Journal of the House - 97th Day - Tuesday, April 2, 2024 - Top of Page 12355

STATE OF MINNESOTA

 

Journal of the House

 

NINETY-THIRD SESSION - 2024

 

_____________________

 

NINETY-SEVENTH DAY

 

Saint Paul, Minnesota, Tuesday, April 2, 2024

 

 

      The House of Representatives convened at 12:00 noon and was called to order by Melissa Hortman, Speaker of the House.

 

      Prayer was offered by Wyatt Lawrence, Senior High Youth Director, New Life Church, Princeton, Minnesota.

 

      The members of the House gave the pledge of allegiance to the flag of the United States of America.

 

      The Speaker administered the oath of office to the new House member, Bryan Lawrence from District 27B. Representative Lawrence’s certificate of election is on file.  Representative Lawrence was elected in a special election held on Tuesday, March 19, 2024 to replace Kurt Daudt whose resignation was effective at 11:59 p.m. on Sunday, February 11, 2024.

 

      The roll was called and the following members were present:

 


Acomb

Agbaje

Anderson, P. E.

Anderson, P. H.

Backer

Bahner

Bakeberg

Baker

Becker-Finn

Berg

Bierman

Bliss

Brand

Burkel

Carroll

Clardy

Coulter

Daniels

Davids

Davis

Demuth

Dotseth

Edelson

Elkins

Engen

Feist

Fischer

Fogelman

Franson

Frazier

Frederick

Freiberg

Garofalo

Gomez

Greenman

Grossell

Hansen, R.

Hanson, J.

Harder

Hassan

Heintzeman

Hemmingsen-Jaeger

Her

Hicks

Hill

Hollins

Hornstein

Howard

Hudella

Hudson

Huot

Hussein

Igo

Jacob

Johnson

Jordan

Joy

Keeler

Klevorn

Knudsen

Koegel

Kotyza-Witthuhn

Koznick

Kraft

Kresha

Lawrence

Lee, F.

Lee, K.

Liebling

Lillie

Lislegard

Long

McDonald

Mekeland

Moller

Mueller

Murphy

Myers

Nadeau

Nash

Nelson, M.

Nelson, N.

Neu Brindley

Newton

Niska

Noor

Norris

Novotny

O'Driscoll

Olson, B.

Olson, L.

Pelowski

Pérez-Vega

Perryman

Petersburg

Pinto

Pryor

Pursell

Quam

Rehm

Reyer

Robbins

Schomacker

Schultz

Scott

Sencer-Mura

Skraba

Smith

Stephenson

Swedzinski

Torkelson

Urdahl

Vang

Virnig

Wiens

Witte

Xiong

Youakim

Zeleznikar

Spk. Hortman


 

      A quorum was present.

 

      Altendorf, Bennett, Cha, Curran, Finke, Gillman, Kiel, Kozlowski, Pfarr, Rarick, Tabke, West, Wiener and Wolgamott were excused.

 

      The Chief Clerk proceeded to read the Journal of the preceding day.  There being no objection, further reading of the Journal was dispensed with and the Journal was approved as corrected by the Chief Clerk.


Journal of the House - 97th Day - Tuesday, April 2, 2024 - Top of Page 12356

PETITIONS AND COMMUNICATIONS

 

 

      The following communications were received:

 

 

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

 

March 21, 2024

 

The Honorable Melissa Hortman

Speaker of the House of Representatives

The State of Minnesota

 

Dear Speaker Hortman:

 

      Please be advised that I have received, approved, signed, and deposited in the Office of the Secretary of State the following House Files:

 

H. F. No. 3987, relating to human services; implementing transfer of duties from the Department of Human Services to the Department of Direct Care and Treatment; establishing general executive board duties, powers, rulemaking authority, and contracting for administrative services; making conforming changes.

 

H. F. No. 3646, relating to children, youth, and families; creating the statutory infrastructure for the new Department of Children, Youth, and Families; moving and copying statutes.

 

 

                                                                                                                                Sincerely,

 

                                                                                                                                Tim Walz

                                                                                                                                Governor

 

 

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

 

March 25, 2024

 

The Honorable Melissa Hortman

Speaker of the House of Representatives

The State of Minnesota

 

Dear Speaker Hortman:

 

      Please be advised that I have received, approved, signed, and deposited in the Office of the Secretary of State the following House File:

 

H. F. No. 4518, relating to education finance; making forecast adjustments; appropriating money.

 

 

                                                                                                                                Sincerely,

 

                                                                                                                                Tim Walz

                                                                                                                                Governor


Journal of the House - 97th Day - Tuesday, April 2, 2024 - Top of Page 12357

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

 

The Honorable Melissa Hortman

Speaker of the House of Representatives

 

The Honorable Bobby Joe Champion

President of the Senate

 

      I have the honor to inform you that the following enrolled Acts of the 2024 Session of the State Legislature have been received from the Office of the Governor and are deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

 

 

S. F.

No.

 

H. F.

No.

 

Session Laws

Chapter No.

Time and

Date Approved

2024

 

Date Filed

2024

 

                                3987                      79                                            4:01 p.m.  March 21                           March 21

                                3646                       80                                           4:04 p.m.  March 21                           March 21

                                4518                       81                                           4:17 p.m.  March 25                           March 25

 

 

                                                                                                                                Sincerely,

 

                                                                                                                                Steve Simon

                                                                                                                                Secretary of State

 

 

REPORTS OF STANDING COMMITTEES AND DIVISIONS

 

 

Moller from the Committee on Public Safety Finance and Policy to which was referred:

 

H. F. No. 310, A bill for an act relating to public safety; modifying residency provisions for certain level III predatory offenders; amending Minnesota Statutes 2022, section 244.052, subdivision 4a.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1.  Minnesota Statutes 2022, section 244.052, subdivision 4a, is amended to read:

 

Subd. 4a.  Level III offenders; location of residence.  (a) When an offender assigned to risk level III is released from confinement or a residential facility to reside in the community or changes residence while on supervised or conditional release, the agency responsible for the offender's supervision shall:

 

(1) take into consideration the proximity of the offender's residence to that of other level III offenders and if the proximity presents a risk of reoffending;

 

(2) take into consideration the proximity to of the offender's residence to the following locations if the locations present a risk of reoffending:

 

(i) schools;

 

(ii) child care facilities or family or group family day care programs;


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(iii) licensed residences for vulnerable adults;

 

(iv) attractions within public parks that are regularly used by minors, including but not limited to playgrounds or athletic fields; and

 

(v) community centers and recreation centers that are regularly used in youth athletic activities or offer regularly scheduled indoor playtimes or access to gymnasiums and other facilities that are restricted to minors; and,

 

(3) to the greatest extent feasible, shall mitigate the concentration of level III offenders and concentration of level III offenders near schools the locations listed in clause (2) when the concentration presents a risk of reoffending.

 

(b) If the owner or property manager of a hotel, motel, lodging establishment, or apartment building has an agreement with an agency that arranges or provides shelter for victims of domestic abuse, the owner or property manager may not knowingly rent rooms to both level III offenders and victims of domestic abuse at the same time.  If the owner or property manager has an agreement with an agency to provide housing to domestic abuse victims and discovers or is informed that a tenant is a level III offender after signing a lease or otherwise renting to the offender, the owner or property manager may evict the offender."

 

 

With the recommendation that when so amended the bill be placed on the General Register.

 

      The report was adopted.

 

 

Pinto from the Committee on Children and Families Finance and Policy to which was referred:

 

H. F. No. 912, A bill for an act relating to human services; establishing the Minnesota African American Family Preservation Act; establishing the African American Child Welfare Council; modifying child welfare provisions; requiring reports; appropriating money; amending Minnesota Statutes 2022, section 260C.329, subdivisions 3, 8; proposing coding for new law in Minnesota Statutes, chapter 260.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1.  [260.61] CITATION.

 

Sections 260.61 to 260.697 may be cited as the "Layla Jackson Law."

 

Sec. 2.  [260.62] PURPOSES.

 

(a) The purposes of the Layla Jackson Law are to:

 

(1) protect the best interests of African American and disproportionately represented children;

 

(2) promote the stability and security of African American and disproportionately represented children and families by establishing minimum standards to prevent the arbitrary and unnecessary removal of African American and disproportionately represented children from their families; and

 

(3) improve permanency outcomes, including family reunification, for African American and disproportionately represented children.


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(b) Nothing in this legislation is intended to interfere with the protections of the Indian Child Welfare Act of 1978, United States Code, title 25, sections 1901 to 1963.

 

Sec. 3.  [260.63] DEFINITIONS.

 

Subdivision 1.  Scope.  The definitions in this section apply to sections 260.61 to 260.697.

 

Subd. 2.  Active efforts.  "Active efforts" means a rigorous and concerted level of effort that the responsible social services agency must continuously make throughout the time that the responsible social services agency is involved with an African American or a disproportionately represented child and the child's family.  To provide active efforts to preserve an African American or a disproportionately represented child's family, the responsible social services agency must continuously involve an African American or a disproportionately represented child's family in all services for the family, including case planning and choosing services and providers, and inform the family of the ability to request a case review by the commissioner under section 260.694.  When providing active efforts, a responsible social services agency must consider an African American or a disproportionately represented family's social and cultural values at all times while providing services to the African American or disproportionately represented child and family.  Active efforts includes continuous efforts to preserve an African American or a disproportionately represented child's family and to prevent the out-of-home placement of an African American or a disproportionately represented child.  If an African American or a disproportionately represented child enters out-of-home placement, the responsible social services agency must make active efforts to reunify the African American or disproportionately represented child with the child's family as soon as possible.  Active efforts sets a higher standard for the responsible social services agency than reasonable efforts to preserve the child's family, prevent the child's out-of-home placement, and reunify the child with the child's family.  Active efforts includes the provision of reasonable efforts as required by Title IV-E of the Social Security Act, United States Code, title 42, sections 670 to 679c.

 

Subd. 3.  Adoptive placement.  "Adoptive placement" means the permanent placement of an African American or a disproportionately represented child made by the responsible social services agency upon a fully executed adoption placement agreement, including the signatures of the adopting parent, the responsible social services agency, and the commissioner of human services according to section 260C.613, subdivision 1.

 

Subd. 4.  African American child.  "African American child" means a child having origins in Africa, including a child of two or more races who has at least one parent with origins in Africa.

 

Subd. 5.  Best interests of the African American or disproportionately represented child.  The "best interests of the African American or disproportionately represented child" means providing a culturally informed practice lens that acknowledges, utilizes, and embraces the African American or disproportionately represented child's community and cultural norms and allows the child to remain safely at home with the child's family.  The best interests of the African American or disproportionately represented child support the child's sense of belonging to the child's family, extended family, kin, and cultural community.

 

Subd. 6.  Child placement proceeding.  (a) "Child placement proceeding" means any judicial proceeding that could result in:

 

(1) an adoptive placement;

 

(2) a foster care placement;

 

(3) a preadoptive placement; or

 

(4) a termination of parental rights.


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(b) Judicial proceedings under this subdivision include a child's placement based upon a child's juvenile status offense, but do not include a child's placement based upon:

 

(1) an act which if committed by an adult would be deemed a crime; or

 

(2) an award of child custody in a divorce proceeding to one of the child's parents.

 

Subd. 7.  Commissioner.  "Commissioner" means the commissioner of human services or the commissioner's designee.

 

Subd. 8.  Custodian.  "Custodian" means any person who is under a legal obligation to provide care and support for an African American or a disproportionately represented child, or who is in fact providing daily care and support for an African American or a disproportionately represented child.  This subdivision does not impose a legal obligation upon a person who is not otherwise legally obligated to provide a child with necessary food, clothing, shelter, education, or medical care.

 

Subd. 9.  Disproportionality.  "Disproportionality" means the overrepresentation of African American children and other disproportionately represented children in the state's child welfare system population as compared to the representation of those children in the state's total child population.

 

Subd. 10.  Disproportionately represented child.  "Disproportionately represented child" means a child whose race, culture, ethnicity, disability status, or low-income socioeconomic status is disproportionately encountered, engaged, or identified in the child welfare system as compared to the representation in the state's total child population.

 

Subd. 11.  Egregious harm.  "Egregious harm" has the meaning given in section 260E.03, subdivision 5.

 

Subd. 12.  Foster care placement.  "Foster care placement" means the court-ordered removal of an African American or a disproportionately represented child from the child's home with the child's parent or legal custodian and the temporary placement of the child in a foster home, in shelter care or a facility, or in the home of a guardian, when the parent or legal custodian cannot have the child returned upon demand, but the parent's parental rights have not been terminated.  A foster care placement includes an order placing the child under the guardianship of the commissioner, pursuant to section 260C.325, prior to an adoption being finalized.

 

Subd. 13.  Imminent physical damage or harm.  "Imminent physical damage or harm" means that a child is threatened with immediate and present conditions that are life-threatening or likely to result in abandonment, sexual abuse, or serious physical injury.  The immediate and present conditions must have a direct causal relationship with the physical harm threatened.  The existence of community or family poverty, isolation, single parenthood, age of the parent, crowded or inadequate housing, substance use, prenatal drug or alcohol exposure, mental illness, disability or special needs of the parent or child, or nonconforming social behavior does not by itself constitute imminent physical damage or harm.

 

Subd. 14.  Responsible social services agency.  "Responsible social services agency" has the meaning given in section 260C.007, subdivision 27a.

 

Subd. 15.  Parent.  "Parent" means the biological parent of an African American or a disproportionately represented child or any person who has legally adopted an African American or a disproportionately represented child who, prior to the adoption, was considered a relative to the child, as defined in subdivision 17.  Parent includes an unmarried father whose paternity has been acknowledged or established and a putative father.  Paternity has been acknowledged when an unmarried father takes any action to hold himself out as the biological father of a child.

 

Subd. 16.  Preadoptive placement.  "Preadoptive placement" means a responsible social services agency's placement of an African American or a disproportionately represented child with the child's family or kin when the child is under the guardianship of the commissioner, for the purpose of adoption, but an adoptive placement agreement for the child has not been fully executed.


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Subd. 17.  Relative.  "Relative" means:

 

(1) an individual related to the child by blood, marriage, or adoption;

 

(2) a legal parent, guardian, or custodian of the child's sibling;

 

(3) an individual who is an important friend of the child or child's family with whom the child has resided or has had significant contact; or

 

(4) an individual who the child or the child's family identify as related to the child's family.

 

Subd. 18.  Safety network.  "Safety network" means a group of individuals identified by the parent and child, when appropriate, that is accountable for developing, implementing, sustaining, supporting, or improving a safety plan to protect the safety and well-being of a child.

 

Subd. 19.  Sexual abuse.  "Sexual abuse" has the meaning given in section 260E.03, subdivision 20.

 

Subd. 20.  Termination of parental rights.  "Termination of parental rights" means an action resulting in the termination of the parent-child relationship under section 260C.301.

 

Sec. 4.  [260.64] DUTY TO PREVENT OUT-OF-HOME PLACEMENT AND PROMOTE FAMILY REUNIFICATION.

 

(a) A responsible social services agency shall make active efforts to prevent the out-of-home placement of an African American or a disproportionately represented child, eliminate the need for a child's removal from the child's home, and reunify an African American or a disproportionately represented child with the child's family as soon as practicable.

 

(b) Prior to petitioning the court to remove an African American or a disproportionately represented child from the child's home, a responsible social services agency must work with the child's family to allow the child to remain in the child's home while implementing a safety plan based on the family's needs.  The responsible social services agency must:

 

(1) make active efforts to engage the child's parent or custodian and the child, when appropriate;

 

(2) assess the family's cultural and economic needs;

 

(3) hold a family group consultation meeting and connect the family with supports to establish a safety network for the family; and

 

(4) provide support, guidance, and input to assist the family and the family's safety network with developing the safety plan.

 

(c) The safety plan must:

 

(1) address the specific allegations impacting the child's safety in the home.  If neglect is alleged, the safety plan must incorporate economic services and supports to address the family's specific needs and prevent neglect;

 

(2) evaluate whether an order for protection under section 518B.01 or other court order expelling an allegedly abusive household member from the home of a parent or custodian who is not alleged to be abusive will allow the child to safely remain in the home;


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(3) incorporate family and community support to ensure the child's safety while keeping the family intact; and

 

(4) be adjusted as needed to address the child's and family's ongoing needs and support.

 

The responsible social services agency is not required to establish a safety plan in a case with allegations of sexual abuse or egregious harm.

 

Sec. 5.  [260.65] EMERGENCY REMOVAL.

 

Subdivision 1.  Emergency removal or placement permitted.  Nothing in this section shall be construed to prevent the emergency removal of an African American or a disproportionately represented child's parent or custodian, or the emergency placement of the child in a foster setting, in order to prevent imminent physical damage or harm to the child.

 

Subd. 2.  Petition for emergency removal; placement requirements.  A petition for a court order authorizing the emergency removal or continued emergency placement of an African American or a disproportionately represented child or the petition's accompanying documents must contain a statement of the risk of imminent physical damage or harm to the African American or disproportionately represented child and any evidence that the emergency removal or placement continues to be necessary to prevent imminent physical damage or harm to the child.  The petition or its accompanying documents must also include a statement of the efforts that have been made to assist the child's parents or custodians so that the child may safely be returned to their custody.

 

Subd. 3.  Notice and service requirements.  (a) The petition for emergency removal and accompanying documents must be served on the parent and, if the child is not located in the child's home at the time that the child is removed, on the entity or individual with custody of the child.  If the court authorizes an emergency removal under subdivision 2, the petition and accompanying documents must be served on the parents or custodians at the time of the child's removal unless, after active efforts, the parents or custodians cannot be located at the time of removal.

 

(b) Whenever the responsible social services agency is notified that a child is removed pursuant to a court order issued under subdivision 2, the responsible social services agency shall make active efforts to provide notice to the parent or custodian of:

 

(1) the fact that the child has been removed from the child's home;

 

(2) the reasons for the child's emergency removal; and

 

(3) the parent or custodian's legal rights under this chapter, chapter 260C, and any other applicable provisions of statute, including the right to an emergency hearing under subdivision 4.

 

(c) Notice under paragraph (b) must be provided in plain language and take into consideration the parent or custodian's primary language, level of education, and culture.  Notice may be given by any means reasonably certain of notifying the parent or custodian including but not limited to written, telephone, or in-person oral notification.  If the initial notification is provided by a means other than in writing, the responsible social services agency shall make active efforts to also provide written notification.

 

(d) Notice required under this subdivision must be provided to the parent or custodian no more than 24 hours after the child has been removed or 24 hours after the responsible social services agency has been notified that the child has been removed pursuant to subdivision 2.

 

Subd. 4.  Emergency proceeding requirements.  (a) The court shall hold a hearing no later than 72 hours, excluding weekends and holidays, after the emergency removal of the African American or disproportionately represented child.  The court shall determine whether the emergency removal continues to be necessary to prevent


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imminent physical damage or harm to the child and whether, after considering the child's particular circumstances, the imminent physical damage or harm to the child outweighs the harm that the child will experience as a result of continuing the emergency removal.

 

(b) The court shall hold additional hearings whenever new information indicates that the emergency situation has ended.  The court shall consider all such new information at any court hearing after the emergency proceeding to determine whether the emergency removal or placement is no longer necessary to prevent imminent physical damage or harm to the child.

 

(c) Notwithstanding section 260C.163, subdivision 3, and the provisions of Minnesota Rules of Juvenile Protection Procedure, rule 25, a parent or custodian of an African American or a disproportionately represented child who is subject to an emergency hearing under this section and Minnesota Rules of Juvenile Protection Procedure, rule 30, must be represented by counsel.  The court must appoint qualified counsel to represent a parent if the parent meets the eligibility requirements in section 611.17.

 

Subd. 5.  Termination of emergency removal or placement.  (a) An emergency removal or placement of an African American or a disproportionately represented child must immediately terminate once the responsible social services agency or court possesses sufficient evidence to determine that the emergency removal or placement is no longer necessary to prevent imminent physical damage or harm to the child and the child shall be immediately returned to the custody of the child's parent or custodian.  The responsible social services agency or court shall ensure that the emergency removal or placement terminates immediately when the removal or placement is no longer necessary to prevent imminent physical damage or harm to the African American or disproportionately represented child.

 

(b) If the court determines that custody of the child by the child's parent or custodian is likely to result in serious physical harm to the child, after service upon the African American or disproportionately represented child's parents or custodian and upon a determination supported by clear and convincing evidence, the court shall further consider whether participation by the parents or legal custodians in any prevention services would prevent or eliminate the need for removal.  If so, the court shall inquire of the parent or custodian whether they are willing to participate in such services.  If the parent or custodian agrees to participate in the prevention services identified by the court that would prevent or eliminate the need for removal, the court shall place the child with the parent or custodian and the emergency removal shall terminate.  The court shall not order a parent to participate in prevention services over the parent's or custodian's objection and the parent or custodian must have the opportunity to consult with counsel prior to deciding whether to agree to proposed prevention services as a condition of the child being returned to the custody of the parent or custodian.

 

(c) If the court determines that custody of the child by the child's parent or custodian is likely to result in serious physical harm to the child, the court shall further consider whether an order for protection under section 518B.01 or other court order expelling an allegedly abusive household member from the home of a parent or custodian who is not alleged to be abusive will allow the child to safely return to the home.

 

(d) In no instance shall emergency removal or emergency placement of an African American or a disproportionately represented child extend beyond 30 days unless the court finds by a showing of clear and convincing evidence that:

 

(1) continued emergency removal or placement is necessary to prevent imminent physical damage or harm to the child; and

 

(2) it has not been possible to initiate a child placement proceeding with all of the protections under sections 260.61 to 260.694.

 

Sec. 6.  [260.66] NONCUSTODIAL PARENTS; TEMPORARY OUT-OF-HOME PLACEMENT.

 

(a) Prior to the removal of an African American or a disproportionately represented child from the child's home, the responsible social services agency must make active efforts to identify and locate the child's noncustodial or nonadjudicated parent and the child's relatives to notify the child's parent and relatives that the child is or will be


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placed in foster care, and provide the child's parent and relatives with a list of legal resources.  The notice to the child's noncustodial or nonadjudicated parent and relatives must also include the information required under section 260C.221, subdivision 2, paragraph (b).  The responsible social services agency must maintain detailed records of the agency's efforts to notify parents and relatives under this section.

 

(b) Notwithstanding the provisions of section 260C.219, the responsible social services agency must assess an African American or a disproportionately represented child's noncustodial or nonadjudicated parent's ability to care for the child before placing the child in foster care.  If a child's noncustodial or nonadjudicated parent is willing and able to provide daily care for the African American or disproportionately represented child temporarily or permanently, the court shall order that the child be placed in the home of the noncustodial or nonadjudicated parent pursuant to section 260C.178 or 260C.201, subdivision 1.  The responsible social services agency must make active efforts to assist a noncustodial or nonadjudicated parent with remedying any issues that may prevent the child from being placed with the noncustodial or nonadjudicated parent.

 

Sec. 7.  [260.67] RELATIVE PLACEMENT.

 

Subdivision 1.  Relative placement procedures and requirements.  (a) If an African American or a disproportionately represented child's noncustodial or nonadjudicated parent is unwilling or unable to provide daily care for the child and the court has determined that the child's continued placement in the home of the child's parent or custodian would endanger the child's health, safety, or welfare, the child's parent, custodian, or the child, when appropriate, has the right to select one or more relatives who may be willing and able to temporarily care for the child.  The responsible social services agency must place the child with a selected relative after assessing the relative's willingness and ability to provide daily care for the child.

 

(b) The responsible social services agency shall consider additional relatives for the child's placement if:

 

(1) the selected relative or relatives are unavailable, unwilling, or unable to provide daily care for the child; or

 

(2) conditions or circumstances exist that would disqualify the selected relative or relatives from being licensed family foster parents and the disqualifying conditions or circumstances would not be eligible for a variance from the commissioner.

 

(c) The responsible social services agency must inform selected relatives and the child's parent or custodian of the difference between informal kinship care arrangements and court-ordered foster care.  If a selected relative and the child's parent or custodian request an informal kinship care arrangement for a child's placement instead of court‑ordered foster care and such an arrangement will maintain the child's safety and well-being, the responsible social services agency shall comply with the request and inform the court of the plan for the child.  The court shall honor the request to forego a court-ordered foster care placement of the child in favor of an informal kinship care arrangement, unless the court determines that the request is not in the best interests of the African American or disproportionately represented child.

 

(d) The responsible social services agency must make active efforts to support a relative with whom a child is placed in completing the family foster care licensure process and addressing barriers, disqualifications, or other issues affecting the relative's licensure, including but not limited to assisting the relative with requesting reconsideration of a disqualification under section 245C.21.

 

(e) The decision by a relative to not be considered as an African American or a disproportionately represented child's foster care or temporary placement option shall not be a basis for the responsible social services agency or the court to rule out the relative for placement in the future or for denying the relative's request to be considered or selected as a foster care or permanent placement of the child.

