STATE
OF MINNESOTA
Journal of the House
NINETY-FOURTH
SESSION - 2026
_____________________
SEVENTY-SECOND
LEGISLATIVE DAY
Saint Paul, Minnesota, Monday, May 11, 2026
The House of Representatives convened at
11:00 a.m. and was called to order by Sandra Feist, Speaker pro tempore.
Prayer was offered by the Reverend Jeff
Ozanne, Faith United Methodist Church, St. Anthony, Minnesota.
The members of the House gave the pledge
of allegiance to the flag of the United States of America.
The roll was called and the following
members were present:
Acomb
Agbaje
Allen
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bahner
Bakeberg
Baker
Bennett
Berg
Bierman
Bliss
Buck
Burkel
Carroll
Cha
Clardy
Coulter
Curran
Davids
Davis
Dotseth
Duran
Elkins
Engen
Falconer
Feist
Finke
Fischer
Fogelman
Franson
Frazier
Frederick
Freiberg
Gander
Gillman
Gomez
Gordon
Gottfried
Greene
Greenman
Hanson, J.
Harder
Heintzeman
Hicks
Hill
Hollins
Howard
Hudson
Huot
Hussein
Igo
Jacob
Johnson, P.
Jones
Jordan
Joy
Keeler
Klevorn
Knudsen
Koegel
Kotyza-Witthuhn
Kozlowski
Koznick
Kraft
Kresha
Lawrence
Lee, F.
Lee, K.
Lee, X.
Liebling
Lillie
Long
Luger-Nikolai
Mahamoud
McDonald
Mekeland
Moller
Momanyi-Hiltsley
Mueller
Murphy
Nash
Nelson
Niska
Noor
Norris
Novotny
O'Driscoll
Olson
Pérez-Vega
Pinto
Pursell
Quam
Rarick
Rehm
Rehrauer
Repinski
Reyer
Roach
Robbins
Rymer
Schomacker
Schultz
Scott
Sencer-Mura
Sexton
Skraba
Smith
Stephenson
Stier
Swedzinski
Tabke
Torkelson
Van Binsbergen
Vang
Virnig
Warwas
West
Wiener
Witte
Wolgamott
Xiong
Youakim
Spk. Demuth
A quorum was present.
Hansen, R., was excused until 12:20 p.m. Johnson, W.; Perryman; Schwartz and
Zeleznikar were excused until 12:30 p.m.
Dippel was excused until 12:40 p.m.
Nadeau was excused until 12:50 p.m.
Myers was excused until 4:40 p.m.
Pursuant to Rule 10.05, relating to Remote
House Operations, the DFL Caucus Leader permitted the following members to vote
via remote means: Jones and
Momanyi-Hiltsley.
The Speaker assumed the Chair.
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.
REPORTS OF CHIEF CLERK
S. F. No. 2373 and
H. F. No. 2441, which had been referred to the Chief Clerk for
comparison, were examined and found to be not identical.
Pinto moved that
S. F. No. 2373 be substituted for H. F. No. 2441
and that the House File be indefinitely postponed. The motion prevailed.
S. F. No. 4476 and
H. F. No. 4338, which had been referred to the Chief Clerk for
comparison, were examined and found to be not identical.
Schomacker moved that
S. F. No. 4476 be substituted for H. F. No. 4338
and that the House File be indefinitely postponed. The motion prevailed.
REPORTS OF STANDING COMMITTEES AND
DIVISIONS
Frazier and Torkelson from the Committee on Ways and Means to which was referred:
H. F. No. 4074, A bill for an act relating to retirement; modifying expense apportionment among funds managed by the State Board of Investment; making administrative changes to statutes governing the retirement plans administered by the Minnesota State Retirement System; clarifying that correctional employees remain in the correctional employees retirement plan while working for a labor organization; making conforming changes to retirement annuity application procedures; modifying enrollment procedures in the state fire marshals subplan; clarifying that the correctional plan membership committee is not subject to the open meeting law and agency appointment and registration requirements; allowing current deputy fire marshals to elect coverage by the state fire marshals subplan; amending Minnesota Statutes 2024, sections 11A.07, subdivision 5; 352.021, subdivision 2; 352.029, subdivisions 1, 2, 2a; 352.115, subdivisions 7a, 8, 9; 352.87, subdivisions 1, 2; Minnesota Statutes 2025 Supplement, sections 11A.04; 11A.07, subdivision 4; 352.029, subdivision 3; 352.905, by adding a subdivision; 352.907, by adding a subdivision; Laws 2025, chapter 39, article 1, section 8; repealing Minnesota Statutes 2024, section 352.87, subdivision 8.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"ARTICLE 1
MINNESOTA STATE RETIREMENT SYSTEM
Section 1. Minnesota Statutes 2024, section 352.021, subdivision 2, is amended to read:
Subd. 2. State employees covered. Every person who becomes a state employee as defined in section 352.01 is covered by the general state employees retirement plan, unless the state employee is covered by the correctional employees retirement plan under section 352.905. Acceptance of state employment or continuance in state service is deemed to be consent by the state employee to have deductions made from salary for deposit to the credit of the account of the state employee in the retirement fund of the plan that provides retirement coverage for the state employee.
Subdivision 1. Qualifications. (a) Unless already
specifically included under section 352.01, subdivision 2a, or unless
specifically excluded under section 352.01, subdivision 2b, a state employee covered
by the general state employees retirement plan who is on leave of absence
without pay to provide service as an employee or officer of a labor
organization that is an exclusive bargaining agent representing state employees
may elect under subdivision 2 to be covered by the general state employees
retirement plan of the Minnesota State Retirement System for service
with the labor organization, subject to the limitations set forth in
subdivisions 2a and 2b.
(b) Unless specifically
included under section 352.01, subdivision 2a, or unless specifically excluded
under section 352.01, subdivision 2b, a state employee covered by the
correctional employees retirement plan who is on leave of absence without pay
to provide service as an employee or officer of a labor organization that is an
exclusive bargaining agent representing state employees may elect under
subdivision 2 to be covered by the correctional employees retirement plan for
service with the labor organization, subject to the limitations set forth in
subdivisions 2a and 2b.
Sec. 3. Minnesota Statutes 2024, section 352.029, subdivision 2, is amended to read:
Subd. 2. Election. A person described in subdivision 1 is
covered by the system general employees retirement plan under
subdivision 1, paragraph (a), or the correctional employees retirement plan
under subdivision 1, paragraph (b), if the person delivers a written
election to be covered is delivered to the executive director within 90
days of being employed by the labor organization, or within 90 days of
starting the first leave of absence with an exclusive bargaining agent to
provide service as an employee or officer of a labor organization,
whichever is later.
Sec. 4. Minnesota Statutes 2024, section 352.029, subdivision 2a, is amended to read:
Subd. 2a. Limitations
on salary for benefits and contributions.
(a) The covered salary for a labor organization employee who is a
member under section 352.01, subdivision 2a, paragraph (a), or who qualifies
for membership under this section or section 352.75 is limited to the
lesser of:
(1) the employee's actual
salary as defined under section 352.01, subdivision 13; or
(2) 75 percent of the salary of the governor as set under section 15A.082.
(b) The limited covered
salary determined under this subdivision must be used in determining employee,
employer, and supplemental employer additional contributions
under section sections 352.04, subdivisions 2 and 3, and
352.92 and in determining retirement annuities and other benefits under
this chapter and chapter 356.
Sec. 5. Minnesota Statutes 2025 Supplement, section 352.029, subdivision 3, is amended to read:
Subd. 3. Contributions. (a) The employee and employer
contributions required by section 352.04, for employees covered by
the general state employees retirement plan or by section 352.92 for
employees covered by section 352.905, the correctional employees
retirement plan are the obligation of the employee who is a member under
section 352.01, subdivision 2a, paragraph (a), or who chooses coverage
under this section. However, the
employing labor organization may pay the employer contributions to the
general state employees retirement fund as required by section 352.04 for
employees covered by the general state employees retirement plan or to the
correctional employees retirement fund as required by section 352.92 for
employees covered by the correctional employees retirement plan.
(b)
Contributions made by the employee must be made by salary deduction. The employing labor organization shall pay
all contributions to the system as required by section 352.04, or by section
352.92 for employees covered by section 352.905.
Sec. 6. Minnesota Statutes 2024, section 352.115, subdivision 7a, is amended to read:
Subd. 7a. Application
procedure. (a) The filing of an
application for an annuity, refund, disability benefit, survivor benefit, death
benefit, or other monthly benefit authorized by this chapter or chapter
3A, 352B, 352D, or 490 must comply with this subdivision.
(b) Filing of an
application under paragraph (a) is not complete until is effective on
the date an original application and supporting documents are is
received in an office of the system or received by a person authorized by the
director. An original application may
not be an electronic copy or facsimile copy and if received in an office of the
system, must be delivered by personal service or mail.
(c) In this subdivision,
To complete the application, supporting documents must be received in an
office of the system or received by a person authorized by the director no
later than 60 days after filing the application. Supporting documents are not required to be
original documents except as determined by the director."
Supporting documents" are:
(1) documents sufficient to verify birth date;
(2) documents sufficient to verify marital status or establish the terms of a divorce, if applicable; and
(3) the spousal acknowledgment required by section 356.46, subdivision 3, paragraph (b).
Supporting documents are not required to be
original documents except as determined by the director.
Sec. 7. Minnesota Statutes 2024, section 352.115, subdivision 8, is amended to read:
Subd. 8. Accrual
of annuity. (a) The
application for an annuity must not be made filed more than 60
days before the time date the state employee or former state
employee elects to begin collecting a retirement annuity.
(b) If the director determines an applicant for annuity has fulfilled the legal requirements for an annuity, the director shall authorize the annuity payment in accordance with this chapter and payment must be made as authorized.
(c) An annuity shall begin to accrue no earlier than 180 days before the date the application is filed with the director, but not before the day following the termination of state service or before the day the employee is eligible to retire by reason of both age and service requirements.
(d) The retirement annuity shall cease with the last payment which had accrued during the lifetime of the retired employee unless an optional annuity provided in section 352.116, subdivision 3, had been selected and had become payable. The joint and last survivor annuity shall cease with the last payment received by the survivor during the lifetime of the survivor. If a retired employee had not selected an optional annuity, or a survivor annuity is not payable under the option, and a spouse survives, the spouse is entitled only to the annuity for the calendar month in which the retired employee died. If an optional annuity is payable after the death of the retired employee, the survivor is entitled to the annuity for the calendar month in which the retired employee died.
Subd. 9. Annuities payable monthly. All annuities, and disability benefits authorized by this chapter, must be paid in equal monthly installments and must not be increased, decreased, or revoked except as provided in this chapter or chapter 356.
Sec. 9. Minnesota Statutes 2024, section 352.87, subdivision 1, is amended to read:
Subdivision 1. Eligibility. (a) A member of the general state
employees retirement plan who is employed by the Department of Public
Safety, State Fire Marshal Division, as a deputy state fire marshal, fire/arson
investigator, who elects special benefit coverage under subdivision 8, is
entitled to retirement benefits or disability benefits, as applicable,
as stated in this section for eligible service under this section rendered
after July 1, 1999, for which allowable service credit is received. if the member is first employed as a
deputy state fire marshal, fire/arson investigator:
(1) before July 1, 2026,
and the member elected special benefit coverage under the laws in effect on the
day the member was first employed as a deputy state fire marshal, fire/arson
investigator; or
(2) after June 30, 2026.
(b) The covered member must be at least age 55 to qualify for the retirement annuity specified in subdivision 3.
Sec. 10. Minnesota Statutes 2024, section 352.87, subdivision 2, is amended to read:
Subd. 2. Retirement
annuity eligibility. A person
specified in subdivision 1 who meets all eligibility requirements specified in
this chapter applicable to general plan members of the general state
employees retirement plan is eligible for retirement benefits as specified
in subdivision 3.
Sec. 11. Minnesota Statutes 2025 Supplement, section 352.905, is amended by adding a subdivision to read:
Subd. 8. Employees
of labor organization. Employees
who meet the coverage and election requirements of section 352.029 will
continue to be covered by the correctional employees retirement plan.
Sec. 12. Minnesota Statutes 2025 Supplement, section 352.907, is amended by adding a subdivision to read:
Subd. 7. Certain
laws not applicable to the membership committee. (a) Meetings of the correctional plan
membership committee are not subject to chapter 13D.
(b) The correctional
plan membership committee is not an agency for the purposes of sections 15.0597
and 15.0599.
Sec. 13. ELECTION
OF COVERAGE FOR CURRENT DEPUTY STATE FIRE MARSHALS.
Subdivision 1. Definition. For purposes of this section,
"eligible employee" means a member of the general state employees
retirement plan of the Minnesota State Retirement System who began employment
with the Department of Public Safety, State Fire Marshal Division, as a deputy
state fire marshal, fire/arson investigator, after July 31, 2021, and before
October 5, 2022.
Subd. 2. Election
of coverage. (a) An eligible
employee may file a notice with the executive director of the Minnesota State
Retirement System on a form prescribed by the executive director stating that
the employee elects to be covered by section 352.87. Notice must be filed no later than 60 days
after enactment of this section.
(b)
Elections under this subdivision are irrevocable during any period of covered
employment.
(c) An eligible employee
who makes an election under this subdivision is entitled to retirement or
disability benefits, as applicable, as stated in section 352.87. Elected coverage is effective retroactively
from the first day of employment.
(d) A failure to file a
timely notice is deemed a waiver of coverage by section 352.87.
Subd. 3. Calculation of additional contributions due. (a) Upon the request of an eligible employee before the eligible employee files the notice electing coverage under subdivision 2 or if an eligible employee files the notice electing coverage under subdivision 2, the executive director of the Minnesota State Retirement System must calculate:
(1) the employee contributions that would have been deducted from the eligible employee's salary starting with the first day of covered employment but were not deducted because the eligible employee had not yet filed the notice electing coverage, plus interest at the applicable rate or rates specified in section 356.59, subdivision 2; and
(2) the employer contributions that would have been paid by the employer starting with the eligible employee's first day of covered employment but were not deducted because the eligible employee had not yet filed the notice electing coverage, plus interest at the applicable rate or rates specified in section 356.59, subdivision 2.
(b) The executive director must inform the eligible employee and the Department of Public Safety of the amounts calculated under paragraph (a) no later than 30 days after receiving the request or the notice electing coverage from the eligible employee.
Subd. 4. Payment
of additional contributions. (a)
If an eligible employee files a notice electing coverage under subdivision 2,
the eligible employee must pay the employee contributions and interest computed
under subdivision 3, paragraph (a), to the general employees retirement fund of
the Minnesota State Retirement System in a lump sum. Payment must be made within six months of
filing the notice electing coverage under subdivision 2 or on the date the
eligible employee terminates employment as a deputy state fire marshal,
fire/arson investigator, whichever is earlier.
(b) The Department of
Public Safety must pay the employer contributions and interest computed under
subdivision 3, paragraph (a), to the general employees retirement fund of the
Minnesota State Retirement System within 30 days of the date on which the executive
director of the Minnesota State Retirement System certifies to the Department
of Public Safety that the eligible employee made the payment required under
paragraph (a).
Sec. 14. REPEALER.
Minnesota Statutes 2024,
section 352.87, subdivision 8, is repealed.
Sec. 15. EFFECTIVE
DATE.
Sections 1 to 14 are effective July 1,
2026.
PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
Section 1. Minnesota Statutes 2025 Supplement, section 353.65, subdivision 3b, is amended to read:
Subd. 3b. Direct state aid. (a) The state must pay $4,500,000 on October 1, 2018, and October 1, 2019, to the public employees police and fire retirement plan. By October 1 of each year after 2019, the state must pay $9,000,000 to the public employees police and fire retirement plan.
(b) By October 1 of each year after 2024, the state must pay $17,700,000 to the public employees police and fire retirement plan.
(c) By October 1 of each
year after 2025, the state must pay $8,000,000 to the public employees police
and fire retirement plan.
(c) (d) The
commissioner of management and budget must pay the aid specified in this
subdivision. The amount required is
annually appropriated from the general fund to the commissioner of management
and budget.
(d) (e) The
aid under paragraph (a) continues until the first day of the fiscal year
following three consecutive fiscal years in which, for each fiscal year, the
actuarial value of assets of the fund equals or exceeds 110 percent of the
actuarial accrued liabilities as reported by the actuary retained under section
356.214 in the annual actuarial valuation prepared under section 356.215.
(e) (f) The
aid under paragraph (b) expires July 1, 2048.
(g) The aid under
paragraph (c) expires July 1, 2042.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 2. Minnesota Statutes 2024, section 353E.03, subdivision 1, is amended to read:
Subdivision 1. Member
contributions. A member of the plan
shall make an employee contribution in an amount equal to 6.83 six
percent of salary.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 3. Minnesota Statutes 2024, section 353E.03, subdivision 2, is amended to read:
Subd. 2. Employer
contributions. The employer shall
contribute for a member of the plan an amount equal to 10.25 nine
percent of salary.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 4. Minnesota Statutes 2025 Supplement, section 356.415, subdivision 1c, is amended to read:
Subd. 1c. Public employees police and fire retirement plan. (a) Retirement annuity, disability benefit, or survivor benefit recipients of the public employees police and fire retirement plan are entitled to an annual postretirement adjustment, effective as of each January 1, as follows:
(1) for each annuitant or
benefit recipient who will have has been receiving an the
annuity or benefit for at least 24 12 full months as of the immediate
preceding June 30 of the calendar year immediately before the effective
date of the increase, a postretirement increase of one percent must be
applied each year to the amount of the monthly annuity or benefit of the
annuitant or benefit recipient; or
(b) An increase in annuity
or benefit payments under this section subdivision must be made
automatically unless written notice is filed by the annuitant or benefit
recipient with the executive director of the Public Employees Retirement
Association requesting that the increase not be made.
EFFECTIVE DATE. This section is effective for postretirement
adjustments beginning on or after January 1, 2027.
Sec. 5. Minnesota Statutes 2024, section 356.415, subdivision 1g, is amended to read:
Subd. 1g. Annual
postretirement adjustments; PERA Public Employees Retirement
Association; local government correctional retirement plan. (a) Annuities, disability benefits, and
survivor benefits being paid from the local government correctional retirement
plan of the Public Employees Retirement Association shall be increased
effective each January 1 by the percentage of increase determined under this
subdivision. The increase to the annuity
or benefit shall be determined by multiplying the monthly amount of the annuity
or benefit by the percentage of increase specified in paragraph (b), after taking
into account any reduction to the percentage of increase required under
paragraph (d).
(b) As of each January 1, The percentage of increase must be one percent unless the federal Social Security Administration has announced a cost-of-living adjustment pursuant to United States Code, title 42, section 415(i), in the last quarter of the preceding calendar year that is greater than one percent. If the cost-of-living adjustment announced by the federal Social Security Administration is greater than one percent, the percentage of increase must be the same as the cost-of-living adjustment announced by the federal Social Security Administration, but in no event may the percentage of increase exceed the applicable maximum percentage in effect on January 1 under paragraph (c).
(c) The applicable maximum
percentage in effect on January 1 is 2.5 three percent, unless
either of the following is true, in which case the applicable maximum
percentage is 1.5 percent:
(1) the market value of assets equals or is less than 85 percent of the actuarial accrued liabilities as reported by the plan's actuary in the most recent two consecutive annual actuarial valuations; or
(2) the market value of
assets equals or is less than 80 percent of the actuarial accrued liabilities
as reported by the plan's actuary in the most recent annual actuarial valuation. If, on January 1 after a year during which
the applicable maximum percentage was 1.5 percent, neither clause (1) or (2) is
true, then the applicable maximum percentage is 2.5 percent.
(d)(1) If the recipient of an annuity, disability benefit, or survivor's benefit has been receiving the annuity or benefit for at least 12 full months as of the June 30 of the calendar year immediately before the effective date of the increase, there is no reduction in the percentage of increase.
(2) If the recipient of an annuity, disability benefit, or survivor's benefit has been receiving the annuity or benefit for at least one month, but less than 12 full months, as of the June 30 of the calendar year immediately preceding the effective date of the increase, the percentage of increase is multiplied by a fraction, the numerator of which is the number of months the annuity or benefit was received as of June 30 of the preceding calendar year and the denominator of which is 12.
EFFECTIVE DATE. This section is effective for postretirement
adjustments beginning on or after January 1, 2027.
ARTICLE 3
TEACHERS RETIREMENT ASSOCIATION; ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION
Section 1. Minnesota Statutes 2024, section 354.05, subdivision 37, is amended to read:
Subd. 37. Termination
of teaching service. "Termination
of teaching service" means the withdrawal of a member from active teaching
service by resignation or the termination of the member's teaching contract by
the employer. A member is not considered
to have terminated teaching service, if before the age of 62 59-1/2,
and before the effective date of the termination or retirement, the member has
entered into a contract to resume teaching service with an employing unit
covered by the provisions of this chapter.
A contract to return to work after retirement for an active member who
has attained age 62 59-1/2 must comply with the provisions of
section 354.444.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 2. Minnesota Statutes 2024, section 354.05, is amended by adding a subdivision to read:
Subd. 44. Medical
provider. "Medical
provider" means an individual licensed as a physician, chiropractor,
physician assistant, APRN, or, with respect to a mental impairment, a
psychologist.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 3. Minnesota Statutes 2024, section 354.07, subdivision 2, is amended to read:
Subd. 2. Investigatory
powers. In passing upon all
applications and claims, the board may summon, swear, hear, and examine
witnesses and, in the case of claims for disability benefits, may require the
claimant to submit to a medical examination by a physician medical
provider of the board's choice, at the expense of the claimant, as a
condition precedent to the passing on the claim, and, in the case of all
applications and claims, may conduct investigations necessary to determine the
validity and merit of the same.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 4. Minnesota Statutes 2024, section 354.444, subdivision 2, is amended to read:
Subd. 2. Eligibility. An eligible person is a person who:
(1) is a teacher as defined by
section 354.05, subdivision 2, who is at least age 62 59-1/2;
(2) enters into a written agreement with the employing unit to return to work; and
(3) retires under the provisions of section 354.44 and begins to draw an annuity from the Teachers Retirement Association.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 5. Minnesota Statutes 2024, section 354.444, subdivision 3, is amended to read:
Subd. 3. Work
agreement. (a) A member who is at
least age 59-1/2 may, before the effective date of retirement, enter into a
written agreement to return to work with an employing unit covered by the
provisions of this chapter.
(b)
Participation, the amount of time worked, and the duration of participation
under this section must be mutually agreed upon by the employing unit and the
employee. The employing unit may require
up to a one-year notice of intent to participate in the program as a condition
of participation. The employing unit
shall determine the time of year the employee shall work. Unless otherwise specified in this section,
the employing unit may not require a person to waive any rights under a
collective bargaining agreement as a condition of participation under this
section.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 6. Minnesota Statutes 2024, section 354.48, subdivision 4, is amended to read:
Subd. 4. Determination
by executive director. (a) The
executive director shall must have the member examined by at
least two licensed physicians, licensed chiropractors, or licensed
psychologists a licensed physician and any one or more medical providers.
(b) These physicians,
chiropractors, APRNs, or psychologists with respect to a mental impairment,
shall The medical providers selected under paragraph (a) must make
written reports to the executive director concerning the member's disability,
including expert opinions as to whether or not the member is permanently and
totally disabled within the meaning of section 354.05, subdivision 14.
(c) The executive director shall
must also obtain written certification from the last employer stating
whether or not the member was separated from service because of a disability which
that would reasonably prevent further service to the employer and as a
consequence the member is not entitled to compensation from the employer.
(d) If, upon the
consideration of the reports of the physicians, chiropractors, APRNs, or
psychologists required under paragraph (b) and any other evidence
presented by the member or by others interested therein, the executive director
finds that the member is totally and permanently disabled, the executive
director shall must grant the member a disability benefit.
(e) An employee who is placed on leave of absence without compensation because of disability is not barred from receiving a disability benefit.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 7. Minnesota Statutes 2024, section 354.48, subdivision 6, is amended to read:
Subd. 6. Regular
physical examinations. At least once
each year during the first five years following the allowance of a disability
benefit to any member, and at least once in every three-year period thereafter,
the executive director may require the disability benefit recipient to undergo
an expert examination by a physician or physicians, by a chiropractor or
chiropractors, by an APRN or APRNs, or by one or more psychologists with
respect to a mental impairment, medical providers engaged by the
executive director. If an examination
indicates that the member is no longer permanently and totally disabled or that
the member is engaged or is able to engage in a substantial gainful occupation,
the association must discontinue payments of the disability benefit by
the association must be discontinued.
The payments must be discontinued as soon as the member is reinstated to
the payroll following sick leave, but payment may not be made for more
than 60 days after the physicians, chiropractors, APRNs, or psychologists
medical provider or medical providers engaged by the executive director
find that the person is no longer permanently and totally disabled.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Subd. 14b. Medical expert. For purposes of section 354A.36, "medical expert" means a licensed physician, licensed physician assistant, licensed chiropractor, an APRN, or a licensed psychologist, in each case working within the scope of the individual's professional licensure.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 9. Minnesota Statutes 2024, section 354A.021, subdivision 8, is amended to read:
Subd. 8. Annual
audit by state auditor. (a)
The books and accounts of the teachers retirement fund association must
be examined and audited periodically as considered necessary by the state
auditor annually. A full and
detailed report of the examination and audit must be made and a copy provided
to the teachers retirement fund association board of trustees. The cost of any examination and audit must be
paid by the teachers retirement fund association in accordance with
section 6.56. For purposes of section
6.56, the teachers retirement fund association is considered a local
governmental entity equivalent to a county, city, town, or school district.
(b) The examination and
audit required under paragraph (a) must be conducted by the state auditor
unless the state auditor has notified the association that the state auditor
will not conduct the examination and audit for a particular year. For any year that the state auditor does not
perform the examination and audit, the association must obtain the examination
and audit by a CPA firm meeting the requirements of section 326A.05.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 10. Minnesota Statutes 2024, section 354A.12, subdivision 1, is amended to read:
Subdivision 1. Employee contributions. (a) The contribution required to be paid by each member is the percentage of total salary specified below for the applicable program:
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|
|
|
|
|
|
|
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basic program after June 30, 2025, through June 30, 2026 |
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11.25 |
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basic program after June 30, 2026 |
|
|
|
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|
|
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|
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coordinated program after June 30, 2025, through June 30, 2026 |
|
8.75 |
|
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coordinated program after June 30, 2026 |
|
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(b) Contributions must be made by deduction from salary and must be remitted directly to the association at least once each month.
(c) When an employee contribution rate changes for a fiscal year, the new contribution rate is effective for the entire salary paid by the employer with the first payroll cycle reported.
EFFECTIVE
DATE. This section is
effective July 1, 2026.
Subd. 3a. Direct state aid to St. Paul Teachers Retirement Fund Association. (a) The state must pay $2,827,000 to the St. Paul Teachers Retirement Fund Association.
(b) In addition to other amounts specified in this subdivision, the state must pay $7,000,000 as state aid to the St. Paul Teachers Retirement Fund Association.
(c) In addition to the other
amounts specified in paragraphs (a) and (b) this subdivision, the
state must pay $5,000,000 as state aid to the St. Paul Teachers Retirement
Fund Association.
(d) In addition to the
other amounts specified in this subdivision, the state must pay $3,400,000 as
state aid to the St. Paul Teachers Retirement Fund Association.
(d) (e) The aid
under this subdivision is payable October 1 annually. The commissioner of management and budget
must pay the aid specified in this subdivision.
The amount required is appropriated annually from the general fund to
the commissioner of management and budget.
EFFECTIVE DATE. This
section is effective July 1, 2026.
Sec. 12. Minnesota Statutes 2024, section 354A.12, subdivision 3c, is amended to read:
Subd. 3c. Termination
of supplemental contributions and direct matching and state aid. The supplemental contributions payable to
the St. Paul Teachers Retirement Fund Association by Independent School
District No. 625 under section 423A.02, subdivision 3, and the aid under
subdivision 3a, paragraphs (a) to (c) (d), continue until the
earlier of:
(1) the first day of the fiscal year following three consecutive fiscal years in which, for each fiscal year, the actuarial value of assets of the fund equals or exceeds 100 percent of the actuarial accrued liability as reported by the actuary retained under section 356.214 in the annual actuarial valuation prepared under section 356.215; or
(2) July 1, 2048.
EFFECTIVE DATE. This
section is effective July 1, 2026.
Sec. 13. Minnesota Statutes 2024, section 356.219, subdivision 1, is amended to read:
Subdivision 1. Report required. (a) The Bloomington Fire Department Relief Association, volunteer firefighters relief associations governed by sections 424A.091 to 424A.095, the St. Paul Teachers Retirement Fund Association, and any Minnesota public pension plan that is not fully invested through the State Board of Investment, must report the information specified in subdivision 3 to the state auditor. The state auditor may prescribe a form or forms for the purposes of the reporting requirements contained in this section.
(b) For purposes of this section, a pension plan is fully invested through the State Board of Investment during a given calendar year if all assets of the pension plan beyond sufficient cash equivalent investments to cover six months of expected expenses are invested under section 11A.17.
(c) A public pension plan to
which subdivision 3, paragraph (b) or (c), applies is not required to file the
report required by this subdivision for a given calendar year if the pension
plan's most recent annual financial audit was conducted by the state auditor. The St. Paul Teachers Retirement Fund
Association is not required to file the report required by this subdivision for
a given calendar year if the St. Paul Teachers Retirement Fund
Association:
(1) is audited by the state auditor under
section 354A.021, subdivision 8, for the most recent annual audit; or
(2)
submits to the state auditor an annual financial audit for the most recent
annual audit that was conducted in accordance with auditing standards generally
accepted in the United States of America.
(d) This section does not apply to the following plans:
(1) the Minnesota unclassified employees retirement program under chapter 352D;
(2) the public employees defined contribution plan under chapter 353D;
(3) the individual retirement account plans under chapters 354B and 354D;
(4) the higher education supplemental retirement plan under chapter 354C;
(5) any alternative retirement benefit plan established under section 383B.914;
(6) the University of Minnesota faculty retirement plan and supplemental plan; and
(7) any other statewide plan required to be invested by the State Board of Investment under section 11A.23.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 14. Laws 2022, chapter 65, article 3, section 1, subdivision 2, as amended by Laws 2024, chapter 102, article 1, section 8, is amended to read:
Subd. 2. Temporary
suspension of earnings limitation for teachers covered by TRA and SPTRFA. (a) Notwithstanding Minnesota Statutes,
section 354.44, subdivision 5, no portion of a reemployed teacher's annuity
paid under Minnesota Statutes, chapter 354, shall be deferred regardless of the
amount of the salary earned from the teaching service during the preceding
fiscal year. This paragraph applies only
to salary earned during fiscal years 2022, 2023, 2024, 2025, 2026, and
2027, 2028, 2029, and 2030 and annuity payments made during calendar
years 2023, 2024, 2025, 2026, 2027, and 2028, 2029, 2030, and
2031.
(b) Notwithstanding
Minnesota Statutes, section 354A.31, subdivision 3, no portion of a reemployed
teacher's annuity paid under Minnesota Statutes, chapter 354A, shall be
deferred or forfeited regardless of the amount of the salary earned from the
teaching service during the preceding calendar year. This paragraph applies only to salary earned
during calendar years 2022, 2023, 2024, 2025, 2026, and 2027,
2028, 2029, and 2030 and annuity payments made during calendar years 2023,
2024, 2025, 2026, 2027, and 2028, 2029, 2030, and 2031.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 15. Laws 2022, chapter 65, article 3, section 1, subdivision 3, as amended by Laws 2024, chapter 102, article 1, section 9, is amended to read:
Subd. 3. Expiration
date. This section expires effective
January 1, 2029 2032.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
PROBATION AND TELECOMMUNICATOR RETIREMENT SUBPLAN OF THE MSRS GENERAL STATE EMPLOYEES RETIREMENT PLAN
Section 1. Minnesota Statutes 2024, section 352.75, subdivision 2, is amended to read:
Subd. 2. New
employees. All persons employed by
the Metropolitan Council as employees of the Transit Operating Division are:
(1) members of the
general state employees retirement plan of the Minnesota State Retirement
System unless specifically covered by the probation and telecommunicator
retirement subplan under section 352.88; and are
(2) state employees for
purposes of this chapter unless specifically excluded under section 352.01,
subdivision 2b.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 2. [352.88]
PROBATION OFFICERS AND PUBLIC SAFETY TELECOMMUNICATORS.
Subdivision 1. Policy. It is the policy of the legislature
that special consideration should be given to the pension benefits for
employees of the state and governmental subdivisions who devote their time and
skills to assisting the community and the courts as probation officers or
serving the public and public safety partners as telecommunicators. Since this work can be hazardous or high
stress, special provisions are made by this section for earlier full retirement
than is provided to members of the general state employees retirement plan
under section 352.01, subdivision 25. The
additional cost of this benefit is split between the employees and employers.
Subd. 2. Definitions. (a) For purposes of this section and
section 352.881, each of the following terms has the meaning given unless the
language or context clearly indicates that a different meaning is intended. The definitions in section 352.01 apply to
terms used in this section and section 352.881 unless the term is defined in
this section.
(b) "Committee"
means the probation and telecommunicator subplan membership committee
established pursuant to section 352.881.
(c) "Employee
organization" has the meaning given in section 179A.03, subdivision 6.
(d) "General
plan" means the general state employees retirement plan of the Minnesota
State Retirement System.
(e) "Member"
means an individual to whom this section applies under subdivision 3.
(f) "Normal
retirement age" means age 60.
(g) "Offset
amount" means an amount available to offset the cost to purchase credit
for past service upon the election by a member under subdivision 6, if state
funding becomes available.
(h) "Past
service" means allowable service credited to a member before January 1,
2027, and covered by the general plan that
would have been service covered by this section had this section been in effect
before January 1, 2027.
