and legislative proposals related to the priority admissions timeline
180.24 that minimize litigation costs, maximize capacity in and access to direct care and treatment
180.25 programs, and address issues related to individuals awaiting admission to direct care and
180.26 treatment programs in jails and correctional institutions;
180.27     (3) evaluate existing mobile crisis programs and funding and make recommendations
180.28 to improve access to mobile crisis services in Minnesota;
180.29     (4) evaluate the county correctional facility long-acting injectable antipsychotic
180.30 medication pilot program established in Laws 2024, chapter 125, article 4, section 12, and
180.31 the Direct Care and Treatment county correctional facility support pilot program established
  Article 5 Sec. 11.  180
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181.1  in Laws 2024, chapter 125, article 8, section 2, subdivision 20, paragraph (c), and make
181.2  recommendations related to the continuation of the pilot programs;
181.3      (5) evaluate existing intensive residential treatment services and make recommendations
181.4  to improve access to intensive residential treatment services;
181.5      (6) study local fiscal impacts and provide evaluation support consistent with Minnesota
181.6  Statutes, section 16A.055, subdivision 1a, of the limited capacity in and access to
181.7  state-operated treatment programs, non-state-operated treatment programs, competency
181.8  evaluation services, and competency attainment services; and
181.9      (7) review quarterly data provided by the executive board to measure the impact of
181.10 changes, including:
181.11     (i) priority admission wait list data, including the time each individual spends on the
181.12 wait list;
181.13     (ii) data regarding engagement by the admissions team;
181.14     (iii) priority notice data; and
181.15     (iv) other similar data relating to admissions.
181.16     Subd. 7. Report. By February 1, 2026, the review panel must submit a written report
181.17 to the chairs and ranking minority members of the legislative committees with jurisdiction
181.18 over public safety and human services that includes the results of the panel's evaluations
181.19 and study, and any legislative proposals to carry out the recommendations developed under
181.20 subdivision 6.
181.21   Sec. 12. DIRECTION FOR LIMITED EXCEPTION FOR ADMISSIONS FROM
181.22 HOSPITAL SETTINGS.
181.23     (a) The commissioner of human services or a designee must immediately approve an
181.24 exception to add up to ten patients per fiscal year who have been civilly committed and are
181.25 in hospital settings to the admission wait list for medically appropriate direct care and
181.26 treatment beds under Minnesota Statutes, section 253B.10, subdivision 1, paragraph (b).
181.27     (b) The Direct Care and Treatment executive board is subject to the requirement under
181.28 paragraph (a) upon and after the transfer of duties on July 1, 2025, from the commissioner
181.29 of human services to the executive board under Minnesota Statutes, section 246C.04.
181.30     (c) This section expires June 30, 2027.
181.31     EFFECTIVE DATE. This section is effective the day following final enactment.
  Article 5 Sec. 12.  181
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182.1ARTICLE 6
182.2EIDBI REFORM
182.3    Section 1. [245A.142] EARLY INTENSIVE DEVELOPMENTAL AND
182.4  BEHAVIORAL INTERVENTION PROVISIONAL LICENSURE.
182.5      Subdivision 1. Definitions. The definitions in section 256B.0949, subdivision 2, apply
182.6  to this section.
182.7      Subd. 2. Regulatory powers. The commissioner shall regulate early intensive
182.8  developmental and behavioral intervention (EIDBI) agencies pursuant to this section.
182.9      Subd. 3. Provisional license. (a) Beginning January 1, 2026, the commissioner shall
182.10 begin issuing provisional licenses to agencies enrolled under chapter 256B to provide EIDBI
182.11 services.
182.12     (b) Agencies enrolled before July 1, 2025, have until May 31, 2026, to submit an
182.13 application for provisional licensure on the forms and in the manner prescribed by the
182.14 commissioner.
182.15     (c) Beginning June 1, 2026, an agency must not operate if it has not submitted an
182.16 application for provisional licensure under this section. The commissioner shall disenroll
182.17 an agency from providing EIDBI services under chapter 256B if the agency fails to submit
182.18 an application for provisional licensure by May 31, 2026.
182.19     (d) The commissioner must determine whether a provisional license applicant complies
182.20 with all applicable rules and laws and either issue a provisional license to the applicant or
182.21 deny the application by December 31, 2026.
182.22     (e) A provisional license is effective until comprehensive EIDBI agency licensure
182.23 standards are in effect unless the provisional license is suspended or revoked.
182.24     Subd. 4. Provisional license regulatory functions. The commissioner may:
182.25     (1) enter the physical premises of an agency and access the program without advance
182.26 notice in accordance with section 245A.04, subdivision 5;
182.27     (2) investigate reports of maltreatment;
182.28     (3) investigate complaints against EIDBI agencies;
182.29     (4) take action on a license pursuant to sections 245A.06 and 245A.07;
182.30     (5) deny an application for provisional licensure pursuant to section 245A.05; and
182.31     (6) take other action reasonably required to accomplish the purposes of this section.
  Article 6 Section 1.  182
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183.1      Subd. 5. Provisional license requirements. A provisional license holder must:
183.2      (1) identify all controlling individuals, as defined in section 245A.02, subdivision 5a,
183.3  of the agency;
183.4      (2) provide documented disclosures surrounding the use of billing agencies or other
183.5  consultants, available to the department upon request;
183.6      (3) establish provider policies and procedures related to staff training, staff qualifications,
183.7  quality assurance, and service activities;
183.8      (4) document contracts with independent contractors, including the number of hours
183.9  contracted and responsibilities, available to the department upon request; and
183.10     (5) comply with section 256B.0949, including exceptions to qualifications, standards,
183.11 and requirements granted by the commissioner under section 256B.0949, subdivision 17.
183.12     Subd. 6. Reconsideration requests and appeals. An applicant or provisional license
183.13 holder has reconsideration and appeal rights under sections 245A.05, 245A.06, and 245A.07.
183.14     Subd. 7. Disenrollment. The commissioner shall disenroll an agency from providing
183.15 EIDBI services under chapter 256B if:
183.16     (1) the agency's application has been denied or the agency's provisional license has been
183.17 suspended or revoked; and
183.18     (2) if the agency appealed the application denial or the provisional license suspension
183.19 or revocation, the commissioner has issued a final order on the appeal affirming the action.
183.20     EFFECTIVE DATE. This section is effective July 1, 2025.
183.21   Sec. 2. Minnesota Statutes 2024, section 245C.03, subdivision 15, is amended to read:
183.22     Subd. 15. Early intensive developmental and behavioral intervention providers. The
183.23 commissioner shall conduct background studies according to this chapter when initiated by
183.24 an on any individual who is an owner with at least a five percent ownership stake in, an
183.25 operator of, or an employee or volunteer who provides direct contact for early intensive
183.26 developmental and behavioral intervention provider services under section 256B.0949. For
183.27 the purposes of this subdivision, operator includes board members or other individuals who
183.28 oversee the billing, management, or policies of the services provided.
  Article 6 Sec. 2.  183
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184.1    Sec. 3. Minnesota Statutes 2024, section 245C.04, is amended by adding a subdivision to
184.2  read:
184.3      Subd. 12. Early intensive developmental and behavioral intervention
184.4  providers. Providers required to initiate background studies under section 245C.03,
184.5  subdivision 15, must initiate a study using the electronic system known as NETStudy 2.0
184.6  before the individual begins in a position allowing direct contact with persons served by
184.7  the provider or before the individual becomes an operator or acquires five percent or more
184.8  ownership.
184.9    Sec. 4. Minnesota Statutes 2024, section 245C.13, subdivision 2, is amended to read:
184.10     Subd. 2. Activities pending completion of background study. The subject of a
184.11 background study may not perform any activity requiring a background study under
184.12 paragraph (c) until the commissioner has issued one of the notices under paragraph (a).
184.13     (a) Notices from the commissioner required prior to activity under paragraph (c) include:
184.14     (1) a notice of the study results under section 245C.17 stating that:
184.15     (i) the individual is not disqualified; or
184.16     (ii) more time is needed to complete the study but the individual is not required to be
184.17 removed from direct contact or access to people receiving services prior to completion of
184.18 the study as provided under section 245C.17, subdivision 1, paragraph (b) or (c). The notice
184.19 that more time is needed to complete the study must also indicate whether the individual is
184.20 required to be under continuous direct supervision prior to completion of the background
184.21 study. When more time is necessary to complete a background study of an individual
184.22 affiliated with a Title IV-E eligible children's residential facility or foster residence setting,
184.23 the individual may not work in the facility or setting regardless of whether or not the
184.24 individual is supervised;
184.25     (2) a notice that a disqualification has been set aside under section 245C.23; or
184.26     (3) a notice that a variance has been granted related to the individual under section
184.27 245C.30.
184.28     (b) For a background study affiliated with a licensed child care center or certified
184.29 license-exempt child care center, the notice sent under paragraph (a), clause (1), item (ii),
184.30 must require the individual to be under continuous direct supervision prior to completion
184.31 of the background study except as permitted in subdivision 3.
184.32     (c) Activities prohibited prior to receipt of notice under paragraph (a) include:
  Article 6 Sec. 4.  184
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185.1(1) being issued a license;
185.2(2) living in the household where the licensed program will be provided;
185.3(3) providing direct contact services to persons served by a program unless the subject
185.4  is under continuous direct supervision;
185.5(4) having access to persons receiving services if the background study was completed
185.6  under section 144.057, subdivision 1, or 245C.03, subdivision 1, paragraph (a), clause (2),
185.7  (5), or (6), unless the subject is under continuous direct supervision;
185.8(5) for licensed child care centers and certified license-exempt child care centers,
185.9  providing direct contact services to persons served by the program;
185.10(6) for children's residential facilities or foster residence settings, working in the facility
185.11 or setting; or
185.12(7) for background studies affiliated with a personal care provider organization, except
185.13 as provided in section 245C.03, subdivision 3b, before a personal care assistant provides
185.14 services, the personal care assistance provider agency must initiate a background study of
185.15 the personal care assistant under this chapter and the personal care assistance provider
185.16 agency must have received a notice from the commissioner that the personal care assistant
185.17 is:
185.18(i) not disqualified under section 245C.14; or
185.19(ii) disqualified, but the personal care assistant has received a set aside of the
185.20 disqualification under section 245C.22.; or
185.21(8) for background studies affiliated with an early intensive developmental and behavioral
185.22 intervention provider, before an individual provides services, the early intensive
185.23 developmental and behavioral intervention provider must initiate a background study for
185.24 the individual under this chapter and the early intensive developmental and behavioral
185.25 intervention provider must have received a notice from the commissioner that the individual
185.26 is:
185.27(i) not disqualified under section 245C.14; or
185.28(ii) disqualified, but the individual has received a set-aside of the disqualification under
185.29 section 245C.22.
185.30EFFECTIVE DATE. This section is effective August 5, 2025.
  Article 6 Sec. 4.  185
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186.1    Sec. 5. Minnesota Statutes 2024, section 245C.16, subdivision 1, is amended to read:
186.2      Subdivision 1. Determining immediate risk of harm. (a) If the commissioner determines
186.3  that the individual studied has a disqualifying characteristic, the commissioner shall review
186.4  the information immediately available and make a determination as to the subject's immediate
186.5  risk of harm to persons served by the program where the individual studied will have direct
186.6  contact with, or access to, people receiving services.
186.7      (b) The commissioner shall consider all relevant information available, including the
186.8  following factors in determining the immediate risk of harm:
186.9      (1) the recency of the disqualifying characteristic;
186.10     (2) the recency of discharge from probation for the crimes;
186.11     (3) the number of disqualifying characteristics;
186.12     (4) the intrusiveness or violence of the disqualifying characteristic;
186.13     (5) the vulnerability of the victim involved in the disqualifying characteristic;
186.14     (6) the similarity of the victim to the persons served by the program where the individual
186.15 studied will have direct contact;
186.16     (7) whether the individual has a disqualification from a previous background study that
186.17 has not been set aside;
186.18     (8) if the individual has a disqualification which may not be set aside because it is a
186.19 permanent bar under section 245C.24, subdivision 1, or the individual is a child care
186.20 background study subject who has a felony-level conviction for a drug-related offense in
186.21 the last five years, the commissioner may order the immediate removal of the individual
186.22 from any position allowing direct contact with, or access to, persons receiving services from
186.23 the program and from working in a children's residential facility or foster residence setting;
186.24 and
186.25     (9) if the individual has a disqualification which may not be set aside because it is a
186.26 permanent bar under section 245C.24, subdivision 2, or the individual is a child care
186.27 background study subject who has a felony-level conviction for a drug-related offense during
186.28 the last five years, the commissioner may order the immediate removal of the individual
186.29 from any position allowing direct contact with or access to persons receiving services from
186.30 the center and from working in a licensed child care center or certified license-exempt child
186.31 care center.
  Article 6 Sec. 5.  186
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
187.1      (c) This section does not apply when the subject of a background study is regulated by
187.2  a health-related licensing board as defined in chapter 214, and the subject is determined to
187.3  be responsible for substantiated maltreatment under section 626.557 or chapter 260E.
187.4      (d) This section does not apply to a background study related to an initial application
187.5  for a child foster family setting license.
187.6      (e) Except for paragraph (f), this section does not apply to a background study that is
187.7  also subject to the requirements under section 256B.0659, subdivisions 11 and 13, for a
187.8  personal care assistant or a qualified professional as defined in section 256B.0659,
187.9  subdivision 1, or to a background study for an individual providing early intensive
187.10 developmental and behavioral intervention services under section 256B.0949.
187.11     (f) If the commissioner has reason to believe, based on arrest information or an active
187.12 maltreatment investigation, that an individual poses an imminent risk of harm to persons
187.13 receiving services, the commissioner may order that the person be continuously supervised
187.14 or immediately removed pending the conclusion of the maltreatment investigation or criminal
187.15 proceedings.
187.16     EFFECTIVE DATE. This section is effective January 1, 2026.
187.17   Sec. 6. Minnesota Statutes 2024, section 256B.04, subdivision 21, is amended to read:
187.18     Subd. 21. Provider enrollment. (a) The commissioner shall enroll providers and conduct
187.19 screening activities as required by Code of Federal Regulations, title 42, section 455, subpart
187.20 E. A provider must enroll each provider-controlled location where direct services are
187.21 provided. The commissioner may deny a provider's incomplete application if a provider
187.22 fails to respond to the commissioner's request for additional information within 60 days of
187.23 the request. The commissioner must conduct a background study under chapter 245C,
187.24 including a review of databases in section 245C.08, subdivision 1, paragraph (a), clauses
187.25 (1) to (5), for a provider described in this paragraph. The background study requirement
187.26 may be satisfied if the commissioner conducted a fingerprint-based background study on
187.27 the provider that includes a review of databases in section 245C.08, subdivision 1, paragraph
187.28 (a), clauses (1) to (5).
187.29     (b) The commissioner shall revalidate each:
187.30     (1) each provider under this subdivision at least once every five years; and
187.31     (2) each personal care assistance agency, CFSS provider-agency, and CFSS financial
187.32 management services provider under this subdivision at least once every three years.;
  Article 6 Sec. 6.  187
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
188.1      (3) each EIDBI agency under this subdivision at least once every three years; and
188.2      (4) at the commissioner's discretion, any medical-assistance-only provider type the
188.3  commissioner deems "high-risk" under this subdivision.
188.4      (c) The commissioner shall conduct revalidation as follows:
188.5      (1) provide 30-day notice of the revalidation due date including instructions for
188.6  revalidation and a list of materials the provider must submit;
188.7      (2) if a provider fails to submit all required materials by the due date, notify the provider
188.8  of the deficiency within 30 days after the due date and allow the provider an additional 30
188.9  days from the notification date to comply; and
188.10     (3) if a provider fails to remedy a deficiency within the 30-day time period, give 60-day
188.11 notice of termination and immediately suspend the provider's ability to bill. The provider
188.12 does not have the right to appeal suspension of ability to bill.
188.13     (d) If a provider fails to comply with any individual provider requirement or condition
188.14 of participation, the commissioner may suspend the provider's ability to bill until the provider
188.15 comes into compliance. The commissioner's decision to suspend the provider is not subject
188.16 to an administrative appeal.
188.17     (e) Correspondence and notifications, including notifications of termination and other
188.18 actions, may be delivered electronically to a provider's MN-ITS mailbox. This paragraph
188.19 does not apply to correspondences and notifications related to background studies.
188.20     (f) If the commissioner or the Centers for Medicare and Medicaid Services determines
188.21 that a provider is designated "high-risk," the commissioner may withhold payment from
188.22 providers within that category upon initial enrollment for a 90-day period. The withholding
188.23 for each provider must begin on the date of the first submission of a claim.
188.24     (g) An enrolled provider that is also licensed by the commissioner under chapter 245A,
188.25 is licensed as a home care provider by the Department of Health under chapter 144A, or is
188.26 licensed as an assisted living facility under chapter 144G and has a home and
188.27 community-based services designation on the home care license under section 144A.484,
188.28 must designate an individual as the entity's compliance officer. The compliance officer
188.29 must:
188.30     (1) develop policies and procedures to assure adherence to medical assistance laws and
188.31 regulations and to prevent inappropriate claims submissions;
  Article 6 Sec. 6.  188
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
189.1      (2) train the employees of the provider entity, and any agents or subcontractors of the
189.2  provider entity including billers, on the policies and procedures under clause (1);
189.3      (3) respond to allegations of improper conduct related to the provision or billing of
189.4  medical assistance services, and implement action to remediate any resulting problems;
189.5      (4) use evaluation techniques to monitor compliance with medical assistance laws and
189.6  regulations;
189.7      (5) promptly report to the commissioner any identified violations of medical assistance
189.8  laws or regulations; and
189.9      (6) within 60 days of discovery by the provider of a medical assistance reimbursement
189.10 overpayment, report the overpayment to the commissioner and make arrangements with
189.11 the commissioner for the commissioner's recovery of the overpayment.
189.12 The commissioner may require, as a condition of enrollment in medical assistance, that a
189.13 provider within a particular industry sector or category establish a compliance program that
189.14 contains the core elements established by the Centers for Medicare and Medicaid Services.
189.15     (h) The commissioner may revoke the enrollment of an ordering or rendering provider
189.16 for a period of not more than one year, if the provider fails to maintain and, upon request
189.17 from the commissioner, provide access to documentation relating to written orders or requests
189.18 for payment for durable medical equipment, certifications for home health services, or
189.19 referrals for other items or services written or ordered by such provider, when the
189.20 commissioner has identified a pattern of a lack of documentation. A pattern means a failure
189.21 to maintain documentation or provide access to documentation on more than one occasion.
189.22 Nothing in this paragraph limits the authority of the commissioner to sanction a provider
189.23 under the provisions of section 256B.064.
189.24     (i) The commissioner shall terminate or deny the enrollment of any individual or entity
189.25 if the individual or entity has been terminated from participation in Medicare or under the
189.26 Medicaid program or Children's Health Insurance Program of any other state. The
189.27 commissioner may exempt a rehabilitation agency from termination or denial that would
189.28 otherwise be required under this paragraph, if the agency:
189.29     (1) is unable to retain Medicare certification and enrollment solely due to a lack of billing
189.30 to the Medicare program;
189.31     (2) meets all other applicable Medicare certification requirements based on an on-site
189.32 review completed by the commissioner of health; and
189.33     (3) serves primarily a pediatric population.
  Article 6 Sec. 6.  189
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
190.1      (j) As a condition of enrollment in medical assistance, the commissioner shall require
190.2  that a provider designated "moderate" or "high-risk" by the Centers for Medicare and
190.3  Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid
190.4  Services, its agents, or its designated contractors and the state agency, its agents, or its
190.5  designated contractors to conduct unannounced on-site inspections of any provider location.
190.6  The commissioner shall publish in the Minnesota Health Care Program Provider Manual a
190.7  list of provider types designated "limited," "moderate," or "high-risk," based on the criteria
190.8  and standards used to designate Medicare providers in Code of Federal Regulations, title
190.9  42, section 424.518. The list and criteria are not subject to the requirements of chapter 14.
190.10 The commissioner's designations are not subject to administrative appeal.
190.11     (k) As a condition of enrollment in medical assistance, the commissioner shall require
190.12 that a high-risk provider, or a person with a direct or indirect ownership interest in the
190.13 provider of five percent or higher, consent to criminal background checks, including
190.14 fingerprinting, when required to do so under state law or by a determination by the
190.15 commissioner or the Centers for Medicare and Medicaid Services that a provider is designated
190.16 high-risk for fraud, waste, or abuse.
190.17     (l)(1) Upon initial enrollment, reenrollment, and notification of revalidation, all durable
190.18 medical equipment, prosthetics, orthotics, and supplies (DMEPOS) medical suppliers
190.19 meeting the durable medical equipment provider and supplier definition in clause (3),
190.20 operating in Minnesota and receiving Medicaid funds must purchase a surety bond that is
190.21 annually renewed and designates the Minnesota Department of Human Services as the
190.22 obligee, and must be submitted in a form approved by the commissioner. For purposes of
190.23 this clause, the following medical suppliers are not required to obtain a surety bond: a
190.24 federally qualified health center, a home health agency, the Indian Health Service, a
190.25 pharmacy, and a rural health clinic.
190.26     (2) At the time of initial enrollment or reenrollment, durable medical equipment providers
190.27 and suppliers defined in clause (3) must purchase a surety bond of $50,000. If a revalidating
190.28 provider's Medicaid revenue in the previous calendar year is up to and including $300,000,
190.29 the provider agency must purchase a surety bond of $50,000. If a revalidating provider's
190.30 Medicaid revenue in the previous calendar year is over $300,000, the provider agency must
190.31 purchase a surety bond of $100,000. The surety bond must allow for recovery of costs and
190.32 fees in pursuing a claim on the bond.
190.33     (3) "Durable medical equipment provider or supplier" means a medical supplier that can
190.34 purchase medical equipment or supplies for sale or rental to the general public and is able
  Article 6 Sec. 6.  190
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
191.1  to perform or arrange for necessary repairs to and maintenance of equipment offered for
191.2  sale or rental.
191.3      (m) The Department of Human Services may require a provider to purchase a surety
191.4  bond as a condition of initial enrollment, reenrollment, reinstatement, or continued enrollment
191.5  if: (1) the provider fails to demonstrate financial viability, (2) the department determines
191.6  there is significant evidence of or potential for fraud and abuse by the provider, or (3) the
191.7  provider or category of providers is designated high-risk pursuant to paragraph (f) and as
191.8  per Code of Federal Regulations, title 42, section 455.450. The surety bond must be in an
191.9  amount of $100,000 or ten percent of the provider's payments from Medicaid during the
191.10 immediately preceding 12 months, whichever is greater. The surety bond must name the
191.11 Department of Human Services as an obligee and must allow for recovery of costs and fees
191.12 in pursuing a claim on the bond. This paragraph does not apply if the provider currently
191.13 maintains a surety bond under the requirements in section 256B.0659 or 256B.85.
191.14     EFFECTIVE DATE. This section is effective July 1, 2025.
191.15   Sec. 7. Minnesota Statutes 2024, section 256B.0949, subdivision 2, is amended to read:
191.16     Subd. 2. Definitions. (a) The terms used in this section have the meanings given in this
191.17 subdivision.
191.18     (b) "Advanced certification" means a person who has completed advanced certification
191.19 in an approved modality under subdivision 13, paragraph (b).
191.20     (c) "Agency" means the legal entity that is enrolled with Minnesota health care programs
191.21 as a medical assistance provider according to Minnesota Rules, part 9505.0195, to provide
191.22 EIDBI services and that has the legal responsibility to ensure that its employees or contractors
191.23 carry out the responsibilities defined in this section. Agency includes a licensed individual
191.24 professional who practices independently and acts as an agency.
191.25     (d) "Autism spectrum disorder or a related condition" or "ASD or a related condition"
191.26 means either autism spectrum disorder (ASD) as defined in the current version of the
191.27 Diagnostic and Statistical Manual of Mental Disorders (DSM) or a condition that is found
191.28 to be closely related to ASD, as identified under the current version of the DSM, and meets
191.29 all of the following criteria:
191.30     (1) is severe and chronic;
191.31     (2) results in impairment of adaptive behavior and function similar to that of a person
191.32 with ASD;
  Article 6 Sec. 7.  191
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
192.1      (3) requires treatment or services similar to those required for a person with ASD; and
192.2      (4) results in substantial functional limitations in three core developmental deficits of
192.3  ASD: social or interpersonal interaction; functional communication, including nonverbal
192.4  or social communication; and restrictive or repetitive behaviors or hyperreactivity or
192.5  hyporeactivity to sensory input; and may include deficits or a high level of support in one
192.6  or more of the following domains:
192.7      (i) behavioral challenges and self-regulation;
192.8      (ii) cognition;
192.9      (iii) learning and play;
192.10     (iv) self-care; or
192.11     (v) safety.
192.12     (e) "Person" means a person under 21 years of age. "Behavior analyst" means an
192.13 individual licensed under sections 148.9981 to 148.9995 as a behavior analyst.
192.14     (f) "Clinical supervision" means the overall responsibility for the control and direction
192.15 of EIDBI service delivery, including individual treatment planning, staff supervision,
192.16 individual treatment plan progress monitoring, and treatment review for each person. Clinical
192.17 supervision is provided by a qualified supervising professional (QSP) who takes full
192.18 professional responsibility for the service provided by each supervisee and the clinical
192.19 effectiveness of all interventions.
192.20     (g) "Commissioner" means the commissioner of human services, unless otherwise
192.21 specified.
192.22     (h) "Comprehensive multidisciplinary evaluation" or "CMDE" means a comprehensive
192.23 evaluation of a person to determine medical necessity for EIDBI services based on the
192.24 requirements in subdivision 5.
192.25     (i) "Department" means the Department of Human Services, unless otherwise specified.
192.26     (j) "Early intensive developmental and behavioral intervention benefit" or "EIDBI
192.27 benefit" means a variety of individualized, intensive treatment modalities approved and
192.28 published by the commissioner that are based in behavioral and developmental science
192.29 consistent with best practices on effectiveness.
192.30     (k) "Employee of an agency" or "employee" means any individual who is employed
192.31 temporarily, part time, or full time by the agency that is submitting claims or billing for the
192.32 work, services, supervision, or treatment performed by the individual. Employee does not
  Article 6 Sec. 7.  192
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193.1  include an independent contractor, billing agency, or consultant who is not providing EIDBI
193.2  services. Employee does not include an individual who performs work, provides services,
193.3  supervises, or provides treatment for less than 80 hours in a 12-month period.
193.4      (k) (l) "Generalizable goals" means results or gains that are observed during a variety
193.5  of activities over time with different people, such as providers, family members, other adults,
193.6  and people, and in different environments including, but not limited to, clinics, homes,
193.7  schools, and the community.
193.8      (l) (m) "Incident" means when any of the following occur:
193.9      (1) an illness, accident, or injury that requires first aid treatment;
193.10     (2) a bump or blow to the head; or
193.11     (3) an unusual or unexpected event that jeopardizes the safety of a person or staff,
193.12 including a person leaving the agency unattended.
193.13     (m) (n) "Individual treatment plan" or "ITP" means the person-centered, individualized
193.14 written plan of care that integrates and coordinates person and family information from the
193.15 CMDE for a person who meets medical necessity for the EIDBI benefit. An individual
193.16 treatment plan must meet the standards in subdivision 6.
193.17     (n) (o) "Legal representative" means the parent of a child who is under 18 years of age,
193.18 a court-appointed guardian, or other representative with legal authority to make decisions
193.19 about service for a person. For the purpose of this subdivision, "other representative with
193.20 legal authority to make decisions" includes a health care agent or an attorney-in-fact
193.21 authorized through a health care directive or power of attorney.
193.22     (o) (p) "Mental health professional" means a staff person who is qualified according to
193.23 section 245I.04, subdivision 2.
193.24     (q) "Person" means an individual under 21 years of age.
193.25     (p) (r) "Person-centered" means a service that both responds to the identified needs,
193.26 interests, values, preferences, and desired outcomes of the person or the person's legal
193.27 representative and respects the person's history, dignity, and cultural background and allows
193.28 inclusion and participation in the person's community.
193.29     (q) (s) "Qualified EIDBI provider" means a person an individual who is a QSP or a level
193.30 I, level II, or level III treatment provider.
193.31     EFFECTIVE DATE. This section is effective the day following final enactment.
  Article 6 Sec. 7.  193
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
194.1    Sec. 8. Minnesota Statutes 2024, section 256B.0949, subdivision 13, is amended to read:
194.2      Subd. 13. Covered services. (a) The services described in paragraphs (b) to (l) are
194.3  eligible for reimbursement by medical assistance under this section. Services must be
194.4  provided by a qualified EIDBI provider and supervised by a QSP. An EIDBI service must
194.5  address the person's medically necessary treatment goals and must be targeted to develop,
194.6  enhance, or maintain the individual developmental skills of a person with ASD or a related
194.7  condition to improve functional communication, including nonverbal or social
194.8  communication, social or interpersonal interaction, restrictive or repetitive behaviors,
194.9  hyperreactivity or hyporeactivity to sensory input, behavioral challenges and self-regulation,
194.10 cognition, learning and play, self-care, and safety.
194.11     (b) EIDBI treatment must be delivered consistent with the standards of an approved
194.12 modality, as published by the commissioner. EIDBI modalities include:
194.13     (1) applied behavior analysis (ABA);
194.14     (2) developmental individual-difference relationship-based model (DIR/Floortime);
194.15     (3) early start Denver model (ESDM); or
194.16     (4) PLAY project;
194.17     (5) (4) relationship development intervention (RDI); or.
194.18     (6) additional modalities not listed in clauses (1) to (5) upon approval by the
194.19 commissioner.
194.20     (c) An EIDBI provider may use one or more of the EIDBI modalities in paragraph (b),
194.21 clauses (1) to (5) (4), as the primary modality for treatment as a covered service, or several
194.22 EIDBI modalities in combination as the primary modality of treatment, as approved by the
194.23 commissioner. An EIDBI provider that identifies and provides assurance of qualifications
194.24 for a single specific treatment modality, including an EIDBI provider with advanced
194.25 certification overseeing implementation, must document the required qualifications to meet
194.26 fidelity to the specific model in a manner determined by the commissioner.
194.27     (d) Each qualified EIDBI provider must identify and provide assurance of qualifications
194.28 for professional licensure certification, or training in evidence-based treatment methods,
194.29 and must document the required qualifications outlined in subdivision 15 in a manner
194.30 determined by the commissioner.
  Article 6 Sec. 8.  194
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
195.1      (e) CMDE is a comprehensive evaluation of the person's developmental status to
195.2  determine medical necessity for EIDBI services and meets the requirements of subdivision
195.3  5. The services must be provided by a qualified CMDE provider.