 

Subd. 2.  Authorization for nonrelative foster care or temporary placement.  (a) An African American or a disproportionately represented child must be placed with a noncustodial or nonadjudicated parent under section 260.66 or with a relative pursuant to subdivision 1, unless the responsible social services agency establishes that there is reasonable cause to believe that:


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(1) placement in nonrelative foster care is necessary to prevent imminent physical damage or harm to the child, including that which would result from sexual abuse or sexual exploitation, because no noncustodial or nonadjudicated parent or relative is capable of ensuring the child's basic safety; or

 

(2) placement with a noncustodial or nonadjudicated parent or relative would hinder efforts to reunify the child and the parent.

 

(b) If the court orders the placement of an African American or a disproportionately represented child in nonrelative foster care, the court order must state the reasons for placement in nonrelative foster care.

 

(c) Before authorizing nonrelative foster care or temporary placement for an African American or a disproportionately represented child under paragraph (a), the court must ask the petitioner and any other person present at the hearing whether any relatives are willing and able to care for the child, including:

 

(1) whether any relative is able to meet any special needs of the child;

 

(2) whether the relative is willing to facilitate the child's sibling and parent or custodian visitation if such visitation is ordered by the court; and

 

(3) whether the relative supports reunification of the parent or custodian and child once reunification can safely occur.

 

(d) If a relative has been determined to be willing and able to be a placement resource for the child, the following shall not prevent the child's placement with the relative:

 

(1) an incomplete background study, if the relative is otherwise willing and able to provide care and safety, provided that the background study must be completed as soon as possible after placement;

 

(2) the relative's uncertainty regarding potential adoption of the child;

 

(3) the relative's disbelief that the parent or custodian presents a danger to the child, provided that the relative will protect the safety of the child and comply with court orders regarding contact with a parent or custodian; or

 

(4) the conditions of the relative's home are not sufficient to satisfy the requirements for foster parent licensure.  The court may order the responsible social services agency to provide active efforts under subdivision 1, paragraph (c).

 

Sec. 8.  [260.68] CHILD IN NEED OF PROTECTION OR SERVICES; OUT-OF-HOME PLACEMENT PROCEEDINGS.

 

Subdivision 1.  Standard for ordering out-of-home placement.  (a) A court shall not order a foster care or permanent out-of-home placement of an African American or a disproportionately represented child alleged to be in need of protection or services unless the court finds by clear and convincing evidence that the child would be at risk of serious physical harm if the child were to remain in the child's home.

 

(b) Before ordering a foster care placement or permanent out-of-home placement of an African American or a disproportionately represented child under paragraph (a), the court must:

 

(1) find that no alternative resources or arrangements are available to the family that would adequately safeguard the child without requiring out-of-home placement;

 

(2) evaluate the harm to the child that may result from foster care placement or permanent out-of-home placement by considering:

 

(i) the disruption to the child's schooling and social relationships that may result from placement out of the child's home or neighborhood;


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(ii) detrimental long-term emotional and psychological impacts of disrupting the relationship between children and their parents; and

 

(iii) any measures that may be taken to alleviate such a disruption;

 

(3) determine whether a parent or custodian's noncompliance with any conditions or requirements of an out‑of‑home placement plan resulted from circumstances beyond the parent or custodian's control and if so, give due consideration to those circumstances;

 

(4) inquire into efforts that have been made to place the child with a relative, including asking a parent or custodian whether the responsible social services agency discussed with them the placement of the child with a relative;

 

(5) determine that the out-of-home placement proposed by the responsible services agency is the least disruptive and most family-like setting that meets the needs of the child;

 

(6) evaluate the services provided to the family to prevent or eliminate the need for removal of the child from the child's home.  If the petition for a child in need of child protective services or other information before the court alleges that homelessness or the lack of suitable housing was a significant factor contributing to the removal of the child, the court shall inquire as to whether housing assistance was provided to the family to prevent or eliminate the need for the removal of the child or children; and

 

(7) determine whether it is in the best interests of the child to remain enrolled in the school, developmental program, or child care program where the child was enrolled prior to the removal and evaluate the efforts that have been made to maintain the child in the school or program if it is in the child's best interests.

 

Subd. 2.  Active efforts.  (a) At each hearing regarding an African American or a disproportionately represented child who is alleged or adjudicated to be in need of protection or services, the court shall review whether the responsible social services agency has provided active efforts to the child and the child's family and shall require the responsible social services agency to provide evidence and documentation that demonstrates that the agency is providing culturally informed, strength-based, community-involved, and community-based services to the child and the child's family.

 

(b) When determining whether the responsible social services agency has made active efforts to preserve the child's family, the court shall make findings regarding whether the responsible social services agency made appropriate and meaningful services available to the child's family based upon the family's specific needs.  If a court determines that the responsible social services agency did not make active efforts to preserve the family as required by this section, the court shall order the responsible social services agency to immediately provide active efforts to the child and child's family to preserve the family.

 

Sec. 9.  [260.69] TRANSFER OF PERMANENT LEGAL AND PHYSICAL CUSTODY; TERMINATION OF PARENTAL RIGHTS; CHILD PLACEMENT PROCEEDINGS.

 

Subdivision 1.  Preference for transfer of permanent legal and physical custody.  If an African American or a disproportionately represented child cannot be returned to the child's parent, the court shall, if possible, transfer permanent legal and physical custody of the child to:

 

(1) a noncustodial parent under section 260C.515, subdivision 4, if the child cannot return to the care of the parent or custodian from whom the child was removed or who had legal custody at the time that the child was placed in foster care; or

 

(2) a willing and able relative, according to the requirements of section 260C.515, subdivision 4, if the court determines that reunification with the child's family is not an appropriate permanency option for the child.  Prior to the court ordering a transfer of permanent legal and physical custody to a relative who is not a parent, the responsible social services agency must inform the relative of Northstar kinship assistance benefits and eligibility requirements, and of the relative's ability to apply for benefits on behalf of the child under chapter 256N.


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Subd. 2.  Termination of parental rights restrictions.  (a) A court shall not terminate the parental rights of a parent of an African American or a disproportionately represented child based solely on the parent's failure to complete case plan requirements.

 

(b) Except as provided in paragraph (c), a court shall not terminate the parental rights of a parent of an African American or a disproportionately represented child in a child placement proceeding unless the allegations against the parent involve sexual abuse; egregious harm as defined in section 260C.007, subdivision 14; murder in the first, second, or third degree under section 609.185, 609.19, or 609.195; murder of an unborn child in the first, second, or third degree under section 609.2661, 609.2662, or 609.2663; manslaughter of an unborn child in the first or second degree under section 609.2664 or 609.2665; domestic assault by strangulation under section 609.2247; felony domestic assault under section 609.2242 or 609.2243; kidnapping under section 609.25; solicitation, inducement, and promotion of prostitution under section 609.322, subdivision 1, and subdivision 1a if one or more aggravating factors are present; criminal sexual conduct under sections 609.342 to 609.3451; engaging in, hiring, or agreeing to hire a minor to engage in prostitution under section 609.324, subdivision 1; solicitation of children to engage in sexual conduct under section 609.352; possession of pornographic work involving minors under section 617.247; malicious punishment or neglect or endangerment of a child under section 609.377 or 609.378; use of a minor in sexual performance under section 617.246; or failing to protect a child from an overt act or condition that constitutes egregious harm.

 

(c) The court may terminate the parental rights of a parent of an African American or a disproportionately represented child under section 260C.301, subdivision 1, paragraph (b), clause (4) or (6), if a transfer of permanent legal and physical custody under subdivision 1 is not possible because the child has no willing or able noncustodial parent or relative to whom custody can be transferred.

 

(d) Nothing in this subdivision precludes the court from terminating the parental rights of a parent of an African American or a disproportionately represented child if the parent desires to voluntarily terminate the parent's own parental rights for good cause under section 260C.301, subdivision 1, paragraph (a).

 

Subd. 3.  Appeals.  Notwithstanding the Minnesota Rules of Juvenile Protection Procedure, rule 47.02, subdivision 2, a parent of an African American or a disproportionately represented child whose parental rights have been terminated may appeal the decision within 90 days of the service of notice by the court administrator of the filing of the court's order.

 

Sec. 10.  [260.694] RESPONSIBLE SOCIAL SERVICES AGENCY CONDUCT AND CASE REVIEW.

 

Subdivision 1.  Responsible social services agency conduct.  (a) A responsible social services agency employee who has duties related to child protection shall not knowingly:

 

(1) make untrue statements about any case involving a child alleged to be in need of protection or services;

 

(2) intentionally withhold any information that may be material to a case involving a child alleged to be in need of protection or services; or

 

(3) fabricate or falsify any documentation or evidence relating to a case involving a child alleged to be in need of protection or services.

 

(b) Any of the actions listed in paragraph (a) shall constitute grounds for adverse employment action.

 

Subd. 2.  Commissioner notification.  (a) When a responsible social services agency makes a maltreatment determination involving an African American or a disproportionately represented child or places an African American or a disproportionately represented child in a foster care placement, the agency shall, within seven days of making a maltreatment determination or initiating the child's foster care placement, notify the commissioner of the maltreatment determination or foster care placement and of the steps that the agency has taken to investigate and


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remedy the conditions that led to the maltreatment determination or foster care placement.  Upon receiving this notice, the commissioner shall review the responsible social services agency's handling of the child's case to ensure that the case plan and services address the unique needs of the child and the child's family and that the agency is making active efforts to reunify and preserve the child's family.  At all stages of a case involving an African American or a disproportionately represented child, the responsible social services agency shall, upon request, fully cooperate with the commissioner and, as appropriate and as permitted under statute, provide access to all relevant case files.

 

(b) In any adoptive or preadoptive placement proceeding involving an African American or a disproportionately represented child under the guardianship of the commissioner, the responsible social services agency shall notify the commissioner of the pending proceeding and of the right of intervention.  The notice must include the identity of the child and the child's parents whose parental rights were terminated or who consented to the child's adoption.  Upon receipt of the notice, the commissioner shall review the case to ensure that the requirements of this act have been met.  When the responsible social services agency has identified a nonrelative as an African American or a disproportionately represented child's adoptive placement, no preadoptive or adoptive placement proceeding may be held until at least 30 days after the commissioner receives the required notice or until an adoption home study can be completed for a relative adoption, whichever occurs first.  If the commissioner requests additional time to prepare for the proceeding, the district court must grant the commissioner up to 30 additional days to prepare for the proceeding.  In cases in which a responsible social services agency or party to a preadoptive or adoptive placement knows or has reason to believe that a child is or may be African American or a disproportionately represented child, proof of service upon the commissioner must be filed with the adoption petition.

 

Subd. 3.  Case review.  (a) Each responsible social services agency shall conduct a review of all child protection cases handled by the agency every 24 months, after establishing a 2024 baseline.  The responsible social services agency shall report the agency's findings to the county board, related child welfare committees, the Children's Justice Initiative team, the commissioner, and community stakeholders within six months of gathering the relevant case data.  The case review must include:

 

(1) the number of African American and disproportionately represented children represented in the county child welfare system;

 

(2) the number and sources of maltreatment reports received and reports screened in for investigation or referred for family assessment and the race of the children and parents or custodians involved in each report;

 

(3) the number and race of children and parents or custodians who receive in-home preventive case management services;

 

(4) the number and race of children whose parents or custodians are referred to community-based, culturally appropriate, strength-based, or trauma-informed services;

 

(5) the number and race of children removed from their homes;

 

(6) the number and race of children reunified with their parents or custodians;

 

(7) the number and race of children whose parents or custodians are offered family group decision-making services;

 

(8) the number and race of children whose parents or custodians are offered the parent support outreach program;

 

(9) the number and race of children in foster care or out-of-home placement at the time that the data is gathered;


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(10) the number and race of children who achieve permanency through a transfer of permanent legal and physical custody to a relative, a legal guardianship, or an adoption; and

 

(11) the number and race of children who are under the guardianship of the commissioner or awaiting a permanency disposition.

 

(b) The required case review must also:

 

(1) identify barriers to reunifying children with their families;

 

(2) identify the family conditions that led to the out-of-home placement;

 

(3) identify any barriers to accessing culturally informed mental health or substance use disorder treatment services for the parents or children;

 

(4) document efforts to identify fathers and maternal and paternal relatives and to provide services to custodial and noncustodial fathers, if appropriate; and

 

(5) document and summarize court reviews of active efforts.

 

(c) Any responsible social services agency that has a case review showing disproportionality and disparities in child welfare outcomes for African American and other disproportionately represented children and families, compared to the agency's overall outcomes, must develop a remediation plan to be approved by the commissioner.  The responsible social services agency must develop the plan within 30 days of finding the disproportionality or disparities and must make measurable improvements within 12 months of the date that the commissioner approves the remediation plan.  A responsible social services agency may request assistance from the commissioner to develop a remediation plan.  The remediation plan must include measurable outcomes to identify, address, and reduce the factors that led to the disproportionality and disparities in the agency's child welfare outcomes and include information about how the responsible social services agency will achieve and document trauma-informed, positive child well-being outcomes through remediation efforts.

 

Subd. 4.  Noncompliance.  Any responsible social services agency that fails to comply with this section is subject to corrective action and a fine determined by the commissioner.  The commissioner shall use fines received under this subdivision to support compliance with this act but shall not use amounts received to supplant funding for existing services.

 

Sec. 11.  [260.697] AFRICAN AMERICAN AND DISPROPORTIONATELY REPRESENTED FAMILY PRESERVATION GRANTS.

 

Subdivision 1.  Primary support grants.  The commissioner shall establish direct grants to organizations, service providers, and programs owned and led by African Americans and other individuals from communities disproportionately represented in the child welfare system to provide services and support for African American and disproportionately represented children and families involved in Minnesota's child welfare system, including supporting existing eligible services and facilitating the development of new services and providers, to create a more expansive network of service providers available for African American and disproportionately represented children and families.

 

Subd. 2.  Eligible services.  (a) Services eligible for grants under this section include but are not limited to:

 

(1) child out-of-home placement prevention and reunification services;

 

(2) family-based services and reunification therapy;

 

(3) culturally specific individual and family counseling;


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(4) court advocacy;

 

(5) training of and consultation with responsible social services agencies and private social services agencies regarding this act;

 

(6) services to support informal kinship care arrangements; and

 

(7) other activities and services approved by the commissioner that further the goals of the Minnesota African American Family Preservation and Child Welfare Disproportionality Act, including but not limited to the recruitment of African American staff and staff from other communities disproportionately represented in the child welfare system to work for responsible social services agencies and licensed child-placing agencies.

 

(b) The commissioner may specify the priority of an activity and service based on its success in furthering these goals.  The commissioner shall give preference to programs and service providers that are located in or serve counties with the highest rates of child welfare disproportionality for African American and other disproportionately represented children and families, and employ staff who represent the population primarily served.

 

Subd. 3.  Ineligible services.  Grant money may not be used to supplant funding for existing services or for the following purposes:

 

(1) child day care that is necessary solely because of the employment or training for employment of a parent or another relative with whom the child is living;

 

(2) foster care maintenance or difficulty of care payments;

 

(3) residential treatment facility payments;

 

(4) adoption assistance or Northstar kinship assistance payments under chapter 259A or 256N;

 

(5) public assistance payments for Minnesota family investment program assistance, supplemental aid, medical assistance, general assistance, general assistance medical care, or community health services; or

 

(6) administrative costs for income maintenance staff.

 

Subd. 4.  Requests for proposals.  The commissioner shall request proposals for grants under subdivisions 1, 2, and 3, and specify the information and criteria required.

 

Sec. 12.  Minnesota Statutes 2022, section 260C.329, subdivision 3, is amended to read:

 

Subd. 3.  Petition.  The county attorney or, a parent whose parental rights were terminated under a previous order of the court, an African American or a disproportionately represented child who is ten years of age or older, the responsible social services agency, or a guardian ad litem may file a petition for the reestablishment of the legal parent and child relationship.  A parent filing a petition under this section shall pay a filing fee in the amount required under section 357.021, subdivision 2, clause (1).  The filing fee may be waived pursuant to chapter 563 in cases of indigency.  A petition for the reestablishment of the legal parent and child relationship may be filed when:

 

(1) in cases where the county attorney is the petitioning party, both the responsible social services agency and the county attorney agree that reestablishment of the legal parent and child relationship is in the child's best interests;

 

(2) (1) the parent has corrected the conditions that led to an order terminating parental rights;

 

(3) (2) the parent is willing and has the capability to provide day-to-day care and maintain the health, safety, and welfare of the child;


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(4) the child has been in foster care for at least 48 months after the court issued the order terminating parental rights;

 

(5) (3) the child has not been adopted; and

 

(6) (4) the child is not the subject of a written adoption placement agreement between the responsible social services agency and the prospective adoptive parent, as required under Minnesota Rules, part 9560.0060, subpart 2.

 

Sec. 13.  Minnesota Statutes 2022, section 260C.329, subdivision 8, is amended to read:

 

Subd. 8.  Hearing.  The court may grant the petition ordering the reestablishment of the legal parent and child relationship only if it finds by clear and convincing evidence that:

 

(1) reestablishment of the legal parent and child relationship is in the child's best interests;

 

(2) the child has not been adopted;

 

(3) the child is not the subject of a written adoption placement agreement between the responsible social services agency and the prospective adoptive parent, as required under Minnesota Rules, part 9560.0060, subpart 2;

 

(4) at least 48 months have elapsed following a final order terminating parental rights and the child remains in foster care;

 

(5) (4) the child desires to reside with the parent;

 

(6) (5) the parent has corrected the conditions that led to an order terminating parental rights; and

 

(7) (6) the parent is willing and has the capability to provide day-to-day care and maintain the health, safety, and welfare of the child.

 

Sec. 14.  CULTURAL COMPETENCY TRAINING FOR INDIVIDUALS WORKING WITH AFRICAN AMERICAN AND DISPROPORTIONATELY REPRESENTED FAMILIES AND CHILDREN IN THE CHILD WELFARE SYSTEM.

 

Subdivision 1.  Applicability.  The commissioner of human services shall collaborate with the Children's Justice Initiative to ensure that cultural competency training is given to individuals working in the child welfare system, including child welfare workers, supervisors, attorneys, juvenile court judges, and family law judges.

 

Subd. 2.  Training.  (a) The commissioner shall develop training content and establish the frequency of trainings.

 

(b) The cultural competency training under this section is required prior to or within six months of beginning work with any African American or disproportionately represented child and family.  A responsible social services agency staff person who is unable to complete the cultural competency training prior to working with African American or disproportionately represented children and families must work with a qualified staff person within the agency who has completed cultural competency training until the person is able to complete the required training.  The training must be available by January 1, 2025, and must:

 

(1) be provided by an African American individual or individual from a community that is disproportionately represented in the child welfare system who is knowledgeable about African American and other disproportionately represented social and cultural norms and historical trauma;

 

(2) raise awareness and increase a person's competency to value diversity, conduct a self-assessment, manage the dynamics of difference, acquire cultural knowledge, and adapt to diversity and the cultural contexts of communities served;


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(3) include instruction on effectively developing a safety plan and instruction on engaging a safety network; and

 

(4) be accessible and comprehensive and include the ability to ask questions.

 

(c) The training may be provided in a series of segments, either in person or online.

 

Subd. 3.  Update.  The commissioner shall provide an update to the legislative committees with jurisdiction over child protection issues by January 1, 2025, on the rollout of the training under subdivision 1 and the content and accessibility of the training under subdivision 2.

 

Sec. 15.  DISAGGREGATE DATA.

 

The commissioner of human services shall establish a method to disaggregate data related to African American and other child welfare disproportionality and begin disaggregating data by January 1, 2025.

 

Sec. 16.  ENSURING FREQUENT VISITATION FOR AFRICAN AMERICAN AND DISPROPORTIONATELY REPRESENTED CHILDREN IN OUT-OF-HOME PLACEMENT.

 

A responsible social services agency must engage in best practices related to visitation when an African American or a disproportionately represented child is in out-of-home placement.  When the child is in out-of-home placement, the responsible social services agency shall make active efforts to facilitate regular and frequent visitation between the child and the child's parents or custodians, the child's siblings, and the child's relatives.  If visitation is infrequent between the child and the child's parents, custodians, siblings, or relatives, the responsible social services agency shall make active efforts to increase the frequency of visitation and address any barriers to visitation.

 

Sec. 17.  CHILD WELFARE COMPLIANCE AND FEEDBACK PORTAL.

 

The commissioner of human services shall develop, maintain, and administer a publicly accessible online compliance and feedback portal to receive reports of noncompliance with the Layla Jackson Law under Minnesota Statutes, sections 260.61 to 260.697, and other statutes related to child maltreatment, safety, and placement.  Reports received through the portal must be transferred for review and further action to the appropriate unit or department within the Department of Human Services.

 

Sec. 18.  DIRECTION TO COMMISSIONER; MAINTAINING CONNECTIONS IN FOSTER CARE BEST PRACTICES.

 

The commissioner of human services shall develop and publish guidance on best practices for ensuring that African American and disproportionately represented children in foster care maintain connections and relationships with their parents, custodians, and extended relative and kin network.  The commissioner shall also develop and publish best practice guidance on engaging and assessing noncustodial and nonadjudicated parents to care for their African American or disproportionately represented children who cannot remain with the children's custodial parents.

 

Sec. 19.  APPROPRIATIONS.

 

(a) $....... in fiscal year 2025 is appropriated from the general fund to the commissioner of human services for the administration of the Layla Jackson Law under Minnesota Statutes, sections 260.61 to 260.697.  This is an ongoing appropriation.


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(b) $....... in fiscal year 2025 is appropriated from the general fund to the commissioner of human services for the development, maintenance, and administration of the child welfare compliance and feedback portal.  This is an ongoing appropriation."

 

Delete the title and insert:

 

"A bill for an act relating to human services; establishing the Layla Jackson Law; modifying child welfare provisions; requiring reports; appropriating money; amending Minnesota Statutes 2022, section 260C.329, subdivisions 3, 8; proposing coding for new law in Minnesota Statutes, chapter 260."

 

 

With the recommendation that when so amended the bill be re-referred to the Committee on Judiciary Finance and Civil Law.

 

      The report was adopted.

 

 

Becker-Finn from the Committee on Judiciary Finance and Civil Law to which was referred:

 

H. F. No. 1718, A bill for an act relating to public safety; providing for appointment, licensing, and compensation of railroad peace officers; addressing civil liability issues; requiring rulemaking; amending Minnesota Statutes 2022, sections 626.05, subdivision 2; 626.84, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 219.

 

Reported the same back with the following amendments:

 

Page 2, line 17, delete the comma and insert "and" and delete ", and immunities"

 

Page 3, line 28, delete "Subject to the privileges and immunities afforded a peace"

 

Page 3, line 29, delete everything before "a"

 

 

With the recommendation that when so amended the bill be placed on the General Register.

 

      The report was adopted.

 

 

Klevorn from the Committee on State and Local Government Finance and Policy to which was referred:

 

H. F. No. 2000, A bill for an act relating to gambling; authorizing and providing for sports betting; establishing licenses; prohibiting local restrictions; providing for taxation of sports betting; providing civil and criminal penalties; providing for amateur sports grants; requiring reports; appropriating money; amending Minnesota Statutes 2022, sections 245.98, subdivision 2; 260B.007, subdivision 16; 609.75, subdivisions 3, 4, 7, by adding a subdivision; 609.755; 609.76, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 240A; 299L; 609; proposing coding for new law as Minnesota Statutes, chapter 297J.

 

Reported the same back with the following amendments:

 

Page 5, after line 8, insert:

 

"Subd. 21.  Sports governing body.  "Sports governing body" means an organization headquartered in the United States that prescribes and enforces final rules and codes of conduct for a sporting event and participants engaged in the sport.  Notwithstanding the foregoing, the commissioner shall adopt rules to determine the governing body for electronic sports for the purposes of this chapter."


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Renumber the subdivisions in sequence

 

Page 7, line 31, delete "2024" and insert "2025"

 

Page 15, line 7, delete "$6,000" and insert "$50,000"

 

Page 15, line 8, delete "$38,250" and insert "$250,000"

 

Page 15, line 9, delete "$25,500" and insert "$250,000"

 

Page 15, line 23, delete "$6,000" and insert "$50,000"

 

Page 15, line 24, delete "$38,250" and insert "$100,000"

 

Page 15, line 25, delete "$25,500" and insert "$100,000"

 

Page 16, line 20, delete "AND APPROPRIATION"

 

Page 16, line 21, delete everything after "the" and insert "general fund."

 

Page 16, delete line 22

 

Page 20, line 30, delete "commission" and insert "commissioner"

 

Page 27, line 25, delete "2024" and insert "2025"

 

Page 28, line 28, delete "2023" and insert "2024"

 

Page 28, after line 28, insert:

 

"Sec. 26.  EFFECTIVE DATE.

 

Except as otherwise provided, this article is effective July 1, 2024."

 

Page 29, line 16, delete the period and insert "; and"

 

Page 29, delete lines 17 to 19

 

Page 29, line 20, delete "21" and insert "22"

 

Page 29, line 25, delete "ten" and insert "20"

 

Page 30, delete subdivision 7 and insert:

 

"Subd. 7.  Distribution of revenues; account established.  (a) The commissioner must deposit the revenues, including penalties and interest, derived from the tax imposed by this section as follows:

 

(1) 80 percent to the general fund; and

 

(2) 20 percent to the sports betting revenue account in the special revenue fund.

 

(b) The sports betting revenue account is established in the special revenue fund.