(i) "Probation
officer" means a state employee, as defined in section 352.01, employed by
the Department of Corrections:
(1) as:
(i) a corrections agent;
(ii) a
corrections agent career;
(iii) a corrections agent
senior;
(iv) a corrections field
service district supervisor;
(v) a corrections
community services regional director;
(vi) a corrections field
services director;
(vii) a corrections field
services program director; or
(2) whom the commissioner
of corrections or the commissioner's delegate certifies, in the manner
prescribed by the executive director, as having substantial responsibility for:
(i) providing community
supervision services or overseeing the delivery of probation services; or
(ii) supervising
employees eligible under item (i).
(j) "Public safety
telecommunicator" means a state employee, as defined in section 352.01,
employed by the Department of Public Safety or Metropolitan Council:
(1) as:
(i) a radio
communications operator;
(ii) a radio
communications supervisor;
(iii) a public safety answering point (PSAP) manager, as defined in
Minnesota Rules, part 7580.0100, subpart 12;
(iv) a supervisor,
transit control center; or
(2) whom the commissioner
of public safety, the commissioner's delegate, the Metro Transit general
manager, or the general manager's delegate, as applicable, certifies, in the
manner prescribed by the executive director, as having substantial responsibility
for:
(i) receiving,
processing, transmitting, or dispatching emergency and nonemergency calls for
law enforcement, fire, emergency medical, or other public safety services; or
(ii) supervising
employees eligible under item (i).
(k) "Vesting"
or "vested" means obtaining or having obtained a nonforfeitable
entitlement to an annuity or benefit under this section by having earned credit
for not less than three years of allowable service covered by this section or
the general plan.
Subd. 3. Eligibility. This section applies to probation
officers and public safety telecommunicators, unless the probation officer or
public safety telecommunicator is age 60 or older with at least three years of
allowable service in the general plan on January 1, 2027.
Subd. 4. Retirement
annuity. (a) After separation
from state service, a member who has attained at least normal retirement age
and is vested is entitled, upon application, to a normal retirement annuity. The normal retirement annuity is equal to the
member's average salary multiplied by 1.9 percent for each year of allowable
service.
(b)
After separation from state service, a member who has reached the age of 55 and
is vested is entitled, upon application, to an early retirement annuity that is
actuarially equivalent to the normal retirement annuity.
(c) Allowable service credited to a member under this section is
credited in lieu of service credited to the general plan.
Subd. 5. Additional
contributions. (a) A member
must make an additional employee contribution of 2.71 percent of salary.
(b) The employer of a
member must make an additional employer contribution of two percent of salary.
(c) Contributions under
paragraphs (a) and (b) are in addition to the contributions required by section
352.04, subdivisions 2 and 3.
(d) Contributions under
paragraphs (a) and (b) must be made in the manner provided in section 352.04,
subdivisions 4 to 6.
Subd. 6. Purchase
of credit for past service. (a)
A member is entitled to elect a onetime purchase of credit for periods of past
service to be added to the member's allowable service covered by this section
and used in calculating the member's retirement annuity. The member must repay any refunds of employee
contributions previously received from the general plan before purchasing past
service credit under this section.
(b) A member may request
an estimate of the cost of a service credit purchase under this paragraph.
(1) A member may file a
request with the executive director for an estimate of the purchase price for
up to three different periods of past service by filing an application on a
form approved by the executive director.
(2) The member must file
the request for an estimate before filing an election to purchase past service
under paragraph (c).
(3) The member must
submit with the estimate request payment of the administrative fee in the
amount of $250 to cover the cost of preparing the estimates. If the member proceeds with the purchase, the
executive director must credit the administrative fee toward the purchase
price.
(4) The executive
director must estimate the purchase price using the assumptions and applying
any offset amount as directed under subdivision 7 for the periods of past
service requested by the member and provide the estimates to the member.
(c) To purchase credit
for past service, a member must file an application with the executive director
on a form approved by the executive director before the annuity starting date
of the member's retirement annuity or benefit.
The application must:
(1) include
documentation of the member's eligibility to make the purchase, signed written
permission to allow the executive director to request and receive verification
of applicable facts and eligibility requirements from the member's employer,
and any other relevant information that the executive director may require;
(2) state the amount of
credit for past service the member plans to purchase and be accompanied by a
certification from one or more employers that the past service fulfills the
requirements under subdivision 2, paragraph (h); and
(3) if
the member did not previously pay the administrative fee under paragraph (b),
include payment of the administrative fee of $250 to cover the cost of
calculating the purchase price. If the
member proceeds with the purchase, the executive director must credit the
administrative fee toward the purchase price.
(d) The executive
director must apply the assumptions and any offset amount under subdivision 7
to calculate the purchase price and notify the member. If the member elects to make the purchase of
credit for past service, the member must arrange for the transfer of pretax
money from another retirement plan. Payment
must be made in one lump sum prior to the annuity starting date of the member's
retirement annuity or benefit.
(e) Upon receipt of
payment, the executive director must grant the member service credit for the
period of past service for which credit was purchased.
Subd. 7. Determination
of past service purchase price. (a)
The executive director must calculate the purchase price for the period of past
service elected by the member. The
purchase price is an amount equal to the actuarial present value, on the date
of payment, of the amount of the additional retirement annuity obtained by the
additional service credit being purchased minus any offset amount.
(b) The executive
director must calculate the purchase price by:
(1) using the investment
return assumption specified in section 356.215, subdivision 8, and the
mortality table in effect for the general plan;
(2) assuming continuous
future service in the plan until the plan's minimum requirements for normal
retirement or retirement with an annuity unreduced for retirement at an early
age are met with the additional service credit purchased;
(3) assuming a full-time
equivalent salary or actual salary, whichever is greater, and a future salary
history that includes annual salary increases at the applicable salary increase
rate for the plan; and
(4) reducing the amount
determined under clauses (1) to (3) by any offset amount.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 3. [352.881]
SUBPLAN COVERAGE CHANGES.
Subdivision 1. Standing
review committees. (a) The
commissioner of corrections must appoint a standing review committee to review
and determine positions or employees of the Department of Corrections that
should be covered by section 352.88. The
commissioner of public safety must appoint a standing review committee to
review and determine positions or employees of the Department of Public Safety
that should be covered by section 352.88.
The Metro Transit general manager must appoint a standing review committee
to review and determine positions or employees of the Metropolitan Council that
should be covered by section 352.88.
(b) The Department of
Corrections, Department of Public Safety, and Metropolitan Council must each
establish a procedure for the department's or agency's respective committee to
evaluate coverage by section 352.88. Each
committee must follow:
(1) subdivision 2 when
evaluating a change in the title of an employment position listed in section
352.88, subdivision 2, paragraph (i), clause (1), or (j), clause (1); and
(2) subdivision 3 when evaluating
requests for starting or ceasing coverage by section 352.88.
(c) If
a committee has received one or more requests for changes to the title of an
employment position or the commencement or cessation of coverage of an employee
by section 352.88, the committee must convene at least as frequently as once
every three months. If a committee has
not received any requests during a three-month period, the review committee is
not required to convene a meeting.
(d) Each committee must
retain each request to the committee and the related documentation and final
determination for an employee or employment position in the committee's
respective department or agency.
(e) Meetings of a
standing review committee are not subject to chapter 13D.
(f) A standing review
committee is not an agency for the purposes of sections 15.0597 and 15.0599.
Subd. 2. Procedures
for changing employment titles. (a)
The applicable standing review committee must review a change in the title of
an employment position listed in section 352.88, subdivision 2, paragraph (i),
clause (1), or (j), clause (1), and determine whether the responsibilities of
the employment position satisfy the requirements under section 352.88,
subdivision 2, paragraph (i) or (j).
(b) If the committee
determines that the responsibilities of the employment position have not
changed, or the responsibilities of the employment position have changed but
the changes do not affect the eligibility of the employment position for
coverage by section 352.88, the department or agency affected by the
determination must:
(1) submit the title
change to the executive director of the Legislative Commission on Pensions and
Retirement before the start of the next legislative session and request
legislation to replace the title in section 352.88, subdivision 2, paragraph
(i) or (j), as applicable, with the new title; and
(2) notify each employee
in the employment position no later than 30 days after the effective date of
the title change that the title change will not affect the continued coverage
of the employee by section 352.88 and that the department or agency, as applicable,
has submitted a request to the legislature to change the title in section
352.88, subdivision 2, paragraph (i) or (j), as applicable.
(c) If the committee
determines that the responsibilities of the employment position have changed
and the changes result in the employment position no longer being qualified for
coverage by section 352.88, the department or agency affected by the determination
must communicate the committee's determination to all affected employees no
later than 10 days after the date of the meeting at which the determination was
made and inform the employees of the right to appeal the determination under
subdivision 4.
(d) The department or
agency affected by the determination to remove a title must contact the
executive director of the Legislative Commission on Pensions and Retirement
before the start of the next legislative session and request legislation to
remove the title in section 352.88, subdivision 2, paragraph (i) or (j), as
applicable, if:
(1) an employee appeals
the determination and the determination is upheld; or
(2) an employee does not
appeal the determination.
(e) The committee must
include an effective date in any determination to change or remove an
employment position from the lists in section 352.88, subdivision 2, paragraph
(i) or (j). The effective date may be
retroactive for a determination to change an employment position.
Subd. 3. Procedures
for starting or ceasing coverage. (a)
The applicable standing review committee must consider requests to provide
coverage by section 352.88 to an employee who satisfies the requirements of
section 352.88, subdivision 2, paragraph (i), clause (2), or (j), clause (2),
or to cease coverage of an employee who does not satisfy the requirements of
section 352.88, subdivision 2, paragraph (i), clause (2), or (j), clause (2).
(b) An employee, an
employee's employee organization, or an employee's manager may submit a request
to the committee to provide coverage to an employee who satisfies the
requirements of section 352.88, subdivision 2, paragraph (i), clause (2), or
(j), clause (2). The request must
include:
(1) a signed and dated
position description for the employee's position; and
(2) a statement signed
by the employee that describes the extent to which the employee's job duties
meet the requirements of section 352.88, subdivision 2, paragraph (i), clause
(2), or (j), clause (2).
(c) An employer may
submit a request to the committee to cease coverage of an employee who no
longer satisfies the requirements of section 352.88, subdivision 2, paragraph
(i), clause (2), or (j), clause (2). The
request must include:
(1) a signed and dated
position description for the employee's position; and
(2) a statement signed
by the employee's employer describing how the employee no longer meets the
requirements of section 352.88, subdivision 2, paragraph (i), clause (2), or
(j), clause (2).
(d) After making a
determination of coverage or no coverage for an employee, the department or
agency affected by the determination must communicate the committee's
determination to the affected employee no later than ten days after the date of
the meeting at which the determination was made and inform the employee of the
right to appeal the determination under subdivision 4.
(e) If after making a
determination of coverage, the committee determines that an employment position
should be added to the list of employment positions in section 352.88,
subdivision 2, paragraph (i) or (j), as applicable, the department or agency
affected by the determination must submit the employment position addition to
the executive director of the Legislative Commission on Pensions and Retirement
before the start of the next legislative session and request legislation to
make the change.
(f) The committee must
include an effective date in any determination that an employee must begin to
receive coverage under section 352.88 or that coverage must cease. The effective date may be retroactive to the
date on which the coverage requirements were first satisfied or were no longer
met.
Subd. 4. Right
to appeal. (a) No later than
30 days after receiving a determination under subdivision 2 or 3, the affected
employee may appeal the determination from a standing review committee by
filing an appeal with the human resources director or the chief human resources
director of the department or agency, as applicable, in which the employee is
employed. The appeal must include:
(1) the reasons for the
appeal, including the reasons the determination should be reversed; and
(2) new or additional
information, if any, not previously submitted or considered by the committee,
including a new or revised position description.
(b)
The appeal must be decided by the commissioner of corrections if the employee
is an employee of the Department of Corrections, by the commissioner of public
safety if the employee is an employee of the Department of Public Safety, or by
the Metro Transit general manager if the employee is an employee of the
Metropolitan Council. The decision of
the commissioners or general manager, as applicable, is final.
(c) A determination not
timely appealed under paragraph (a) is not entitled to further administrative
or judicial review. A determination
under subdivision 2 or 3 or an appeal decided under paragraph (b) may not be
appealed under section 356.96.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 4. Minnesota Statutes 2024, section 352.951, is amended to read:
352.951 APPLICABILITY OF GENERAL LAW.
Except as otherwise provided,
this chapter applies to covered correctional employees, military affairs
personnel covered under section 352.85, Transportation Department pilots
covered under section 352.86, and state fire marshal employees covered
under section 352.87, and probation officers and public safety
telecommunicators covered under section 352.88.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 5. Minnesota Statutes 2024, section 356.315, subdivision 9, is amended to read:
Subd. 9. Future benefit accrual rate increases. After January 2, 1998, benefit accrual rate increases under section 352.115, subdivision 3; 352.87, subdivision 3; 352.88, subdivision 4; 352.93, subdivision 3; 352.95, subdivision 1; 352B.08, subdivision 2; 352B.10, subdivision 1; 353.29, subdivision 3; 353.651, subdivision 3; 353.656, subdivision 1, 1a, or 3a; 353E.04, subdivision 3; 353E.06, subdivision 1; 354.44, subdivision 6; 354A.31, subdivision 4 or 4a; 356.30, subdivision 1; 490.121, subdivision 22; or 490.124, subdivision 1, must apply only to allowable service or formula service rendered after the effective date of the benefit accrual rate increase.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 6. APPROPRIATIONS.
(a) $272,000 in fiscal
year 2027 is appropriated from the general fund to the commissioner of
corrections for the purposes of this
act. The base for this appropriation is
$545,000 in fiscal year 2028 and $545,000 in fiscal year 2029.
(b) $14,000 in fiscal
year 2027 is appropriated from the general fund to the commissioner of public
safety for the purposes of this act. The
base for this appropriation is $29,000 in fiscal year 2028 and $29,000 in
fiscal year 2029.
(c) $40,000 in fiscal
year 2027 is appropriated from the general fund to the Metropolitan Council for
the purposes of this act. The base for
this appropriation is $80,000 in fiscal year 2028 and $80,000 in fiscal year
2029.
(d) $7,000 in fiscal
year 2027 is appropriated from the trunk highway fund to the commissioner of
public safety for the purposes of this
act. The base for this appropriation is
$14,000 in fiscal year 2028 and $14,000 in fiscal year 2029.
LOCAL GOVERNMENTAL PROBATION AND TELECOMMUNICATOR RETIREMENT PLAN
Section 1. Minnesota Statutes 2025 Supplement, section 353.01, subdivision 2a, is amended to read:
Subd. 2a. Included
employees; mandatory membership. (a)
Any public employee whose salary from one governmental subdivision is expected
to exceed $425 in any month and who is not specifically excluded under
subdivision 2b or has not been provided an option to participate under
subdivision 2d, whether individually or by action of the governmental
subdivision, must participate beginning on the employee's first day of
employment as a member of the association with retirement coverage by the
general employees retirement plan under this chapter, the public employees
police and fire plan under this chapter, or the local government
correctional employees retirement plan under chapter 353E, or the local
government probation and telecommunicator retirement plan under chapter 353H,
whichever applies. For any employee
whose salary is not expected to exceed $425 in any month, membership commences
on the first day that the employee's salary exceeds $425 and the other
eligibility criteria are met. Public
employees include but are not limited to:
(1) persons whose salary meets the threshold in this paragraph from employment in one or more positions within one governmental subdivision;
(2) elected county sheriffs;
(3) persons who are appointed, employed, or contracted to perform governmental functions that by law or local ordinance are required of a public officer, including, but not limited to:
(i) town and city clerk or treasurer;
(ii) county auditor, treasurer, or recorder;
(iii) city manager as defined in section 353.028 who does not exercise
the option provided under subdivision 2d; or
(iv) emergency management director, as provided under section 12.25;
(4) physicians under section 353D.01, subdivision 2, who do not elect public employees defined contribution plan coverage under section 353D.02, subdivision 2;
(5) full-time employees of the Dakota County Agricultural Society;
(6) employees of the Red Wing Port Authority who were first employed by the Red Wing Port Authority before May 1, 2011, and who are not excluded employees under subdivision 2b;
(7) employees of the Seaway Port Authority of Duluth who are not excluded employees under subdivision 2b;
(8) employees of the Stevens County Housing and Redevelopment Authority who were first employed by the Stevens County Housing and Redevelopment Authority before May 1, 2014, and who are not excluded employees under subdivision 2b;
(9) employees of the Minnesota River Area Agency on Aging who were first employed by a Regional Development Commission before January 1, 2016, and who are not excluded employees under subdivision 2b; and
(10) employees of the Public Employees Retirement Association.
(c) If the salary of an included public employee is less than $425 in any subsequent month, the member retains membership eligibility.
(d) For the purpose of participation in the general employees retirement plan, public employees include employees who were members of the former Minneapolis Employees Retirement Fund on June 29, 2010.
Sec. 2. Minnesota Statutes 2025 Supplement, section 353.01, subdivision 2b, is amended to read:
Subd. 2b. Excluded
employees. (a) The following public
employees are not eligible to participate as members of the association with
retirement coverage by the general employees retirement plan, the local
government correctional employees retirement plan under chapter 353E, or
the public employees police and fire plan, or the local government probation
and telecommunicator retirement plan under chapter 353H:
(1) persons whose salary from one governmental subdivision never exceeds or is never expected to exceed $425 in a month;
(2) public officers who are elected to a governing body, city mayors, or persons who are appointed to fill a vacancy in an elected office of a governing body, whose term of office commences on or after July 1, 2002, for the service to be rendered in that elected position;
(3) election judges and persons employed solely to administer elections;
(4) patient and inmate personnel who perform services for a governmental subdivision;
(5) except as otherwise specified in subdivision 12a, employees who are employed solely in a temporary position as defined under subdivision 12a, and employees who resign from a nontemporary position and accept a temporary position within 30 days of that resignation in the same governmental subdivision;
(6) employees who are employed by reason of work emergency caused by fire, flood, storm, or similar disaster, but if the person becomes a probationary or provisional employee within the same pay period, other than on a temporary basis, the person is a "public employee" retroactively to the beginning of the pay period;
(7) employees who by virtue of their employment in one governmental subdivision are required by law to be a member of and to contribute to any of the plans or funds administered by the Minnesota State Retirement System, the Teachers Retirement Association, or the St. Paul Teachers Retirement Fund Association, but this exclusion must not be construed to prevent a person from being a member of and contributing to the Public Employees Retirement Association and also belonging to and contributing to another public pension plan or fund for other service occurring during the same period of time, and a person who meets the definition of "public employee" in subdivision 2 by virtue of other service occurring during the same period of time becomes a member of the association unless contributions are made to another public retirement plan on the salary based on the other service or to the Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;
(9) persons who are:
(i) employed by a governmental subdivision who have not reached the age of 23 and who are enrolled on a full‑time basis to attend or are attending classes on a full-time basis at an accredited school, college, or university in an undergraduate, graduate, or professional-technical program, or at a public or charter high school;
(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist interns and are serving in a degree or residency program in a public hospital or in a public clinic; or
(iii) students who are serving for a period not to exceed five years in an internship or a residency program that is sponsored by a governmental subdivision, including an accredited educational institution;
(10) persons who hold a part-time adult supplementary technical college license who render part-time teaching service in a technical college;
(11) for the first three years of employment, foreign citizens who are employed by a governmental subdivision, except that the following foreign citizens must be considered included employees under subdivision 2a:
(i) H-1B, H-1B1, and E-3 status holders;
(ii) employees of Hennepin County or Hennepin Healthcare System, Inc.;
(iii) employees legally authorized to work in the United States for three years or more; and
(iv) employees otherwise required to participate under federal law;
(12) public hospital employees who elected not to participate as members of the association before 1972 and who did not elect to participate from July 1, 1988, to October 1, 1988;
(13) volunteer ambulance service personnel, as defined in subdivision 35, but persons who serve as volunteer ambulance service personnel may still qualify as public employees under subdivision 2 and may be members of the Public Employees Retirement Association and participants in the general employees retirement plan or the public employees police and fire plan, whichever applies, on the basis of compensation received from public employment service other than service as volunteer ambulance service personnel;
(14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties, but a person who is a volunteer firefighter may still qualify as a public employee under subdivision 2 and may be a member of the Public Employees Retirement Association and a participant in the general employees retirement plan or the public employees police and fire plan, whichever applies, on the basis of compensation received from public employment activities other than those as a volunteer firefighter;
(15) employees in the building and construction trades, as follows:
(i) pipefitters and associated trades personnel employed by Independent School District No. 625, St. Paul, with coverage under a collective bargaining agreement by the pipefitters local 455 pension plan who were either first employed after May 1, 1997, or, if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section 12;
(iii) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters, allied tradesworkers, and plasterers employed by the city of St. Paul or Independent School District No. 625, St. Paul, with coverage under a collective bargaining agreement by the bricklayers and allied craftworkers local 1 pension plan, the cement masons local 633 pension plan, the glaziers and glassworkers local 1324 pension plan, the painters and allied trades local 61 pension plan, or the plasterers local 265 pension plan who were either first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;
(iv) plumbers employed by the Metropolitan Airports Commission, with coverage under a collective bargaining agreement by the plumbers local 34 pension plan, who were either first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;
(v) electrical workers or pipefitters employed by the Minneapolis Park and Recreation Board, with coverage under a collective bargaining agreement by the electrical workers local 292 pension plan or the pipefitters local 539 pension plan, who were first employed before May 2, 2015, and elected to be excluded under Laws 2015, chapter 68, article 11, section 5;
(vi) laborers and associated trades personnel employed by the city of St. Paul or Independent School District No. 625, St. Paul, who are designated as temporary employees with coverage under a collective bargaining agreement by a multiemployer plan as defined in section 356.27, subdivision 1, who were either first employed on or after June 1, 2018, or if first employed before June 1, 2018, elected to be excluded under Laws 2018, chapter 211, article 16, section 13; and
(vii) employees who are trades employees as defined in section 356.27, subdivision 1, first hired on or after July 1, 2020, by the city of St. Paul or Independent School District No. 625, St. Paul, except for any trades employee for whom contributions are made under section 356.24, subdivision 1, clause (8), (9), or (10), by either employer to a multiemployer plan as defined in section 356.27, subdivision 1;
(16) employees who are hired after June 30, 2002, solely to fill seasonal positions under subdivision 12b which are limited in duration by the employer to a period of six months or less in each year of employment with the governmental subdivision;
(17) persons who are provided supported employment or work-study positions by a governmental subdivision and who participate in an employment or industries program maintained for the benefit of these persons where the governmental subdivision limits the position's duration to up to five years, including persons participating in a federal or state subsidized on-the-job training, work experience, senior citizen, youth, or unemployment relief program where the training or work experience is not provided as a part of, or for, future permanent public employment;
(18) independent contractors and the employees of independent contractors;
(19) reemployed annuitants of the association during the course of that reemployment;
(21) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan Transit Commission who are members of the International Brotherhood of Teamsters Local 638 and who are, by virtue of that employment, members of the International Brotherhood of Teamsters Central States pension plan; and
(22) persons employed by the Duluth Transit Authority or any subdivision thereof who are members of the Teamsters General Local Union 346 and who are, by virtue of that employment, members of the Central States Southeast and Southwest Areas Pension Fund.
(b) Any person performing the duties of a public officer in a position defined in subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an employee of an independent contractor.
Sec. 3. Minnesota Statutes 2024, section 353.01, subdivision 16, is amended to read:
Subd. 16. Allowable service; limits and computation. (a) "Allowable service" means:
(1) service during years of
actual membership in the course of which employee deductions were withheld from
salary and contributions were made at the applicable rates under section
353.27, 353.65, or 353E.03, or 353H.04;
(2) periods of service covered by payments in lieu of salary deductions under sections 353.27, subdivisions 12 and 12a, and 353.35;
(3) service in years during which the public employee was not a member but for which the member later elected, while a member, to obtain credit by making payments to the fund as permitted by any law then in effect;
(4) a period of authorized leave of absence during which the employee receives pay as specified in subdivision 10, paragraph (a), clause (4) or (5), from which deductions for employee contributions are made, deposited, and credited to the fund;
(5) a period of authorized leave of absence without pay, or with pay that is not included in the definition of salary under subdivision 10, paragraph (a), clause (4) or (5), for which salary deductions are not authorized, and for which a member obtained service credit for up to 12 months of the authorized leave period by payment under section 353.0162, to the fund made in place of salary deductions;
(6) an authorized temporary or seasonal layoff under subdivision 12, limited to three months allowable service per authorized temporary or seasonal layoff in one calendar year. An employee who has received the maximum service credit allowed for an authorized temporary or seasonal layoff must return to public service and must obtain a minimum of three months of allowable service subsequent to the layoff in order to receive allowable service for a subsequent authorized temporary or seasonal layoff;
(7) a period of uniformed services leave purchased under section 353.014;
(8) a period of military service purchased under section 353.0141; or
(9) a period of reduced salary purchased under section 353.0162.
(b) No member may receive more than 12 months of allowable service credit in a year either for vesting purposes or for benefit calculation purposes.
Sec. 4. Minnesota Statutes 2024, section 353.01, subdivision 37, is amended to read:
Subd. 37. Normal retirement age. (a) "Normal retirement age" means age 65 for a person who first became a public employee or a member of a pension fund listed in section 356.30, subdivision 3, clause (6), before July 1, 1989. For a person who first becomes a public employee after June 30, 1989, "normal retirement age" means the higher of age 65 or "retirement age," as defined in United States Code, title 42, section 416(l), as amended, but not to exceed age 66.
(b) "Normal retirement age" means age 55 for a person who is a member of a pension fund listed in section 356.30, subdivision 3, clauses (7) and (8).
(c) "Normal
retirement age" means the age stated in section 353H.01, subdivision 6,
for a member of the local government probation and telecommunicator retirement
plan.
Sec. 5. Minnesota Statutes 2024, section 353.0141, subdivision 1, is amended to read:
Subdivision 1. Service credit purchase authorized. (a) Unless prohibited under paragraph (b), a member is eligible to purchase allowable service credit, not to exceed five cumulative years of allowable service credit, for one or more periods of service in the uniformed services, as defined in United States Code, title 38, section 4303(13), if:
(1) the member has at least
three years of allowable service credit with the general employees retirement
plan, the local government correctional employees retirement plan under chapter
353E, or the public employees police and
fire retirement plan, or the local government probation and telecommunicator
retirement plan under chapter 353H;
(2) the member's current period of employment is at least six months; and
(3) one of the following applies:
(i) the member's service in the uniformed services occurred before becoming a public employee as defined in section 353.01, subdivision 2; or
(ii) the member failed to obtain service credit for a uniformed services leave of absence under section 353.01, subdivision 16, paragraph (a), clause (8).
(b) A service credit purchase is prohibited if:
(1) the member separated from service in the uniformed services with a dishonorable or bad conduct discharge or under other than honorable conditions; or
(2) the member has purchased or otherwise received service credit from any Minnesota public employee pension plan for the same period of service in the uniformed services.
(1) not be less than one year; and
(2) be in increments of six months of service.
Sec. 6. Minnesota Statutes 2024, section 353.031, subdivision 1, is amended to read:
Subdivision 1. Application. (a) This section applies to all
disability determinations for the public employees general fund, the public
employees police and fire fund, and the local government correctional
service retirement plan, and the local government probation and
telecommunicator retirement plan, and any other disability determination
subject to approval by the board, except as otherwise specified in section
353.032, 353.33, 353.656, or 353E.05. These
requirements and the requirements of section 353.03, subdivision 3, are in
addition to the specific requirements of each plan and govern in the event
there is any conflict between these sections and the procedures specific to any
of those plans under section 353.33, 353.656, or 353E.06, or 353H.06.
(b) Notwithstanding any law to the contrary, an employee, as defined in section 353.032, subdivision 1, clause (2), who applies for a duty disability benefit based on a psychological condition, as defined in section 353.032, subdivision 1, clause (7), is not eligible for duty disability benefits under this chapter until the employee has satisfied the additional procedure, including all completion of treatment requirements under section 353.032.
Sec. 7. Minnesota Statutes 2024, section 353.031, subdivision 2, is amended to read:
Subd. 2. Plan document policy statement. Disability determinations for the public employees general fund and the local government probation and telecommunicator retirement plan must be made subject to section 353.01, subdivision 19; and for the police and fire plan and the local government correctional service retirement plan must be made consistent with the legislative policy and intent set forth in section 353.63.
Sec. 8. Minnesota Statutes 2024, section 353.031, subdivision 3, is amended to read:
Subd. 3. Procedure to determine eligibility; generally. (a) Every claim for a disability benefit must be initiated in writing on an application form and in the manner prescribed by the executive director and filed with the executive director. To be valid, an application for disability benefits must be made within 18 months following termination of public service as defined under section 353.01, subdivision 11a, and include the required application form and the medical reports required by paragraph (c).
(b) All medical reports must support a finding that the disability arose before the employee was placed on any paid or unpaid leave of absence or terminated public service, as defined under section 353.01, subdivision 11a.
(c) An applicant for disability shall provide a detailed report signed by a licensed medical doctor and at least one additional report signed by a medical doctor, psychiatrist, psychologist, APRN, or chiropractor. The applicant must authorize the release of all medical and health care evidence, including all medical records and relevant information from any source, to support the application for initial, or the continuing payment of, disability benefits.
(d) All reports must contain an opinion regarding the applicant's prognosis, the duration of the disability, and the expectations for improvement. Any report that does not contain and support a finding that the disability will last for at least one year may not be relied upon to support eligibility for benefits.
(f) Upon receipt of a valid application, the executive director must notify the employer. No later than 30 days after receiving the notification, the employer must provide a report to the executive director indicating that there is no available work that the applicant can perform in the applicant's disabled condition and that all reasonable accommodations have been considered. Upon request of the executive director, an employer shall provide evidence of the steps the employer has taken to attempt to provide reasonable accommodations and continued employment to the applicant. The employer shall also provide a certification of the applicant's past public service; the dates of any paid sick leave, vacation, or any other employer-paid salary continuation plan beyond the last working day; and whether or not any sick or annual leave has been allowed.
(g) An applicant who is placed on leave of absence without compensation because of a disability is not barred from receiving a disability benefit.
(h) An applicant for
disability benefits may file a retirement annuity application under section
353.29, subdivision 4, simultaneously with an application for disability
benefits. If the application for
disability benefits is approved, the retirement annuity application is canceled. If disability benefits are denied, the
retirement annuity application must be processed upon the request of the
applicant. No member of the general
employees retirement plan, the police and fire plan, or the local
government correctional service retirement plan, or the local government
probation and telecommunicator retirement plan may receive a disability
benefit and a retirement annuity simultaneously from the same plan.
Sec. 9. Minnesota Statutes 2024, section 353.15, subdivision 1, is amended to read:
Subdivision 1. Exemption. The provisions of section 356.401 apply
to the general employees retirement plan, to the public employees police
and fire retirement plan, and to the local government correctional
service retirement plan, and the local government probation and
telecommunicator retirement plan.
Sec. 10. Minnesota Statutes 2024, section 353.27, subdivision 4, is amended to read:
Subd. 4. Employer
reporting requirements; contributions; member status. (a) A representative authorized by the
head of each department must deduct employee contributions from the salary of
each public employee who qualifies for membership in the general employees
retirement plan or the public employees police and fire retirement plan under
this chapter, the public employees defined contribution plan under chapter
353D, or the local government correctional service retirement plan under
chapter 353E, or the local government probation and telecommunicator
retirement plan under chapter 353H at the rate under section 353.27,
353.65, 353D.03, or 353E.03, or 353H.04, whichever is applicable,
that is in effect on the date the salary is paid. The employer representative must also remit
payment in a manner prescribed by the executive director for the aggregate
amount of the employee contributions and the required employer contributions to
be received by the association within 14 calendar days after each pay date. If the payment is less than the amount
required, the employer must pay the shortage amount to the association and
collect reimbursement of any employee contribution shortage paid on behalf of a
member through subsequent payroll withholdings from the wages of the employee. Payment of shortages in employee
contributions and associated employer contributions, if applicable, must
include interest at the rate specified in section 353.28, subdivision 5, if not
received within 30 days following the date the amount was initially due undr
this section.
(1) the legal names and Social Security numbers of employees who are members;
(2) the amount of each employee's salary deduction;
(3) the amount of salary defined in section 353.01, subdivision 10, earned in the pay period from which each deduction was made, including a breakdown of the portion of the salary that represents overtime pay that the employee was paid for additional hours worked beyond the regularly scheduled hours, pay for unused compensatory time, and the salary amount earned by a reemployed annuitant under section 353.37, subdivision 1, or 353.371, subdivision 1, or by a disabled member under section 353.33, subdivision 7 or 7a;
(4) the beginning and ending dates of the payroll period covered and the date of actual payment; and
(5) adjustments or corrections covering past pay periods as authorized by the executive director.
(c) Employers must furnish
the data required for enrollment for each new or reinstated employee who
qualifies for membership in the general employees retirement plan, the public
employees police and fire retirement plan, the public employees defined contribution
plan, or the local government correctional service retirement plan,
or the local government probation and telecommunicator retirement plan in
the format prescribed by the executive director. The required enrollment data on new members
must be submitted to the association prior to or concurrent with the submission
of the initial employee salary deduction.
Also, the employer shall report to the association all member employment
status changes, such as leaves of absence, terminations, and death, and shall
report the effective dates of those changes, on an ongoing basis for the
payroll cycle in which they occur. If an
employer fails to comply with the reporting requirements under this paragraph,
the executive director may assess a fine of $25 for each failure if the
association staff has notified the employer of the noncompliance and attempted
to obtain the missing data or form from the employer for a period of more than
three months.
(d) The employer shall furnish data, forms, and reports as may be required by the executive director for proper administration of the retirement system. Before implementing new or different computerized reporting requirements, the executive director shall give appropriate advance notice to governmental subdivisions to allow time for system modifications.
(e) Notwithstanding paragraph (a), the executive director may provide for less frequent reporting and payments for small employers.
(f) The executive director may establish reporting procedures and methods as required to review compliance by employers with the salary and contribution reporting requirements in this chapter. A review of the payroll records of a participating employer may be conducted by the association on a periodic basis or as a result of concerns known to exist within a governmental subdivision. An employer under review must extract requested data and provide records to the association after receiving reasonable advanced notice. Failure to provide requested information or materials will result in the employer being liable to the association for any expenses associated with a field audit, which may include staff salaries, administrative expenses, and travel expenses.