195.4      (f) EIDBI intervention observation and direction is the clinical direction and oversight
195.5  of EIDBI services by the QSP, level I treatment provider, or level II treatment provider,
195.6  including developmental and behavioral techniques, progress measurement, data collection,
195.7  function of behaviors, and generalization of acquired skills for the direct benefit of a person.
195.8  EIDBI intervention observation and direction informs any modification of the current
195.9  treatment protocol to support the outcomes outlined in the ITP.
195.10     (g) Intervention is medically necessary direct treatment provided to a person with ASD
195.11 or a related condition as outlined in their ITP. All intervention services must be provided
195.12 under the direction of a QSP. Intervention may take place across multiple settings. The
195.13 frequency and intensity of intervention services are provided based on the number of
195.14 treatment goals, person and family or caregiver preferences, and other factors. Intervention
195.15 services may be provided individually or in a group. Intervention with a higher provider
195.16 ratio may occur when deemed medically necessary through the person's ITP.
195.17     (1) Individual intervention is treatment by protocol administered by a single qualified
195.18 EIDBI provider delivered to one person.
195.19     (2) Group intervention is treatment by protocol provided by one or more qualified EIDBI
195.20 providers, delivered to at least two people who receive EIDBI services.
195.21     (3) Higher provider ratio intervention is treatment with protocol modification provided
195.22 by two or more qualified EIDBI providers delivered to one person in an environment that
195.23 meets the person's needs and under the direction of the QSP or level I provider.
195.24     (h) ITP development and ITP progress monitoring is development of the initial, annual,
195.25 and progress monitoring of an ITP. ITP development and ITP progress monitoring documents
195.26 provide oversight and ongoing evaluation of a person's treatment and progress on targeted
195.27 goals and objectives and integrate and coordinate the person's and the person's legal
195.28 representative's information from the CMDE and ITP progress monitoring. This service
195.29 must be reviewed and completed by the QSP, and may include input from a level I provider
195.30 or a level II provider.
195.31     (i) Family caregiver training and counseling is specialized training and education for a
195.32 family or primary caregiver to understand the person's developmental status and help with
195.33 the person's needs and development. This service must be provided by the QSP, level I
195.34 provider, or level II provider.
  Article 6 Sec. 8.  195
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
196.1      (j) A coordinated care conference is a voluntary meeting with the person and the person's
196.2  family to review the CMDE or ITP progress monitoring and to integrate and coordinate
196.3  services across providers and service-delivery systems to develop the ITP. This service may
196.4  include the CMDE provider, QSP, a level I provider, or a level II provider.
196.5      (k) Travel time is allowable billing for traveling to and from the person's home, school,
196.6  a community setting, or place of service outside of an EIDBI center, clinic, or office from
196.7  a specified location to provide in-person EIDBI intervention, observation and direction, or
196.8  family caregiver training and counseling. The person's ITP must specify the reasons the
196.9  provider must travel to the person.
196.10     (l) Medical assistance covers medically necessary EIDBI services and consultations
196.11 delivered via telehealth, as defined under section 256B.0625, subdivision 3b, in the same
196.12 manner as if the service or consultation was delivered in person.
196.13     EFFECTIVE DATE. This section is effective July 1, 2025.
196.14   Sec. 9. Minnesota Statutes 2024, section 256B.0949, subdivision 15, is amended to read:
196.15     Subd. 15. EIDBI provider qualifications. (a) A QSP must be employed by an agency
196.16 and be:
196.17     (1) either a licensed mental health professional who has or a licensed behavior analyst,
196.18 and have at least 2,000 hours of supervised clinical experience or training in examining or
196.19 treating people with ASD or a related condition or equivalent documented coursework at
196.20 the graduate level by an accredited university in ASD diagnostics, ASD developmental and
196.21 behavioral treatment strategies, and typical child development; or
196.22     (2) a developmental or behavioral pediatrician who has at least 2,000 hours of supervised
196.23 clinical experience or training in examining or treating people with ASD or a related condition
196.24 or equivalent documented coursework at the graduate level by an accredited university in
196.25 the areas of ASD diagnostics, ASD developmental and behavioral treatment strategies, and
196.26 typical child development.
196.27     (b) A level I treatment provider must be employed by an employee of an agency and:
196.28     (1) have at least 2,000 hours of supervised clinical experience or training in examining
196.29 or treating people with ASD or a related condition or equivalent documented coursework
196.30 at the graduate level by an accredited university in ASD diagnostics, ASD developmental
196.31 and behavioral treatment strategies, and typical child development or an equivalent
196.32 combination of documented coursework or hours of experience; and
  Article 6 Sec. 9.  196
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
197.1      (2) have or be at least meet one of the following requirements:
197.2      (i) have a master's degree in behavioral health or child development or related fields
197.3  including, but not limited to, mental health, special education, social work, psychology,
197.4  speech pathology, or occupational therapy from an accredited college or university;
197.5      (ii) have a bachelor's degree in a behavioral health, child development, or related field
197.6  including, but not limited to, mental health, special education, social work, psychology,
197.7  speech pathology, or occupational therapy, from an accredited college or university, and
197.8  advanced certification in a treatment modality recognized by the department;
197.9      (iii) be a board-certified behavior analyst as defined by the Behavior Analyst Certification
197.10 Board or a qualified behavior analyst as defined by the Qualified Applied Behavior Analysis
197.11 Credentialing Board; or
197.12     (iv) be a board-certified assistant behavior analyst with 4,000 hours of supervised clinical
197.13 experience that meets all registration, supervision, and continuing education requirements
197.14 of the certification.;
197.15     (v) have a bachelor's degree from an accredited college or university in behavioral health,
197.16 child development, or a related field; have at least 6,000 hours of clinical experience
197.17 providing early intervention services in the modality the EIDBI agency uses; and have
197.18 completed the EIDBI level III provider training requirements; or
197.19     (vi) be currently enrolled or have completed a master's degree program at an accredited
197.20 college or university in behavioral health, child development, or a related field and receive
197.21 intervention observation and direction from a qualified supervising professional at least
197.22 monthly until having completed 2,000 hours of supervised clinical experience.
197.23     (c) A level II treatment provider must be employed by an employee of an agency and
197.24 must be:
197.25     (1) a person who has a bachelor's degree from an accredited college or university in a
197.26 behavioral or child development science or related field including, but not limited to, mental
197.27 health, special education, social work, psychology, speech pathology, or occupational
197.28 therapy; and meets at least one of the following:
197.29     (i) has at least 1,000 hours of supervised clinical experience or training in examining or
197.30 treating people with ASD or a related condition or equivalent documented coursework at
197.31 the graduate level by an accredited university in ASD diagnostics, ASD developmental and
197.32 behavioral treatment strategies, and typical child development or a combination of
197.33 coursework or hours of experience;
  Article 6 Sec. 9.  197
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
198.1(ii) has certification as a board-certified assistant behavior analyst from the Behavior
198.2  Analyst Certification Board or a qualified autism service practitioner from the Qualified
198.3  Applied Behavior Analysis Credentialing Board;
198.4(iii) is a registered behavior technician as defined by the Behavior Analyst Certification
198.5  Board or an applied behavior analysis technician as defined by the Qualified Applied
198.6  Behavior Analysis Credentialing Board; or
198.7(iv) is certified in one of the other treatment modalities recognized by the department;
198.8  or
198.9(2) a person who has:
198.10(i) an associate's degree in a behavioral or child development science or related field
198.11 including, but not limited to, mental health, special education, social work, psychology,
198.12 speech pathology, or occupational therapy from an accredited college or university; and
198.13(ii) at least 2,000 hours of supervised clinical experience in delivering treatment to people
198.14 with ASD or a related condition. Hours worked as a mental health behavioral aide or level
198.15 III treatment provider may be included in the required hours of experience; or
198.16(3) a person who has at least 4,000 hours of supervised clinical experience in delivering
198.17 treatment to people with ASD or a related condition. Hours worked as a mental health
198.18 behavioral aide or level III treatment provider may be included in the required hours of
198.19 experience; or
198.20(4) a person who is a graduate student in a behavioral science, child development science,
198.21 or related field and is receiving clinical supervision by a QSP affiliated with an agency to
198.22 meet the clinical training requirements for experience and training with people with ASD
198.23 or a related condition; or
198.24(5) a person who is at least 18 years of age and who:
198.25(i) is fluent in a non-English language or is an individual certified by a Tribal Nation;
198.26(ii) completed the level III EIDBI training requirements; and
198.27(iii) receives observation and direction from a QSP or level I treatment provider at least
198.28 once a week until the person meets 1,000 hours of supervised clinical experience.;
198.29(6) a person currently enrolled in a bachelor's degree program at an accredited college
198.30 or university in behavioral health, child development, or a related field who receives
198.31 intervention observation and direction from a QSP or level I provider at least twice monthly
198.32 until having completed 1,000 hours of supervised clinical experience; or
  Article 6 Sec. 9.  198
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
199.1      (7) a person who is at least 18 years of age, holds a current certification in the treatment
199.2  modality of the EIDBI agency, receives intervention observation and direction from a
199.3  provider with an advance certification at least weekly until having completed 1,000 hours
199.4  of supervised clinical experience, and has completed the level III EIDBI training
199.5  requirements.
199.6      (d) A level III treatment provider must be employed by an employee of an agency, have
199.7  completed the level III training requirement, be at least 18 years of age, and have at least
199.8  one of the following:
199.9      (1) a high school diploma or commissioner of education-selected high school equivalency
199.10 certification;
199.11     (2) fluency in a non-English language or Tribal Nation certification;
199.12     (3) one year of experience as a primary personal care assistant, community health worker,
199.13 waiver service provider, or special education assistant to a person with ASD or a related
199.14 condition within the previous five years; or
199.15     (4) completion of all required EIDBI training within six months of employment.
199.16     EFFECTIVE DATE. This section is effective the day following final enactment.
199.17   Sec. 10. Minnesota Statutes 2024, section 256B.0949, subdivision 15, is amended to read:
199.18     Subd. 15. EIDBI provider qualifications. (a) A QSP must be employed by an employee
199.19 of an agency and be:
199.20     (1) a licensed mental health professional who has at least 2,000 hours of supervised
199.21 clinical experience or training in examining or treating people with ASD or a related condition
199.22 or equivalent documented coursework at the graduate level by an accredited university in
199.23 ASD diagnostics, ASD developmental and behavioral treatment strategies, and typical child
199.24 development; or
199.25     (2) a developmental or behavioral pediatrician who has at least 2,000 hours of supervised
199.26 clinical experience or training in examining or treating people with ASD or a related condition
199.27 or equivalent documented coursework at the graduate level by an accredited university in
199.28 the areas of ASD diagnostics, ASD developmental and behavioral treatment strategies, and
199.29 typical child development.
199.30     (b) A level I treatment provider must be employed by an agency and:
199.31     (1) have at least 2,000 hours of supervised clinical experience or training in examining
199.32 or treating people with ASD or a related condition or equivalent documented coursework
  Article 6 Sec. 10.  199
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
200.1  at the graduate level by an accredited university in ASD diagnostics, ASD developmental
200.2  and behavioral treatment strategies, and typical child development or an equivalent
200.3  combination of documented coursework or hours of experience; and
200.4      (2) have or be at least one of the following:
200.5      (i) a master's degree in behavioral health or child development or related fields including,
200.6  but not limited to, mental health, special education, social work, psychology, speech
200.7  pathology, or occupational therapy from an accredited college or university;
200.8      (ii) a bachelor's degree in a behavioral health, child development, or related field
200.9  including, but not limited to, mental health, special education, social work, psychology,
200.10 speech pathology, or occupational therapy, from an accredited college or university, and
200.11 advanced certification in a treatment modality recognized by the department;
200.12     (iii) a board-certified behavior analyst as defined by the Behavior Analyst Certification
200.13 Board or a qualified behavior analyst as defined by the Qualified Applied Behavior Analysis
200.14 Credentialing Board; or
200.15     (iv) a board-certified assistant behavior analyst with 4,000 hours of supervised clinical
200.16 experience that meets all registration, supervision, and continuing education requirements
200.17 of the certification.
200.18     (c) A level II treatment provider must be employed by an agency and must be:
200.19     (1) a person who has a bachelor's degree from an accredited college or university in a
200.20 behavioral or child development science or related field including, but not limited to, mental
200.21 health, special education, social work, psychology, speech pathology, or occupational
200.22 therapy; and meets at least one of the following:
200.23     (i) has at least 1,000 hours of supervised clinical experience or training in examining or
200.24 treating people with ASD or a related condition or equivalent documented coursework at
200.25 the graduate level by an accredited university in ASD diagnostics, ASD developmental and
200.26 behavioral treatment strategies, and typical child development or a combination of
200.27 coursework or hours of experience;
200.28     (ii) has certification as a board-certified assistant behavior analyst from the Behavior
200.29 Analyst Certification Board or a qualified autism service practitioner from the Qualified
200.30 Applied Behavior Analysis Credentialing Board;
200.31     (iii) is a registered behavior technician as defined by the Behavior Analyst Certification
200.32 Board or an applied behavior analysis technician as defined by the Qualified Applied
200.33 Behavior Analysis Credentialing Board; or
  Article 6 Sec. 10.  200
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
201.1(iv) is certified in one of the other treatment modalities recognized by the department;
201.2  or
201.3(2) a person who has:
201.4(i) an associate's degree in a behavioral or child development science or related field
201.5  including, but not limited to, mental health, special education, social work, psychology,
201.6  speech pathology, or occupational therapy from an accredited college or university; and
201.7(ii) at least 2,000 hours of supervised clinical experience in delivering treatment to people
201.8  with ASD or a related condition. Hours worked as a mental health behavioral aide or level
201.9  III treatment provider may be included in the required hours of experience; or
201.10(3) a person who has at least 4,000 hours of supervised clinical experience in delivering
201.11 treatment to people with ASD or a related condition. Hours worked as a mental health
201.12 behavioral aide or level III treatment provider may be included in the required hours of
201.13 experience; or
201.14(4) a person who is a graduate student in a behavioral science, child development science,
201.15 or related field and is receiving clinical supervision by a QSP affiliated with an agency to
201.16 meet the clinical training requirements for experience and training with people with ASD
201.17 or a related condition; or
201.18(5) a person who is at least 18 years of age and who:
201.19(i) is fluent in a non-English language or is an individual certified by a Tribal Nation;
201.20(ii) completed the level III EIDBI training requirements; and
201.21(iii) receives observation and direction from a QSP or level I treatment provider at least
201.22 once a week until the person meets 1,000 hours of supervised clinical experience.
201.23(d) A level III treatment provider must be employed by an agency, have completed the
201.24 level III training requirement, be at least 18 years of age, and have at least one of the
201.25 following:
201.26(1) a high school diploma or commissioner of education-selected high school equivalency
201.27 certification;
201.28(2) fluency in a non-English language or Tribal Nation certification;
201.29(3) one year of experience as a primary personal care assistant, community health worker,
201.30 waiver service provider, or special education assistant to a person with ASD or a related
201.31 condition within the previous five years; or
  Article 6 Sec. 10.  201
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
202.1      (4) completion of all required EIDBI training within six months of employment.
202.2      EFFECTIVE DATE. This section is effective January 1, 2026.
202.3    Sec. 11. Minnesota Statutes 2024, section 256B.0949, subdivision 16, is amended to read:
202.4      Subd. 16. Agency duties. (a) An agency delivering an EIDBI service under this section
202.5  must:
202.6      (1) enroll as a medical assistance Minnesota health care program provider according to
202.7  Minnesota Rules, part 9505.0195, and section 256B.04, subdivision 21, and meet all
202.8  applicable provider standards and requirements;
202.9      (2) designate an individual as the agency's compliance officer who must perform the
202.10 duties described in section 256B.04, subdivision 21, paragraph (g);
202.11     (3) demonstrate compliance with federal and state laws for the delivery of and billing
202.12 for EIDBI service;
202.13     (3) (4) verify and maintain records of a service provided to the person or the person's
202.14 legal representative as required under Minnesota Rules, parts 9505.2175 and 9505.2197;
202.15     (4) (5) demonstrate that while enrolled or seeking enrollment as a Minnesota health care
202.16 program provider the agency did not have a lead agency contract or provider agreement
202.17 discontinued because of a conviction of fraud; or did not have an owner, board member, or
202.18 manager fail a state or federal criminal background check or appear on the list of excluded
202.19 individuals or entities maintained by the federal Department of Human Services Office of
202.20 Inspector General;
202.21     (5) (6) have established business practices including written policies and procedures,
202.22 internal controls, and a system that demonstrates the organization's ability to deliver quality
202.23 EIDBI services, appropriately submit claims, conduct required staff training, document staff
202.24 qualifications, document service activities, and document service quality;
202.25     (6) (7) have an office located in Minnesota or a border state;
202.26     (7) conduct a criminal background check on an individual who has direct contact with
202.27 the person or the person's legal representative;
202.28     (8) initiate a background study as required under subdivision 16a;
202.29     (8) (9) report maltreatment according to section 626.557 and chapter 260E;
202.30     (9) (10) comply with any data requests consistent with the Minnesota Government Data
202.31 Practices Act, sections 256B.064 and 256B.27;
  Article 6 Sec. 11.  202
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
203.1      (10) (11) provide training for all agency staff on the requirements and responsibilities
203.2  listed in the Maltreatment of Minors Act, chapter 260E, and the Vulnerable Adult Protection
203.3  Act, section 626.557, including mandated and voluntary reporting, nonretaliation, and the
203.4  agency's policy for all staff on how to report suspected abuse and neglect;
203.5      (11) (12) have a written policy to resolve issues collaboratively with the person and the
203.6  person's legal representative when possible. The policy must include a timeline for when
203.7  the person and the person's legal representative will be notified about issues that arise in
203.8  the provision of services;
203.9      (12) (13) provide the person's legal representative with prompt notification if the person
203.10 is injured while being served by the agency. An incident report must be completed by the
203.11 agency staff member in charge of the person. A copy of all incident and injury reports must
203.12 remain on file at the agency for at least five years from the report of the incident; and
203.13     (13) (14) before starting a service, provide the person or the person's legal representative
203.14 a description of the treatment modality that the person shall receive, including the staffing
203.15 certification levels and training of the staff who shall provide a treatment.;
203.16     (15) provide clinical supervision for a minimum of one hour for every 16 hours of direct
203.17 treatment per person, unless otherwise authorized in the person's individual treatment plan;
203.18 and
203.19     (16) provide required EIDBI intervention observation and direction at least once per
203.20 month. Notwithstanding subdivision 13, paragraph (l), required EIDBI intervention
203.21 observation and direction under this clause may be conducted via telehealth provided that
203.22 no more than two consecutive monthly required EIDBI intervention observation and direction
203.23 sessions under this clause are conducted via telehealth.
203.24     (b) Upon request of the commissioner, an agency delivering services under this section
203.25 must:
203.26     (1) identify the agency's controlling individuals, as defined under section 245A.02,
203.27 subdivision 5a;
203.28     (2) provide disclosures of the use of billing agencies and other consultants who do not
203.29 provide EIDBI services; and
203.30     (3) provide copies of any contracts with consultants or independent contractors who do
203.31 not provide EIDBI services, including hours contracted and responsibilities.
203.32     (b) (c) When delivering the ITP, and annually thereafter, an agency must provide the
203.33 person or the person's legal representative with:
  Article 6 Sec. 11.  203
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
204.1      (1) a written copy and a verbal explanation of the person's or person's legal
204.2  representative's rights and the agency's responsibilities;
204.3      (2) documentation in the person's file the date that the person or the person's legal
204.4  representative received a copy and explanation of the person's or person's legal
204.5  representative's rights and the agency's responsibilities; and
204.6      (3) reasonable accommodations to provide the information in another format or language
204.7  as needed to facilitate understanding of the person's or person's legal representative's rights
204.8  and the agency's responsibilities.
204.9      EFFECTIVE DATE. This section is effective January 1, 2026.
204.10   Sec. 12. Minnesota Statutes 2024, section 256B.0949, subdivision 16a, is amended to
204.11 read:
204.12     Subd. 16a. Background studies. (a) An early intensive developmental and behavioral
204.13 intervention services agency must fulfill any background studies requirements under this
204.14 section by initiating a background study through the commissioner's NETStudy 2.0 system
204.15 as provided under sections 245C.03, subdivision 15, and 245C.10, subdivision 17 chapter
204.16 245C and must maintain documentation of background study requests and results.
204.17     (b) Before an individual subject to the background study requirements under this
204.18 subdivision has direct contact with a person served by the provider, the agency must have
204.19 received a notice from the commissioner that the subject of the background study is:
204.20     (1) not disqualified under section 245C.14; or
204.21     (2) disqualified but the subject of the study has received a set-aside of the disqualification
204.22 under section 245C.22.
204.23     EFFECTIVE DATE. This section is effective January 1, 2026.
204.24   Sec. 13. Minnesota Statutes 2024, section 256B.0949, is amended by adding a subdivision
204.25 to read:
204.26     Subd. 18. Site visits and sanctions. (a) The commissioner may conduct unannounced
204.27 on-site inspections of any and all EIDBI agencies and service locations to verify that
204.28 information submitted to the commissioner is accurate, determine compliance with all
204.29 enrollment requirements, investigate reports of maltreatment, determine compliance with
204.30 service delivery and billing requirements, and determine compliance with any other applicable
204.31 laws or rules.
  Article 6 Sec. 13.  204
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
205.1      (b) The commissioner may withhold payment from an agency or suspend or terminate
205.2  the agency's enrollment number if the agency fails to provide access to the agency's service
205.3  locations or records or the commissioner determines the agency has failed to comply fully
205.4  with applicable laws or rules. The provider has the right to appeal the decision of the
205.5  commissioner under section 256B.064.
205.6      EFFECTIVE DATE. This section is effective July 1, 2025.
205.7    Sec. 14. Minnesota Statutes 2024, section 260E.14, subdivision 1, as amended by Laws
205.8  2025, chapter 20, section 221, is amended to read:
205.9      Subdivision 1. Facilities and schools. (a) The local welfare agency is the agency
205.10 responsible for investigating allegations of maltreatment in child foster care, family child
205.11 care, legally nonlicensed child care, and reports involving children served by an unlicensed
205.12 personal care provider organization under section 256B.0659. Copies of findings related to
205.13 personal care provider organizations under section 256B.0659 must be forwarded to the
205.14 Department of Human Services provider enrollment.
205.15     (b) The Department of Human Services is the agency responsible for screening and
205.16 investigating allegations of maltreatment in juvenile correctional facilities listed under
205.17 section 241.021 located in the local welfare agency's county and in facilities licensed or
205.18 certified under chapters 245A and 245D.
205.19     (c) The Department of Health is the agency responsible for screening and investigating
205.20 allegations of maltreatment in facilities licensed under sections 144.50 to 144.58 and 144A.43
205.21 to 144A.482 or chapter 144H.
205.22     (d) The Department of Education is the agency responsible for screening and investigating
205.23 allegations of maltreatment in a school as defined in section 120A.05, subdivisions 9, 11,
205.24 and 13, and chapter 124E. The Department of Education's responsibility to screen and
205.25 investigate includes allegations of maltreatment involving students 18 through 21 years of
205.26 age, including students receiving special education services, up to and including graduation
205.27 and the issuance of a secondary or high school diploma.
205.28     (e) The Department of Human Services is the agency responsible for screening and
205.29 investigating allegations of maltreatment of minors in an EIDBI agency operating under
205.30 sections 245A.142 and 256B.0949.
205.31     (e) (f) A health or corrections agency receiving a report may request the local welfare
205.32 agency to provide assistance pursuant to this section and sections 260E.20 and 260E.22.
  Article 6 Sec. 14.  205
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
206.1      (f) (g) The Department of Children, Youth, and Families is the agency responsible for
206.2  screening and investigating allegations of maltreatment in facilities or programs not listed
206.3  in paragraph (a) that are licensed or certified under chapters 142B and 142C.
206.4      EFFECTIVE DATE. This section is effective July 1, 2025.
206.5    Sec. 15. Minnesota Statutes 2024, section 626.5572, subdivision 13, is amended to read:
206.6      Subd. 13. Lead investigative agency. "Lead investigative agency" is the primary
206.7  administrative agency responsible for investigating reports made under section 626.557.
206.8      (a) The Department of Health is the lead investigative agency for facilities or services
206.9  licensed or required to be licensed as hospitals, home care providers, nursing homes, boarding
206.10 care homes, hospice providers, residential facilities that are also federally certified as
206.11 intermediate care facilities that serve people with developmental disabilities, or any other
206.12 facility or service not listed in this subdivision that is licensed or required to be licensed by
206.13 the Department of Health for the care of vulnerable adults. "Home care provider" has the
206.14 meaning provided in section 144A.43, subdivision 4, and applies when care or services are
206.15 delivered in the vulnerable adult's home.
206.16     (b) The Department of Human Services is the lead investigative agency for facilities or
206.17 services licensed or required to be licensed as adult day care, adult foster care, community
206.18 residential settings, programs for people with disabilities, EIDBI agencies, family adult day
206.19 services, mental health programs, mental health clinics, substance use disorder programs,
206.20 the Minnesota Sex Offender Program, or any other facility or service not listed in this
206.21 subdivision that is licensed or required to be licensed by the Department of Human Services.
206.22 The Department of Human Services is also the lead investigative agency for unlicensed
206.23 EIDBI agencies under section 256B.0949.
206.24     (c) The county social service agency or its designee is the lead investigative agency for
206.25 all other reports, including, but not limited to, reports involving vulnerable adults receiving
206.26 services from a personal care provider organization under section 256B.0659.
206.27     EFFECTIVE DATE. This section is effective July 1, 2025.
206.28   Sec. 16. DIRECTION TO THE COMMISSIONER OF HUMAN SERVICES;
206.29 DEVELOPMENT OF COMPREHENSIVE EIDBI LICENSE.
206.30     (a) By January 1, 2026, the commissioner of human services must collaborate with the
206.31 Early Intensive Developmental and Behavioral Advisory Council to develop comprehensive
206.32 EIDBI licensing standards and a plan to transition EIDBI agencies from the provisional
  Article 6 Sec. 16.  206
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
207.1  license established under Minnesota Statutes, section 245A.142, to a newly established
207.2  comprehensive EIDBI license. The advisory council must provide the commissioner with
207.3  advice on at least the following topics:
207.4      (1) basic health and safety standards;
207.5      (2) basic physical plant standards;
207.6      (3) medication management and other ancillary services that might be provided by EIDBI
207.7  providers;
207.8      (4) privacy and the use of cameras in settings where EIDBI services are being provided;
207.9      (5) third-party billing procedures and requirements;
207.10     (6) billing standards and policies regarding duplicative, simultaneous, and midpoint
207.11 billing practices;
207.12     (7) measures of clinical effectiveness;
207.13     (8) appropriate restrictions on the commissioner's authority under Minnesota Statutes,
207.14 section 256B.0949, subdivision 17, to issue exceptions to EIDBI provider qualifications,
207.15 medical assistance provider enrollment requirements, and EIDBI provider or agency standards
207.16 or requirements; and
207.17     (9) the continuation or modification of existing exceptions under Minnesota Statutes,
207.18 section 256B.0949, subdivision 17.
207.19     (b) By January 1, 2027, the commissioner must propose standards for a nonprovisional,
207.20 comprehensive EIDBI license or licenses and submit proposed draft legislation to the chairs
207.21 and ranking minority members of the legislative committees with jurisdiction over EIDBI
207.22 services.
207.23   Sec. 17. DIRECTION TO THE COMMISSIONER OF HUMAN SERVICES;
207.24 TEMPORARY MORATORIUM ON ENROLLMENT OF NEW EIDBI PROVIDERS.
207.25     Upon federal approval and subject to continued federal approval, beginning July 1, 2025,
207.26 the commissioner of human services must not enroll new EIDBI agencies to provide EIDBI
207.27 services under Minnesota Statutes, chapter 256B, unless the agency is licensed as an EIDBI
207.28 agency under Minnesota Statutes, chapter 245A, but may enroll new locations where EIDBI
207.29 services are provided by an agency that was enrolled before July 1, 2025.
207.30     EFFECTIVE DATE. This section is effective July 1, 2025.
  Article 6 Sec. 17.  207
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
208.1    Sec. 18. EXISTING EIDBI EXCEPTIONS.
208.2      Exceptions to the requirements of Minnesota Statutes, section 256B.0949, authorized
208.3  under Minnesota Statutes, section 256B.0949, subdivision 17, in effect on June 30, 2025,
208.4  must remain in effect until full implementation of a new comprehensive EIDBI license
208.5  under Minnesota Statutes, chapter 245A.
208.6    Sec. 19. REPEALER.
208.7      Minnesota Statutes 2024, section 256B.0949, subdivision 9, is repealed.
208.8      EFFECTIVE DATE. This section is effective July 1, 2025.
208.9ARTICLE 7
208.10HOMELESSNESS, HOUSING, AND SUPPORT SERVICES
208.11   Section 1. Minnesota Statutes 2024, section 245C.03, subdivision 6, is amended to read:
208.12     Subd. 6. Unlicensed home and community-based waiver providers of service to
208.13 seniors and individuals with disabilities and providers of housing stabilization
208.14 services. (a) The commissioner shall conduct background studies of any individual who
208.15 provides direct contact, as defined in section 245C.02, subdivision 11, For providers of
208.16 services specified in the federally approved home and community-based waiver plans under
208.17 section 256B.4912 and providers of housing stabilization services under section 256B.051,
208.18 the commissioner shall conduct background studies on any individual who is an owner with
208.19 at least a five percent ownership stake in the provider, an operator of the provider, or an
208.20 employee or volunteer for the provider who has direct contact with people receiving the
208.21 services. The individual studied must meet the requirements of this chapter prior to providing
208.22 waiver services and as part of ongoing enrollment.
208.23     (b) The requirements in paragraph (a) apply to consumer-directed community supports
208.24 under section 256B.4911.
208.25     (c) For purposes of this section, "operator" includes but is not limited to a managerial
208.26 officer who oversees the billing, management, or policies of the services provided.
208.27   Sec. 2. Minnesota Statutes 2024, section 245C.03, is amended by adding a subdivision to
208.28 read:
208.29     Subd. 16. Providers of recuperative care. The commissioner shall conduct background
208.30 studies on any individual who is an owner with an ownership stake of at least five percent
208.31 in a recuperative care provider, an operator of a recuperative care provider, or an employee
  Article 7 Sec. 2.  208
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
209.1  or volunteer who has direct contact with people receiving recuperative care services under
209.2  section 256B.0701.
209.3EFFECTIVE DATE. This section is effective upon implementation in NETStudy 2.0
209.4  or January 13, 2026, whichever is later. The commissioner of human services shall notify
209.5  the revisor of statutes when the commissioner implements the changes in NETStudy 2.0.