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Subd. 8.  Distribution of money.  (a) All amounts collected in the previous fiscal year by the commissioner in the sports betting revenue account must be distributed annually by October 1 as provided in this subdivision.  Any money remaining in the account at the end of each fiscal year does not cancel.  Interest and income earned on money in the account, after deducting any applicable charges, shall be credited to the account.  After deducting any amounts necessary to pay the refunds under subdivision 5, the money shall be distributed as provided in paragraphs (b) and (d).

 

(b) 50 percent is appropriated to the commissioner of human services, of which:

 

(1) one-third is for the compulsive gambling treatment program established under section 245.98 which must also be available for up to 60 hours of intervention services for a family member or concerned significant other who is a Minnesota resident and is negatively impacted by problem or compulsive gambling;

 

(2) one-third is for emergency services grants under section 256E.36; and

 

(3) one-third is for a grant to the state affiliate recognized by the National Council on Problem Gambling to increase public awareness of problem gambling, provide education and training for individuals and organizations providing effective treatment services to problem gamblers and their families, and conduct research relating to problem gambling.

 

(c) Money appropriated by this subdivision must supplement and must not replace existing state funding for these programs.  Money appropriated from the sports betting revenue account under this subdivision is available until expended.

 

(d) 50 percent shall be transferred to the amateur sports integrity and participation account established pursuant to section 240A.15, subdivision 1.

 

EFFECTIVE DATE.  This section is effective for sports betting net revenue received after June 30, 2024."

 

Page 31, delete lines 16 to 19

 

Page 32, after line 7, insert:

 

"ARTICLE 3

FANTASY CONTESTS

 

Section 1.  [349C.01] DEFINITIONS.

 

Subdivision 1.  Terms.  For the purposes of this chapter, the following terms have the meanings given.

 

Subd. 2.  Adjusted gross fantasy contest receipts.  "Adjusted gross fantasy contest receipts" means the amount equal to the total of all entry fees that a fantasy contest operator collects from all participants minus the total of all prizes paid out to all participants multiplied by the location percentage for this state.

 

Subd. 3.  Athletic event.  "Athletic event" means a sports game, match, or activity, or series of games, matches, activities, or tournaments involving the athletic skill of one or more players or participants.

 

Subd. 4.  Authorized participant.  "Authorized participant" means an individual who has a valid fantasy contest account with a fantasy contest operator and is at least 21 years of age.

 

Subd. 5.  College sports.  "College sports" means a sporting event in which at least one participant is a team or individual from a public or private institution of higher education.

 

Subd. 6.  Commissioner.  "Commissioner" means the commissioner of public safety.


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Subd. 7.  Entry fee.  "Entry fee" means cash or cash equivalent that is required to be paid by an authorized participant and set in advance by a fantasy contest operator to participate in a fantasy contest.

 

Subd. 8.  Esports event.  "Esports event" means a competition between individuals or teams using video games in a game, match, or contest, or series of games, matches, or contests, or a tournament, or by a person or team against a specified measure of performance which is hosted at a physical location or online that is approved by the commissioner to be an event eligible for fantasy contests under this chapter.

 

Subd. 9.  Fantasy contest.  "Fantasy contest" means any simulated game or contest, with an entry fee, in which:

 

(1) the value of all prizes offered to a winning authorized participant are established and made known to the authorized participant in advance of the contest;

 

(2) all winning outcomes reflect the relative knowledge and skill of the authorized participant; and

 

(3) the authorized participant assembles, owns, or manages a fictional entry or roster of actual professional or amateur athletes, who participate in real-world sports events, or esports events that are regulated by a governing body and that are held between professional players who play individually or as teams.

 

Subd. 10.  Fantasy contest account.  "Fantasy contest account" means an electronic ledger in which the following types of transactions relative to an authorized participant are recorded:

 

(1) deposits and credits;

 

(2) withdrawals;

 

(3) fantasy contest wagers;

 

(4) monetary value of winnings;

 

(5) service or other transaction related charges authorized by the authorized participant, if any;

 

(6) adjustments to the account;

 

(7) promotional activity; and

 

(8) responsible gaming parameters.

 

Subd. 11.  Fantasy contest operator.  "Fantasy contest operator" means an entity that is licensed by the commissioner to operate, conduct, or offer for play fantasy contests under this chapter.  A fantasy contest operator shall not be an authorized participant in a fantasy contest.

 

Subd. 12.  Governing body.  "Governing body" means an organization headquartered in the United States that prescribes and enforces final rules and codes of conduct for a sporting event and participants engaged in the sport.  Notwithstanding the foregoing, the commissioner shall adopt rules to determine the governing body for electronic sports for the purposes of this chapter.

 

Subd. 13.  Location percentage.  "Location percentage" means the percentage rounded to the nearest tenth of one percent of the total entry fees collected from authorized participants located in this state divided by the total entry fees collected from all players in the fantasy contest activity.

 

Subd. 14.  Sports event.  "Sports event" means an athletic event, esports event, college sports event, or other event approved by the commissioner to be an event eligible for participation in a fantasy contest under this chapter.  Sports event does not include:

 

(1) horse racing as defined in section 240.01, subdivision 8; or


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(2) an esports or athletic event, demonstration, activity, or tournament organized by an elementary, middle, or high school, or by any youth activity sports program, league, or clinic.

 

Subd. 15.  Wager.  "Wager" means a transaction between an authorized participant and a licensed fantasy contest operator in which an authorized participant pays, deposits, or risks cash or a cash equivalent as an entry fee into a fantasy contest.

 

Sec. 2.  [349C.02] POWERS AND DUTIES OF THE COMMISSIONER.

 

Subdivision 1.  Regulate fantasy contests.  The commissioner has the power and duty to regulate fantasy contests authorized under this chapter.  In making rules, establishing policy, and regulating fantasy contests, the commissioner shall:

 

(1) ensure that fantasy contests are conducted in a fair and lawful manner;

 

(2) promote public safety and welfare; and

 

(3) ensure that fantasy contests are conducted in a manner that is transparent to authorized participants.

 

Subd. 2.  Rulemaking.  (a) The commissioner must adopt and enforce rules consistent with this chapter that address:

 

(1) the manner in which wagers are accepted and payouts are remitted;

 

(2) the types of records that shall be kept by fantasy contest operators;

 

(3) the testing and auditing requirements for licensees, including requirements related to fantasy contest accounts;

 

(4) the method of accounting used by fantasy contest operators;

 

(5) the creation, funding, and use of fantasy contest accounts, debit cards, and checks by authorized participants, provided that the rules permit an authorized participant to fund a fantasy contest account through a bonus or promotion, electronic bank transfer, an online or mobile payment system that supports online money transfers, a reloadable or prepaid card, and any other appropriate means approved by the commissioner, not including the use of credit cards;

 

(6) the appropriate standards and practices to prevent and address compulsive and problem gambling;

 

(7) the appropriate standards and practices to prevent and address fantasy contest entry by individuals who are not authorized participants or who are otherwise disqualified, prohibited, or excluded from contest entry;

 

(8) the sporting events eligible for fantasy contests;

 

(9) the requirements for obtaining and retaining fantasy contest operator licenses, including requirements for criminal and financial background checks, financial disclosure and auditing requirements, data practices and security requirements, bonding or other surety requirements, and the conduct of inspections;

 

(10) investigation into any licensed or unlicensed person or entity when a person or entity is engaged in conducting a fantasy contest or engaged in conduct advertised as a fantasy contest that does meet the requirements of this chapter;


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(11) the requirements for monitoring patterns of participation to identify behaviors consistent with problem gambling and the appropriate actions to take when problem gambling is suspected, including pausing or suspending activities from an identified fantasy contest account; and

 

(12) the appropriate limits, standards, and requirements necessary to prevent excessive wagering by an individual whose ability to control impulsive wagering is impaired in any way.

 

Subd. 3.  Licensing; fee collection.  (a) The commissioner shall issue all fantasy contest operator licenses.  Licenses issued under this chapter may not be transferred.

 

(b) The commissioner shall collect all license fees, including renewals, surcharges, and civil penalties imposed by this chapter.

 

Subd. 4.  Delegation.  The commissioner may delegate any of its authority under this chapter to the director of alcohol and gambling enforcement if, in the judgment of the commissioner, doing so would promote the efficient administration of this chapter.

 

Subd. 5.  Additional powers.  The commissioner may exercise any other powers necessary to enforce the provisions of this chapter.

 

Sec. 3.  [349C.03] LICENSING; APPLICATION REQUIREMENTS.

 

Subdivision 1.  General requirements.  (a) A licensee or applicant must meet each of the following requirements, if applicable, to hold or receive a license issued under this chapter:

 

(1) complete an application for licensure or application for renewal;

 

(2) pay the applicable application and licensing fees;

 

(3) not owe $500 or more in delinquent taxes, as defined in section 270C.72;

 

(4) not have, after demand, failed to file tax returns required by the commissioner of revenue; and

 

(5) no officer, director, or other person with a present direct or indirect financial or management interest in the applicant:

 

(i) is in default in the payment of an obligation or debt to the state;

 

(ii) has been convicted of a crime listed in section 299L.25, subdivision 2, paragraph (a), or has a state or federal charge for one of those crimes pending;

 

(iii) is or has been convicted of engaging in an illegal business;

 

(iv) has ever been found guilty of fraud or misrepresentation in connection with wagering;

 

(v) has ever knowingly violated a rule or order of the commissioner or a law of Minnesota relating to wagering; or

 

(vi) may be employed by any state agency with regulatory authority over fantasy contests.

 

(b) Any fantasy contest operator applying for licensure or renewal of a license may operate during the application period unless the commissioner has reasonable cause to believe that such operator is or may be in violation of the provisions of this chapter.


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(c) A fantasy contest operator applying for licensure or renewal of a license must pay an application fee of $10,000.

 

Subd. 2.  Application; contents.  (a) An application for a license under this chapter must be submitted on a form prescribed by the commissioner.  At a minimum, the application must include:

 

(1) the business name, address, and contact information of the applicant;

 

(2) the applicant's website address;

 

(3) the applicant's tax identification number;

 

(4) proof of the applicant's financial security in an amount sufficient to comply with the provisions of section 349C.08;

 

(5) the name and address of all officers, directors, and shareholders with more than ten percent interest in the corporation and any of its holding companies;

 

(6) an affidavit executed by the applicant setting forth that, to the best of the applicant's knowledge, the applicant meets the requirements of subdivision 1, paragraph (a), clauses (3) to (5);

 

(7) an irrevocable consent statement, signed by the applicant, which states that suits and actions limited to the enforcement of this chapter may be commenced against the applicant by the commissioner in any court of competent jurisdiction in this state by the service on the secretary of state of any summons, process, or pleadings authorized by the laws of this state.  If any summons, process, or pleadings is served upon the secretary of state, it must be by duplicate copies.  One copy must be retained in the Office of the Secretary of State and the other copy must be forwarded immediately by certified mail to the address of the applicant, as shown by the records of the commissioner;

 

(8) a declaration that the laws of the state of Minnesota will be followed, including any applicable provisions of the Minnesota Human Rights Act, chapter 363A; and

 

(9) any additional information required by the commissioner.

 

(b) If the commissioner receives an application that fails to provide the required information, the commissioner shall issue a deficiency notice to the applicant.  The applicant shall have ten business days from the date of the deficiency notice to submit the required information.

 

(c) Failure by an applicant to submit all required information will result in the application being rejected.

 

(d) Within 90 days of receiving a completed application, the commissioner shall issue the appropriate license or send the applicant a notice of rejection setting forth specific reasons why the commissioner did not approve the application.

 

(e) An applicant whose application is not approved may reapply at any time, but must submit a new application and pay an additional application fee.

 

Subd. 3.  Duty to update.  (a) During the pendency of an application and at any time after a license has been issued, an applicant or licensee shall notify the commissioner of any changes to the information provided under this section.


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(b) If a change in the officers, directors, shareholders, or other persons with a present or future direct or indirect financial or management interest in a licensee, or a change of ownership of more than ten percent of the shares of the licensee is made after the application for a license is filed or a license is issued, the applicant or licensee must notify the commissioner of the changes within ten days of their occurrence and submit a new affidavit as required by this section.

 

Subd. 4.  Deposit of fees.  Application, registration, license, and renewal fees shall be deposited in the general fund.

 

Sec. 4.  [349C.04] FANTASY CONTEST OPERATOR LICENSE.

 

Subdivision 1.  Issuance; renewal.  The commissioner may issue an unlimited number of licenses.  Each license is valid for three years and may be renewed under conditions required by rule adopted pursuant to section 349C.02.

 

Subd. 2.  Licensing requirements.  A fantasy contest operator must:

 

(1) submit a completed application and all required documents or other materials pursuant to this chapter and any relevant rules;

 

(2) submit a detailed plan and specifications for the implementation of fantasy contests;

 

(3) include mechanisms on its platform that are designed to detect and prevent the unauthorized use of fantasy contest accounts and to detect and prevent fraud, money laundering, and collusion;

 

(4) include identity and geolocation verification procedures, which may require the use of a reputable independent third party that is in the business of verifying an individual's personally identifiable information and can detect potential prohibited participants;

 

(5) submit a statement of the assets and liabilities of the license holder to the commissioner;

 

(6) pay a licensing fee pursuant to subdivision 3 upon initial application and at each subsequent license renewal; and

 

(7) meet any other conditions required by rule adopted pursuant to section 349C.02.

 

Subd. 3.  Fees.  (a) The initial license fee for a fantasy contest operator that operated in Minnesota in the preceding 12 months shall be the greater of ten percent of its adjusted gross fantasy contest receipts from the preceding 12 months or $5,000.  The initial license fee for a fantasy contest operator that did not operate in the state for at least the preceding 12 months shall be $5,000.

 

(b) The license renewal fee shall be one percent of adjusted gross fantasy contest receipts for the preceding three years.

 

Subd. 4.  Continued operation; registration.  (a) Any fantasy operator already offering fantasy contests to persons located in Minnesota before July 1, 2024, may continue to offer contests to persons located in Minnesota until the fantasy operator's application for licensure has been approved or denied so long as the fantasy operator files an application for licensure with the commissioner within 90 days of the commissioner making applications available for submission.

 

(b) A fantasy contest operator must register with the commissioner in a form and manner prescribed by the commissioner to continue operations under paragraph (a).  The fantasy contest operator must submit its registration with a $10,000 registration fee.

 

Subd. 5.  Reporting.  A fantasy contest operator must report to the commissioner monthly on wagers placed and redeemed during the reporting month and outstanding at the time of the report.


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Sec. 5.  [349C.05] FANTASY CONTESTS AUTHORIZED.

 

Subdivision 1.  Authorization.  A person 21 years of age or older may participate in a fantasy contest within the state provided the person places all wagers with an entity licensed under this chapter and is not disqualified, prohibited, or excluded from participation in a fantasy contest.

 

Subd. 2.  Fantasy contest.  (a) Entry into a fantasy contest by an authorized participant is lawful provided that:

 

(1) winning outcomes are determined solely by clearly established scoring criteria based on one or more statistical results of the performance of individual athletes, including but not limited to a fantasy score or a statistical measure of performance; and

 

(2) no winning outcome is entirely based on the score, point spread, or any performance of any single actual team or combination of teams or solely on any single performance of an individual athlete or player in any single actual event;

 

(b) Fantasy contests may include both contests wherein authorized participants compete against each other and contests wherein only a single authorized participant competes against a target score set by the fantasy contest operator.

 

(c) Any fantasy contest conducted under this chapter does not constitute sports betting for any purpose, as set forth in sections 299L.10 to 299L.80.

 

(d) A fantasy contest subject to the requirements of this chapter does not include:

 

(1) any fantasy contest in which the authorized participant is not required to pay an entry fee to a fantasy contest operator; or

 

(2) contests:

 

(i) with rosters whose membership is limited to athletes of a single sport;

 

(ii) that encompass at least one-half of a sport's regular season of the athletic activity in which the underlying competition is being conducted;

 

(iii) in which participants compete against each other; and

 

(iv) in which the fantasy contest operator, if it so chooses, retains an administrative fee not to exceed 50 percent of all entry fees paid to enter the single season-long contest.

 

Subd. 3.  Fantasy contest operator.  A fantasy contest operator must:

 

(1) make available on its website means to allow individuals to self-report to the exclusion list provided under section 349C.07;

 

(2) provide authorized participants with access to their play history and account details, including all deposit amounts, withdrawal amounts, a summary of entry fees expended, and bonus or promotion information, including how much is left on any pending bonus or promotion and how much has been released to the authorized participant;

 

(3) segregate authorized participant funds, including amounts in live fantasy contests that have not been paid out yet, from operational funds;

 

(4) prominently publish the rules governing each fantasy contest with an entry fee;


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(5) develop and prominently publish procedures by which any person may file a complaint with the operator and the commissioner; and

 

(6) disclose the terms of all promotional offers at the time the offers are advertised, and provide full disclosures of limitations on the offer before an authorized participant provides financial consideration in exchange for the offer.

 

Sec. 6.  [349C.06] WAGERING.

 

Subdivision 1.  Placing wagers; entry fees.  An individual who is 21 years of age or older may place wagers pursuant to this chapter by submitting an entry fee to a fantasy contest operator to participate in a fantasy contest provided the individual is not otherwise disqualified, prohibited, or excluded from doing so.  A fantasy contest operator may only accept wagers in a form and manner prescribed and approved by the commissioner.

 

Subd. 2.  Fantasy contest account.  (a) An individual may establish a fantasy contest account by electronic means from any location, and may fund an account by any means approved by the commissioner.

 

(b) A fantasy contest operator must not accept a wager unless the authorized participant provides consideration in the form of money or other thing of value such as use of promotional credits from the authorized participant's fantasy contest account at the time of making the wager.

 

(c) Consideration must be in the form of withdrawal from a fantasy contest account maintained by the fantasy contest operator for the benefit of and in the name of the wagerer.

 

(d) A fantasy contest operator shall verify an individual's age and identity before allowing that individual to place a wager and may utilize an approved identity verification service provider to confirm an individual's age and identity.

 

(e) A fantasy contest operator must deposit any prize won by an authorized participant into the authorized participant's account within 72 hours of winning the prize.

 

(f) An authorized participant shall have the right to withdraw the balance of funds in the fantasy contest account in the authorized participant's name at any time with proof of identity, as determined by rules adopted pursuant to section 349C.02, within ten business days of the request being made.  This period shall be extended if the fantasy contest operator believes in good faith that the authorized participant engaged in either fraudulent conduct or other conduct that would put the operator in violation of this chapter, in which case the fantasy contest operator may decline to honor the request for withdrawal for a reasonable investigatory period until the investigation is resolved if the fantasy contest operator provides notice of the nature of the investigation to the authorized participant.  If the investigation exceeds 60 days, the fantasy contest operator shall notify the commissioner.  For the purposes of this provision, a request for withdrawal will be considered honored if it is processed by the fantasy contest operator but delayed by a payment processor, credit card issuer, or by the custodian of a financial account.

 

Subd. 3.  Wager location.  Fantasy contest wagers may only be accepted from an authorized participant placing a wager online, through a website or mobile application, while the authorized participant is physically within the state.  The incidental routing of a fantasy contest wager shall not determine the location or locations in which the wager is initiated, received, or otherwise made.

 

Subd. 4.  Wagers prohibited.  A fantasy contest operator must not accept a wager on the outcome of an event or proposition that has already been determined.

 

Subd. 5.  Receipt.  A fantasy contest operator must provide a person who places a wager with an electronic receipt at the time of sale that contains the following information:

 

(1) the proposition that is the subject of the wager;

 

(2) the outcome that will constitute a win on the wager;


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(3) the amount wagered; and

 

(4) the payout in the event of a winning wager.

 

Subd. 6.  Wager data; safeguards necessary.  (a) Information regarding wagers made by an authorized participant who engages in fantasy contests, including but not limited to wager type and consideration paid, may be accessed, stored, or used for ordinary business purposes by the fantasy contest operator.

 

(b) Fantasy contest operators must use commercially reasonable methods to maintain the security of wager data, authorized participant data, and other confidential information from unauthorized access and dissemination, however, that nothing in this chapter shall preclude the use of Internet or cloud-based hosting of such data and information or disclosure as required by court order, other law, or this chapter.

 

Sec. 7.  [349C.07] EXCLUSION LIST AND PROHIBITION ON PARTICIPATION.

 

Subdivision 1.  Exclusion list.  (a) The commissioner shall maintain a list of persons who are not eligible to wager on fantasy contests through a fantasy contest operator.  The list shall include the names of:

 

(1) persons who have themselves requested to be on the exclusion list;

 

(2) persons whose names have been submitted, for their protection, by their legal guardians;

 

(3) persons whose names have been submitted by fantasy contest operators for good cause; and

 

(4) persons whose names have been submitted by sports governing bodies.

 

(b) A person who has requested to be on the exclusion list may specify a time limit of one, three, or five years for the person's name to be on the list.  The commissioner will remove the person's name from the list at the conclusion of the specified time.  A person may be removed from the list before the specified time by providing proof of completion of a class approved by the commissioner to address compulsive gambling.

 

(c) The information contained on the list is private data on individuals, as defined in section 13.02, subdivision 12, except the commissioner is permitted to share the list with fantasy contest operators as needed to prevent persons on the exclusion list from participating in fantasy contests.

 

Subd. 2.  Prohibited wagers by certain persons.  The following persons who are otherwise authorized to participate in fantasy contests are prohibited from placing the wagers described:

 

(1) a person who is prohibited from placing wagers by a fantasy contest operator for good cause, including but not limited to any person placing a wager as an agent or proxy on behalf of another, may not place a wager of any kind;

 

(2) a person who is an athlete, coach, referee, player, trainer, or team employee is prohibited from wagering in a fantasy contest overseen by that person's sports governing body;

 

(3) a person who holds a position of authority sufficient to exert influence over the participants in a sporting event, including but not limited to a coach, manager, or owner is prohibited from wagering in a fantasy contest overseen by that person's sports governing body; and

 

(4) a person who has access to certain types of exclusive or nonpublic information regarding a sporting event is prohibited from wagering in a fantasy contest overseen by the sports governing body of that sporting event.


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Subd. 3.  Prohibition on accepting wagers.  (a) A fantasy contest operator shall not knowingly accept a wager from a person on the exclusion list or allow a person on the exclusion list to establish a fantasy contest account.

 

(b) A fantasy contest operator shall not knowingly accept a wager prohibited under subdivision 2 from any person who can reasonably be identified by publicly available information or by any lists provided to the commissioner.

 

(c) Knowingly accepting a wager from a person on the exclusion list is a license violation, subject to a penalty established by the commissioner.

 

Sec. 8.  [349C.08] FINANCIAL RESPONSIBILITY.

 

Subdivision 1.  Responsibility for satisfying winning wagers.  A wager in a fantasy contest placed with a fantasy contest operator is an enforceable contract.  A fantasy contest operator who accepts a wager bears all risk of loss to satisfy winnings on the wager.  A wager that is not redeemed within one year of the outcome that is the subject of the wager may be canceled by the fantasy contest operator.

 

Subd. 2.  Cash reserves.  (a) A fantasy contest operator shall maintain cash reserves in an amount that is not less than the greater of $25,000 or the sum of the:

 

(1) amounts held by the fantasy contest operator for the fantasy contest accounts of authorized participants;

 

(2) amounts accepted by the fantasy contest operator as wagers on contingencies whose outcome have not been determined; and

 

(3) amounts owed but unpaid by the fantasy contest operator on winning wagers through the period established by the operator, subject to time limits set by the commissioner, for honoring winning wagers.

 

(b) Such reserves shall be held in the form of cash or cash equivalents segregated from operational funds, payment processor reserves and receivables, any bond, an irrevocable letter of credit, or any combination thereof.

 

Subd. 3.  Bond.  A fantasy contest operator shall be required to post a bond, securities, or an irrevocable letter of credit in an amount the commissioner deems necessary after taking into consideration the amount of the fantasy contest operator's cash reserves, to protect the financial interests of authorized participants participating in fantasy contests.  If securities are deposited or an irrevocable letter of credit filed, the securities or letter of credit must be of a type or in the form provided under section 349A.07, subdivision 5, paragraphs (b) and (c).

 

Sec. 9.  [349C.09] RECORD RETENTION; INFORMATION SHARING.

 

Subdivision 1.  Record retention.  Fantasy contest operators shall maintain records of all wagers placed, including personally identifiable information of an authorized participant, amount and type of wager, time the wager was placed, location of the wager, including IP address if applicable, the outcome of the wager, and records of abnormal betting activity for three years after the fantasy contest occurs.  Fantasy contest operators shall make the data described in this subdivision available for inspection upon request of the commissioner or as required by court order.

 

Subd. 2.  Anonymization required.  Fantasy contest operators shall use commercially reasonable efforts to maintain in real time and at the account level anonymized information regarding an authorized participant, amount and type of wager, the time the wager was placed, the location of the wager, including the IP address if applicable, the outcome of the wager, and records of abnormal betting activity.  Nothing in this section shall require a fantasy contest operator to provide any information that is prohibited by federal, state, or local laws or regulations, including laws and regulations relating to privacy and personally identifiable information.