Subd. 7b. Recovery
of overpayments. (a) In the event
the executive director determines that an overpaid annuity or benefit from the
general employees retirement plan of the Public Employees Retirement
Association, the public employees police and fire retirement plan, or
the local government correctional employees retirement plan, or the local
government probation and telecommunicator retirement plan is the result of
invalid salary included in the average salary used to calculate the payment
amount must be recovered, the association must determine the amount of the
employee deductions taken in error on the invalid salary, with interest
determined in the manner provided for a former member under subdivision 7,
paragraph (e), clause (2), item (i), and must subtract that amount from the
total annuity or benefit overpayment, and the remaining balance of the overpaid
annuity or benefit, if any, must be recovered.
(b) If the invalid employee deductions plus interest exceed the amount of the overpaid benefits, the balance must be refunded to the person to whom the benefit or annuity is being paid.
(c) Any invalid employer contributions reported on the invalid salary must be credited to the employer as provided in subdivision 7, paragraph (e).
(d) If a member or former member, who is receiving a retirement annuity or disability benefit for which an overpayment is being recovered, dies before recovery of the overpayment is completed and a joint and survivor optional annuity is payable, the remaining balance of the overpaid annuity or benefit must continue to be recovered from the payment to the optional annuity beneficiary.
(e) If the association finds that a refund has been overpaid to a former member, beneficiary or other person, the amount of the overpayment must be recovered for the benefit of the respective retirement fund or account.
(f) The board of trustees shall adopt policies directing the period of time and manner for the collection of any overpaid retirement or optional annuity, and survivor or disability benefit, or a refund that the executive director determines must be recovered as provided under this section.
Sec. 12. Minnesota Statutes 2024, section 353.27, subdivision 11, is amended to read:
Subd. 11. Employers; required to furnish requested information. (a) All governmental subdivisions shall furnish promptly such other information relative to the employment status of all employees or former employees, including, but not limited to, payroll abstracts pertaining to all past and present employees, as may be requested by the executive director, including schedules of salaries applicable to various categories of employment.
(b) In the event payroll
abstract records have been lost or destroyed, for whatever reason or in
whatever manner, so that such schedules of salaries cannot be furnished
therefrom, the employing governmental subdivision, in lieu thereof, shall
furnish to the association an estimate of the earnings of any employee or
former employee for any period as may be requested by the executive director. If the association is provided a schedule of
estimated earnings, the executive director is authorized to use the same as a
basis for making whatever computations might be necessary for determining
obligations of the employee and employer to the general employees retirement
plan, the public employees police and fire retirement plan, or the local
government correctional employees retirement plan, or the local government
probation and telecommunicator retirement plan. If estimates are not furnished by the
employer at the request of the executive director, the executive director may
estimate the obligations of the employee and employer to the general employees
retirement fund, the public employees police and fire retirement plan, or
the local government correctional employees retirement plan, or the local
government probation and telecommunicator retirement plan based upon those
records that are in its possession.
Subd. 12. Omitted
salary deductions; obligations. (a)
In the case of omission of required deductions for the general employees
retirement plan, the public employees police and fire retirement plan, or
the local government correctional employees retirement plan, or the local
government probation and telecommunicator retirement plan from the salary
of an employee, the department head or designee shall immediately, upon
discovery, report the employee for membership and deduct the employee
deductions under subdivision 4 during the current pay period or during the pay
period immediately following the discovery of the omission. Payment for the omitted obligations may only
be made in accordance with reporting procedures and methods established by the
executive director.
(b) When the entire omission period of an employee does not exceed 60 days, the governmental subdivision may report and submit payment of the omitted employee deductions and the omitted employer contributions through the reporting processes under subdivision 4.
(c) When the omission period of an employee exceeds 60 days, the governmental subdivision shall furnish to the association sufficient data and documentation upon which the obligation for omitted employee and employer contributions can be calculated. The omitted employee deductions must be deducted from the employee's subsequent salary payment or payments and remitted to the association for deposit in the applicable retirement fund. The employee shall pay omitted employee deductions due for the 60 days prior to the end of the last pay period in the omission period during which salary was earned. The employer shall pay any remaining omitted employee deductions and any omitted employer contributions, plus interest at the applicable rate or rates specified in section 356.59, subdivision 3, compounded annually, from the date or dates each omitted employee contribution was first payable.
(d) An employer shall not hold an employee liable for omitted employee deductions beyond the pay period dates under paragraph (c), nor attempt to recover from the employee those employee deductions paid by the employer on behalf of the employee. Omitted deductions due under paragraph (c) which are not paid by the employee constitute a liability of the employer that failed to deduct the omitted deductions from the employee's salary. The employer shall make payment with interest at the applicable rate or rates specified in section 356.59, subdivision 3, compounded annually. Omitted employee deductions are no longer due if an employee terminates public service before making payment of omitted employee deductions to the association, but the employer remains liable to pay omitted employer contributions plus interest at the applicable rate or rates specified in section 356.59, subdivision 3, compounded annually, from the date the contributions were first payable.
(e) The association may not commence action for the recovery of omitted employee deductions and employer contributions after the expiration of three calendar years after the calendar year in which the contributions and deductions were omitted. Except as provided under paragraph (b), no payment may be made or accepted unless the association has already commenced action for recovery of omitted deductions. An action for recovery commences on the date of the mailing of any written correspondence from the association requesting information from the governmental subdivision upon which to determine whether or not omitted deductions occurred.
Sec. 14. Minnesota Statutes 2024, section 353.27, subdivision 12a, is amended to read:
Subd. 12a. Terminated
employees: omitted deductions. A terminated employee who was a member of
the general employees retirement plan of the Public Employees Retirement
Association, the public employees police and fire retirement plan, or
the local government correctional employees retirement plan, or the local
government probation and telecommunicator retirement plan and who has a
period of employment in which previously omitted employer contributions were
made under subdivision 12 but for whom no, or only partial, omitted employee
contributions have been made, or a member who had prior coverage in the
association for which previously omitted employer contributions were made under
subdivision 12 but who terminated service before required omitted employee
deductions could be withheld from salary, may pay the omitted employee
deductions for the period on
Sec. 15. Minnesota Statutes 2024, section 353.27, subdivision 12b, is amended to read:
Subd. 12b. Terminated
employees: immediate eligibility. If deductions were omitted from salary
adjustments or final salary of a terminated employee who was a member of the
general employees retirement plan, the public employees police and fire
retirement plan, or the local government correctional employees
retirement plan, or the local government probation and telecommunicator
retirement plan and who is immediately eligible to draw a monthly benefit,
the employer shall pay the omitted employer and employer additional
contributions plus interest on both the employer and employee amounts due at
the applicable rate or rates specified in section 356.59, subdivision 3,
compounded annually. The employee shall
pay the employee deductions within six months of an initial notification from
the association of eligibility to pay omitted deductions or the employee
forfeits the right to make the payment.
Sec. 16. Minnesota Statutes 2024, section 353.27, subdivision 13, is amended to read:
Subd. 13. Certain
warrants canceled. A warrant payable
from the general employees retirement fund, the public employees police and
fire retirement fund, or the local government correctional retirement
fund, or the local government probation and telecommunicator retirement fund
remaining unpaid for a period of six months must be canceled into the
applicable retirement fund and not canceled into the state's general fund.
Sec. 17. Minnesota Statutes 2024, section 353.27, subdivision 14, is amended to read:
Subd. 14. Periods
before initial coverage date. (a) If
an entity is determined to be a governmental subdivision due to receipt of a
written notice of eligibility from the association with respect to the general
employees retirement plan, the public employees police and fire retirement
plan, or the local government correctional retirement plan, or the
local government probation and telecommunicator retirement plan, that
employer and its employees are subject to the requirements of subdivision 12,
effective retroactively to the date that the executive director of the
association determines that the entity first met the definition of a
governmental subdivision, if that date predates the notice of eligibility.
(b) If the retroactive time period under paragraph (a) exceeds three years, an employee is authorized to purchase service credit in the applicable Public Employees Retirement Association plan for the portion of the period in excess of three years, by making payment under section 356.551. Notwithstanding any provision of section 356.551, subdivision 2, to the contrary, regarding time limits on purchases, payment of a service credit purchase amount may be made anytime before the termination of public service.
(c) This subdivision does not apply if the applicable employment under paragraph (a) included coverage by any public or private defined benefit or defined contribution retirement plan, other than a firefighters relief association. If this paragraph applies, an individual is prohibited from purchasing service credit from a Public Employees Retirement Association plan for any period or periods specified in paragraph (a).
Sec. 18. Minnesota Statutes 2024, section 353.30, subdivision 3, is amended to read:
Subd. 3. Optional retirement annuity forms. (a) The board of trustees shall establish optional annuities which shall take the form of a joint and survivor annuity. Except as provided in subdivision 3a, the optional annuity forms shall be actuarially equivalent to the forms provided in section 353.29 and subdivisions 1, 1a, 1b, 1c, and 5 or section 353H.05, subdivisions 1 and 3. In establishing those optional forms, the board shall obtain the written
(b) For purposes of computing a joint and survivor annuity, the investment return assumption specified in section 356.461 must be used rather than the investment return specified in section 356.215, subdivision 8.
Sec. 19. Minnesota Statutes 2024, section 353.33, subdivision 3, is amended to read:
Subd. 3. Computation
of benefits. (a) This disability
benefit is an amount equal to the normal annuity payable to a member who has
reached normal retirement age with the same number of years of allowable
service and the same average salary, as provided in section sections
353.01, subdivision 17a, and section 353.29, subdivision 3, or
353H.05, subdivision 1, for members of the local government probation and
telecommunicator retirement plan.
(b) A basic member shall receive a supplementary monthly benefit of $25 to age 65 or the five-year anniversary of the effective date of the disability benefit, whichever is later.
(c) If the disability benefits under this subdivision exceed the average salary as defined in section 353.01, subdivision 17a, the disability benefits must be reduced to an amount equal to the average salary.
Sec. 20. Minnesota Statutes 2024, section 353.33, subdivision 7a, is amended to read:
Subd. 7a. Trial work period. (a) This subdivision applies only to the Public Employees Retirement Association general employees retirement plan and local government probation and telecommunicator retirement plan.
(b) If, following a work or non-work-related injury or illness, a member receiving disability benefits attempts to return to work for the member's previous public employer or attempts to return to a similar position with another public employer, on a full-time or less than full-time basis, the association must continue paying the disability benefit for a period not to exceed six months. The disability benefit must continue in an amount that, when added to the subsequent employment earnings, does not exceed the base monthly salary the member had been receiving at the date of disability or the base monthly salary rate currently paid for similar positions, whichever is higher.
(c) No deductions for the general employees retirement plan may be taken from the salary of a disabled person who is attempting to return to work under this provision unless the member waives further disability benefits.
(d) A member only may return to employment and continue disability benefit payments once while receiving disability benefits from the general employees retirement plan.
Sec. 21. Minnesota Statutes 2024, section 353.33, subdivision 11, is amended to read:
Subd. 11. Coordinated member disabilitant transfer to retirement status. The disability benefits paid to a coordinated member must terminate when the person reaches normal retirement age. If the coordinated member is still totally and permanently disabled upon attaining normal retirement age, the coordinated member is deemed to be on retirement status. If an optional annuity is elected under subdivision 3a, the coordinated member shall receive an annuity under the terms of the optional annuity previously elected, or, if an optional annuity is not elected under subdivision 3a, the coordinated member may elect to receive a normal retirement annuity under section 353.29 or 353H.05 or an annuity equal to the disability benefit paid before the coordinated member reaches normal retirement age, whichever amount is greater, or elect to receive an optional annuity under section 353.30, subdivision 3. The annuity of a disabled coordinated member who attains normal retirement age must be computed under the law in effect upon attainment of normal retirement age. Election of an optional annuity must be made before the coordinated member attains normal retirement age. If an optional annuity is elected, the election is effective on the date on which the person attains normal retirement age and the optional annuity begins to accrue on the first day of the month next following the month in which the person attains that age.
Subdivision 1. Refund or deferred annuity. (a) A former member is entitled to either a refund of accumulated employee deductions under subdivision 2, or to a deferred annuity under subdivision 3. Application for a refund may not be made before the date of termination of public service. A refund must be paid within 120 days following receipt of the application unless the applicant has again become a public employee required to be covered by the association.
(b) If an individual was placed on layoff under section 353.01, subdivision 12 or 12c, a refund is not payable before termination of service under section 353.01, subdivision 11a.
(c) An individual who
terminates public service covered by the Public Employees Retirement
Association general employees retirement plan, except members of the former
Minneapolis Employees Retirement Fund under section 353.01, subdivision 2b,
paragraph (d), the Public Employees Retirement Association police and fire
retirement plan, or the public employees local government correctional
service retirement plan, or the local government probation and
telecommunicator retirement plan, and who is employed by a different
employer and who becomes an active member covered by one of the other two
plans, may receive a refund of employee contributions plus annual compound
interest from the plan from which the member terminated service at the
applicable rate specified in subdivision 2.
(d) Refunds payable to members of the former Minneapolis Employees Retirement Fund under section 353.01, subdivision 2a, paragraph (d), are governed by Minnesota Statutes 2008, chapter 422A.
Sec. 23. Minnesota Statutes 2024, section 353.34, subdivision 3, is amended to read:
Subd. 3. Deferred annuity; eligibility; computation. (a) A member who is partially or 100 percent vested under section 353.01, subdivision 47, or 353H.01, subdivision 12, when termination of public service or termination of membership occurs has the option of leaving the member's accumulated deductions in the fund and being entitled to a deferred retirement annuity commencing at normal retirement age or to a deferred early retirement annuity under section 353.30, subdivision 1a, 1b, 1c, or 5, or 353H.05, subdivision 3.
(b) The deferred annuity must be computed under section 353.29, subdivision 3, or 353H.05, subdivision 1, on the basis of the law in effect on the date of termination of public service or termination of membership, whichever is later, and, if the later of termination of public service or termination of membership is on or before December 31, 2011, the deferred annuity must be augmented as provided in paragraphs (c) to (e).
(c) The deferred annuity of any former member must be augmented from the first day of the month following the termination of active service, or July 1, 1971, whichever is later, to the effective date of retirement or, if earlier, December 31, 2018.
(d) For a person who became a public employee before July 1, 2006, and who has a termination of public service before January 1, 2012, the deferred annuity must be augmented at the following rate or rates, compounded annually:
(1) five percent until January 1, 1981;
(2) three percent from January 1, 1981, until January 1 of the year following the year in which the former member attains age 55 or December 31, 2011, whichever is earlier;
(3) five percent from January 1 of the year following the year in which the former member attains age 55, or December 31, 2011, whichever is earlier;
(5) after December 31, 2018, the deferred annuity must not be augmented.
(e) For a person who became a public employee after June 30, 2006, and who has a termination of public service before January 1, 2012, the deferred annuity must be augmented at the following rate or rates, compounded annually:
(1) 2.5 percent until December 31, 2011;
(2) one percent from January 1, 2012, until December 31, 2018; and
(3) after December 31, 2018, the deferred annuity must not be augmented.
(f) For a person who has a termination of public service after December 31, 2011, the deferred annuity must not be augmented.
(g) The retirement annuity or disability benefit of, or the survivor benefit payable on behalf of, a former member who terminated service before July 1, 1997, or the survivor benefit payable on behalf of a basic or police and fire member who was receiving disability benefits before July 1, 1997, which is first payable after June 30, 1997, must be increased on an actuarial equivalent basis to reflect the change in the investment return actuarial assumption under section 356.215, subdivision 8, from five percent to six percent under a calculation procedure and tables adopted by the board and approved by the actuary retained under section 356.214.
(h) A former member qualified to apply for a deferred retirement annuity may revoke this option at any time before the commencement of deferred annuity payments by making application for a refund. The person is entitled to a refund of accumulated member contributions within 30 days following date of receipt of the application by the executive director.
Sec. 24. Minnesota Statutes 2024, section 353.37, subdivision 5, is amended to read:
Subd. 5. Effect
on annuity. Except as provided under
this section, public service performed by an annuitant described in subdivision
1, paragraph (a), subsequent to retirement from the general employees
retirement plan, the public employees police and fire retirement plan, or
the local government correctional employees retirement plan, or the local
government probation and telecommunicator retirement plan does not increase
or decrease the amount of an annuity. The
annuitant shall not make any further contributions to a defined benefit plan
administered by the association by reason of this subsequent public service.
Sec. 25. Minnesota Statutes 2024, section 353.46, subdivision 2, is amended to read:
Subd. 2. Rights
of deferred annuitant. (a) The
entitlement of a deferred annuitant or other former member of the general
employees retirement plan of the Public Employees Retirement Association, the
public employees police and fire retirement plan, or the local
government correctional employees retirement plan, or the local government
probation and telecommunicator retirement plan to receive an annuity under
the law in effect at the time the person terminated public service is
preserved.
(b) The entitlement of a deferred annuitant or former member of the Minneapolis Employees Retirement Fund, upon merger with the general employees retirement plan of the Public Employees Retirement Association, continues under the provisions of Minnesota Statutes 2008, section 422A.16.
The general provisions
of chapter 353 apply to the local government probation and telecommunicator
retirement plan, except where otherwise specifically provided in this chapter.
Sec. 27. [353H.002]
POLICY.
It is the policy of the
legislature that special consideration should be given to the pension benefits
for employees of governmental subdivisions who devote their time and skills to
assisting the community and the courts as probation officers or serving the
public and public safety partners as telecommunicators. Because this work can be hazardous or high
stress, special provisions are made by this chapter for earlier retirement and
larger retirement annuities than are provided to members of the general employees
retirement plan under chapter 353. The
additional costs of these benefits are borne initially by the employees.
Sec. 28. [353H.01]
DEFINITIONS.
Subdivision 1. Terms. For purposes of this chapter, unless
the language or context indicates that a different meaning is intended, the
following terms have the meanings given.
The definitions in section 353.01 apply to this chapter unless the term
is defined in this section.
Subd. 2. Executive
director. "Executive
director" means the executive director of the Public Employees Retirement
Association appointed under section 353.03, subdivision 3a.
Subd. 3. Fund. "Fund" means the local
government probation and telecommunicator retirement fund.
Subd. 4. General
plan. "General
plan" means the general employees retirement plan of the Public Employees
Retirement Association.
Subd. 5. Member. "Member" means an individual
identified as a member under section 353H.03 for whom retirement coverage is
provided by the plan.
Subd. 6. Normal
retirement age. "Normal
retirement age" means age 60.
Subd. 7. Offset
amount. "Offset
amount" means an amount available to offset the cost to purchase credit
for past service upon the election by a member under section 353H.08, if state
funding becomes available.
Subd. 8. Past
service. "Past
service" means allowable service credited to a member before January 1,
2027, and covered by the general plan that would have been service covered by
the local government probation and telecommunicator retirement plan had that
plan been in effect before January 1, 2027.
Subd. 9. Plan. "Plan" means the local
government probation and telecommunicator retirement plan of the Public
Employees Retirement Association.
Subd. 10. Probation
officer. "Probation
officer" means an individual who the employer certifies, in the form
prescribed by the executive director, is a public employee as defined in
section 353.01 and:
(1) is employed as a
probation officer by a county, community corrections agency, or state probation
agency and provides community supervision services with direct offender
contact; or
(2) directly supervises one or more
individuals described in clause (1).
Subd. 11. Public
safety telecommunicator. "Public
safety telecommunicator" means an individual who the employer certifies,
in the form prescribed by the executive director, is a public employee as
defined in section 353.01, employed by a primary or secondary public safety
answering point and:
(1) serves as a first responder by receiving, assessing, or processing requests for assistance from the public and other public safety partners and coordinates the appropriate public safety response;
(2) as part of the
individual's employment position, is assigned less than 50 percent of the time
to perform employment duties other than the duties described in clause (1); or
(3) directly supervises
one or more individuals described in clause (1) or (2).
Subd. 12. Vesting
or vested. "Vesting"
or "vested" means obtaining or having obtained a nonforfeitable
entitlement to an annuity or benefit under the plan by having earned credit for
no less than three years of allowable service covered by the plan or the
general plan.
Sec. 29. [353H.02]
ADMINISTRATION AND FUND DISBURSEMENT.
Subdivision 1. Plan
administration; fund. (a) The
plan is established as a separate plan to be administered by the board of
trustees of the association and the executive director.
(b) The board of trustees and the executive director must undertake
activities in a manner consistent with chapter 356A.
(c) The association must
maintain a special fund to be known as the local government probation and
telecommunicator retirement fund.
Subd. 2. Investment. Assets of the fund must be deposited
in the Minnesota combined investment fund as provided under section 11A.14, if
applicable, or otherwise invested under section 11A.23.
Subd. 3. Fund
disbursement restricted. (a)
The fund may be disbursed only for the purposes provided for under this
chapter.
(b) The proportional
share of the necessary and reasonable administrative expenses of the
association and any benefits provided under this chapter must be paid from the
fund. Retirement annuities, disability
benefits, survivor benefits, and any refunds of accumulated deductions may only
be paid from the fund after those needs have been certified by the executive
director.
(c) The amounts
necessary to make the payments from the fund are annually appropriated from the
fund for those purposes.
Sec. 30. [353H.03]
MEMBERSHIP.
(a) The members of the
plan are probation officers and public safety telecommunicators.
(b) A probation officer
or public safety telecommunicator who first became a public employee or a
member of a pension fund listed in section 356.30, subdivision 3, before July
1, 1989, is not eligible to participate as a member of the plan.
Subdivision 1. Member
contributions. (a) A member
must make employee contributions equal to 8.82 percent of the member's salary.
(b) Employee
contributions must be made by deduction from the member's salary, as defined in
section 353.01, subdivision 10, in the manner provided in section 353.27,
subdivision 4. If any portion of a
member's salary is paid from a source other than public funds, the member's
employee contribution must be based on the total salary received by the member
from all sources.
Subd. 2. Employer
contributions. (a) The
employer of a member must make employer contributions equal to 7.5 percent of
the member's salary.
(b) Employer
contributions must be made from money available to the employing subdivision by
the means and in the manner provided under section 353.28.
Subd. 3. Deposit
of contributions. Employee
contributions under subdivision 1, employer contributions under subdivision 2,
and other amounts authorized by law, including investment return on invested
fund assets, must be deposited in the fund.
Subd. 4. Collection,
correction, and reporting of contributions.
The requirements and procedures under sections 353.27 and 353.28
apply to employee and employer contributions under this section.
Sec. 32. [353H.05]
RETIREMENT ANNUITY.
Subdivision 1. Normal
retirement annuity. After
termination of public service, a member who has attained at least normal
retirement age and is vested is entitled, upon application, to a normal
retirement annuity. The normal
retirement annuity is equal to the member's average salary multiplied by 1.9
percent for each year of allowable service.
Subd. 2. Optional
annuity; bounce-back annuity. (a)
Instead of a normal retirement annuity under subdivision 1, a member may elect
to receive an optional annuity under section 353.30, subdivision 3.
(b) A bounce-back
annuity under section 353.30, subdivisions 3a and 3c, applies to an annuity
under this section or a disability benefit under section 353H.06.
Subd. 3. Early
retirement annuity. After
termination of public service, a member who is vested and at least 55 years of
age, but not yet normal retirement age, is entitled, upon application, to an
early retirement annuity that is actuarially equivalent to the normal
retirement annuity.
Subd. 4. Allowable
service in other retirement plans. If
a member has earned allowable service in the general plan, the public employees
police and fire retirement plan, or the public employees local government
correctional service retirement plan before or after participation under this
chapter, the retirement annuity under the plan or plans must be computed in
accordance with the formula specified in sections 353.29 and 353.30, 353.651,
or 353E.04, whichever applies.
Subd. 5. Application;
annuity starting date; annuity duration.
Upon application under section 353.29, subdivision 4, the
retirement annuity under this section begins as provided in section 353.29,
subdivision 7. The retirement annuity is
payable for the life of the recipient or in accordance with the terms of any
optional annuity form selected by the member.
Subd. 6. Payment
of annuities and benefits earned under the general plan. The executive director must pay a
retirement annuity or benefit as provided under chapter 353 to a member of the
plan from the assets of the fund if the member was transferred from the general
plan to the plan on January 1, 2027, and had allowable service under the
general plan.
Subd. 7. Postretirement
adjustment eligibility. An
annuity under this section is eligible for postretirement adjustments under
section 356.415.
Sec. 33. [353H.06]
DISABILITY BENEFITS.
A vested member who
becomes totally and permanently disabled as defined in section 353.01,
subdivision 19, before normal retirement age is entitled to a disability
benefit on the same basis as a member of the general plan under sections
353.031, 353.33, and 353.335.
Sec. 34. [353H.07]
SURVIVOR BENEFITS.
Upon the death of a
member, survivor benefits are payable as provided under section 353.32 on the
same basis as a member of the general plan.
Sec. 35. [353H.08]
PURCHASE OF CREDIT FOR PAST SERVICE.
Subdivision 1. Purchase
of credit for past service. (a)
A member is entitled to elect a onetime purchase of credit for periods of past
service to be added to the member's allowable service covered by this section
and used in calculating the member's retirement annuity. The member must repay any refunds of employee
contributions previously received from the general plan before making a
purchase of past service credit under this section.
(b) A member may request
an estimate of the cost of a service credit purchase under this paragraph.
(1) A member may file a
request with the executive director for an estimate of the purchase price for
up to three different periods of past service by filing an application on a
form approved by the executive director.
(2) The member must file
the request for an estimate prior to filing an election to purchase past
service under paragraph (c).
(3) The member must
submit, with the estimate request, payment of the administrative fee in the
amount of $250 to cover the cost of preparing the estimates. If the member proceeds with the purchase, the
executive director must credit the administrative fee toward the purchase
price.
(4) The executive
director must estimate the purchase price using the assumptions and applying
any offset amount as directed under subdivision 2 for the periods of past
service requested by the member and provide the estimates to the member.
(c) To purchase credit
for past service, a member must file an application with the executive director
on a form approved by the executive director before the annuity starting date
of the member's retirement annuity or benefit.
The application must:
(1) include
documentation of the member's eligibility to make the purchase, signed written
permission to allow the executive director to request and receive verification
of applicable facts and eligibility requirements from the member's employer,
and any other relevant information the executive director may require;
(2)
state the amount of credit for past service the member plans to purchase and be
accompanied by a certification from one or more employers that the past service
fulfills the requirements under section 353H.01, subdivision 8; and
(3) if the member did not
previously pay the administrative fee under paragraph (b), include payment of
the administrative fee of $250. If the
member proceeds with the purchase, the executive director must credit the
administrative fee toward the purchase price.
(d) The executive
director must apply the assumptions and any offset amount under subdivision 2
to calculate the purchase price and notify the member. If the member elects to make the purchase of
credit for past service, the member must arrange for the transfer of pretax
money from another retirement plan. Payment
must be made in one lump sum before the annuity starting date of the member's
retirement annuity or benefit.
(e) Upon receipt of
payment, the executive director must grant the member service credit for the
period of past service for which credit was purchased.
Subd. 2. Determination
of past service purchase price. (a)
The executive director must calculate the purchase price for the period of past
service elected by the member. The
purchase price is an amount equal to the actuarial present value, on the date
of payment, of the amount of the additional retirement annuity obtained by the
additional service credit being purchased minus any offset amount.
(b) The executive
director must calculate the purchase price by:
(1) using the investment
return assumption specified in section 356.215, subdivision 8, and the
mortality table in effect for the general plan;
(2) assuming continuous
future service in the plan until the plan's minimum requirements for normal
retirement, or retirement with an annuity unreduced for retirement at an early
age, are met with the additional service credit purchased;
(3) assuming a full-time
equivalent salary or actual salary, whichever is greater, and a future salary
history that includes annual salary increases at the applicable salary increase
rate for the plan; and
(4) reducing the amount
determined under clauses (1) to (3) by any offset amount.
Sec. 36. Minnesota Statutes 2024, section 356.20, subdivision 2, is amended to read:
Subd. 2. Covered public pension plans and funds. This section applies to the following public pension plans:
(1) the general state employees retirement plan of the Minnesota State Retirement System;
(2) the general employees retirement plan of the Public Employees Retirement Association;
(3) the Teachers Retirement Association;
(4) the State Patrol retirement plan;
(5) the St. Paul Teachers Retirement Fund Association;
(6) the University of Minnesota faculty retirement plan;
(7) the University of Minnesota faculty supplemental retirement plan;
(8) the judges retirement fund;
(10) a firefighters relief association governed by section 424A.091;
(11) the public employees police and fire plan of the Public Employees Retirement Association;
(12) the correctional state employees retirement plan of the Minnesota State Retirement System;
(13) the local government correctional service retirement plan of the
Public Employees Retirement Association; and
(14) the statewide
volunteer firefighter plan.; and
(15) the local
government probation and telecommunicator retirement plan of the Public
Employees Retirement Association.
Sec. 37. Minnesota Statutes 2024, section 356.214, subdivision 1, is amended to read:
Subdivision 1. Actuary retention. (a) The governing board or managing or administrative official of each public pension plan and retirement fund or plan enumerated in paragraph (b) shall contract with an established actuarial consulting firm to conduct annual actuarial valuations and related services. The principal from the actuarial consulting firm on the contract must be an approved actuary under section 356.215, subdivision 1, paragraph (c).
(b) Actuarial services must include the preparation of actuarial valuations and related actuarial work for the following retirement plans:
(1) the teachers retirement plan, Teachers Retirement Association;
(2) the general state employees retirement plan, Minnesota State Retirement System;
(3) the correctional employees retirement plan, Minnesota State Retirement System;
(4) the State Patrol retirement plan, Minnesota State Retirement System;
(5) the judges retirement plan, Minnesota State Retirement System;
(6) the general employees retirement plan, Public Employees Retirement Association;
(7) the public employees police and fire plan, Public Employees Retirement Association;
(8) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund Association;
(9) the legislators
retirement plan, Minnesota State Retirement System; and
(10) the local government
correctional service retirement plan, Public Employees Retirement Association.;
and
(11) the local
government probation and telecommunicator retirement plan, Public Employees
Retirement Association.
(c) The actuarial valuation for the legislators retirement plan must include a separate calculation of total plan actuarial accrued liabilities due to constitutional officer coverage under section 3A.17.
The contracts must require completion of annual experience data collection and processing and a quadrennial published experience study for the plans listed in paragraph (b), clauses (1), (2), and (6), as provided for in the standards for actuarial work adopted by the commission. The experience data collection, processing, and analysis must evaluate the following:
(1) individual salary progression;
(2) the rate of return on investments based on the current asset value;
(3) payroll growth;
(4) mortality;
(5) retirement age;
(6) withdrawal; and
(7) disablement.
(e) The actuary shall annually prepare a report to the governing or managing board or administrative official and the legislature, summarizing the results of the actuarial valuation calculations. The actuary shall include with the report any recommendations concerning the appropriateness of the support rates to achieve proper funding of the retirement plans by the required funding dates. The actuary shall, as part of the quadrennial experience study, include recommendations on the appropriateness of the actuarial valuation assumptions required for evaluation in the study.
(f) If the actuarial gain and loss analysis in the actuarial valuation calculations indicates a persistent pattern of sizable gains or losses, the governing or managing board or administrative official shall direct the actuary to prepare a special experience study for a plan listed in paragraph (b), clause (3), (4), (5), (7), (8), (9), or (10), in the manner provided for in the standards for actuarial work adopted by the commission.
Sec. 38. Minnesota Statutes 2025 Supplement, section 356.215, subdivision 8, is amended to read:
Subd. 8. Actuarial assumptions. (a) The actuarial valuation must use the applicable following investment return assumption:
(b) The actuarial valuation for each of the covered retirement plans listed in section 356.415, subdivision 2, and the St. Paul Teachers Retirement Fund Association must take into account the postretirement adjustment rate or rates applicable to the plan as specified in section 354A.29, subdivision 7, or 356.415, whichever applies.
(c) The actuarial valuation must use the applicable salary increase and payroll growth assumptions found in the appendix to the standards for actuarial work. The appendix must be updated whenever new assumptions have been approved or deemed approved under subdivision 18.
(d) The assumptions set forth in the appendix to the standards for actuarial work continue to apply, unless a different salary assumption or a different payroll increase assumption:
(1) has been proposed by the governing board of the applicable retirement plan;
(2) is accompanied by the concurring recommendation of the actuary retained under section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most recent actuarial valuation report if section 356.214 does not apply; and
(3) has been approved or deemed approved under subdivision 18.
Sec. 39. Minnesota Statutes 2024, section 356.302, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) The terms used in this section are defined in this subdivision.
(b) "Average salary" means the highest average of covered salary for the appropriate period of credited service that is required for the calculation of a disability benefit by the covered retirement plan and that is drawn from any period of credited service and successive years of covered salary in a covered retirement plan.
(c) "Covered retirement plan" or "plan" means a retirement plan listed in subdivision 7.
(d) "Duty-related" means a disabling illness or injury that occurred while the person was actively engaged in employment duties or that arose out of the person's active employment duties.
(e) "General employee
retirement plan" means a covered retirement plan listed in subdivision 7,
clauses (1) to (6) and (11) (5), (10), and (11).
(g) "Public safety
employee retirement plan" means a covered retirement plan listed in
subdivision 7, clauses (7) (6) to (10) (9).
(h) "Totally and permanently disabled" means the condition of having a medically determinable physical or mental impairment that makes a person unable to engage in any substantial gainful activity and that is expected to continue or has continued for a period of at least one year or that is expected to result directly in the person's death.
Sec. 40. Minnesota Statutes 2024, section 356.302, subdivision 7, is amended to read:
Subd. 7. Covered retirement plans. This section applies to the following retirement plans:
(1) the general state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;
(2) the unclassified state employees retirement program of the Minnesota State Retirement System, established by chapter 352D;
(3) the general employees retirement plan of the Public Employees Retirement Association, established by chapter 353;
(4) the Teachers Retirement Association, established by chapter 354;
(5) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
(6) the state correctional employees retirement plan of the Minnesota State Retirement System, established by chapter 352;
(7) the State Patrol retirement plan, established by chapter 352B;
(8) the public employees police and fire plan of the Public Employees Retirement Association, established by chapter 353;
(9) the local government
correctional service retirement plan of the Public Employees Retirement
Association, established by chapter 353E; and
(10) the judges retirement
plan, established by chapter 490.; and
(11) the local
government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established by chapter 353H.