209.6    Sec. 3. Minnesota Statutes 2024, section 245C.04, subdivision 6, is amended to read:
209.7Subd. 6. Unlicensed home and community-based waiver providers of service to
209.8  seniors and individuals with disabilities and providers of housing stabilization
209.9  services. (a) Providers required to initiate background studies under section 256B.4912
209.10 245C.03, subdivision 6, must initiate a study using the electronic system known as NETStudy
209.11 2.0 before the individual begins in a position allowing direct contact with persons served
209.12 by the provider. New providers must initiate a study under this subdivision before initial
209.13 enrollment if the provider has not already initiated background studies as part of the service
209.14 licensure requirements.
209.15(b) Except as provided in paragraphs (c) and (d), the providers must initiate a background
209.16 study annually of an individual required to be studied under section 245C.03, subdivision
209.17 6.
209.18(c) After an initial background study under this subdivision is initiated on an individual
209.19 by a provider of both services licensed by the commissioner and the unlicensed services
209.20 under this subdivision, a repeat annual background study is not required if:
209.21(1) the provider maintains compliance with the requirements of section 245C.07,
209.22 paragraph (a), regarding one individual with one address and telephone number as the person
209.23 to receive sensitive background study information for the multiple programs that depend
209.24 on the same background study, and that the individual who is designated to receive the
209.25 sensitive background information is capable of determining, upon the request of the
209.26 commissioner, whether a background study subject is providing direct contact services in
209.27 one or more of the provider's programs or services and, if so, at which location or locations;
209.28 and
209.29(2) the individual who is the subject of the background study provides direct contact
209.30 services under the provider's licensed program for at least 40 hours per year so the individual
209.31 will be recognized by a probation officer or corrections agent to prompt a report to the
209.32 commissioner regarding criminal convictions as required under section 245C.05, subdivision
209.33 7.
  Article 7 Sec. 3.  209
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
210.1      (d) A provider who initiates background studies through NETStudy 2.0 is exempt from
210.2  the requirement to initiate annual background studies under paragraph (b) for individuals
210.3  who are on the provider's active roster.
210.4    Sec. 4. Minnesota Statutes 2024, section 245C.04, is amended by adding a subdivision to
210.5  read:
210.6      Subd. 13. Recuperative care providers. Providers required to initiate background
210.7  studies under section 245C.03, subdivision 16, must initiate a study using the electronic
210.8  system known as NETStudy 2.0 before the individual begins in a position allowing direct
210.9  contact with persons served by the provider, before the individual becomes an operator of
210.10 the provider, or before the individual acquires an ownership interest of at least five percent
210.11 in the provider.
210.12   Sec. 5. Minnesota Statutes 2024, section 245C.10, subdivision 6, is amended to read:
210.13     Subd. 6. Unlicensed home and community-based waiver providers of service to
210.14 seniors and individuals with disabilities and providers of housing stabilization
210.15 services. The commissioner shall recover the cost of background studies initiated by
210.16 unlicensed home and community-based waiver providers of service to seniors and individuals
210.17 with disabilities under section 256B.4912 and providers of housing stabilization services
210.18 under section 256B.051 through a fee of no more than $44 per study.
210.19   Sec. 6. Minnesota Statutes 2024, section 245C.10, is amended by adding a subdivision to
210.20 read:
210.21     Subd. 22. Recuperative care providers. The commissioner shall recover the cost of
210.22 background studies required under section 245C.03, subdivision 16, for recuperative care
210.23 under section 256B.0701, through a fee of no more than $44 per study charged to the enrolled
210.24 provider. The fees collected under this subdivision are appropriated to the commissioner
210.25 for the purpose of conducting background studies.
210.26   Sec. 7. Minnesota Statutes 2024, section 256B.04, subdivision 21, is amended to read:
210.27     Subd. 21. Provider enrollment. (a) The commissioner shall enroll providers and conduct
210.28 screening activities as required by Code of Federal Regulations, title 42, section 455, subpart
210.29 E. A provider must enroll each provider-controlled location where direct services are
210.30 provided. The commissioner may deny a provider's incomplete application if a provider
210.31 fails to respond to the commissioner's request for additional information within 60 days of
  Article 7 Sec. 7.  210
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
211.1  the request. The commissioner must conduct a background study under chapter 245C,
211.2  including a review of databases in section 245C.08, subdivision 1, paragraph (a), clauses
211.3  (1) to (5), for a provider described in this paragraph. The background study requirement
211.4  may be satisfied if the commissioner conducted a fingerprint-based background study on
211.5  the provider that includes a review of databases in section 245C.08, subdivision 1, paragraph
211.6  (a), clauses (1) to (5).
211.7      (b) The commissioner shall revalidate each: (1) provider under this subdivision at least
211.8  once every five years; and (2) personal care assistance agency under this subdivision once
211.9  every three years.
211.10     (c) The commissioner shall conduct revalidation as follows:
211.11     (1) provide 30-day notice of the revalidation due date including instructions for
211.12 revalidation and a list of materials the provider must submit;
211.13     (2) if a provider fails to submit all required materials by the due date, notify the provider
211.14 of the deficiency within 30 days after the due date and allow the provider an additional 30
211.15 days from the notification date to comply; and
211.16     (3) if a provider fails to remedy a deficiency within the 30-day time period, give 60-day
211.17 notice of termination and immediately suspend the provider's ability to bill. The provider
211.18 does not have the right to appeal suspension of ability to bill.
211.19     (d) If a provider fails to comply with any individual provider requirement or condition
211.20 of participation, the commissioner may suspend the provider's ability to bill until the provider
211.21 comes into compliance. The commissioner's decision to suspend the provider is not subject
211.22 to an administrative appeal.
211.23     (e) Correspondence and notifications, including notifications of termination and other
211.24 actions, may be delivered electronically to a provider's MN-ITS mailbox. This paragraph
211.25 does not apply to correspondences and notifications related to background studies.
211.26     (f) If the commissioner or the Centers for Medicare and Medicaid Services determines
211.27 that a provider is designated "high-risk," the commissioner may withhold payment from
211.28 providers within that category upon initial enrollment for a 90-day period. The withholding
211.29 for each provider must begin on the date of the first submission of a claim.
211.30     (g) An enrolled provider that is also licensed by the commissioner under chapter 245A,
211.31 is licensed as a home care provider by the Department of Health under chapter 144A, or is
211.32 licensed as an assisted living facility under chapter 144G and has a home and
211.33 community-based services designation on the home care license under section 144A.484,
  Article 7 Sec. 7.  211
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
212.1  must designate an individual as the entity's compliance officer. The compliance officer
212.2  must:
212.3      (1) develop policies and procedures to assure adherence to medical assistance laws and
212.4  regulations and to prevent inappropriate claims submissions;
212.5      (2) train the employees of the provider entity, and any agents or subcontractors of the
212.6  provider entity including billers, on the policies and procedures under clause (1);
212.7      (3) respond to allegations of improper conduct related to the provision or billing of
212.8  medical assistance services, and implement action to remediate any resulting problems;
212.9      (4) use evaluation techniques to monitor compliance with medical assistance laws and
212.10 regulations;
212.11     (5) promptly report to the commissioner any identified violations of medical assistance
212.12 laws or regulations; and
212.13     (6) within 60 days of discovery by the provider of a medical assistance reimbursement
212.14 overpayment, report the overpayment to the commissioner and make arrangements with
212.15 the commissioner for the commissioner's recovery of the overpayment.
212.16 The commissioner may require, as a condition of enrollment in medical assistance, that a
212.17 provider within a particular industry sector or category establish a compliance program that
212.18 contains the core elements established by the Centers for Medicare and Medicaid Services.
212.19     (h) The commissioner may revoke the enrollment of an ordering or rendering provider
212.20 for a period of not more than one year, if the provider fails to maintain and, upon request
212.21 from the commissioner, provide access to documentation relating to written orders or requests
212.22 for payment for durable medical equipment, certifications for home health services, or
212.23 referrals for other items or services written or ordered by such provider, when the
212.24 commissioner has identified a pattern of a lack of documentation. A pattern means a failure
212.25 to maintain documentation or provide access to documentation on more than one occasion.
212.26 Nothing in this paragraph limits the authority of the commissioner to sanction a provider
212.27 under the provisions of section 256B.064.
212.28     (i) The commissioner shall terminate or deny the enrollment of any individual or entity
212.29 if the individual or entity has been terminated from participation in Medicare or under the
212.30 Medicaid program or Children's Health Insurance Program of any other state. The
212.31 commissioner may exempt a rehabilitation agency from termination or denial that would
212.32 otherwise be required under this paragraph, if the agency:
  Article 7 Sec. 7.  212
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
213.1      (1) is unable to retain Medicare certification and enrollment solely due to a lack of billing
213.2  to the Medicare program;
213.3      (2) meets all other applicable Medicare certification requirements based on an on-site
213.4  review completed by the commissioner of health; and
213.5      (3) serves primarily a pediatric population.
213.6      (j) As a condition of enrollment in medical assistance, the commissioner shall require
213.7  that a provider designated "moderate" or "high-risk" by the Centers for Medicare and
213.8  Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid
213.9  Services, its agents, or its designated contractors and the state agency, its agents, or its
213.10 designated contractors to conduct unannounced on-site inspections of any provider location.
213.11 The commissioner shall publish in the Minnesota Health Care Program Provider Manual a
213.12 list of provider types designated "limited," "moderate," or "high-risk," based on the criteria
213.13 and standards used to designate Medicare providers in Code of Federal Regulations, title
213.14 42, section 424.518. The list and criteria are not subject to the requirements of chapter 14.
213.15 The commissioner's designations are not subject to administrative appeal.
213.16     (k) As a condition of enrollment in medical assistance, the commissioner shall require
213.17 that a high-risk provider, or a person with a direct or indirect ownership interest in the
213.18 provider of five percent or higher, consent to criminal background checks, including
213.19 fingerprinting, when required to do so under state law or by a determination by the
213.20 commissioner or the Centers for Medicare and Medicaid Services that a provider is designated
213.21 high-risk for fraud, waste, or abuse.
213.22     (l)(1) Upon initial enrollment, reenrollment, and notification of revalidation, all durable
213.23 medical equipment, prosthetics, orthotics, and supplies (DMEPOS) medical suppliers
213.24 meeting the durable medical equipment provider and supplier definition in clause (3),
213.25 operating in Minnesota and receiving Medicaid funds must purchase a surety bond that is
213.26 annually renewed and designates the Minnesota Department of Human Services as the
213.27 obligee, and must be submitted in a form approved by the commissioner. For purposes of
213.28 this clause, the following medical suppliers are not required to obtain a surety bond: a
213.29 federally qualified health center, a home health agency, the Indian Health Service, a
213.30 pharmacy, and a rural health clinic.
213.31     (2) At the time of initial enrollment or reenrollment, durable medical equipment providers
213.32 and suppliers defined in clause (3) must purchase a surety bond of $50,000. If a revalidating
213.33 provider's Medicaid revenue in the previous calendar year is up to and including $300,000,
213.34 the provider agency must purchase a surety bond of $50,000. If a revalidating provider's
  Article 7 Sec. 7.  213
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
214.1  Medicaid revenue in the previous calendar year is over $300,000, the provider agency must
214.2  purchase a surety bond of $100,000. The surety bond must allow for recovery of costs and
214.3  fees in pursuing a claim on the bond.
214.4      (3) "Durable medical equipment provider or supplier" means a medical supplier that can
214.5  purchase medical equipment or supplies for sale or rental to the general public and is able
214.6  to perform or arrange for necessary repairs to and maintenance of equipment offered for
214.7  sale or rental.
214.8      (m) The Department of Human Services may require a provider to purchase a surety
214.9  bond as a condition of initial enrollment, reenrollment, reinstatement, or continued enrollment
214.10 if: (1) the provider fails to demonstrate financial viability, (2) the department determines
214.11 there is significant evidence of or potential for fraud and abuse by the provider, or (3) the
214.12 provider or category of providers is designated high-risk pursuant to paragraph (f) and as
214.13 per Code of Federal Regulations, title 42, section 455.450. The surety bond must be in an
214.14 amount of $100,000 or ten percent of the provider's payments from Medicaid during the
214.15 immediately preceding 12 months, whichever is greater. The surety bond must name the
214.16 Department of Human Services as an obligee and must allow for recovery of costs and fees
214.17 in pursuing a claim on the bond. This paragraph does not apply if the provider currently
214.18 maintains a surety bond under the requirements in section 256B.051, 256B.0659, 256B.0701,
214.19 or 256B.85.
214.20     EFFECTIVE DATE. This section is effective July 1, 2025.
214.21   Sec. 8. Minnesota Statutes 2024, section 256B.051, subdivision 2, is amended to read:
214.22     Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this
214.23 subdivision have the meanings given.
214.24     (b) "Agency" means the legal entity that is enrolled with Minnesota health care programs
214.25 as a medical assistance provider according to Minnesota Rules, part 9505.0195, to provide
214.26 housing stabilization services and that has the legal responsibility to ensure that its employees
214.27 carry out the responsibilities defined in this section.
214.28     (b) (c) "At-risk of homelessness" means (1) an individual that is faced with a set of
214.29 circumstances likely to cause the individual to become homeless, or (2) an individual
214.30 previously homeless, who will be discharged from a correctional, medical, mental health,
214.31 or treatment center, who lacks sufficient resources to pay for housing and does not have a
214.32 permanent place to live.
214.33     (c) (d) "Commissioner" means the commissioner of human services.
  Article 7 Sec. 8.  214
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
215.1      (e) "Employee of an agency" or "employee" means any person who is employed by an
215.2  agency temporarily, part time, or full time and who performs work for at least 80 hours in
215.3  a year for that agency in Minnesota. Employee does not include an independent contractor.
215.4      (d) (f) "Homeless" means an individual or family lacking a fixed, adequate nighttime
215.5  residence.
215.6      (e) (g) "Individual with a disability" means:
215.7      (1) an individual who is aged, blind, or disabled as determined by the criteria used by
215.8  the title 11 program of the Social Security Act, United States Code, title 42, section 416,
215.9  paragraph (i), item (1); or
215.10     (2) an individual who meets a category of eligibility under section 256D.05, subdivision
215.11 1, paragraph (a), clause (1), (4), (5) to (8), or (13).
215.12     (f) (h) "Institution" means a setting as defined in section 256B.0621, subdivision 2,
215.13 clause (3), and the Minnesota Security Hospital as defined in section 253.20.
215.14   Sec. 9. Minnesota Statutes 2024, section 256B.051, subdivision 5, is amended to read:
215.15     Subd. 5. Housing stabilization services. (a) Housing stabilization services include
215.16 housing transition services and, housing and tenancy sustaining services, housing consultation
215.17 services, and housing transition costs.
215.18     (b) Housing transition services are defined as:
215.19     (1) tenant screening and housing assessment;
215.20     (2) assistance with the housing search and application process;
215.21     (3) identifying resources to cover onetime moving expenses;
215.22     (4) ensuring a new living arrangement is safe and ready for move-in;
215.23     (5) assisting in arranging for and supporting details of a move; and
215.24     (6) developing a housing support crisis plan.
215.25     (c) Housing and tenancy sustaining services include:
215.26     (1) prevention and early identification of behaviors that may jeopardize continued stable
215.27 housing;
215.28     (2) education and training on roles, rights, and responsibilities of the tenant and the
215.29 property manager;
  Article 7 Sec. 9.  215
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
216.1      (3) coaching to develop and maintain key relationships with property managers and
216.2  neighbors;
216.3      (4) advocacy and referral to community resources to prevent eviction when housing is
216.4  at risk;
216.5      (5) assistance with housing recertification process;
216.6      (6) coordination with the tenant to regularly review, update, and modify the housing
216.7  support and crisis plan; and
216.8      (7) continuing training on being a good tenant, lease compliance, and household
216.9  management.
216.10     (d) A housing stabilization service may include Housing consultation services assist an
216.11 individual with developing a person-centered planning for people who are plan when the
216.12 individual is not eligible to receive person-centered planning through any other service, if
216.13 the person-centered planning is provided by a consultation service provider that is under
216.14 contract with the department and enrolled as a Minnesota health care program.
216.15     (e) Housing transition costs are available to persons transitioning from a
216.16 provider-controlled setting to the person's own home and include:
216.17     (1) security deposits; and
216.18     (2) essential furnishings and supplies.
216.19   Sec. 10. Minnesota Statutes 2024, section 256B.051, subdivision 6, is amended to read:
216.20     Subd. 6. Provider Agency qualifications and duties. A provider An agency is eligible
216.21 for reimbursement under this section shall only if the agency:
216.22     (1) is confirmed by the commissioner as an eligible provider after a pre-enrollment risk
216.23 assessment under subdivision 6a;
216.24     (1) enroll (2) is enrolled as a medical assistance Minnesota health care program provider
216.25 and meet meets all applicable provider standards and requirements;
216.26     (2) demonstrate (3) demonstrates compliance with federal and state laws and policies
216.27 for housing stabilization services as determined by the commissioner;
216.28     (3) comply (4) complies with background study requirements under chapter 245C and
216.29 maintain maintains documentation of background study requests and results;
216.30     (5) provides at the time of enrollment, reenrollment, and revalidation in a format
216.31 determined by the commissioner, proof of surety bond coverage for each business location
  Article 7 Sec. 10.  216
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217.1  providing services. Upon new enrollment, or if the provider's medical assistance revenue
217.2  in the previous calendar year is $300,000 or less, the provider agency must purchase a surety
217.3  bond of $50,000. If the provider's medical assistance revenue in the previous year is over
217.4  $300,000, the provider agency must purchase a surety bond of $100,000. The surety bond
217.5  must be in a form approved by the commissioner, must be renewed annually, and must
217.6  allow for recovery of costs and fees in pursuing a claim on the bond. Any action to obtain
217.7  monetary recovery or sanctions from a surety bond must occur within six years from the
217.8  date the debt is affirmed by a final agency decision. An agency decision is final when the
217.9  right to appeal the debt has been exhausted or the time to appeal has expired under section
217.10 256B.064;
217.11     (4) (6) directly provide provides housing stabilization services using employees of the
217.12 agency and not use by using a subcontractor or reporting agent; and
217.13     (5) complete (7) ensures all controlling individuals and employees of the agency complete
217.14 annual vulnerable adult training.; and
217.15     (8) completes compliance training as required under subdivision 6b.
217.16   Sec. 11. Minnesota Statutes 2024, section 256B.051, is amended by adding a subdivision
217.17 to read:
217.18     Subd. 6a. Pre-enrollment risk assessment. (a) Prior to enrolling a housing stabilization
217.19 services agency, the commissioner must complete a pre-enrollment risk assessment of the
217.20 agency seeking to enroll to confirm the agency's eligibility and the agency's ability to meet
217.21 the requirements of this section. In completing this assessment, the commissioner must
217.22 consider:
217.23     (1) the potential agency's history of performing services similar to those required by this
217.24 section;
217.25     (2) whether the services require the potential agency to perform duties at a significantly
217.26 increased scale and, if so, whether the potential agency has the capability and organizational
217.27 capacity to do so;
217.28     (3) the potential agency's financial information and internal controls; and
217.29     (4) the potential agency's compliance with other state and federal requirements, including
217.30 but not limited to debarment and suspension status, and standing with the secretary of state,
217.31 if applicable.
  Article 7 Sec. 11.  217
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
218.1      (b) At any time when completing the pre-enrollment risk assessment, if the commissioner
218.2  determines that the potential agency does not have a history of performing similar duties,
218.3  the potential agency does not demonstrate the capability and capacity to perform the duties
218.4  at the scale and pace required, or the results of the financial information review raise concern,
218.5  then the commissioner may deem the potential agency ineligible and deny or rescind
218.6  enrollment. A potential agency may appeal a decision regarding its eligibility in writing
218.7  within 30 business days. The commissioner must notify each potential agency of the
218.8  commissioner's final decision regarding its eligibility.
218.9      (c) This subdivision is effective July 1, 2025. Any housing stabilization services provider
218.10 enrolled before July 1, 2025, that billed for services on or after January 1, 2024, must
218.11 complete the pre-enrollment risk assessment on a schedule determined by the commissioner
218.12 and no later than July 1, 2026, to remain eligible. Any provider enrolled before July 1, 2025,
218.13 that has not billed for services on or after January 1, 2024, must complete the pre-enrollment
218.14 risk assessment to remain eligible.
218.15   Sec. 12. Minnesota Statutes 2024, section 256B.051, is amended by adding a subdivision
218.16 to read:
218.17     Subd. 6b. Requirements for provider enrollment. (a) Effective January 1, 2027, to
218.18 enroll as a housing stabilization services provider agency, an agency must require all owners
218.19 of the agency who are active in the day-to-day management and operations of the agency
218.20 and managerial and supervisory employees to complete compliance training before applying
218.21 for enrollment and every three years thereafter. Mandatory compliance training format and
218.22 content must be determined by the commissioner and must include the following topics:
218.23     (1) state and federal program billing, documentation, and service delivery requirements;
218.24     (2) enrollment requirements;
218.25     (3) provider program integrity, including fraud prevention, detection, and penalties;
218.26     (4) fair labor standards;
218.27     (5) workplace safety requirements; and
218.28     (6) recent changes in service requirements.
218.29     (b) New owners active in day-to-day management and operations of the agency and new
218.30 managerial and supervisory employees must complete compliance training under this
218.31 subdivision to be employed by or conduct management and operations activities for the
218.32 agency. If an individual moves to another housing stabilization services provider agency
  Article 7 Sec. 12.  218
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
219.1  and serves in a similar ownership or employment capacity, the individual is not required to
219.2  repeat the training required under this subdivision if the individual documents completion
219.3  of the training within the past three years.
219.4      (c) Any housing stabilization services provider agency enrolled before January 1, 2027,
219.5  must complete the compliance training by January 1, 2028, and every three years thereafter.
219.6    Sec. 13. Minnesota Statutes 2024, section 256B.051, subdivision 8, is amended to read:
219.7      Subd. 8. Documentation requirements. (a) Documentation may be collected and
219.8  maintained An agency must document delivery of all services. The agency must collect and
219.9  maintain the required information either electronically or in paper form by providers and
219.10 must be produced produce the documents containing the information upon request by the
219.11 commissioner.
219.12     (b) Documentation of a delivered service must be in English and must be legible according
219.13 to the standard of a reasonable person.
219.14     (c) If the service is reimbursed at an hourly or specified minute-based rate, each
219.15 documentation of the provision of a service, unless otherwise specified, must include:
219.16     (1) the full name of the service recipient;
219.17     (1) (2) the date the documentation occurred;
219.18     (2) (3) the day, month, and year the service was provided;
219.19     (3) (4) the start and stop times with a.m. and p.m. designations, except for person-centered
219.20 planning services described under subdivision 5, paragraph (d) housing consultation services;
219.21     (4) (5) the service name or description of the service provided for each date of service;
219.22 and
219.23     (5) (6) the name, signature, and title, if any, of the provider of employee of the agency
219.24 that provided the service. If the service is provided by multiple staff members employees,
219.25 the provider agency may designate a staff member an employee responsible for verifying
219.26 services and completing the documentation required by this paragraph.;
219.27     (7) the signature of the service recipient and a statement that the recipient's signature is
219.28 verification of the accuracy of the service documentation; and
219.29     (8) a statement that it is a federal crime to provide false information on housing
219.30 stabilization services billings for medical assistance payments.
  Article 7 Sec. 13.  219
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
220.1    Sec. 14. Minnesota Statutes 2024, section 256B.051, is amended by adding a subdivision
220.2  to read:
220.3      Subd. 9. Service limits. (a) Housing stabilization services must not exceed the limits in
220.4  clauses (1) to (4):
220.5      (1) housing transition services are limited to 100 hours annually per recipient and are
220.6  not billable when a recipient is concurrently receiving housing and tenancy sustaining
220.7  services;
220.8      (2) housing and tenancy sustaining services are limited to 100 hours annually per recipient
220.9  and are not billable when a recipient is concurrently receiving housing transition services;
220.10     (3) housing consultation services are available once annually per recipient and must be
220.11 provided in person. Additional sessions of housing consultation services may be authorized
220.12 by the commissioner if the recipient becomes homeless, the recipient experiences a significant
220.13 change in condition that impacts the recipient's housing, or the recipient requests an update
220.14 or change to the recipient's plan; and
220.15     (4) housing transition costs are limited to $3,000 annually.
220.16     (b) Remote support cannot be used for more than a total of 20 percent of all housing
220.17 transition services and housing and tenancy sustaining services provided to a recipient in a
220.18 calendar month and is limited to audio-only and accessible video-based platforms. A recipient
220.19 may refuse, stop, or suspend the use of remote support at any time.
220.20     EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval,
220.21 whichever is later. The commissioner of human services shall notify the revisor of statutes
220.22 when federal approval is obtained.
220.23   Sec. 15. Minnesota Statutes 2024, section 256B.051, is amended by adding a subdivision
220.24 to read:
220.25     Subd. 10. Service limit exceptions. If a recipient requires services exceeding the limits
220.26 described in subdivision 9, a provider may request authorization for additional hours in a
220.27 format prescribed by the commissioner. Requests must specify the number of additional
220.28 hours being requested to meet the recipient's needs and include sufficient documentation
220.29 to justify the increase to billable hours. Exceptions to service limits are not allowed on the
220.30 sole basis of changing providers and are limited to recipients who:
220.31     (1) become or are at risk of becoming homeless or institutionalized due to a significant
220.32 change in condition;
  Article 7 Sec. 15.  220
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
221.1      (2) have a history of long-term homelessness;
221.2      (3) have a history of domestic violence; or
221.3      (4) have a criminal background that is a barrier to obtaining housing.
221.4      EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval,
221.5  whichever is later. The commissioner of human services must inform the revisor of statutes
221.6  when federal approval is obtained.
221.7    Sec. 16. Minnesota Statutes 2024, section 256B.0701, subdivision 1, is amended to read:
221.8      Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
221.9  the meanings given.
221.10     (b) "Habitability inspection" means an inspection that meets the requirements of
221.11 subdivision 13.
221.12     (b) (c) "Provider" means a recuperative care provider as defined by that meets the
221.13 standards established for medical respite care programs most recently published by the
221.14 National Institute for Medical Respite Care.
221.15     (c) (d) "Recuperative care" means a model of care that prevents hospitalization or that
221.16 provides postacute medical care and support services for recipients experiencing
221.17 homelessness who are too ill or frail to recover from a physical illness or injury while living
221.18 in a shelter or are otherwise unhoused but who are not sick enough to be hospitalized or
221.19 remain hospitalized, or to need other levels of care.
221.20   Sec. 17. Minnesota Statutes 2024, section 256B.0701, subdivision 2, is amended to read:
221.21     Subd. 2. Recuperative care settings. Recuperative care may be provided in any setting
221.22 that meets the habitability inspection requirements in subdivision 13, including but not
221.23 limited to homeless shelters, congregate care settings, single room occupancy settings, or
221.24 supportive housing, so long as the provider of recuperative care or provider of housing is
221.25 able to provide to the recipient within the designated setting, at a minimum:
221.26     (1) 24-hour access to a bed and bathroom;
221.27     (2) access to three meals a day;
221.28     (3) availability to environmental services;
221.29     (4) access to a telephone;
221.30     (5) a secure place to store belongings; and
  Article 7 Sec. 17.  221
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
222.1      (6) staff available within the setting to provide a wellness check as needed, but at a
222.2  minimum, at least once every 24 hours.
222.3    Sec. 18. Minnesota Statutes 2024, section 256B.0701, is amended by adding a subdivision
222.4  to read:
222.5      Subd. 9. Provider qualifications and duties. A provider is eligible for reimbursement
222.6  under this section only if the provider:
222.7      (1) is confirmed by the commissioner as an eligible provider after a pre-enrollment risk
222.8  assessment under subdivision 10;
222.9      (2) is enrolled as a medical assistance Minnesota health care program provider and meets
222.10 all applicable provider standards and requirements;
222.11     (3) demonstrates compliance with federal and state laws and policies for housing
222.12 stabilization services as determined by the commissioner;
222.13     (4) complies with background study requirements under chapter 245C and maintains
222.14 documentation of background study requests and results;
222.15     (5) provides at the time of enrollment, reenrollment, and revalidation in a format
222.16 determined by the commissioner, proof of surety bond coverage for each business location
222.17 providing services. Upon new enrollment, or if the provider's medical assistance revenue
222.18 in the previous calendar year is $300,000 or less, the provider agency must purchase a surety
222.19 bond of $50,000. If the provider's medical assistance revenue in the previous year is over
222.20 $300,000, the provider agency must purchase a surety bond of $100,000. The surety bond
222.21 must be in a form approved by the commissioner, must be renewed annually, and must
222.22 allow for recovery of costs and fees in pursuing a claim on the bond. Any action to obtain
222.23 monetary recovery or sanctions from a surety bond must occur within six years from the
222.24 date the debt is affirmed by a final agency decision. An agency decision is final when the
222.25 right to appeal the debt has been exhausted or the time to appeal has expired under section
222.26 256B.064;
222.27     (6) ensures all controlling individuals and employees of the agency complete annual
222.28 vulnerable adult training;
222.29     (7) completes compliance training as required under subdivision 11; and
222.30     (8) complies with the habitability inspection requirements in subdivision 13.
  Article 7 Sec. 18.  222
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
223.1    Sec. 19. Minnesota Statutes 2024, section 256B.0701, is amended by adding a subdivision
223.2  to read:
223.3      Subd. 10. Pre-enrollment risk assessment. (a) Prior to enrolling a recuperative care
223.4  provider, the commissioner must complete a pre-enrollment risk assessment of the provider
223.5  seeking to enroll to confirm the provider's eligibility and the provider's ability to meet the
223.6  requirements of this section. In completing this assessment, the commissioner must consider:
223.7      (1) the potential provider's history of performing services similar to those required by
223.8  this section;
223.9      (2) whether the services require the potential provider to perform duties at a significantly
223.10 increased scale and, if so, whether the potential provider has the capability and organizational
223.11 capacity to do so;
223.12     (3) the potential provider's financial information and internal controls; and
223.13     (4) the potential provider's compliance with other state and federal requirements, including
223.14 but not limited to debarment and suspension status, and standing with the secretary of state,
223.15 if applicable.
223.16     (b) At any time when completing the pre-enrollment risk assessment, if the commissioner
223.17 determines that the potential provider does not have a history of performing similar duties,
223.18 the potential provider does not demonstrate the capability and capacity to perform the duties
223.19 at the scale and pace required, or the results of the financial information review raise concern,
223.20 then the commissioner may deem the potential provider ineligible and deny or rescind
223.21 enrollment. A potential provider may appeal a decision regarding the provider's eligibility
223.22 in writing within 30 business days. The commissioner must notify each potential provider
223.23 of the commissioner's final decision regarding the provider's eligibility.