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Subd. 3.  Information sharing.  (a) If a sports governing body has notified the commissioner that access to the information described in subdivision 2 for wagers placed on fantasy contests of the sports governing body is necessary to monitor the integrity of such body's sporting events, then fantasy contest operators shall share, in a commercially reasonable frequency, form, and manner, with the sports governing body or its designees the information under subdivision 2 with respect to wagers on fantasy contests of the sports governing body.

 

(b) Sports governing bodies and their designees may only use information received under this subdivision for integrity-monitoring purposes and may not use information received under this subdivision for any commercial or other purpose.

 

Sec. 10.  [349C.10] LICENSE VIOLATIONS; ENFORCEMENT.

 

Subdivision 1.  Schedule of penalties.  The commissioner must adopt rules that provide a graduated schedule of penalties for violations of license requirements under statute or rule.  The schedule must specify penalties that may range from warnings and probation periods to civil fines, temporary suspension of licenses, or revocation of licenses.

 

Subd. 2.  Authority to act.  The commissioner may issue administrative orders, impose civil penalties, and suspend, revoke, or not renew a license issued pursuant to this chapter if the commissioner determines that a licensee has committed or is about to commit a violation of this chapter or rules adopted pursuant to this chapter, or if the commissioner determines that the licensee is disqualified or ineligible to hold a license pursuant to sections 349C.04 and 349C.05.

 

Subd. 3.  Temporary suspension.  (a) The commissioner may temporarily, without a hearing, suspend the license and operating privilege of any licensee for a period of up to 90 days if there is clear and convincing evidence that:

 

(1) conduct of a licensee, or anticipated failure of a licensee to fulfill an obligation, requires immediate action to protect the public from harm;

 

(2) the licensee has not timely filed a tax return or paid the tax required under chapter 297K; or

 

(3) the licensee has not timely paid all fees due under this chapter.

 

(b) The commissioner shall notify the licensee of the violation that caused the temporary suspension and may lift the temporary suspension if the licensee corrects the violation.

 

(c) The commissioner may extend the period of suspension if the violation is not corrected, the commissioner notifies the licensee that the commissioner intends to revoke or not renew a license, and a contested case hearing has not taken place.

 

Subd. 4.  Notice of violation; administrative orders; request for reconsideration; demand for hearing.  (a) The commissioner may issue an administrative order to any licensee who has committed a violation.  The order may require the licensee to correct the violation or to cease and desist from committing the violation and may impose civil penalties.  The order must state the deficiencies that constitute a violation, the time by which the violation must be corrected, and the amount of any civil penalty.

 

(b) If the licensee believes the information in the administrative order is in error, the licensee may ask the commissioner to reconsider any parts of the order that are alleged to be in error.  The request must be in writing, be delivered to the commissioner by certified mail within seven days after receipt of the order, and provide documentation to support the allegation of error.  The commissioner must respond to a request for reconsideration within 15 days after receiving the request.  A request for reconsideration does not stay the order unless the commissioner issues a supplemental order granting additional time.  The commissioner's disposition of a request for reconsideration is final.


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(c) An administrative order that imposes a civil penalty of more than $2,000 shall be treated as a contested case under chapter 14.

 

(d) A licensee may request a hearing on the administrative order within 30 days of service of the order.  The request must be in writing and delivered to the commissioner by certified mail.  If the licensee does not request a hearing within 30 days, the order becomes final.

 

(e) If a licensee requests a hearing, the hearing must be held not later than 30 days after the commissioner receives the request unless the licensee and the commissioner agree on a later date.  After the hearing, the commissioner may enter an order making such disposition as the facts require.  If the licensee fails to appear at the hearing after having been notified of it, the licensee is considered in default and the proceeding may be determined against the licensee on consideration of the administrative order, the allegations of which may be considered to be true.  An action of the commissioner under this paragraph is subject to judicial review pursuant to chapter 14.

 

(f) Civil penalties collected by the commissioner shall be deposited in the general fund.  Civil penalties may be recovered in a civil action in the name of the state brought in the district court.

 

Subd. 5.  Revocation, nonrenewal, civil penalties; contested case.  If the commissioner intends to revoke or not renew a license, or impose a civil penalty in excess of $2,000, the commissioner shall provide the licensee with a statement of the complaints made against the licensee and shall initiate a contested case proceeding.  The contested case shall be held pursuant to chapter 14.

 

Sec. 11.  [349C.11] DATA PROTECTIONS.

 

Data in which an individual who has wagered on a fantasy contest is identified by name, account number, Social Security number, or any other uniquely identifying indicia, are private data on individuals, as defined in section 13.02, subdivision 12.  Data on individual earnings of fantasy contest operator application and licensing information are nonpublic data, as defined in section 13.02, subdivision 9.

 

Sec. 12.  EFFECTIVE DATE.

 

Except as otherwise provided, this article is effective July 1, 2024.

 

ARTICLE 4

TAXATION OF FANTASY CONTESTS

 

Section 1.  [297K.01] DEFINITIONS.

 

Subdivision 1.  Terms.  For the purposes of this chapter, the following terms have the meanings given.

 

Subd. 2.  Adjusted gross fantasy contest receipts.  "Adjusted gross fantasy contest receipts" means the amount equal to the total of all entry fees that a fantasy contest operator collects from all authorized participants minus the total of all prizes paid out to all participants multiplied by the location percentage for this state.

 

Subd. 3.  Commissioner.  "Commissioner" means the commissioner of revenue.

 

Subd. 4.  Fantasy contest.  "Fantasy contest" has the meaning given in section 349C.01, subdivision 9.

 

Subd. 5.  Fantasy contest operator.  "Fantasy contest operator" has the meaning given in section 349C.01, subdivision 11.

 

Subd. 6.  Location percentage.  "Location percentage" means the percentage rounded to the nearest tenth of one percent of the total entry fees collected from authorized participants located in this state divided by the total entry fees collected from all players in the fantasy contest activity.


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Subd. 7.  Wager.  "Wager" has the meaning given in section 349C.01, subdivision 15.

 

EFFECTIVE DATE.  This section is effective for adjusted gross fantasy receipts received after June 30, 2024.

 

Sec. 2.  [297K.02] TAX ON FANTASY CONTEST NET REVENUE.

 

Subdivision 1.  Tax imposed.  A tax is imposed on fantasy contest operators equal to ten percent of adjusted gross fantasy receipts.

 

Subd. 2.  Fantasy contest net revenue tax in lieu of other taxes.  Income derived by a fantasy contest operator from the conduct of wagering on a fantasy contest is not subject to the tax imposed under chapter 290.  Wagers accepted by a fantasy contest operator are not subject to the tax imposed in section 297A.62 or 297E.03.

 

Subd. 3.  Returns; due dates.  A fantasy contest operator must file a return by the 20th day of each month reporting the tax due under this section for the preceding month.  The return must include the amount of all wagers received, payouts made, all fantasy contest taxes owed, and other information required by the commissioner.  The tax under this chapter is due to be paid to the commissioner on the day the return is due.

 

Subd. 4.  Public information.  All records concerning the administration of taxes under this chapter are classified as public information.

 

Subd. 5.  Refunds.  A person who has, under this chapter, paid to the commissioner an amount of tax for a period in excess of the amount legally due for that period may file with the commissioner a claim for a refund of the excess.  The amount necessary to pay the refunds under this subdivision is appropriated from the general fund to the commissioner.

 

Subd. 6.  Extensions.  If in the commissioner's judgment good cause exists, the commissioner may extend the time for filing tax returns or paying taxes, or both, under this section for not more than six months.

 

Subd. 7.  Deposit of revenue.  The commissioner must deposit the revenues, including penalties and interest, derived from the tax imposed by this section into the general fund.

 

EFFECTIVE DATE.  This section is effective for adjusted gross fantasy receipts received after June 30, 2024.

 

Sec. 3.  [297K.03] FANTASY CONTEST OPERATOR REPORTS AND RECORDS.

 

Subdivision 1.  Business records.  A fantasy contest operator must maintain records supporting the fantasy contest activity and taxes owed.  Records required to be kept in this section must be preserved by the fantasy contest operator for at least 3-1/2 years after the return is due or filed, whichever is later, and may be inspected by the commissioner at any reasonable time without notice or a search warrant.

 

Subd. 2.  Audits.  The commissioner may require a financial audit of a fantasy contest operator's fantasy contest activities if the operator has failed to comply with the financial reporting requirements under this chapter.  Audits must be performed by an independent accountant licensed according to chapter 326A.  The commissioner must prescribe standards for an audit required under this subdivision.  A complete, true, and correct copy of an audit must be filed as prescribed by the commissioner.  Nothing in this subdivision limits the commissioner's ability to conduct its own audit pursuant to its authority under chapter 270C.

 

EFFECTIVE DATE.  This section is effective for adjusted gross fantasy receipts received after June 30, 2024."

 

Page 33, delete lines 20 to 23 and insert:

 

"(b) Paragraph (a) does not apply to transfers of data between a person licensed under sections 299L.10 to 299L.80 or an employee of a licensee and the following entities when that transfer is necessary to perform duties prescribed by law relating to wagering on sporting events:


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(1) the transfer of data to the commissioner, the director, or the commissioner of revenue;

 

(2) the transfer of data to a sports governing body pursuant to section 299L.53, subdivision 3, paragraph (a); and

 

(3) the transfer of data to the University of Minnesota pursuant to section 299L.53, subdivision 3, paragraph (c)."

 

Page 37, line 9, delete "and"

 

Page 37, after line 9, insert:

 

"(9) fantasy contests when the betting is conducted pursuant to chapter 349C; and"

 

Page 37, line 10, delete "(9)" and insert "(10)"

 

Page 37, line 19, before the period, insert "or fantasy contests pursuant to chapter 349C"

 

Page 37, line 25, before the period, insert "or fantasy contests when betting is conducted pursuant to chapter 349C"

 

Page 38, after line 2, insert:

 

"Sec. 7.  Minnesota Statutes 2022, section 609.75, is amended by adding a subdivision to read:

 

Subd. 7b.  Fantasy contest.  "Fantasy contest" has the meaning given in section 349C.01, subdivision 9."

 

Page 38, line 23, delete "609.76" and insert "299L.80"

 

Page 39, delete section 10 and insert:

 

"Sec. 11.  EFFECTIVE DATE.

 

Sections 1 to 10 are effective the day that sports betting and fantasy contests become lawful under articles 1 and 3 and applies to crimes committed on or after that date."

 

Page 40, delete article 4 and insert:

 

"ARTICLE 6

AMATEUR SPORTS AND ACTIVITIES GRANTS

 

Section 1.  [240A.15] GRANTS FOR PROMOTING INTEGRITY AND PARTICIPATION.

 

Subdivision 1.  Account established; appropriation.  (a) The amateur sports integrity and participation account is established in the special revenue fund.  The account shall consist of the amount deposited pursuant to section 297J.02, subdivision 8, paragraph (d).

 

(b) The amount necessary to make grants under subdivisions 2 and 3 is appropriated to the Minnesota Amateur Sports Commission.  The Minnesota Amateur Sports Commission may retain four percent of the total appropriation to administer the grants.

 

(c) The amount necessary to make grants under subdivision 4 is appropriated to the Minnesota State High School League.  The Minnesota State High School League may retain four percent of the total appropriation to administer the grants.


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Subd. 2.  Grants to promote the integrity of amateur sports.  (a) The Minnesota Amateur Sports Commission shall use 20 percent of the amount deposited in the amateur sports integrity and participation account in the previous fiscal year to award grants to collegiate and amateur sports associations to promote the integrity of amateur sports.  Of this amount, 80 percent of money must be distributed to grant recipients at institutions whose undergraduate enrollment total is fewer than 25,000 students.

 

(b) Grant recipients may use money to:

 

(1) provide comprehensive gambling and athlete protection education and programming related to disordered gambling to athletes and others directly involved with amateur athletic organizations;

 

(2) promote the independence, safety, and training of amateur sports leagues and officials;

 

(3) provide educational substance abuse prevention and intervention programs related to the use of performance‑enhancing drugs;

 

(4) provide problem gambling prevention education;

 

(5) provide training to coaches and athletes on safe relationships and how to establish and maintain an environment free from bullying, harassment, and discrimination based on race or sex; or

 

(6) provide training or resources to address the mental health needs of amateur athletes, including programs to address depression, anxiety, and disordered eating.

 

(c) By September 1 of each year, individuals or organizations that received a grant in the previous fiscal year shall provide a report in a form and manner established by the Minnesota Amateur Sports Commission describing how grant money was used and providing any additional information required by the Minnesota Amateur Sports Commission.

 

Subd. 3.  Grants to promote and facilitate participation in youth sports.  (a) The Minnesota Amateur Sports Commission shall use 40 percent of the amount deposited in the amateur sports integrity and participation account in the previous fiscal year to award grants to organizations to promote and facilitate participation in youth sports in areas that have experienced a disproportionately high rate of juvenile crime.

 

(b) Applicants may demonstrate that an area has experienced a disproportionately high rate of juvenile crime through the use of public data or reports, a submission from the local law enforcement agency, or any other reliable information showing that the area to be served by the applicant has experienced more incidents of juvenile crime than the state average or than surrounding communities.

 

(c) Grant recipients may use money to:

 

(1) establish, maintain, or expand youth sports;

 

(2) improve facilities for youth sports;

 

(3) reduce or eliminate participation costs for youth through the use of scholarships, assistance with the purchase of equipment, reductions or elimination of program fees, and accounting for other reasonable costs that serve as a barrier to participation;

 

(4) recruit and train adults to serve as coaches, officials, or in other supportive roles; or

 

(5) coordinate additional services for youth, including tutoring, mental health services, substance abuse treatment, and family counseling.


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(d) By September 1 of each year, individuals or organizations that received a grant in the previous fiscal year shall provide a report in a form and manner established by the Minnesota Amateur Sports Commission describing how grant money was used and providing any additional information required by the Minnesota Amateur Sports Commission.

 

Subd. 4.  Grants to promote and facilitate participation in youth activities.  (a) The Minnesota State High School League shall use 40 percent of the amount deposited in the amateur sports integrity and participation account in the previous fiscal year to award grants to schools or organizations to promote and facilitate participation in competitive, nonathletic youth activities in areas that have experienced a disproportionately high rate of juvenile crime.

 

(b) Applicants may demonstrate that an area has experienced a disproportionately high rate of juvenile crime through the use of public data or reports, a submission from the local law enforcement agency, or any other reliable information showing that the area to be served by the applicant has experienced more incidents of juvenile crime than the state average or than surrounding communities.

 

(c) Grant recipients may use money to:

 

(1) establish, maintain, or expand competitive, nonathletic youth activities;

 

(2) reduce or eliminate participation costs for youth through the use of scholarships, assistance with the purchase of equipment, reductions or elimination of program fees, and accounting for other reasonable costs that serve as a barrier to participation;

 

(3) recruit and train adults to serve as coaches, officials, or in other supportive roles; or

 

(4) coordinate additional services for youth, including tutoring, mental health services, substance abuse treatment, and family counseling.

 

(d) By September 1 of each year, schools or organizations that received a grant in the previous fiscal year shall provide a report in a form and manner established by the Minnesota State High School League describing how grant money was used and providing any additional information required by the Minnesota State High School League.

 

Subd. 5.  Annual report.  By January 15 of each year, the Minnesota Amateur Sports Commission and Minnesota State High School League must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over public safety, the legislative committees with jurisdiction over taxes, the committee in the house of representatives with jurisdiction over commerce, the committee in the senate with jurisdiction over state government finance and policy, the committee in the house of representatives with jurisdiction over ways and means, and the committee in the senate with jurisdiction over finance.  The report must identify the grants issued under this section since the previous report, including the individual or organization that received the grant, the amount awarded, and the purpose of the grant.  The report must also compile and provide the annual reports received from grantees.

 

Sec. 2.  Minnesota Statutes 2022, section 245.98, subdivision 2, is amended to read:

 

Subd. 2.  Program.  The commissioner of human services shall establish a program for the treatment of compulsive gamblers and their families.  The commissioner may contract with an entity with expertise regarding the treatment of compulsive gambling to operate the program.  The program may include the establishment of a statewide toll-free number, resource library, public education programs; regional in-service training programs and conferences for health care professionals, educators, treatment providers, employee assistance programs, and criminal justice representatives; and the establishment of certification standards for programs and service providers.  The commissioner may enter into agreements with other entities and may employ or contract with consultants to facilitate the provision of these services or the training of individuals to qualify them to provide these services.  The


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program must include up to 60 hours of intervention services for a family member or concerned significant other who is a Minnesota resident and is negatively impacted by problem or compulsive gambling.  The program may also include inpatient and outpatient treatment and rehabilitation services for residents in different settings, including a temporary or permanent residential setting for mental health or substance use disorder, and individuals in jails or correctional facilities.  The program may also include research studies.  The research studies must include baseline and prevalence studies for adolescents and adults to identify those at the highest risk.  The program must be approved by the commissioner before it is established.

 

ARTICLE 7

CHARITABLE GAMBLING

 

Section 1.  Minnesota Statutes 2023 Supplement, section 297E.02, subdivision 6, is amended to read:

 

Subd. 6.  Combined net receipts tax.  (a) In addition to the taxes imposed under subdivision 1, a tax is imposed on the combined net receipts of the organization.  As used in this section, "combined net receipts" is the sum of the organization's gross receipts from lawful gambling less gross receipts directly derived from the conduct of paper bingo, raffles, and paddlewheels, as defined in section 297E.01, subdivision 8, and less the net prizes actually paid, other than prizes actually paid for paper bingo, raffles, and paddlewheels, for the fiscal year.  The For combined net receipts of an organization collected on or before June 30, 2025, the combined net receipts are subject to a tax computed according to the following schedule:

 

 

If the combined net receipts for the fiscal year are: 

 

 

 

The tax is: 

 

 

Not over $87,500

 

eight percent

 

 

Over $87,500, but not over $122,500

 

$7,000 plus 17 percent of the amount over $87,500, but not over $122,500

 

 

Over $122,500, but not over $157,500

 

$12,950 plus 25 percent of the amount over $122,500, but not over $157,500

 

 

Over $157,500

 

$21,700 plus 33.5 percent of the amount over $157,500

 

 

(b) For combined net receipts of an organization collected between July 1, 2025, and June 30, 2026, the combined net receipts are subject to a tax computed according to the following schedule:

 

 

If the combined net receipts for the fiscal year are: 

 

 

 

 

The tax is: 

 

 

Not over $87,500

 

5.5 percent

 

 

Over $87,500, but not over $122,500

 

$7,000 plus 15 percent of the amount over $87,500, but not over $122,500

 

 

Over $122,500, but not over $157,500

 

$12,950 plus 23 percent of the amount over $122,500, but not over $157,500

 

 

Over $157,500

 

$21,700 plus 32.5 percent of the amount over $157,500

 

 

(c) For combined net receipts of an organization collected between July 1, 2026, and June 30, 2027, the combined net receipts are subject to a tax computed according to the following schedule:

 

 

If the combined net receipts for

the fiscal year are: 

 

 

 

The tax is: 

 

 

Not over $87,500

 

four percent

 

 

Over $87,500, but not over $122,500

 

$7,000 plus 13 percent of the amount over $87,500, but not over $122,500

 


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Over $122,500, but not over $157,500

 

$12,950 plus 20 percent of the amount over $122,500, but not over $157,500

 

 

Over $157,500

 

$21,700 plus 28.5 percent of the amount over $157,500

 

 

(d) For combined net receipts of an organization collected on July 1, 2027, and thereafter, the combined net receipts are subject to a tax computed according to the following schedule:

 

 

If the combined net receipts for the fiscal year are: 

 

 

 

The tax is: 

 

 

Not over $87,500

 

three percent

 

 

Over $87,500, but not over $122,500

 

$7,000 plus ten percent of the amount over $87,500, but not over $122,500

 

 

Over $122,500, but not over $157,500

 

$12,950 plus 18 percent of the amount over $122,500, but not over $157,500

 

 

Over $157,500

 

$21,700 plus 26 percent of the amount over $157,500

 

 

(b) (e) Gross receipts derived from sports-themed tipboards are exempt from taxation under this section.  For purposes of this paragraph, a sports-themed tipboard means a sports-themed tipboard as defined in section 349.12, subdivision 34, under which the winning numbers are determined by the numerical outcome of a professional sporting event.

 

EFFECTIVE DATE.  This section is effective for receipts collected the day following final enactment.

 

Sec. 2.  Minnesota Statutes 2022, section 349.12, is amended by adding a subdivision to read:

 

Subd. 12f.  Electronic pull-tab device dispenser.  (a) "Electronic pull-tab device dispenser" means a device that:

 

(1) accepts cash inserted into the electronic pull-tab device dispenser;

 

(2) loads funds onto an electronic pull-tab device that corresponds to the funds inserted into the electronic pull‑tab device dispenser;

 

(3) dispenses an electronic pull-tab device for use;

 

(4) is kept in a physical location within an establishment where the dispenser can be seen by a bartender or booth operator at all times;

 

(5) does not have the ability to redeem or dispense prizes, break bills, or return change, tickets, tokens, or winnings to a player;

 

(6) does not have the ability to track, monitor, or compile data related to individual players or distribute play‑based incentives;

 

(7) does not include player stations, individual seats, or seating areas at or near the device;

 

(8) does not include interactive features, elements, or functions other than those required to accomplish the tasks identified in clauses (1) to (3);

 

(9) requires the electronic pull-tab device to be disconnected, unattached, unplugged, or otherwise unaffixed from the electronic pull-tab device dispenser for the electronic pull-tab device to operate or for game play to occur;


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(10) has no promotional material, signs, or advertisements attached to the physical device or displayed on any screen located on the electronic pull-tab device dispenser;

 

(11) has no spinning reels or other representations that mimic a video slot machine, including but not limited to free plays, bonus games, screens, or game features that are triggered after the initial symbols are revealed that display the results of the game;

 

(12) has no additional function as an amusement or gambling device;

 

(13) has no audio or visual components other than those necessary to allow use of the electronic pull-tab device dispenser by a player who is visually impaired; and

 

(14) satisfies any applicable federal requirements placed on such devices or specific financial transactions.

 

(b) The number of electronic pull-tab device dispensers located at any permitted premises is limited to one.

 

(c) Each electronic pull-tab device dispenser shall include a certification from a board-approved testing laboratory that the device meets the standards and requirements established in Minnesota Statutes and Minnesota Rules.

 

Sec. 3.  Minnesota Statutes 2023 Supplement, section 349.12, subdivision 25, is amended to read:

 

Subd. 25.  Lawful purpose.  (a) "Lawful purpose" means one or more of the following:

 

(1) any expenditure by or contribution to a 501(c)(3) or festival organization, as defined in subdivision 15c, provided that the organization and expenditure or contribution are in conformity with standards prescribed by the board under section 349.154, which standards must apply to both types of organizations in the same manner and to the same extent;

 

(2) a contribution to or expenditure for goods and services for an individual or family suffering from poverty, homelessness, or disability, which is used to relieve the effects of that suffering;

 

(3) a contribution to a program recognized by the Minnesota Department of Human Services for the education, prevention, or treatment of problem gambling;

 

(4) a contribution to or expenditure on a public or private nonprofit educational institution registered with or accredited by this state or any other state;

 

(5) a contribution to an individual, public or private nonprofit educational institution registered with or accredited by this state or any other state, or to a scholarship fund of a nonprofit organization whose primary mission is to award scholarships, for defraying the cost of education to individuals where the funds are awarded through an open and fair selection process;

 

(6) activities by an organization or a government entity which recognize military service to the United States, the state of Minnesota, or a community, subject to rules of the board, provided that the rules must not include mileage reimbursements in the computation of the per diem reimbursement limit and must impose no aggregate annual limit on the amount of reasonable and necessary expenditures made to support:

 

(i) members of a military marching or color guard unit for activities conducted within the state;

 

(ii) members of an organization solely for services performed by the members at funeral services;

 

(iii) members of military marching, color guard, or honor guard units may be reimbursed for participating in color guard, honor guard, or marching unit events within the state or states contiguous to Minnesota at a per participant rate of up to $50 per diem; or


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(iv) active military personnel and their immediate family members in need of support services;

 

(7) recreational, community, and athletic facilities and activities, intended primarily for persons under age 21, provided that such facilities and activities do not discriminate on the basis of gender and the organization complies with section 349.154, subdivision 3a;

 

(8) payment of local taxes authorized under this chapter, including local gambling taxes authorized under section 349.213, subdivision 3, taxes imposed by the United States on receipts from lawful gambling, the taxes imposed by section 297E.02, subdivisions 1 and 6, and the tax imposed on unrelated business income by section 290.05, subdivision 3;

 

(9) payment of real estate taxes and assessments on permitted gambling premises owned by the licensed organization paying the taxes, or wholly leased by a licensed veterans organization under a national charter recognized under section 501(c)(19) of the Internal Revenue Code;

 

(10) a contribution to the United States, this state or any of its political subdivisions, or any agency or instrumentality thereof other than a direct contribution to a law enforcement or prosecutorial agency;

 

(11) a contribution to or expenditure by a nonprofit organization which is a church or body of communicants gathered in common membership for mutual support and edification in piety, worship, or religious observances;

 

(12) an expenditure for citizen monitoring of surface water quality by individuals or nongovernmental organizations that is consistent with section 115.06, subdivision 4, and Minnesota Pollution Control Agency guidance on monitoring procedures, quality assurance protocols, and data management, provided that the resulting data is submitted to the Minnesota Pollution Control Agency for review and inclusion in the state water quality database;

 

(13) a contribution to or expenditure on projects or activities approved by the commissioner of natural resources for:

 

(i) wildlife management projects that benefit the public at large;

 

(ii) grant-in-aid trail maintenance and grooming established under sections 84.83 and 84.927, and other trails open to public use, including purchase or lease of equipment for this purpose; and

 

(iii) supplies and materials for safety training and educational programs coordinated by the Department of Natural Resources, including the Enforcement Division;

 

(14) conducting nutritional programs, food shelves, and congregate dining programs primarily for persons who are age 62 or older or disabled;

 

(15) a contribution to a community arts organization, or an expenditure to sponsor arts programs in the community, including but not limited to visual, literary, performing, or musical arts;

 

(16) an expenditure by a licensed fraternal organization or a licensed veterans organization for payment of water, fuel for heating, electricity, and sewer costs for:

 

(i) up to 100 percent for a building wholly owned or wholly leased by and used as the primary headquarters of the licensed veteran or fraternal organization; or

 

(ii) a proportional amount subject to approval by the director and based on the portion of a building used as the primary headquarters of the licensed veteran or fraternal organization;

 

(17) expenditure by a licensed veterans organization of up to $5,000 in a calendar year in net costs to the organization for meals and other membership events, limited to members and spouses, held in recognition of military service.  No more than $5,000 can be expended in total per calendar year under this clause by all licensed veterans organizations sharing the same veterans post home;


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(18) payment of fees authorized under this chapter imposed by the state of Minnesota to conduct lawful gambling in Minnesota;

 

(19) a contribution or expenditure to honor an individual's humanitarian service as demonstrated through philanthropy or volunteerism to the United States, this state, or local community;

 

(20) a contribution by a licensed organization to another licensed organization with prior board approval, with the contribution designated to be used for one or more of the following lawful purposes under this section:  clauses (1) to (7), (11) to (15), (19), and (25);

 

(21) an expenditure that is a contribution to a parent organization, if the parent organization:  (i) has not provided to the contributing organization within one year of the contribution any money, grants, property, or other thing of value, and (ii) has received prior board approval for the contribution that will be used for a program that meets one or more of the lawful purposes under subdivision 7a;

 

(22) an expenditure for the repair, maintenance, or improvement of real property and capital assets owned by an organization, or for the replacement of a capital asset that can no longer be repaired, with a fiscal year limit of five percent of gross profits from the previous fiscal year, with no carryforward of unused allowances.  The fiscal year is July 1 through June 30.  Total expenditures for the fiscal year may not exceed the limit unless the board has specifically approved the expenditures that exceed the limit due to extenuating circumstances beyond the organization's control.  An expansion of a building or bar-related expenditures are not allowed under this provision.