Sec. 41. Minnesota Statutes 2024, section 356.303, subdivision 4, is amended to read:
Subd. 4. Covered retirement plans. This section applies to the following retirement plans:
(1) the legislators retirement plan, established by chapter 3A;
(3) the correctional state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;
(4) the State Patrol retirement plan, established by chapter 352B;
(5) the elective state officers retirement plan, established by chapter 352C;
(6) the unclassified state employees retirement program, established by chapter 352D;
(7) the general employees retirement plan of the Public Employees Retirement Association, established by chapter 353;
(8) the public employees police and fire plan of the Public Employees Retirement Association, established by chapter 353;
(9) the local government correctional service retirement plan of the Public Employees Retirement Association, established by chapter 353E;
(10) the Teachers Retirement Association, established by chapter 354;
(11) the St. Paul
Teachers Retirement Fund Association, established by chapter 354A; and
(12) the judges retirement
fund, established by chapter 490.; and
(13) the local
government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established by chapter 353H.
Sec. 42. Minnesota Statutes 2024, section 356.315, subdivision 9, is amended to read:
Subd. 9. Future benefit accrual rate increases. After January 2, 1998, benefit accrual rate increases under section 352.115, subdivision 3; 352.87, subdivision 3; 352.93, subdivision 3; 352.95, subdivision 1; 352B.08, subdivision 2; 352B.10, subdivision 1; 353.29, subdivision 3; 353.651, subdivision 3; 353.656, subdivision 1, 1a, or 3a; 353E.04, subdivision 3; 353E.06, subdivision 1; 353H.05, subdivision 1; 354.44, subdivision 6; 354A.31, subdivision 4 or 4a; 356.30, subdivision 1; 490.121, subdivision 22; or 490.124, subdivision 1, must apply only to allowable service or formula service rendered after the effective date of the benefit accrual rate increase.
Sec. 43. Minnesota Statutes 2024, section 356.32, subdivision 2, is amended to read:
Subd. 2. Covered retirement plans. The provisions of this section apply to the following retirement plans:
(1) the general state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;
(2) the correctional state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;
(3) the State Patrol retirement plan, established under chapter 352B;
(5) the public employees police and fire plan of the Public Employees Retirement Association, established under chapter 353;
(6) the local government correctional service retirement plan of the Public Employees Retirement Association, established under chapter 353E;
(7) the Teachers Retirement
Association, established under chapter 354; and
(8) the St. Paul
Teachers Retirement Fund Association, established under chapter 354A.;
and
(9) the local government
probation and telecommunicator retirement plan of the Public Employees
Retirement Association, established under chapter 353H.
Sec. 44. Minnesota Statutes 2024, section 356.401, subdivision 3, is amended to read:
Subd. 3. Covered retirement plans. The provisions of this section apply to the following retirement plans:
(1) the legislators retirement plan, established by chapter 3A, including constitutional officers as specified in that chapter;
(2) the general state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;
(3) the correctional state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;
(4) the State Patrol retirement plan, established by chapter 352B;
(5) the unclassified state employees retirement program, established by chapter 352D;
(6) the general employees retirement plan of the Public Employees Retirement Association, established by chapter 353;
(7) the public employees police and fire plan of the Public Employees Retirement Association, established by chapter 353;
(8) the public employees defined contribution plan, established by chapter 353D;
(9) the local government correctional service retirement plan of the Public Employees Retirement Association, established by chapter 353E;
(10) the statewide lump-sum volunteer firefighter plan, established by chapter 353G;
(11) the Teachers Retirement Association, established by chapter 354;
(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
(13) the individual retirement account plan, established by chapter 354B;
(15) the judges retirement
fund, established by chapter 490.; and
(16) the local government
probation and telecommunicator retirement plan of the Public Employees
Retirement Association, established by chapter 353H.
Sec. 45. Minnesota Statutes 2024, section 356.415, is amended by adding a subdivision to read:
Subd. 1h. Annual
postretirement adjustments; Public Employees Retirement Association; local
government probation and telecommunicator plan. (a) Annuities, disability benefits,
and survivor benefits paid from the local government probation and
telecommunicator retirement plan of the Public Employees Retirement Association
must be increased, effective as of January 1, each year by the percentage of
increase determined under this subdivision.
The increase to the annuity or benefit must be determined by multiplying
the monthly amount of the annuity or benefit by the percentage of increase
specified in paragraph (b) after taking into account any reduction to the
percentage or increase required under paragraph (d).
(b) Effective January 1,
2027, and each January 1 thereafter, the percentage of increase is one percent
unless the federal Social Security Administration has announced a
cost-of-living adjustment pursuant to United States Code, title 42, section
415(i), in the last quarter of the preceding calendar year that is greater than
one percent. If the cost‑of-living
adjustment announced by the federal Social Security Administration is greater
than one percent, the percentage of increase must be the same as the cost-of-living
adjustment announced. The percentage of
increase must not exceed the applicable maximum percentage under paragraph (c).
(c) On January 1 each year, the applicable maximum percentage is 1.75 percent. The applicable maximum percentage is 1.5 percent if:
(1) the market value of
assets is equal to or less than 85 percent of the actuarial accrued liabilities
as reported by the plan's actuary in the most recent two consecutive annual
actuarial valuations; or
(2) the market value of
assets is equal to or less than 80 percent of the actuarial accrued liabilities
as reported by the plan's actuary in the most recent annual actuarial
valuation.
(d)(1) If the recipient
of an annuity, disability benefit, or survivor benefit has been receiving the
annuity or benefit for at least 12 months as of June 30 of the calendar year
immediately preceding the effective date of the increase, there is no reduction
in the percentage of increase.
(2) If the recipient of
an annuity, disability benefit, or survivor benefit has been receiving the
annuity or benefit for at least one month, but less than 12 months, as of June
30 of the calendar year immediately preceding the effective date of the increase,
the percentage of increase is multiplied by a ratio of the number of months the
annuity or benefit was received as of June 30 of the preceding calendar year to
12.
(e) An increase in
annuity or benefit payments under this subdivision must be made automatically
unless written notice is filed by the recipient with the executive director of
the Public Employees Retirement Association requesting that the increase not be
made.
Sec. 46. Minnesota Statutes 2024, section 356.415, subdivision 2, is amended to read:
Subd. 2. Covered retirement plans. The provisions of this section apply to the following retirement plans:
(1) the legislators retirement plan, established under chapter 3A, including constitutional officers as specified in that chapter;
(3) the general state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;
(4) the State Patrol retirement plan, established under chapter 352B;
(5) the general employees retirement plan of the Public Employees Retirement Association, established under chapter 353;
(6) the public employees police and fire retirement plan of the Public Employees Retirement Association, established under chapter 353;
(7) the local government correctional employees retirement plan of the Public Employees Retirement Association, established under chapter 353E;
(8) the teachers retirement
plan, established under chapter 354; and
(9) the judges retirement
plan, established under chapter 490.; and
(10) the local
government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established under chapter 353H.
Sec. 47. Minnesota Statutes 2024, section 356.461, subdivision 2, is amended to read:
Subd. 2. Covered plans. This section applies to the following retirement plans:
(1) the legislators retirement plan, established under chapter 3A, including constitutional officers as specified in that chapter;
(2) the correctional state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;
(3) the general state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;
(4) the State Patrol retirement plan, established under chapter 352B;
(5) the unclassified state employees retirement program of the Minnesota State Retirement System, established under chapter 352D;
(6) the judges retirement plan, established under chapter 490;
(7) the general employees retirement plan of the Public Employees Retirement Association, established under chapter 353;
(8) the public employees police and fire retirement plan of the Public Employees Retirement Association, established under chapter 353;
(10) the Teachers
Retirement Association, established under chapter 354.; and
(11) the local
government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established under chapter 353H.
Sec. 48. Minnesota Statutes 2024, section 356.465, subdivision 3, is amended to read:
Subd. 3. Covered retirement plans. The provisions of this section apply to the following retirement plans:
(1) the general state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;
(2) the correctional state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;
(3) the State Patrol retirement plan, established under chapter 352B;
(4) the legislators retirement plan, established under chapter 3A;
(5) the judges retirement plan, established under chapter 490;
(6) the general employees retirement plan of the Public Employees Retirement Association, established under chapter 353;
(7) the public employees police and fire plan of the Public Employees Retirement Association, established under chapter 353;
(8) the teachers retirement plan, established under chapter 354;
(9) the St. Paul
Teachers Retirement Fund Association, established under chapter 354A; and
(10) the local government
correctional service retirement plan of the Public Employees Retirement
Association, established under chapter 353E.; and
(11) the local
government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established under chapter 353H.
Sec. 49. Minnesota Statutes 2024, section 356.47, subdivision 3, is amended to read:
Subd. 3. Payment. (a) Beginning one year after the reemployment withholding period ends relating to the reemployment that gave rise to the limitation, and the filing of a written application, the retired member is entitled to the payment, in a lump sum, of the value of the person's amount under subdivision 2, plus annual compound interest. For the general state employees retirement plan, the correctional state employees retirement plan, the general employees retirement plan of the Public Employees Retirement Association, the public employees police and fire retirement plan, the local government correctional employees retirement plan, the local government probation and telecommunicator retirement plan, and the teachers retirement plan, the annual interest rate is six percent from the
(b) The written application must be on a form prescribed by the chief administrative officer of the applicable retirement plan.
(c) If the retired member dies before the payment provided for in paragraph (a) is made, the amount is payable, upon written application, to the deceased person's surviving spouse, or if none, to the deceased person's designated beneficiary, or if none, to the deceased person's estate.
(d) If the amount under subdivision 2 is an eligible rollover distribution as defined in section 356.633, subdivision 1, paragraph (d), the applicable retirement plan shall provide notice and an election:
(1) to the member regarding the member's right to elect a direct rollover under section 356.633, subdivisions 1 and 2, in lieu of a direct payment; or
(2) if paragraph (c) applies and the amount is to be paid to a person who is a distributee as defined in section 356.633, subdivision 1, paragraph (b), to the distributee regarding the distributee's right to elect a direct rollover under section 356.633, subdivisions 1 and 2, in lieu of a direct payment.
Sec. 50. Minnesota Statutes 2024, section 356.48, subdivision 1, is amended to read:
Subdivision 1. Covered plans. This section applies to the following retirement plans:
(1) the general state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;
(2) the correctional state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;
(3) the State Patrol retirement plan, established under chapter 352B;
(4) the unclassified state employees retirement program of the Minnesota State Retirement System, established under chapter 352D;
(5) the general employee retirement plan of the Public Employees Retirement Association, established under chapter 353;
(6) the public employees police and fire retirement plan, established under chapter 353;
(7) the local government correctional employees retirement plan of the Public Employees Retirement Association, established under chapter 353E;
(8) the Teachers Retirement Association, established under chapter 354;
(9) the St. Paul
Teachers Retirement Fund Association, established under chapter 354A; and
(10) the uniform judicial retirement plan,
established under chapter 490.; and
(11)
the local government probation and telecommunicator retirement plan of the
Public Employees Retirement Association, established under chapter 353H.
Sec. 51. Minnesota Statutes 2024, section 356.611, subdivision 6, is amended to read:
Subd. 6. Covered retirement plan. As used in this section, "covered retirement plan" means any of the following plans:
(1) the legislator's retirement plan, established by chapter 3A, including constitutional officers as specified in that chapter;
(2) the general state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;
(3) the correctional state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;
(4) the State Patrol retirement plan, established by chapter 352B;
(5) the unclassified state employees retirement plan, established by chapter 352D;
(6) the general employees retirement plan of the Public Employees Retirement Association, established by chapter 353;
(7) the public employees police and fire retirement plan of the Public Employees Retirement Association, established by chapter 353;
(8) the public employees defined contribution plan, established by chapter 353D;
(9) the local government correctional service retirement plan of the Public Employees Retirement Association, established by chapter 353E;
(10) the statewide volunteer firefighter retirement plan, established by chapter 353G;
(11) the Teachers Retirement Association, established by chapter 354;
(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
(13) the higher education individual retirement account plan, established by chapter 354B;
(14) the higher education supplemental retirement plan, established by chapter 354C;
(15) a retirement plan of a volunteer firefighter retirement association subject to chapter 424A;
(16) the judges retirement
plan, established by chapter 490; or
(17) the Bloomington Fire
Department Relief Association governed by Laws 2013, chapter 111, article 5,
sections 31 to 42; Minnesota Statutes 2000, chapter 424; and Laws 1965, chapter
446, as amended.; or
(18) the local
government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established under chapter 353H.
Subdivision 1. Definitions. (a) For purposes of this section, unless the language or context indicates that a different meaning is intended, the following terms have the meanings given.
(b) "Executive
director" means the executive director of the Public Employees Retirement
Association appointed under Minnesota Statutes, section 353.03, subdivision 3a.
(c) "General
plan" means the general employees retirement plan of the Public Employees
Retirement Association.
(d) "Probation and
telecommunicator plan" means the local government probation and
telecommunicator retirement plan of the Public Employees Retirement
Association.
Subd. 2. Transfer
of assets. (a) No later than
15 days after January 1, 2027, the assets attributable to the members of the
general plan whose retirement plan coverage is transferred from the general
plan to the probation and telecommunicator plan on January 1, 2027, must be
transferred from the general employees retirement fund to the local government
probation and telecommunicator retirement fund.
(b) The executive
director must direct the actuary retained by the Public Employees Retirement
Association under Minnesota Statutes, section 356.214, subdivision 1, to
calculate the amount of assets to be transferred under paragraph (a). The amount of assets to be transferred must
be calculated as provided in the applicable appendix to the standards for
actuarial work adopted under Minnesota Statutes, section 3.85, subdivision 10.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 53. EFFECTIVE
DATE.
Sections 1 to 44 and
sections 46 to 52 are effective January 1, 2027. Section 45 is effective for postretirement
adjustments beginning on or after January 1, 2027.
ARTICLE 6
PROBATION AND TELECOMMUNICATOR PLANS; TRANSFERS FROM THE GENERAL FUND; TEMPORARY REDUCTION IN EMPLOYEE CONTRIBUTION RATES
Section 1. TRANSFERS
FROM THE GENERAL FUND TO THE PENSION FUNDS FOR PROBATION OFFICERS AND
TELECOMMUNICATORS.
Subdivision 1. Transfer
to the local government probation and telecommunicator retirement fund. $2,610,000 in fiscal year 2027 is
transferred from the general fund to the local government probation and
telecommunicator retirement fund established by Minnesota Statutes, section
353H.02, subdivision 1. This is a
onetime transfer. This transfer must be
made no later than January 15, 2027.
Subd. 2. Transfer
to the general state employees retirement fund. $390,000 in fiscal year 2027 is
transferred from the general fund to the general state employees retirement
fund established by Minnesota Statutes, section 352.04, subdivision 1, for the
benefit of the probation officers and public safety telecommunicators as
defined by Minnesota Statutes, section 352.88, subdivision 2, clauses (i) and
(j), respectively. This is a onetime
transfer. This transfer must be made no
later than January 15, 2027.
Subdivision 1. Employee
contributions to the MSRS probation and telecommunicator subplan. The additional employee contribution
required under Minnesota Statutes, section 352.88, subdivision 5, paragraph
(a), is reduced from 2.71 percent of salary to two percent of salary through
August 31, 2028.
Subd. 2. Employee
contributions to the PERA probation and telecommunicator plan. The employee contribution required
under Minnesota Statutes, section 353H.04, subdivision 1, paragraph (a), is
reduced from 8.82 percent of salary to eight percent of salary through August
31, 2028.
Subd. 3. Expiration. This section expires September 1,
2028.
Sec. 3. EFFECTIVE
DATE.
Sections 1 and 2 are
effective January 1, 2027.
ARTICLE 7
VOLUNTEER FIREFIGHTERS
Section 1. Minnesota Statutes 2024, section 353G.02, subdivision 4, is amended to read:
Subd. 4. Periodic
audit; biennial actuarial valuation; biennial annual funding
report. (a) The legislative auditor
shall periodically audit the retirement fund.
(b) The executive director must retain an approved actuary under section 356.214 to perform biennial actuarial valuations of each fire department account in the monthly division. The actuarial valuation must conform with section 356.215 and the standards for actuarial work. The actuarial valuation must contain sufficient detail for each participating employer to ascertain the actuarial condition of its account in the retirement fund and the amount of its required contribution to the account.
(c) The executive director
must perform biennial annual funding assessments of each fire
department account in the lump-sum division defined benefit plan. The assessment must comply with section
353G.08, subdivision 1 or 1a, as applicable.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 2. Minnesota Statutes 2024, section 353G.08, subdivision 1, is amended to read:
Subdivision 1. Biennial
Annual funding reports; lump-sum division. (a) The executive director must annually
determine the funding requirements for each fire department account in the
lump-sum division on or before August 1 every other year. The funding requirements computed under this
subdivision must be determined using a mathematical procedure developed and
certified as accurate by the approved actuary retained by the association and
must be based on present value factors using a six percent investment return
rate, without any decrement assumptions.
The executive director must provide written notice of the funding
requirements to the entity or entities associated with the fire department
whose active firefighters are covered by the plan.
(b) The overall funding balance of each fire department account for the current calendar year must be determined in the following manner:
(1) The total accrued liability for all active and deferred members of the fire department as of December 31 of the current year must be calculated based on the service credit of active and deferred members as of that date.
(3) The amount of the assets calculated under clause (2) must be subtracted from the amount of the total accrued liability calculated under clause (1). If the amount of the assets exceeds the amount of the total accrued liability, then the account is considered to have a surplus over full funding. If the amount of the assets is less than the amount of the total accrued liability, then the account is considered to have a deficit from full funding. If the amount of assets is equal to the amount of the total accrued liability, then the account is considered to be fully funded.
(c) The financial requirements of each fire department for the following calendar year must be determined in the following manner:
(1) The total accrued liability for all active and deferred members of the fire department as of December 31 of the calendar year next following the current calendar year must be calculated based on the service used in the calculation under paragraph (b), clause (1), increased by one year.
(2) The increase in the total accrued liability of the account for the following calendar year over the total accrued liability of the account for the current year must be calculated.
(3) The amount of administrative expenses of the account must be calculated by multiplying the per-person dollar amount of the administrative expenses for the most recent prior calendar year by the number of active and deferred firefighters reported to the association on the most recent service credit certification form for the account.
(4) If the account is fully funded, the financial requirement of the account for the following calendar year is the total of the amounts calculated under clauses (2) and (3).
(5) If the account has a deficit from full funding, the financial requirement of the account for the following calendar year is the total of the amounts calculated under clauses (2) and (3) plus an amount equal to one-tenth of the amount of the deficit from full funding of the account.
(6) If the account has a surplus over full funding, the financial requirement of the account for the following calendar year is the financial requirement of the account calculated as though the account was fully funded under clause (4) and, if the account has also had a surplus over full funding during the prior two years, additionally reduced by an amount equal to one-tenth of the amount of the surplus over full funding of the account.
(d) The required contribution of the entity or entities associated with the fire department whose active firefighters are covered by the lump-sum division is the annual financial requirements of the fire department account under paragraph (c) reduced by the amount of any fire state aid payable under chapter 477B or police and firefighter retirement supplemental state aid payable under section 423A.022 that is reasonably anticipated to be received by the retirement plan attributable to the entity or entities during the following calendar year, and an amount of investment earnings on the assets projected to be received during the following calendar year calculated at the rate of six percent per annum. The required contribution must be allocated between the entities if more than one entity is involved. A reasonable amount of anticipated fire state aid is an amount that does not exceed the fire state aid received in the prior year multiplied by the factor 1.035.
(e) The financial
requirement for each fire department account in the lump-sum division for the
second year of the biennial valuation period must be in the amount determined
in paragraph (d) increased by six percent, but no more than the excess, if any,
of the amount determined under paragraph (c), clause (1), less the actual
market value of assets in the fire department account as of that date.
(f)
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 3. Minnesota Statutes 2024, section 424A.001, subdivision 8, is amended to read:
Subd. 8. Firefighting service. "Firefighting service" means duties performed by firefighters and, if approved by the appropriate municipality or municipalities under section 424A.01, duties performed by fire prevention personnel and volunteer emergency medical personnel.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 4. Minnesota Statutes 2024, section 424A.001, subdivision 9, is amended to read:
Subd. 9. Separate
from active service. "Separate
from active service" means that a firefighter permanently ceases
ceasing to perform fire suppression duties and fire prevention duties
and, permanently ceases to supervise fire suppression, and fire
prevention duties all firefighting service with a particular fire
department.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 5. Minnesota Statutes 2024, section 424A.001, subdivision 9a, is amended to read:
Subd. 9a. Break
in service. "Break in
service" means temporarily ceasing all of the following to
perform and supervise all firefighting service with a particular fire
department: .
(1) performing fire
suppression duties;
(2) performing fire
prevention duties;
(3) supervising fire
suppression duties; and
(4) supervising fire
prevention duties.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 6. Minnesota Statutes 2024, section 424A.001, subdivision 9b, is amended to read:
Subd. 9b. Firefighter. "Firefighter" means a person who is a member of a fire department and a volunteer firefighter, paid on-call firefighter, part-time firefighter, full-time firefighter, career firefighter, or any combination thereof and who, in that capacity, engages in firefighting service.
EFFECTIVE
DATE. This section is
effective January 1, 2027.
Subdivision 1. Return
to active firefighting without prior receipt of pension or benefit. (a) This subdivision governs the
service pension calculation requirements of a firefighter who returns to active
service after a break in service and who has not previously been paid a service
pension or disability benefit from the relief association. This subdivision applies to all breaks in
service, except that the resumption service requirements of this subdivision do
not apply to leaves of absence made available by federal or state statute.
(b) If a firefighter who
has a break in service of any duration resumes performing active firefighting
with the fire department associated with the relief association and if
permitted in the bylaws of the relief association, the firefighter may again
become an active member of the relief association, subject to the requirements
of this subdivision and the service pension calculation requirements under this
section.
(c) A firefighter who
has been granted an approved leave of absence not exceeding one year by the
fire department or the relief association is exempt from any minimum period of
resumption service requirement established under paragraph (f).
(d) A firefighter who
has a break in service not exceeding one year but has not been granted an
approved leave of absence may be made exempt from any minimum period of
resumption service requirement established under paragraph (f).
(e) A firefighter may
qualify to receive a service pension from the relief association for the
original and resumption service periods if the firefighter:
(1) is a former
firefighter who has not been paid a service pension or disability benefit;
(2) returns to active
relief association membership under paragraph (b); and
(3) meets the service
requirements of section 424A.016, subdivision 3, or 424A.02,
subdivision 2, as applicable, and as defined in the bylaws in effect on the
date of the firefighter's separation from active service, based on the original
and resumption years of service credit.
(f) A defined benefit
relief association may define in the relief association's bylaws a minimum
period of resumption service requirement that applies to firefighters who
return to active membership and who have not been paid a service pension or
disability benefit for their original period of service. The service pension benefit level used to
calculate any service pension payable for both the original and resumption
service periods is:
(1) the service pension
benefit level in effect on the date of the firefighter's separation from active
resumption service if a minimum period of resumption service requirement is
defined in the bylaws and is completed prior to a firefighter's cessation of
resumption service or if no resumption service is defined in the bylaws; or
(2) the service pension
benefit level in effect on the date of the firefighter's termination of
original service if a minimum period of resumption service requirement is
defined in the bylaws but is not completed prior to a firefighter's cessation
of resumption service.
(g) Any service pension
payable under this subdivision is less any amounts previously forfeited under
section 424A.016, subdivision 4, or 424A.02, subdivision 3, paragraph (c), as
applicable.
Subd. 2. Return
to active firefighting after receipt of pension or benefit. (a) This subdivision governs the
service pension calculation requirements of a firefighter who resumes
performing active firefighting service with the fire department associated with
the relief association after being paid a service pension or disability benefit
from the
relief association.
The firefighter must wait at least 60 days following receipt of the
pension or benefit before resuming active firefighting service with the fire
department and, if permitted in the bylaws of the relief association, active
membership in the relief association.
(b) A firefighter may
qualify to receive a service pension from the relief association for the
resumption service period if the firefighter:
(1) is a former
firefighter who has been paid a service pension or disability benefit or is
receiving a monthly benefit service pension;
(2) returns to active
relief association membership; and
(3) meets the service requirements defined in the relief association's bylaws in effect on the date of the firefighter's separation from active service and, as applicable:
(i) paragraph (g);
(ii) section 424A.016,
subdivision 3; or
(iii) section 424A.02,
subdivision 2.
(c) For defined benefit
relief associations, the service pension for the resumption service period must
be calculated by applying the service pension benefit level in effect on the
date of the firefighter's termination of resumption service for all years of
the resumption service.
(d) For defined
contribution relief associations, the service pension for the resumption
service period must be calculated to include allocations credited to the
firefighter's individual account during the resumption period of service and
deductions for administrative expenses, if applicable.
(e) If provided in the
bylaws, a firefighter who returns to active relief association membership may
continue to collect a monthly service pension from the relief association,
notwithstanding the requirement under section 424A.02, subdivision 1, that the
firefighter has separated from active service.
(f) If a firefighter
receiving a monthly benefit service pension returns to active monthly benefit
relief association membership under paragraph (b):
(1) the firefighter's
monthly service pension payments are suspended as of the first day of the month
next following the date on which the firefighter returns to active membership
if the relief association bylaws prohibit the firefighter from collecting a
monthly service pension;
(2) the firefighter is
entitled to an additional monthly benefit service pension upon a subsequent
cessation of duties calculated based on the resumption service credit and the
service pension accrual amount in effect on the date of the termination of the
resumption service; and
(3) if the monthly
service pension payments were suspended under clause (1), the suspended initial
service pension resumes as of the first of the month next following the
termination of the resumption service.
(g) A relief association
may define in the relief association's bylaws vesting requirements that apply
solely to former firefighters who have been paid a service pension or
disability benefit and subsequently return to active relief association
membership. If a relief association
elects to define vesting requirements that are applicable solely to these
former firefighters, the requirements may be different than the requirements
for all other relief association members and need not comply with the service requirements
of section 424A.016, subdivision 3, or 424A.02, subdivision 2, as applicable,
but cannot require more than 20 years of active service for full vesting.
(h) No
firefighter may be paid a service pension more than once for the same period of
service.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 8. Minnesota Statutes 2024, section 424A.014, subdivision 1, is amended to read:
Subdivision 1. Financial
report and audit. (a) An annual
financial report and audited financial statements in accordance with paragraphs
(c) to (e) must be submitted by the board of trustees of the Bloomington Fire
Department Relief Association and the board of trustees of each firefighters
relief association with special fund assets of at least $750,000 $1,000,000
or special fund liabilities of at least $750,000 $1,000,000,
according to any the previous year's financial report.
(b) The board of trustees
of a firefighters relief association with special fund assets of less than $750,000
$1,000,000 and special fund liabilities of less than $750,000 $1,000,000,
according to each the previous year's financial report, may
submit an annual financial report and audited financial statements in
accordance with paragraphs (c) to (e). If
the special fund assets or special fund liabilities of a firefighters relief
association to which this paragraph applies subsequently exceed $1,000,000 as of
the beginning of a calendar year, then an annual financial report and audited
financial statements are required under paragraph (a), beginning with reports
filed with the state auditor in the calendar year following the calendar year
in which the $1,000,000 threshold was exceeded.
(c) The financial report must cover the relief association's special fund and general fund and be in the style and form prescribed by the state auditor. The financial report must be countersigned by:
(1) the municipal clerk or clerk-treasurer of the municipality in which the relief association is located if the relief association is directly associated with a municipal fire department;
(2) the municipal clerk or clerk-treasurer of the largest municipality in population that contracts with the independent nonprofit firefighting corporation if the firefighters relief association is a subsidiary of an independent nonprofit firefighting corporation, and by the secretary of the independent nonprofit firefighting corporation; or
(3) the chief financial official of the county in which the firefighters relief association is located or primarily located if the relief association is associated with a fire department that is not located in or associated with an organized municipality.
(d) The financial report must be retained in the office of the Bloomington Fire Department Relief Association or the firefighters relief association for public inspection and must be filed with the governing body of the government subdivision in which the associated fire department is located after the close of the fiscal year. One copy of the financial report must be furnished to the state auditor on or before June 30 after the close of the fiscal year.
(e) Audited financial statements that present the true financial condition of the relief association's special fund and general fund must be attested to by a certified public accountant or by the state auditor and must be filed with the state auditor on or before June 30 after the close of the fiscal year. Audits must be conducted in compliance with generally accepted auditing standards and section 6.65 governing audit procedures. The state auditor may accept audited financial statements in lieu of the financial report required in paragraph (a).
EFFECTIVE DATE. This
section is effective December 31, 2026, and applies to audited financial
statements for calendar year 2026 and thereafter. A relief association with special fund assets
of less than $1,000,000 and special fund liabilities of less than $1,000,000 on
December 31, 2026, is not required to submit audited financial statements under
Minnesota Statutes, section 424A.014, subdivision 1, unless and until the
association's special fund assets or special fund liabilities exceed
$1,000,000, even if audited financial statements were required on the date
immediately prior to December 31, 2026.
Subd. 4. Individual accounts. (a) An individual account must be established for each firefighter who is a member of the relief association.
(b) To each individual active member account must be credited an equal share of:
(1) any amounts of fire state aid and police and firefighter retirement supplemental state aid received by the relief association;
(2) any amounts of municipal contributions to the relief association raised from levies on real estate or from other available municipal revenue sources exclusive of fire state aid; and
(3) any amounts equal to the share of the assets of the special fund to the credit of:
(i) any former member who terminated active service with the fire department to which the relief association is associated before meeting the minimum service requirement provided for in subdivision 2, paragraph (b), and either has not returned to active service with the fire department for a period no shorter than five years or has died and no survivor benefit or death benefit is payable; or
(ii) any member who terminated active service before becoming 100 percent vested in the member's account under subdivision 2, paragraph (b), and any applicable provision of the bylaws of the relief association.
(c) In addition, any investment return on the assets of the special fund must be credited in proportion to the share of the assets of the special fund to the credit of each individual active member account and inactive member account, unless the inactive member is a deferred member as defined in subdivision 6.
(d) Administrative expenses of the relief association payable from the special fund may be deducted from individual accounts in a manner specified in the bylaws of the relief association.
(e) Amounts to be credited
to individual accounts under paragraph (b) must be allocated uniformly for all
years of active service and allocations must be made for all years of service,
except for caps on service credit if so provided in the bylaws of the relief
association. Amounts forfeited under
paragraph (b), clause (3), before a resumption of active service and membership
under section 424A.01, subdivision 6, 424A.012 remain forfeited
and may not be reinstated upon the resumption of active service and membership. The allocation method may utilize monthly
proration for fractional years of service, as the bylaws or articles of
incorporation of the relief association so provide. The bylaws or articles of incorporation may
define a "month," but the definition must require a calendar month to
have at least 16 days of active service.
If the bylaws or articles of incorporation do not define a
"month," a "month" is a completed calendar month of active
service measured from the member's date of entry to the same date in the
subsequent month.
(f) At the time that the payment of a service pension commences under subdivision 2 and any applicable provision of the bylaws of the relief association, a retiring member is entitled to that portion of the assets of the special fund to the credit of the member in the individual member account which is nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief association based on the number of years of service to the credit of the retiring member.
(g) Annually, the secretary of the relief association shall certify the individual account allocations to the state auditor at the same time that the annual financial statement or financial report and audit of the relief association, whichever applies, is due under section 424A.014.
EFFECTIVE
DATE. This section is
effective January 1, 2027.
Subd. 6. Deferred service pensions. (a) A "deferred member" means a member of a relief association who has separated from active service and membership and has completed the minimum service and membership requirements in subdivision 2. The requirement that a member separate from active service and membership is waived for any person who has discontinued volunteer firefighter and paid on-call firefighter duties and is employed on a part-time or full-time basis under section 424A.015, subdivision 1.
(b) A deferred member is entitled to receive a deferred service pension as soon as practicable after the member submits a valid written application for the distribution and complies with any conditions as to age prescribed by the relief association's bylaws.
(c) A defined contribution
relief association must credit interest or additional investment
performance on the deferred lump-sum service pension during the period of
deferral for all deferred members on or after January 1, 2021. A defined contribution relief association may
specify in its bylaws the method by which it will credit interest or
additional investment performance to the accounts of deferred members. Such method shall be limited to one of the
three methods provided in this paragraph.
In the event the bylaws do not specify a method, the interest or
additional investment performance must be credited using the method defined in
clause (3). The permissible methods are:
(1) at the investment performance rate actually earned on that portion of the assets if the deferred benefit amount is invested by the relief association in a separate account established and maintained by the relief association;
(2) at the investment performance rate actually earned on that portion of the assets if the deferred benefit amount is invested in a separate investment vehicle held by the relief association; or
(3) at the investment return on the assets of the special fund of the defined contribution relief association in proportion to the share of the assets of the special fund to the credit of each individual deferred member account.
(d) Notwithstanding the requirements of section 424A.015, subdivision 6, bylaw amendments made in accordance with paragraph (c) on or before January 1, 2022, shall apply to members already in deferred status as of January 1, 2021.
(e) Unless the bylaws provide
differently, interest or additional investment performance must be
allocated to each deferred member account beginning on the date that the member
separates from active service and membership and ending on the last date that
the deferred member account is valued before the final distribution of the
deferred service pension.