223.24     (c) This subdivision is effective July 1, 2025. Any recuperative care provider enrolled
223.25 before July 1, 2025, that billed for services on or after January 1, 2024, must complete the
223.26 pre-enrollment risk assessment on a schedule determined by the commissioner and no later
223.27 than July 1, 2026, to remain eligible. Any provider enrolled before July 1, 2025, that has
223.28 not billed for services on or after January 1, 2024, must complete the pre-enrollment risk
223.29 assessment to remain eligible.
223.30   Sec. 20. Minnesota Statutes 2024, section 256B.0701, is amended by adding a subdivision
223.31 to read:
223.32     Subd. 11. Requirements for provider enrollment; compliance training. (a) Effective
223.33 January 1, 2027, to enroll as a recuperative care provider, a provider must require all owners
  Article 7 Sec. 20.  223
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
224.1  of the provider who are active in the day-to-day management and operations of the agency
224.2  and all managerial and supervisory employees to complete compliance training before
224.3  applying for enrollment and every three years thereafter. Mandatory compliance training
224.4  format and content must be determined by the commissioner and must include the following
224.5  topics:
224.6      (1) state and federal program billing, documentation, and service delivery requirements;
224.7      (2) enrollment requirements;
224.8      (3) provider program integrity, including fraud prevention, detection, and penalties;
224.9      (4) fair labor standards;
224.10     (5) workplace safety requirements; and
224.11     (6) recent changes in service requirements.
224.12     (b) New owners active in day-to-day management and operations of the provider and
224.13 new managerial and supervisory employees must complete compliance training under this
224.14 subdivision to be employed by or conduct management and operations activities for the
224.15 provider. If an individual moves to another recuperative care provider and serves in a similar
224.16 ownership or employment capacity, the individual is not required to repeat the training
224.17 required under this subdivision if the individual documents completion of the training within
224.18 the past three years.
224.19     (c) Any recuperative care provider enrolled before January 1, 2027, must complete the
224.20 compliance training by January 1, 2028, and every three years thereafter.
224.21   Sec. 21. Minnesota Statutes 2024, section 256B.0701, is amended by adding a subdivision
224.22 to read:
224.23     Subd. 12. Requirements for provider enrollment; documentation of habitability
224.24 inspection. (a) Effective July 1, 2025, to enroll as a recuperative care provider, a provider
224.25 must submit to the commissioner proof that a habitability inspection of the proposed service
224.26 setting has been performed and a qualified inspector has deemed the setting habitable.
224.27     (b) Any recuperative care provider enrolled prior to July 1, 2025, must submit to the
224.28 commissioner by July 1, 2026, proof that a habitability inspection of the service setting has
224.29 been performed and a qualified inspector has deemed the setting habitable.
  Article 7 Sec. 21.  224
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
225.1    Sec. 22. Minnesota Statutes 2024, section 256B.0701, is amended by adding a subdivision
225.2  to read:
225.3      Subd. 13. Habitability inspection requirements. (a) A recuperative care provider
225.4  providing recuperative care services in an unlicensed setting must ensure that the unlicensed
225.5  setting is inspected by a qualified inspector with demonstrated knowledge of housing
225.6  inspection standards and professional experience conducting home inspections. The
225.7  habitability inspection must include an assessment of potential home-based health and safety
225.8  risks to ensure the living environment does not adversely affect the occupants' health and
225.9  safety. Inspectors must evaluate both the habitability and environmental safety of the
225.10 property, including but not limited to the following characteristics of the unlicensed setting:
225.11     (1) adequacy of space for the individuals being served;
225.12     (2) indoor air quality and ventilation;
225.13     (3) adequacy of safe water supply;
225.14     (4) cleanliness of the setting, including kitchen, bathroom, and living spaces;
225.15     (5) adequacy of electrical service, outlets, and lighting and absence of electrical hazards;
225.16     (6) potential lead exposure;
225.17     (7) conditions that may affect health;
225.18     (8) conditions that may affect safety;
225.19     (9) condition of the building foundation and exterior, including accessibility; and
225.20     (10) condition and functionality of equipment for heating, cooling, and ventilation and
225.21 plumbing.
225.22     (b) A recuperative care provider must not provide services in an unlicensed setting prior
225.23 to receiving a habitability inspection and documentation that the inspector deems the setting
225.24 habitable. The recuperative care provider must maintain documentation that the inspection
225.25 occurred and the results of the inspection.
225.26   Sec. 23. Minnesota Statutes 2024, section 256I.05, is amended by adding a subdivision
225.27 to read:
225.28     Subd. 1v. Supplementary rate for certain facilities. Notwithstanding the provisions
225.29 of subdivisions 1a and 1c, beginning July 1, 2026, an agency shall negotiate a supplementary
225.30 rate in addition to the rate specified in subdivision 1 for a housing support provider operating
225.31 indoor communities with low barriers to access. The communities must: (1) be composed
  Article 7 Sec. 23.  225
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
226.1  of individual secure, private dwellings for persons experiencing unsheltered homelessness
226.2  with complex health needs including substance use disorder, serious mental illness, and
226.3  physical health conditions; and (2) provide 24-hour-a-day supervision with on-site support
226.4  services for 100 beds in the Twin Cities metropolitan area in a facility operating since 2020
226.5  and 48 beds in central Minnesota in a facility opening after 2025. The supplementary rate
226.6  must not exceed $975 per month, including any legislatively authorized inflationary
226.7  adjustments.
226.8    Sec. 24. Minnesota Statutes 2024, section 256I.05, is amended by adding a subdivision
226.9  to read:
226.10     Subd. 1w. Supplemental rate; Blue Earth County. Notwithstanding the provisions of
226.11 subdivisions 1a and 1c, beginning July 1, 2025, a county agency shall negotiate a
226.12 supplementary rate in addition to the rate specified in subdivision 1, not to exceed $750 per
226.13 month, including any legislatively authorized inflationary adjustments, for a housing support
226.14 provider located in Blue Earth County that operates a long-term residential facility that
226.15 opened in 2007 in Garden City with a total of 20 beds that serves chemically dependent
226.16 women and provides 24-hour-a-day supervision and other support services.
226.17   Sec. 25. Minnesota Statutes 2024, section 256I.05, is amended by adding a subdivision
226.18 to read:
226.19     Subd. 1x. Supplemental rate; Otter Tail County. Notwithstanding the provisions of
226.20 subdivisions 1a and 1c, beginning July 1, 2025, a county agency shall negotiate a
226.21 supplemental rate for up to 24 beds in addition to the rate specified in subdivision 1, not to
226.22 exceed the maximum rate allowed under subdivision 1a, including any legislatively
226.23 authorized inflationary adjustments, for housing support providers located in Otter Tail
226.24 County that operate facilities and provide room and board and supplementary services to
226.25 adults recovering from substance use disorder, mental illness, or housing instability.
226.26   Sec. 26. REPEALER.
226.27     Minnesota Statutes 2024, sections 245C.03, subdivision 13; and 245C.10, subdivision
226.28 16, are repealed.
  Article 7 Sec. 26.  226
  06/07/25  REVISOR       DTT/RC  25-05696  as introduced
227.1ARTICLE 8
227.2DEPARTMENT OF HEALTH
227.3    Section 1. Minnesota Statutes 2024, section 144A.01, subdivision 4, is amended to read:
227.4      Subd. 4. Controlling person. (a) "Controlling person" means an owner and the following
227.5  individuals and entities, if applicable:
227.6      (1) each officer of the organization, including the chief executive officer and the chief
227.7  financial officer;
227.8      (2) the nursing home administrator; and
227.9      (3) any managerial official.; and
227.10     (4) if no individual has at least a five percent ownership interest, every individual with
227.11 an ownership interest in a privately held corporation, limited liability company, or other
227.12 business entity, including a business entity that is publicly traded or nonpublicly traded,
227.13 that collects capital investments from individuals or entities.
227.14     (b) "Controlling person" also means any entity or natural person who has any direct or
227.15 indirect ownership interest in:
227.16     (1) any corporation, partnership or other business association which is a controlling
227.17 person;
227.18     (2) the land on which a nursing home is located;
227.19     (3) the structure in which a nursing home is located;
227.20     (4) any entity with at least a five percent mortgage, contract for deed, deed of trust, or
227.21 other security interest in the land or structure comprising a nursing home; or
227.22     (5) any lease or sublease of the land, structure, or facilities comprising a nursing home.
227.23     (c) "Controlling person" does not include:
227.24     (1) a bank, savings bank, trust company, savings association, credit union, industrial
227.25 loan and thrift company, investment banking firm, or insurance company unless the entity
227.26 directly or through a subsidiary operates a nursing home;
227.27     (2) government and government-sponsored entities such as the United States Department
227.28 of Housing and Urban Development, Ginnie Mae, Fannie Mae, Freddie Mac, and the
227.29 Minnesota Housing Finance Agency which provide loans, financing, and insurance products
227.30 for housing sites;
  Article 8 Section 1.  227
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
228.1      (3) an individual who is a state or federal official, a state or federal employee, or a
228.2  member or employee of the governing body of a political subdivision of the state or federal
228.3  government that operates one or more nursing homes, unless the individual is also an officer,
228.4  owner, or managerial official of the nursing home, receives any remuneration from a nursing
228.5  home, or who is a controlling person not otherwise excluded in this subdivision;
228.6      (4) a natural person who is a member of a tax-exempt organization under section 290.05,
228.7  subdivision 2, unless the individual is also a controlling person not otherwise excluded in
228.8  this subdivision; and
228.9      (5) a natural person who owns less than five percent of the outstanding common shares
228.10 of a corporation:
228.11     (i) whose securities are exempt by virtue of section 80A.45, clause (6); or
228.12     (ii) whose transactions are exempt by virtue of section 80A.46, clause (7).
228.13   Sec. 2. Minnesota Statutes 2024, section 144A.474, subdivision 11, is amended to read:
228.14     Subd. 11. Fines. (a) Fines and enforcement actions under this subdivision may be assessed
228.15 based on the level and scope of the violations described in paragraph (b) and imposed
228.16 immediately with no opportunity to correct the violation first as follows:
228.17     (1) Level 1, no fines or enforcement;
228.18     (2) Level 2, a fine of $500 per violation, in addition to any of the enforcement
228.19 mechanisms authorized in section 144A.475 for widespread violations;
228.20     (3) Level 3, a fine of $3,000 per incident, in addition to any of the enforcement
228.21 mechanisms authorized in section 144A.475;
228.22     (4) Level 4, a fine of $5,000 per incident, in addition to any of the enforcement
228.23 mechanisms authorized in section 144A.475;
228.24     (5) for maltreatment violations for which the licensee was determined to be responsible
228.25 for the maltreatment under section 626.557, subdivision 9c, paragraph (c), a fine of $1,000.
228.26 A fine of $5,000 may be imposed if the commissioner determines the licensee is responsible
228.27 for maltreatment consisting of sexual assault, death, or abuse resulting in serious injury;
228.28 and
228.29     (6) the fines in clauses (1) to (4) are increased and immediate fine imposition is authorized
228.30 for both surveys and investigations conducted.
  Article 8 Sec. 2.  228
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
229.1      When a fine is assessed against a facility for substantiated maltreatment, the commissioner
229.2  shall not also impose an immediate fine under this chapter for the same circumstance.
229.3      (b) Correction orders for violations are categorized by both level and scope and fines
229.4  shall be assessed as follows:
229.5      (1) level of violation:
229.6      (i) Level 1 is a violation that has no potential to cause more than a minimal impact on
229.7  the client and does not affect health or safety;
229.8      (ii) Level 2 is a violation that did not harm a client's health or safety but had the potential
229.9  to have harmed a client's health or safety, but was not likely to cause serious injury,
229.10 impairment, or death;
229.11     (iii) Level 3 is a violation that harmed a client's health or safety, not including serious
229.12 injury, impairment, or death, or a violation that has the potential to lead to serious injury,
229.13 impairment, or death; and
229.14     (iv) Level 4 is a violation that results in serious injury, impairment, or death;
229.15     (2) scope of violation:
229.16     (i) isolated, when one or a limited number of clients are affected or one or a limited
229.17 number of staff are involved or the situation has occurred only occasionally;
229.18     (ii) pattern, when more than a limited number of clients are affected, more than a limited
229.19 number of staff are involved, or the situation has occurred repeatedly but is not found to be
229.20 pervasive; and
229.21     (iii) widespread, when problems are pervasive or represent a systemic failure that has
229.22 affected or has the potential to affect a large portion or all of the clients.
229.23     (c) If the commissioner finds that the applicant or a home care provider has not corrected
229.24 violations by the date specified in the correction order or conditional license resulting from
229.25 a survey or complaint investigation, the commissioner shall provide a notice of
229.26 noncompliance with a correction order by email to the applicant's or provider's last known
229.27 email address. The noncompliance notice must list the violations not corrected.
229.28     (d) For every violation identified by the commissioner, the commissioner shall issue an
229.29 immediate fine pursuant to paragraph (a), clause (6). The license holder must still correct
229.30 the violation in the time specified. The issuance of an immediate fine can occur in addition
229.31 to any enforcement mechanism authorized under section 144A.475. The immediate fine
229.32 may be appealed as allowed under this subdivision.
  Article 8 Sec. 2.  229
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230.1      (e) The license holder must pay the fines assessed on or before the payment date specified.
230.2  If the license holder fails to fully comply with the order, the commissioner may issue a
230.3  second fine or suspend the license until the license holder complies by paying the fine. A
230.4  timely appeal shall stay payment of the fine until the commissioner issues a final order.
230.5      (f) A license holder shall promptly notify the commissioner in writing when a violation
230.6  specified in the order is corrected. If upon reinspection the commissioner determines that
230.7  a violation has not been corrected as indicated by the order, the commissioner may issue a
230.8  second fine. The commissioner shall notify the license holder by mail to the last known
230.9  address in the licensing record that a second fine has been assessed. The license holder may
230.10 appeal the second fine as provided under this subdivision.
230.11     (g) A home care provider that has been assessed a fine under this subdivision has a right
230.12 to a reconsideration or a hearing under this section and chapter 14.
230.13     (h) When a fine has been assessed, the license holder may not avoid payment by closing,
230.14 selling, or otherwise transferring the licensed program to a third party. In such an event, the
230.15 license holder shall be liable for payment of the fine.
230.16     (i) In addition to any fine imposed under this section, the commissioner may assess a
230.17 penalty amount based on costs related to an investigation that results in a final order assessing
230.18 a fine or other enforcement action authorized by this chapter.
230.19     (j) Fines collected under paragraph (a), clauses (1) to (4), shall be deposited in a dedicated
230.20 special revenue account. On an annual basis, the balance in the special revenue account
230.21 shall be appropriated to the commissioner to implement the recommendations of the advisory
230.22 council established in section 144A.4799. The commissioner must publish on the department's
230.23 website an annual report on the fines assessed and collected, and how the appropriated
230.24 money was allocated.
230.25     (k) Fines collected under paragraph (a), clause (5), shall be deposited in a dedicated
230.26 special revenue account and appropriated to the commissioner to provide compensation
230.27 according to subdivision 14 to clients subject to maltreatment. A client may choose to receive
230.28 compensation from this fund, not to exceed $5,000 for each substantiated finding of
230.29 maltreatment, or take civil action. This paragraph expires July 31, 2021.
  Article 8 Sec. 2.  230
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231.1    Sec. 3. Minnesota Statutes 2024, section 144A.4799, is amended to read:
231.2      144A.4799 DEPARTMENT OF HEALTH LICENSED HOME CARE PROVIDER
231.3  AND ASSISTED LIVING ADVISORY COUNCIL.
231.4      Subdivision 1. Membership. The commissioner of health shall appoint 13 14 persons
231.5  to a home care and assisted living program advisory council consisting of the following:
231.6      (1) two four public members as defined in section 214.02 who shall be persons who are
231.7  currently receiving home care services, persons who have received home care services
231.8  within five years of the application date, persons who have family members receiving home
231.9  care services, or persons who have family members who have received home care services
231.10 within five years of the application date, one of whom must be a person who either is
231.11 receiving or has received home care services preferably within the five years prior to initial
231.12 appointment, one of whom must be a person who has or had a family member receiving
231.13 home care services preferably within the five years prior to initial appointment, one of whom
231.14 must be a person who either is or has been a resident in an assisted living facility preferably
231.15 within the five years prior to initial appointment, and one of whom must be a person who
231.16 has or had a family member residing in an assisted living facility preferably within the five
231.17 years prior to initial appointment;
231.18     (2) two Minnesota home care licensees representing basic and comprehensive levels of
231.19 licensure who may be a managerial official, an administrator, a supervising registered nurse,
231.20 or an unlicensed personnel performing home care tasks;
231.21     (3) one member representing the Minnesota Board of Nursing;
231.22     (4) one member representing the Office of Ombudsman for Long-Term Care;
231.23     (5) one member representing the Office of Ombudsman for Mental Health and
231.24 Developmental Disabilities;
231.25     (6) beginning July 1, 2021, one member of a county health and human services or county
231.26 adult protection office;
231.27     (7) two Minnesota assisted living facility licensees representing assisted living facilities
231.28 and assisted living facilities with dementia care levels of licensure who may be the facility's
231.29 assisted living director, managerial official, or clinical nurse supervisor;
231.30     (8) one organization representing long-term care providers, home care providers, and
231.31 assisted living providers in Minnesota; and
  Article 8 Sec. 3.  231
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232.1      (9) two public members as defined in section 214.02. One public member shall be a
232.2  person who either is or has been a resident in an assisted living facility and one public
232.3  member shall be a person who has or had a family member living in an assisted living
232.4  facility setting one representative of a consumer advocacy organization representing
232.5  individuals receiving long-term care from licensed home care providers or assisted living
232.6  facilities.
232.7      Subd. 2. Organizations and meetings. The advisory council shall be organized and
232.8  administered under section 15.059 with per diems and costs paid within the limits of available
232.9  appropriations. Meetings will be held quarterly and hosted by the department. Subcommittees
232.10 may be developed as necessary by the commissioner. Advisory council meetings are subject
232.11 to the Open Meeting Law under chapter 13D.
232.12     Subd. 3. Duties. (a) At the commissioner's request, the advisory council shall provide
232.13 advice regarding regulations of Department of Health licensed assisted living facilities and
232.14 home care providers in this chapter and chapter 144G, including advice on the following:
232.15     (1) community standards for home care practices;
232.16     (2) enforcement of licensing standards and whether certain disciplinary actions are
232.17 appropriate;
232.18     (3) ways of distributing information to licensees and consumers of .home care and
232.19 assisted living services defined under chapter 144G;
232.20     (4) training standards;
232.21     (5) identifying emerging issues and opportunities in home care and assisted living services
232.22 defined under chapter 144G;
232.23     (6) identifying the use of technology in home and telehealth capabilities;
232.24     (7) allowable home care licensing modifications and exemptions, including a method
232.25 for an integrated license with an existing license for rural licensed nursing homes to provide
232.26 limited home care services in an adjacent independent living apartment building owned by
232.27 the licensed nursing home; and
232.28     (8) recommendations for studies using the data in section 62U.04, subdivision 4, including
232.29 but not limited to studies concerning costs related to dementia and chronic disease among
232.30 an elderly population over 60 and additional long-term care costs, as described in section
232.31 62U.10, subdivision 6.
232.32     (b) The advisory council shall perform other duties as directed by the commissioner.
  Article 8 Sec. 3.  232
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233.1      (c) The advisory council shall annually make recommendations annually to the
233.2  commissioner for the purposes of allocating the appropriation in section sections 144A.474,
233.3  subdivision 11, paragraph (i) (j), and 144G.31, subdivision 8. The commissioner shall act
233.4  upon the recommendations of the advisory council within one year of the advisory council
233.5  submitting its recommendations to the commissioner. The recommendations shall address
233.6  ways the commissioner may improve protection of the public under existing statutes and
233.7  laws and improve quality of care. The council's recommendations may include but are not
233.8  limited to special projects or initiatives that:
233.9      (1) create and administer training of licensees and ongoing training for their employees
233.10 to improve clients' and residents' lives, supporting ways that support licensees, can improve
233.11 and enhance quality care, and ways to provide technical assistance to licensees to improve
233.12 compliance;
233.13     (2) develop and implement information technology and data projects that analyze and
233.14 communicate information about trends of in violations or lead to ways of improving resident
233.15 and client care;
233.16     (3) improve communications strategies to licensees and the public;
233.17     (4) recruit and retain direct care staff;
233.18     (5) recommend education related to the care of vulnerable adults in professional nursing
233.19 programs, nurse aide programs, and home health aide programs; and
233.20     (6) other projects or pilots that benefit residents, clients, families, and the public in other
233.21 ways.
233.22     EFFECTIVE DATE. This section is effective July 1, 2025, and the amendments to
233.23 subdivision 1, clause (1), apply to members whose initial appointment occurs on or after
233.24 that date.
233.25   Sec. 4. Minnesota Statutes 2024, section 144G.08, subdivision 15, is amended to read:
233.26     Subd. 15. Controlling individual. (a) "Controlling individual" means an owner and the
233.27 following individuals and entities, if applicable:
233.28     (1) each officer of the organization, including the chief executive officer and chief
233.29 financial officer;
233.30     (2) each managerial official; and
233.31     (3) any entity with at least a five percent mortgage, deed of trust, or other security interest
233.32 in the facility.; and
  Article 8 Sec. 4.  233
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
234.1      (4) if no individual has at least a five percent ownership interest, every individual with
234.2  an ownership interest in a privately held corporation, limited liability company, or other
234.3  business entity, including a business entity that is publicly traded or nonpublicly traded,
234.4  that collects capital investments from individuals or entities.
234.5      (b) Controlling individual also means any entity or natural person who has any direct
234.6  or indirect ownership interest in:
234.7      (1) any corporation, partnership, or other business association such as a limited liability
234.8  company that is a controlling individual;
234.9      (2) the land on which an assisted living facility is located; or
234.10     (3) the structure in which an assisted living facility is located.
234.11     (b) (c) Controlling individual does not include:
234.12     (1) a bank, savings bank, trust company, savings association, credit union, industrial
234.13 loan and thrift company, investment banking firm, or insurance company unless the entity
234.14 operates a program directly or through a subsidiary;
234.15     (2) government and government-sponsored entities such as the U.S. Department of
234.16 Housing and Urban Development, Ginnie Mae, Fannie Mae, Freddie Mac, and the Minnesota
234.17 Housing Finance Agency which provide loans, financing, and insurance products for housing
234.18 sites;
234.19     (3) an individual who is a state or federal official, a state or federal employee, or a
234.20 member or employee of the governing body of a political subdivision of the state or federal
234.21 government that operates one or more facilities, unless the individual is also an officer,
234.22 owner, or managerial official of the facility, receives remuneration from the facility, or
234.23 owns any of the beneficial interests not excluded in this subdivision;
234.24     (4) an individual who owns less than five percent of the outstanding common shares of
234.25 a corporation:
234.26     (i) whose securities are exempt under section 80A.45, clause (6); or
234.27     (ii) whose transactions are exempt under section 80A.46, clause (2);
234.28     (5) an individual who is a member of an organization exempt from taxation under section
234.29 290.05, unless the individual is also an officer, owner, or managerial official of the license
234.30 or owns any of the beneficial interests not excluded in this subdivision. This clause does
234.31 not exclude from the definition of controlling individual an organization that is exempt from
234.32 taxation; or
  Article 8 Sec. 4.  234
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
235.1      (6) an employee stock ownership plan trust, or a participant or board member of an
235.2  employee stock ownership plan, unless the participant or board member is a controlling
235.3  individual.
235.4    Sec. 5. Minnesota Statutes 2024, section 144G.31, subdivision 8, is amended to read:
235.5      Subd. 8. Deposit of fines. Fines collected under this section shall be deposited in a
235.6  dedicated special revenue account. On an annual basis, The balance in the special revenue
235.7  account shall be is appropriated to the commissioner for special projects to improve a
235.8  competitive grant program for special projects or initiatives for assisted living facilities
235.9  licensed under this chapter or other organizations or entities with experience in or knowledge
235.10 of assisted living operations, compliance, resident needs, or best practices for the purpose
235.11 of improving resident quality of care and outcomes in assisted living facilities licensed
235.12 under this chapter in Minnesota as recommended by the advisory council established in
235.13 section 144A.4799., including those projects consistent with criteria in section 144A.4799,
235.14 subdivision 3, paragraph (c). A facility with a provisional license under this chapter is not
235.15 eligible to apply. The balance in the special revenue account as of January 1, 2026, must
235.16 be appropriated for grants within two years, provided there are enough grant requests totaling
235.17 the sum in the account. Thereafter, money in the special revenue account must be
235.18 appropriated annually. The minimum amount of a grant award is $10,000. The commissioner
235.19 may retain up to ten percent of the amount available to cover costs to administer the grants
235.20 under this section.
235.21   Sec. 6. Minnesota Statutes 2024, section 144G.52, subdivision 1, is amended to read:
235.22     Subdivision 1. Definition. For purposes of sections 144G.52 to 144G.55, "termination"
235.23 means:
235.24     (1) a facility-initiated termination of housing provided to the resident under the contract
235.25 an assisted living contract; or
235.26     (2) a facility-initiated termination or nonrenewal of all assisted living services the resident
235.27 receives from the facility under the assisted living contract.
235.28   Sec. 7. Minnesota Statutes 2024, section 144G.52, subdivision 2, is amended to read:
235.29     Subd. 2. Prerequisite to termination of a contract. (a) Before issuing a notice of
235.30 termination of an assisted living contract, a facility must schedule and participate in a meeting
235.31 with the resident and the resident's legal representative and designated representative. The
235.32 purposes of the meeting are to:
  Article 8 Sec. 7.  235
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
236.1      (1) explain in detail the reasons for the proposed termination; and
236.2      (2) identify and offer reasonable accommodations or modifications, interventions, or
236.3  alternatives to avoid the termination or enable the resident to remain in the facility, including
236.4  but not limited to securing services from another provider of the resident's choosing that
236.5  may allow the resident to avoid the termination. A facility is not required to offer
236.6  accommodations, modifications, interventions, or alternatives that fundamentally alter the
236.7  nature of the operation of the facility.
236.8      (b) For a termination pursuant to subdivision 3 or 4, the meeting must be scheduled to
236.9  take place at least seven days before a notice of termination is issued. The facility must
236.10 make reasonable efforts to ensure that the resident, legal representative, and designated
236.11 representative are able to attend the meeting.
236.12     (c) For a termination pursuant to subdivision 5, the meeting must be scheduled to take
236.13 place at least five days before a notice of termination is issued. The facility must make
236.14 reasonable efforts to ensure that the resident, legal representative, and designated
236.15 representative are able to attend the meeting.
236.16     (d) The facility must notify the resident that the resident may invite family members,
236.17 relevant health professionals, a representative of the Office of Ombudsman for Long-Term
236.18 Care, a representative of the Office of Ombudsman for Mental Health and Developmental
236.19 Disabilities, or other persons of the resident's choosing to participate in the meeting. For
236.20 residents who receive home and community-based waiver services under chapter 256S and
236.21 section 256B.49, the facility must notify the resident's case manager of the meeting.
236.22     (d) (e) In the event of an emergency relocation under subdivision 9, where the facility
236.23 intends to issue a notice of termination and an in-person meeting is impractical or impossible,
236.24 the facility must use telephone, video, or other electronic means to conduct and participate
236.25 in the meeting required under this subdivision and rules within Minnesota Rules, chapter
236.26 4659.
236.27   Sec. 8. Minnesota Statutes 2024, section 144G.52, subdivision 3, is amended to read:
236.28     Subd. 3. Termination for nonpayment. (a) A facility may initiate a termination of
236.29 housing because of nonpayment of rent or a termination of services because of nonpayment
236.30 for services. Upon issuance of a notice of termination for nonpayment, the facility must
236.31 inform the resident that public benefits may be available and must provide contact
236.32 information for the Senior LinkAge Line under section 256.975, subdivision 7, or the
236.33 Disability Hub under section 256.01, subdivision 24.
  Article 8 Sec. 8.  236
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
237.1      (b) An interruption to a resident's public benefits that lasts for no more than 60 days
237.2  does not constitute nonpayment.
237.3    Sec. 9. Minnesota Statutes 2024, section 144G.52, subdivision 8, is amended to read:
237.4      Subd. 8. Content of notice of termination. The notice required under subdivision 7
237.5  must contain, at a minimum:
237.6      (1) the effective date of the termination of the assisted living contract;
237.7      (2) a detailed explanation of the basis for the termination, including the clinical or other
237.8  supporting rationale;
237.9      (3) a detailed explanation of the conditions under which a new or amended contract may
237.10 be executed;
237.11     (4) a statement that the resident has the right to appeal the termination by requesting a
237.12 hearing, and information concerning the time frame within which the request must be
237.13 submitted and the contact information for the agency to which the request must be submitted;
237.14     (5) a statement that the facility must participate in a coordinated move to another provider
237.15 or caregiver, as required under section 144G.55;
237.16     (6) the name and contact information of the person employed by the facility with whom
237.17 the resident may discuss the notice of termination;
237.18     (7) information on how to contact the Office of Ombudsman for Long-Term Care and
237.19 the Office of Ombudsman for Mental Health and Developmental Disabilities to request an
237.20 advocate to assist regarding the termination;
237.21     (8) information on how to contact the Senior LinkAge Line under section 256.975,
237.22 subdivision 7, or the Disability Hub under section 256.01, subdivision 24, and an explanation
237.23 that the Senior LinkAge Line and the Disability Hub may provide information about other
237.24 available housing or service options; and
237.25     (9) if the termination is only for services, a statement that the resident may remain in
237.26 the facility and may secure any necessary services from another provider of the resident's
237.27 choosing.
237.28   Sec. 10. Minnesota Statutes 2024, section 144G.54, subdivision 3, is amended to read:
237.29     Subd. 3. Appeals process. (a) The Office of Administrative Hearings must conduct an
237.30 expedited hearing as soon as practicable under this section, but in no event later than 14
237.31 calendar days after the office receives the request, unless the parties agree otherwise or the
  Article 8 Sec. 10.  237
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
238.1  chief administrative law judge deems the timing to be unreasonable, given the complexity
238.2  of the issues presented. For terminations initiated pursuant to section 144G.52, subdivision
238.3  5, the Office of Administrative Hearings must conduct an expedited hearing as soon as
238.4  practicable but in no event later than ten calendar days after the office receives the request,
238.5  unless the parties agree otherwise. The Office of Administrative Hearings has discretion to
238.6  order a continuance.
238.7      (b) The hearing must be held at the facility where the resident lives, unless holding the
238.8  hearing at that location is impractical, the parties agree to hold the hearing at a different
238.9  location, or the chief administrative law judge grants a party's request to appear at another
238.10 location or by telephone or interactive video.
238.11     (c) The hearing is not a formal contested case proceeding, except when determined
238.12 necessary by the chief administrative law judge.
238.13     (d) Parties may but are not required to be represented by counsel. The appearance of a
238.14 party without counsel does not constitute the unauthorized practice of law.