 

(i) The expenditure must be related to the portion of the real property or capital asset that must be made available for use free of any charge to other nonprofit organizations, community groups, or service groups, and is used for the organization's primary mission or headquarters.

 

(ii) An expenditure may be made to bring an existing building that the organization owns into compliance with the Americans with Disabilities Act.

 

(iii) An organization may apply the amount that is allowed under item (ii) to the erection or acquisition of a replacement building that is in compliance with the Americans with Disabilities Act if the board has specifically approved the amount.  The cost of the erection or acquisition of a replacement building may not be made from gambling proceeds, except for the portion allowed under this item;

 

(23) an expenditure for the acquisition or improvement of a capital asset with a cost greater than $2,000, excluding real property, that will be used exclusively for lawful purposes under this section if the board has specifically approved the amount;

 

(24) an expenditure for the acquisition, erection, improvement, or expansion of real property, if the board has first specifically authorized the expenditure after finding that the real property will be used exclusively for lawful purpose under this section;

 

(25) an expenditure, including a mortgage payment or other debt service payment, for the erection or acquisition of a comparable building to replace an organization-owned building that was destroyed or made uninhabitable by fire or catastrophe or to replace an organization-owned building that was taken or sold under an eminent domain proceeding.  The expenditure may be only for that part of the replacement cost not reimbursed by insurance for the fire or catastrophe or compensation not received from a governmental unit under the eminent domain proceeding, if the board has first specifically authorized the expenditure; or

 

(26) a contribution to a 501(c)(19) organization that does not have an organization license under section 349.16 and is not affiliated with the contributing organization, and whose owned or leased property is not a permitted premises under section 349.165.  The 501(c)(19) organization may only use the contribution for lawful purposes under this subdivision or for the organization's primary mission.  The 501(c)(19) organization may not use the contribution for expansion of a building or for bar-related expenditures.  A contribution may not be made to a statewide organization representing a consortia of 501(c)(19) organizations.; or


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(27)(i) an expenditure made after June 30, 2024, and before August 1, 2029, for the repair, maintenance, or improvement of real property and capital assets owned by the following organizations, or for the replacement of a capital asset that can no longer be repaired:

 

(A) American Legion;

 

(B) Veterans of Foreign Wars of the United States (VFW);

 

(C) Jewish War Veterans of the United States of America;

 

(D) Military Order of the Purple Heart;

 

(E) AMVETS;

 

(F) Marine Corps League;

 

(G) Paralyzed Veterans of America; or

 

(H) Disabled American Veterans.

 

(ii) The expenditure is limited to 50 percent of gross profits from the previous fiscal year.  The fiscal year is July 1 through June 30.  Any unused allowances may carry forward pursuant to the requirements in item (iii).

 

(iii) For qualifying organizations whose gross receipts exceed $400,000 per year, the organization may carry forward unused allowances for up to two years.  For qualifying organizations whose gross receipts do not exceed $400,000 per year, the organization may carry forward unused allowances for up to three years.  Any organization carrying forward funds must identify the planned project for which the funds will be used prior to carrying forward the unused allowances.

 

(iv) Total expenditures for the fiscal year may not exceed the limit imposed under item (ii) unless the board has specifically approved the expenditures that exceed the limit due to extenuating circumstances beyond the organization's control.  An expansion of a building or any capital improvements within the building regardless of use of the improvement are allowed under this provision.  This provision applies only to capital improvements to the existing building square footage and does not apply to the new construction of a new or replacement building.

 

(b) Expenditures authorized by the board under paragraph (a), clauses (24) and (25), must be 51 percent completed within two years of the date of board approval; otherwise the organization must reapply to the board for approval of the project.  "Fifty-one percent completed" means that the work completed must represent at least 51 percent of the value of the project as documented by the contractor or vendor.

 

(c) Notwithstanding paragraph (a), "lawful purpose" does not include:

 

(1) any expenditure made or incurred for the purpose of influencing the nomination or election of a candidate for public office or for the purpose of promoting or defeating a ballot question;

 

(2) any activity intended to influence an election or a governmental decision-making process;

 

(3) a contribution to a statutory or home rule charter city, county, or town by a licensed organization with the knowledge that the governmental unit intends to use the contribution for a pension or retirement fund; or

 

(4) a contribution to a 501(c)(3) organization or other entity with the intent or effect of not complying with lawful purpose restrictions or requirements.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.


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ARTICLE 8

PARI-MUTUEL HORSE RACING

 

Section 1.  Minnesota Statutes 2022, section 240.01, subdivision 1c, is amended to read:

 

Subd. 1c.  Advance deposit wagering; ADW.  "Advance deposit wagering" or "ADW" means a system of pari‑mutuel wagering betting in which wagers and withdrawals are debited and winning payoffs and deposits are credited to an account held by an authorized ADW provider on behalf of an account holder.  Advance deposit wagering shall not mean or include historical horse racing, nor any televised, video, or computer screen depicting a video game of chance or slot machine.

 

Sec. 2.  Minnesota Statutes 2022, section 240.01, subdivision 8, is amended to read:

 

Subd. 8.  Horse racing.  "Horse racing" is any form of live or simulcast of a live horse racing race in which horses carry a human rider or pull a sulky with a human.  Horse racing shall not include any form that has happened in the past or is considered historical horse racing.

 

Sec. 3.  Minnesota Statutes 2022, section 240.01, is amended by adding a subdivision to read:

 

Subd. 8a.  Historical horse racing.  "Historical horse racing" means any horse race that was previously conducted at a licensed racetrack, concluded with results, and concluded without scratches, disqualifications, or dead-heat finishes.

 

Sec. 4.  Minnesota Statutes 2022, section 240.01, subdivision 14, is amended to read:

 

Subd. 14.  Pari-mutuel betting.  "Pari-mutuel betting" is the system of betting on horse races where those who bet on horses that finish in the position or positions for which bets are taken share in the total amounts bet, less deductions required or permitted by law.  Pari-mutuel betting shall not include betting on a race that has occurred in the past or is considered historical horse racing or where bettors are allowed to bet on the individual outcome of a race or bettors do not share in the total amount of the bets taken.

 

Sec. 5.  [240.1563] RACING COMMISSION ECONOMIC DEVELOPMENT ACCOUNT.

 

The Racing Commission economic development account is established in the special revenue fund.  The account shall consist of any amounts transferred from the general fund.  The amounts deposited into the account are appropriated to the Minnesota Racing Commission.  The commission must provide money annually as follows to fund purse supplements:

 

(1) 28 percent to a licensed racetrack that primarily conducts standardbred horse racing; and

 

(2) 72 percent to a licensed racetrack that primarily conducts Thoroughbred and Quarter Horse racing.

 

Sec. 6.  Minnesota Statutes 2022, section 240.30, subdivision 8, is amended to read:

 

Subd. 8.  Limitations.  The commission may not approve any plan of operation under subdivision 6 that exceeds any of the following limitations:

 

(1) the maximum number of tables used for card playing at the card club at any one time, other than tables used for instruction, demonstrations, or poker tournament play, may not exceed 80;

 

(2) except as provided in clause (3), no wager may exceed $100;


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(3) for games in which each player is allowed to make only one wager or has a limited opportunity to change that wager, no wager may exceed $300.

 

A plan of operation shall not authorize historical horse racing, or any other form of gaming that is not expressly authorized for racetracks in law.

 

ARTICLE 9

APPROPRIATIONS; MISCELLANEOUS

 

Section 1.  DEPARTMENT OF PUBLIC SAFETY; APPROPRIATION.

 

$4,001,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of public safety to perform the duties required to establish and regulate mobile sports betting under Minnesota Statutes, sections 299L.10 to 299L.80, and fantasy contests under Minnesota Statutes, chapter 349C.  The base for this appropriation is $2,700,000 in fiscal year 2026 and each fiscal year thereafter.

 

Sec. 2.  DEPARTMENT OF REVENUE; APPROPRIATION.

 

$1,681,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of revenue to perform the duties necessary to establish and enforce the taxation of mobile sports betting and fantasy contests under Minnesota Statutes, chapters 297J and 297K.  The base for this appropriation is $1,353,000 in fiscal year 2026 and each fiscal year thereafter.

 

Sec. 3.  DEPARTMENT OF HUMAN SERVICES; APPROPRIATION.

 

$100,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of human services to administer the money appropriated under Minnesota Statutes, section 297J.02, subdivision 8.  The base for this appropriation is $165,000 in fiscal year 2026 and $526,000 in fiscal year 2027 and each fiscal year thereafter.

 

Sec. 4.  OFFICE OF THE ATTORNEY GENERAL; APPROPRIATION.

 

$702,000 in fiscal year 2025 is appropriated from the general fund to the Office of the Attorney General to perform the duties required to support state agencies regarding the regulation of mobile sports betting under Minnesota Statutes, sections 299L.10 to 299L.80, and fantasy contests under Minnesota Statutes, chapter 349C.  This is an ongoing appropriation.

 

Sec. 5.  RACING COMMISSION ECONOMIC DEVELOPMENT ACCOUNT; TRANSFER.

 

$625,000 in fiscal year 2026 is transferred from the general fund to the Racing Commission economic development account in the special revenue fund to perform the duties imposed under Minnesota Statutes, section 240.1563.  This transfer is ongoing.

 

Sec. 6.  STUDY ON MOTIVATIONS AND BELIEFS OF YOUNG ADULT GAMBLERS; APPROPRIATION.

 

Subdivision 1.  Appropriation.  $150,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of public safety for a grant to a nonprofit organization to conduct a study on the gambling motivations and beliefs of young adult gamblers.  The commissioner may not use any amount of this appropriation to administer the grant.  This is a onetime appropriation.

 

Subd. 2.  Award.  The commissioner shall award the grant to a nonprofit, gambling-neutral organization with experience raising public awareness about problem gambling and providing professional training for those who work with problem gamblers.


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Subd. 3.  Focus group.  (a) The grant recipient shall convene a focus group of 40 individuals who are at least 18 years of age but not more than 35 years of age and who have experience gambling in Minnesota.

 

(b) Membership of the focus group shall reflect the geographical and demographic diversity of Minnesotans who are 18 to 35 years of age.

 

(c) The focus group shall identify the reasons that young adults gamble and the ways in which they engage in gambling, including whether they wager on sporting events; participate in fantasy sports; purchase lottery tickets; visit casinos; engage in online gambling; participate in card playing as defined in Minnesota Statutes, section 240.01, subdivision 5; engage in pari-mutuel betting as defined in Minnesota Statutes, section 240.01, subdivision 14; or participate in lawful gambling authorized under Minnesota Statutes, chapter 349.

 

Subd. 4.  Qualitative survey.  Following completion of the focus group described in subdivision 3, the grant recipient shall create a qualitative survey and obtain responses from a sample of at least 50,000 individuals.

 

Subd. 5.  Report.  By January 15, 2026, the grant recipient shall submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over public safety, the legislative committees with jurisdiction over taxes, the committee in the house of representatives with jurisdiction over commerce, the committee in the senate with jurisdiction over state government finance and policy, the committee in the house of representatives with jurisdiction over ways and means, and the committee in the senate with jurisdiction over finance.  The report shall summarize the actions and findings of the grant recipient and shall make recommendations for policies and the use of financial resources to prevent and address problem gambling by young adults."

 

Renumber the articles and sections in sequence and correct the internal references

 

Amend the title as follows:

 

Page 1, lines 2 and 3, after "betting" insert "and fantasy contests"

 

Page 1, line 4, after "grants;" insert "providing for charitable gambling; providing for pari-mutuel horse racing;"

 

Correct the title numbers accordingly

 

 

With the recommendation that when so amended the bill be re-referred to the Committee on Taxes.

 

      The report was adopted.

 

 

Noor from the Committee on Human Services Finance to which was referred:

 

H. F. No. 2666, A bill for an act relating to human services; establishing a Minnesota basic income grant program; requiring a report; appropriating money.

 

Reported the same back with the recommendation that the bill be re-referred to the Committee on Economic Development Finance and Policy.

 

      The report was adopted.

 

 

Becker-Finn from the Committee on Judiciary Finance and Civil Law to which was referred:

 

H. F. No. 2895, A bill for an act relating to judiciary; modifying spousal maintenance; amending Minnesota Statutes 2022, section 518.552, subdivisions 1, 2, 3, 6, by adding subdivisions.

 

Reported the same back with the following amendments:


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Page 2, line 3, strike "temporary" and insert "transitional" and strike "permanent" and insert "indefinite"

 

Page 3, line 8, delete "2023" and insert "2024"

 

Page 3, line 9, delete "2023" and insert "2024"

 

 

With the recommendation that when so amended the bill be placed on the General Register.

 

      The report was adopted.

 

 

Moller from the Committee on Public Safety Finance and Policy to which was referred:

 

H. F. No. 3063, A bill for an act relating to public safety; removing law regarding collection of DNA data without a conviction; providing for the removal of certain biological specimens and records from the DNA index system; amending Minnesota Statutes 2022, section 299C.105, subdivision 1; repealing Minnesota Statutes 2022, section 299C.105, subdivision 3.

 

Reported the same back with the following amendments:

 

Page 1, delete section 1 and insert:

 

"Section 1.  [260B.009] DNA COLLECTION; PARENTAL CONSENT, COURT ORDER, OR WARRANT REQUIRED.

 

(a) As used in this section, "DNA analysis" has the meaning given in section 299C.155.

 

(b) A biological specimen for the purpose of DNA analysis must not be taken from a minor without the consent of the minor's parent or custodian, a court order, or a warrant.

 

(c) A minor whose biological specimen is collected in violation of paragraph (b) may move the court to suppress the use, as evidence, of the results of the DNA analysis and for destruction of the biological specimen.

 

EFFECTIVE DATE.  This section is effective August 1, 2024, and applies to biological specimens collected on or after that date.

 

Sec. 2.  Minnesota Statutes 2023 Supplement, section 299C.105, subdivision 1, is amended to read:

 

Subdivision 1.  Required collection of biological specimen for DNA testing.  (a) Sheriffs, peace officers, and community corrections agencies operating secure juvenile detention facilities shall take or cause to be taken biological specimens for the purpose of DNA analysis as defined in section 299C.155, of the following:

 

(1) persons who have appeared in court and have had a judicial probable cause determination on a charge of committing, or persons having been convicted of or attempting to commit, any of the following:

 

(i) murder under section 609.185, 609.19, or 609.195;

 

(ii) manslaughter under section 609.20 or 609.205;

 

(iii) assault under section 609.221, 609.222, or 609.223;

 

(iv) robbery under section 609.24, aggravated robbery under section 609.245, or carjacking under section 609.247;


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(v) kidnapping under section 609.25;

 

(vi) false imprisonment under section 609.255;

 

(vii) criminal sexual conduct under section 609.342, 609.343, 609.344, 609.345, 609.3451, subdivision 3, or 609.3453;

 

(viii) incest under section 609.365;

 

(ix) burglary under section 609.582, subdivision 1; or

 

(x) indecent exposure under section 617.23, subdivision 3;

 

(2) persons sentenced as patterned sex offenders under section 609.3455, subdivision 3a; or

 

(3) juveniles who have appeared in court and have had a judicial probable cause determination on a charge of committing, or juveniles having been adjudicated delinquent for committing or attempting to commit, any of the following:

 

(i) murder under section 609.185, 609.19, or 609.195;

 

(ii) manslaughter under section 609.20 or 609.205;

 

(iii) assault under section 609.221, 609.222, or 609.223;

 

(iv) robbery under section 609.24, aggravated robbery under section 609.245, or carjacking under section 609.247;

 

(v) kidnapping under section 609.25;

 

(vi) false imprisonment under section 609.255;

 

(vii) criminal sexual conduct under section 609.342, 609.343, 609.344, 609.345, 609.3451, subdivision 3, or 609.3453;

 

(viii) incest under section 609.365;

 

(ix) burglary under section 609.582, subdivision 1; or

 

(x) indecent exposure under section 617.23, subdivision 3.

 

(b) Unless the superintendent of the bureau requires a shorter period, within 72 hours the biological specimen required under paragraph (a) must be forwarded to the bureau in such a manner as may be prescribed by the superintendent.

 

(c) Prosecutors, courts, and probation officers shall attempt to ensure that the biological specimen is taken on a person described in paragraph (a)."

 

Page 2, delete section 2

 

Renumber the sections in sequence


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Amend the title as follows:

 

Page 1, line 3, delete everything after the semicolon and insert "requiring parental consent for DNA collection;"

 

Page 1, line 4, delete everything before "amending"

 

Correct the title numbers accordingly

 

 

With the recommendation that when so amended the bill be placed on the General Register.

 

      The report was adopted.

 

 

Becker-Finn from the Committee on Judiciary Finance and Civil Law to which was referred:

 

H. F. No. 3204, A bill for an act relating to domestic relations; modifying parenting time provisions; amending Minnesota Statutes 2022, sections 257.025; 518.131, subdivisions 1, 11; 518.14; 518.17, subdivisions 1, 3; 518.175, subdivisions 1, 6.

 

Reported the same back with the following amendments:

 

Page 3, line 11, delete "14" and insert "30"

 

Page 3, after line 12, insert:

 

"(c) A court must consider credible allegations of domestic abuse, substance abuse, maltreatment findings, or neglect as a reasonable basis for a party who has denied parenting time to the other party.

 

(d) If temporary parenting time is ordered, the court may also order temporary child support if requested by the other party."

 

Page 3, line 31, after the period, insert "In determining whether to award fees, the court must consider the circumstances and any other factors that contributed to the length or expense of the proceeding."

 

Page 8, line 30, delete "must" and strike "provide" and insert "shall fully consider providing"

 

Page 9, line 23, reinstate "$500" and delete "$1,000"

 

Page 9, line 26, before the semicolon, insert "in accordance with the procedures established by section 518.18"

 

Page 10, line 7, strike "(d)" and insert "(e)"

 

Page 10, line 18, strike "(b) to (e)" and insert "(d) to (f)"

 

Page 11, line 11, delete "$1,000" and insert "$500"

 

 

With the recommendation that when so amended the bill be placed on the General Register.

 

      The report was adopted.


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Nelson, M., from the Committee on Labor and Industry Finance and Policy to which was referred:

 

H. F. No. 3275, A resolution memorializing Congress that the Legislature of the State of Minnesota reaffirms its ratification of the Child Labor Amendment to the United States Constitution.

 

Reported the same back with the recommendation that the bill be placed on the General Register.

 

      The report was adopted.

 

 

Moller from the Committee on Public Safety Finance and Policy to which was referred:

 

H. F. No. 3304, A bill for an act relating to public safety; requiring a report regarding the sentencing of certain military veterans; amending Minnesota Statutes 2022, section 609.1056, by adding a subdivision.

 

Reported the same back with the following amendments:

 

Page 1, line 9, delete "(d)" and insert "(b)"

 

Page 2, line 23, delete "2023" and insert "2024"

 

 

With the recommendation that when so amended the bill be placed on the General Register.

 

      The report was adopted.

 

 

Stephenson from the Committee on Commerce Finance and Policy to which was referred:

 

H. F. No. 3488, A bill for an act relating to labor; providing compensation for minors appearing in Internet content creation; amending Minnesota Statutes 2022, section 181A.03, by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 181A.

 

Reported the same back with the following amendments:

 

Page 2, line 5, after "(a)" insert "Except as otherwise provided in this section,"

 

Page 2, line 16, delete "$0.10" and insert "$0.01"

 

Page 2, line 18, after the period, insert "If a minor under the age of 14 is featured by a content creator, the minor shall receive 100 percent of the proceeds of the creator's compensation for the content they have appeared in, less any amount owed to another minor."

 

Page 2, after line 18, insert:

 

"(c) A minor who is under the age of 18 and over the age of 13 may produce, create, and publish their own content and is entitled to all compensation for their own content creation.  A minor engaged in the work of content creation as the producer, creator, and publisher of content must also follow the requirements in paragraph (b).

 

(d) A minor who appears incidentally in a video that depicts a public event that a reasonable person would know to be broadcast, including a concert, competition, or sporting event, and is published by a content creator is not considered a violation of this section."


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Page 3, line 32, before the semicolon, insert "including any compensation owed under this section"

 

Page 4, line 7, before "Along" insert "(a)"

 

Page 4, after line 10, insert:

 

"(b) The attorney general may enforce subdivision 1, pursuant to section 8.31, and may recover costs and fees."

 

 

With the recommendation that when so amended the bill be placed on the General Register.

 

      The report was adopted.

 

 

Fischer from the Committee on Human Services Policy to which was referred:

 

H. F. No. 3495, A bill for an act relating to behavioral health; modifying functional assessment requirements; exempting children's day treatment providers from medication self-administration requirements under certain circumstances; modifying certified mental health clinic staffing standards; modifying intensive residential treatment services and residential crisis stabilization weekly team meeting requirements; requiring the commissioner of human services to establish an initial provider entity application and certification process and recertification process for certain mental health provider types; modifying client eligibility criteria for certain services in children's therapeutic services and supports; removing an excluded service from children's therapeutic services and supports medical assistance payment; modifying intensive nonresidential rehabilitative mental health services team members to include co-occurring disorder specialists; amending Minnesota Statutes 2022, sections 245I.10, subdivision 9; 245I.11, subdivision 1; 245I.20, subdivision 4; 245I.23, subdivision 14; 256B.0943, subdivisions 3, 12; 256B.0947, subdivision 5; proposing coding for new law in Minnesota Statutes, chapter 256B.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

MENTAL HEALTH UNIFORM SERVICE STANDARDS

 

Section 1.  Minnesota Statutes 2022, section 245I.02, subdivision 17, is amended to read:

 

Subd. 17.  Functional assessment.  "Functional assessment" means the assessment of a client's current level of functioning relative to functioning that is appropriate for someone the client's age.  For a client five years of age or younger, a functional assessment is the Early Childhood Service Intensity Instrument (ESCII).  For a client six to 17 years of age, a functional assessment is the Child and Adolescent Service Intensity Instrument (CASII).  For a client 18 years of age or older, a functional assessment is the functional assessment described in section 245I.10, subdivision 9.

 

Sec. 2.  Minnesota Statutes 2022, section 245I.02, subdivision 19, is amended to read:

 

Subd. 19.  Level of care assessment.  "Level of care assessment" means the level of care decision support tool appropriate to the client's age.  For a client five years of age or younger, a level of care assessment is the Early Childhood Service Intensity Instrument (ESCII).  For a client six to 17 years of age, a level of care assessment is the Child and Adolescent Service Intensity Instrument (CASII).  For a client 18 years of age or older, a level of care assessment is the Level of Care Utilization System for Psychiatric and Addiction Services (LOCUS) or another tool authorized by the commissioner.