(f) Notwithstanding the requirements of section 424A.015, subdivision 6, a relief association that amends its bylaws to lower the required minimum retirement age may specify in the bylaws amendment that the lower minimum retirement age applies to members who separated from active service and membership prior to the effective date of the bylaws amendment.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 11. Minnesota Statutes 2025 Supplement, section 424A.05, subdivision 3, is amended to read:
Subd. 3. Authorized disbursements from special fund. (a) Disbursements from the special fund may not be made for any purpose other than one of the following:
(1) for the payment or direct rollover under section 356.633 of service pensions to members of the relief association if authorized and paid under law and the bylaws governing the relief association;
(3) for the payment or direct rollover under section 356.633 of temporary or permanent disability benefits to disabled members of the relief association if authorized and paid under law and specified in amount in the bylaws governing the relief association;
(4) for the payment or direct rollover under section 356.633 of survivor benefits or for the payment of a death benefit to the estate of the deceased active or deferred firefighter, if authorized and paid under law and specified in amount in the bylaws governing the relief association;
(5) for the payment of the fees, dues and assessments to the Minnesota State Fire Department Association and to the Minnesota State Fire Chiefs Association in order to entitle relief association members to membership in and the benefits of these associations or organizations;
(6) for the payment of insurance premiums to the state Volunteer Firefighters Benefit Association, or an insurance company licensed by the state of Minnesota offering casualty insurance, in order to entitle relief association members to membership in and the benefits of the association or organization;
(7) for the payment of administrative expenses of the relief association as authorized under subdivision 3b; and
(8) for the payment or direct rollover under section 356.633 of a service pension to the former spouse of a member or former member of a relief association, if the former spouse is an alternate payee designated in a qualified domestic relations order under subdivision 5.
(b) Checks or authorizations for electronic fund transfers for disbursements authorized by this section must be signed by the relief association treasurer and at least one other elected trustee who has been designated by the board of trustees to sign the checks or authorizations. A relief association may make disbursements authorized by this subdivision by electronic fund transfers only if the specific method of payment and internal control policies and procedures regarding the method are approved by the board of trustees.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 12. Minnesota Statutes 2024, section 424B.22, subdivision 5, is amended to read:
Subd. 5. Determination
of assets and liabilities. (a) The
board of trustees shall must determine the following as of the
date of termination of the retirement plan:
(1) the fair market value of the assets of the special fund;
(2) the present value of
each participant's accrued benefit, taking into account full vesting under
subdivision 3 and any increased lump-sum or monthly benefit level approved
under subdivision 4;
(3) the present value of
any benefit remaining to be paid to each any retiree in pay
status, if any and to any other benefit recipient; and
(4) administrative expenses incurred or reasonably anticipated to be incurred through the date on which all retirement benefits have been distributed or transferred or, if later, the effective date of the dissolution of the relief association.
(b) The board of trustees shall
must compile a schedule that includes the following information:
(1) the name of each
participant, including each retiree in pay status, to whom a an
accrued benefit or pension is or will be owed;
(3) for each individual
described in clauses (1) and (2), the amount of the benefit or pension
to which the individual is entitled under the bylaws of the relief association,
taking into account the changes required or permitted by this section, and
the corresponding number of years of service on which the benefit or pension
is based, and the earliest date on which the benefit or pension would have
been payable under the bylaws of the relief association.
(c) If the relief
association is dissolving, in addition to the determination under paragraph (a)
for the retirement plan, the board of trustees shall must
determine, as of the effective date of the dissolution of the relief
association, the legal obligations of the general fund of the relief
association.
EFFECTIVE DATE. This section is effective the day following final enactment.
Sec. 13. Minnesota Statutes 2024, section 424B.22, subdivision 7, is amended to read:
Subd. 7. Allocation
of surplus. (a) If the retirement
plan is a defined benefit plan and if, after completing the determination of
assets, liabilities, and administrative expenses under subdivision 5, there
is the retirement plan's assets exceed liabilities and administrative
expenses, resulting in a surplus, the board of trustees shall must
transfer to the affiliated municipality the lesser of (1) the amount of the
surplus, or (2) the sum of all required contributions, without investment
earnings or interest thereon, made by the municipality to the relief
association during the year in which the termination of the retirement plan
occurs or during the preceding nine years.
(b) If the affiliated municipality did not make any required contributions to the relief association during the current or preceding nine years or if, after the transfer described in paragraph (a), there is surplus remaining, the relief association and the municipality will mutually agree on an allocation between them of the remaining surplus.
(c) If, within 180 days of
after the date of termination of the retirement plan, the municipality
and relief association have not reached an agreement on the allocation of the
surplus under paragraph (b), then 50 percent of the surplus shall must
be retained by the relief association and 50 percent of the surplus shall
must be transferred to the affiliated municipality.
(d) Any surplus retained by
the relief association under paragraph (c) shall must be
allocated among all participants eligible to share in the surplus under
paragraph (e) in the same proportion that the present value of the
accrued benefit for each eligible participant bears to the total present
value of the accrued benefits of all participants eligible to share in the
surplus, and each eligible participant's accrued benefit, as determined
under subdivision 5, paragraph (a), clause (2), shall must be
increased by the participant's share of the surplus. If a participant is receiving or has
elected to receive a monthly pension, the participant's accrued benefit for the
purpose of allocating surplus is the lump sum present value of the monthly
pension benefit to which the participant is entitled to receive.
(e) The board of
trustees shall must determine eligibility to share in the
surplus, which may include all participants and any former participants who,
within the last three years or such other number of years as determined by the
board of trustees, separated from active service and received their retirement
benefit. If the board of trustees
decides to include former participants in the allocation of the surplus, the
board of trustees shall must modify the method for allocating the
surplus to take into account the former participants.
(e) (f) Any
amount of surplus transferred to the affiliated municipality under this
subdivision may only be used for the purposes described in section 424A.08,
paragraph (a) or (b).
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Subd. 8. Immediate
distribution of retirement benefits and payment of all other obligations. (a) The board of trustees shall must
liquidate the assets of the special fund and pay retirement benefits and
administrative expenses under the retirement plan within 210 days after the
effective date of the termination of the retirement plan.
(b) If the retirement plan
is a defined benefit plan that pays lump-sum benefits or a defined contribution
plan, without regard to whether the participant has attained age 50, the
board of trustees must offer each participant and other benefit recipient shall
be permitted the option to elect an immediate distribution or a
direct rollover of the participant's benefit to an eligible retirement
plan as permitted under section 356.633, subdivisions 1 and 2, if the benefit
is an eligible rollover distribution as defined in section 356.633, subdivision
1, paragraph (d).
(c) If the retirement plan
is a defined benefit plan that pays monthly pension benefits, the board of
trustees shall must, at the election of the participant or other
benefit recipient, purchase an annuity contract under section 424A.015,
subdivision 3, naming the participant or other benefit recipient, as
applicable, as the insured or distribute a lump-sum amount that is equal to the
present value of the monthly pension benefits to which the participant or other
benefit recipient is entitled. If an
annuity is elected by the participant or other benefit recipient, the annuity shall
must provide for commencement at a date elected by the insured, to be
paid as an annuity for the life of the insured.
The board of trustees must transfer legal title to the annuity
contract shall be transferred to the insured. If the participant or other benefit
recipient elects a lump sum is elected amount, the board
of trustees must offer the participant or other benefit recipient the
option under paragraph (b) to take an immediate distribution or a direct
rollover shall apply.
(d) The board of trustees shall
must complete the distribution of all assets of the special fund by
making any remaining distributions or transfers as required under subdivision 9
on behalf of participants or other benefit recipients who cannot be located or
are unresponsive nonresponsive and paying any remaining
administrative expenses related to the termination of the plan.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 15. Minnesota Statutes 2024, section 424B.22, subdivision 9, as amended by Laws 2026, chapter 56, section 36, is amended to read:
Subd. 9. Missing
or nonresponsive participants. (a)
For purposes of this subdivision, the terms defined in this subdivision have
the meanings given them.
(b) "Retirement
benefit" means:
(1) the participant's
account balance if the retirement plan is a defined contribution plan;
(2) the participant's
lump-sum benefit if the retirement plan is a defined benefit plan that pays a
lump sum; or
(3) an amount equal to
the present value of the participant's benefit if the retirement plan is a
defined benefit plan that pays a monthly annuity.
(c) "Individual
retirement account" means an account that satisfies the requirements of
section 408(a) of the Internal Revenue Code which is established by an officer
of the relief association in the name of the participant or other benefit recipient
at a financial institution insured federally or by an approved credit union
guaranty corporation.
(d)shall must make a
diligent effort to obtain a current address or other contact information as
follows:
(1) send a notice to the address on file for the participant or other benefit recipient using certified mail;
(2) check with the Minnesota State Fire Department Association, the municipality, and any other employer of the participant;
(3) check with the participant's designated beneficiary on file with the relief association; and
(4) use one or more of the Internet search tools that are free of charge.
(e) The board of
trustees shall (b) The board of trustees must dispose of the retirement
benefit of a participant or other benefit recipient under clause (1) or (2) if
the board of trustees is unable to locate the participant or other benefit
recipient after taking the actions described in paragraph (a) or the
participant or other benefit recipient does not make an election of a
distribution or direct rollover under subdivision 8, paragraph (b), or an
annuity or lump sum distribution or direct rollover under subdivision 8,
paragraph (c). The board of trustees
must:
(1) transfer the retirement benefit to an individual retirement account that satisfies the requirements of section 408(a) of the Internal Revenue Code and is established by an officer of the relief association in the name of the participant or other benefit recipient at a federally insured financial institution; or
(2) consider the
retirement benefit abandoned and deposit funds in the amount of the retirement
benefit with the commissioner of commerce under chapter 345, notwithstanding
any laws to the contrary, including section 345.381, if the board of
trustees is unable to locate the participant or other benefit recipient after
taking the actions described in paragraph (d) or the participant or other
benefit recipient does not elect to receive or rollover a retirement benefit to
which the participant or other benefit recipient is entitled.
(c) For the purpose of
this subdivision, a retirement benefit that is a monthly pension or annuity may
be disposed of under paragraph (b) by converting the monthly pension or annuity
to a lump sum that is equal to the present value of the monthly pension or
annuity to which the participant or other benefit recipient is entitled.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 16. TRANSFER
OF MAPLE PLAIN FIRE DEPARTMENT RECORDS, ASSETS, AND LIABILITIES FROM THE
STATEWIDE VOLUNTEER FIREFIGHTER PLAN.
(a) No later than 60
days after the effective date, the executive director of the Public Employees
Retirement Plan must transfer the records, assets, and liabilities of the Maple
Plain fire department to the Maple Plain Fire Relief Association.
(b) Minnesota Statutes,
section 353G.17, applies to the transfer under paragraph (a) except as modified
by clauses (1) to (9) of this paragraph.
(1) Subdivision 1,
paragraph (b), clause (3), does not apply.
(2) Subdivision 1,
paragraphs (c) and (d), do not apply.
(3) Subdivision 2,
paragraph (a), clause (2), does not apply.
(4) Subdivision 2,
paragraphs (b) and (c), do not apply.
(5)
Subdivision 3, paragraph (a), is revised to require that the vote be conducted
by the board of trustees of the Maple Plain Fire Relief Association, rather
than the executive director of the Public Employees Retirement Association, and
that the vote by members of the Maple Plain Fire Relief Association must occur
no earlier than four months before the effective date and no later than 30 days
after the effective date.
(6) Subdivision 3,
paragraphs (c) to (e), do not apply.
(7) Subdivision 4,
paragraph (a), is revised to require the Statewide Volunteer Firefighter Plan
to make the transfer described in paragraph (a) upon completion of the actions
required under Minnesota Statutes, section 353G.17, subdivisions 1 to 3, as revised
by this section, and to replace "as of the effective date identified in
the notice under subdivision 1," with "no later than 60 days after
the effective date."
(8) Subdivision 5,
paragraph (d), is revised to add at the end of paragraph (d): "For the purpose of this section, the
"value" of a firefighter's benefit means the amount determined by
multiplying the firefighter's years of service by the benefit level applicable
to the firefighter as determined under Minnesota Statutes, section 424B.22."
(9) Subdivision 6 is revised to delete the
phrase "or the requirements of subdivision 2, paragraph (b), are not
met."
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 17. PENSION
PAYMENTS AND PLAN TERMINATION.
Upon completion of the
transfer of records, assets, and liabilities under section 14 to the Maple
Plain Fire Relief Association, the Maple Plain Fire Relief Association must
make pension benefit payments in accordance with Minnesota Statutes, section
424B.22, as amended and in effect on the date payments are made, and
subsequently terminate and dissolve the relief association in accordance with
Minnesota law.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 18. PAYMENT
OF SUPPLEMENTAL BENEFITS.
(a) The city of Maple
Plain is authorized, but not required, to pay supplemental benefits due under
Minnesota Statutes, section 424A.10, to each qualified recipient or survivor,
as defined in Minnesota Statutes, section 424A.10, of the Maple Plain Fire Relief
Association. If the city of Maple Plain
pays supplemental benefits, the city is eligible for reimbursement from the
commissioner of revenue under Minnesota Statutes, section 424A.10, for the
amount of supplemental benefits paid.
(b) If the city of Maple
Plain pays supplemental benefits due under Minnesota Statutes, section 424A.10,
as authorized by paragraph (a), the Maple Plain Fire Relief Association is
deemed to have satisfied the requirement under Minnesota Statutes, section
424A.10, to pay supplemental benefits.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 19. REPEALER.
Minnesota Statutes 2024,
section 424A.01, subdivision 6, is repealed.
EFFECTIVE DATE. This
section is effective January 1, 2027.
ALL PUBLIC PENSION PLANS
Section 1. Minnesota Statutes 2024, section 43A.346, subdivision 8, is amended to read:
Subd. 8. No
Service credit; contributions. (a)
Notwithstanding any law to the contrary, a person may not earn service credit
in the Minnesota State Retirement System or the Public Employees Retirement
Association for employment covered under this section, and employer
contributions and payroll deductions for the retirement fund must not be made
based on earnings of a person working under this section.
(b) A person employed in
a postretirement option position must not be required to make payroll deduction
contributions to the Minnesota State Retirement System or the Public Employees
Retirement Association during the period of postretirement option employment.
(c) The employer of a
person in a postretirement option position who would otherwise be covered by
the general state employees retirement plan of the Minnesota State Retirement
System must make employer contributions to the general state employees retirement
fund as specified in section 352.04, subdivision 3, during the period of
postretirement option employment. The
employer of the person in a postretirement option position who would otherwise
be covered by the general employees retirement plan of the Public Employees
Retirement Association must make employer and additional employer contributions
to the general employees retirement fund as specified in section 353.27,
subdivisions 3 and 3a, during the period of postretirement option employment.
(d) No change shall
may be made to a monthly annuity or retirement allowance based on
employment under this section.
EFFECTIVE DATE. This
section is effective on the first day of the payroll period beginning on or
after January 1, 2027.
Sec. 2. Minnesota Statutes 2024, section 43A.346, subdivision 10, is amended to read:
Subd. 10. Subsequent
employment. If a person has been in
a postretirement option position and accepts any other position in state or
Metropolitan Council-paid service, in the subsequent state or Metropolitan
Council-paid employment the person may not earn service credit in the Minnesota
State Retirement System or Public Employees Retirement Association, no employer
contributions or payroll deductions for the retirement fund shall may
be made, and the provisions of section 352.115, subdivision 10, or section
353.37, shall apply.
EFFECTIVE DATE. This
section is effective on the first day of the payroll period beginning on or
after January 1, 2027.
Sec. 3. Minnesota Statutes 2024, section 352.01, subdivision 13, is amended to read:
Subd. 13. Salary. (a) Subject to the limitations of section 356.611, "salary" means wages, or other periodic compensation, paid to an employee before deductions for deferred compensation, supplemental retirement plans, or other voluntary salary reduction programs.
(b) " Salary"
does not include:
(1) lump-sum sick leave payments;
(2) severance payments;
(4) payments in lieu of any employer-paid group insurance coverage, including the difference between single and family rates that may be paid to an employee with single coverage;
(5) payments made as an employer-paid fringe benefit;
(6) workers' compensation payments;
(7) employer contributions
to a deferred compensation or tax-sheltered annuity program; and
(8) amounts contributed
under a benevolent vacation and sick leave donation program.; and
(9) payments from the family and medical benefit insurance account for
Minnesota paid leave under chapter 268B.
(c) Amounts paid to an employee by the employer through a grievance proceeding or a legal settlement are salary only if the grievance or settlement agreement is received by the executive director no fewer than 14 days before payment is made and the executive director determines that:
(1) the grievance or settlement agreement describes with sufficient specificity the period or periods of time worked or not worked by the employee for which the amounts are compensation; and
(2) the amounts are salary as defined in paragraph (a) and the determination is consistent with prior determinations.
EFFECTIVE DATE. This
section is effective retroactively from January 1, 2026.
Sec. 4. Minnesota Statutes 2024, section 352.115, subdivision 10, is amended to read:
Subd. 10. Reemployment of annuitant. (a) Except for salary or wages received as a temporary employee of the legislature during a legislative session, if any retired employee again becomes entitled to receive salary or wages from any employer who employs state employees as that term is defined in section 352.01, subdivision 2, in a position covered by this chapter, the annuity or retirement allowance must cease the first of the month following the month that the retired employee has earned an amount equal to the annual maximum earnings allowable for that age for the continued receipt of full benefit amounts monthly under the federal old age, survivors, and disability insurance program as set by the secretary of health and human services under United States Code, title 42, section 403, in any calendar year. If the retired employee has not yet reached the minimum age for the receipt of Social Security benefits, the maximum earnings for the retired employee are equal to the annual maximum earnings allowable for the minimum age for the receipt of Social Security benefits.
(b) The balance of the annual retirement annuity after cessation must be handled or disposed of as provided in section 356.47.
(c) The annuity must be resumed the first of the month following the month that state service ends, or, if the retired employee is still employed at the beginning of the next calendar year, at the beginning of that calendar year, and payment must again end when the retired employee has earned the applicable reemployment earnings maximum specified in this subdivision. If the retired employee is granted a sick leave without pay, but not otherwise, the annuity or retirement allowance must be resumed during the period of sick leave.
(d) No payroll deductions for the retirement fund may be made from the earnings of a reemployed retired employee.
(f) If a reemployed annuitant whose annuity is suspended under paragraph (a) is having insurance premium amounts withheld under section 356.87, subdivision 2, insurance premium amounts must continue to be withheld and transferred from the suspended portion of the annuity. The balance of the annual retirement annuity after cessation, after deduction of the insurance premium amounts, must be treated as specified in paragraph (b).
(g) If a reemployed annuitant whose annuity is suspended under paragraph (a) has a former spouse receiving a portion of the annuity allowable under section 518.58, subdivision 1, the portion payable to the former spouse must continue to be paid.
(h) During the period of
reemployment, the employer of a reemployed annuitant must make employer
contributions. If the reemployed
annuitant is working in a position that would otherwise be covered by the
general state employees retirement plan, the employer must make employer
contributions as specified in section 352.04, subdivision 3. If the reemployed annuitant is working in a
position that would otherwise be covered by the correctional state employees
retirement plan, the employer must make employer and supplemental contributions
as specified in section 352.92, subdivisions 2 and 2a.
EFFECTIVE DATE. This
section is effective on the first day of the payroll period beginning on or
after January 1, 2027.
Sec. 5. Minnesota Statutes 2024, section 352.1155, subdivision 3, is amended to read:
Subd. 3. Service
credit prohibition; contributions. (a) Notwithstanding any law to the
contrary, a person eligible under this section may not, based on employment to
which the waiver in this section applies, earn further service credit in a
Minnesota public defined benefit plan and is not eligible to participate in a
Minnesota public defined contribution plan, other than a firefighter relief
association governed by chapter 424A or the statewide volunteer firefighter
plan governed by chapter 353G. No
employer or employee contribution to any of these plans may be made on behalf
of such a person.
(b) A person eligible
under this section must not be required to make employee contributions as
specified in section 352.04, subdivision 2, during the period of reemployment.
(c) The employer of a
person eligible under this section must make employer contributions as
specified in section 352.04, subdivision 3, during the period of the person's
reemployment.
EFFECTIVE DATE. This
section is effective on the first day of the payroll period beginning on or
after January 1, 2027.
Sec. 6. Minnesota Statutes 2024, section 353.01, subdivision 10, is amended to read:
Subd. 10. Salary. (a) Subject to the limitations of section 356.611, "salary" means:
(1) the wages or periodic compensation payable to a public employee by the employing governmental subdivision before:
(i) employee retirement deductions that are designated as picked-up contributions under section 356.62;
(ii) any employee-elected deductions for deferred compensation, supplemental retirement plans, or other voluntary salary reduction programs that would have otherwise been available as a cash payment to the employee; and
(2) for a public employee who is covered by a supplemental retirement plan under section 356.24, subdivision 1, clause (8), (9), (10), or (12), the employer contributions to the applicable supplemental retirement plan when an agreement between the parties establishes that the contributions will either result in a mandatory reduction of employees' wages through payroll withholdings, or be made in lieu of an amount that would otherwise be paid as wages;
(3) a payment from a public employer through a grievance proceeding, settlement, or court order that is attached to a specific earnings period in which the employee's regular salary was not earned or paid to the member due to a suspension or a period of involuntary termination that is not a wrongful discharge under section 356.50; provided the amount is not less than the equivalent of the average of the hourly base salary rate in effect during the last six months of allowable service prior to the suspension or period of involuntary termination, plus any applicable increases awarded during the period that would have been paid under a collective bargaining agreement or personnel policy but for the suspension or involuntary termination, multiplied by the average number of regular hours for which the employee was compensated during the six months of allowable service prior to the suspension or period of involuntary termination, but not to exceed the compensation that the public employee would have earned if regularly employed during the applicable period;
(4) compensation paid
during an authorized leave of absence, other than an authorized medical
leave of absence, as long as the compensation paid during a pay period is not
less than the lesser of:; and
(i) the product of the
average hourly base salary rate in effect during the six months of allowable
service immediately preceding the leave, multiplied by the average number of
regular hours for which the employee was compensated each pay period during the
six months of allowable service immediately preceding the leave of absence; or
(ii) compensation equal
to the value of the employee's total available accrued leave hours;
(5) compensation paid
during an authorized medical leave of absence, other than a workers'
compensation leave, as long as the compensation paid during a pay period is not
less than the lesser of:
(i) the product of
one-half and the average hourly base salary rate in effect during the six
months of allowable service immediately preceding the leave of absence; or
(ii) compensation equal
to the value of the employee's total available accrued leave hours; and
(6) (5) for a
public employee who receives performance or merit bonus payment under a written
compensation plan, policy, or collective bargaining agreement in addition to
regular salary or in lieu of regular salary increases, the compensation paid to
the employee for attaining or exceeding performance goals, duties, or measures
during a specified period of employment.
(b) Salary does not mean:
(1) fees paid to district court reporters;
(2) unused annual leave, vacation, or sick leave payments, in the form of lump-sum or periodic payments;
(4) any form of severance or retirement incentive payments;
(5) an allowance payment or per diem payments for or reimbursement of expenses;
(6) lump-sum settlements not attached to a specific earnings period;
(7) workers' compensation payments, payments from the family and medical benefit insurance account for Minnesota paid leave under chapter 268B, or disability insurance payments, including payments from employer self‑insurance arrangements;
(8) employer-paid amounts used by an employee toward the cost of insurance coverage, flexible spending accounts, cafeteria plans, health care expense accounts, day care expenses, or any payments in lieu of any employer‑paid group insurance coverage, including the difference between single and family rates that may be paid to a member with single coverage and certain amounts determined by the executive director to be ineligible;
(9) employer-paid fringe
benefits, including, but not limited to:
(i) employer-paid premiums or supplemental contributions for employees for all types of insurance;
(ii) membership dues or fees for the use of fitness or recreational facilities;
(iii) incentive payments or cash awards relating to a wellness program;
(iv) the value of any nonmonetary benefits;
(v) any form of payment made in lieu of an employer-paid fringe benefit;
(vi) an employer-paid amount made to a deferred compensation or tax-sheltered annuity program; and
(vii) any amount paid by the employer as a supplement to salary, either as a lump-sum amount or a fixed or matching amount paid on a recurring basis, that is not available to the employee as cash;
(10) the amount equal to that which the employing governmental subdivision would otherwise pay toward single or family insurance coverage for a covered employee when, through a contract or agreement with some but not all employees, the employer:
(i) discontinues, or for new hires does not provide, payment toward the cost of the employee's selected insurance coverages under a group plan offered by the employer;
(ii) makes the employee solely responsible for all contributions toward the cost of the employee's selected insurance coverages under a group plan offered by the employer, including any amount the employer makes toward other employees' selected insurance coverages under a group plan offered by the employer; and
(iii) provides increased salary rates for employees who do not have any employer-paid group insurance coverages;
(11) except as provided in
section 353.86 or 353.87, compensation of any kind paid to volunteer
ambulance service personnel or volunteer firefighters, as defined in
subdivision 35 or 36;
(13) amounts paid by a federal or state grant for which the grant specifically prohibits grant proceeds from being used to make pension plan contributions, unless the contributions to the plan are made from sources other than the federal or state grant; and
(14) bonus pay that is not
performance or merit pay under paragraph (a), clause (6) (5).
(c) Amounts, other than those provided under paragraph (a), clause (3), provided to an employee by the employer through a grievance proceeding, a court order, or a legal settlement are salary only if the settlement or court order is reviewed by the executive director and the amounts are determined by the executive director to be consistent with paragraph (a) and prior determinations.
EFFECTIVE DATE. The
amendments to paragraphs (a), clauses (4) and (5), and (b), clause (11), are
effective July 1, 2026. The amendment to
paragraph (b), clause (7), is effective retroactively from January 1, 2026.
Sec. 7. Minnesota Statutes 2024, section 353.37, subdivision 5, is amended to read:
Subd. 5. Effect on annuity; contributions. (a) Except as provided under this section, public service performed by an annuitant described in subdivision 1, paragraph (a), subsequent to retirement from the general employees retirement plan, the public employees police and fire retirement plan, or the local government correctional employees retirement plan does not increase or decrease the amount of an annuity.
(b) The annuitant shall
must not make any further contributions to a defined benefit plan
administered by the association by reason of this subsequent public service.
(c) During the period of
reemployment, the employer of a reemployed annuitant must make employer
contributions. If the reemployed
annuitant is working in a position that would otherwise be covered by the
general employees retirement plan, the employer must make employer and
additional employer contributions as specified in section 353.27, subdivisions
3 and 3a. If the reemployed annuitant is
working in a position that would otherwise be covered by the public employees
police and fire retirement plan, the employer must make employer contributions
as specified in section 353.65, subdivision 3.
If the reemployed annuitant is working in a position that would
otherwise be covered by the local government correctional service retirement
plan, the employer must make employer contributions as specified in section
353E.03, subdivision 2.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 8. Minnesota Statutes 2024, section 353.371, subdivision 6, is amended to read:
Subd. 6. No
Service credit; contributions. (a)
Notwithstanding any law to the contrary, a person may not earn allowable
service in the general employees retirement plan of the Public Employees
Retirement Association for employment covered under this section, and
employer contributions and.
(b) Payroll deductions for the retirement fund must not be made based on earnings of a person working under an agreement covered by this section.
(c) The employer of a person working under an agreement covered by this section must make employer and additional employer contributions to the fund as specified in section 353.27, subdivisions 3 and 3a, during the term of employment under the phased retirement agreement or renewed phased retirement agreement.
(d)
No change may be made to a monthly annuity or retirement allowance based on
employment under this section.
(b) (e) The
governmental subdivision shall must report to the executive
director the salary earned by an employee in a phased retirement position. The report must include the number of
compensated hours the employee worked and must be made on a pay period basis in
a manner prescribed by the executive director.
Reports must be submitted no later than 14 calendar days following the
last day of each pay period.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 9. Minnesota Statutes 2024, section 353.371, subdivision 7, is amended to read:
Subd. 7. Termination and subsequent employment. (a) Upon termination of employment under a phased retirement agreement, the governmental subdivision and employee must inform the executive director, in a manner prescribed by the executive director, of the effective date of the employee's termination of public service. The termination from public service must meet the termination and length of separation requirements under section 353.01, subdivisions 11a and 28.
(b) If a person previously
employed under a phased retirement agreement subsequently accepts employment
with any other governmental subdivision, the person may not earn allowable
service in the general employees retirement plan of the Public Employees Retirement
Association, no employer contributions or payroll deductions for the
retirement fund may be made, and the provisions of section 353.37 apply to the
subsequent employment.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 10. Minnesota Statutes 2024, section 354.05, subdivision 35, is amended to read:
Subd. 35. Salary. (a) Subject to the limitations of section 356.611, "salary" means the periodic compensation, upon which member contributions are required before deductions for deferred compensation, supplemental retirement plans, or other voluntary salary reduction programs.
(b) " Salary"
does not mean:
(1) lump-sum annual leave payments;
(2) lump-sum wellness and sick leave payments;
(3) employer-paid amounts used by an employee toward the cost of insurance coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health care expense accounts, day care expenses, or any payments in lieu of any employer-paid group insurance coverage, including the difference between single and family rates that may be paid to a member with single coverage and certain amounts determined by the executive director to be ineligible;
(4) any form of payment made in lieu of any other employer-paid fringe benefit or expense;
(5) any form of severance payments;
(6) workers' compensation payments;
(7) disability insurance payments, including self-insured disability payments;
(9) payments under section
356.24, subdivision 1, clause (4); and
(10) payments made under
section 122A.40, subdivision 12, except for payments for sick leave that are
accumulated under the provisions of a uniform school district policy that
applies equally to all similarly situated persons in the district.;
and
(11) payments from the family and medical benefit insurance account for
Minnesota paid leave under chapter 268B.
(c) Amounts provided to an employee by the employer through a grievance proceeding or a legal settlement are salary only if the settlement is reviewed by the executive director and the amounts are determined by the executive director to be consistent with paragraph (a) and prior determinations.
EFFECTIVE DATE. This
section is effective retroactively from January 1, 2026.
Sec. 11. Minnesota Statutes 2024, section 354.44, subdivision 5, is amended to read:
Subd. 5. Resumption of teaching service after retirement. (a) Any person who retired under the provisions of this chapter and has thereafter resumed teaching in any employer unit to which this chapter applies is eligible to continue to receive payments in accordance with the annuity except that all or a portion of the annuity payments must be deferred during the calendar year immediately following the fiscal year in which the person's salary from the teaching service is in an amount greater than $46,000. The amount of the annuity deferral is one-half of the salary amount in excess of $46,000 and must be deducted from the annuity payable for the calendar year immediately following the fiscal year in which the excess amount was earned.
(b) If the person is retired for only a fractional part of the fiscal year during the initial year of retirement, the maximum reemployment salary exempt from triggering a deferral as specified in this subdivision must be prorated for that fiscal year.
(c) After a person has reached the Social Security normal retirement age, no deferral requirement is applicable regardless of the amount of salary.
(d) The amount of the retirement annuity deferral must be handled or disposed of as provided in section 356.47.
(e) For the purpose purposes
of this subdivision, salary from teaching service includes all salary or income
earned as a teacher as defined in section 354.05, subdivision 2, paragraph (a),
clause (1). Salary from teaching service
also includes, but is not limited to:
(1) all income for services performed as a consultant, independent contractor, or third-party supplier, or as an employee of a consultant, independent contractor, or third-party supplier, to an employer unit covered by the provisions of this chapter; and
(2) the greater of either the income received or an amount based on the rate paid with respect to an administrative position, consultant, independent contractor, or third-party supplier, or as an employee of a consultant, independent contractor, or third-party supplier, in an employer unit with approximately the same number of pupils and at the same level as the position occupied by the person who resumes teaching service.
(g) During the period of
reemployment, the employer of a reemployed annuitant must make regular and, if
applicable, additional employer contributions as specified in section 354.42,
subdivision 3.
EFFECTIVE DATE. This section is effective on the first day of the
payroll period beginning on or after July 1, 2026.
Sec. 12. Minnesota Statutes 2024, section 354.444, subdivision 5, is amended to read:
Subd. 5. No
Service credit or contribution; contributions. Notwithstanding any law to the contrary,:
(1) an eligible person
under this section may not, based on employment to which this section applies,
contribute to or earn further service credit in the Teachers Retirement
association.; and
(2) the employer of an
eligible person under this section must make regular and, if applicable,
additional employer contributions as specified in section 354.42, subdivision
3, during the period of employment to which this section applies.
EFFECTIVE DATE. This section is effective on the first day of the
payroll period beginning on or after July 1, 2026.
Sec. 13. Minnesota Statutes 2024, section 354.445, is amended to read:
354.445 NO ANNUITY REDUCTION.
(a) The annuity reduction provisions of section 354.44, subdivision 5, do not apply to a person who:
(1) retires from the Minnesota State Colleges and Universities system with at least ten years of combined service credit in a system under the jurisdiction of the Board of Trustees of the Minnesota State Colleges and Universities;
(2) was employed on a full-time basis immediately preceding retirement as a faculty member or as an unclassified administrator in that system;
(3) was not a recipient of an early retirement incentive under section 136F.481;
(4) begins drawing an annuity from the Teachers Retirement Association; and
(5) returns to work on not less than a one-third time basis and not more than a two-thirds time basis in the system from which the person retired under an agreement in which the person may not earn a salary of more than $62,000 in a fiscal year through employment after retirement in the system from which the person retired.
(b) Initial participation, the amount of time worked, and the duration of participation under this section must be mutually agreed upon by the president of the institution where the person returns to work and the employee. The president may require up to one-year notice of intent to participate in the program as a condition of participation under this section. The president shall determine the time of year the employee shall work. The employer or the president may not require a person to waive any rights under a collective bargaining agreement as a condition of participation under this section.
(d) A person eligible
under paragraphs (a) and (b) must not be required to make employee
contributions as specified in section 354.42, subdivision 2, during the period
of reemployment.
(e) The employer of a
person eligible under paragraphs (a) and (b) must make employer contributions
as specified in section 354.42, subdivision 3, during the period of the
person's reemployment.
(d) (f) For a
person eligible under paragraphs (a) and (b) who earns more than $62,000 in a
fiscal year through employment after retirement due to employment by the
Minnesota State Colleges and Universities system, the annuity reduction
provisions of section 354.44, subdivision 5, apply only to income over $62,000.