238.15     (e) The hearing shall be limited to the amount of time necessary for the participants to
238.16 expeditiously present the facts about the proposed termination. The administrative law judge
238.17 shall issue a recommendation to the commissioner as soon as practicable, but in no event
238.18 later than ten business days after the hearing related to a termination issued under section
238.19 144G.52, subdivision 3 or 4, or five business days for a hearing related to a termination
238.20 issued under section 144G.52, subdivision 5.
238.21   Sec. 11. Minnesota Statutes 2024, section 144G.54, subdivision 7, is amended to read:
238.22     Subd. 7. Application of chapter 504B to appeals of terminations. A resident may not
238.23 bring an action under chapter 504B to challenge a termination that has occurred and been
238.24 upheld under this section. A facility is entitled to a writ of recovery of premises and order
238.25 to vacate pursuant to section 504B.361 when a termination has been upheld under this
238.26 section and the facility has met its obligation under section 144G.55.
238.27   Sec. 12. Minnesota Statutes 2024, section 144G.55, subdivision 1, is amended to read:
238.28     Subdivision 1. Duties of facility. (a) If a facility terminates an assisted living contract,
238.29 reduces services to the extent that a resident needs to move or obtain a new service provider
238.30 or the facility has its license restricted under section 144G.20, or the facility conducts a
238.31 planned closure under section 144G.57, the facility:
  Article 8 Sec. 12.  238
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239.1      (1) must ensure, subject to paragraph (c), a coordinated move to a safe location that is
239.2  appropriate for the resident and that is identified by the facility prior to any hearing under
239.3  section 144G.54 and document the same;
239.4      (2) must ensure a coordinated move of the resident to an appropriate service provider
239.5  identified by the facility prior to any hearing under section 144G.54, provided services are
239.6  still needed and desired by the resident; and
239.7      (3) must consult and cooperate with the resident, legal representative, designated
239.8  representative, case manager for a resident who receives home and community-based waiver
239.9  services under chapter 256S and section 256B.49, relevant health professionals, and any
239.10 other persons of the resident's choosing to make arrangements to move the resident, including
239.11 consideration of the resident's goals and document the same.
239.12     (b) A facility may satisfy the requirements of paragraph (a), clauses (1) and (2), by
239.13 moving the resident to a different location within the same facility, if appropriate for the
239.14 resident.
239.15     (c) A resident may decline to move to the location the facility identifies or to accept
239.16 services from a service provider the facility identifies, and may choose instead to move to
239.17 a location of the resident's choosing or receive services from a service provider of the
239.18 resident's choosing within the timeline prescribed in the termination notice.
239.19     (d) A facility has met its obligations under this section, following a termination completed
239.20 in accordance with section 144G.52 if:
239.21     (1) for residents of facilities in the seven-county metropolitan area, the facility identifies
239.22 at least three other facilities willing and able to meet the individual's service needs, one of
239.23 which is within the seven-county metropolitan area;
239.24     (2) for residents of facilities outside of the seven-county metropolitan area, the facility
239.25 identifies at least two other facilities willing and able to meet the individual's service needs,
239.26 and to the extent such facilities exist, one must be within two hours or 120 miles from the
239.27 resident's current location; and
239.28     (3) the facility documents, in writing, the resident or the resident's designated
239.29 representative has:
239.30     (i) consented to move; or
239.31     (ii) expressly refused to relocate to any of the facilities identified in accordance with
239.32 this subdivision.
  Article 8 Sec. 12.  239
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240.1      (e) Sixty days before the facility plans to reduce or eliminate one or more services for
240.2  a particular resident, the facility must provide written notice of the reduction that includes:
240.3      (1) a detailed explanation of the reasons for the reduction and the date of the reduction;
240.4      (2) the contact information for the Office of Ombudsman for Long-Term Care, the Office
240.5  of Ombudsman for Mental Health and Developmental Disabilities, and the name and contact
240.6  information of the person employed by the facility with whom the resident may discuss the
240.7  reduction of services;
240.8      (3) a statement that if the services being reduced are still needed by the resident, the
240.9  resident may remain in the facility and seek services from another provider; and
240.10     (4) a statement that if the reduction makes the resident need to move, the facility must
240.11 participate in a coordinated move of the resident to another provider or caregiver, as required
240.12 under this section.
240.13     (e) (f) In the event of an unanticipated reduction in services caused by extraordinary
240.14 circumstances, the facility must provide the notice required under paragraph (d) (e) as soon
240.15 as possible.
240.16     (f) (g) If the facility, a resident, a legal representative, or a designated representative
240.17 determines that a reduction in services will make a resident need to move to a new location,
240.18 the facility must ensure a coordinated move in accordance with this section, and must provide
240.19 notice to the Office of Ombudsman for Long-Term Care.
240.20     (g) (h) Nothing in this section affects a resident's right to remain in the facility and seek
240.21 services from another provider.
240.22   Sec. 13. [145D.40] DEFINITIONS.
240.23     Subdivision 1. Application. For purposes of sections 145D.40 to 145D.41, the following
240.24 terms have the meanings given.
240.25     Subd. 2. Assisted living facility. "Assisted living facility" has the meaning given in
240.26 section 144G.08, subdivision 7. Assisted living facility includes an assisted living facility
240.27 with dementia care as defined in section 144G.08, subdivision 8.
240.28     Subd. 3. Nursing home. "Nursing home" means a facility licensed as a nursing home
240.29 under chapter 144A.
240.30     Subd. 4. Ownership or control. "Ownership or control" means the assumption of
240.31 governance or the acquisition of an ownership interest or direct or indirect control by a
240.32 for-profit entity over the operations of a nonprofit nursing home or a nonprofit assisted
  Article 8 Sec. 13.  240
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
241.1  living facility through any means, including but not limited to a purchase, lease, transfer,
241.2  exchange, option, conveyance, creation of a joint venture, or other manner of acquisition
241.3  of assets, governance, an ownership interest, or direct or indirect control of a nonprofit
241.4  nursing home or a nonprofit assisted living facility.
241.5    Sec. 14. [145D.41] NOTICE OF CERTAIN ACQUISITIONS OF NURSING HOMES
241.6  AND ASSISTED LIVING FACILITIES.
241.7      Subdivision 1. Notice. At least 120 days prior to the transfer of ownership or control of
241.8  a nonprofit nursing home or nonprofit assisted living facility to a for-profit entity, the nursing
241.9  home or assisted living facility must provide written notice to the commissioner of health
241.10 and the commissioner of human services of its intent to transfer ownership or control to a
241.11 for-profit entity.
241.12     Subd. 2. Information. Together with the notice, the for-profit entity seeking to acquire
241.13 ownership or control of the nonprofit nursing home or nonprofit assisted living facility must
241.14 provide to the attorney general, commissioner of health, and commissioner of human services
241.15 the names of each individual with an interest in the for-profit entity and the percentage of
241.16 interest each individual holds in the for-profit entity.
241.17     EFFECTIVE DATE. This section is effective July 1, 2025, and applies to transfers of
241.18 ownership or control occurring on or after July 1, 2025.
241.19   Sec. 15. Minnesota Statutes 2024, section 256B.092, subdivision 1a, as amended by Laws
241.20 2025, chapter 38, article 1, section 16, is amended to read:
241.21     Subd. 1a. Case management services. (a) Each recipient of a home and community-based
241.22 waiver shall be provided case management services by qualified vendors as described in
241.23 the federally approved waiver application.
241.24     (b) Case management service activities provided to or arranged for a person include:
241.25     (1) development of the person-centered support plan under subdivision 1b;
241.26     (2) informing the individual or the individual's legal guardian or conservator, or parent
241.27 if the person is a minor, of service options, including all service options available under the
241.28 waiver plan;
241.29     (3) consulting with relevant medical experts or service providers;
241.30     (4) assisting the person in the identification of potential providers of chosen services,
241.31 including:
  Article 8 Sec. 15.  241
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
242.1      (i) providers of services provided in a non-disability-specific setting;
242.2      (ii) employment service providers;
242.3      (iii) providers of services provided in settings that are not controlled by a provider; and
242.4      (iv) providers of financial management services;
242.5      (5) assisting the person to access services and assisting in appeals under section 256.045;
242.6      (6) coordination of services, if coordination is not provided by another service provider;
242.7      (7) evaluation and monitoring of the services identified in the support plan, which must
242.8  incorporate at least one annual face-to-face visit by the case manager with each person; and
242.9      (8) reviewing support plans and providing the lead agency with recommendations for
242.10 service authorization based upon the individual's needs identified in the support plan.; and
242.11     (9) assisting and cooperating with facilities licensed under chapter 144G with the
242.12 licensee's obligations under section 144G.55.
242.13     (c) Case management service activities that are provided to the person with a
242.14 developmental disability shall be provided directly by county agencies or under contract.
242.15 If a county agency contracts for case management services, the county agency must provide
242.16 each recipient of home and community-based services who is receiving contracted case
242.17 management services with the contact information the recipient may use to file a grievance
242.18 with the county agency about the quality of the contracted services the recipient is receiving
242.19 from a county-contracted case manager. If a county agency provides case management
242.20 under contracts with other individuals or agencies and the county agency utilizes a
242.21 competitive proposal process for the procurement of contracted case management services,
242.22 the competitive proposal process must include evaluation criteria to ensure that the county
242.23 maintains a culturally responsive program for case management services adequate to meet
242.24 the needs of the population of the county. For the purposes of this section, "culturally
242.25 responsive program" means a case management services program that: (1) ensures effective,
242.26 equitable, comprehensive, and respectful quality care services that are responsive to
242.27 individuals within a specific population's values, beliefs, practices, health literacy, preferred
242.28 language, and other communication needs; and (2) is designed to address the unique needs
242.29 of individuals who share a common language or racial, ethnic, or social background.
242.30     (d) Case management services must be provided by a public or private agency that is
242.31 enrolled as a medical assistance provider determined by the commissioner to meet all of
242.32 the requirements in the approved federal waiver plans. Case management services must not
242.33 be provided to a recipient by a private agency that has a financial interest in the provision
  Article 8 Sec. 15.  242
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
243.1  of any other services included in the recipient's support plan. For purposes of this section,
243.2  "private agency" means any agency that is not identified as a lead agency under section
243.3  256B.0911, subdivision 10.
243.4      (e) Case managers are responsible for service provisions listed in paragraphs (a) and
243.5  (b). Case managers shall collaborate with consumers, families, legal representatives, and
243.6  relevant medical experts and service providers in the development and annual review of the
243.7  person-centered support plan and habilitation plan.
243.8      (f) For persons who need a positive support transition plan as required in chapter 245D,
243.9  the case manager shall participate in the development and ongoing evaluation of the plan
243.10 with the expanded support team. At least quarterly, the case manager, in consultation with
243.11 the expanded support team, shall evaluate the effectiveness of the plan based on progress
243.12 evaluation data submitted by the licensed provider to the case manager. The evaluation must
243.13 identify whether the plan has been developed and implemented in a manner to achieve the
243.14 following within the required timelines:
243.15     (1) phasing out the use of prohibited procedures;
243.16     (2) acquisition of skills needed to eliminate the prohibited procedures within the plan's
243.17 timeline; and
243.18     (3) accomplishment of identified outcomes.
243.19 If adequate progress is not being made, the case manager shall consult with the person's
243.20 expanded support team to identify needed modifications and whether additional professional
243.21 support is required to provide consultation.
243.22     (g) The Department of Human Services shall offer ongoing education in case management
243.23 to case managers. Case managers shall receive no less than 20 hours of case management
243.24 education and disability-related training each year. The education and training must include
243.25 person-centered planning, informed choice, informed decision making, cultural competency,
243.26 employment planning, community living planning, self-direction options, and use of
243.27 technology supports. Case managers must annually complete an informed choice curriculum
243.28 and pass a competency evaluation, in a form determined by the commissioner, on informed
243.29 decision-making standards. By August 1, 2024, all case managers must complete an
243.30 employment support training course identified by the commissioner of human services. For
243.31 case managers hired after August 1, 2024, this training must be completed within the first
243.32 six months of providing case management services. For the purposes of this section,
243.33 "person-centered planning" or "person-centered" has the meaning given in section 256B.0911,
  Article 8 Sec. 15.  243
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
244.1  subdivision 10. Case managers must document completion of training in a system identified
244.2  by the commissioner.
244.3    Sec. 16. Minnesota Statutes 2024, section 256B.49, subdivision 13, as amended by Laws
244.4  2025, chapter 38, article 1, section 18, is amended to read:
244.5      Subd. 13. Case management. (a) Each recipient of a home and community-based waiver
244.6  shall be provided case management services by qualified vendors as described in the federally
244.7  approved waiver application. The case management service activities provided must include:
244.8      (1) finalizing the person-centered written support plan within the timelines established
244.9  by the commissioner and section 256B.0911, subdivision 29;
244.10     (2) informing the recipient or the recipient's legal guardian or conservator of service
244.11 options, including all service options available under the waiver plans;
244.12     (3) assisting the recipient in the identification of potential service providers of chosen
244.13 services, including:
244.14     (i) available options for case management service and providers;
244.15     (ii) providers of services provided in a non-disability-specific setting;
244.16     (iii) employment service providers;
244.17     (iv) providers of services provided in settings that are not community residential settings;
244.18 and
244.19     (v) providers of financial management services;
244.20     (4) assisting the recipient to access services and assisting with appeals under section
244.21 256.045; and
244.22     (5) coordinating, evaluating, and monitoring of the services identified in the service
244.23 plan.; and
244.24     (6) assisting and cooperating with facilities licensed under chapter 144G with the
244.25 licensee's obligations under section 144G.55.
244.26     (b) The case manager may delegate certain aspects of the case management service
244.27 activities to another individual provided there is oversight by the case manager. The case
244.28 manager may not delegate those aspects which require professional judgment including:
244.29     (1) finalizing the person-centered support plan;
  Article 8 Sec. 16.  244
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
245.1      (2) ongoing assessment and monitoring of the person's needs and adequacy of the
245.2  approved person-centered support plan; and
245.3      (3) adjustments to the person-centered support plan.
245.4      (c) Case management services must be provided by a public or private agency that is
245.5  enrolled as a medical assistance provider determined by the commissioner to meet all of
245.6  the requirements in the approved federal waiver plans. If a county agency provides case
245.7  management under contracts with other individuals or agencies and the county agency
245.8  utilizes a competitive proposal process for the procurement of contracted case management
245.9  services, the competitive proposal process must include evaluation criteria to ensure that
245.10 the county maintains a culturally responsive program for case management services adequate
245.11 to meet the needs of the population of the county. For the purposes of this section, "culturally
245.12 responsive program" means a case management services program that: (1) ensures effective,
245.13 equitable, comprehensive, and respectful quality care services that are responsive to
245.14 individuals within a specific population's values, beliefs, practices, health literacy, preferred
245.15 language, and other communication needs; and (2) is designed to address the unique needs
245.16 of individuals who share a common language or racial, ethnic, or social background.
245.17     (d) Case management services must not be provided to a recipient by a private agency
245.18 that has any financial interest in the provision of any other services included in the recipient's
245.19 support plan. For purposes of this section, "private agency" means any agency that is not
245.20 identified as a lead agency under section 256B.0911, subdivision 10.
245.21     (e) For persons who need a positive support transition plan as required in chapter 245D,
245.22 the case manager shall participate in the development and ongoing evaluation of the plan
245.23 with the expanded support team. At least quarterly, the case manager, in consultation with
245.24 the expanded support team, shall evaluate the effectiveness of the plan based on progress
245.25 evaluation data submitted by the licensed provider to the case manager. The evaluation must
245.26 identify whether the plan has been developed and implemented in a manner to achieve the
245.27 following within the required timelines:
245.28     (1) phasing out the use of prohibited procedures;
245.29     (2) acquisition of skills needed to eliminate the prohibited procedures within the plan's
245.30 timeline; and
245.31     (3) accomplishment of identified outcomes.
  Article 8 Sec. 16.  245
  06/07/25  REVISOR       DTT/RC  25-05696  as introduced
246.1  If adequate progress is not being made, the case manager shall consult with the person's
246.2  expanded support team to identify needed modifications and whether additional professional
246.3  support is required to provide consultation.
246.4      (f) The Department of Human Services shall offer ongoing education in case management
246.5  to case managers. Case managers shall receive no less than 20 hours of case management
246.6  education and disability-related training each year. The education and training must include
246.7  person-centered planning, informed choice, informed decision making, cultural competency,
246.8  employment planning, community living planning, self-direction options, and use of
246.9  technology supports. Case managers must annually complete an informed choice curriculum
246.10 and pass a competency evaluation, in a form determined by the commissioner, on informed
246.11 decision-making standards. By August 1, 2024, all case managers must complete an
246.12 employment support training course identified by the commissioner of human services. For
246.13 case managers hired after August 1, 2024, this training must be completed within the first
246.14 six months of providing case management services. For the purposes of this section,
246.15 "person-centered planning" or "person-centered" has the meaning given in section 256B.0911,
246.16 subdivision 10. Case managers shall document completion of training in a system identified
246.17 by the commissioner.
246.18ARTICLE 9
246.19MISCELLANEOUS
246.20   Section 1. Minnesota Statutes 2024, section 144.0724, subdivision 11, as amended by
246.21 Laws 2025, chapter 38, article 2, section 5, is amended to read:
246.22     Subd. 11. Nursing facility level of care. (a) For purposes of medical assistance payment
246.23 of long-term care services, a recipient must be determined, using assessments defined in
246.24 subdivision 4, to meet one of the following nursing facility level of care criteria:
246.25     (1) the person requires formal clinical monitoring at least once per day;
246.26     (2) the person needs the assistance of another person or constant supervision to begin
246.27 and complete at least four of the following activities of living: bathing, bed mobility, dressing,
246.28 eating, grooming, toileting, transferring, and walking;
246.29     (3) the person needs the assistance of another person or constant supervision to begin
246.30 and complete toileting, transferring, or positioning and the assistance cannot be scheduled;
246.31     (4) the person has significant difficulty with memory, using information, daily decision
246.32 making, or behavioral needs that require intervention;
  Article 9 Section 1.  246
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
247.1      (5) the person has had a qualifying nursing facility stay of at least 90 days;
247.2      (6) the person meets the nursing facility level of care criteria determined 90 days after
247.3  admission or on the first quarterly assessment after admission, whichever is later; or
247.4      (7) the person is determined to be at risk for nursing facility admission or readmission
247.5  through a face-to-face long-term care consultation assessment as specified in section
247.6  256B.0911, subdivision 17 to 21, 23, 24, 27, or 28, by a county, tribe, or managed care
247.7  organization under contract with the Department of Human Services. The person is
247.8  considered at risk under this clause if the person currently lives alone or will live alone or
247.9  be homeless without the person's current housing and also meets one of the following criteria:
247.10     (i) the person has experienced a fall resulting in a fracture;
247.11     (ii) the person has been determined to be at risk of maltreatment or neglect, including
247.12 self-neglect; or
247.13     (iii) the person has a sensory impairment that substantially impacts functional ability
247.14 and maintenance of a community residence.
247.15     (b) The assessment used to establish medical assistance payment for nursing facility
247.16 services must be the most recent assessment performed under subdivision 4, paragraph (b),
247.17 that occurred no more than 90 calendar days before the effective date of medical assistance
247.18 eligibility for payment of long-term care services. In no case shall medical assistance payment
247.19 for long-term care services occur prior to the date of the determination of nursing facility
247.20 level of care.
247.21     (c) The assessment used to establish medical assistance payment for long-term care
247.22 services provided under chapter 256S and section 256B.49 and alternative care payment
247.23 for services provided under section 256B.0913 must be the most recent face-to-face
247.24 assessment performed under section 256B.0911, subdivisions 17 to 21, 23, 24, 27, or 28,
247.25 that occurred no more than 60 one calendar days year before the effective date of medical
247.26 assistance eligibility for payment of long-term care services.
247.27   Sec. 2. Laws 2024, chapter 125, article 4, section 9, subdivision 1, is amended to read:
247.28     Subdivision 1. Establishment; purpose. The Mentally Ill and Dangerous Civil
247.29 Commitment Reform Task Force is established to:
247.30     (1) evaluate current statutes related to mentally ill and dangerous civil commitments
247.31 and;
  Article 9 Sec. 2.  247
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
248.1      (2) evaluate current statutes related to the process by which a former patient may seek
248.2  an order to expunge or vacate a prior commitment as mentally ill and dangerous; and
248.3      (3) develop recommendations to optimize the use of state-operated mental health
248.4  resources and increase equitable access and outcomes for patients.
248.5    Sec. 3. Laws 2024, chapter 125, article 4, section 9, is amended by adding a subdivision
248.6  to read:
248.7      Subd. 7a. Duties; expungements and vacaturs. The task force must:
248.8      (1) analyze current trends in civil commitments as mentally ill and dangerous,
248.9  expungements, and vacaturs, including but not limited to the frequency of expungements
248.10 and vacaturs in Minnesota as compared to other jurisdictions;
248.11     (2) review national practices and criteria for expunging and vacating civil commitments
248.12 as mentally ill and dangerous;
248.13     (3) develop recommended statutory changes necessary to provide clear direction to
248.14 former patients who are seeking to file a motion to expunge or vacate a civil commitment
248.15 as mentally ill and dangerous;
248.16     (4) develop recommended statutory changes necessary to provide clear direction, criteria
248.17 to apply, and evidentiary standards to the courts when considering a motion from a former
248.18 patient to expunge or vacate a civil commitment as mentally ill and dangerous; and
248.19     (5) develop recommended statutory changes to provide clear direction to former patients
248.20 and the courts to address situations in which an individual is civilly committed as mentally
248.21 ill and dangerous and is later determined to not have an organic disorder of the brain or a
248.22 substantial psychiatric disorder of thought, mood, perception, orientation, or memory.
248.23   Sec. 4. Laws 2024, chapter 125, article 4, section 9, subdivision 8, is amended to read:
248.24     Subd. 8. Report required. (a) By August 1, 2025, the task force shall submit to the
248.25 chairs and ranking minority members of the legislative committees with jurisdiction over
248.26 mentally ill and dangerous civil commitments a written report that includes the outcome of
248.27 the duties in subdivision 7, including but not limited to recommended statutory changes.
248.28     (b) By August 1, 2026, the task force shall submit to the chairs and ranking minority
248.29 members of the legislative committees with jurisdiction over civil commitments a written
248.30 report that includes the outcome of the duties in subdivision 7a, including but not limited
248.31 to recommended statutory changes.
  Article 9 Sec. 4.  248
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
249.1    Sec. 5. Laws 2024, chapter 125, article 4, section 9, subdivision 9, is amended to read:
249.2      Subd. 9. Expiration. The task force expires January 1, 2026 2027.
249.3    Sec. 6. REVISOR INSTRUCTION.
249.4      The revisor of statutes shall change the term "emotional disturbance" or similar terms
249.5  to "mental illness" or similar terms wherever the terms appear in Minnesota Statutes. The
249.6  revisor may make technical and other necessary changes to sentence structure to preserve
249.7  the meaning of the text.
249.8ARTICLE 10
249.9DEPARTMENT OF HUMAN SERVICES PROGRAM INTEGRITY
249.10   Section 1. Minnesota Statutes 2024, section 245A.03, is amended by adding a subdivision
249.11 to read:
249.12     Subd. 7a. Discretionary temporary licensing moratorium. (a) The commissioner must
249.13 not accept an application from or issue an initial license for an individual, organization, or
249.14 government entity seeking licensure under this chapter and must not add a new service to
249.15 an existing license when the commissioner determines that exceptional growth in applications
249.16 for licensure or requests to add new services exceeds the determined need for service
249.17 capacity. The determined need for service capacity may be limited to a specific region,
249.18 service focus, or other factors as determined by the commissioner. A temporary licensing
249.19 moratorium issued under this subdivision is effective for a period of up to 24 months from
249.20 the date the commissioner issues the moratorium.
249.21     (b) Any applicant that will not receive a license due to a temporary licensing moratorium
249.22 issued under paragraph (a) may apply for a refund of licensing application fees for up to
249.23 one year from the date the commissioner issues the moratorium.
249.24     (c) The commissioner must notify the chairs and ranking minority members of the
249.25 legislative committees with jurisdiction over health and human services at least 30 days
249.26 prior to issuing a temporary moratorium under this subdivision and publish notice of the
249.27 moratorium on the department's website. The notice must include:
249.28     (1) a list of all license types to which the moratorium will apply;
249.29     (2) the proposed start date of the moratorium; and
249.30     (3) the anticipated duration of the moratorium.
  Article 10 Section 1.  249
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
250.1      (d) The commissioner must establish and make publicly available the processes and
250.2  criteria the commissioner will use to grant exceptions to a temporary moratorium issued
250.3  under this subdivision.
250.4    Sec. 2. Minnesota Statutes 2024, section 245A.04, subdivision 7, as amended by Laws
250.5  2025, chapter 38, article 5, section 6, is amended to read:
250.6      Subd. 7. Grant of license; license extension. (a) If the commissioner determines that
250.7  the program complies with all applicable rules and laws, the commissioner shall issue a
250.8  license consistent with this section or, if applicable, a temporary change of ownership license
250.9  under section 245A.043. At minimum, the license shall state:
250.10     (1) the name of the license holder;
250.11     (2) the address of the program;
250.12     (3) the effective date and expiration date of the license;
250.13     (4) the type of license, and the specific service the license holder is licensed to provide;
250.14     (5) the maximum number and ages of persons that may receive services from the program;
250.15 and
250.16     (6) any special conditions of licensure.
250.17     (b) The commissioner may issue a license for a period not to exceed two years if:
250.18     (1) the commissioner is unable to conduct the observation required by subdivision 4,
250.19 paragraph (a), clause (3), because the program is not yet operational;
250.20     (2) certain records and documents are not available because persons are not yet receiving
250.21 services from the program; and
250.22     (3) the applicant complies with applicable laws and rules in all other respects.
250.23     (c) A decision by the commissioner to issue a license does not guarantee that any person
250.24 or persons will be placed or cared for in the licensed program.
250.25     (d) Except as provided in paragraphs (i) and (j), the commissioner shall not issue a
250.26 license if the applicant, license holder, or an affiliated controlling individual has:
250.27     (1) been disqualified and the disqualification was not set aside and no variance has been
250.28 granted;
250.29     (2) been denied a license under this chapter or chapter 142B within the past two years;
  Article 10 Sec. 2.  250
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
251.1      (3) had a license issued under this chapter or chapter 142B revoked within the past five
251.2  years; or
251.3      (4) failed to submit the information required of an applicant under subdivision 1,
251.4  paragraph (f), (g), or (h), after being requested by the commissioner.
251.5      When a license issued under this chapter or chapter 142B is revoked, the license holder
251.6  and each affiliated controlling individual with a revoked license may not hold any license
251.7  under chapter 245A for five years following the revocation, and other licenses held by the
251.8  applicant or license holder or licenses affiliated with each controlling individual shall also
251.9  be revoked.
251.10     (e) Notwithstanding paragraph (d), the commissioner may elect not to revoke a license
251.11 affiliated with a license holder or controlling individual that had a license revoked within
251.12 the past five years if the commissioner determines that (1) the license holder or controlling
251.13 individual is operating the program in substantial compliance with applicable laws and rules
251.14 and (2) the program's continued operation is in the best interests of the community being
251.15 served.
251.16     (f) Notwithstanding paragraph (d), the commissioner may issue a new license in response
251.17 to an application that is affiliated with an applicant, license holder, or controlling individual
251.18 that had an application denied within the past two years or a license revoked within the past
251.19 five years if the commissioner determines that (1) the applicant or controlling individual
251.20 has operated one or more programs in substantial compliance with applicable laws and rules
251.21 and (2) the program's operation would be in the best interests of the community to be served.
251.22     (g) In determining whether a program's operation would be in the best interests of the
251.23 community to be served, the commissioner shall consider factors such as the number of
251.24 persons served, the availability of alternative services available in the surrounding
251.25 community, the management structure of the program, whether the program provides
251.26 culturally specific services, and other relevant factors.
251.27     (h) The commissioner shall not issue or reissue a license under this chapter if an individual
251.28 living in the household where the services will be provided as specified under section
251.29 245C.03, subdivision 1, has been disqualified and the disqualification has not been set aside
251.30 and no variance has been granted.
251.31     (i) Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license issued
251.32 under this chapter has been suspended or revoked and the suspension or revocation is under
251.33 appeal, the program may continue to operate pending a final order from the commissioner.
251.34 If the license under suspension or revocation will expire before a final order is issued, a
  Article 10 Sec. 2.  251
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
252.1  temporary provisional license may be issued provided any applicable license fee is paid
252.2  before the temporary provisional license is issued.
252.3      (j) Notwithstanding paragraph (i), when a revocation is based on the disqualification of
252.4  a controlling individual or license holder, and the controlling individual or license holder
252.5  is ordered under section 245C.17 to be immediately removed from direct contact with
252.6  persons receiving services or is ordered to be under continuous, direct supervision when
252.7  providing direct contact services, the program may continue to operate only if the program
252.8  complies with the order and submits documentation demonstrating compliance with the
252.9  order. If the disqualified individual fails to submit a timely request for reconsideration, or
252.10 if the disqualification is not set aside and no variance is granted, the order to immediately
252.11 remove the individual from direct contact or to be under continuous, direct supervision
252.12 remains in effect pending the outcome of a hearing and final order from the commissioner.
252.13     (k) Unless otherwise specified by statute, all licenses issued under this chapter expire
252.14 at 12:01 a.m. on the day after the expiration date stated on the license. A license holder must
252.15 comply with the requirements in section 245A.10 and be reissued a new license to operate
252.16 the program or the program must not be operated after the expiration date. Adult foster care,
252.17 family adult day services, child foster residence setting, and community residential services
252.18 license holders must apply for and be granted a new license to operate the program or the
252.19 program must not be operated after the expiration date. Upon implementation of the provider
252.20 licensing and reporting hub, licenses may be issued each calendar year.
252.21     (l) The commissioner shall not issue or reissue a license under this chapter if it has been
252.22 determined that a Tribal licensing authority has established jurisdiction to license the program
252.23 or service.
252.24     (m) The commissioner of human services may coordinate and share data with the
252.25 commissioner of children, youth, and families to enforce this section.
252.26     (n) For substance use disorder treatment programs, for the purposes of paragraph (a),
252.27 clause (5), the maximum number of persons who may receive services from the program
252.28 includes persons served at satellite locations.
252.29     EFFECTIVE DATE. This section is effective July 1, 2025, except paragraph (n), which
252.30 is effective January 1, 2026.
  Article 10 Sec. 2.  252
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
253.1    Sec. 3. Minnesota Statutes 2024, section 245A.043, is amended by adding a subdivision
253.2  to read:
253.3      Subd. 2a. Review of change in ownership. (a) After a change in ownership under
253.4  subdivision 2, paragraph (a), the commissioner may complete a review for all new license
253.5  holders within 12 months after the new license is issued.