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Sec. 3.  Minnesota Statutes 2022, section 245I.04, subdivision 6, is amended to read:

 

Subd. 6.  Clinical trainee qualifications.  (a) A clinical trainee is a staff person who:  (1) is enrolled in an accredited graduate program of study to prepare the staff person for independent licensure as a mental health professional and who is participating in a practicum or internship with the license holder through the individual's graduate program; or (2) has completed an accredited graduate program of study to prepare the staff person for independent licensure as a mental health professional and who is in compliance with the requirements of the applicable health-related licensing board, including requirements for supervised practice.; or (3) has completed an accredited graduate program of study to prepare the staff person for independent licensure as a mental health professional, has completed a practicum or internship and has not yet taken or received the results from the required test or is waiting for the final licensure decision.

 

(b) A clinical trainee is responsible for notifying and applying to a health-related licensing board to ensure that the trainee meets the requirements of the health-related licensing board.  As permitted by a health-related licensing board, treatment supervision under this chapter may be integrated into a plan to meet the supervisory requirements of the health-related licensing board but does not supersede those requirements.

 

Sec. 4.  Minnesota Statutes 2022, section 245I.10, subdivision 9, is amended to read:

 

Subd. 9.  Functional assessment; required elements.  (a) When a license holder is completing a functional assessment for an adult client, the license holder must:

 

(1) complete a functional assessment of the client after completing the client's diagnostic assessment;

 

(2) use a collaborative process that allows the client and the client's family and other natural supports, the client's referral sources, and the client's providers to provide information about how the client's symptoms of mental illness impact the client's functioning;

 

(3) if applicable, document the reasons that the license holder did not contact the client's family and other natural supports;

 

(4) assess and document how the client's symptoms of mental illness impact the client's functioning in the following areas:

 

(i) the client's mental health symptoms;

 

(ii) the client's mental health service needs;

 

(iii) the client's substance use;

 

(iv) the client's vocational and educational functioning;

 

(v) the client's social functioning, including the use of leisure time;

 

(vi) the client's interpersonal functioning, including relationships with the client's family and other natural supports;

 

(vii) the client's ability to provide self-care and live independently;

 

(viii) the client's medical and dental health;

 

(ix) the client's financial assistance needs; and


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(x) the client's housing and transportation needs;

 

(5) include a narrative summarizing the client's strengths, resources, and all areas of functional impairment;

 

(6)(5) complete the client's functional assessment before the client's initial individual treatment plan unless a service specifies otherwise; and

 

(7)(6) update the client's functional assessment with the client's current functioning whenever there is a significant change in the client's functioning or at least every 180 365 days, unless a service specifies otherwise.

 

(b) A license holder may use any available, validated measurement tool, including but not limited to the Daily Living Activities-20, when completing the required elements of a functional assessment under this subdivision.

 

Sec. 5.  Minnesota Statutes 2022, section 245I.11, subdivision 1, is amended to read:

 

Subdivision 1.  Generally.  (a) If a license holder is licensed as a residential program, stores or administers client medications, or observes clients self-administer medications, the license holder must ensure that a staff person who is a registered nurse or licensed prescriber is responsible for overseeing storage and administration of client medications and observing as a client self-administers medications, including training according to section 245I.05, subdivision 6, and documenting the occurrence according to section 245I.08, subdivision 5.

 

(b) For purposes of this section, "observed self-administration" means the preparation and administration of a medication by a client to themselves under the direct supervision of a registered nurse or a staff member to whom a registered nurse delegates supervision duty.  Observed self-administration does not include a client's use of a medication that they keep in their own possession while participating in a program.

 

Sec. 6.  Minnesota Statutes 2022, section 245I.11, is amended by adding a subdivision to read:

 

Subd. 6.  Medication administration in children's day treatment settings.  (a) For a program providing children's day treatment services under section 256B.0943, the license holder must maintain policies and procedures that state whether the program will store medication and administer or allow observed self-administration.

 

(b) For a program providing children's day treatment services under section 256B.0943 that does not store medications but allows clients to use a medication that they keep in their own possession while participating in a program, the license holder must maintain documentation from a licensed prescriber regarding the safety of medications held by clients, including:

 

(1) an evaluation that the client is capable of holding and administering the medication safely;

 

(2) an evaluation of whether the medication is prone to diversion, misuse, or self-injury; and

 

(3) any conditions under which the license holder should no longer allow the client to maintain the medication in their own possession.

 

Sec. 7.  Minnesota Statutes 2022, section 245I.20, subdivision 4, is amended to read:

 

Subd. 4.  Minimum staffing standards.  (a) A certification holder's treatment team must consist of at least four mental health professionals.  At least two of the mental health professionals must be employed by or under contract with the mental health clinic for a minimum of 35 hours per week each.  Each of the two mental health professionals must specialize in a different mental health discipline.

 

(b) The treatment team must include:

 

(1) a physician qualified as a mental health professional according to section 245I.04, subdivision 2, clause (4), or a nurse qualified as a mental health professional according to section 245I.04, subdivision 2, clause (1); and


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(2) a psychologist qualified as a mental health professional according to section 245I.04, subdivision 2, clause (3).

 

(c) The staff persons fulfilling the requirement in paragraph (b) must provide clinical services at least:

 

(1) eight hours every two weeks if the mental health clinic has over 25.0 full-time equivalent treatment team members;

 

(2) eight hours each month if the mental health clinic has 15.1 to 25.0 full-time equivalent treatment team members;

 

(3) four hours each month if the mental health clinic has 5.1 to 15.0 full-time equivalent treatment team members; or

 

(4) two hours each month if the mental health clinic has 2.0 to 5.0 full-time equivalent treatment team members or only provides in-home services to clients.

 

(d) The certification holder must maintain a record that demonstrates compliance with this subdivision.

 

Sec. 8.  Minnesota Statutes 2022, section 245I.23, subdivision 14, is amended to read:

 

Subd. 14.  Weekly team meetings.  (a) The license holder must hold weekly team meetings and ancillary meetings according to this subdivision.

 

(b) A mental health professional or certified rehabilitation specialist must hold at least one team meeting each calendar week and.  The mental health professional or certified rehabilitation specialist must be physically present at the team meeting, except as permitted under paragraph (d).  All treatment team members, including treatment team members who work on a part-time or intermittent basis, must participate in a minimum of one team meeting during each calendar week when the treatment team member is working for the license holder.  The license holder must document all weekly team meetings, including the names of meeting attendees, and indicate whether the meeting was conducted remotely under paragraph (d).

 

(c) If a treatment team member cannot participate in a weekly team meeting, the treatment team member must participate in an ancillary meeting.  A mental health professional, certified rehabilitation specialist, clinical trainee, or mental health practitioner who participated in the most recent weekly team meeting may lead the ancillary meeting.  During the ancillary meeting, the treatment team member leading the ancillary meeting must review the information that was shared at the most recent weekly team meeting, including revisions to client treatment plans and other information that the treatment supervisors exchanged with treatment team members.  The license holder must document all ancillary meetings, including the names of meeting attendees.

 

(d) A license holder may permit one weekly meeting to occur remotely and without physical presence due to illness or weather conditions.  If the conditions that prevent physical presence persist for longer than one week, the license holder must request a variance to conduct additional meetings remotely.

 

ARTICLE 2

ADULT MENTAL HEALTH SERVICES

 

Section 1.  Minnesota Statutes 2022, section 245.462, subdivision 6, is amended to read:

 

Subd. 6.  Community support services program.  "Community support services program" means services, other than inpatient or residential treatment services, provided or coordinated by an identified program and staff under the treatment supervision of a mental health professional designed to help adults with serious and persistent mental illness to function and remain in the community.  A community support services program includes:

 

(1) client outreach,


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(2) medication monitoring,

 

(3) assistance in independent living skills,

 

(4) development of employability and work-related opportunities,

 

(5) crisis assistance,

 

(6) psychosocial rehabilitation,

 

(7) help in applying for government benefits, and

 

(8) housing support services.

 

The community support services program must be coordinated with the case management services specified in section 245.4711.  A program that meets the accreditation standards for Clubhouse International model programs meets the requirements of this subdivision.

 

Sec. 2.  [253B.042] ENGAGEMENT SERVICES PILOT GRANTS.

 

Subdivision 1.  Creation.  The engagement services pilot grant program is established in the Department of Human Services, to provide grants to counties or certified community behavioral health centers to provide engagement services under section 253B.041.  Engagement services provide culturally responsive, person-centered early interventions to prevent an individual from meeting the criteria for civil commitment and promote positive outcomes.

 

Subd. 2.  Allowable grant activities.  (a) Grantees must use grant money to:

 

(1) develop a system to respond to requests for engagement services;

 

(2) provide the following engagement services, taking into account an individual's preferences for treatment services and supports:

 

(i) assertive attempts to engage an individual in voluntary treatment for mental illness for at least 90 days;

 

(ii) efforts to engage an individual's existing support systems and interested persons, including but not limited to providing education on restricting means of harm and suicide prevention, when the provider determines that such engagement would be helpful; and

 

(iii) collaboration with the individual to meet the individual's immediate needs, including but not limited to housing access, food and income assistance, disability verification, medication management, and medical treatment;

 

(3) conduct outreach to families and providers; and

 

(4) evaluate the impact of engagement services on decreasing civil commitments, increasing engagement in treatment, decreasing police involvement with individuals exhibiting symptoms of serious mental illness, and other measures.

 

(b) Engagement services staff must have completed training on person-centered care.  Staff may include but are not limited to mobile crisis providers under section 256B.0624, certified peer specialists under section 256B.0615, community-based treatment programs staff, and homeless outreach workers.


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Subd. 3.  Outcome evaluation.  The commissioner of management and budget must formally evaluate outcomes of grants awarded under this section, using an experimental or quasi-experimental design.  The commissioner shall consult with the commissioner of management and budget to ensure that grants are administered to facilitate this evaluation.  Grantees must collect and provide the information needed to the commissioner of human services to complete the evaluation.  The commissioner must provide the information collected to the commissioner of management and budget to conduct the evaluation.  The commissioner of management and budget may obtain additional relevant data to support the evaluation study pursuant to section 15.08.

 

Sec. 3.  Minnesota Statutes 2022, section 256B.0622, subdivision 2a, is amended to read:

 

Subd. 2a.  Eligibility for assertive community treatment.  (a) An eligible client for assertive community treatment is an individual who meets the following criteria as assessed by an ACT team:

 

(1) is age 18 or older.  Individuals ages 16 and 17 may be eligible upon approval by the commissioner;

 

(2) has a primary diagnosis of schizophrenia, schizoaffective disorder, major depressive disorder with psychotic features, other psychotic disorders, or bipolar disorder.  Individuals with other psychiatric illnesses may qualify for assertive community treatment if they have a serious mental illness and meet the criteria outlined in clauses (3) and (4), but no more than ten percent of an ACT team's clients may be eligible based on this criteria.  Individuals with a primary diagnosis of a substance use disorder, intellectual developmental disabilities, borderline personality disorder, antisocial personality disorder, traumatic brain injury, or an autism spectrum disorder are not eligible for assertive community treatment;

 

(3) has significant functional impairment as demonstrated by at least one of the following conditions:

 

(i) significant difficulty consistently performing the range of routine tasks required for basic adult functioning in the community or persistent difficulty performing daily living tasks without significant support or assistance;

 

(ii) significant difficulty maintaining employment at a self-sustaining level or significant difficulty consistently carrying out the head-of-household responsibilities; or

 

(iii) significant difficulty maintaining a safe living situation;

 

(4) has a need for continuous high-intensity services as evidenced by at least two of the following:

 

(i) two or more psychiatric hospitalizations or residential crisis stabilization services in the previous 12 months;

 

(ii) frequent utilization of mental health crisis services in the previous six months;

 

(iii) 30 or more consecutive days of psychiatric hospitalization in the previous 24 months;

 

(iv) intractable, persistent, or prolonged severe psychiatric symptoms;

 

(v) coexisting mental health and substance use disorders lasting at least six months;

 

(vi) recent history of involvement with the criminal justice system or demonstrated risk of future involvement;

 

(vii) significant difficulty meeting basic survival needs;

 

(viii) residing in substandard housing, experiencing homelessness, or facing imminent risk of homelessness;

 

(ix) significant impairment with social and interpersonal functioning such that basic needs are in jeopardy;


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(x) coexisting mental health and physical health disorders lasting at least six months;

 

(xi) residing in an inpatient or supervised community residence but clinically assessed to be able to live in a more independent living situation if intensive services are provided;

 

(xii) requiring a residential placement if more intensive services are not available; or

 

(xiii) difficulty effectively using traditional office-based outpatient services;

 

(5) there are no indications that other available community-based services would be equally or more effective as evidenced by consistent and extensive efforts to treat the individual; and

 

(6) in the written opinion of a licensed mental health professional, has the need for mental health services that cannot be met with other available community-based services, or is likely to experience a mental health crisis or require a more restrictive setting if assertive community treatment is not provided.

 

(b) An individual meets the criteria for assertive community treatment under this section immediately following participation in a first episode of psychosis program if the individual:

 

(1) meets the eligibility requirements outlined in paragraph (a), clauses (1), (2), (5), and (6);

 

(2) is currently participating in a first episode of psychosis program under section 245.4905; and

 

(3) needs the level of intensity provided by an ACT team, in the opinion of the individual's first episode of psychosis program, in order to prevent crisis services, hospitalization, homelessness, and involvement with the criminal justice system.

 

Sec. 4.  Minnesota Statutes 2022, section 256B.0622, subdivision 3a, is amended to read:

 

Subd. 3a.  Provider certification and contract requirements for assertive community treatment.  (a) The assertive community treatment provider must:

 

(1) have a contract with the host county to provide assertive community treatment services; and

 

(2) have each ACT team be certified by the state following the certification process and procedures developed by the commissioner.  The certification process determines whether the ACT team meets the standards for assertive community treatment under this section, the standards in chapter 245I as required in section 245I.011, subdivision 5, and minimum program fidelity standards as measured by a nationally recognized fidelity tool approved by the commissioner.  Recertification must occur at least every three years.

 

(b) An ACT team certified under this subdivision must meet the following standards:

 

(1) have capacity to recruit, hire, manage, and train required ACT team members;

 

(2) have adequate administrative ability to ensure availability of services;

 

(3) ensure flexibility in service delivery to respond to the changing and intermittent care needs of a client as identified by the client and the individual treatment plan;

 

(4) keep all necessary records required by law;

 

(5) be an enrolled Medicaid provider; and

 

(6) establish and maintain a quality assurance plan to determine specific service outcomes and the client's satisfaction with services.


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(c) The commissioner may intervene at any time and decertify an ACT team with cause.  The commissioner shall establish a process for decertification of an ACT team and shall require corrective action, medical assistance repayment, or decertification of an ACT team that no longer meets the requirements in this section or that fails to meet the clinical quality standards or administrative standards provided by the commissioner in the application and certification process.  The decertification is subject to appeal to the state.

 

Sec. 5.  Minnesota Statutes 2022, section 256B.0622, subdivision 7a, is amended to read:

 

Subd. 7a.  Assertive community treatment team staff requirements and roles.  (a) The required treatment staff qualifications and roles for an ACT team are:

 

(1) the team leader:

 

(i) shall be a mental health professional.  Individuals who are not licensed but who are eligible for licensure and are otherwise qualified may also fulfill this role but must obtain full licensure within 24 months of assuming the role of team leader;

 

(ii) must be an active member of the ACT team and provide some direct services to clients;

 

(iii) must be a single full-time staff member, dedicated to the ACT team, who is responsible for overseeing the administrative operations of the team, providing treatment supervision of services in conjunction with the psychiatrist or psychiatric care provider, and supervising team members to ensure delivery of best and ethical practices; and

 

(iv) must be available to provide ensure that overall treatment supervision to the ACT team is available after regular business hours and on weekends and holidays.  The team leader may delegate this duty to another and is provided by a qualified member of the ACT team;

 

(2) the psychiatric care provider:

 

(i) must be a mental health professional permitted to prescribe psychiatric medications as part of the mental health professional's scope of practice.  The psychiatric care provider must have demonstrated clinical experience working with individuals with serious and persistent mental illness;

 

(ii) shall collaborate with the team leader in sharing overall clinical responsibility for screening and admitting clients; monitoring clients' treatment and team member service delivery; educating staff on psychiatric and nonpsychiatric medications, their side effects, and health-related conditions; actively collaborating with nurses; and helping provide treatment supervision to the team;

 

(iii) shall fulfill the following functions for assertive community treatment clients:  provide assessment and treatment of clients' symptoms and response to medications, including side effects; provide brief therapy to clients; provide diagnostic and medication education to clients, with medication decisions based on shared decision making; monitor clients' nonpsychiatric medical conditions and nonpsychiatric medications; and conduct home and community visits;

 

(iv) shall serve as the point of contact for psychiatric treatment if a client is hospitalized for mental health treatment and shall communicate directly with the client's inpatient psychiatric care providers to ensure continuity of care;

 

(v) shall have a minimum full-time equivalency that is prorated at a rate of 16 hours per 50 clients.  Part-time psychiatric care providers shall have designated hours to work on the team, with sufficient blocks of time on consistent days to carry out the provider's clinical, supervisory, and administrative responsibilities.  No more than two psychiatric care providers may share this role; and


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(vi) shall provide psychiatric backup to the program after regular business hours and on weekends and holidays.  The psychiatric care provider may delegate this duty to another qualified psychiatric provider;

 

(3) the nursing staff:

 

(i) shall consist of one to three registered nurses or advanced practice registered nurses, of whom at least one has a minimum of one-year experience working with adults with serious mental illness and a working knowledge of psychiatric medications.  No more than two individuals can share a full-time equivalent position;

 

(ii) are responsible for managing medication, administering and documenting medication treatment, and managing a secure medication room; and

 

(iii) shall develop strategies, in collaboration with clients, to maximize taking medications as prescribed; screen and monitor clients' mental and physical health conditions and medication side effects; engage in health promotion, prevention, and education activities; communicate and coordinate services with other medical providers; facilitate the development of the individual treatment plan for clients assigned; and educate the ACT team in monitoring psychiatric and physical health symptoms and medication side effects;

 

(4) the co-occurring disorder specialist:

 

(i) shall be a full-time equivalent co-occurring disorder specialist who has received specific training on co‑occurring disorders that is consistent with national evidence-based practices.  The training must include practical knowledge of common substances and how they affect mental illnesses, the ability to assess substance use disorders and the client's stage of treatment, motivational interviewing, and skills necessary to provide counseling to clients at all different stages of change and treatment.  The co-occurring disorder specialist may also be an individual who is a licensed alcohol and drug counselor as described in section 148F.01, subdivision 5, or a counselor who otherwise meets the training, experience, and other requirements in section 245G.11, subdivision 5.  No more than two co‑occurring disorder specialists may occupy this role; and

 

(ii) shall provide or facilitate the provision of co-occurring disorder treatment to clients.  The co-occurring disorder specialist shall serve as a consultant and educator to fellow ACT team members on co-occurring disorders;

 

(5) the vocational specialist:

 

(i) shall be a full-time vocational specialist who has at least one-year experience providing employment services or advanced education that involved field training in vocational services to individuals with mental illness.  An individual who does not meet these qualifications may also serve as the vocational specialist upon completing a training plan approved by the commissioner;

 

(ii) shall provide or facilitate the provision of vocational services to clients.  The vocational specialist serves as a consultant and educator to fellow ACT team members on these services; and

 

(iii) must not refer individuals to receive any type of vocational services or linkage by providers outside of the ACT team;

 

(6) the mental health certified peer specialist:

 

(i) shall be a full-time equivalent.  No more than two individuals can share this position.  The mental health certified peer specialist is a fully integrated team member who provides highly individualized services in the community and promotes the self-determination and shared decision-making abilities of clients.  This requirement may be waived due to workforce shortages upon approval of the commissioner;

 

(ii) must provide coaching, mentoring, and consultation to the clients to promote recovery, self-advocacy, and self-direction, promote wellness management strategies, and assist clients in developing advance directives; and


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(iii) must model recovery values, attitudes, beliefs, and personal action to encourage wellness and resilience, provide consultation to team members, promote a culture where the clients' points of view and preferences are recognized, understood, respected, and integrated into treatment, and serve in a manner equivalent to other team members;

 

(7) the program administrative assistant shall be a full-time office-based program administrative assistant position assigned to solely work with the ACT team, providing a range of supports to the team, clients, and families; and

 

(8) additional staff:

 

(i) shall be based on team size.  Additional treatment team staff may include mental health professionals; clinical trainees; certified rehabilitation specialists; mental health practitioners; or mental health rehabilitation workers.  These individuals shall have the knowledge, skills, and abilities required by the population served to carry out rehabilitation and support functions; and

 

(ii) shall be selected based on specific program needs or the population served.

 

(b) Each ACT team must clearly document schedules for all ACT team members.

 

(c) Each ACT team member must serve as a primary team member for clients assigned by the team leader and are responsible for facilitating the individual treatment plan process for those clients.  The primary team member for a client is the responsible team member knowledgeable about the client's life and circumstances and writes the individual treatment plan.  The primary team member provides individual supportive therapy or counseling, and provides primary support and education to the client's family and support system.

 

(d) Members of the ACT team must have strong clinical skills, professional qualifications, experience, and competency to provide a full breadth of rehabilitation services.  Each staff member shall be proficient in their respective discipline and be able to work collaboratively as a member of a multidisciplinary team to deliver the majority of the treatment, rehabilitation, and support services clients require to fully benefit from receiving assertive community treatment.

 

(e) Each ACT team member must fulfill training requirements established by the commissioner.

 

Sec. 6.  Minnesota Statutes 2023 Supplement, section 256B.0622, subdivision 7b, is amended to read:

 

Subd. 7b.  Assertive community treatment program size and opportunities scores.  (a) Each ACT team shall maintain an annual average caseload that does not exceed 100 clients.  Staff-to-client ratios shall be based on team size as follows: must demonstrate that the team attained a passing score according to the most recently issued Tool for Measurement of Assertive Community Treatment (TMACT).

 

(1) a small ACT team must:

 

(i) employ at least six but no more than seven full-time treatment team staff, excluding the program assistant and the psychiatric care provider;

 

(ii) serve an annual average maximum of no more than 50 clients;

 

(iii) ensure at least one full-time equivalent position for every eight clients served;

 

(iv) schedule ACT team staff on weekdays and on-call duty to provide crisis services and deliver services after hours when staff are not working;


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(v) provide crisis services during business hours if the small ACT team does not have sufficient staff numbers to operate an after-hours on-call system.  During all other hours, the ACT team may arrange for coverage for crisis assessment and intervention services through a reliable crisis-intervention provider as long as there is a mechanism by which the ACT team communicates routinely with the crisis-intervention provider and the on-call ACT team staff are available to see clients face-to-face when necessary or if requested by the crisis-intervention services provider;

 

(vi) adjust schedules and provide staff to carry out the needed service activities in the evenings or on weekend days or holidays, when necessary;

 

(vii) arrange for and provide psychiatric backup during all hours the psychiatric care provider is not regularly scheduled to work.  If availability of the ACT team's psychiatric care provider during all hours is not feasible, alternative psychiatric prescriber backup must be arranged and a mechanism of timely communication and coordination established in writing; and

 

(viii) be composed of, at minimum, one full-time team leader, at least 16 hours each week per 50 clients of psychiatric provider time, or equivalent if fewer clients, one full-time equivalent nursing, one full-time co-occurring disorder specialist, one full-time equivalent mental health certified peer specialist, one full-time vocational specialist, one full-time program assistant, and at least one additional full-time ACT team member who has mental health professional, certified rehabilitation specialist, clinical trainee, or mental health practitioner status; and

 

(2) a midsize ACT team shall:

 

(i) be composed of, at minimum, one full-time team leader, at least 16 hours of psychiatry time for 51 clients, with an additional two hours for every six clients added to the team, 1.5 to two full-time equivalent nursing staff, one full-time co-occurring disorder specialist, one full-time equivalent mental health certified peer specialist, one full-time vocational specialist, one full-time program assistant, and at least 1.5 to two additional full-time equivalent ACT members, with at least one dedicated full-time staff member with mental health professional status.  Remaining team members may have mental health professional, certified rehabilitation specialist, clinical trainee, or mental health practitioner status;

 

(ii) employ seven or more treatment team full-time equivalents, excluding the program assistant and the psychiatric care provider;

 

(iii) serve an annual average maximum caseload of 51 to 74 clients;

 

(iv) ensure at least one full-time equivalent position for every nine clients served;

 

(v) schedule ACT team staff for a minimum of ten-hour shift coverage on weekdays and six- to eight-hour shift coverage on weekends and holidays.  In addition to these minimum specifications, staff are regularly scheduled to provide the necessary services on a client-by-client basis in the evenings and on weekends and holidays;

 

(vi) schedule ACT team staff on-call duty to provide crisis services and deliver services when staff are not working;

 

(vii) have the authority to arrange for coverage for crisis assessment and intervention services through a reliable crisis-intervention provider as long as there is a mechanism by which the ACT team communicates routinely with the crisis-intervention provider and the on-call ACT team staff are available to see clients face-to-face when necessary or if requested by the crisis-intervention services provider; and


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(viii) arrange for and provide psychiatric backup during all hours the psychiatric care provider is not regularly scheduled to work.  If availability of the psychiatric care provider during all hours is not feasible, alternative psychiatric prescriber backup must be arranged and a mechanism of timely communication and coordination established in writing;

 

(3) a large ACT team must:

 

(i) be composed of, at minimum, one full-time team leader, at least 32 hours each week per 100 clients, or equivalent of psychiatry time, three full-time equivalent nursing staff, one full-time co-occurring disorder specialist, one full-time equivalent mental health certified peer specialist, one full-time vocational specialist, one full-time program assistant, and at least two additional full-time equivalent ACT team members, with at least one dedicated full-time staff member with mental health professional status.  Remaining team members may have mental health professional or mental health practitioner status;

 

(ii) employ nine or more treatment team full-time equivalents, excluding the program assistant and psychiatric care provider;

 

(iii) serve an annual average maximum caseload of 75 to 100 clients;

 

(iv) ensure at least one full-time equivalent position for every nine individuals served;

 

(v) schedule staff to work two eight-hour shifts, with a minimum of two staff on the second shift providing services at least 12 hours per day weekdays.  For weekends and holidays, the team must operate and schedule ACT team staff to work one eight-hour shift, with a minimum of two staff each weekend day and every holiday;

 

(vi) schedule ACT team staff on-call duty to provide crisis services and deliver services when staff are not working; and

 

(vii) arrange for and provide psychiatric backup during all hours the psychiatric care provider is not regularly scheduled to work.  If availability of the ACT team psychiatric care provider during all hours is not feasible, alternative psychiatric backup must be arranged and a mechanism of timely communication and coordination established in writing.