(e) (g) A
person who returns to work under this section is a member of the appropriate
bargaining unit and is covered by the appropriate collective bargaining
contract. Except as provided in this
section, the person's coverage is subject to any part of the contract limiting
rights of part-time employees.
EFFECTIVE DATE. This section is effective on the first day of the
payroll period beginning on or after July 1, 2026.
Sec. 14. Minnesota Statutes 2024, section 354A.011, subdivision 24, is amended to read:
Subd. 24. Salary; covered salary. (a) Subject to the limitations of section 356.611, "salary" or "covered salary" means the entire compensation, upon which member contributions are required and made, that is paid to a teacher before deductions for deferred compensation, supplemental retirement plans, or other voluntary salary reduction programs.
(b) " Salary"
does not mean:
(1) lump-sum annual leave payments;
(2) lump-sum wellness and sick leave payments;
(3) employer-paid amounts used by an employee toward the cost of insurance coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health care expense accounts, day care expenses, or any payments in lieu of any employer-paid group insurance coverage, including the difference between single and family rates that may be paid to a member with single coverage, and certain amounts determined by the executive secretary or director to be ineligible;
(4) any form of payment that is made in lieu of any other employer-paid fringe benefit or expense;
(5) any form of severance payments;
(6) workers' compensation payments;
(7) disability insurance payments, including self-insured disability payments;
(9) payments under section
356.24, subdivision 1, clause (4) (ii); and
(10) payments made under
section 122A.40, subdivision 12, except for payments for sick leave that are
accumulated under the provisions of a uniform school district policy that
applies equally to all similarly situated persons in the district.;
and
(11) payments from the family and medical benefit insurance account for
Minnesota paid leave under chapter 268B.
(c) Amounts provided to an employee by the employer through a grievance proceeding or a legal settlement are salary only if the settlement is reviewed by the executive director and the amounts are determined by the executive director to be consistent with paragraph (a) and prior determinations.
EFFECTIVE DATE. This
section is effective retroactively from January 1, 2026.
Sec. 15. Minnesota Statutes 2024, section 354A.095, is amended to read:
354A.095 PARENTAL AND MATERNITY LEAVE.
Basic or coordinated
members of the St. Paul Teachers Retirement Fund Association who are granted
on an authorized parental or maternity leave of absence by the
employing authority, are entitled to obtain service credit not to exceed
one year for the period of leave upon payment to the fund by the end of the
fiscal year following the fiscal year in which the leave of absence terminated. The amount of the payment must include the
total required employee and employer contributions for the period of leave prescribed
in section 354A.12. Payment must be
based on the member's average monthly salary rate upon return to teaching
service, and is payable without interest.
Payment must be accompanied by a certified or otherwise adequate copy of
the resolution or action of the employing authority granting or approving the
leave.
EFFECTIVE DATE. This
section is effective retroactively from January 1, 2026.
Sec. 16. Minnesota Statutes 2024, section 356.30, subdivision 1, is amended to read:
Subdivision 1. Eligibility; computation of annuity. (a) Notwithstanding any provisions of the laws governing the covered retirement plans listed in subdivision 3 and except as provided in subdivision 1a, a person may elect to receive, upon retirement, a retirement annuity from each covered retirement plan, subject to the provisions of paragraph (b), if the person has:
(1) allowable service in any two or more of the covered plans;
(2) at least one-half year of allowable service in each covered plan, based on the allowable service in each plan;
(3) total allowable service that equals or exceeds the longest service credit vesting requirement of the applicable retirement plan; and
(4) not begun to receive an annuity from any covered plan or made application for benefits from each applicable plan and the retirement annuity effective dates of each plan are within a one-year period.
(1) the laws governing annuities must be the law in effect on the date of termination from the last period of public service under a covered retirement plan with which the person earned a minimum of one-half year of allowable service credit during that employment;
(2) the average salary used to calculate the annuity for each formula plan must be based on the employee's highest five successive years of covered salary during the entire service in covered plans;
(3) the accrual rates under each plan must be the percentages prescribed by each plan's formula in effect for the respective years of allowable service from one plan to the next, recognizing all previous allowable service with the other covered plans;
(4) the allowable service in all the covered plans must be combined in determining eligibility for and the application of each plan's provisions with respect to reduction in the annuity amount for retirement prior to normal retirement age; and
(5) the annuity amount payable for any allowable service under a nonformula plan that is a covered plan must not be affected, but such service and covered salary must be used in the above calculation.
(c) If a person eligible for an annuity under paragraph (a) from each covered plan terminates all public service, the deferred annuity must be augmented from the date of termination until the earlier of:
(1) the effective date of retirement; or
(2) December 31, 2018, for the Minnesota State Retirement System and the Public Employees Retirement Association or June 30, 2019, for the Teachers Retirement Association and the St. Paul Teachers Retirement Association.
A deferred annuity must not be augmented after the applicable dates under clause (2). The appropriate rate of augmentation is the rate in effect on the date on which the person entered into public employment and subsequently adjusted according to the laws governing each covered plan, as applicable.
(d) This section does not apply to any person whose final termination from the last public service under a covered plan was before May 1, 1975.
(e) For the purpose of computing annuities under this section:
(1) the judges retirement fund accrual rate must not exceed 3.2 percent per year of service for any year of service or fraction thereof;
(2) the public employees police and fire plan and the State Patrol retirement plan accrual rate must not exceed 3.0 percent per year of service for any year of service or fraction thereof;
(3) the legislators retirement plan accrual rate must not exceed 2.5 percent, but this limit does not apply to the adjustment provided under section 3A.02, subdivision 1, paragraph (c); and
(4) any other covered plan's accrual rate must not exceed 2.7 percent per year of service for any year of service or fraction thereof.
(g) If the period of duplicated service credit is more than one-half year, or the person has credit for more than one-half year, with each of the plans, each plan must apply its formula to a prorated service credit for the period of duplicated service based on a fraction of the salary on which deductions were paid to that fund for the period divided by the total salary on which deductions were paid to all plans for the period.
(h) If the period of duplicated service credit is less than one-half year, or when added to other service credit with that plan is less than one-half year, the service credit must be ignored and a refund of contributions made to the person in accord with that plan's refund provisions.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 17. Minnesota Statutes 2024, section 356.30, is amended by adding a subdivision to read:
Subd. 1a. Exceptions
for certain covered plans. (a)
A person meets the requirement of subdivision 1, paragraph (a), clause (1), and
does not need to meet the requirements of subdivision 1, paragraph (a), clauses
(2) and (4), to calculate a retirement
annuity pursuant to this section if the person is eligible to receive
retirement annuities from:
(1) both of the covered
plans specified in subdivision 3, clauses (1) and (2);
(2) both of the covered
plans specified in subdivision 3, clauses (1) and (13); or
(3) the covered plan
specified in subdivision 3, clause (12), for allowable service earned under the
general employees retirement plan and the local government probation and
telecommunicator retirement plan if the person was transferred from the general
employees retirement plan to the local government probation and
telecommunicator retirement plan on January 1, 2027.
(b) This paragraph
applies to a person who is eligible to receive retirement annuities from the
covered plans specified in subdivision 3, clauses (1) and (2), and any other
covered plan and who elects to calculate the retirement annuities as follows:
(1) for the retirement
annuities from the covered plans specified in subdivision 3, clauses (1) and
(2), the person does not need to meet the requirements of subdivision 1,
paragraph (a), clauses (2) and (4), and may begin to receive one of the
annuities and defer receiving the other annuity; and
(2) for the retirement
annuity from another covered plan, the person is entitled to have the
retirement annuity from the other covered plan calculated under this section if
the person meets the requirements of subdivision 1, paragraph (a), clauses (2)
and (4), and the person has not begun to receive an annuity from the other
covered plan or made application for benefits from the other covered plan, and
the retirement annuity effective dates of either of the covered plans specified
in subdivision 3, clauses (1) and (2), and the other covered plan are within a
one-year period.
(c) This paragraph
applies to a person who is eligible to receive retirement annuities from the
covered plans specified in subdivision 3, clauses (1) and (13), and any other
covered plan and who elects to calculate the retirement annuities as follows:
(1) for the retirement
annuities from the covered plans specified in subdivision 3, clauses (1) and
(13), the person does not need to meet the requirements of subdivision 1,
paragraph (a), clauses (2) and (4), and may begin to receive one of the
annuities and defer receiving the other annuity; and
(2)
for the retirement annuity from another covered plan, the person is entitled to
have the retirement annuity from the other covered plan calculated under this
section if the person meets the requirements of subdivision 1, paragraph (a),
clauses (2) and (4), and the person has not begun to receive an annuity from
the other covered plan or made application for benefits from the other covered
plan, and the retirement annuity effective dates of either of the covered plans
specified in subdivision 3, clauses (1) and (13), and the other covered plan
are within a one-year period.
(d) This paragraph
applies to a person who is eligible to receive retirement annuities from the
covered plan specified in subdivision 3, clause (12), for allowable service
earned under the general employees retirement plan, the local government
probation and telecommunicator retirement plan, and any other covered plan, and
who elects to calculate the retirement annuities as follows:
(1) for the retirement
annuities from the covered plan specified in subdivision 3, clause (12), the
person does not need to meet the requirements of subdivision 1, paragraph (a),
clauses (2) and (4), and may begin to receive a retirement annuity for either
the allowable service under the general employees retirement plan or the local
government probation and telecommunicator retirement plan and defer receiving
the other annuity; and
(2) for the retirement
annuity from another covered plan, the person is entitled to have the
retirement annuity from the other covered plan calculated under this section if
the person meets the requirements of subdivision 1, paragraph (a), clauses (2)
and (4), and the person has not begun to receive an annuity from the other
covered plan or made application for benefits from the other covered plan, and
the retirement annuity effective dates of the covered plan specified in
subdivision 3, clause (12), and the other covered plan are within a one-year
period.
(e) Subdivision 1,
paragraph (b), clause (1), does not apply if a person is eligible to receive
retirement annuities from the covered plans as specified in paragraph (a). Instead, an annuity from a covered plan
specified in paragraph (a) must be calculated under the law in effect on the
date of termination of public service covered by the covered plan from which
the annuity is received.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 18. Minnesota Statutes 2024, section 356.30, subdivision 3, is amended to read:
Subd. 3. Covered plans. This section applies to the following retirement plans:
(1) the general state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;
(2) the correctional state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;
(3) the unclassified employees retirement program, established under chapter 352D;
(4) the State Patrol retirement plan, established under chapter 352B;
(5) the legislators retirement plan, established under chapter 3A, including constitutional officers as specified in that chapter;
(6) the general employees retirement plan of the Public Employees Retirement Association, established under chapter 353;
(8) the local government correctional service retirement plan of the Public Employees Retirement Association, established under chapter 353E;
(9) the Teachers Retirement Association, established under chapter 354;
(10) the St. Paul
Teachers Retirement Fund Association, established under chapter 354A; and
(11) the judges retirement
fund, established by chapter 490.;
(12) the local
government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established under chapter 353H; and
(13) the special
coverage subplans, established under section 352.85, 352.86, 352.87, or 352.88.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 19. Minnesota Statutes 2024, section 356.461, subdivision 1, is amended to read:
Subdivision 1. Joint and survivor annuity computation. (a) Notwithstanding any provision of section 356.215, subdivision 8, or 356.415 to the contrary, for purposes of computing joint and survivor annuities under each covered retirement plan in subdivision 2, the applicable investment return assumption is 6.5 percent unless a different percentage has been approved or deemed approved under paragraph (b) for the covered retirement plan.
(b) A change in the
investment return assumption for computing joint and survivor annuities may be
proposed by the governing board of a covered retirement plan. The assumption may be changed only with the
approval of the Legislative Commission on Pensions and Retirement or after a
period of one year has elapsed since the date on which the proposed assumption
change was received by the Legislative Commission on Pensions and Retirement
without commission action.
(c) The executive
director of the Legislative Commission on Pensions and Retirement must update
the appendix to the standards for actuarial work whenever a change in the
assumption is approved or deemed approved.
EFFECTIVE DATE. This
section is effective July 1, 2026.
ARTICLE 9
MINNESOTA SECURE CHOICE RETIREMENT PROGRAM
Section 1. Minnesota Statutes 2024, section 187.03, is amended by adding a subdivision to read:
Subd. 1a. Annual
report. "Annual
report" means a report on the following:
(1) financial
performance of the program and the agency;
(2) program expenses,
including costs attributable to the use of outside consultants, independent
contractors, and other persons who are not state employees;
(3) program outcomes;
(4)
progress toward savings goals established by the board;
(5) statistics on the
number of participating employees, participating employers, and covered
employees who have opted out of participation;
(6) estimated impact of
the program on social safety net programs; and
(7) penalties,
violations, and disciplinary actions for enforcement.
Sec. 2. Minnesota Statutes 2025 Supplement, section 187.03, subdivision 5, is amended to read:
Subd. 5. Covered employee. (a) "Covered employee" means a person who is employed by a covered employer or described in section 187.05, subdivision 7, and who satisfies any other criteria established by the board.
(b) Covered employee does not include:
(1) a person who, on December 31 of the preceding calendar year, was younger than 18 years of age;
(2) a person covered under the federal Railway Labor Act, as amended, United States Code, title 45, sections 151 et seq.;
(3) a person on whose behalf an employer makes contributions to a
Taft-Hartley multiemployer pension trust fund;
(4) a person employed by the government of the United States, another country, the state of Minnesota, another state, or any subdivision thereof; or
(5) a person employed on a temporary or seasonal basis for a limited duration, which the employer determines at the time the person is hired will not extend beyond 180 days.
(c) A person described in paragraph (b), clause (5), may elect to have contributions deducted from the person's paycheck for remittance to the program, but only if the employer would otherwise be considered a covered employer.
Sec. 3. Minnesota Statutes 2025 Supplement, section 187.03, subdivision 6a, is amended to read:
Subd. 6a. Enrollment
window. "Enrollment
window" means:
(1) the period
established by the board, according to a phase-in schedule approved under Laws
2023, chapter 46, section 10, subdivision 1, paragraph (b), that is applicable
to each covered employer and during which the covered employer is first
required to provide information to covered employees and enroll covered
employees who do not elect to opt out of the program.;
(2) the 21-day period
beginning with a covered employee's first day of employment with a covered
employer during which the covered employer is required to enroll the covered
employee; or
(3) the 21-day period
beginning on January 1 after the calendar year during which an employer first
becomes a covered employer.
Subd. 15. Waiting
period. "Waiting
period" means the 30-day period that begins on the day on which a covered
employee is enrolled in the program.
Sec. 5. Minnesota Statutes 2024, section 187.05, subdivision 1, is amended to read:
Subdivision 1. Program
established. (a) The board must
operate an employee a retirement savings program whereby contributions
are made by employee payroll deduction contributions are transmitted
or, if a covered employee is not employed by a covered employer, by direct
payment on an after-tax or pretax basis by covered employers to
individual retirement accounts established under the program.
(b) The board must
establish procedures for opening a Roth IRA, a traditional IRA, or both a Roth
IRA and a traditional IRA for each covered employee whose covered employer
transmits employee payroll deduction contributions under or, if a
covered employee is not employed by a covered employer, transmits payment to
the program.
(c) Contributions must be made on an after-tax (Roth) basis, unless the covered employee elects to contribute on a pretax basis.
Sec. 6. Minnesota Statutes 2025 Supplement, section 187.05, subdivision 1a, is amended to read:
Subd. 1a. Certification
by employers that are not covered employers.
(a) Any entity or person may file through the program web portal
or, with the consent of the executive director, by mail or email, a
certification with the executive director on a form prescribed by the
executive director and provide documentation in support of the certification,
as requested by the executive director, stating that the entity or person
is not a covered employer. The
certification must state that the entity or person is not a covered employer
for one or more of the following reasons:
(1) the entity or person has not been engaged for at least 12 months in a business, industry, profession, trade, or other enterprise in Minnesota, whether for profit or not for profit;
(2) the entity or person does not employ five or more employees;
(3) the entity or person sponsors or contributes to or, in the immediately preceding 12 months, sponsored or contributed to a retirement savings plan for its employees; or
(4) the entity is a political subdivision of the state or federal government.
(b) Within 30 days of receiving the certification, the executive director must accept the certification or issue a determination that the entity or person is a covered employer and subject to the requirements of section 187.07.
(c) The entity or person may appeal the executive director's determination by filing an appeal with the board of directors no later than 30 days after receipt of the determination.
(d) If necessary to
determine compliance with program requirements, the executive director may
request that an entity or person provide documentation in support of a
certification filed under paragraph (a).
If the entity or person does not provide supporting documentation within
30 days of the request or the documentation is inadequate, the executive
director may reject the certification and require the entity or person to
enroll its employees in the program.
Subd. 4. Contribution
rate. (a) The board may change the
required employee contribution rates and the escalation schedule under section
187.07, subdivision 1 1a.
(b) The board must provide all covered employers and covered employees with notice of a change in employee contribution rates or the escalation schedule at least six months in advance of the effective date of the change.
(b) A covered employee
must have the right, annually or more frequently as determined by the board, to
change the contribution rate, opt out or elect not to contribute, or cease
contributions.
Sec. 8. Minnesota Statutes 2024, section 187.05, subdivision 7, is amended to read:
Subd. 7. Individuals
not employed by a covered employer. (a)
In addition to home and community-based services employees under paragraph (b),
the board may allow individuals not employed by a covered employer to open and
contribute to an account in the program, in which case the individual must be
considered a covered employee for purposes of sections 187.05 to 187.11 187.14.
(b) The board must allow
any home and community-based services employee to open and contribute to an
account in the program within six twelve months of the opening of
the program and must consider a home and community-based services employee a
covered employee for purposes of sections 187.05 to 187.11 187.14.
Sec. 9. Minnesota Statutes 2024, section 187.05, is amended by adding a subdivision to read:
Subd. 9. Covered
employee right to begin contributing, change the contribution rate, or not
contribute. A covered
employee must have the right, annually or more frequently as determined by the
board, to:
(1) begin making
contributions to the program by payroll deduction or, if not employed by a
covered employer, by payment to the program;
(2) change the
percentage of compensation being contributed to the program by payroll
deduction;
(3) elect not to
contribute; or
(4) cease contributions.
Sec. 10. Minnesota Statutes 2024, section 187.06, subdivision 3, is amended to read:
Subd. 3. Individual
accounts established. The trustee or
custodian, as applicable, must maintain an account for each covered employee
who has made or is making employee payroll deduction contributions with
respect to each covered employee or, if the covered employee is not
employed by a covered employer, has made or is making payments to the program
until all assets in the account are distributed. Interest and Investment
earnings on the amount in the account are credited to the account, and investment
losses and administrative fees are deducted from the account.
Sec. 11. Minnesota Statutes 2025 Supplement, section 187.07, subdivision 1, is amended to read:
Subdivision 1. Requirement
to enroll employees and begin payroll deduction contributions. (a) Each A covered employer
must enroll its covered employees in the program and withhold during
the applicable enrollment window.
(b) The
covered employer must begin withholding payroll deduction contributions
from the first paycheck of each covered employee's paycheck no later
than 30 days after the covered employee's first day of employment employee
after the end of the covered employee's waiting period, unless the covered
employee has elected not to contribute.
(b) Unless the board has
approved a different rate or rates under section 187.05, subdivision 4, or a
covered employee has elected a different contribution rate or not to
contribute, the employee contribution rates and escalation schedule are:
(1) five percent of pay
for the covered employee's first year of participation;
(2) six percent of pay
for the covered employee's second year of participation;
(3) seven percent of pay
for the covered employee's third year of participation; and
(4) eight percent of pay
for the covered employee's fourth year of participation and each year
thereafter.
(c) Paragraph (a) does not
apply to a covered employer until the covered employer's enrollment window has
opened. No later than 30 days after
By the end of the enrollment window, the covered employer must have
enrolled all covered employees, except for any covered employee who has
elected not to contribute.
(d) The executive
director must communicate annually by email or otherwise in writing to each
covered employee:
(1) the annual limit on
employee contributions to a traditional IRA and a Roth IRA in effect under
section 408 and 408A, respectively, of the Internal Revenue Code; and
(2) notice that it is the
responsibility of the covered employee to reduce the covered employee's
contribution rate from the rate under paragraph (b) as necessary to stay within
the limit under section 408 or section 408A of the Internal Revenue Code that
is applicable to the covered employee and the type of IRA to which the
contributions are being credited.
Sec. 12. Minnesota Statutes 2024, section 187.07, is amended by adding a subdivision to read:
Subd. 1a. Default
contribution rate and escalation schedule.
Unless the board has approved a different rate or rates under
section 187.05, subdivision 4, or a covered employee has elected a different
contribution rate or not to contribute, the employee contribution rates and
escalation schedule are:
(1) five percent of pay
for the covered employee's first year of participation;
(2) six percent of pay
for the covered employee's second year of participation;
(3) seven percent of pay
for the covered employee's third year of participation; and
(4) eight percent of pay
for the covered employee's fourth year of participation and each year
thereafter.
Sec. 13. Minnesota Statutes 2024, section 187.08, subdivision 1, is amended to read:
Subdivision 1. Membership. The policy-making function of the program is vested in a board of directors consisting of seven members as follows:
(1) the executive director of the Minnesota State Retirement System or the executive director's designee;
(3) three members with
relevant experience chosen by the Legislative Commission on Pensions and
Retirement, one from each of the following experience categories: ;
(i) executive or
operations manager with substantial experience in record keeping 401(k) plans;
(ii) executive or
operations manager with substantial experience in individual retirement
accounts; and
(iii) executive or other
professional with substantial experience in retirement plan investments;
(4) a human resources or retirement benefits executive from a private company with substantial experience in administering the company's 401(k) plan, appointed by the governor; and
(5) a small business owner, a small business executive, or a nonprofit executive appointed by the governor.
Sec. 14. Minnesota Statutes 2024, section 187.08, subdivision 2, is amended to read:
Subd. 2. Appointment. (a) Members appointed by the governor must be appointed as provided in section 15.0597.
(b) The Legislative
Commission on Pensions and Retirement is not required to consider a seat on the
board as vacant if the incumbent provides notice to the chair of the board and
executive director that the incumbent wishes to serve an additional term as
permitted under subdivision 3. The
executive director of the program must notify the secretary of state and the
chair or executive director of the Legislative Commission on Pensions and
Retirement that the incumbent wishes to serve an additional term. The secretary of state must not post a seat
as vacant and accept applications if the chair of the board and the chair or
executive director of the Legislative Commission on Pensions and Retirement
accept the incumbent's request to serve an additional term.
Sec. 15. Minnesota Statutes 2025 Supplement, section 187.08, subdivision 3, is amended to read:
Subd. 3. Membership terms. (a) Board members serve for two-year terms, except:
(1) the executive directors of the Minnesota State Retirement System and the State Board of Investment serve indefinitely; and
(2) the initial term of the
member who is an executive or other professional with substantial experience in
retirement plan investments under subdivision 1, clause (3), item (iii),
and the member who is a human resources executive under subdivision 1, clause
(4), is three years.
(b) A board members'
terms may be renewed, member may renew the member's term, but no
member, other than the executive directors of the Minnesota State Retirement
Systems and the State Board of Investment, may serve more than two
consecutive terms. To serve an
additional term, an incumbent must notify the chair of the board and the
executive director that the incumbent wishes to serve an additional term.
Sec. 16. Minnesota Statutes 2024, section 187.08, subdivision 6, is amended to read:
Subd. 6. Chair;
quorum. (a) The board shall
must select elect a chair from among its members. The chair shall serve serves for
a two-year term and may be reelected by the members for additional two-year
terms. The board may select other
officers as necessary to assist the board in performing the board's duties.
(b) A
majority of the members, not including for this purpose any vacant member seat,
constitutes a quorum. Approval of any
item of board business is effective if approved by a simple majority vote of
members present at a meeting.
Sec. 17. Minnesota Statutes 2024, section 187.08, subdivision 8, is amended to read:
Subd. 8. Duties. In addition to the duties set forth elsewhere in this chapter, the board has the following duties:
(1) to establish secure processes for enrolling covered employees in the program and for transmitting employee contributions to accounts in the trust;
(2) to prepare a budget and establish procedures for the payment of costs of administering and operating the program;
(3) to lease or otherwise procure equipment necessary to administer the program;
(4) to procure insurance in connection with the property of the program and the activities of the board, executive director, and other staff;
(5) to determine the following:
(i) any criteria for a covered employee other than employment with a covered employer under section 187.03, subdivision 5;
(ii) contribution rates and an escalation schedule under section 187.05, subdivision 4;
(iii) withdrawal and distribution options under section 187.05, subdivision 6; and
(iv) the default investment fund under section 187.06, subdivision 5;
(6) to keep annual administrative fees, costs, and expenses as low as possible:
(i) except that any administrative fee assessed against the accounts of covered employees may not exceed a reasonable amount relative to the fees charged by auto-IRA or defined contribution programs of similar size in the state of Minnesota or another state; and
(ii) the fee may be asset-based, flat fee, or a hybrid combination of asset-based and flat fee;
(7) to determine the eligibility of an employer, employee, or other individual to participate in the program and review and decide claims for benefits and make factual determinations;
(8) to prepare
information regarding the program that is clear and concise for dissemination
to all covered employees and includes the following:
(i) the benefits and
risks associated with participating in the program;
(ii) procedures for
enrolling in the program and opting out of the program, electing a different or
zero percent employee contribution rate, making investment elections, applying
for a distribution of employee accounts, and making a claim for benefits;
(iii)
the federal and state income tax consequences of participating in the program,
which may consist of or include the disclosure statement required to be
distributed by retirement plan trustees or custodians under the Internal
Revenue Code and the Treasury Regulations thereunder;
(iv) how to obtain
additional information on the program; and
(v) disclaimers of
covered employer and state responsibility, including the following statements:
(A) covered employees
seeking financial, investment, or tax advice should contact their own advisors;
(B) neither a covered
employer nor the state of Minnesota are liable for decisions covered employees
make regarding their account in the program;
(C) neither a covered
employer nor the state of Minnesota guarantees the accounts in the program or
any particular investment rate of return; and
(D) neither a covered
employer nor the state of Minnesota monitors or has an obligation to monitor
any covered employee's eligibility under the Internal Revenue Code to make
contributions to an account in the program, or whether the covered employee's
contributions to an account in the program exceed the maximum permissible
contribution under the Internal Revenue Code;
(9) (8) to
publish an annual financial report, prepared according to generally
accepted accounting principles, on the operations of the program, which must
include but not be limited to costs attributable to the use of outside
consultants, independent contractors, and other persons who are not state
employees and deliver the report to the chairs and ranking minority members
of the legislative committees with jurisdiction over jobs and economic
development and state government finance, the executive directors of the State
Board of Investment and the Legislative Commission on Pensions and Retirement,
and the Legislative Reference Library;
(10) to publish an
annual report regarding plan outcomes, progress toward savings goals
established by the board, statistics on the number of participants,
participating employers, and covered employees who have opted out of
participation, plan expenses, estimated impact of the program on social safety
net programs, and penalties and violations, and disciplinary actions for
enforcement, and deliver the report to the chairs and ranking minority members
of the legislative committees with jurisdiction over jobs and economic
development and state government finance, the executive directors of the State
Board of Investment and the Legislative Commission on Pensions and Retirement,
and the Legislative Reference Library;
(11) (9) to
file all reports required under the Internal Revenue Code or chapter 290;
(12) (10) to,
at the board's discretion, seek and accept gifts, grants, and donations to be
used for the program, unless such gifts, grants, or donations would result in a
conflict of interest relating to the solicitation of service provider for program administration, and deposit
such gifts, grants, or donations in the Secure Choice administrative fund;
(13) (11) to,
at the board's discretion, seek and accept appropriations from the state or
loans from the state or any agency of the state;
(14) (12) to
assess the feasibility of partnering with another state or a governmental
subdivision of another state to administer the program through shared
administrative resources and, if determined beneficial, enter into contracts,
agreements, memoranda of understanding, or other arrangements with any other
state or an agency or a subdivision of any other state to administer, operate,
or manage any part of the program, which may include combining resources,
investments, or administrative functions;
(15)
(16) (14) to
interpret the program's governing documents and this chapter and make all other
decisions necessary to administer the program;
(17) (15) to
conduct comprehensive employer and worker education and outreach regarding the
program that reflect the cultures and languages of the state's diverse
workforce population, which may, in the board's discretion, include
collaboration with state and local government agencies, community-based and
nonprofit organizations, foundations, vendors, and other entities deemed
appropriate to develop and secure ongoing resources; and
(18) (16) to
prepare notices for delivery to covered employees regarding the escalation
schedule and to each covered employee before the covered employee is subject to
an automatic contribution increase.
Sec. 18. Minnesota Statutes 2025 Supplement, section 187.11, is amended to read:
187.11 OTHER STATE AGENCIES TO PROVIDE ASSISTANCE.
(a) The board may enter into intergovernmental agreements with the commissioner of revenue, the commissioner of labor and industry, the commissioner of employment and economic development, and any other state agency that the board deems necessary or appropriate to provide outreach, technical assistance, or compliance services. An agency that enters into an intergovernmental agreement with the board pursuant to this section must collaborate and cooperate with the board to provide the outreach, technical assistance, or compliance services under any such agreement. The board, executive director, and program staff must maintain the privacy of data obtained under any intergovernmental agreement if required under chapter 13.
(b) For purposes of section 268.19, subdivision 1, paragraph (a), clause (20), "assisting with communication with employers and to verify employer compliance with chapter 187" means providing the executive director with at least the following information for employers, to the extent available to the commissioner of employment and economic development:
(1) federal employer identification number;
(2) business name, address, mailing address, email address, and phone number;
(3) number of employees; and
(4) employer industry code.
(c) The commissioner of
administration must provide assist the executive director in
identifying and leasing suitable office space for the executive director
and program staff in the Capitol complex for the executive director and
staff of the program the city of St. Paul.
Sec. 19. Minnesota Statutes 2025 Supplement, section 187.12, subdivision 1, is amended to read:
Subdivision 1. Failure
to enroll covered employees or distribute information. (a) The board may assess penalties
against a covered employer that fails to comply with section 187.07,
subdivision 1 or 3 or both subdivisions 1 and 3, beginning with the second
anniversary of the date on which the covered employer was first
paragraph (a), beginning with the second anniversary of the last day of the
applicable enrollment window or fails to comply with section 187.07,
subdivision 1, paragraph (b), beginning with the second anniversary of the
first paycheck after a covered employee's waiting period, as follows:
required
to comply with section 187.07, subdivision 1 or 3, as applicable.,
(b) The board may assess
the following penalties for a covered employer's failure to comply with section
187.07, subdivision 1 or 3:
(1) on the second anniversary, a penalty of $100 per covered employee, not to exceed $4,000;
(2) on the third anniversary, a penalty of $200 per covered employee, not to exceed $6,000;
(3) on the fourth anniversary, a penalty of $300 per covered employee; and
(4) on each anniversary after the fourth anniversary, a penalty of $500 per covered employee.
(c) If the covered
employer fails to comply with section 187.07, subdivisions 1 and 3, the board
must assess two times the penalties in paragraph (b).
(d) The date on which a
covered employer is first required to comply with section 187.07, subdivision
1, is the following:
(1) for paragraph (a),
on or before the 30th day after the first day of employment of a covered
employee hired by the covered employer; and
(2) for paragraph (b),
on or before the 30th day after the end of the enrollment window applicable to
the covered employer.
(e) The date on which a
covered employer is first required to comply with section 187.07, subdivision
3, is the following:
(1) for paragraph (a),
for a newly hired covered employee, no later than 14 days after the covered
employee's first day of employment; and
(2) for paragraph (b),
no later than the 14th day prior to the date of the first paycheck from which
employee contributions could be deducted for transmittal to the program.
Sec. 20. [187.13]
REQUIRED NOTICES.
Subdivision 1. Notice
to covered employees upon enrollment.
(a) The board must disseminate a notice regarding the program
that is clear and concise to all covered employees no later than seven days
after a covered employee is enrolled by a covered employer.
(b) The information in
the notice must include:
(1) the benefits and
risks associated with participating in the program;
(2) procedures for
enrolling in the program and opting out of the program, electing a different or
zero percent employee contribution rate, making investment elections, applying
for a distribution of employee accounts, and making a claim for benefits;
(3)
the federal and state income tax consequences of participating in the program,
which may consist of or include the
disclosure statement required to be distributed by trustees or custodians under
the Internal Revenue Code;
(4) how to obtain
additional information on the program; and
(5) disclaimers of
covered employer and state responsibility, including the following statements:
(i) a covered employee
seeking financial, investment, or tax advice should contact the covered
employee's advisors;
(ii) neither a covered
employer nor the board, the program, or the state of Minnesota is liable for
decisions a covered employee makes regarding the covered employee's account in
the program;
(iii) neither a covered
employer nor the state of Minnesota guarantees the accounts in the program or
any particular investment rate of return; and
(iv) neither a covered
employer nor the state of Minnesota monitors or has an obligation to monitor a
covered employee's eligibility under the Internal Revenue Code to make
contributions to an account in the program or whether the covered employee's
contributions to an account in the program exceed the maximum permissible
contribution under the Internal Revenue Code.
Subd. 2. Annual
notice to covered employees. The
executive director must communicate annually by email or other means in writing
to each covered employee:
(1) the annual limit on
employee contributions to a traditional IRA and a Roth IRA in effect under
sections 408 and 408A of the Internal Revenue Code; and
(2) that it is the
responsibility of the covered employee to reduce the covered employee's
contribution rate from the rate under section 187.07, subdivision 1a, as
necessary to stay within the limit under section 408 or 408A of the Internal
Revenue Code that is applicable to the covered employee and the type of IRA to
which the contributions are being credited.
Sec. 21. [187.14]
CONFIDENTIALITY OF DATA AND NONSOLICITATION.
Subdivision 1. Confidentiality
of data. Covered employee
data, account owner data, account data, and data on beneficiaries of accounts
are private data. The program, executive
director, and program staff must not disclose private data on individuals, as
defined in section 13.02, to anyone other than the covered employee, account
owner, or beneficiary, except:
(1) pursuant to a court
order;
(2) upon the written
consent of the covered employee, account owner, beneficiary, or other person
who provides the data or is the subject of the data; or
(3) to a third party
with which the program has contracted to perform administrative or
record-keeping functions, but only to the extent necessary to carry out the
functions and subject to the requirements of this subdivision as if the third
party were the program.