253.6      (b) For all license holders subject to the exception in subdivision 2, paragraph (b), the
253.7  license holder must notify the commissioner of the date of the change in controlling
253.8  individuals pursuant to section 245A.04, subdivision 7a, and the commissioner may complete
253.9  a review within 12 months following the change.
253.10   Sec. 4. Minnesota Statutes 2024, section 245A.10, subdivision 1, is amended to read:
253.11     Subdivision 1. Application or license fee required; programs exempt from fee. (a)
253.12 Unless exempt under paragraph (b), The commissioner shall charge a fee for evaluation of
253.13 applications and inspection of programs which are licensed under this chapter.
253.14     (b) Except as provided under subdivision 2, no application or license fee shall be charged
253.15 for a child foster residence setting, adult foster care, or a community residential setting.
253.16     EFFECTIVE DATE. This section is effective January 1, 2026.
253.17   Sec. 5. Minnesota Statutes 2024, section 245A.10, subdivision 2, is amended to read:
253.18     Subd. 2. County fees for applications and licensing inspections Application or license
253.19 inspection fee required; programs with county oversight. (a) For purposes of adult foster
253.20 care and child foster residence setting licensing, family adult day services, family adult
253.21 foster care, and licensing the physical plant of a community residential setting or residential
253.22 services facility, under this chapter, a county agency may the commissioner shall charge a
253.23 fee to a corporate applicant or corporate license holder to recover the actual cost for the
253.24 evaluation of licensing licenses and inspections, not to exceed $500 of programs in the
253.25 amount of $2,100 annually.
253.26     (b) Counties may elect to reduce or waive the fees in paragraph (a) under the following
253.27 circumstances:
253.28     (1) in cases of financial hardship;
253.29     (2) if the county has a shortage of providers in the county's area; or
253.30     (3) for new providers.
253.31     EFFECTIVE DATE. This section is effective January 1, 2026.
  Article 10 Sec. 5.  253
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
254.1    Sec. 6. Minnesota Statutes 2024, section 245A.10, subdivision 3, is amended to read:
254.2      Subd. 3. Application fee for initial license or certification. (a) Except as provided in
254.3  paragraphs (c) and (d), for fees required under subdivision 1, an applicant for an initial
254.4  license or certification issued by the commissioner shall submit a $500 $2,100 application
254.5  fee with each new application required under this subdivision. An applicant for an initial
254.6  day services facility license under chapter 245D shall submit a $250 application fee with
254.7  each new application. The application fee shall not be prorated, is nonrefundable, and is in
254.8  lieu of the annual license or certification fee that expires on December 31. The commissioner
254.9  shall not process an application until the application fee is paid.
254.10     (b) Except as provided in paragraph (c), an applicant shall apply for a license to provide
254.11 services at a specific location.
254.12     (c) For a license to provide home and community-based services to persons with
254.13 disabilities or age 65 and older under chapter 245D, an applicant shall submit an application
254.14 to provide services statewide. For fees required under subdivision 1, an applicant for an
254.15 initial license issued by the commissioner to provide home and community-based services
254.16 under chapter 245D shall submit a $4,200 application fee with each new application.
254.17     (d) For fees required under subdivision 1, an applicant for an initial license or certification
254.18 issued by the commissioner for children's residential facility or mental health clinic licensure
254.19 or certification shall submit a $500 application fee with each new application required under
254.20 this subdivision.
254.21     EFFECTIVE DATE. This section is effective January 1, 2026.
254.22   Sec. 7. Minnesota Statutes 2024, section 245A.10, is amended by adding a subdivision to
254.23 read:
254.24     Subd. 3a. Fee for change of ownership exception. (a) A license holder must submit a
254.25 fee of $2,100 for each license subject to the change in ownership exception under section
254.26 245A.043, subdivision 2, paragraph (b).
254.27     (b) License holders under chapter 245D must submit a fee of $4,200 for each license
254.28 subject to the change in ownership exception under section 245A.043, subdivision 2,
254.29 paragraph (b).
254.30     (c) A license holder for a children's residential facility must submit a fee of $500 for
254.31 each license subject to the change in ownership exception under section 245A.043,
254.32 subdivision 2, paragraph (b).
  Article 10 Sec. 7.  254
  06/07/25  REVISOR       DTT/RC  25-05696  as introduced
255.1      EFFECTIVE DATE. This section is effective January 1, 2026.
255.2    Sec. 8. Minnesota Statutes 2024, section 245A.10, subdivision 4, is amended to read:
255.3      Subd. 4. License or certification fee for certain programs. (a)(1) A program licensed
255.4  to provide one or more of the home and community-based services and supports identified
255.5  under chapter 245D to persons with disabilities or age 65 and older, shall pay an annual
255.6  nonrefundable license fee based on revenues derived from the provision of services that
255.7  would require licensure under chapter 245D during the calendar year immediately preceding
255.8  the year in which the license fee is paid, according to the following schedule:
255.9  License Holder Annual Revenue  License Fee
255.10$200
255.11 less than or equal to $10,000  $250
255.12 greater than $10,000 but less than or  $300
255.13 equal to $25,000  $375
255.14 greater than $25,000 but less than or  $400
255.15 equal to $50,000  $500
255.16 greater than $50,000 but less than or  $500
255.17 equal to $100,000  $625
255.18 greater than $100,000 but less than or  $600
255.19 equal to $150,000  $750
255.20 greater than $150,000 but less than or  $800
255.21 equal to $200,000  $1,000
255.22 greater than $200,000 but less than or  $1,000
255.23 equal to $250,000  $1,250
255.24 greater than $250,000 but less than or  $1,200
255.25 equal to $300,000  $1,500
255.26 greater than $300,000 but less than or  $1,400
255.27 equal to $350,000  $1,750
255.28 greater than $350,000 but less than or  $1,600
255.29 equal to $400,000  $2,000
255.30 greater than $400,000 but less than or  $1,800
255.31 equal to $450,000  $2,250
255.32 greater than $450,000 but less than or  $2,000
255.33 equal to $500,000  $2,500
255.34 greater than $500,000 but less than or  $2,250
255.35 equal to $600,000  $2,850
255.36 greater than $600,000 but less than or  $2,500
255.37 equal to $700,000  $3,200
255.38 greater than $700,000 but less than or  $2,750
255.39 equal to $800,000  $3,600
255.40 greater than $800,000 but less than or  $3,000
255.41 equal to $900,000  $3,900
  Article 10 Sec. 8.  255
  06/07/25  REVISOR       DTT/RC  25-05696  as introduced
256.1  greater than $900,000 but less than or  $3,250
256.2  equal to $1,000,000  $4,250
256.3  greater than $1,000,000 but less than or       $3,500
256.4  equal to $1,250,000  $4,550
256.5  greater than $1,250,000 but less than or       $3,750
256.6  equal to $1,500,000  $4,900
256.7  greater than $1,500,000 but less than or       $4,000
256.8  equal to $1,750,000  $5,200
256.9  greater than $1,750,000 but less than or       $4,250
256.10 equal to $2,000,000  $5,500
256.11 greater than $2,000,000 but less than or       $4,500
256.12 equal to $2,500,000  $5,900
256.13 greater than $2,500,000 but less than or       $4,750
256.14 equal to $3,000,000  $6,200
256.15 greater than $3,000,000 but less than or       $5,000
256.16 equal to $3,500,000  $6,500
256.17 greater than $3,500,000 but less than or       $5,500
256.18 equal to $4,000,000  $7,200
256.19 greater than $4,000,000 but less than or       $6,000
256.20 equal to $4,500,000  $7,800
256.21 greater than $4,500,000 but less than or       $6,500
256.22 equal to $5,000,000  $9,000
256.23 greater than $5,000,000 but less than or       $7,000
256.24 equal to $7,500,000  $10,000
256.25 greater than $7,500,000 but less than or       $8,500
256.26 equal to $10,000,000  $14,000
256.27 greater than $10,000,000 but less than or      $10,000
256.28 equal to $12,500,000  $18,000
256.29 greater than $12,500,000 but less than or      $14,000
256.30 equal to $15,000,000  $25,000
256.31 greater than $15,000,000 but less than or      $18,000
256.32 equal to $17,500,000  $28,000
256.33 greater than $17,500,000 but less than
256.34 $20,000,000  $32,000
256.35 greater than $20,000,000 but less than
256.36 $25,000,000  $36,000
256.37 greater than $25,000,000 but less than
256.38 $30,000,000  $45,000
256.39 greater than $30,000,000 but less than
256.40 $35,000,000  $55,000
256.41 greater than $35,000,000  $75,000
256.42     (2) If requested, the license holder shall provide the commissioner information to verify
256.43 the license holder's annual revenues or other information as needed, including copies of
256.44 documents submitted to the Department of Revenue.
  Article 10 Sec. 8.  256
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
257.1      (3) At each annual renewal, a license holder may elect to pay the highest renewal fee,
257.2  and not provide annual revenue information to the commissioner.
257.3      (4) A license holder that knowingly provides the commissioner incorrect revenue amounts
257.4  for the purpose of paying a lower license fee shall be subject to a civil penalty in the amount
257.5  of double the fee the provider should have paid.
257.6      (b) A substance use disorder treatment program licensed under chapter 245G, to provide
257.7  substance use disorder treatment shall pay an annual nonrefundable license fee based on
257.8  the following schedule:
257.9Licensed Capacity  License Fee
257.10$600
257.111 to 24 persons  $2,600
257.12$800
257.1325 to 49 persons  $3,000
257.14$1,000
257.1550 to 74 persons  $5,000
257.16$1,200
257.1775 to 99 persons  $10,000
257.18$1,400
257.19100 or more persons to 199 persons $15,000
257.20200 or more persons  $20,000
257.21     (c) A detoxification program licensed under Minnesota Rules, parts 9530.6510 to
257.22 9530.6590, or a withdrawal management program licensed under chapter 245F shall pay
257.23 an annual nonrefundable license fee based on the following schedule:
257.24Licensed Capacity  License Fee
257.25$760
257.261 to 24 persons  $2,600
257.27$960
257.2825 to 49 persons  $3,000
257.29$1,160
257.3050 or more persons  $5,000
257.31 A detoxification program that also operates a withdrawal management program at the same
257.32 location shall only pay one fee based upon the licensed capacity of the program with the
257.33 higher overall capacity.
257.34     (d) A children's residential facility licensed under Minnesota Rules, chapter 2960, to
257.35 serve children shall pay an annual nonrefundable license fee based on the following schedule:
257.36Licensed Capacity  License Fee
257.371 to 24 persons  $1,000
  Article 10 Sec. 8.  257
  06/07/25  REVISOR  DTT/RC  25-05696       as introduced
258.125 to 49 persons  $1,100
258.250 to 74 persons  $1,200
258.375 to 99 persons  $1,300
258.4100 or more persons  $1,400
258.5      (e) A residential facility licensed under section 245I.23 or Minnesota Rules, parts
258.6  9520.0500 to 9520.0670, to serve persons with mental illness shall pay an annual
258.7  nonrefundable license fee based on the following schedule:
258.8Licensed Capacity  License Fee
258.9$2,525
258.101 to 24 persons  $2,600
258.11$2,725
258.1225 or more persons to 49 persons       $3,000
258.1350 or more persons  $20,000
258.14     (f) A residential facility licensed under Minnesota Rules, parts 9570.2000 to 9570.3400,
258.15 to serve persons with physical disabilities shall pay an annual nonrefundable license fee
258.16 based on the following schedule:
258.17Licensed Capacity  License Fee
258.181 to 24 persons  $450
258.1925 to 49 persons  $650
258.2050 to 74 persons  $850
258.2175 to 99 persons  $1,050
258.22100 or more persons  $1,250
258.23     (g) A program licensed as an adult day care center licensed under Minnesota Rules,
258.24 parts 9555.9600 to 9555.9730, shall pay an annual nonrefundable license fee based on the
258.25 following schedule:
258.26Licensed Capacity  License Fee
258.271 to 24 persons  $500 $2,600
258.2825 to 49 persons  $700 $3,000
258.2950 to 74 persons  $900 $5,000
258.3075 to 99 persons  $1,100 $10,000
258.31100 or more persons to 199 persons $1,300 $15,000
258.32200 or more persons  $20,000
258.33     (h) A program licensed to provide treatment services to persons with sexual psychopathic
258.34 personalities or sexually dangerous persons under Minnesota Rules, parts 9515.3000 to
258.35 9515.3110, shall pay an annual nonrefundable license fee of $20,000.
  Article 10 Sec. 8.  258
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
259.1      (i) A mental health clinic certified under section 245I.20 shall pay an annual
259.2  nonrefundable certification fee of $1,550. If the mental health clinic provides services at a
259.3  primary location with satellite facilities, the satellite facilities shall be certified with the
259.4  primary location without an additional charge.
259.5      (j) If a program subject to annual fees under paragraph (b) provides services at a primary
259.6  location with satellite facilities, the satellite facilities must be licensed with the primary
259.7  location and must be subject to an additional $500 annual nonrefundable license fee per
259.8  satellite facility.
259.9      EFFECTIVE DATE. This section is effective January 1, 2026.
259.10   Sec. 9. Minnesota Statutes 2024, section 245A.10, subdivision 8, is amended to read:
259.11     Subd. 8. Deposit of license fees. A human services licensing and program integrity
259.12 account is created in the state government special revenue fund. Fees collected under
259.13 subdivisions 2, 3, and 4 must be deposited in the human services licensing and program
259.14 integrity account and are annually appropriated to the commissioner for licensing activities
259.15 authorized under this chapter and program integrity activities.
259.16     EFFECTIVE DATE. This section is effective January 1, 2026.
259.17   Sec. 10. Minnesota Statutes 2024, section 245A.10, is amended by adding a subdivision
259.18 to read:
259.19     Subd. 8a. Deposit of county-delegated licensing application fees;
259.20 appropriation. Notwithstanding the provisions of any other law, the commissioner shall
259.21 deposit 50 percent of the fees collected pursuant to subdivision 2 for adult foster care, child
259.22 foster residence settings, family adult day services, family adult foster care, and licensing
259.23 the physical plant of a community residential setting or residential services facility into the
259.24 human services licensing and program integrity account and 50 percent to the credit of the
259.25 county licensing account in the special revenue fund of each county.
259.26     EFFECTIVE DATE. This section is effective January 1, 2026.
259.27   Sec. 11. Minnesota Statutes 2024, section 245A.10, is amended by adding a subdivision
259.28 to read:
259.29     Subd. 8b. Distribution to county; appropriation. On a quarterly basis, the amount
259.30 determined under subdivision 8a is appropriated to the commissioner to issue a payment
  Article 10 Sec. 11.  259
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
260.1  from the county licensing account in favor of the treasurer of each county for which the
260.2  commissioner collected a fee under subdivision 2.
260.3      EFFECTIVE DATE. This section is effective January 1, 2026.
260.4ARTICLE 11
260.5FORECAST ADJUSTMENTS
260.6  Section 1. DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT.
260.7      The dollar amounts shown in the columns marked "Appropriations" are added to or, if
260.8  shown in parentheses, are subtracted from the appropriations in Laws 2023, chapter 70,
260.9  article 20, from the general fund, or any other fund named, to the commissioner of human
260.10 services for the purposes specified in this article, to be available for the fiscal year indicated
260.11 for each purpose. The figure "2025" used in this article means that the appropriations listed
260.12 are available for the fiscal year ending June 30, 2025.
260.13APPROPRIATIONS
260.14Available for the Year
260.15Ending June 30
260.162025
260.17 Sec. 2. COMMISSIONER OF HUMAN
260.18 SERVICES
260.19 Subdivision 1. Total Appropriation  $    114,527,000
260.20Appropriations by Fund
260.212025
260.22 General  136,895,000
260.23 Health Care Access        (16,968,000)
260.24 Federal TANF  (5,400,000)
260.25 Subd. 2. Forecasted Programs
260.26 (a) Minnesota Family
260.27 Investment Program
260.28 (MFIP)/Diversionary Work
260.29 Program (DWP)
260.30Appropriations by Fund
260.312025
260.32 General  (5,951,000)
260.33 Federal TANF  (5,400,000)
260.34 (b) MFIP Child Care Assistance  (62,336,000)
  Article 11 Sec. 2.  260
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
261.1  (c) General Assistance  3,737,000
261.2  (d) Minnesota Supplemental Aid  3,428,000
261.3  (e) Housing Support  11,923,000
261.4  (f) MinnesotaCare  (16,525,000)
261.5  This appropriation is from the health care
261.6  access fund.
261.7  (g) Medical Assistance
261.8Appropriations by Fund
261.92025
261.10 General  59,692,000
261.11 Health Care Access  (443,000)
261.12 (h) Behavioral Health Fund  135,928,000
261.13 (i) Northstar Care for Children  (9,526,000)
261.14   Sec. 3. EFFECTIVE DATE.
261.15     Sections 1 and 2 are effective the day following final enactment.
261.16ARTICLE 12
261.17DEPARTMENT OF HUMAN SERVICES APPROPRIATIONS
261.18 Section 1. HUMAN SERVICES APPROPRIATIONS.
261.19     The sums shown in the columns marked "Appropriations" are appropriated to the
261.20 commissioner of human services and for the purposes specified in this article. The
261.21 appropriations are from the general fund, or another named fund, and are available for the
261.22 fiscal years indicated for each purpose. The figures "2026" and "2027" used in this article
261.23 mean that the appropriations listed under them are available for the fiscal year ending June
261.24 30, 2026, or June 30, 2027, respectively. "The first year" is fiscal year 2026. "The second
261.25 year" is fiscal year 2027. "The biennium" is fiscal years 2026 and 2027.
261.26APPROPRIATIONS
261.27Available for the Year
261.28Ending June 30
261.292026  2027
261.30 Sec. 2. TOTAL APPROPRIATION  $   7,793,334,000 $   7,974,209,000
261.31 Subdivision 1. Appropriations by Fund
  Article 12 Sec. 2.  261
  06/07/25  REVISOR  DTT/RC  25-05696   as introduced
262.1Appropriations by Fund
262.22026  2027
262.3  General  7,791,601,000 7,972,476,000
262.4  Lottery Prize  1,733,000       1,733,000
262.5  The amounts that may be spent for each
262.6  purpose are specified in the following sections
262.7  and subdivisions.
262.8  Subd. 2. Information Technology Appropriations
262.9  (a) IT Appropriations Generally
262.10 This appropriation includes funds for
262.11 information technology projects, services, and
262.12 support. Funding for information technology
262.13 project costs must be incorporated into the
262.14 service-level agreement and paid to Minnesota
262.15 IT Services by the Department of Human
262.16 Services under the rates and mechanism
262.17 specified in that agreement.
262.18 (b) Receipts for Systems Project
262.19 Appropriations and federal receipts for
262.20 information technology systems projects for
262.21 MAXIS, PRISM, MMIS, ISDS, METS, and
262.22 SSIS must be deposited in the state systems
262.23 account authorized in Minnesota Statutes,
262.24 section 256.014. Money appropriated for
262.25 information technology projects approved by
262.26 the commissioner of Minnesota IT Services,
262.27 funded by the legislature, and approved by the
262.28 commissioner of management and budget may
262.29 be transferred from one project to another and
262.30 from development to operations as the
262.31 commissioner of human services deems
262.32 necessary. Any unexpended balance in the
262.33 appropriation for these projects does not
  Article 12 Sec. 2.  262
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
263.1  cancel and is available for ongoing
263.2  development and operations.
263.3  Sec. 3. CENTRAL OFFICE; OPERATIONS  $     7,273,000 $    7,000,000
263.4  Subdivision 1. Budget and Legislative Staff
263.5  $805,000 in fiscal year 2026 and $955,000 in
263.6  fiscal year 2027 are for additional budget and
263.7  legislative staff, at least five of whom must be
263.8  full time. The commissioner must not supplant
263.9  existing spending on staff performing budget
263.10 and legislative functions and must not
263.11 supplement compensation of existing staff
263.12 performing budget and legislative functions,
263.13 but must use the money appropriated under
263.14 this subdivision only to hire additional staff.
263.15 This subdivision does not expire.
263.16 Subd. 2. Self-Directed Bargaining Agreement;
263.17 IT Matching Systems
263.18 $475,000 in fiscal year 2026 and $990,000 in
263.19 fiscal year 2027 are to hire a vendor to identify
263.20 an alternative system to replace the current IT
263.21 matching registry. The commissioner must
263.22 include two union representatives to be part
263.23 of the vendor selection process, which includes
263.24 involvement in writing request for proposal
263.25 requirements. This is a onetime appropriation
263.26 and is available until June 30, 2027.
263.27 Subd. 3. Base Level Adjustment
263.28 The general fund base for this section is
263.29 $5,396,000 in fiscal year 2028 and $5,210,000
263.30 in fiscal year 2029.
263.31 Sec. 4. CENTRAL OFFICE; HEALTH CARE $  1,075,000 $    1,237,000
263.32 Sec. 5. CENTRAL OFFICE; AGING AND
263.33 DISABILITY SERVICES  $   10,561,000 $     8,291,000
  Article 12 Sec. 5.  263
  06/07/25  REVISOR        DTT/RC  25-05696   as introduced
264.1  Subdivision 1. Self-Directed Bargaining
264.2  Agreement; Health Care Study
264.3  $300,000 in fiscal year 2026 is for a study to
264.4  examine health care options for individual
264.5  providers. This is a onetime appropriation.
264.6  Subd. 2. Positive Supports Competency Program
264.7  $1,000,000 in fiscal year 2026 is for the
264.8  positive supports competency program. This
264.9  is a onetime appropriation and is available
264.10 until June 30, 2029.
264.11 Subd. 3. Cost Reporting Improvement and Direct
264.12 Care Staff Review
264.13 $150,000 in fiscal year 2026 is to complete a
264.14 cost reporting improvement study and direct
264.15 care staffing review. This is a onetime
264.16 appropriation.
264.17 Subd. 4. Budget and Legislative Analysis
264.18 $458,000 in fiscal year 2026 and $540,000 in
264.19 fiscal year 2027 are for three additional
264.20 full-time staff solely supporting budget and
264.21 legislative analysis work. The commissioner
264.22 must not supplant existing spending on staff
264.23 performing budget and legislative analysis
264.24 functions and must not supplement
264.25 compensation of existing staff performing
264.26 budget and legislative analysis functions, but
264.27 must use the money appropriated under this
264.28 subdivision only to hire additional staff. The
264.29 general fund base for this appropriation is
264.30 $546,000 in fiscal year 2028 and $546,000 in
264.31 fiscal year 2029. This subdivision does not
264.32 expire.
  Article 12 Sec. 5.  264
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
265.1  Subd. 5. Long-Term Services and Supports
265.2  Advisory Council
265.3  $1,000,000 in fiscal year 2026 is for
265.4  administration of the long-term services and
265.5  supports advisory council, including but not
265.6  limited to providing administrative support,
265.7  facilitation, research and data analysis,
265.8  staffing, and council member compensation.
265.9  This is a onetime appropriation and is
265.10 available until June 30, 2028.
265.11 Subd. 6. Base Level Adjustment
265.12 The general fund base for this section is
265.13 $5,178,000 in fiscal year 2028 and $2,882,000
265.14 in fiscal year 2029.
265.15 Sec. 6. CENTRAL OFFICE; BEHAVIORAL
265.16 HEALTH  $     1,377,000 $    2,026,000
265.17 Subdivision 1. Substance Use Disorder
265.18 Treatment Staff Report and Recommendations
265.19 $100,000 in fiscal year 2026 and $50,000 in
265.20 fiscal year 2027 are for a substance use
265.21 disorder treatment staff report and
265.22 recommendations. This is a onetime
265.23 appropriation.
265.24 Subd. 2. Base Level Adjustment
265.25 The general fund base for this section is
265.26 $2,050,000 in fiscal year 2028 and $2,050,000
265.27 in fiscal year 2029.
265.28 Sec. 7. CENTRAL OFFICE; HOMELESSNESS,
265.29 HOUSING, AND SUPPORT SERVICES  $  1,632,000 $      780,000
265.30 Subdivision 1. Minnesota Homeless Study
265.31 $1,200,000 in fiscal year 2026 is for a contract
265.32 with the Amherst H. Wilder Foundation for
265.33 activities directly related to the triennial
265.34 Minnesota homeless study. This is a onetime
  Article 12 Sec. 7.  265
  06/07/25  REVISOR       DTT/RC  25-05696  as introduced
266.1  appropriation and is available until June 30,
266.2  2028.
266.3  Subd. 2. Base Level Adjustment
266.4  The general fund base for this section is
266.5  $825,000 in fiscal year 2028 and $825,000 in
266.6  fiscal year 2029.
266.7  Sec. 8. CENTRAL OFFICE; OFFICE OF
266.8  INSPECTOR GENERAL  $       7,781,000 $      10,636,000
266.9  Base Level Adjustment
266.10 The general fund base for this section is
266.11 $10,893,000 in fiscal year 2028 and
266.12 $10,893,000 in fiscal year 2029.
266.13 Sec. 9. FORECASTED PROGRAMS;
266.14 HOUSING SUPPORT  $  323,000 $       3,855,000
266.15 Sec. 10. FORECASTED PROGRAMS;
266.16 MEDICAL ASSISTANCE  $   7,455,980,000 $   7,688,985,000
266.17 Boundary Waters Care Center
266.18 $250,000 in fiscal year 2026 is for the
266.19 Boundary Waters Care Center in Ely. This is
266.20 a onetime appropriation and must be paid
266.21 without federal matching money.
266.22 Sec. 11. FORECASTED PROGRAMS;
266.23 ALTERNATIVE CARE  $      55,694,000 $      56,312,000
266.24 Any money allocated to the alternative care
266.25 program that is not spent for the purposes
266.26 indicated does not cancel but must be
266.27 transferred to the medical assistance account.
266.28 Sec. 12. FORECASTED PROGRAMS;
266.29 BEHAVIORAL HEALTH FUND  $    140,025,000 $     123,347,000
266.30 Sec. 13. GRANT PROGRAMS; CHILD AND
266.31 COMMUNITY SERVICE GRANTS  $  (5,655,000) $     (5,655,000)
266.32 Fiscal Year 2026 and 2027 Reductions
266.33 The reductions in the fiscal year 2026 and
266.34 fiscal year 2027 appropriations in this section
  Article 12 Sec. 13.  266
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
267.1  are subtracted from appropriations to the
267.2  Department of Human Services for child and
267.3  community service grants made in any other
267.4  law enacted by the ninety-fourth legislature
267.5  during the 2025 legislative session.
267.6  Sec. 14. GRANT PROGRAMS; HEALTH
267.7  CARE GRANTS  $      225,000 $  -0-
267.8  Culturally Responsive Health Access Grant
267.9  $225,000 in fiscal year 2026 is for a grant to
267.10 a minority-led clinic to deliver evidence-based,
267.11 culturally responsive, and holistic health
267.12 services. The grant is intended to improve
267.13 health care access, eliminate barriers to care,
267.14 and advance health literacy in underserved
267.15 communities. This is a onetime appropriation
267.16 and is available until June 30, 2028.
267.17 Sec. 15. GRANT PROGRAMS; OTHER
267.18 LONG-TERM CARE GRANTS  $     2,897,000 $    2,075,000
267.19 Subdivision 1. Health Awareness Hub Pilot
267.20 Project
267.21 $150,000 in fiscal year 2026 and $150,000 in
267.22 fiscal year 2027 are for a grant to an
267.23 organization serving Liberians in Minnesota
267.24 for a health awareness hub pilot project. The
267.25 pilot project must address health care
267.26 education and the physical and mental
267.27 wellness needs of elderly individuals within
267.28 the African immigrant community by offering
267.29 culturally relevant support, resources, and
267.30 preventive care education from medical
267.31 practitioners with a similar background and
267.32 by making appropriate referrals to culturally
267.33 competent programs, supports, and medical
267.34 care. This is a onetime appropriation and is
267.35 available until June 30, 2028.
  Article 12 Sec. 15.  267
  06/07/25  REVISOR       DTT/RC  25-05696  as introduced
268.1  Subd. 2. Base Level Adjustment
268.2  The general fund base for this appropriation
268.3  is $1,925,000 in fiscal year 2028 and
268.4  $1,925,000 in fiscal year 2029.
268.5  Sec. 16. GRANT PROGRAMS; AGING AND
268.6  ADULT SERVICES GRANTS  $  39,766,000 $    39,767,000
268.7  Subdivision 1. Senior Nutrition Programs
268.8  $250,000 in fiscal year 2026 and $250,000 in
268.9  fiscal year 2027 are for senior nutrition
268.10 programs under Minnesota Statutes, section
268.11 256.9752. The base for this appropriation is
268.12 $751,000 in fiscal year 2028 and $752,000 in
268.13 fiscal year 2029.
268.14 Subd. 2. Base Level Adjustment
268.15 The general fund base for this section is
268.16 $40,268,000 in fiscal year 2028 and
268.17 $40,269,000 in fiscal year 2029.
268.18 Sec. 17. DEAF, DEAFBLIND, AND HARD OF
268.19 HEARING GRANTS  $  2,886,000 $    2,886,000
268.20 Sec. 18. GRANT PROGRAMS; DISABILITY
268.21 GRANTS  $  65,439,000 $    27,262,000
268.22 Subdivision 1. Self-Directed Bargaining
268.23 Agreement; Orientation Start-Up Funds
268.24 $3,000,000 in fiscal year 2026 is for
268.25 orientation program start-up costs as defined
268.26 by the SEIU collective bargaining agreement.
268.27 This is a onetime appropriation.
268.28 Subd. 2. Self-Directed Bargaining Agreement;
268.29 Orientation Ongoing Funds
268.30 $2,000,000 in fiscal year 2026 and $500,000
268.31 in fiscal year 2027 are for ongoing costs
268.32 related to the orientation program as defined
268.33 by the SEIU collective bargaining agreement.
  Article 12 Sec. 18.  268
  06/07/25  REVISOR       DTT/RC  25-05696  as introduced
269.1  Subd. 3. Self-Directed Bargaining Agreement;
269.2  Training Stipends
269.3  $2,250,000 in fiscal year 2026 is for onetime
269.4  stipends of $750 for each collective bargaining
269.5  unit member for training. This is a onetime
269.6  appropriation and is available until June 30,
269.7  2027.
269.8  Subd. 4. Self-Directed Bargaining Agreement;
269.9  Retirement Trust Funds
269.10 $350,000 in fiscal year 2026 is for a vendor
269.11 to create a retirement trust, as defined by the
269.12 SEIU collective bargaining agreement. This
269.13 is a onetime appropriation and is available
269.14 until June 30, 2027.
269.15 Subd. 5. Self-Directed Bargaining Agreement;
269.16 Health Care Stipends
269.17 $30,750,000 in fiscal year 2026 is for stipends
269.18 of $1,200 for each collective bargaining unit
269.19 member for retention and defraying any health
269.20 insurance costs the member may incur.