 

(b) An ACT team of any size may have a staff-to-client ratio that is lower than the requirements described in paragraph (a) upon approval by the commissioner, but may not exceed a one-to-ten staff-to-client ratio.

 

Sec. 7.  Minnesota Statutes 2022, section 256B.0622, subdivision 7d, is amended to read:

 

Subd. 7d.  Assertive community treatment assessment and individual treatment plan.  (a) An initial assessment shall be completed the day of the client's admission to assertive community treatment by the ACT team leader or the psychiatric care provider, with participation by designated ACT team members and the client.  The initial assessment must include obtaining or completing a standard diagnostic assessment according to section 245I.10, subdivision 6, and completing a 30-day individual treatment plan.  The team leader, psychiatric care provider, or other mental health professional designated by the team leader or psychiatric care provider, must update the client's diagnostic assessment at least annually as required under section 245I.10, subdivision 2, paragraphs (f) and (g).

 

(b) A functional assessment must be completed according to section 245I.10, subdivision 9.  Each part of the functional assessment areas shall be completed by each respective team specialist or an ACT team member with skill and knowledge in the area being assessed.

 

(c) Between 30 and 45 days after the client's admission to assertive community treatment, the entire ACT team must hold a comprehensive case conference, where all team members, including the psychiatric provider, present information discovered from the completed assessments and provide treatment recommendations.  The conference must serve as the basis for the first individual treatment plan, which must be written by the primary team member.


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(d) The client's psychiatric care provider, primary team member, and individual treatment team members shall assume responsibility for preparing the written narrative of the results from the psychiatric and social functioning history timeline and the comprehensive assessment.

 

(e) The primary team member and individual treatment team members shall be assigned by the team leader in collaboration with the psychiatric care provider by the time of the first treatment planning meeting or 30 days after admission, whichever occurs first.

 

(f) Individual treatment plans must be developed through the following treatment planning process:

 

(1) The individual treatment plan shall be developed in collaboration with the client and the client's preferred natural supports, and guardian, if applicable and appropriate.  The ACT team shall evaluate, together with each client, the client's needs, strengths, and preferences and develop the individual treatment plan collaboratively.  The ACT team shall make every effort to ensure that the client and the client's family and natural supports, with the client's consent, are in attendance at the treatment planning meeting, are involved in ongoing meetings related to treatment, and have the necessary supports to fully participate.  The client's participation in the development of the individual treatment plan shall be documented.

 

(2) The client and the ACT team shall work together to formulate and prioritize the issues, set goals, research approaches and interventions, and establish the plan.  The plan is individually tailored so that the treatment, rehabilitation, and support approaches and interventions achieve optimum symptom reduction, help fulfill the personal needs and aspirations of the client, take into account the cultural beliefs and realities of the individual, and improve all the aspects of psychosocial functioning that are important to the client.  The process supports strengths, rehabilitation, and recovery.

 

(3) Each client's individual treatment plan shall identify service needs, strengths and capacities, and barriers, and set specific and measurable short- and long-term goals for each service need.  The individual treatment plan must clearly specify the approaches and interventions necessary for the client to achieve the individual goals, when the interventions shall happen, and identify which ACT team member shall carry out the approaches and interventions.

 

(4) The primary team member and the individual treatment team, together with the client and the client's family and natural supports with the client's consent, are responsible for reviewing and rewriting the treatment goals and individual treatment plan whenever there is a major decision point in the client's course of treatment or at least every six months.

 

(5) The primary team member shall prepare a summary that thoroughly describes in writing the client's and the individual treatment team's evaluation of the client's progress and goal attainment, the effectiveness of the interventions, and the satisfaction with services since the last individual treatment plan.  The client's most recent diagnostic assessment must be included with the treatment plan summary.

 

(6) The individual treatment plan and review must be approved or acknowledged by the client, the primary team member, the team leader, the psychiatric care provider, and all individual treatment team members.  A copy of the approved individual treatment plan must be made available to the client.

 

Sec. 8.  Minnesota Statutes 2023 Supplement, section 256B.0622, subdivision 8, is amended to read:

 

Subd. 8.  Medical assistance payment for assertive community treatment and intensive residential treatment services.  (a) Payment for intensive residential treatment services and assertive community treatment in this section shall be based on one daily rate per provider inclusive of the following services received by an eligible client in a given calendar day:  all rehabilitative services under this section, staff travel time to provide rehabilitative services under this section, and nonresidential crisis stabilization services under section 256B.0624.


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(b) Except as indicated in paragraph (c), payment will not be made to more than one entity for each client for services provided under this section on a given day.  If services under this section are provided by a team that includes staff from more than one entity, the team must determine how to distribute the payment among the members.

 

(c) The commissioner shall determine one rate for each provider that will bill medical assistance for residential services under this section and one rate for each assertive community treatment provider.  If a single entity provides both services, one rate is established for the entity's residential services and another rate for the entity's nonresidential services under this section.  A provider is not eligible for payment under this section without authorization from the commissioner.  The commissioner shall develop rates using the following criteria:

 

(1) the provider's cost for services shall include direct services costs, other program costs, and other costs determined as follows:

 

(i) the direct services costs must be determined using actual costs of salaries, benefits, payroll taxes, and training of direct service staff and service-related transportation;

 

(ii) other program costs not included in item (i) must be determined as a specified percentage of the direct services costs as determined by item (i).  The percentage used shall be determined by the commissioner based upon the average of percentages that represent the relationship of other program costs to direct services costs among the entities that provide similar services;

 

(iii) physical plant costs calculated based on the percentage of space within the program that is entirely devoted to treatment and programming.  This does not include administrative or residential space;

 

(iv) assertive community treatment physical plant costs must be reimbursed as part of the costs described in item (ii); and

 

(v) subject to federal approval, up to an additional five percent of the total rate may be added to the program rate as a quality incentive based upon the entity meeting performance criteria specified by the commissioner;

 

(vi) for assertive community treatment, intensive residential treatment services, and adult residential crisis stabilization services, estimated additional direct care staffing compensation costs, subject to review by the commissioner; and

 

(vii) for intensive residential treatment services and adult residential crisis stabilization services, estimated new capital costs, subject to review by the commissioner;

 

(2) actual cost is defined as costs which are allowable, allocable, and reasonable, and consistent with federal reimbursement requirements under Code of Federal Regulations, title 48, chapter 1, part 31, relating to for-profit entities, and Office of Management and Budget Circular Number A-122, relating to nonprofit entities;

 

(3) the number of service units;

 

(4) the degree to which clients will receive services other than services under this section; and

 

(5) the costs of other services that will be separately reimbursed.

 

(d) The rate for intensive residential treatment services and assertive community treatment must exclude the medical assistance room and board rate, as defined in section 256B.056, subdivision 5d, and services not covered under this section, such as partial hospitalization, home care, and inpatient services.


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(e) Physician services that are not separately billed may be included in the rate to the extent that a psychiatrist, or other health care professional providing physician services within their scope of practice, is a member of the intensive residential treatment services treatment team.  Physician services, whether billed separately or included in the rate, may be delivered by telehealth.  For purposes of this paragraph, "telehealth" has the meaning given to "mental health telehealth" in section 256B.0625, subdivision 46, when telehealth is used to provide intensive residential treatment services.

 

(f) When services under this section are provided by an assertive community treatment provider, case management functions must be an integral part of the team.

 

(g) The rate for a provider must not exceed the rate charged by that provider for the same service to other payors.

 

(h) The rates for existing programs must be established prospectively based upon the expenditures and utilization over a prior 12-month period using the criteria established in paragraph (c).  The rates for new programs must be established based upon estimated expenditures and estimated utilization using the criteria established in paragraph (c).  For a rate that was set incorporating the provider's estimated direct care staffing compensation and new capital costs, the commissioner must reconcile the provider's rate with the provider's actual costs from the prior 12 months.

 

(i) Effective for the rate years beginning on and after January 1, 2024, rates for assertive community treatment, adult residential crisis stabilization services, and intensive residential treatment services must be annually adjusted for inflation using the Centers for Medicare and Medicaid Services Medicare Economic Index, as forecasted in the fourth quarter of the calendar year before the rate year.  The inflation adjustment must be based on the 12-month period from the midpoint of the previous rate year to the midpoint of the rate year for which the rate is being determined.

 

(j) Entities who discontinue providing services must be subject to a settle-up process whereby actual costs and reimbursement for the previous 12 months are compared.  In the event that the entity was paid more than the entity's actual costs plus any applicable performance-related funding due the provider, the excess payment must be reimbursed to the department.  If a provider's revenue is less than actual allowed costs due to lower utilization than projected, the commissioner may reimburse the provider to recover its actual allowable costs.  The resulting adjustments by the commissioner must be proportional to the percent of total units of service reimbursed by the commissioner and must reflect a difference of greater than five percent.

 

(k) A provider may request of the commissioner a review of any rate-setting decision made under this subdivision.

 

EFFECTIVE DATE.  This section is effective January 1, 2025, or upon federal approval, whichever is later.  The commissioner of human services shall notify the revisor of statutes when federal approval is obtained.

 

Sec. 9.  Minnesota Statutes 2022, section 256B.0623, subdivision 5, is amended to read:

 

Subd. 5.  Qualifications of provider staff.  Adult rehabilitative mental health services must be provided by qualified individual provider staff of a certified provider entity.  Individual provider staff must be qualified as:

 

(1) a mental health professional who is qualified according to section 245I.04, subdivision 2;

 

(2) a certified rehabilitation specialist who is qualified according to section 245I.04, subdivision 8;

 

(3) a clinical trainee who is qualified according to section 245I.04, subdivision 6;

 

(4) a mental health practitioner qualified according to section 245I.04, subdivision 4;

 

(5) a mental health certified peer specialist who is qualified according to section 245I.04, subdivision 10; or


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(6) a mental health rehabilitation worker who is qualified according to section 245I.04, subdivision 14.; or

 

(7) a licensed occupational therapist, as defined in section 148.6402, subdivision 14.

 

Sec. 10.  Minnesota Statutes 2022, section 256B.0624, subdivision 7, is amended to read:

 

Subd. 7.  Crisis stabilization services.  (a) Crisis stabilization services must be provided by qualified staff of a crisis stabilization services provider entity and must meet the following standards:

 

(1) a crisis treatment plan must be developed that meets the criteria in subdivision 11;

 

(2) staff must be qualified as defined in subdivision 8;

 

(3) crisis stabilization services must be delivered according to the crisis treatment plan and include face-to-face contact with the recipient by qualified staff for further assessment, help with referrals, updating of the crisis treatment plan, skills training, and collaboration with other service providers in the community; and

 

(4) if a provider delivers crisis stabilization services while the recipient is absent, the provider must document the reason for delivering services while the recipient is absent.

 

(b) If crisis stabilization services are provided in a supervised, licensed residential setting that serves no more than four adult residents, and one or more individuals are present at the setting to receive residential crisis stabilization, the residential staff must include, for at least eight hours per day, at least one mental health professional, clinical trainee, certified rehabilitation specialist, or mental health practitioner.  The commissioner shall establish a statewide per diem rate for crisis stabilization services provided under this paragraph to medical assistance enrollees.  The rate for a provider shall not exceed the rate charged by that provider for the same service to other payers.  Payment shall not be made to more than one entity for each individual for services provided under this paragraph on a given day.  The commissioner shall set rates prospectively for the annual rate period.  The commissioner shall require providers to submit annual cost reports on a uniform cost reporting form and shall use submitted cost reports to inform the rate-setting process.  The commissioner shall recalculate the statewide per diem every year.

 

(c) For crisis stabilization services provided in a supervised, licensed residential setting that serves more than four adult residents, the commissioner must set prospective rates for the annual rate period using the same methodology described under section 256B.0622, subdivision 8, for intensive residential treatment services.

 

EFFECTIVE DATE.  This section is effective January 1, 2025, or upon federal approval, whichever is later.  The commissioner of human services shall notify the revisor of statutes when federal approval is obtained.

 

Sec. 11.  Minnesota Statutes 2022, section 256B.0625, subdivision 20, is amended to read:

 

Subd. 20.  Mental health case management.  (a) To the extent authorized by rule of the state agency, medical assistance covers case management services to persons with serious and persistent mental illness and children with severe emotional disturbance.  Services provided under this section must meet the relevant standards in sections 245.461 to 245.4887, the Comprehensive Adult and Children's Mental Health Acts, Minnesota Rules, parts 9520.0900 to 9520.0926, and 9505.0322, excluding subpart 10.

 

(b) Entities meeting program standards set out in rules governing family community support services as defined in section 245.4871, subdivision 17, are eligible for medical assistance reimbursement for case management services for children with severe emotional disturbance when these services meet the program standards in Minnesota Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10.


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(c) Medical assistance and MinnesotaCare payment for mental health case management shall be made on a monthly basis.  In order to receive payment for an eligible child, the provider must document at least a face-to-face contact either in person or by interactive video that meets the requirements of subdivision 20b with the child, the child's parents, or the child's legal representative.  To receive payment for an eligible adult, the provider must document:

 

(1) at least a face-to-face contact with the adult or the adult's legal representative either in person or by interactive video that meets the requirements of subdivision 20b; or

 

(2) at least a telephone contact or contact via secure electronic message, if preferred by the adult client, with the adult or the adult's legal representative and document a face-to-face contact either in person or by interactive video that meets the requirements of subdivision 20b with the adult or the adult's legal representative within the preceding two months.

 

(d) Payment for mental health case management provided by county or state staff shall be based on the monthly rate methodology under section 256B.094, subdivision 6, paragraph (b), with separate rates calculated for child welfare and mental health, and within mental health, separate rates for children and adults.

 

(e) Payment for mental health case management provided by Indian health services or by agencies operated by Indian tribes may be made according to this section or other relevant federally approved rate setting methodology.

 

(f) Payment for mental health case management provided by vendors who contract with a county must be calculated in accordance with section 256B.076, subdivision 2.  Payment for mental health case management provided by vendors who contract with a Tribe must be based on a monthly rate negotiated by the Tribe.  The rate must not exceed the rate charged by the vendor for the same service to other payers.  If the service is provided by a team of contracted vendors, the team shall determine how to distribute the rate among its members.  No reimbursement received by contracted vendors shall be returned to the county or tribe, except to reimburse the county or tribe for advance funding provided by the county or tribe to the vendor.

 

(g) If the service is provided by a team which includes contracted vendors, tribal staff, and county or state staff, the costs for county or state staff participation in the team shall be included in the rate for county-provided services.  In this case, the contracted vendor, the tribal agency, and the county may each receive separate payment for services provided by each entity in the same month.  In order to prevent duplication of services, each entity must document, in the recipient's file, the need for team case management and a description of the roles of the team members.

 

(h) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs for mental health case management shall be provided by the recipient's county of responsibility, as defined in sections 256G.01 to 256G.12, from sources other than federal funds or funds used to match other federal funds.  If the service is provided by a tribal agency, the nonfederal share, if any, shall be provided by the recipient's tribe.  When this service is paid by the state without a federal share through fee-for-service, 50 percent of the cost shall be provided by the recipient's county of responsibility.

 

(i) Notwithstanding any administrative rule to the contrary, prepaid medical assistance and MinnesotaCare include mental health case management.  When the service is provided through prepaid capitation, the nonfederal share is paid by the state and the county pays no share.

 

(j) The commissioner may suspend, reduce, or terminate the reimbursement to a provider that does not meet the reporting or other requirements of this section.  The county of responsibility, as defined in sections 256G.01 to 256G.12, or, if applicable, the tribal agency, is responsible for any federal disallowances.  The county or tribe may share this responsibility with its contracted vendors.


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(k) The commissioner shall set aside a portion of the federal funds earned for county expenditures under this section to repay the special revenue maximization account under section 256.01, subdivision 2, paragraph (o).  The repayment is limited to:

 

(1) the costs of developing and implementing this section; and

 

(2) programming the information systems.

 

(l) Payments to counties and tribal agencies for case management expenditures under this section shall only be made from federal earnings from services provided under this section.  When this service is paid by the state without a federal share through fee-for-service, 50 percent of the cost shall be provided by the state.  Payments to county‑contracted vendors shall include the federal earnings, the state share, and the county share.

 

(m) Case management services under this subdivision do not include therapy, treatment, legal, or outreach services.

 

(n) If the recipient is a resident of a nursing facility, intermediate care facility, or hospital, and the recipient's institutional care is paid by medical assistance, payment for case management services under this subdivision is limited to the lesser of:

 

(1) the last 180 days of the recipient's residency in that facility and may not exceed more than six months in a calendar year; or

 

(2) the limits and conditions which apply to federal Medicaid funding for this service.

 

(o) Payment for case management services under this subdivision shall not duplicate payments made under other program authorities for the same purpose.

 

(p) If the recipient is receiving care in a hospital, nursing facility, or residential setting licensed under chapter 245A or 245D that is staffed 24 hours a day, seven days a week, mental health targeted case management services must actively support identification of community alternatives for the recipient and discharge planning.

 

Sec. 12.  REVISOR INSTRUCTION.

 

The revisor of statutes, in consultation with the Office of Senate Counsel, Research and Fiscal Analysis; the House Research Department; and the commissioner of human services, shall prepare legislation for the 2025 legislative session to recodify Minnesota Statutes, section 256B.0622, to move provisions related to assertive community treatment and intensive residential treatment services into separate sections of statute.  The revisor shall correct any cross-references made necessary by this recodification.

 

ARTICLE 3

CHILDREN'S MENTAL HEALTH SERVICES

 

Section 1.  Minnesota Statutes 2023 Supplement, section 245.4889, subdivision 1, is amended to read:

 

Subdivision 1.  Establishment and authority.  (a) The commissioner is authorized to make grants from available appropriations to assist:

 

(1) counties;

 

(2) Indian tribes;

 

(3) children's collaboratives under section 124D.23 or 245.493; or

 

(4) mental health service providers.


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(b) The following services are eligible for grants under this section:

 

(1) services to children with emotional disturbances as defined in section 245.4871, subdivision 15, and their families;

 

(2) transition services under section 245.4875, subdivision 8, for young adults under age 21 and their families;

 

(3) respite care services for children with emotional disturbances or severe emotional disturbances who are at risk of out-of-home placement or residential treatment or hospitalization, who are already in out-of-home placement in family foster settings as defined in chapter 245A and at risk of change in out-of-home placement or placement in a residential facility or other higher level of care, who have utilized crisis services or emergency room services, or who have experienced a loss of in-home staffing support.  Allowable activities and expenses for respite care services are defined under subdivision 4.  A child is not required to have case management services to receive respite care services.  Counties must work to provide access to regularly scheduled respite care;

 

(4) children's mental health crisis services;

 

(5) child-, youth-, and family-specific mobile response and stabilization services models;

 

(6) mental health services for people from cultural and ethnic minorities, including supervision of clinical trainees who are Black, indigenous, or people of color;

 

(7) children's mental health screening and follow-up diagnostic assessment and treatment;

 

(8) services to promote and develop the capacity of providers to use evidence-based practices in providing children's mental health services;

 

(9) school-linked mental health services under section 245.4901;

 

(10) building evidence-based mental health intervention capacity for children birth to age five;

 

(11) suicide prevention and counseling services that use text messaging statewide;

 

(12) mental health first aid training;

 

(13) training for parents, collaborative partners, and mental health providers on the impact of adverse childhood experiences and trauma and development of an interactive website to share information and strategies to promote resilience and prevent trauma;

 

(14) transition age services to develop or expand mental health treatment and supports for adolescents and young adults 26 years of age or younger;

 

(15) early childhood mental health consultation;

 

(16) evidence-based interventions for youth at risk of developing or experiencing a first episode of psychosis, and a public awareness campaign on the signs and symptoms of psychosis;

 

(17) psychiatric consultation for primary care practitioners; and

 

(18) providers to begin operations and meet program requirements when establishing a new children's mental health program.  These may be start-up grants.

 

(c) Services under paragraph (b) must be designed to help each child to function and remain with the child's family in the community and delivered consistent with the child's treatment plan.  Transition services to eligible young adults under this paragraph must be designed to foster independent living in the community.


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(d) As a condition of receiving grant funds, a grantee shall obtain all available third-party reimbursement sources, if applicable.

 

(e) The commissioner may establish and design a pilot program to expand the mobile response and stabilization services model for children, youth, and families.  The commissioner may use grant funding to consult with a qualified expert entity to assist in the formulation of measurable outcomes and explore and position the state to submit a Medicaid state plan amendment to scale the model statewide.

 

Sec. 2.  Minnesota Statutes 2023 Supplement, section 256B.0941, subdivision 3, is amended to read:

 

Subd. 3.  Per diem rate.  (a) The commissioner must establish one per diem rate per provider for psychiatric residential treatment facility services for individuals 21 years of age or younger.  The rate for a provider must not exceed the rate charged by that provider for the same service to other payers.  Payment must not be made to more than one entity for each individual for services provided under this section on a given day.  The commissioner must set rates prospectively for the annual rate period.  The commissioner must require providers to submit annual cost reports on a uniform cost reporting form and must use submitted cost reports to inform the rate-setting process.  The cost reporting must be done according to federal requirements for Medicare cost reports.

 

(b) The following are included in the rate:

 

(1) costs necessary for licensure and accreditation, meeting all staffing standards for participation, meeting all service standards for participation, meeting all requirements for active treatment, maintaining medical records, conducting utilization review, meeting inspection of care, and discharge planning.  The direct services costs must be determined using the actual cost of salaries, benefits, payroll taxes, and training of direct services staff and service‑related transportation; and

 

(2) payment for room and board provided by facilities meeting all accreditation and licensing requirements for participation.;

 

(3) estimated additional direct care staffing compensation costs, subject to review by the commissioner; and

 

(4) estimated new capital costs, subject to review by the commissioner.

 

(c) A facility may submit a claim for payment outside of the per diem for professional services arranged by and provided at the facility by an appropriately licensed professional who is enrolled as a provider with Minnesota health care programs.  Arranged services may be billed by either the facility or the licensed professional.  These services must be included in the individual plan of care and are subject to prior authorization.

 

(d) Medicaid must reimburse for concurrent services as approved by the commissioner to support continuity of care and successful discharge from the facility.  "Concurrent services" means services provided by another entity or provider while the individual is admitted to a psychiatric residential treatment facility.  Payment for concurrent services may be limited and these services are subject to prior authorization by the state's medical review agent.  Concurrent services may include targeted case management, assertive community treatment, clinical care consultation, team consultation, and treatment planning.

 

(e) Payment rates under this subdivision must not include the costs of providing the following services:

 

(1) educational services;

 

(2) acute medical care or specialty services for other medical conditions;

 

(3) dental services; and

 

(4) pharmacy drug costs.


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(f) For purposes of this section, "actual cost" means costs that are allowable, allocable, reasonable, and consistent with federal reimbursement requirements in Code of Federal Regulations, title 48, chapter 1, part 31, relating to for-profit entities, and the Office of Management and Budget Circular Number A-122, relating to nonprofit entities.

 

(g) The commissioner shall annually adjust psychiatric residential treatment facility services per diem rates to reflect the change in the Centers for Medicare and Medicaid Services Inpatient Psychiatric Facility Market Basket.  The commissioner shall use the indices as forecasted for the midpoint of the prior rate year to the midpoint of the current rate year.

 

(h) For a rate that was set incorporating the provider's estimated direct care staffing compensation and new capital costs under paragraph (b), the commissioner must reconcile the provider's rate with the provider's actual costs from the prior 12 months.