Subd. 2. Nonsolicitation
restriction. Neither program
staff nor a third-party administrator, record keeper, or any other vendor or
consultant with which the program has contracted may solicit a covered
employee, an account owner, or a beneficiary for any product or services not
related to the program.
Minnesota Statutes 2025
Supplement, section 187.07, subdivision 3, is repealed.
Sec. 23. EFFECTIVE
DATE.
Sections 1 to 22 are
effective the day following final enactment.
ARTICLE 10
SUPPLEMENTAL PLANS
Section 1. Minnesota Statutes 2024, section 356.24, subdivision 3, is amended to read:
Subd. 3. Deferred compensation plan. (a) As used in this section:
(1) "deferred compensation plan" means a plan that satisfies the requirements of this subdivision;
(2) "plan administrator" means the individual or entity defined as the plan administrator in the plan document for the Minnesota deferred compensation plan under section 352.965 or a deferred compensation plan under section 457(b) of the Internal Revenue Code; and
(3) "vendor" means the provider of an annuity contract, custodial account, or retirement income account under a tax-sheltered annuity plan under section 403(b) of the Internal Revenue Code.
(b) The plan is:
(1) the Minnesota deferred compensation plan under section 352.965;
(2) a tax-sheltered annuity plan under section 403(b) of the Internal Revenue Code; or
(3) a deferred compensation plan under section 457(b) of the Internal Revenue Code.
(c) For each investment
fund available to participants under the plan, other than in a self-directed
brokerage account or fixed annuity contract, the plan administrator or vendor
discloses at least annually to participants a statement that sets forth (1) all
fees, including administrative, maintenance, and investment fees, that impact
the rate of return on each investment fund available under the plan, and (2)
the rates of return for the prior one-, five-, and ten-year periods or for the
life of the fund, if shorter, in an easily understandable document. The plan administrator or vendor must file
a copy of this statement annually with the executive director of the
Legislative Commission on Pensions and Retirement.
(d) Enrollment in the plan is provided for in:
(1) a personnel policy of the public employer;
(2) a collective bargaining agreement between the public employer and the exclusive representative of public employees in an appropriate unit; or
(3) an individual employment contract (i) between a city and a city manager or other management employee, or (ii) between a school district and a superintendent or other management employee.
(f) If the public employer makes matching contributions to the plan, the matching contributions must match, on a dollar for dollar basis, employee elective deferral contributions not to exceed the lesser of (1) the maximum authorized under the policy described in paragraph (d) that provides for enrollment in the plan or program, or (2) one-half of the annual limit on elective deferrals under section 402(g) of the Internal Revenue Code. In lieu of or in addition to matching an employee's elective deferral contributions, the public employer may make employer matching contributions on behalf of an employee on account of qualified student loan payments, as defined in the Secure 2.0 Act of 2022, Public Law 117-328 (December 29, 2022), Division T, section 110, paragraph (b), and any regulations adopted thereunder. The employer matching contributions on account of an employee's qualified student loan payments plus any employer matching contributions that match an employee's elective deferral contributions must not exceed, for the year, the lesser of (1) the maximum authorized under the policy described in paragraph (d) that provides for enrollment in the plan or program, (2) one-half of the annual limit on elective deferrals under section 402(g) of the Internal Revenue Code, or (3) the employee's compensation for the year.
(g) Contributions to the plan may include contributions deducted from an employee's sick leave, accumulated vacation leave, or accumulated severance pay, whether characterized as employee contributions or nonelective employer contributions, up to applicable limits under the Internal Revenue Code. Such contributions are not subject to the match requirement and limit in paragraph (f).
EFFECTIVE DATE. This
section is effective the day following final enactment.
ARTICLE 11
HEALTH CARE SAVINGS PLAN
Section 1. Minnesota Statutes 2024, section 352.98, subdivision 3, is amended to read:
Subd. 3. Contributions. (a) Contributions to the plan must be
defined in a personnel policy or in a, collective bargaining
agreement, participation plan, or resolution of the governing body of a
public employer or political subdivision.
(b) The executive director may offer different types of trusts permitted under the Internal Revenue Code to best meet the needs of different employer units.
(b) (c) Contributions
to the plan by or on behalf of the participant must be held in trust for
reimbursement of eligible health-related expenses for participants and their
dependents following termination from public employment or in other
circumstances set forth in the plan document.
The executive director shall maintain a separate account of the
contributions made by or on behalf of each participant and the earnings thereon. The executive director shall make available a
limited range of investment options, and each participant may direct the
investment of the accumulations in the participant's account among the
investment options made available by the executive director.
(c) (d) This
section does not obligate a public employer to meet and negotiate in good faith
with the exclusive bargaining representative of any public employee group
regarding an employer contribution to a postretirement or active employee
health care savings plan authorized by this section and section 356.24,
subdivision 1, clause (7). It is not the
intent of the legislature to authorize the state to incur new funding
obligations for the costs of retiree health care or the costs of administering
retiree health care plans or accounts.
EFFECTIVE DATE. This
section is effective the day following final enactment.
WORK GROUPS
Section 1. WORK GROUP ON VESTING AND EMERGENCY MEDICAL PROVIDERS IN FIREFIGHTER
RELIEF ASSOCIATIONS AND THE STATEWIDE VOLUNTEER FIREFIGHTER PLAN.
Subdivision 1. Work
group established; purpose. The
executive director of the Legislative Commission on Pensions and Retirement
(commission executive director) must convene a work group for the purpose of
recommending legislation that would:
(1) shorten the vesting
schedule for firefighter relief associations to a maximum of ten years;
(2) require that
firefighter relief associations include volunteer or paid on-call emergency
medical providers as members on the same basis as volunteer or paid on-call
firefighters; and
(3) make the same
changes to the PERA Statewide Volunteer Firefighter Plan (SVF) as are
recommended for firefighter relief associations.
Subd. 2. Membership. (a) The members of the work group are
the following:
(1) a representative
from the Minnesota Association of Townships;
(2) a representative
from the Minnesota Association of Small Cities;
(3) a representative
from the League of Minnesota Cities;
(4) a representative
from the Minnesota State Fire Chiefs Association;
(5) a representative
from the Minnesota State Fire Departments Association;
(6) a representative of
the Office of Emergency Medical Services, designated by the director of the
Office of Emergency Medical Services;
(7) a representative of
the Office of the State Auditor, designated by the state auditor; and
(8) the executive
director of the Public Employees Retirement Association, or the executive
director's designee.
(b) The commission
executive director may invite others, including the commission's actuary, to
participate in one or more meetings of the work group.
(c) The organizations
and agencies specified in paragraph (a) must provide the commission executive
director with the names and contact information for the representatives who
will serve on the work group by June 12, 2026.
Subd. 3. Mandate. In arriving at the work group's
recommendations, the work group must determine and consider:
(1) whether shortening
vesting schedules has any impact on a relief association or SVF fire
department's liabilities or funded status and, if so, what options are
available to lessen the impact;
(2) any studies or data
supporting or critical of the premise that longer vesting schedules aid
retention or recruitment;
(3)
how many fire departments, whether affiliated with a relief association or
participating in the SVF, have emergency medical providers who solely perform
that function, how many of these emergency medical providers are in each fire
department, and the funded status of the affiliated relief association or SVF
account;
(4) the basis, if any,
for excluding emergency medical providers from firefighter relief associations
and the SVF;
(5) the cost of
requiring past service credit be provided to emergency medical providers when
the providers become members of relief associations that are defined benefit
plans or the SVF defined benefit plan and options for providing past service credit (that is, as far back as a provider has
active service in the fire department or back to 2019);
(6) whether the chronic
overfunding in relief associations and the SVF can be expected to cover any
liabilities under clause (1) or costs under clause (3) and what options are
available for relief associations or fire department accounts in the SVF that are
not overfunded;
(7) options for phasing
in the shorter vesting schedules and requiring coverage of and past service
credit for emergency medical providers; and
(8) any other issues
related to vesting and eligibility that merit discussion by the work group and
inclusion in the recommendations.
Subd. 4. Recommendations;
proposed legislation. (a)
With the assistance of the commission executive director, the work group must
prepare proposed legislation that implements the recommendations of the work
group. If the work group recommends more
than one approach, the work group must provide alternative bills.
(b) The commission
executive director must submit the recommendations of the work group, along
with proposed legislation that implements the recommendations, to the
Legislative Commission on Pensions and Retirement by January 29, 2027, or, if
later, the date all members of the commission have been appointed for the
2027-2028 biennium.
Subd. 5. Meetings;
chair; administrative support. (a)
The commission executive director must convene the first meeting of the work
group by July 27, 2026.
(b) The members of the
work group must elect a chair or co-chairs at the first meeting. The chair or co-chair is not required to be a
member of the work group.
(c) Meetings may be
conducted remotely or in person or a combination of remotely and in person.
(d) Commission staff
must provide meeting space, if needed, and administrative support to the chair
or co-chairs of the work group.
Subd. 6. Compensation;
lobbying; retaliation. (a)
Members of the work group serve without compensation.
(b) Participation in the
work group is not lobbying under Minnesota Statutes, chapter 10A.
(c) An individual's
employer or an organization or association of which an individual is a member
must not retaliate against the individual because of the individual's
participation in the work group.
Subd. 7. Expiration. The work group expires June 30, 2027.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given.
(b)
"Commission" means the Legislative Commission on Pensions and
Retirement.
(c) "Executive
director" means the executive director of the commission.
(d) "LCPR
account" means the account established in the Legislative Coordinating
Commission that contains $26,694, as of April 1, 2026, and was funded in fiscal
year 2024 with a $100,000 appropriation to the Legislative Coordinating
Commission for the Legislative Commission on Pensions and Retirement pursuant
to Laws 2023, chapter 45, article 6, section 3.
(e) "Maximum
benefit" means the duty disability benefit under Minnesota Statutes,
section 353.656, or the employer's cost to provide the health insurance
coverage under Minnesota Statutes, section 299A.465.
(f) "Police and
fire plan" means the public employees police and fire plan administered by
the Public Employees Retirement Association.
(g) "Public safety
officer's benefit account" means the account established under Minnesota
Statutes, section 299A.42.
(h) "VA disability
schedule" means the schedule for rating disabilities under Code of Federal
Regulations, title 38, part 4, published by the Veterans Affairs Department and
most recently amended on March 20, 2024.
Subd. 2. Need
for a work group. The
commission has identified the following reasons for establishing a work group:
(1) the public safety
officer's benefit account is anticipated to be depleted by 2028 based on
information provided by the Department of Management and Budget;
(2) the rate of approval
by the Public Employees Retirement Association of duty disability applications
is approximately 100 percent;
(3) since only one
annual report has been filed by the commissioner of public safety under
Minnesota Statutes, section 299A.42, subdivision 2, and the report contains
minimal information on reimbursements in the categories for treatment, salary,
fringe benefits, and health care insurance, the commission is unable to use
this report to determine trends, per-member reimbursements, or related
information;
(4) waiting until May
20, 2027, to receive the report from the executive director of the Public
Employees Retirement Association under Minnesota Statutes, section 353.032,
subdivision 11, regarding the impact on public safety duty disability trends
and costs is too late to allow for a legislative solution if trends indicate
psychological condition treatment is not resulting in police and fire plan
members being able to return to work rather than take a leave of absence for
duty disability;
(5) minimal information
is available regarding whether police officers and firefighters who retire
under the police and fire plan before age 65 are able to obtain health
insurance coverage at a reasonable cost until age 65 when Medicare is available
and whether there are options available to the police officers and firefighters
to obtain adequate coverage;
(6)
there has been an increase of over 100 percent in the cost of duty disability
benefits as reflected in the change between the 2024 actuarial valuation of the
police and fire plan and the 2025 actuarial valuation and the effect of this
increase on the overall health of the police and fire plan; and
(7) to determine how to
formulate solutions to the reasons in clauses (1) to (6), legislators and other
decision makers need a better understanding of the interaction of workers'
compensation, the availability and cost of health insurance coverage upon retirement
or reemployment, the application process for and amount of duty disability
benefits, the ability of public employers to continue to offer health insurance
coverage to duty-disabled and retired employees, and the federally provided
benefits for public safety officers.
Subd. 3. Work
group established; purpose. The
executive director must convene a work group for the purpose of recommending
legislation that would:
(1) reform duty
disability for members of the police and fire plan; and
(2) ensure that members
of the police and fire plan who become duty disabled or retire have access to
affordable health insurance coverage until Medicare eligibility.
Subd. 4. Membership. (a) The members of the work group are
the following:
(1) one representative
from the Minnesota Police and Peace Officers Association;
(2) one representative
from the Minnesota Professional Fire Fighters Association;
(3) one representative
from Law Enforcement Labor Services;
(4) one representative
from the League of Minnesota Cities;
(5) one representative
from the Association of Minnesota Counties;
(6) one representative
from the Minnesota Inter-County Association;
(7) one representative
from the Coalition of Greater Minnesota Cities;
(8) one representative
from the Minnesota Chiefs of Police Association;
(9) one representative
from the Minnesota State Fire Chiefs Association;
(10) one representative
from the Minnesota Sheriffs' Association;
(11) the executive
director of the Public Employees Retirement Association or the executive
director's designee;
(12) the commissioner of
public safety or the commissioner's designee;
(13) the commissioner of
labor and industry or the commissioner's designee;
(14) the assistant
commissioner of the Workers' Compensation Division of the Department of Labor
and Industry or the assistant commissioner's designee;
(15) one designee of the
commissioner of management and budget with expertise in the public employees
insurance program and the state employee group insurance program; and
(16)
legislators who are members of the commission and who commit to attending most
meetings of the work group.
(b) Each of the
organizations or agencies specified in paragraph (a) may designate an alternate
who is entitled to participate in meetings of the work group along with the
designated representative. The co-chairs
may establish rules regarding the participation of alternates in meetings as
necessary to ensure that all representatives have the opportunity to speak.
(c) The executive
director may invite others to participate in one or more meetings of the work
group.
(d) Each organization
and agency specified in paragraph (a) must provide the executive director with
the names and contact information for the representative and alternate who will
serve on the work group by June 19, 2026.
Legislators who wish to serve on the work group must notify the
executive director by June 19, 2026.
Subd. 5. Mandate. (a) Legislation recommended by the
work group must address each topic in paragraphs (b) to (h), or the work group
must explain in an accompanying report the consideration given to the topic and
the reasons the legislation does not address the topic.
(b) Benefit adequacy. The work group must address the adequacy of
the retirement, medical, and other welfare‑related benefits to disabled members
of the police and fire plan with the objective of establishing a comprehensive
package of benefits.
(c) Funding of the
public safety officer's benefit account.
To fund the public safety officer's benefit account established under
Minnesota Statutes, section 299A.42, the work group must recommend options,
including but not limited to:
(1) requiring members of
the police and fire plan to contribute a percentage of pay on a pre-tax basis
to the account;
(2) requiring the
Department of Public Safety to reimburse public employers under Minnesota
Statutes, section 299A.465, subdivision 4, if there is not sufficient money in
the account to satisfy all requests for reimbursement;
(3) securing permanent
funding for the account; and
(4) requiring the State
Board of Investment to invest the account and credit the account with
investment earnings and losses.
(d) Affordable retiree
health insurance coverage. To ensure
affordable options for providing health insurance coverage are available to
retirees under the police and fire plan during retirement, to age 65, the work
group must recommend options, including but not limited to:
(1) allowing members of
the police and fire plan during employment to contribute to an account on a
pre-tax basis to pay premiums, co-pays, and other costs of medical care during
retirement; and
(2) allowing retirees to
be covered by the state employee group insurance program from retirement to age
65.
(e) Duty disability
definition, assessment, and process reform.
To restructure the procedures for assessing duty disability under the
police and fire plan and continued health insurance coverage during the period
of disability, the work group must recommend options, including but not limited
to:
(1)
revising the definition of "duty disability" as defined in Minnesota
Statutes, section 353.01, subdivision 41, as necessary to be consistent with
this paragraph;
(2) assessing the
potential for fraudulent applications for duty disability benefits and
implementing measures that can be implemented to detect fraud;
(3) requiring that duty
disability applications be assessed by referring to the VA disability schedule,
which indicates the extent to which a disability impairs a member's ability to
perform the functions of the member's employment position, such that the
percentage derived from the VA disability schedule would be applied to both
maximum benefits and the resulting benefits are the duty disability and health
insurance continuation benefits to which the member is entitled;
(4) requiring the
decision on whether a member has a duty disability be based on a medical
assessment from a medical professional who is not treating the member for the
disability; and
(5) the establishment of
a duty disability review board to consider and determine eligibility for duty
disability benefits and continued health insurance coverage consisting of one
representative appointed by each of the following organizations:
(i) Minnesota Chiefs of
Police Association;
(ii) Minnesota State
Fire Chiefs Association;
(iii) Minnesota
Sheriffs' Association;
(iv) Minnesota Police
and Peace Officers Association;
(v) Minnesota
Professional Fire Fighters Association;
(vi) Law Enforcement
Labor Services;
(vii) League of
Minnesota Cities;
(viii) Association of
Minnesota Counties;
(ix) Minnesota Board of
Psychology; and
(x) Minnesota Board of
Medical Practice.
The work group must
provide a governance structure for the duty disability review board, including
its leadership, meeting schedule, voting and procedural rules, and a process
for reviewing cases and determine the review board's relationship to the Public
Employees Retirement Association, including the association's transfer of
application and supporting documentation to the review board on a confidential
basis.
(f) Report assessment. The work group must consider the following
reports and address key considerations, challenges, recommendations, and
shortcomings identified in the reports in the legislation recommended by the
work group:
(1) "Adequacy of
Disability Benefits for Minnesota Police Officers: Final Report," January 2023, prepared by
numerous authors and presented to the Department of Labor and Industry; and
(2)
"Evaluating PTSD claims in Minnesota's workers' compensation system: Findings and recommendations," October
2025, prepared by numerous authors in collaboration with the Department of
Labor and Industry.
(g) Psychological
treatment assessment. The work group
must assess the success of the psychological condition treatment required under
Minnesota Statutes, section 353.032, in returning members of the police and
fire plan to the workforce and whether the requirement should be repealed in
favor of other treatment options that are likely to have more success. Options include but are not limited to
contracting with resident treatment programs, such as the IAFF Center of
Excellence for Behavioral Health Treatment and Recovery.
(h) Department of Public
Safety reporting. The work group must
assess the required reporting by the commissioner of public safety under
Minnesota Statutes, section 299A.42, subdivision 2, and provide more
specificity regarding the information that must be reported and penalties if
information is not reported by the due date in section 299A.42, subdivision 2.
Subd. 6. Timely
response by agencies. Upon
the request of a co-chair of the work group or the executive director, the
commissioner of public safety, labor and industry, or management and budget, or
the executive director of the Public Employees Retirement Association, as
applicable, must promptly furnish the work group with any data requested as the
work group determines is necessary to fulfill its purpose.
Subd. 7. Retention
of experts. (a) The executive
director, working with the co-chairs of the work group, may retain the services
of experts, including attorneys and consultants, to advise the work group on
topics on which no state agency personnel have expertise, including but not limited
to tax-deferred options for setting aside compensation to pay for health
insurance coverage during periods of duty disability or retirement and the
application of the VA disability schedule to injuries and illness.
(b) With the consent of
the chair, vice chair, or secretary of the commission, the executive director
may pay for the services of experts under paragraph (a) with money in the LPCR
account.
Subd. 8. Recommendations;
proposed legislation. (a)
With the assistance of the executive director, the work group must prepare
proposed legislation that implements the recommendations of the work group. If the work group recommends more than one
approach, the work group must provide alternative legislation.
(b) The executive
director must submit the recommendations of the work group, along with proposed
legislation that implements the recommendations, to the commission by March 1,
2027, or the date all members of the commission have been appointed for the 2027-2028
biennium, whichever is later.
Subd. 9. Meetings;
chair; administrative support. (a)
The executive director must convene the first meeting of the work group by June
30, 2026.
(b) The members of the
work group must elect two co-chairs at the first meeting. The co-chairs are not required to be members
of the work group.
(c) Meetings may be
conducted remotely or in person or a combination of remotely and in person.
(d) Commission staff
must provide meeting space, if needed, and administrative support to the
co-chairs of the work group.
Subd. 10. Compensation;
lobbying; retaliation. (a)
Members of the work group serve without compensation.
(b) Participation in the work group is
not lobbying under Minnesota Statutes, chapter 10A.
(c) An
individual's employer or an organization or association of which an individual
is a member must not retaliate against the individual because of the
individual's participation in the work group.
Subd. 11. Expiration. The work group expires June 30, 2028.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 3. AUTHORIZING
USE OF MONEY IN THE LCPR ACCOUNT.
(a) For purposes of this
section, the terms used in section 1 have the same meaning when the terms are
used in this section and "work group" means the work group
established under section 1.
(b) The LCPR account may
be used:
(1) for independent
actuarial cost assessments for the commission; and
(2) with the consent of
the chair, vice chair, or secretary of the commission, to pay costs incurred by
the executive director, on behalf of the commission, to retain experts,
including attorneys and consultants, to advise the work group on topics on which
no state agency personnel have expertise, including but not limited to
tax-deferred options for setting aside compensation to pay for health insurance
coverage during periods of duty disability or retirement and the application of
the VA disability schedule to injuries and illness based on which a member of
the police and fire plan has applied for duty disability benefits.
EFFECTIVE DATE. This
section is effective the day following final enactment.
ARTICLE 13
SPECIAL LEGISLATION
Section 1. MISSING
IRAP ACCOUNT OF AN ELIGIBLE PERSON.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given.
(b) "Board of
trustees" has the meaning given in Minnesota Statutes, section 354B.20,
subdivision 11.
(c) "IRAP"
means the higher education individual retirement account plan established by
Minnesota Statutes, chapter 354B.
(d) "MN State"
means Minnesota State Colleges and Universities.
Subd. 2. Location
of IRAP account required. (a)
Notwithstanding any state law to the contrary, MN State must locate the IRAP
account of the eligible person described in paragraph (b) to which
contributions deducted from the eligible person's pay in 1991 through 1994 were
deposited or pay the eligible person an amount of $30,000.
(b) The eligible person
is a person who:
(1) was employed by
Winona State University from July 1, 1991, to June 30, 1996; and
(2) has copies of pay
stubs showing payroll deduction contributions to the IRAP dated December 27,
1991; March 20, 1992; August 21, 1992; March 5, 1993; and April 16, 1993, in
amounts of $18.72 or $19.93, which must be considered as adequate proof that payroll
deduction contributions were taken each pay period beginning September 3, 1991,
to October 31, 1994, for deposit into the eligible person's IRAP account.
(c) No
later than 60 days after the effective date of this section, the board of
trustees must either:
(1) locate the eligible
person's IRAP account to which payroll deduction contributions were deposited
and provide the eligible person with information regarding the individual or
entity holding the IRAP account, an accounting of the amounts contributed and
investment earnings thereon, and instructions on how the eligible person can
access the account; or
(2) pay the eligible
person an amount equal to $30,000.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 2. PUBLIC
EMPLOYEES RETIREMENT ASSOCIATION GENERAL EMPLOYEES RETIREMENT PLAN; SERVICE
CREDIT PURCHASE BY AN ELIGIBLE EMPLOYEE.
Subdivision 1. Definitions. For purposes of this section, the
following terms have the meanings given:
(1) "city"
means the city of Minneapolis;
(2) "executive
director" means the executive director of the Public Employees Retirement
Association;
(3) "fund"
means the general employees retirement fund administered by the Public
Employees Retirement Association; and
(4) "general
plan" means the general employees retirement plan of the Public Employees
Retirement Association.
Subd. 2. Authorization. (a) Notwithstanding any state law to
the contrary, an eligible person described in subdivision 3 is entitled to:
(1) have the city pay
the amount required under subdivision 5, paragraph (a), on the eligible
person's behalf; and
(2) upon the city making
the payments required under subdivision 5, paragraphs (a) and (b), receive
credit for allowable service in the general plan for the periods of service
described in subdivision 4.
(b) Upon receiving the
payments described in subdivision 5, the executive director must credit the
eligible person with allowable service for the periods of service described in
subdivision 4.
Subd. 3. Eligible
person. An eligible person is
a person who:
(1) was initially
employed by the city on April 26, 2016, in the fleet services division of the
public works department;
(2) received salary for
periods of employment with the city that occurred beginning May 29, 2016,
through November 4, 2022, and during portions of those periods of employment
the city failed to deduct employee contributions and make employer contributions
as required by Minnesota Statutes, section 353.27; and
(3) terminated
employment with the city on November 4, 2022.
Subd. 4. Periods
of uncredited prior service. The
periods of uncredited prior service available for purchase are:
(1) May 29, 2016, through October 15,
2016;
(2)
April 11, 2017, through October 10, 2017; and
(3) April 27, 2018,
through November, 24, 2018.
Subd. 5. Payment
by employer. (a) On behalf of
the eligible person, the city must pay to the fund an amount equal to the total
amount of employee contributions that would have been deducted from the
eligible person's salary and paid to the fund based on the eligible person's
salary for each period of employment described in subdivision 4, plus interest
compounded annually at the applicable annual rate or rates specified in
Minnesota Statutes, section 356.59, subdivision 3, from the date each employee
contribution deduction should have been paid until the date the payment is
made.
(b) The city must pay to
the fund an amount equal to the total amount of employer contributions that the
city would have made to the fund based on the eligible person's salary for each
period of employment described in subdivision 4, plus interest compounded
annually at the applicable annual rate or rates specified in Minnesota
Statutes, section 356.59, subdivision 3, from the date each employer
contribution should have been paid until the date the payment is made.
(c) The executive
director must determine the amount of the payments required under paragraphs
(a) and (b) and notify the city and the eligible person regarding the amount
and the basis for determining the amount.
(d) The city must make
the payments required under paragraphs (a) and (b) in a lump sum no later than
60 days after the date on which the executive director notifies the city under
paragraph (c).
Subd. 6. Collection
of unpaid amounts. If the
city fails to make all of the payments required by subdivision 5, the executive
director must follow the procedures in Minnesota Statutes, section 353.28,
subdivision 6, to collect the amount not paid.
EFFECTIVE DATE; LOCAL APPROVAL.
This section is effective upon approval by the Minneapolis City
Council and compliance with Minnesota Statutes, section 645.021.
ARTICLE 14
STATE BOARD OF INVESTMENT
Section 1. Minnesota Statutes 2025 Supplement, section 11A.04, is amended to read:
11A.04 DUTIES AND POWERS; APPROPRIATION.
The state board shall:
(1) Act as trustees for each fund for which it invests or manages money in accordance with the standard of care set forth in section 11A.09 if state assets are involved and in accordance with chapter 356A if pension assets are involved.
(2) Formulate policies and procedures deemed necessary and appropriate to carry out its functions. Procedures adopted by the state board must allow fund beneficiaries and members of the public to become informed of proposed board actions. Procedures and policies of the state board are not subject to the Administrative Procedure Act.
(3) Employ an executive director as provided in section 11A.07.
(4) Employ Retain
investment advisors and consultants as it deems necessary.
(6) Maintain a record of its proceedings.
(7) As it deems necessary, establish advisory committees subject to section 15.059 to assist the state board in carrying out its duties.
(8) Not permit state funds to be used for the underwriting or direct purchase of municipal securities from the issuer or the issuer's agent.
(9) Direct the commissioner of management and budget to sell property other than money that has escheated to the state when the state board determines that sale of the property is in the best interest of the state. Escheated property must be sold to the highest bidder in the manner and upon terms and conditions prescribed by the state board.
(10) Undertake any other activities necessary to implement the duties and powers set forth in this section.
(11) Establish a formula or formulas to measure management performance and return on investment. Public pension funds in the state shall utilize the formula or formulas developed by the state board.
(12) Except as otherwise
provided in article XI, section 8, of the Constitution of the state of
Minnesota, employ retain, at its discretion, qualified private
external firms to invest and, manage, or provide
services with respect to the assets of funds over which the state board has
investment management responsibility. There
is annually appropriated to the state board, from the assets of the funds for
which the state board utilizes a private investment manager, sums sufficient to
pay the costs of employing private firms.
Each year, by January 15, the board shall report to the governor and
legislature on the cost and the investment The state board must include
in the report required under section 11A.07, subdivision 4, clause (8), the
management fees paid under this clause and the performance of each
investment manager employed retained by the state board.
(13) Adopt an investment policy statement that includes investment objectives, asset allocation, and the investment management structure for the retirement fund assets under its control. The statement may be revised at the discretion of the state board. The state board shall seek the advice of the council regarding its investment policy statement. Adoption of the statement is not subject to chapter 14.
(14) Adopt a compensation plan setting the terms and conditions of employment for unclassified employees of the state board pursuant to section 43A.18, subdivision 3b.
(15) Contract, as necessary, with the board of trustees of the Minnesota State Colleges and Universities System for the provision of investment review and selection services under section 354B.25, subdivision 3, and arrange for the receipt of payment for those services.
There is annually
appropriated to the state board, from the assets of the funds for which the
state board provides investment services, sums sufficient to pay the costs
of all necessary expenses for the administration of the state
board, including any fees or expenses charged by advisors, consultants, or
external firms. These sums will be
deposited in the State Board of Investment operating account, which must be
established by the commissioner of management and budget in the special
revenue fund.
Sec. 2. Minnesota Statutes 2025 Supplement, section 11A.07, subdivision 4, is amended to read:
Subd. 4. Duties and powers. The executive director, at the direction of the state board, shall:
(1) plan, direct, coordinate, and execute administrative and investment functions in conformity with the policies and directives of the state board and the requirements of this chapter and of chapter 356A;
(3) employ professional and clerical staff as necessary;
(4) report to the state board on all operations under the executive director's control and supervision;
(5) maintain accurate and complete records of securities transactions and official activities;
(6) establish a policy, which is subject to state board approval, relating to the purchase and sale of securities on the basis of competitive offerings or bids;
(7) cause securities acquired to be kept in the custody of the commissioner of management and budget or other depositories consistent with chapter 356A, as the state board deems appropriate;
(8) prepare and file with the director of the Legislative Reference Library a report summarizing the activities of the state board, the council, and the executive director during the preceding fiscal year;
(9) include on the state board's website its annual report and an executive summary of its quarterly reports;
(10) require state officials from any department or agency to produce and provide access to any financial documents the state board deems necessary in the conduct of its investment activities;
(11) with respect to any
fund for which the state board provides investment services, modify the billing
procedure or apportionment of expenses under subdivision 5 to the extent the
executive director determines is appropriate or necessary, with any such
modification consistent with the applicable duties in this chapter and section
356A.04;
(11) (12) receive
and expend legislative appropriations; and
(12) (13) undertake
any other activities necessary to implement the duties and powers set forth in
this subdivision consistent with chapter 356A.
Sec. 3. Minnesota Statutes 2024, section 11A.07, subdivision 5, is amended to read:
Subd. 5. Apportionment
of expenses. (a) The annual
expenses incurred by the State Board of Investment will state board,
including any fees or expenses charged by advisors, consultants, or external
firms, must be apportioned among the state general fund, the retirement
funds administered by the Minnesota State Retirement System, Public Employees
Retirement Association, and Teachers Retirement Association, and all other
funds as follows: for which
the state board provides investment services, in accordance with this
subdivision. There is annually
appropriated to the state board, from the assets of all funds for which the
state board provides investment services, sums sufficient to pay the
apportioned expenses. These sums must be
deposited in the State Board of Investment operating account, which must be
established by the commissioner of management and budget in the special revenue
fund. Those sums must be apportioned as
follows:
(1) on a biennial basis,
the State Board of Investment, in accordance with biennial budget procedures
established by the commissioner of management and budget, may request a direct
appropriation that represents the portion of the State Board of Investment
expenses necessary to provide investment services to the state general fund. This appropriation must be deposited in the
State Board of Investment operating account;
(2)the actual expenses
allocable solely to a specific fund or in the case of multiple funds, among the
funds proportionally based on weighted average assets under management during
the fiscal year; and
(2) next, the executive
director shall apportion the expenses incurred by the State Board of
Investment state board, less the charge to the state general fund
charges apportioned under clause (1) and accounting for any modification
made pursuant to subdivision 4, clause (11), among the funds whose
assets are invested by the State Board of Investment, with the exception of the
state general fund, for which the state board provides investment
services, with such expenses allocated proportionally based on the weighted
average assets under management during the fiscal year. The amounts necessary to pay these charges
are apportioned from the investment earnings of each fund. Receipts must be credited to the State Board
of Investment operating account;
(3) (b) The actual
expenses apportioned and charged to the funds under paragraph (a), with
the exception of the state general fund and the retirement funds
administered by the Minnesota State Retirement System, Public Employees
Retirement Association, and Teachers Retirement Association, must be
calculated, billed, and paid at least on a quarterly basis in accordance
with procedures for interdepartmental payments established by the commissioner
of management and budget; and.
Sums received to pay the expenses must be deposited in the operating
account under section 11A.04.
(4) (c) The
annual estimated expenses to be incurred by the State Board of Investment
state board that will be payable by the retirement funds administered by
the Minnesota State Retirement System, Public Employees Retirement Association,
and Teachers Retirement Association must be deposited in the State Board of
Investment operating account under section 11A.04 on or about the
first business day of each fiscal year. A
reconciliation of the actual expenses allocable to each retirement
fund compared to the applicable estimated costs expenses
must occur at least annually at the end of each the fiscal
year with any surplus or. Any
deficit being credited or debited to each of the respective funds. The State Board of Investment must present a
statement of accrued actual determined by such reconciliation is due and
payable to the State Board of Investment operating account promptly upon notice
of the amount due. Any fiscal year-end
surplus may, at the executive director's discretion, be retained in the
operating account and credited against the following fiscal year's estimated
expenses to of each respective retirement fund at the
end of each quarter during each fiscal year. The executive director must refund to the
respective retirement fund any portion of any surplus not credited against the
following fiscal year's estimated expenses.