269.21 Stipends are available once per fiscal year per
269.22 member for fiscal year 2026 and fiscal year
269.23 2027. Of this amount, $30,000,000 in fiscal
269.24 year 2026 is for stipends and $750,000 in
269.25 fiscal year 2026 is for administration. This is
269.26 a onetime appropriation and is available until
269.27 June 30, 2027.
269.28 Subd. 6. Base Level Adjustments
269.29 The general fund base for this section is
269.30 $28,073,000 in fiscal year 2028 and
269.31 $28,073,000 in fiscal year 2029.
269.32 Sec. 19. GRANT PROGRAMS; ADULT
269.33 MENTAL HEALTH GRANTS  $      600,000 $  -0-
  Article 12 Sec. 19.  269
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
270.1  Subdivision 1. New Americans Mental Health
270.2  Grant
270.3  $400,000 in fiscal year 2026 is for a onetime
270.4  grant to a women-led organization providing
270.5  services and supports to New Americans in
270.6  Minneapolis. The grant must be used to
270.7  support mental health services and supports
270.8  for adults living with serious mental illness.
270.9  This is a onetime appropriation and is
270.10 available until June 30, 2028.
270.11 Subd. 2. Intergenerational Social Service and
270.12 Health Grant
270.13 $200,000 in fiscal year 2026 is for a grant to
270.14 a culturally specific, African American-led
270.15 nonprofit organization based in South
270.16 Minneapolis that provides intergenerational,
270.17 family-centered programming rooted in
270.18 African American traditions. The organization
270.19 must offer trauma-informed, community-based
270.20 services that promote family healing,
270.21 collective resilience, and youth leadership
270.22 through culturally responsive mental health
270.23 supports, parent coaching, housing and benefit
270.24 navigation, and programs that preserve and
270.25 share ancestral knowledge. This is a onetime
270.26 appropriation and is available until June 30,
270.27 2028.
270.28 Sec. 20. GRANT PROGRAMS; CHILDREN'S
270.29 MENTAL HEALTH GRANTS  $  50,000 $  -0-
270.30 Youth Development and Leadership
270.31 Program
270.32 $50,000 in fiscal year 2026 is for a grant to an
270.33 organization serving Ukrainians in Minnesota
270.34 to support a trauma-informed youth
270.35 development and leadership program. This is
  Article 12 Sec. 20.  270
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
271.1  a onetime appropriation and is available until
271.2  June 30, 2027.
271.3  Sec. 21. GRANT PROGRAMS; CHEMICAL
271.4  DEPENDENCY TREATMENT SUPPORT
271.5  GRANTS  $     5,405,000 $    5,405,000
271.6  Subdivision 1. Appropriations by Fund
271.7Appropriations by Fund
271.82026  2027
271.9  General  3,672,000    3,672,000
271.10 Lottery Prize  1,733,000    1,733,000
271.11 Subd. 2. Problem Gambling
271.12 $225,000 in fiscal year 2026 and $225,000 in
271.13 fiscal year 2027 are from the lottery prize fund
271.14 for a grant to a state affiliate recognized by
271.15 the National Council on Problem Gambling.
271.16 The affiliate must provide services to increase
271.17 public awareness of problem gambling,
271.18 education, training for individuals and
271.19 organizations that provide effective treatment
271.20 services to problem gamblers and their
271.21 families, and research related to problem
271.22 gambling.
271.23 Subd. 3. Todd County Peer Support Grants
271.24 $150,000 in fiscal year 2026 and $150,000 in
271.25 fiscal year 2027 are for a grant to an
271.26 organization in Todd County that provides
271.27 daily peer support and specialized sessions for
271.28 individuals in substance use recovery,
271.29 transitioning out of incarceration, or who have
271.30 experienced trauma. This is a onetime
271.31 appropriation and is available until June 30,
271.32 2028.
  Article 12 Sec. 21.  271
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
272.1  Subd. 4. Opioid Overdose Crisis Grants
272.2  $175,000 in fiscal year 2026 and $175,000 in
272.3  fiscal year 2027 are for grants to address the
272.4  opioid overdose crisis in communities and
272.5  populations that have been historically
272.6  underserved and disproportionately impacted
272.7  by opioid-related overdose deaths. Grant
272.8  funding must support culturally responsive
272.9  and community-based strategies that address
272.10 the intergenerational effects of substance use
272.11 disorder in African American, Native, and
272.12 African immigrant communities. This is a
272.13 onetime appropriation and is available until
272.14 June 30, 2028.
272.15 Subd. 5. Beltrami Opioid Youth and Family
272.16 Grant
272.17 $100,000 in fiscal year 2026 and $100,000 in
272.18 fiscal year 2027 are for a grant to Beltrami
272.19 County to support families and children
272.20 affected by the opioid epidemic. This is a
272.21 onetime appropriation and is available until
272.22 June 30, 2028.
272.23 Subd. 6. Base Level Adjustment
272.24 The general fund base for this section is
272.25 $3,247,000 in fiscal year 2028 and $3,247,000
272.26 in fiscal year 2029.
272.27   Sec. 22. Laws 2023, chapter 61, article 9, section 2, subdivision 13, is amended to read:
272.28 Subd. 13. Grant Programs; Other Long-Term
272.29 Care Grants  152,387,000  1,925,000
272.30 (a) Provider Capacity Grant for Rural and
272.31 Underserved Communities. $17,148,000 in
272.32 fiscal year 2024 is for provider capacity grants
272.33 for rural and underserved communities.
272.34 Notwithstanding Minnesota Statutes, section
  Article 12 Sec. 22.  272
  06/07/25  REVISOR        DTT/RC  25-05696   as introduced
273.1  16A.28, this appropriation is available until
273.2  June 30, 2027. This is a onetime appropriation.
273.3  (b) New American Legal, Social Services,
273.4  and Long-Term Care Grant Program.
273.5  $28,316,000 in fiscal year 2024 is for
273.6  long-term care workforce grants for new
273.7  Americans. Notwithstanding Minnesota
273.8  Statutes, section 16A.28, this appropriation is
273.9  available until June 30, 2027. This is a onetime
273.10 appropriation.
273.11 (c) Supported Decision Making Programs.
273.12 $4,000,000 in fiscal year 2024 is for supported
273.13 decision making grants. This is a onetime
273.14 appropriation and is available until June 30,
273.15 2025 2026.
273.16 (d) Direct Support Professionals
273.17 Employee-Owned Cooperative Program.
273.18 $350,000 in fiscal year 2024 is for a grant to
273.19 the Metropolitan Consortium of Community
273.20 Developers for the Direct Support
273.21 Professionals Employee-Owned Cooperative
273.22 program. The grantee must use the grant
273.23 amount for outreach and engagement,
273.24 managing a screening and selection process,
273.25 providing one-on-one technical assistance,
273.26 developing and providing training curricula
273.27 related to cooperative development and home
273.28 and community-based waiver services,
273.29 administration, reporting, and program
273.30 evaluation. This is a onetime appropriation
273.31 and is available until June 30, 2025.
273.32 (e) Long-Term Services and Supports
273.33 Workforce Incentive Grants. $83,560,000
273.34 in fiscal year 2024 is for long-term services
273.35 and supports workforce incentive grants
  Article 12 Sec. 22.  273
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
274.1  administered according to Minnesota Statutes,
274.2  section 256.4764. Notwithstanding Minnesota
274.3  Statutes, section 16A.28, this appropriation is
274.4  available until June 30, 2029. This is a onetime
274.5  appropriation.
274.6  (f) Base Level Adjustment. The general fund
274.7  base is $3,949,000 in fiscal year 2026 and
274.8  $3,949,000 in fiscal year 2027. Of these
274.9  amounts, $2,024,000 in fiscal year 2026 and
274.10 $2,024,000 in fiscal year 2027 are for PCA
274.11 background study grants.
274.12     EFFECTIVE DATE. This section is effective the day following final enactment.
274.13   Sec. 23. Laws 2023, chapter 61, article 9, section 2, subdivision 14, as amended by Laws
274.14 2024, chapter 125, article 8, section 13, is amended to read:
274.15 Subd. 14. Grant Programs; Aging and Adult
274.16 Services Grants  164,626,000        34,795,000
274.17 (a) Vulnerable Adult Act Redesign Phase
274.18 Two. $17,129,000 in fiscal year 2024 is for
274.19 adult protection grants to counties and Tribes
274.20 under Minnesota Statutes, section 256M.42.
274.21 Notwithstanding Minnesota Statutes, section
274.22 16A.28, this appropriation is available until
274.23 June 30, 2027. The base for this appropriation
274.24 is $866,000 in fiscal year 2026 and $867,000
274.25 in fiscal year 2027.
274.26 (b) Caregiver Respite Services Grants.
274.27 $1,800,000 in fiscal year 2025 is for caregiver
274.28 respite services grants under Minnesota
274.29 Statutes, section 256.9756. This is a onetime
274.30 appropriation. Notwithstanding Minnesota
274.31 Statutes, section 16A.28, subdivision 3, this
274.32 appropriation is available until June 30, 2027.
274.33 (c) Live Well at Home Grants. $4,575,000
274.34 in fiscal year 2024 is for live well at home
  Article 12 Sec. 23.  274
  06/07/25  REVISOR        DTT/RC  25-05696   as introduced
275.1  grants under Minnesota Statutes, section
275.2  256.9754, subdivision 3f. This is a onetime
275.3  appropriation and is available until June 30,
275.4  2025 2027.
275.5  (d) Senior Nutrition Program. $10,552,000
275.6  in fiscal year 2024 is for the senior nutrition
275.7  program. Notwithstanding Minnesota Statutes,
275.8  section 16A.28, this appropriation is available
275.9  until June 30, 2027. This is a onetime
275.10 appropriation.
275.11 (e) Age-Friendly Community Grants.
275.12 $3,000,000 in fiscal year 2024 is for the
275.13 continuation of age-friendly community grants
275.14 under Laws 2021, First Special Session
275.15 chapter 7, article 17, section 8, subdivision 1.
275.16 Notwithstanding Minnesota Statutes, section
275.17 16A.28, this is a onetime appropriation and is
275.18 available until June 30, 2027.
275.19 (f) Age-Friendly Technical Assistance
275.20 Grants. $1,725,000 in fiscal year 2024 is for
275.21 the continuation of age-friendly technical
275.22 assistance grants under Laws 2021, First
275.23 Special Session chapter 7, article 17, section
275.24 8, subdivision 2. Notwithstanding Minnesota
275.25 Statutes, section 16A.28, this is a onetime
275.26 appropriation and is available until June 30,
275.27 2027.
275.28 (g) Long-Term Services and Supports Loan
275.29 Program. $93,200,000 in fiscal year 2024 is
275.30 for the long-term services and supports loan
275.31 program under Minnesota Statutes, section
275.32 256R.55, and is available as provided therein.
  Article 12 Sec. 23.  275
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
276.1  (h) Base Level Adjustment. The general fund
276.2  base is $33,861,000 in fiscal year 2026 and
276.3  $33,862,000 in fiscal year 2027.
276.4      EFFECTIVE DATE. This section is effective the day following final enactment.
276.5    Sec. 24. Laws 2023, chapter 61, article 9, section 2, subdivision 16, as amended by Laws
276.6  2023, chapter 70, article 15, section 8, and Laws 2024, chapter 125, article 8, section 14, is
276.7  amended to read:
276.8  Subd. 16. Grant Programs; Disabilities Grants  113,684,000  30,377,000
276.9  (a) Temporary Grants for Small
276.10 Customized Living Providers. $5,450,000
276.11 in fiscal year 2024 is for grants to assist small
276.12 customized living providers to transition to
276.13 community residential services licensure or
276.14 integrated community supports licensure.
276.15 Notwithstanding Minnesota Statutes, section
276.16 16A.28, this appropriation is available until
276.17 June 30, 2027. This is a onetime appropriation.
276.18 (b) Lead Agency Capacity Building Grants.
276.19 $444,000 in fiscal year 2024 and $2,396,000
276.20 in fiscal year 2025 are for grants to assist
276.21 organizations, counties, and Tribes to build
276.22 capacity for employment opportunities for
276.23 people with disabilities. The base for this
276.24 appropriation is $2,413,000 in fiscal year 2026
276.25 and $2,411,000 in fiscal year 2027.
276.26 (c) Employment and Technical Assistance
276.27 Center Grants. $450,000 in fiscal year 2024
276.28 and $1,800,000 in fiscal year 2025 are for
276.29 employment and technical assistance grants
276.30 to assist organizations and employers in
276.31 promoting a more inclusive workplace for
276.32 people with disabilities.
  Article 12 Sec. 24.  276
  06/07/25  REVISOR  DTT/RC  25-05696   as introduced
277.1  (d) Case Management Training Grants.
277.2  $37,000 in fiscal year 2024 and $123,000 in
277.3  fiscal year 2025 are for grants to provide case
277.4  management training to organizations and
277.5  employers to support the state's disability
277.6  employment supports system. The base for
277.7  this appropriation is $45,000 in fiscal year
277.8  2026 and $45,000 in fiscal year 2027.
277.9  (e) Self-Directed Bargaining Agreement;
277.10 Electronic Visit Verification Stipends.
277.11 $6,095,000 in fiscal year 2024 is for onetime
277.12 stipends of $200 to bargaining members to
277.13 offset the potential costs related to people
277.14 using individual devices to access the
277.15 electronic visit verification system. Of this
277.16 amount, $5,600,000 is for stipends and
277.17 $495,000 is for administration. This is a
277.18 onetime appropriation and is available until
277.19 June 30, 2025.
277.20 (f) Self-Directed Collective Bargaining
277.21 Agreement; Temporary Rate Increase
277.22 Memorandum of Understanding. $1,600,000
277.23 in fiscal year 2024 is for onetime stipends for
277.24 individual providers covered by the SEIU
277.25 collective bargaining agreement based on the
277.26 memorandum of understanding related to the
277.27 temporary rate increase in effect between
277.28 December 1, 2020, and February 7, 2021. Of
277.29 this amount, $1,400,000 of the appropriation
277.30 is for stipends and $200,000 is for
277.31 administration. This is a onetime
277.32 appropriation.
277.33 (g) Self-Directed Collective Bargaining
277.34 Agreement; Retention Bonuses. $50,750,000
277.35 in fiscal year 2024 is for onetime retention
  Article 12 Sec. 24.  277
  06/07/25  REVISOR        DTT/RC  25-05696   as introduced
278.1  bonuses covered by the SEIU collective
278.2  bargaining agreement. Of this amount,
278.3  $50,000,000 is for retention bonuses and
278.4  $750,000 is for administration of the bonuses.
278.5  This is a onetime appropriation and is
278.6  available until June 30, 2025.
278.7  (h) Self-Directed Bargaining Agreement;
278.8  Training Stipends. $2,100,000 in fiscal year
278.9  2024 and $100,000 in fiscal year 2025 are for
278.10 onetime stipends of $500 for collective
278.11 bargaining unit members who complete
278.12 designated, voluntary trainings made available
278.13 through or recommended by the State Provider
278.14 Cooperation Committee. Of this amount,
278.15 $2,000,000 in fiscal year 2024 is for stipends,
278.16 and $100,000 in fiscal year 2024 and $100,000
278.17 in fiscal year 2025 are for administration. This
278.18 is a onetime appropriation.
278.19 (i) Self-Directed Bargaining Agreement;
278.20 Orientation Program. $2,000,000 in fiscal
278.21 year 2024 and $2,000,000 in fiscal year 2025
278.22 are for onetime $100 payments to collective
278.23 bargaining unit members who complete
278.24 voluntary orientation requirements. Of this
278.25 amount, $1,500,000 in fiscal year 2024 and
278.26 $1,500,000 in fiscal year 2025 are for the
278.27 onetime $100 payments, and $500,000 in
278.28 fiscal year 2024 and $500,000 in fiscal year
278.29 2025 are for orientation-related costs. This is
278.30 a onetime appropriation.
278.31 (j) Self-Directed Bargaining Agreement;
278.32 Home Care Orientation Trust. $1,000,000
278.33 in fiscal year 2024 is for the Home Care
278.34 Orientation Trust under Minnesota Statutes,
278.35 section 179A.54, subdivision 11. The
  Article 12 Sec. 24.  278
  06/07/25  REVISOR  DTT/RC  25-05696   as introduced
279.1  commissioner shall disburse the appropriation
279.2  to the board of trustees of the Home Care
279.3  Orientation Trust for deposit into an account
279.4  designated by the board of trustees outside the
279.5  state treasury and state's accounting system.
279.6  This is a onetime appropriation and is
279.7  available until June 30, 2025.
279.8  (k) HIV/AIDS Supportive Services.
279.9  $12,100,000 in fiscal year 2024 is for grants
279.10 to community-based HIV/AIDS supportive
279.11 services providers as defined in Minnesota
279.12 Statutes, section 256.01, subdivision 19, and
279.13 for payment of allowed health care costs as
279.14 defined in Minnesota Statutes, section
279.15 256.9365. This is a onetime appropriation and
279.16 is available until June 30, 2025.
279.17 (l) Motion Analysis Advancements Clinical
279.18 Study and Patient Care. $400,000 is in fiscal
279.19 year 2024 is for a grant to the Mayo Clinic
279.20 Motion Analysis Laboratory and Limb Lab
279.21 for continued research in motion analysis
279.22 advancements and patient care. This is a
279.23 onetime appropriation and is available through
279.24 June 30, 2025 2027.
279.25 (m) Grant to Family Voices in Minnesota.
279.26 $75,000 in fiscal year 2024 and $75,000 in
279.27 fiscal year 2025 are for a grant to Family
279.28 Voices in Minnesota under Minnesota
279.29 Statutes, section 256.4776.
279.30 (n) Parent-to-Parent Programs.
279.31 (1) $550,000 in fiscal year 2024 and $550,000
279.32 in fiscal year 2025 are for grants to
279.33 organizations that provide services to
279.34 underserved communities with a high
  Article 12 Sec. 24.  279
  06/07/25  REVISOR  DTT/RC  25-05696   as introduced
280.1  prevalence of autism spectrum disorder. This
280.2  is a onetime appropriation and is available
280.3  until June 30, 2025 2027.
280.4  (2) The commissioner shall give priority to
280.5  organizations that provide culturally specific
280.6  and culturally responsive services.
280.7  (3) Eligible organizations must:
280.8  (i) conduct outreach and provide support to
280.9  newly identified parents or guardians of a child
280.10 with special health care needs;
280.11 (ii) provide training to educate parents and
280.12 guardians in ways to support their child and
280.13 navigate the health, education, and human
280.14 services systems;
280.15 (iii) facilitate ongoing peer support for parents
280.16 and guardians from trained volunteer support
280.17 parents; and
280.18 (iv) communicate regularly with other
280.19 parent-to-parent programs and national
280.20 organizations to ensure that best practices are
280.21 implemented.
280.22 (4) Grant recipients must use grant money for
280.23 the activities identified in clause (3).
280.24 (5) For purposes of this paragraph, "special
280.25 health care needs" means disabilities, chronic
280.26 illnesses or conditions, health-related
280.27 educational or behavioral problems, or the risk
280.28 of developing disabilities, illnesses, conditions,
280.29 or problems.
280.30 (6) Each grant recipient must report to the
280.31 commissioner of human services annually by
280.32 January 15 with measurable outcomes from
280.33 programs and services funded by this
  Article 12 Sec. 24.  280
  06/07/25  REVISOR       DTT/RC  25-05696   as introduced
281.1  appropriation the previous year including the
281.2  number of families served and the number of
281.3  volunteer support parents trained by the
281.4  organization's parent-to-parent program.
281.5  (o) Self-Advocacy Grants for Persons with
281.6  Intellectual and Developmental Disabilities.
281.7  $323,000 in fiscal year 2024 and $323,000 in
281.8  fiscal year 2025 are for self-advocacy grants
281.9  under Minnesota Statutes, section 256.477.
281.10 This is a onetime appropriation. Of these
281.11 amounts, $218,000 in fiscal year 2024 and
281.12 $218,000 in fiscal year 2025 are for the
281.13 activities under Minnesota Statutes, section
281.14 256.477, subdivision 1, paragraph (a), clauses
281.15 (5) to (7), and for administrative costs, and
281.16 $105,000 in fiscal year 2024 and $105,000 in
281.17 fiscal year 2025 are for the activities under
281.18 Minnesota Statutes, section 256.477,
281.19 subdivision 2.
281.20 (p) Technology for Home Grants. $300,000
281.21 in fiscal year 2024 and $300,000 in fiscal year
281.22 2025 are for technology for home grants under
281.23 Minnesota Statutes, section 256.4773.
281.24 (q) Community Residential Setting
281.25 Transition. $500,000 in fiscal year 2024 is
281.26 for a grant to Hennepin County to expedite
281.27 approval of community residential setting
281.28 licenses subject to the corporate foster care
281.29 moratorium exception under Minnesota
281.30 Statutes, section 245A.03, subdivision 7,
281.31 paragraph (a), clause (5).
281.32 (r) Base Level Adjustment. The general fund
281.33 base is $27,343,000 in fiscal year 2026 and
281.34 $27,016,000 in fiscal year 2027.
  Article 12 Sec. 24.  281
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
282.1      EFFECTIVE DATE. This section is effective the day following final enactment.
282.2    Sec. 25. Laws 2023, chapter 61, article 9, section 2, subdivision 17, is amended to read:
282.3  Subd. 17. Grant Programs; Adult Mental Health
282.4  Grants  4,400,000  -0-
282.5  (a) Training for Peer Workforce. $4,000,000
282.6  in fiscal year 2024 is for peer workforce
282.7  training grants. Notwithstanding Minnesota
282.8  Statutes, section 16A.28, this is a onetime
282.9  appropriation and is available until June 30,
282.10 2027.
282.11 (b) Family Enhancement Center Grant.
282.12 $400,000 in fiscal year 2024 is for a grant to
282.13 the Family Enhancement Center to develop,
282.14 maintain, and expand community-based social
282.15 engagement and connection programs to help
282.16 families dealing with trauma and mental health
282.17 issues develop connections with each other
282.18 and their communities, including the NEST
282.19 parent monitoring program, the cook to
282.20 connect program, and the call to movement
282.21 initiative. This appropriation is onetime and
282.22 is available until June 30, 2025 2027.
282.23   Sec. 26. Laws 2023, chapter 61, article 9, section 2, subdivision 18, as amended by Laws
282.24 2024, chapter 125, article 8, section 15, is amended to read:
282.25 Subd. 18. Grant Programs; Chemical
282.26 Dependency Treatment Support Grants
282.27Appropriations by Fund
282.28 General  54,691,000       5,342,000
282.29 Lottery Prize  1,733,000    1,733,000
282.30 (a) Culturally Specific Recovery
282.31 Community Organization Start-Up Grants.
282.32 $4,000,000 in fiscal year 2024 is for culturally
282.33 specific recovery community organization
  Article 12 Sec. 26.  282
  06/07/25  REVISOR        DTT/RC  25-05696   as introduced
283.1  start-up grants. Notwithstanding Minnesota
283.2  Statutes, section 16A.28, this appropriation is
283.3  available until June 30, 2027. This is a onetime
283.4  appropriation.
283.5  (b) Safe Recovery Sites. $14,537,000 in fiscal
283.6  year 2024 is from the general fund for start-up
283.7  and capacity-building grants for organizations
283.8  to establish safe recovery sites.
283.9  Notwithstanding Minnesota Statutes, section
283.10 16A.28, this appropriation is onetime and is
283.11 available until June 30, 2029.
283.12 (c) Technical Assistance for Culturally
283.13 Specific Organizations; Culturally Specific
283.14 Services Grants. $4,000,000 in fiscal year
283.15 2024 is for grants to culturally specific
283.16 providers for technical assistance navigating
283.17 culturally specific and responsive substance
283.18 use and recovery programs. Notwithstanding
283.19 Minnesota Statutes, section 16A.28, this
283.20 appropriation is available until June 30, 2027.
283.21 (d) Technical Assistance for Culturally
283.22 Specific Organizations; Culturally Specific
283.23 Grant Development Training. $400,000 in
283.24 fiscal year 2024 is for grants for up to four
283.25 trainings for community members and
283.26 culturally specific providers for grant writing
283.27 training for substance use and recovery-related
283.28 grants. Notwithstanding Minnesota Statutes,
283.29 section 16A.28, this is a onetime appropriation
283.30 and is available until June 30, 2027.
283.31 (e) Harm Reduction Supplies for Tribal and
283.32 Culturally Specific Programs. $7,597,000
283.33 in fiscal year 2024 is from the general fund to
283.34 provide sole source grants to culturally
283.35 specific communities to purchase syringes,
  Article 12 Sec. 26.  283
  06/07/25  REVISOR        DTT/RC  25-05696   as introduced
284.1  testing supplies, and opiate antagonists.
284.2  Notwithstanding Minnesota Statutes, section
284.3  16A.28, this appropriation is available until
284.4  June 30, 2027. This is a onetime appropriation.
284.5  (f) Families and Family Treatment
284.6  Capacity-Building and Start-Up Grants.
284.7  $10,000,000 in fiscal year 2024 is from the
284.8  general fund for start-up and capacity-building
284.9  grants for family substance use disorder
284.10 treatment programs. Notwithstanding
284.11 Minnesota Statutes, section 16A.28, this
284.12 appropriation is available until June 30, 2029.
284.13 This is a onetime appropriation.
284.14 (g) Start-Up and Capacity Building Grants
284.15 for Withdrawal Management. $0 in fiscal
284.16 year 2024 and $1,000,000 in fiscal year 2025
284.17 are for start-up and capacity building grants
284.18 for withdrawal management.
284.19 (h) Recovery Community Organization
284.20 Grants. $4,300,000 in fiscal year 2024 is from
284.21 the general fund for grants to recovery
284.22 community organizations, as defined in
284.23 Minnesota Statutes, section 254B.01,
284.24 subdivision 8, that are current grantees as of
284.25 June 30, 2023. This is a onetime appropriation
284.26 and is available until June 30, 2025 2027.
284.27 (i) Opioid Overdose Prevention Grants.
284.28 (1) $125,000 in fiscal year 2024 and $125,000
284.29 in fiscal year 2025 are from the general fund
284.30 for a grant to Ka Joog, a nonprofit organization
284.31 in Minneapolis, Minnesota, to be used for
284.32 collaborative outreach, education, and training
284.33 on opioid use and overdose, and distribution
284.34 of opiate antagonist kits in East African and
  Article 12 Sec. 26.  284
  06/07/25  REVISOR        DTT/RC  25-05696   as introduced
285.1  Somali communities in Minnesota. This is a
285.2  onetime appropriation.
285.3  (2) $125,000 in fiscal year 2024 and $125,000
285.4  in fiscal year 2025 are from the general fund
285.5  for a grant to the Steve Rummler Hope
285.6  Network to be used for statewide outreach,
285.7  education, and training on opioid use and
285.8  overdose, and distribution of opiate antagonist
285.9  kits. This is a onetime appropriation.
285.10 (3) $250,000 in fiscal year 2024 and $250,000
285.11 in fiscal year 2025 are from the general fund
285.12 for a grant to African Career Education and
285.13 Resource, Inc. to be used for collaborative
285.14 outreach, education, and training on opioid
285.15 use and overdose, and distribution of opiate
285.16 antagonist kits. This is a onetime appropriation
285.17 and is available until June 30, 2027.
285.18 (j) Problem Gambling. $225,000 in fiscal
285.19 year 2024 and $225,000 in fiscal year 2025
285.20 are from the lottery prize fund for a grant to a
285.21 state affiliate recognized by the National
285.22 Council on Problem Gambling. The affiliate
285.23 must provide services to increase public
285.24 awareness of problem gambling, education,
285.25 training for individuals and organizations that
285.26 provide effective treatment services to problem
285.27 gamblers and their families, and research
285.28 related to problem gambling.
285.29 (k) Project ECHO. $1,310,000 in fiscal year
285.30 2024 and $1,295,000 in fiscal year 2025 are
285.31 from the general fund for a grant to Hennepin
285.32 Healthcare to expand the Project ECHO
285.33 program. The grant must be used to establish
285.34 at least four substance use disorder-focused
285.35 Project ECHO programs at Hennepin
  Article 12 Sec. 26.  285
  06/07/25  REVISOR        DTT/RC  25-05696   as introduced
286.1  Healthcare, expanding the grantee's capacity
286.2  to improve health and substance use disorder
286.3  outcomes for diverse populations of
286.4  individuals enrolled in medical assistance,
286.5  including but not limited to immigrants,
286.6  individuals who are homeless, individuals
286.7  seeking maternal and perinatal care, and other
286.8  underserved populations. The Project ECHO
286.9  programs funded under this section must be
286.10 culturally responsive, and the grantee must
286.11 contract with culturally and linguistically
286.12 appropriate substance use disorder service
286.13 providers who have expertise in focus areas,
286.14 based on the populations served. Grant funds
286.15 may be used for program administration,
286.16 equipment, provider reimbursement, and
286.17 staffing hours. This is a onetime appropriation
286.18 and is available until June 30, 2027.
286.19 (l) White Earth Nation Substance Use
286.20 Disorder Digital Therapy Tool. $3,000,000
286.21 in fiscal year 2024 is from the general fund
286.22 for a grant to the White Earth Nation to
286.23 develop an individualized Native American
286.24 centric digital therapy tool with Pathfinder
286.25 Solutions. This is a onetime appropriation.
286.26 The grant must be used to:
286.27 (1) develop a mobile application that is
286.28 culturally tailored to connecting substance use
286.29 disorder resources with White Earth Nation
286.30 members;
286.31 (2) convene a planning circle with White Earth
286.32 Nation members to design the tool;
286.33 (3) provide and expand White Earth
286.34 Nation-specific substance use disorder
286.35 services; and
  Article 12 Sec. 26.  286
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
287.1  (4) partner with an academic research
287.2  institution to evaluate the efficacy of the
287.3  program.
287.4  (m) Wellness in the Woods. $300,000 in
287.5  fiscal year 2024 and $300,000 in fiscal year
287.6  2025 are from the general fund for a grant to
287.7  Wellness in the Woods for daily peer support
287.8  and special sessions for individuals who are
287.9  in substance use disorder recovery, are
287.10 transitioning out of incarceration, or who have
287.11 experienced trauma. These are onetime
287.12 appropriations.
287.13 (n) Base Level Adjustment. The general fund
287.14 base is $3,247,000 in fiscal year 2026 and
287.15 $3,247,000 in fiscal year 2027.
287.16   Sec. 27. Laws 2024, chapter 125, article 8, section 2, subdivision 12, is amended to read:
287.17 Subd. 12. Grant Programs; Other Long Term
287.18 Care Grants  (2,500,000)  1,962,000
287.19 (a) Health Awareness Hub Pilot Project.