 

EFFECTIVE DATE.  This section is effective January 1, 2025, or upon federal approval, whichever is later.  The commissioner of human services shall notify the revisor of statutes when federal approval is obtained.

 

Sec. 3.  Minnesota Statutes 2022, section 256B.0943, subdivision 3, is amended to read:

 

Subd. 3.  Determination of client eligibility.  (a) Based on a client's needs identified in a crisis assessment, a hospital's medical history and presentation examination, or a brief diagnostic assessment under section 245I.10, subdivision 5, a license holder may provide a client with any combination of psychotherapy sessions, group psychotherapy sessions, family psychotherapy sessions, and family psychoeducation sessions.

 

(a)(b) A client's ongoing eligibility to receive children's therapeutic services and supports under this section shall be determined based on a standard diagnostic assessment by a mental health professional or a clinical trainee that is performed within one year before the initial start of service and updated as required under section 245I.10, subdivision 2.  The standard diagnostic assessment must:

 

(1) determine whether a child under age 18 has a diagnosis of emotional disturbance or, if the person is between the ages of 18 and 21, whether the person has a mental illness;

 

(2) document children's therapeutic services and supports as medically necessary to address an identified disability, functional impairment, and the individual client's needs and goals; and

 

(3) be used in the development of the individual treatment plan.

 

(b)(c) Notwithstanding paragraph (a)(b), a client may be determined to be eligible for up to five days of day treatment under this section based on a hospital's medical history and presentation examination of the client.

 

(c)(d) Children's therapeutic services and supports include development and rehabilitative services that support a child's developmental treatment needs.

 

Sec. 4.  Minnesota Statutes 2022, section 256B.0943, subdivision 12, is amended to read:

 

Subd. 12.  Excluded services.  The following services are not eligible for medical assistance payment as children's therapeutic services and supports:

 

(1) service components of children's therapeutic services and supports simultaneously provided by more than one provider entity unless prior authorization is obtained;

 

(2) treatment by multiple providers within the same agency at the same clock time;


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(3)(2) children's therapeutic services and supports provided in violation of medical assistance policy in Minnesota Rules, part 9505.0220;

 

(4)(3) mental health behavioral aide services provided by a personal care assistant who is not qualified as a mental health behavioral aide and employed by a certified children's therapeutic services and supports provider entity;

 

(5)(4) service components of CTSS that are the responsibility of a residential or program license holder, including foster care providers under the terms of a service agreement or administrative rules governing licensure; and

 

(6)(5) adjunctive activities that may be offered by a provider entity but are not otherwise covered by medical assistance, including:

 

(i) a service that is primarily recreation oriented or that is provided in a setting that is not medically supervised.  This includes sports activities, exercise groups, activities such as craft hours, leisure time, social hours, meal or snack time, trips to community activities, and tours;

 

(ii) a social or educational service that does not have or cannot reasonably be expected to have a therapeutic outcome related to the client's emotional disturbance;

 

(iii) prevention or education programs provided to the community; and

 

(iv) treatment for clients with primary diagnoses of alcohol or other drug abuse.

 

Sec. 5.  Minnesota Statutes 2022, section 256B.0947, subdivision 5, is amended to read:

 

Subd. 5.  Standards for intensive nonresidential rehabilitative providers.  (a) Services must meet the standards in this section and chapter 245I as required in section 245I.011, subdivision 5.

 

(b) The treatment team must have specialized training in providing services to the specific age group of youth that the team serves.  An individual treatment team must serve youth who are:  (1) at least eight years of age or older and under 16 years of age, or (2) at least 14 years of age or older and under 21 years of age.

 

(c) The treatment team for intensive nonresidential rehabilitative mental health services comprises both permanently employed core team members and client-specific team members as follows:

 

(1) Based on professional qualifications and client needs, clinically qualified core team members are assigned on a rotating basis as the client's lead worker to coordinate a client's care.  The core team must comprise at least four full-time equivalent direct care staff and must minimally include:

 

(i) a mental health professional who serves as team leader to provide administrative direction and treatment supervision to the team;

 

(ii) an advanced-practice registered nurse with certification in psychiatric or mental health care or a board‑certified child and adolescent psychiatrist, either of which must be credentialed to prescribe medications;

 

(iii) a licensed alcohol and drug counselor who is also trained in mental health interventions; and

 

(iv) (iii) a mental health certified peer specialist who is qualified according to section 245I.04, subdivision 10, and is also a former children's mental health consumer.; and

 

(iv) a co-occurring disorder specialist who meets the requirements under section 256B.0622, subdivision 7a, paragraph (a), clause (4), who will provide or facilitate the provision of co-occurring disorder treatment to clients.


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(2) The core team may also include any of the following:

 

(i) additional mental health professionals;

 

(ii) a vocational specialist;

 

(iii) an educational specialist with knowledge and experience working with youth regarding special education requirements and goals, special education plans, and coordination of educational activities with health care activities;

 

(iv) a child and adolescent psychiatrist who may be retained on a consultant basis;

 

(v) a clinical trainee qualified according to section 245I.04, subdivision 6;

 

(vi) a mental health practitioner qualified according to section 245I.04, subdivision 4;

 

(vii) a case management service provider, as defined in section 245.4871, subdivision 4;

 

(viii) a housing access specialist; and

 

(ix) a family peer specialist as defined in subdivision 2, paragraph (j).

 

(3) A treatment team may include, in addition to those in clause (1) or (2), ad hoc members not employed by the team who consult on a specific client and who must accept overall clinical direction from the treatment team for the duration of the client's placement with the treatment team and must be paid by the provider agency at the rate for a typical session by that provider with that client or at a rate negotiated with the client-specific member.  Client‑specific treatment team members may include:

 

(i) the mental health professional treating the client prior to placement with the treatment team;

 

(ii) the client's current substance use counselor, if applicable;

 

(iii) a lead member of the client's individualized education program team or school-based mental health provider, if applicable;

 

(iv) a representative from the client's health care home or primary care clinic, as needed to ensure integration of medical and behavioral health care;

 

(v) the client's probation officer or other juvenile justice representative, if applicable; and

 

(vi) the client's current vocational or employment counselor, if applicable.

 

(d) The treatment supervisor shall be an active member of the treatment team and shall function as a practicing clinician at least on a part-time basis.  The treatment team shall meet with the treatment supervisor at least weekly to discuss recipients' progress and make rapid adjustments to meet recipients' needs.  The team meeting must include client-specific case reviews and general treatment discussions among team members.  Client-specific case reviews and planning must be documented in the individual client's treatment record.

 

(e) The staffing ratio must not exceed ten clients to one full-time equivalent treatment team position.

 

(f) The treatment team shall serve no more than 80 clients at any one time.  Should local demand exceed the team's capacity, an additional team must be established rather than exceed this limit.


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(g) Nonclinical staff shall have prompt access in person or by telephone to a mental health practitioner, clinical trainee, or mental health professional.  The provider shall have the capacity to promptly and appropriately respond to emergent needs and make any necessary staffing adjustments to ensure the health and safety of clients.

 

(h) The intensive nonresidential rehabilitative mental health services provider shall participate in evaluation of the assertive community treatment for youth (Youth ACT) model as conducted by the commissioner, including the collection and reporting of data and the reporting of performance measures as specified by contract with the commissioner.

 

(i) A regional treatment team may serve multiple counties.

 

Sec. 6.  Minnesota Statutes 2023 Supplement, section 256B.0947, subdivision 7, is amended to read:

 

Subd. 7.  Medical assistance payment and rate setting.  (a) Payment for services in this section must be based on one daily encounter rate per provider inclusive of the following services received by an eligible client in a given calendar day:  all rehabilitative services, supports, and ancillary activities under this section, staff travel time to provide rehabilitative services under this section, and crisis response services under section 256B.0624.

 

(b) Payment must not be made to more than one entity for each client for services provided under this section on a given day.  If services under this section are provided by a team that includes staff from more than one entity, the team shall determine how to distribute the payment among the members.

 

(c) The commissioner shall establish regional cost-based rates for entities that will bill medical assistance for nonresidential intensive rehabilitative mental health services.  In developing these rates, the commissioner shall consider:

 

(1) the cost for similar services in the health care trade area;

 

(2) actual costs incurred by entities providing the services;

 

(3) the intensity and frequency of services to be provided to each client;

 

(4) the degree to which clients will receive services other than services under this section; and

 

(5) the costs of other services that will be separately reimbursed.; and

 

(6) the estimated additional direct care staffing compensation costs for the next rate year as reported by entities providing the service, subject to review by the commissioner.

 

(d) The rate for a provider must not exceed the rate charged by that provider for the same service to other payers.

 

(e) Effective for the rate years beginning on and after January 1, 2024, rates must be annually adjusted for inflation using the Centers for Medicare and Medicaid Services Medicare Economic Index, as forecasted in the fourth quarter of the calendar year before the rate year.  The inflation adjustment must be based on the 12-month period from the midpoint of the previous rate year to the midpoint of the rate year for which the rate is being determined.

 

(f) For a rate that was set incorporating the provider's estimated direct care staffing compensation and new capital costs under paragraph (c), the commissioner must reconcile the provider's rate with the provider's actual costs from the prior 12 months.

 

EFFECTIVE DATE.  This section is effective January 1, 2025, or upon federal approval, whichever is later.  The commissioner of human services shall notify the revisor of statutes when federal approval is obtained.


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Sec. 7.  DIRECTION TO COMMISSIONER OF HUMAN SERVICES; RESPITE CARE ACCESS.

 

The commissioner of human services, in coordination with stakeholders, must develop proposals by December 31, 2025, to increase access to licensed respite foster care homes that take into consideration the new rule directing title IV-E agencies to adopt one set of licensing or approval standards for all relative or kinship foster family homes that is different from the licensing or approval standards used for nonrelative or nonkinship foster family homes, as provided by the Federal Register, volume 88, page 66700. 

 

Sec. 8.  DIRECTION TO COMMISSIONER; MEDICAL ASSISTANCE CHILDREN'S RESIDENTIAL MENTAL HEALTH CRISIS STABILIZATION.

 

(a) The commissioner of human services must consult with providers, advocates, Tribal Nations, counties, people with lived experience as or with a child in a mental health crisis, and other interested community members to develop a covered benefit under medical assistance to provide residential mental health crisis stabilization for children.  The benefit must:

 

(1) consist of evidence-based promising practices or culturally responsive treatment services for children under the age of 21 experiencing a mental health crisis;

 

(2) embody an integrative care model that supports individuals experiencing a mental health crisis who may also be experiencing co-occurring conditions;

 

(3) qualify for federal financial participation; and

 

(4) include services that support children and families, including but not limited to: 

 

(i) an assessment of the child's immediate needs and factors that led to the mental health crisis;

 

(ii) individualized care to address immediate needs and restore the child to a precrisis level of functioning;

 

(iii) 24-hour on-site staff and assistance;

 

(iv) supportive counseling and clinical services;

 

(v) skills training and positive support services, as identified in the child's individual crisis stabilization plan;

 

(vi) referrals to other service providers in the community as needed and to support the child's transition from residential crisis stabilization services;

 

(vii) development of an individualized and culturally responsive crisis response action plan; and

 

(viii) assistance to access and store medication. 

 

(b) When developing the new benefit, the commissioner must make recommendations for providers to be reimbursed for room and board. 

 

(c) The commissioner must consult with or contract with rate-setting experts to develop a prospective data-based rate methodology for the children's residential mental health crisis stabilization benefit. 


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(d) No later than October 1, 2025, the commissioner must submit to the chairs and ranking minority members of the legislative committees with jurisdiction over human services policy and finance a report detailing for the children's residential mental health crisis stabilization benefit the proposed: 

 

(1) eligibility, clinical and service requirements, provider standards, licensing requirements, and reimbursement rates;

 

(2) process for community engagement, community input, and crisis models studied in other states;

 

(3) deadline for the commissioner to submit a state plan amendment to the Centers for Medicare and Medicaid Services; and

 

(4) draft legislation with the statutory changes necessary to implement the benefit.

 

EFFECTIVE DATE.  This section is effective July 1, 2024.

 

Sec. 9.  DIRECTION TO COMMISSIONER; CHILDREN'S RESIDENTIAL FACILITY RULEMAKING.

 

(a) The commissioner of human services must use the expedited rulemaking process and comply with all requirements under Minnesota Statutes, section 14.389, to adopt the amendments required under this section.

 

(b) The commissioner of human services must amend Minnesota Rules, chapter 2960, to replace all instances of the term "clinical supervision" with the term "treatment supervision."

 

(c) The commissioner of human services must amend Minnesota Rules, part 2960.0020, to replace all instances of the term "clinical supervisor" with the term "treatment supervisor."

 

(d) The commissioner of human services must amend Minnesota Rules, part 2960.0020, to add the definition of "licensed prescriber" to mean an individual who is authorized to prescribe legend drugs under Minnesota Statutes, section 151.37.

 

(e) The commissioner of human services must amend Minnesota Rules, parts 2960.0020 to 2960.0710, to replace all instances of "physician" with "licensed prescriber."

 

(f) The commissioner of human services must amend Minnesota Rules, part 2960.0620, subpart 1, item B, to allow a license holder to meet requirements by obtaining a copy of the resident's medication management or evaluation treatment plan from the licensed prescriber.

 

(g) The commissioner of human services must amend Minnesota Rules, part 2960.0620, subpart 5, to:

 

(1) remove the requirement for the license holder to conduct a psychotropic medication review;

 

(2) require the license holder to document treatment coordination with the licensed prescriber; and

 

(3) strike items A to D, and remove the requirements for the license holder to consider and document items A to D at a quarterly review and provide the information in items A and D to the licensed prescriber for review.

 

(h) The commissioner of human services must amend Minnesota Rules, part 2960.0620, subpart 2, to strike all of the current language and insert the following language:  "If a resident is prescribed a psychotropic medication, the license holder must monitor for side effects of the medication.  Within 24 hours of admission, a registered nurse or licensed prescriber must assess the resident for and document any current side effects and document instructions for


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how frequently the license holder must monitor for side effects of the psychotropic medications the resident is taking.  When a resident begins taking a new psychotropic medication or stops taking a psychotropic medication, the license holder must monitor for side effects according to the instructions of the registered nurse or licensed prescriber.  The license holder must monitor for side effects using standardized checklists, rating scales, or other tools according to the instructions of the registered nurse or licensed prescriber.  The license holder must provide the results of the checklist, rating scale, or other tool to the licensed prescriber for review."

 

(i) The commissioner of human services must amend Minnesota Rules, part 2960.0630, subpart 2, to allow license holders to use the ancillary meeting process under Minnesota Statutes, section 245I.23, subdivision 14, paragraph (c), if a staff member cannot participate in a weekly clinical supervision session.

 

(j) The commissioner of human services must amend Minnesota Rules, part 2960.0630, subpart 3, to strike item D.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 10.  REPEALER.

 

Minnesota Rules, part 2960.0620, subpart 3, is repealed.

 

ARTICLE 4

SUBSTANCE USE DISORDER SERVICES

 

Section 1.  [144.2256] CERTIFIED BIRTH RECORD FOR PERSONS ELIGIBLE FOR MEDICAL ASSISTANCE.

 

Subdivision 1.  Application; birth record.  A subject of a birth record who is eligible for medical assistance according to chapter 256B and who has been treated for a substance use disorder within the last 12 months may apply to the state registrar or a local issuance office for a certified birth record according to this section.  The state registrar or local issuance office shall issue a certified birth record, or statement of no vital record found, to a subject of a birth record who submits: 

 

(1) a completed application signed by the subject of the birth record;

 

(2) a statement of eligibility from an employee of a human services agency or treatment provider licensed under chapter 245G that receives public funding to provide services to people with substance use disorders.  The statement must verify the subject of the birth record is eligible for medical assistance according to chapter 256B and has been treated for a substance use disorder in the last 12 months.  The statement must comply with the requirements in subdivision 2; and

 

(3) identification in the form of: 

 

(i) a document of identity listed in Minnesota Rules, part 4601.2600, subpart 8, or, at the discretion of the state registrar or local issuance office, Minnesota Rules, part 4601.2600, subpart 9;

 

(ii) a statement that complies with Minnesota Rules, part 4601.2600, subparts 6 and 7; or

 

(iii) a statement of identity provided by the employee of a human services agency or treatment provider that receives public funding to provide services to people with substance use disorders who verified eligibility.  The statement must comply with Minnesota Rules, part 4601.2600, subpart 7.


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Subd. 2.  Statement of eligibility.  A statement of eligibility must be from an employee of a human services agency or treatment provider that receives public funding to provide services to people with substance use disorders and must verify the subject of the birth record is eligible for medical assistance according to chapter 256B and has been treated for a substance use disorder within the last 12 months.  The statement of eligibility must include: 

 

(1) the employee's first name, middle name, if any, and last name; home or business address; telephone number, if any; and email address, if any;

 

(2) the name of the human services agency or treatment provider that receives public funding to provide services to people with substance use disorders that employs the person making the eligibility statement;

 

(3) the first name, middle name, if any, and last name of the subject of the birth record;

 

(4) a copy of the individual's employment identification or verification of employment linking the employee to the human services agency or treatment provider that provided treatment; and

 

(5) a statement specifying the relationship of the individual providing the eligibility statement to the subject of the birth record.

 

Subd. 3.  Data practices.  Data listed under subdivision 1, clauses (2) and (3), are private data on individuals.

 

Sec. 2.  Minnesota Statutes 2022, section 144.226, is amended by adding a subdivision to read:

 

Subd. 9.  Birth record fees waived for persons treated for substance use disorders.  A subject of a birth record who is eligible for medical assistance according to chapter 256B and who has been treated for a substance use disorder within the last 12 months must not be charged any of the fees specified in this section for a certified birth record or statement of no vital record found under section 144.2256.

 

EFFECTIVE DATE.  This section is effective January 1, 2024.

 

Sec. 3.  Minnesota Statutes 2022, section 148F.025, subdivision 2, is amended to read:

 

Subd. 2.  Education requirements for licensure.  An applicant for licensure must submit evidence satisfactory to the board that the applicant has:

 

(1) received a bachelor's or master's degree from an accredited school or educational program; and

 

(2) received 18 semester credits or 270 clock hours of academic course work and 880 clock hours of supervised alcohol and drug counseling practicum from an accredited school or education program.  The course work and practicum do not have to be part of the bachelor's degree earned under clause (1).  The academic course work must be in the following areas:

 

(i) an overview of the transdisciplinary foundations of alcohol and drug counseling, including theories of chemical dependency, the continuum of care, and the process of change;

 

(ii) pharmacology of substance abuse disorders and the dynamics of addiction, including substance use disorder treatment with medications for opioid use disorder;

 

(iii) professional and ethical responsibilities;

 

(iv) multicultural aspects of chemical dependency;

 

(v) co-occurring disorders; and

 

(vi) the core functions defined in section 148F.01, subdivision 10.


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Sec. 4.  Minnesota Statutes 2022, section 245G.01, is amended by adding a subdivision to read:

 

Subd. 8a.  Clinical trainee.  "Clinical trainee" means a staff person who is qualified according to section 245I.04, subdivision 6, working under the supervision of a mental health professional.

 

Sec. 5.  Minnesota Statutes 2022, section 245G.01, is amended by adding a subdivision to read:

 

Subd. 17a.  Mental health professional.  "Mental health professional" means a staff person who is qualified under section 245I.04, subdivision 2.

 

Sec. 6.  Minnesota Statutes 2022, section 245G.01, is amended by adding a subdivision to read:

 

Subd. 17b.  Qualified professional.  "Qualified professional" means a licensed alcohol and drug counselor; mental health professional; registered nurse who has completed at least 12 hours of training in diagnosing and treating addiction, co-occurring disorders, or substance use disorder; or clinical trainee working under the supervision of a mental health professional.

 

Sec. 7.  Minnesota Statutes 2023 Supplement, section 245G.05, subdivision 1, is amended to read:

 

Subdivision 1.  Comprehensive assessment.  A comprehensive assessment of the client's substance use disorder must be administered face-to-face by an alcohol and drug counselor a qualified professional within five calendar days from the day of service initiation for a residential program or by the end of the fifth day on which a treatment service is provided in a nonresidential program.  The number of days to complete the comprehensive assessment excludes the day of service initiation.  If the comprehensive assessment is not completed within the required time frame, the person-centered reason for the delay and the planned completion date must be documented in the client's file.  The comprehensive assessment is complete upon a qualified staff member's professional's dated signature.  If the client received a comprehensive assessment that authorized the treatment service, an alcohol and drug counselor a qualified professional may use the comprehensive assessment for requirements of this subdivision but must document a review of the comprehensive assessment and update the comprehensive assessment as clinically necessary to ensure compliance with this subdivision within applicable timelines.  An alcohol and drug counselor must sign and date the comprehensive assessment review and update.

 

Sec. 8.  Minnesota Statutes 2023 Supplement, section 245G.06, subdivision 1, is amended to read:

 

Subdivision 1.  General.  Each client must have a person-centered individual treatment plan developed by an alcohol and drug counselor a qualified professional within ten days from the day of service initiation for a residential program, by the end of the tenth day on which a treatment session has been provided from the day of service initiation for a client in a nonresidential program, not to exceed 30 days.  Opioid treatment programs must complete the individual treatment plan within 21 days from the day of service initiation.  The number of days to complete the individual treatment plan excludes the day of service initiation.  The individual treatment plan must be signed by the client and the alcohol and drug counselor qualified professional and document the client's involvement in the development of the plan.  The individual treatment plan is developed upon the qualified staff member's professional's dated signature.  Treatment planning must include ongoing assessment of client needs.  An individual treatment plan must be updated based on new information gathered about the client's condition, the client's level of participation, and on whether methods identified have the intended effect.  A change to the plan must be signed by the client and the alcohol and drug counselor qualified professional.  If the client chooses to have family or others involved in treatment services, the client's individual treatment plan must include how the family or others will be involved in the client's treatment.  If a client is receiving treatment services or an assessment via telehealth and the alcohol and drug counselor qualified professional documents the reason the client's signature cannot be obtained, the alcohol and drug counselor qualified professional may document the client's verbal approval or electronic written approval of the treatment plan or change to the treatment plan in lieu of the client's signature.


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Sec. 9.  Minnesota Statutes 2023 Supplement, section 245G.06, subdivision 3, is amended to read:

 

Subd. 3.  Treatment plan review.  A treatment plan review must be completed by the alcohol and drug counselor qualified professional responsible for the client's treatment plan.  The review must indicate the span of time covered by the review and must:

 

(1) document client goals addressed since the last treatment plan review and whether the identified methods continue to be effective;

 

(2) document monitoring of any physical and mental health problems and include toxicology results for alcohol and substance use, when available;

 

(3) document the participation of others involved in the individual's treatment planning, including when services are offered to the client's family or significant others;

 

(4) if changes to the treatment plan are determined to be necessary, document staff recommendations for changes in the methods identified in the treatment plan and whether the client agrees with the change;

 

(5) include a review and evaluation of the individual abuse prevention plan according to section 245A.65; and

 

(6) document any referrals made since the previous treatment plan review.

 

Sec. 10.  Minnesota Statutes 2023 Supplement, section 245G.06, subdivision 3a, is amended to read:

 

Subd. 3a.  Frequency of treatment plan reviews.  (a) A license holder must ensure that the alcohol and drug counselor qualified professional responsible for a client's treatment plan completes and documents a treatment plan review that meets the requirements of subdivision 3 in each client's file, according to the frequencies required in this subdivision.  All ASAM levels referred to in this chapter are those described in section 254B.19, subdivision 1.

 

(b) For a client receiving residential ASAM level 3.3 or 3.5 high-intensity services or residential hospital-based services, a treatment plan review must be completed once every 14 days.

 

(c) For a client receiving residential ASAM level 3.1 low-intensity services or any other residential level not listed in paragraph (b), a treatment plan review must be completed once every 30 days.

 

(d) For a client receiving nonresidential ASAM level 2.5 partial hospitalization services, a treatment plan review must be completed once every 14 days.

 

(e) For a client receiving nonresidential ASAM level 1.0 outpatient or 2.1 intensive outpatient services or any other nonresidential level not included in paragraph (d), a treatment plan review must be completed once every 30 days.

 

(f) For a client receiving nonresidential opioid treatment program services according to section 245G.22:

 

(1) a treatment plan review must be completed weekly for the ten weeks following completion of the treatment plan; and

 

(2) monthly thereafter.

 

Treatment plan reviews must be completed more frequently when clinical needs warrant.

 

(g) Notwithstanding paragraphs (e) and (f), clause (2), for a client in a nonresidential program with a treatment plan that clearly indicates less than five hours of skilled treatment services will be provided to the client each month, a treatment plan review must be completed once every 90 days.  Treatment plan reviews must be completed more frequently when clinical needs warrant.


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Sec. 11.  Minnesota Statutes 2023 Supplement, section 245G.06, subdivision 4, is amended to read:

 

Subd. 4.  Service discharge summary.  (a) An alcohol and drug counselor A qualified professional must write a service discharge summary for each client.  The service discharge summary must be completed within five days of the client's service termination.  A copy of the client's service discharge summary must be provided to the client upon the client's request.

 

(b) The service discharge summary must be recorded in the six dimensions listed in section 254B.04, subdivision&n