287.20 $281,000 in fiscal year 2025 is for a payment
287.21 to the Organization for Liberians in Minnesota
287.22 for a health awareness hub pilot project. The
287.23 pilot project must seek to address health care
287.24 education and the physical and mental
287.25 wellness needs of elderly individuals within
287.26 the African immigrant community by offering
287.27 culturally relevant support, resources, and
287.28 preventive care education from medical
287.29 practitioners who have a similar background,
287.30 and by making appropriate referrals to
287.31 culturally competent programs, supports, and
287.32 medical care. Within six months of the
287.33 conclusion of the pilot project, the
287.34 Organization for Liberians in Minnesota must
  Article 12 Sec. 27.  287
  06/07/25  REVISOR  DTT/RC  25-05696   as introduced
288.1  provide the commissioner with an evaluation
288.2  of the project as determined by the
288.3  commissioner. This is a onetime appropriation.
288.4  (b) Chapter 245D Compliance Support.
288.5  $219,000 in fiscal year 2025 is for a payment
288.6  to Black Business Enterprises Fund to support
288.7  minority providers licensed under Minnesota
288.8  Statutes, chapter 245D, as intensive support
288.9  services providers to build skills and the
288.10 infrastructure needed to increase the quality
288.11 of services provided to the people the
288.12 providers serve while complying with the
288.13 requirements of Minnesota Statutes, chapter
288.14 245D, and to enable the providers to accept
288.15 clients with high behavioral needs. This is a
288.16 onetime appropriation.
288.17 (c) Customized Living Technical Assistance.
288.18 $350,000 is for a payment to Propel
288.19 Nonprofits for a culturally specific outreach
288.20 and education campaign toward existing
288.21 customized living providers that might more
288.22 appropriately serve their clients under a
288.23 different home and community-based services
288.24 program or license. This is a onetime
288.25 appropriation.
288.26 (d) Linguistically and Culturally Specific
288.27 Training Pilot Project. $650,000 in fiscal
288.28 year 2025 is for a payment to Isuroon to
288.29 collaborate with the commissioner of human
288.30 services to develop and implement a pilot
288.31 program to provide: (1) linguistically and
288.32 culturally specific in-person training to
288.33 bilingual individuals, particularly bilingual
288.34 women, from diverse ethnic backgrounds; and
288.35 (2) technical assistance to providers to ensure
  Article 12 Sec. 27.  288
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
289.1  successful implementation of the pilot
289.2  program, including training, resources, and
289.3  ongoing support. Within six months of the
289.4  conclusion of the pilot project, Isuroon must
289.5  provide the commissioner with an evaluation
289.6  of the project as determined by the
289.7  commissioner. This is a onetime appropriation
289.8  and is available until June 30, 2027.
289.9  (e) Long-Term Services and Supports Loan
289.10 Program. (1) $462,000 in fiscal year 2025 is
289.11 from the general fund for the long-term
289.12 services and supports loan program established
289.13 under Minnesota Statutes, section 256R.55.
289.14 The base for this appropriation is $822,000 in
289.15 fiscal year 2026 and $0 in fiscal year 2027.
289.16 (2) The commissioner of management and
289.17 budget shall transfer $462,000 in fiscal year
289.18 2025 from the general fund to the long-term
289.19 services and supports loan account established
289.20 under Minnesota Statutes, section 256R.55.
289.21 The base for this transfer is $822,000 in fiscal
289.22 year 2026 and $0 in fiscal year 2027.
289.23 (f) Base Level Adjustment. The general fund
289.24 base is decreased by $1,202,000 in fiscal year
289.25 2026 and decreased by $2,024,000 in fiscal
289.26 year 2027.
289.27   Sec. 28. Laws 2024, chapter 125, article 8, section 2, subdivision 13, is amended to read:
289.28 Subd. 13. Grant Programs; Aging and Adult
289.29 Services Grants  -0-        4,500,000
289.30 (a) Caregiver Respite Services Grants.
289.31 $2,000,000 in fiscal year 2025 is for caregiver
289.32 respite services grants under Minnesota
289.33 Statutes, section 256.9756. This is a onetime
289.34 appropriation. Notwithstanding Minnesota
  Article 12 Sec. 28.  289
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
290.1  Statutes, section 16A.28, subdivision 3, this
290.2  appropriation is available until June 30, 2027.
290.3  (b) Caregiver Support Programs.
290.4  $2,500,000 in fiscal year 2025 is for the
290.5  Minnesota Board on Aging for the purposes
290.6  of the caregiver support programs under
290.7  Minnesota Statutes, section 256.9755.
290.8  Programs receiving funding under this
290.9  paragraph must include an ALS-specific
290.10 respite service in their caregiver support
290.11 program. This is a onetime appropriation.
290.12 Notwithstanding Minnesota Statutes, section
290.13 16A.28, subdivision 3, this appropriation is
290.14 available until June 30, 2027 2028.
290.15     EFFECTIVE DATE. This section is effective the day following final enactment.
290.16   Sec. 29. Laws 2024, chapter 125, article 8, section 2, subdivision 14, is amended to read:
290.17 Subd. 14. Grant Programs; Disabilities Grants  1,650,000  9,574,000
290.18 (a) Capital Improvement for Accessibility.
290.19 $400,000 in fiscal year 2025 is for a payment
290.20 to Anoka County to make capital
290.21 improvements to existing space in the Anoka
290.22 County Human Services building in the city
290.23 of Blaine, including making bathrooms fully
290.24 compliant with the Americans with Disabilities
290.25 Act with adult changing tables and ensuring
290.26 barrier-free access for the purposes of
290.27 improving and expanding the services an
290.28 existing building tenant can provide to adults
290.29 with developmental disabilities. This is a
290.30 onetime appropriation.
290.31 (b) Dakota County Disability Services
290.32 Workforce Shortage Pilot Project. $500,000
290.33 in fiscal year 2025 is for a grant to Dakota
290.34 County for innovative solutions to the
  Article 12 Sec. 29.  290
  06/07/25  REVISOR  DTT/RC  25-05696   as introduced
291.1  disability services workforce shortage. Up to
291.2  $250,000 of this amount must be used to
291.3  develop and test an online application for
291.4  matching requests for services from people
291.5  with disabilities to available staff, and up to
291.6  $250,000 of this amount must be used to
291.7  develop a communities-for-all program that
291.8  engages businesses, community organizations,
291.9  neighbors, and informal support systems to
291.10 promote community inclusion of people with
291.11 disabilities. By October 1, 2026, the
291.12 commissioner shall report the outcomes and
291.13 recommendations of these pilot projects to the
291.14 chairs and ranking minority members of the
291.15 legislative committees with jurisdiction over
291.16 human services finance and policy. This is a
291.17 onetime appropriation. Notwithstanding
291.18 Minnesota Statutes, section 16A.28,
291.19 subdivision 3, this appropriation is available
291.20 until June 30, 2027.
291.21 (c) Pediatric Hospital-to-Home Transition
291.22 Pilot Program. $1,040,000 in fiscal year 2025
291.23 is for the pediatric hospital-to-home pilot
291.24 program. This is a onetime appropriation.
291.25 Notwithstanding Minnesota Statutes, section
291.26 16A.28, subdivision 3, this appropriation is
291.27 available until June 30, 2027.
291.28 (d) Artists With Disabilities Support.
291.29 $690,000 in fiscal year 2025 is for a payment
291.30 to a nonprofit organization licensed under
291.31 Minnesota Statutes, chapter 245D, located on
291.32 Minnehaha Avenue West in Saint Paul, and
291.33 that supports artists with disabilities in creating
291.34 visual and performing art that challenges
291.35 society's views of persons with disabilities.
  Article 12 Sec. 29.  291
  06/07/25  REVISOR  DTT/RC  25-05696   as introduced
292.1  This is a onetime appropriation.
292.2  Notwithstanding Minnesota Statutes, section
292.3  16A.28, subdivision 3, this appropriation is
292.4  available until June 30, 2027.
292.5  (e) Emergency Relief Grants for Rural
292.6  EIDBI Providers. $600,000 in fiscal year
292.7  2025 is for emergency relief grants for EIDBI
292.8  providers. This is a onetime appropriation.
292.9  Notwithstanding Minnesota Statutes, section
292.10 16A.28, subdivision 3, this appropriation is
292.11 available until June 30, 2027.
292.12 (f) Self-Advocacy Grants for Persons with
292.13 Intellectual and Developmental Disabilities.
292.14 $250,000 in fiscal year 2025 is for
292.15 self-advocacy grants under Minnesota Statutes,
292.16 section 256.477, subdivision 1, paragraph (a),
292.17 clauses (5) to (7), and for administrative costs.
292.18 This is a onetime appropriation and is
292.19 available until June 30, 2027.
292.20 (g) Electronic Visit Verification
292.21 Implementation Grants. $864,000 in fiscal
292.22 year 2025 is for electronic visit verification
292.23 implementation grants. This is a onetime
292.24 appropriation. Notwithstanding Minnesota
292.25 Statutes, section 16A.28, subdivision 3, this
292.26 appropriation is available until June 30, 2027.
292.27 (h) Aging and Disability Services for
292.28 Immigrant and Refugee Communities.
292.29 $250,000 in fiscal year 2025 is for a payment
292.30 to SEWA-AIFW to address aging, disability,
292.31 and mental health needs for immigrant and
292.32 refugee communities. This is a onetime
292.33 appropriation and is available until June 30,
292.34 2027.
  Article 12 Sec. 29.  292
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
293.1  (i) License Transition Support for Small
293.2  Disability Waiver Providers. $3,150,000 in
293.3  fiscal year 2025 is for license transition
293.4  payments to small disability waiver providers.
293.5  This is a onetime appropriation.
293.6  Notwithstanding Minnesota Statutes, section
293.7  16A.28, subdivision 3, this appropriation is
293.8  available until June 30, 2027.
293.9  (j) Own home services provider
293.10 capacity-building grants. $1,519,000 in fiscal
293.11 year 2025 is for the own home services
293.12 provider capacity-building grant program.
293.13 Notwithstanding Minnesota Statutes, section
293.14 16A.28, subdivision 3, this appropriation is
293.15 available until June 30, 2027. This is a onetime
293.16 appropriation.
293.17 (k) Continuation of Centers for
293.18 Independent Living HCBS Access Grants.
293.19 $311,000 in fiscal year 2024 is for continued
293.20 funding of grants awarded under Laws 2021,
293.21 First Special Session chapter 7, article 17,
293.22 section 19, as amended by Laws 2022, chapter
293.23 98, article 15, section 15. This is a onetime
293.24 appropriation and is available until June 30,
293.25 2025.
293.26 (l) Base Level Adjustment. The general fund
293.27 base is increased by $811,000 in fiscal year
293.28 2026 and increased by $811,000 in fiscal year
293.29 2027.
293.30   Sec. 30. Laws 2024, chapter 125, article 8, section 2, subdivision 15, is amended to read:
293.31 Subd. 15. Grant Programs; Adult Mental Health
293.32 Grants  (8,900,000)  2,364,000
293.33 (a) Locked Intensive Residential Treatment
293.34 Services. $1,000,000 in fiscal year 2025 is for
  Article 12 Sec. 30.  293
  06/07/25  REVISOR  DTT/RC  25-05696   as introduced
294.1  start-up funds to intensive residential treatment
294.2  services providers to provide treatment in
294.3  locked facilities for patients meeting medical
294.4  necessity criteria and who may also be referred
294.5  for competency attainment or a competency
294.6  examination under Minnesota Statutes,
294.7  sections 611.40 to 611.59. This is a onetime
294.8  appropriation. Notwithstanding Minnesota
294.9  Statutes, section 16A.28, subdivision 3, this
294.10 appropriation is available until June 30, 2027.
294.11 (b) Engagement Services Pilot Grants.
294.12 $1,500,000 in fiscal year 2025 is for
294.13 engagement services pilot grants. Of this
294.14 amount, $250,000 in fiscal year 2025 is for an
294.15 engagement services pilot grant to Otter Tail
294.16 County. This is a onetime appropriation.
294.17 Notwithstanding Minnesota Statutes, section
294.18 16A.28, subdivision 3, this appropriation is
294.19 available until June 30, 2026 2028.
294.20 (c) Mental Health Innovation Grant
294.21 Program. $1,321,000 in fiscal year 2025 is
294.22 for the mental health innovation grant program
294.23 under Minnesota Statutes, section 245.4662.
294.24 This is a onetime appropriation.
294.25 Notwithstanding Minnesota Statutes, section
294.26 16A.28, subdivision 3, this appropriation is
294.27 available until June 30, 2026.
294.28 (d) Behavioral Health Services For
294.29 Immigrant And Refugee Communities.
294.30 $354,000 in fiscal year 2025 is for a payment
294.31 to African Immigrant Community Services to
294.32 provide culturally and linguistically
294.33 appropriate services to new Americans with
294.34 disabilities, mental health needs, and substance
294.35 use disorders and to connect such individuals
  Article 12 Sec. 30.  294
  06/07/25  REVISOR       DTT/RC  25-05696  as introduced
295.1  with appropriate alternative service providers
295.2  to ensure continuity of care. This is a onetime
295.3  appropriation. Notwithstanding Minnesota
295.4  Statutes, section 16A.28, subdivision 3, this
295.5  appropriation is available until June 30, 2027.
295.6  (e) Base Level Adjustment. The general fund
295.7  base is decreased by $1,811,000 in fiscal year
295.8  2026 and decreased by $1,811,000 in fiscal
295.9  year 2027.
295.10     EFFECTIVE DATE. This section is effective the day following final enactment.
295.11   Sec. 31. ADDITIONAL FEDERAL FUNDING AUTHORITY FOR MINNESOTA
295.12 BOARD ON AGING.
295.13     Subdivision 1. Purpose. This section is for legislative approval to fund additional federal
295.14 money awarded to the Minnesota Board on Aging for federal grants for fiscal years 2026
295.15 and 2027.
295.16     Subd. 2. Older Americans Act Supportive Services grants. The commissioner of
295.17 human services is authorized to expend $6,830,000 in fiscal year 2026 and $6,830,000 in
295.18 fiscal year 2027 for Older Americans Act Supportive Services grants as described in the
295.19 award notice for Catalog of Federal Domestic Assistance 93.044. The total amount authorized
295.20 over the two years may be spent in either year of the biennium.
295.21     Subd. 3. Older Americans Act Home Delivered Meals award. The commissioner of
295.22 human services is authorized to expend $8,099,000 in fiscal year 2026 and $8,099,000 in
295.23 fiscal year 2027 for Older Americans Act Home Delivered Meals grants as described in the
295.24 award notice for Catalog of Federal Domestic Assistance 93.045. The total amount authorized
295.25 over the two years may be spent in either year of the biennium.
295.26     Subd. 4. Older Americans Act Elder Abuse Prevention award. The commissioner
295.27 of human services is authorized to expend $76,000 in fiscal year 2026 and $76,000 in fiscal
295.28 year 2027 for Older Americans Act Home Elder Abuse Prevention grants as described in
295.29 the award notice for Catalog of Federal Domestic Assistance 93.041. The total amount
295.30 authorized over the two years may be spent in either year of the biennium.
295.31     Subd. 5. Minnesota Medical Care Demo Project award. The commissioner of human
295.32 services is authorized to expend $580,000 in fiscal year 2026 and $580,000 in fiscal year
295.33 2027 for Minnesota Medical Care Demo Project grants as described in the award notice for
  Article 12 Sec. 31.  295
  06/07/25  REVISOR     DTT/RC  25-05696  as introduced
296.1  Catalog of Federal Domestic Assistance 93.048. The total amount authorized over the two
296.2  years may be spent in either year of the biennium.
296.3      Subd. 6. Older Americans Act Family Caregivers award. The commissioner of human
296.4  services is authorized to expend $4,658,000 in fiscal year 2026 and $3,191,000 in fiscal
296.5  year 2027 for Older Americans Act Family Caregivers grants as described in the award
296.6  notice for Catalog of Federal Domestic Assistance 93.052. The total amount authorized
296.7  over the two years may be spent in either year of the biennium.
296.8      Subd. 7. Nutrition Services Incentive Program award. The commissioner of human
296.9  services is authorized to expend $1,475,000 in fiscal year 2026 and $1,475,000 in fiscal
296.10 year 2027 for Nutrition Services Incentive Program grants as described in the award notice
296.11 for Catalog of Federal Domestic Assistance 93.053. The total amount authorized over the
296.12 two years may be spent in either year of the biennium.
296.13     Subd. 8. Older Americans Act Congregate Meals award. The commissioner of human
296.14 services is authorized to expend $7,464,000 in fiscal year 2026 and $7,464,000 in fiscal
296.15 year 2027 for Older Americans Act Congregate Meals grants as described in the award
296.16 notice for Catalog of Federal Domestic Assistance 93.045. The total amount authorized
296.17 over the two years may be spent in either year of the biennium.
296.18     Subd. 9. Ombudsman supplement award. The commissioner of human services is
296.19 authorized to expend $434,000 in fiscal year 2026 and $363,000 in fiscal year 2027 for
296.20 additional ombudsman supplemental money as described in the award notice for Catalog
296.21 of Federal Domestic Assistance 93.042. The total amount authorized over the two years
296.22 may be spent in either year of the biennium.
296.23     Subd. 10. Medicare Improvements for Patients and Providers Act Priority 2
296.24 award. The commissioner of human services is authorized to expend $319,000 in fiscal
296.25 year 2026 and $160,000 in fiscal year 2027 for additional Medicare Improvements for
296.26 Patients and Providers Act Priority 2 money as described in the award notice for Catalog
296.27 of Federal Domestic Assistance 93.071. The total amount authorized over the two years
296.28 may be spent in either year of the biennium.
296.29     Subd. 11. Medicare Improvements for Patients and Providers Act Priority 3
296.30 award. The commissioner of human services is authorized to expend $172,000 in fiscal
296.31 year 2026 and $96,000 in fiscal year 2027 for additional Medicare Improvements for Patients
296.32 and Providers Act Priority 3 money as described in the award notice for Catalog of Federal
296.33 Domestic Assistance 93.071. The total amount authorized over the two years may be spent
296.34 in either year of the biennium.
  Article 12 Sec. 31.  296
  06/07/25  REVISOR      DTT/RC  25-05696  as introduced
297.1      Subd. 12. American Rescue Plan Act Public Health Workforce award. The
297.2  commissioner of human services is authorized to expend $119,000 in fiscal year 2026 and
297.3  $0 in fiscal year 2027 for additional carryforward authority of American Rescue Plan Act
297.4  Public Health Workforce money as described in the award notice for Catalog of Federal
297.5  Domestic Assistance 93.044C. The total amount authorized over the two years may be spent
297.6  in either year of the biennium.
297.7      Subd. 13. American Rescue Plan Act Long Term Care Ombudsman award. The
297.8  commissioner of human services is authorized to expend $154,000 in fiscal year 2026 and
297.9  $40,000 in fiscal year 2027 for additional carryforward authority of American Rescue Plan
297.10 Act Long Term Care Ombudsman money as described in the award notice for Catalog of
297.11 Federal Domestic Assistance 93.747C. The total amount authorized over the two years may
297.12 be spent in either year of the biennium.
297.13     Subd. 14. Adult Protection Elder Justice Act award. The commissioner of human
297.14 services is authorized to expend $470,000 in fiscal year 2026 and $241,000 in fiscal year
297.15 2027 for additional carryforward authority of Adult Protection Elder Justice Act money as
297.16 described in the award notice for Catalog of Federal Domestic Assistance 93.698. The total
297.17 amount authorized over the two years may be spent in either year of the biennium.
297.18   Sec. 32. TRANSFERS AND CANCELLATIONS.
297.19     Subdivision 1. Local planning grant. The fiscal year 2026 and fiscal year 2027 general
297.20 fund base appropriations for local planning grants for creating alternatives to congregate
297.21 living for individuals with lower needs first established under Laws 2011, First Special
297.22 Session chapter 9, article 10, section 3, subdivision 4, paragraph (k), are reduced from
297.23 $254,000 to $0.
297.24     Subd. 2. Cancellation and transfer of family and medical benefit funding. (a)
297.25 $20,000,000 in fiscal year 2026 is canceled from the family and medical benefit account to
297.26 the family and medical benefit insurance fund.
297.27     (b) An amount equal to the amount canceled under paragraph (a) is transferred from the
297.28 family and medical benefit insurance fund to the general fund.
297.29     Subd. 3. Chemical dependency peer specialists grant cancellation. Any unencumbered
297.30 and unexpended amount of the fiscal year 2025 general fund appropriation for grants for
297.31 peer specialists first established under Laws 2016, chapter 189, article 23, section 2,
297.32 subdivision 4, paragraph (f), estimated to be $675,000, is canceled.
  Article 12 Sec. 32.  297
  06/07/25  REVISOR       DTT/RC  25-05696  as introduced
298.1      Subd. 4. Community residential setting transitional grant cancellation. Any
298.2  unencumbered and unexpended amount of the fiscal year 2024 appropriation in Laws 2023,
298.3  chapter 61, article 9, section 2, subdivision 16, paragraph (a), for grants to assist small
298.4  customized living providers to transition to community residential services licensure or
298.5  integrated community supports licensure, estimated to be $5,450,000, is canceled.
298.6      Subd. 5. Retention bonus cancellation. Any unencumbered and unexpended amount
298.7  of the fiscal year 2024 appropriation in Laws 2023, chapter 61, article 9, section 2,
298.8  subdivision 16, paragraph (g), for retention bonuses, estimated to be $27,000,000, is canceled.
298.9      Subd. 6. Orientation payments cancellation. Any unencumbered and unexpended
298.10 amount of the fiscal year 2024 appropriation referenced in Laws 2023, chapter 61, article
298.11 9, section 2, subdivision 16, paragraph (i), for orientation payments, estimated to be
298.12 $1,830,000, is canceled.
298.13     Subd. 7. Opioid overdose prevention grant cancellation. Any unencumbered and
298.14 unexpended amount of the fiscal year 2025 appropriation in Laws 2023, chapter 61, article
298.15 9, section 2, subdivision 18, paragraph (i), clause (1), for opioid overdose prevention
298.16 activities, estimated to be $96,000, is canceled.
298.17     Subd. 8. Day training and habilitation facility grants. The fiscal year 2026 and fiscal
298.18 year 2027 general fund base appropriations for grant allocations to counties for day training
298.19 and habilitation services for adults with developmental disabilities when provided as a social
298.20 service under Minnesota Statutes, sections 252.41 to 252.46, are reduced from $811,000 to
298.21 $0. The general fund base for this purpose is $811,000 in fiscal year 2028 and $811,000 in
298.22 fiscal year 2029.
298.23     Subd. 9. Transfer from the state government special revenue fund to the general
298.24 fund. The commissioner of management and budget must transfer $6,395,000 in fiscal year
298.25 2026 and $12,790,000 in fiscal year 2027 from the state government special revenue fund
298.26 to the general fund. The commissioner of management and budget must include a transfer
298.27 of $12,790,000 each year from the state government special revenue fund to the general
298.28 fund in each forecast prepared under Minnesota Statutes, section 16A.103, from the effective
298.29 date of this subdivision through the February 2027 forecast.
298.30     EFFECTIVE DATE. This section is effective the day following final enactment.
298.31   Sec. 33. TRANSFER AUTHORITY.
298.32     Subdivision 1. Grants. The commissioner of human services, with the advance approval
298.33 of the commissioner of management and budget, may transfer unencumbered appropriation
  Article 12 Sec. 33.  298
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
299.1  balances for the biennium ending June 30, 2027, within fiscal years among general assistance,
299.2  medical assistance, MinnesotaCare, the Minnesota supplemental aid program, the housing
299.3  support program, and the entitlement portion of the behavioral health fund between fiscal
299.4  years of the biennium. The commissioner must submit to the chairs and ranking minority
299.5  members of the legislative committees with jurisdiction over health and human services a
299.6  quarterly grants transfer report. The report must include the amounts transferred and the
299.7  purpose of each transfer.
299.8      Subd. 2. Administration; intra-agency transfers. Positions, salary money, and nonsalary
299.9  administrative money may be transferred within the Department of Human Services as the
299.10 commissioner deems necessary, with the advance approval of the commissioner of
299.11 management and budget. The commissioner must submit to the chairs and ranking minority
299.12 members of the legislative committees with jurisdiction over health and human services
299.13 finance a quarterly intra-agency transfer report. The report must include the amounts
299.14 transferred and the purpose of each transfer.
299.15     Subd. 3. Administration; interagency transfers. During fiscal year 2026, with advance
299.16 approval of the commissioner of management and budget, administrative money may be
299.17 transferred between the Department of Human Services and Direct Care and Treatment as
299.18 the commissioner and executive board deem necessary. The commissioner and executive
299.19 board must submit to the chairs and ranking minority members of the legislative committees
299.20 with jurisdiction over human services and direct care and treatment an interagency transfers
299.21 report. The report must include the amounts transferred and the purpose of each transfer.
299.22   Sec. 34. APPROPRIATIONS GIVEN EFFECT ONCE.
299.23     If an appropriation, transfer, or cancellation in this article is enacted more than once
299.24 during the 2025 first special session, the appropriation, transfer, or cancellation must be
299.25 given effect once.
299.26   Sec. 35. EXPIRATION OF UNCODIFIED LANGUAGE.
299.27     All uncodified language contained in this article expires on June 30, 2027, unless a
299.28 different expiration date is explicit.
299.29   Sec. 36. EFFECTIVE DATE.
299.30     This article is effective July 1, 2025, unless a different effective date is specified.
  Article 12 Sec. 36.  299
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
300.1ARTICLE 13
300.2DIRECT CARE AND TREATMENT APPROPRIATIONS
300.3  Section 1. DIRECT CARE AND TREATMENT APPROPRIATIONS.
300.4      The sums shown in the columns marked "Appropriations" are appropriated to the
300.5  executive board of direct care and treatment and for the purposes specified in this article.
300.6  The appropriations are from the general fund, or another named fund, and are available for
300.7  the fiscal years indicated for each purpose. The figures "2026" and "2027" used in this
300.8  article mean that the appropriations listed under them are available for the fiscal year ending
300.9  June 30, 2026, or June 30, 2027, respectively. "The first year" is fiscal year 2026. "The
300.10 second year" is fiscal year 2027. "The biennium" is fiscal years 2026 and 2027.
300.11APPROPRIATIONS
300.12Available for the Year
300.13Ending June 30
300.142026  2027
300.15 Sec. 2. EXECUTIVE BOARD OF DIRECT
300.16 CARE AND TREATMENT; TOTAL
300.17 APPROPRIATION  $    577,459,000 $      602,805,000
300.18 The amounts that may be spent for each
300.19 purpose are specified in the following sections.
300.20 Sec. 3. MENTAL HEALTH AND SUBSTANCE
300.21 ABUSE  $  189,761,000 $      194,840,000
300.22 Base Level Adjustments
300.23 The general fund base for this section is
300.24 $194,840,000 in fiscal year 2028 and
300.25 $236,500,000 in fiscal year 2029. The fiscal
300.26 year 2029 general fund base includes
300.27 $41,660,000 to operate the replacement facility
300.28 for the Miller Building on the Anoka Metro
300.29 Regional Treatment Center campus. If a
300.30 bonding appropriation for the replacement for
300.31 the Miller Building is not enacted during the
300.32 2025 first special session, the fiscal year 2029
300.33 general fund base is reduced by $41,660,000.
300.34 Sec. 4. COMMUNITY-BASED SERVICES  $     13,927,000 $       14,170,000
300.35 Sec. 5. FORENSIC SERVICES  $    160,239,000 $      164,094,000
  Article 13 Sec. 5.  300
  06/07/25  REVISOR  DTT/RC  25-05696  as introduced
301.1  Sec. 6. SEX OFFENDER PROGRAM  $   128,050,000 $   131,351,000
301.2  Sec. 7. ADMINISTRATION  $    85,482,000 $    98,350,000
301.3  Subdivision 1. Locked Psychiatric Residential
301.4  Treatment Facility Planning
301.5  (a) $100,000 in fiscal year 2026 is for planning
301.6  a build out of a locked psychiatric residential
301.7  treatment facility operated by Direct Care and
301.8  Treatment. This is a onetime appropriation
301.9  and is available until June 30, 2027.
301.10 (b) By March 1, 2026, the executive board
301.11 must report to the chairs and ranking minority
301.12 members of the legislative committees with
301.13 jurisdiction over human services finance and
301.14 policy on the plan developed using the
301.15 appropriation in this section to build out a
301.16 locked psychiatric residential treatment facility
301.17 (PRTF) operated by Direct Care and
301.18 Treatment.
301.19 (c) The report must include but is not limited
301.20 to the following information:
301.21 (1) the risks and benefits of locating the locked
301.22 PRTF in a metropolitan or rural location;
301.23 (2) the estimated cost for the build out of the
301.24 locked PRTF;
301.25 (3) the estimated ongoing cost of maintaining
301.26 the locked PRTF; and
301.27 (4) the estimated amount of costs that can be
301.28 recouped from medical assistance,
301.29 MinnesotaCare, and private insurance
301.30 payments.
301.31 Subd. 2. Base Level Adjustment
301.32 The general fund base for this section is
301.33 $97,566,000 in fiscal year 2028 and
  Article 13 Sec. 7.  301
  06/07/25  REVISOR        DTT/RC  25-05696  as introduced
302.1  $101,736,000 in fiscal year 2029. The fiscal
302.2  year 2029 general fund base includes
302.3  $4,170,000 for administration and operational
302.4  support for the replacement facility for the
302.5  Miller Building on the Anoka Metro Regional
302.6  Treatment Center campus. If a bonding
302.7  appropriation for the replacement of the Miller
302.8  Building is not enacted during a 2025 special
302.9  session, the fiscal year 2029 general fund base
302.10 is reduced by $4,170,000.
302.11   Sec. 8. Laws 2024, chapter 125, article 8, section 2, subdivision 19, is amended to read:
302.12 Subd. 19. Direct Care and Treatment - Forensic
302.13 Services  -0-        7,752,000
302.14 (a) Employee incentives. $1,000,000 in fiscal
302.15 year 2025 is for incentives related to the
302.16 transition of CARE St. Peter to the forensic
302.17 mental health program. Employee incentive
302.18 payments under this paragraph must be made
302.19 to all employees who transitioned from CARE
302.20 St. Peter to another direct care and treatment
302.21 program, including employees who
302.22 transitioned prior to the closure of CARE St.
302.23 Peter. Employee incentive payments must total
302.24 $30,000 per transitioned employee, subject to
302.25 the payment schedule and service requirements
302.26 in this paragraph. The first incentive payment
302.27 of $4,000 must be made after the employee
302.28 has completed six months of service as an
302.29 employee of another direct care and treatment
302.30 program, followed by $6,000 at 12 months of
302.31 completed service, $8,000 at 18 months of
302.32 completed service, and $12,000 at 24 months
302.33 of completed ser