Sec. 4. Laws 2025, chapter 39, article 1, section 8, is amended to read:
|
Sec. 8. STATE
BOARD OF INVESTMENT |
|
$139,000 |
|
$ |
ARTICLE 15
ADMINISTRATIVE, TECHNICAL, AND CONFORMING CHANGES RELATED TO VOLUNTEER AND PAID ON-CALL FIREFIGHTERS
Section 1. Minnesota Statutes 2024, section 6.496, is amended to read:
6.496 VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS; STATE BOARD OF
INVESTMENT OPTIONS.
(a) Annually, on or before
March 1, the state auditor shall provide all volunteer firefighter
relief associations with recent and historic investment performance results of
the various accounts of the Minnesota supplemental investment fund and
information on the process and procedures for a firefighters firefighter
relief association to utilize the Minnesota supplemental investment fund as an
investment option.
(c) The information
provision required by paragraphs (a) and (b) may be provided in an electronic
or other format if the state auditor determines that the format is reasonably
accessible by a preponderance of volunteer firefighter relief
associations.
Sec. 2. Minnesota Statutes 2024, section 11A.17, subdivision 1, is amended to read:
Subdivision 1. Purpose; accounts; continuation. (a) The purpose of the supplemental investment fund is to provide an investment vehicle for the assets of various public retirement plans and funds.
(b) The state board shall determine and make available investment accounts within the supplemental investment fund. These accounts shall include an appropriate array of diversified investment options for participants of the public retirement plans under subdivision 5.
(c) The assets of the supplemental investment fund must be invested by the state board in types of investments permitted under section 11A.24.
(d) The state board shall
make available a volunteer firefighter account for the statewide lump-sum
volunteer firefighter plan under section 353G.02.
Sec. 3. Minnesota Statutes 2024, section 144F.01, subdivision 2, is amended to read:
Subd. 2. Authority to establish. (a) Two or more political subdivisions may establish, by resolution of their governing bodies, a special taxing district to provide fire protection or emergency medical services, or both, in the area of the district, comprising the jurisdiction of each of the political subdivisions forming the district. For a county that participates in establishing a district, the county's jurisdiction comprises the unorganized territory of the county that it designated in its resolution for inclusion in the district. The area of the special taxing district need not be contiguous or its boundaries continuous.
(b) Before establishing a district under this section, the participating political subdivisions must enter into an agreement that specifies how any liabilities, other than debt issued under subdivision 6, and assets of the district will be distributed if the district is dissolved. The agreement may also include other terms, including a method for apportioning the levy of the district among participating political subdivisions under subdivision 4, paragraph (b), as the political subdivisions determine appropriate. The agreement must be adopted no later than upon passage of the resolution establishing the district under paragraph (a), but may be later amended by agreement of each of the political subdivisions participating in the district.
(c) If two or more
political subdivisions that currently operate separate fire departments seek to
merge fire departments into one fire department, or if a political subdivision
with an existing fire department requests to join a special taxing district with
an established fire department, the resolution under paragraph (a) or agreement
under paragraph (b) must specify which, if any, volunteer firefighter pension
plan relief association or account in the statewide volunteer
firefighter plan is associated with the district. A special taxing district that operates a
fire department under this section may be associated with only one firefighters
firefighter relief association or one account in the statewide volunteer
firefighter plan at one time.
Sec. 4. Minnesota Statutes 2025 Supplement, section 151.37, subdivision 12, is amended to read:
Subd. 12. Administration of opiate antagonists for drug overdose. (a) A licensed physician, a licensed advanced practice registered nurse authorized to prescribe drugs pursuant to section 148.235, or a licensed physician assistant may authorize the following individuals to administer opiate antagonists, as defined in section 604A.04, subdivision 1:
(1) an emergency medical responder registered pursuant to section 144E.27;
(2) a peace officer as defined in section 626.84, subdivision 1, paragraphs (c) and (d);
(3) correctional employees of a state or local political subdivision;
(4) staff of community-based health disease prevention or social service programs;
(5) a volunteer or paid on-call firefighter;
(6) a nurse or any other personnel employed by, or under contract with, a postsecondary institution or a charter, public, or private school; and
(7) transit rider investment program personnel authorized under section 473.4075.
(b) For the purposes of this subdivision, opiate antagonists may be
administered by one of these individuals only if:
(1) the licensed physician, licensed physician assistant, or licensed advanced practice registered nurse has issued a standing order to, or entered into a protocol with, the individual; and
(2) the individual has training in the recognition of signs of opiate overdose and the use of opiate antagonists as part of the emergency response to opiate overdose.
(c) Nothing in this section prohibits the possession and administration of naloxone pursuant to section 604A.04.
(d) Notwithstanding section 148.235, subdivisions 8 and 9, a licensed practical nurse is authorized to possess and administer according to this subdivision an opiate antagonist in a school setting.
Sec. 5. Minnesota Statutes 2025 Supplement, section 181.101, is amended to read:
181.101 WAGES; HOW OFTEN PAID.
(a) Except as provided in paragraph (b), every employer must pay all wages, including salary, earnings, and gratuities earned by an employee at least once every 31 days and all commissions earned by an employee at least once every three months, on a regular payday designated in advance by the employer regardless of whether the employee requests payment at longer intervals. Unless paid earlier, the wages earned during the first half of the first 31-day pay period become due on the first regular payday following the first day of work. If wages or commissions
(b) An employer of a volunteer
or paid on-call firefighter, as defined in section 424A.001, subdivision 10
10a, a member of an organized first responder squad that is formally
recognized by a political subdivision in the state, or a volunteer ambulance
driver or attendant must pay all wages earned by the volunteer paid
on-call firefighter, first responder, or volunteer ambulance driver or
attendant at least once every 31 days, unless the employer and the employee
mutually agree upon payment at longer intervals.
Sec. 6. Minnesota Statutes 2024, section 299K.03, subdivision 3, is amended to read:
Subd. 3. Appointed members. (a) The governor shall appoint 18 additional members to the commission.
(b) The 18 appointed members must include one representative each of fire chiefs, professional firefighters, volunteer or paid on-call firefighters, fire marshals, law enforcement personnel, emergency medical personnel, health professionals, wastewater treatment operators, labor, emergency managers, and local elected officials, three representatives of community groups or the public, and four representatives from business and industry, at least one of whom must represent small business.
(c) At least four of the appointed members must reside outside the metropolitan area, as defined in section 473.121, subdivision 2.
(d) The appointed members must be appointed, serve, and be compensated in the manner provided in section 15.059.
Sec. 7. Minnesota Statutes 2024, section 299N.02, subdivision 1, is amended to read:
Subdivision 1. Membership. Notwithstanding any provision of chapter 15 to the contrary, the Board of Firefighter Training and Education consists of the following members:
(1) five members representing the Minnesota State Fire Department Association, four of whom must be volunteer or paid on-call firefighters and one of whom may be a full-time firefighter, appointed by the governor;
(2) two members representing the Minnesota State Fire Chiefs Association, one of whom must be a volunteer fire chief, appointed by the governor;
(3) two members representing the Minnesota Professional Fire Fighters, appointed by the governor;
(5) two members representing Minnesota towns, appointed by the governor;
(6) the commissioner of public safety or the commissioner's designee; and
(7) one public member not affiliated or associated with any member or interest represented in clauses (1) to (6), appointed by the governor.
The Minnesota State Fire Department Association shall recommend five persons to be the members described in clause (1), the Minnesota State Fire Chiefs Association shall recommend two persons to be the members described in clause (2), the Minnesota Professional Fire Fighters shall recommend two persons to be the members described in clause (3), the League of Minnesota Cities shall recommend two persons to be the members described in clause (4), and the Minnesota Association of Townships shall recommend two persons to be the members described in clause (5). In making the appointments the governor shall try to achieve representation from all geographic areas of the state.
Sec. 8. Minnesota Statutes 2024, section 352.98, subdivision 1, is amended to read:
Subdivision 1. Plan created. This section must be administered by the executive director of the system with the advice and consent of the board of directors. The executive director shall establish a plan or plans, known as health care savings plans, through which an officer or employee of the state or of a political subdivision, including officers or employees covered by a plan or fund specified in chapter 353D, 354B, 354D, 424A, or section 356.20, subdivision 2, may save to cover health care costs. For purposes of this section, a volunteer or paid on-call firefighter is an employee. The executive director shall make available one or more trusts, including a governmental trust or governmental trusts, authorized under the Internal Revenue Code to be eligible for tax-preferred or tax-free treatment through which employers and employees can save to cover health care costs.
Sec. 9. Minnesota Statutes 2025 Supplement, section 353D.01, subdivision 2, is amended to read:
Subd. 2. Eligibility. (a) Eligibility to participate in the plan is available to:
(1) any elected or appointed local government official of a governmental subdivision who elects to participate in the plan under section 353D.02, subdivision 1, and who, for the service rendered to a governmental subdivision, is not a member of the association within the meaning of section 353.01, subdivision 7;
(2) physicians who, if they did not elect to participate in the plan under section 353D.02, subdivision 2, would meet the definition of member under section 353.01, subdivision 7;
(3) basic and advanced life-support emergency medical service personnel who are employed by any public ambulance service that elects to participate under section 353D.02, subdivision 3;
(4) members of a municipal rescue squad associated with the city of Litchfield in Meeker County, or of a county rescue squad associated with Kandiyohi County, if an independent nonprofit rescue squad corporation, incorporated under chapter 317A, performing emergency management services, and if not affiliated with a fire department or ambulance service and if its members are not eligible for membership in that fire department's or ambulance service's relief association or comparable pension plan;
(5) members of the municipal rescue squad associated with the city of Eden Valley in Stearns and Meeker Counties who are not eligible for membership in the police and fire retirement plan or a firefighter relief association affiliated with the city and who elect to participate in the plan under section 353D.02, subdivision 4, paragraph (b);
(7) city managers who
elected to be excluded from the general employees retirement plan of the
association under section 353.028 and who elected to participate in the public
employees defined contribution plan under section 353.028, subdivision 3,
paragraph (b);
(8) volunteer or emergency
paid on-call firefighters serving in a municipal fire department or an
independent nonprofit firefighting corporation who are not covered by the
police and fire retirement plan and who are not covered by or a firefighters
firefighter relief association and who elect to participate in the public
employees defined contribution plan;
(9) any elected county sheriff who is a former member of the police and fire plan, is receiving a retirement annuity as provided under section 353.651, and does not have previous employment with the county for which the sheriff was elected; and
(10) persons appointed to serve on a board or commission of a governmental subdivision or an instrumentality thereof.
(b) Individuals otherwise eligible to participate in the plan under this subdivision who are currently covered by a public or private pension plan because of their employment or provision of services are not eligible to participate in the plan.
(c) A former participant is a person who has terminated eligible employment or service and has not withdrawn the value of the person's individual account.
Sec. 10. Minnesota Statutes 2025 Supplement, section 353D.02, subdivision 7, is amended to read:
Subd. 7. Certain
Volunteer or paid on-call firefighters.
Volunteer or paid on-call firefighters who are serving as
members of a municipal fire department or an independent nonprofit firefighting
corporation and who are not covered for that firefighting service by the public
employees police and fire retirement plan under sections 353.63 to 353.68, by a
firefighters relief association under chapter 424A, or by the statewide
volunteer firefighter retirement plan under chapter 353G may elect to
participate in the plan within the first 30 days of commencing service by
completing and signing a membership election on a form prescribed by the
executive director of the association. The
membership election must be filed with the association within 60 days of
commencing service. An eligible
firefighter's election is irrevocable. No
employer contribution is payable by the fire department or the firefighting
corporation unless the municipal governing body or the firefighting corporation
governing body, whichever applies, ratifies the membership election.
Sec. 11. Minnesota Statutes 2024, section 353D.03, subdivision 6, is amended to read:
Subd. 6. Volunteer
or paid on-call firefighters. (a)
Unless paragraph (b) applies, a volunteer or emergency paid
on-call firefighter who elects to participate in the plan shall contribute at
least 7.5 percent of any compensation received for firefighting services.
Sec. 12. Minnesota Statutes 2024, section 353G.18, subdivision 4, is amended to read:
Subd. 4. Termination
procedures. (a) The participation of
a departing entity in the plan and the coverage of the departing firefighters
by the plan shall must cease as of the date the requirements in
this subdivision are completed and all assets credited to the entity's account
are distributed.
(b) The governing board of
the departing entity shall must adopt the resolutions under
subdivision 5 and deliver the resolutions to the executive director.
(c) The executive director shall
must:
(1) fully vest all departing firefighters as of the termination date and consider each departing firefighter 100 percent vested in the pension benefit accrued by the departing firefighter under the entity's account as of the termination date;
(2) determine the present value of each departing firefighter's accrued benefit as of the termination date, taking into account the benefit level under section 353G.11 or otherwise in effect for the departing firefighter as determined by the executive director;
(3) determine, as of the termination date, the value of accrued liabilities, including administrative expenses incurred or reasonably anticipated to be incurred through the distribution date, and the value of assets attributable to the entity's account; and
(4) to the extent necessary to minimize the risk of investment losses between the termination date and the distribution date, reinvest the assets credited to the entity's account in low-risk investments.
(d) If the entity's account
has assets in excess of accrued liabilities, the executive director shall
must allocate the excess among all active departing firefighters
in the same proportion that the present value of the accrued benefit for each active
departing firefighter bears to the total present value of the accrued benefits
of all active departing firefighters, and each active departing
firefighter's benefit, as determined under paragraph (c), clause (2), shall
must be increased by the active departing firefighter's share of
the excess.
(e) The executive director shall
must, as soon as practicable after the termination date, distribute to
each departing firefighter, regardless of whether the departing firefighter has
attained age 50, the firefighter's benefit as calculated by the executive
director under paragraphs (c) and (d). The
distribution shall must be made in a lump sum, either as a
payment to the departing firefighter or as a direct rollover, if elected by the
firefighter. If the departing
firefighter is deceased, then the firefighter's benefit shall must
be paid to the firefighter's survivor under section 353G.12 or as a direct
rollover, if elected by the survivor.
(f) The executive director shall
must pay supplemental benefits under section 424A.10, but only to the
extent that the executive director will be reimbursed under section 424A.10,
subdivision 3.
Subd. 8. Actuarial assumptions. (a) The actuarial valuation must use the applicable following investment return assumption:
|
plan |
investment return assumption |
|
|
general state employees retirement plan |
7% |
|
|
correctional state employees retirement plan |
7 |
|
|
State Patrol retirement plan |
7 |
|
|
legislators retirement plan, and for the constitutional officers calculation of total plan liabilities |
0 |
|
|
judges retirement plan |
7 |
|
|
general public employees retirement plan |
7 |
|
|
public employees police and fire retirement plan
|
7 |
|
|
local government correctional service retirement plan |
7 |
|
|
teachers retirement plan |
7 |
|
|
St. Paul teachers retirement plan |
7 |
|
|
Bloomington Fire Department Relief Association |
6 |
|
|
|
5 |
|
|
monthly benefit
retirement plans in the statewide volunteer firefighter |
6 |
|
(b) The actuarial valuation for each of the covered retirement plans listed in section 356.415, subdivision 2, and the St. Paul Teachers Retirement Fund Association must take into account the postretirement adjustment rate or rates applicable to the plan as specified in section 354A.29, subdivision 7, or 356.415, whichever applies.
(c) The actuarial valuation must use the applicable salary increase and payroll growth assumptions found in the appendix to the standards for actuarial work. The appendix must be updated whenever new assumptions have been approved or deemed approved under subdivision 18.
(d) The assumptions set forth in the appendix to the standards for actuarial work continue to apply, unless a different salary assumption or a different payroll increase assumption:
(1) has been proposed by the governing board of the applicable retirement plan;
(2) is accompanied by the concurring recommendation of the actuary retained under section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most recent actuarial valuation report if section 356.214 does not apply; and
(3) has been approved or deemed approved under subdivision 18.
Subd. 11. Amortization
contributions. (a) The actuarial
valuation of each pension plan listed in subdivision 8, paragraph (a), other
than the legislators retirement plan, the Bloomington Fire Department Relief
Association, and the local monthly benefit volunteer firefighter
relief associations, must contain an exhibit indicating the additional annual
contribution sufficient to amortize on a level percent of payroll basis the
unfunded actuarial accrued liability resulting from any of the following
changes, over the period specified for that change, except that the pension
plan's unfunded actuarial accrued liability as of July 1, 2024, must be
amortized over a period that ends June 30, 2048:
(1) experience gain or loss: 15 years;
(2) assumption or method change: 20 years;
(3) benefit change for active members: 15 years;
(4) long-term benefit change for inactive members: 15 years;
(5) short-term benefit change for inactive members: the number of years during which the benefit change will be in effect; and
(6) an annual contribution that is more or less than the actuarially determined contribution: 15 years.
(b) The amortization periods specified in paragraph (a) apply:
(1) unless the standards for actuarial work state otherwise;
(2) except that, for the legislators retirement plan, the additional annual contribution sufficient to amortize the unfunded actuarial accrued liability must be calculated on a level dollar basis with an amortization period of one year; and
(3) except that, for the State Patrol retirement plan, the public employees police and fire retirement plan, and the Teachers Retirement Association, the unfunded actuarial accrued liability resulting from benefit increases enacted in 2025 must be amortized over a period that ends June 30, 2048.
Sec. 15. Minnesota Statutes 2024, section 356.216, is amended to read:
356.216 CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL MONTHLY VOLUNTEER
FIREFIGHTER RELIEF ASSOCIATIONS.
The provisions of section
356.215 that govern the contents of actuarial valuations apply to the
Bloomington Fire Department Relief Association and to any local monthly firefighters
firefighter relief association required to make an actuarial report
under this section, except as follows:
(1) in lieu of the amortization date specified in section 356.215, subdivision 11, the appropriate amortization target date specified in clause (2) or section 424A.093, subdivision 4, paragraph (c), must be used in calculating any required amortization contribution;
(2) for the Bloomington Fire Department Relief Association, any unfunded actuarial accrued liability must be amortized on a level dollar basis by December 31 of the year occurring 20 years after the year in which the unfunded actuarial accrued liability initially occurred, and, if subsequent actuarial valuations for the Bloomington Fire
(3) in addition to the tabulation of active members and annuitants provided for in section 356.215, subdivision 13, the prospective annual service pensions under the benefit plan for active members must be reported;
(4) actuarial valuations required under Laws 2013, chapter 111, article 5, section 39, must be made annually and actuarial valuations required under section 424A.093, subdivision 2, must be made every four years or as frequently as required by generally accepted accounting principles in the government sector, whichever frequency requirement is shorter;
(5) the actuarial balance sheet showing accrued assets valued at market value, actuarial accrued liabilities, and the unfunded actuarial accrued liability must include the following required reserves:
(i) for active members:
(A) retirement benefits or service pensions;
(B) disability benefits; and
(C) survivors' benefits;
(ii) for deferred annuitants' benefits;
(iii) for former members without vested rights;
(iv) for annuitants:
(A) retirement annuities or service pensions;
(B) disability annuities; and
(C) survivor benefits.
In addition to those required reserves, separate items must be shown for additional benefits, if any, which may not be appropriately included in the reserves listed above; and
(6) actuarial valuations are due to be filed with the state auditor by the first day of the seventh month after the end of the fiscal year which the actuarial valuation covers.
Sec. 16. Minnesota Statutes 2024, section 356.401, subdivision 3, is amended to read:
Subd. 3. Covered retirement plans. The provisions of this section apply to the following retirement plans:
(1) the legislators retirement plan, established by chapter 3A, including constitutional officers as specified in that chapter;
(2) the general state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;
(4) the State Patrol retirement plan, established by chapter 352B;
(5) the unclassified state employees retirement program, established by chapter 352D;
(6) the general employees retirement plan of the Public Employees Retirement Association, established by chapter 353;
(7) the public employees police and fire plan of the Public Employees Retirement Association, established by chapter 353;
(8) the public employees defined contribution plan, established by chapter 353D;
(9) the local government correctional service retirement plan of the Public Employees Retirement Association, established by chapter 353E;
(10) the statewide lump-sum
volunteer firefighter plan, established by chapter 353G;
(11) the Teachers Retirement Association, established by chapter 354;
(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
(13) the individual retirement account plan, established by chapter 354B;
(14) the higher education supplemental retirement plan, established by chapter 354C; and
(15) the judges retirement fund, established by chapter 490.
Sec. 17. Minnesota Statutes 2024, section 356.611, subdivision 6, is amended to read:
Subd. 6. Covered retirement plan. As used in this section, "covered retirement plan" means any of the following plans:
(1) the legislator's retirement plan, established by chapter 3A, including constitutional officers as specified in that chapter;
(2) the general state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;
(3) the correctional state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;
(4) the State Patrol retirement plan, established by chapter 352B;
(5) the unclassified state employees retirement plan, established by chapter 352D;
(6) the general employees retirement plan of the Public Employees Retirement Association, established by chapter 353;
(8) the public employees defined contribution plan, established by chapter 353D;
(9) the local government correctional service retirement plan of the Public Employees Retirement Association, established by chapter 353E;
(10) the statewide volunteer
firefighter retirement plan, established by chapter 353G;
(11) the Teachers Retirement Association, established by chapter 354;
(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
(13) the higher education individual retirement account plan, established by chapter 354B;
(14) the higher education supplemental retirement plan, established by chapter 354C;
(15) a retirement plan of a volunteer
firefighter retirement relief association subject to chapter
424A;
(16) the judges retirement plan, established by chapter 490; or
(17) the Bloomington Fire Department Relief Association governed by Laws 2013, chapter 111, article 5, sections 31 to 42; Minnesota Statutes 2000, chapter 424; and Laws 1965, chapter 446, as amended.
Sec. 18. Minnesota Statutes 2024, section 356.635, subdivision 2a, is amended to read:
Subd. 2a. Required distributions from defined contribution plans. (a) This section applies to any covered retirement plan that is a defined contribution plan, including but not limited to the following:
(1) the unclassified state employees retirement plan, established by chapter 352D;
(2) the public employees defined contribution plan, established by chapter 353D;
(3) the defined contribution
plan that is part of the statewide volunteer firefighter retirement
plan, established by chapter 353G;
(4) the higher education individuals retirement account plan, established by chapter 354B;
(5) the higher education supplemental retirement plan, established by chapter 354C; and
(6) a defined contribution relief association, as defined under section 424A.001, subdivision 1c.
(b) If the participant dies before the required minimum distribution begins, the participant's account must be distributed in a lump sum no later than as follows:
(1) if the participant's
account balance is payable to an eligible designated beneficiary, the
distribution must be made by December 31 of the calendar year immediately
following the calendar year in which the participant died. If the eligible designated beneficiary is the
surviving spouse, the surviving spouse may elect to delay payment until
December 31 of the calendar year in which the participant would have attained
the participant's required beginning date.
Effective for calendar years beginning after December 31, 2023, A
surviving spouse who is the member's sole designated beneficiary may elect to
be treated as if the surviving spouse were the member as provided under section
401(a)(9)(B)(iv) of the Internal Revenue Code;
(3) if the participant's account balance is payable to a designated beneficiary who is not an eligible designated beneficiary, the participant's account must be distributed by December 31 of the calendar year containing the tenth anniversary of the participant's death.
(c) Upon the death of the participant after distribution of the participant's account balance begins, any remaining portion of the participant's account balance shall continue to be distributed at least as rapidly as under the method of distribution in effect at the time of the participant's death, provided that the portion of the participant's account balance payable to a designated beneficiary who is not an eligible designated beneficiary must be distributed in its entirety by December 31 of the calendar year containing the tenth anniversary of the participant's death.
(d) Upon the death of an eligible designated beneficiary, or the attainment of the age of majority of an eligible designated beneficiary who is a minor child of the participant, before distribution of the participant's entire account balance under paragraph (b) or (c), the remainder of the participant's account balance shall be distributed by December 31 of the calendar year containing the tenth anniversary of the eligible designated beneficiary's death, or by December 31 of the calendar year in which the child attains the age of majority plus ten years, as applicable.
(e) Notwithstanding any
other provisions of this subdivision, a participant or beneficiary, who would
have been required to receive required minimum distributions in 2020 (or paid
in 2021 for the 2020 calendar year for a participant with a required beginning
date of April 1, 2021) but for the enactment of section 401(a)(9)(I) of the
Internal Revenue Code, and who would have satisfied that requirement by
receiving a distribution that satisfies the required minimum distribution for
2020, will receive that distribution unless the participant or beneficiary
chooses not to receive the distribution.
Solely for purposes of applying the direct rollover provisions of
section 356.633, such distributions will be treated as eligible rollover
distributions in 2020.
Sec. 19. Minnesota Statutes 2024, section 356.65, subdivision 1, is amended to read:
Subdivision 1. Definitions. For purposes of this section, unless the context clearly indicates otherwise, each of the following terms has the meaning given to it:
(a) "Public pension
fund" means any public pension plan as defined in section 356.63,
paragraph (b), and any Minnesota firefighters firefighter relief
association which is established under chapter 424A and governed under
sections 424A.091 to 424A.096.
(b) "Unclaimed public pension fund amounts" means any amounts representing accumulated member contributions, any outstanding unpaid annuity, service pension or other retirement benefit payments, including those made on warrants issued by the commissioner of management and budget, which have been issued and delivered for more than six months prior to the date of the end of the fiscal year applicable to the public pension fund, and any applicable interest to the credit of:
(1) an inactive or former member of a public pension fund who is not entitled to a defined retirement annuity and who has not applied for a refund of those amounts within five years after the last member contribution was made; or
(2) a deceased inactive or former member of a public pension fund if no survivor is entitled to a survivor benefit and no survivor, designated beneficiary or legal representative of the estate has applied for a refund of those amounts within five years after the date of death of the inactive or former member.
356B.02 DRAFTING PENSION AND RETIREMENT BILLS.
(a) Notwithstanding section
3C.035, an agency or pension system intending to urge the legislature to adopt
a bill affecting the pension system, one or more plans administered by the
pension system, or one or more volunteer firefighter relief
associations; or relating to pensions or retirement shall deliver the drafting
request for the bill to the executive director of the commission no later than
November 1 before the regular session of the legislature at which adoption will
be urged.
(b) The executive director of the commission may accept a drafting request from an agency or a pension system after November 1 if the executive director of the commission determines that the request relates to a matter that could not reasonably have been foreseen by November 1 or for which the requester provides other reasonable justification for delay.
Sec. 21. Minnesota Statutes 2024, section 423A.02, subdivision 1b, is amended to read:
Subd. 1b. Additional amortization state aid. (a) Annually, the commissioner shall allocate the additional amortization state aid, if any, including any state aid in excess of the limitation in subdivision 4, on the following basis:
(1) 47.1 percent to the city of Minneapolis to defray the employer costs associated with police and firefighter retirement coverage;
(2) 25.8 percent as
additional funding to support the minimum fire state aid for volunteer
firefighter relief associations under section 477B.03, subdivision 5;
(3) 12.9 percent to the city of Duluth to defray employer costs associated with police and firefighter retirement coverage;
(4) 12.9 percent to the St. Paul Teachers Retirement Fund Association if the investment performance requirement of paragraph (c) is met; and
(5) 1.3 percent to the city of Virginia to defray the employer contribution under section 353.665, subdivision 8, paragraph (d).
If there is no additional
employer contribution under section 353.665, subdivision 8a, certified under
subdivision 1, paragraph (d), clause (2), with respect to the former
Minneapolis Police Relief Association and the former Minneapolis Fire
Department Relief Association, the commissioner shall allocate that 47.1
percent of the aid as follows: 49
percent to the Teachers Retirement Association, 21 percent to the St. Paul
Teachers Retirement Fund Association, and 30 percent as additional funding to
support minimum fire state aid for volunteer firefighter relief
associations under section 477B.03, subdivision 5. If there is no employer contribution by the
city of Virginia under section 353.665, subdivision 8, paragraph (d), for the
former Virginia Fire Department Relief Association certified on or before June
30 by the executive director of the Public Employees Retirement Association,
the commissioner shall allocate that 1.3 percent of the aid as follows: 49 percent to the Teachers Retirement
Association, 21 percent to the St. Paul Teachers Retirement Fund
Association, and 30 percent as additional funding to support minimum fire state
aid for volunteer firefighter relief associations under section 477B.03,
subdivision 5.
(b) The allocation must be made by the commissioner of revenue on October 1 annually.
(d) The amounts required under this subdivision are the amounts annually appropriated to the commissioner of revenue under section 477B.03, subdivision 5, paragraph (d), if any, and the aid amounts in excess of the limitation in subdivision 4.
Sec. 22. Minnesota Statutes 2024, section 423A.02, subdivision 3, is amended to read:
Subd. 3. Reallocation of amortization state aid. (a) Seventy percent of the difference between $5,720,000 and the current year amortization aid distributed under subdivision 1 that is not distributed for any reason to a municipality must be distributed by the commissioner of revenue according to this paragraph. The commissioner shall distribute 60 percent of the amounts derived under this paragraph to the Teachers Retirement Association, and 40 percent to the St. Paul Teachers Retirement Fund Association to fund the unfunded actuarial accrued liabilities of the respective funds. These payments must be made on July 15 each fiscal year. If the St. Paul Teachers Retirement Fund Association or the Teachers Retirement Association satisfies subdivision 5, eligibility for its portion of this aid ceases. Amounts remaining in the undistributed balance account at the end of the biennium if aid eligibility ceases cancel to the general fund.
(b) In order to receive amortization aid under paragraph (a), before June 30 annually Independent School District No. 625, St. Paul, must make an additional contribution of $800,000 each year to the St. Paul Teachers Retirement Fund Association.
(c) Thirty percent of the
difference between $5,720,000 and the current year amortization aid under
subdivision 1 that is not distributed for any reason to a municipality must be
distributed under section 477B.03, subdivision 5, as additional funding to support
a minimum fire state aid amount for volunteer firefighter relief
associations.
Sec. 23. Minnesota Statutes 2024, section 424A.01, subdivision 3, is amended to read:
Subd. 3. Status
of nonmember volunteer firefighters.
No person who is serving as a firefighter in a fire department but
who is not a member of the applicable firefighters relief association is
entitled to any service pension or ancillary benefits from the relief
association.
Sec. 24. Minnesota Statutes 2024, section 424B.10, subdivision 1b, is amended to read:
Subd. 1b. Benefits. (a) The successor relief association following the consolidation of two or more defined benefit relief associations must be a defined benefit relief association.
(b) Notwithstanding any provision of section 424A.02, subdivision 3, to the contrary, the initial service pension amount of the subsequent defined benefit relief association as of the effective date of consolidation is either the service pension amount specified in clause (1) or the service pension amounts specified in clause (2), as provided for in the consolidated relief association's articles of incorporation or bylaws:
(1) the highest dollar amount service pension amount of any prior firefighters relief association in effect immediately before the consolidation initiation if the pension amount was implemented consistent with section 424A.02; or
(c) Any increase in the service pension amount beyond the amount implemented under paragraph (a) must conform with the requirements and limitations of section 424A.02 and sections 424A.091 to 424A.095.
Sec. 25. Minnesota Statutes 2024, section 465.90, is amended to read:
465.90 MUNICIPAL AUTHORITY TO PERMIT SOLICITATION BY FIREFIGHTERS.
Notwithstanding any law or ordinance to the contrary, a municipality may by resolution permit full-time permanent firefighters employed by the municipality while on duty, or volunteer or paid on-call firefighters serving the municipality while not on duty, to solicit charitable contributions from motorists if the following conditions are met:
(1) the solicitation is for only one charitable organization annually, and that charitable organization is qualified under section 501(c)(3) of the Internal Revenue Code and is registered as a charity under state law;
(2) the solicitation does not occur for more than three days, whether or
not consecutively, in any calendar year; and
(3) the charitable organization provides to the municipality proof of commercial general liability insurance against claims for bodily injury and property damage if the injury or damage occurs (i) on public streets, roads, or rights-of-way, or (ii) as a result of the solicitor's activities. The insurance must have a limit of no less than $1,500,000 per occurrence and an endorsement to the policy naming the municipality as an additional insured.
Sec. 26. REVISOR
INSTRUCTION.
(a) In Minnesota
Statutes, the revisor of statutes shall change the terms "volunteer
firefighters relief associations," "volunteer firefighters' relief
associations," "firefighters relief associations," and
"firefighters' relief associations" to "firefighter relief
associations" wherever the terms appear.
(b) In Minnesota
Statutes, the revisor of statutes shall change the terms "firefighters
relief association" and "firefighters' relief association" to
"firefighter relief association" wherever the terms appear.
(c) The revisor shall
make any necessary grammatical changes or changes to sentence structure
necessary to preserve the meaning of the text as a result of the changes.
Sec. 27. EFFECTIVE
DATE.
Sections 1 to 26 are
effective the day following final enactment.
ARTICLE 16
MISCELLANEOUS TECHNICAL CORRECTIONS
Section 1. Minnesota Statutes 2025 Supplement, section 299A.465, subdivision 1, is amended to read:
Subdivision 1. Officer or firefighter disabled in line of duty. (a) This subdivision applies to any peace officer or firefighter:
(1) who the Public Employees Retirement Association or the Minnesota State Retirement System determines is eligible to receive a duty disability benefit pursuant to section 353.656 or 352B.10, subdivision 1, respectively; or
(b) Determinations made in accordance with paragraph (a) are binding on the peace officer or firefighter, employer, and state. The determination must be made by the executive director of the Public Employees Retirement Association or by the executive director of the Minnesota State Retirement System, whichever applies, and is not subject to section 356.96, subdivision 2. Upon making a determination, the executive director must provide written notice to the peace officer or firefighter and the employer. The notice must include a written statement of the reasons for the determination. If the notice is from the executive director of the Minnesota State Retirement System, the notice must also include:
(1) a notice that the person may petition for a review of the determination by requesting that a contested case be initiated before the Office of Administrative Hearings, the cost of which must be borne by the peace officer or firefighter and the employer; and
(2) a statement that any person who does not petition for a review within 60 days is precluded from contesting issues determined by the executive director in any other administrative review or court procedure.
If, prior to the contested case hearing, additional information is provided to support the claim for duty disability as defined in section 352B.011, subdivision 7, the executive director may reverse the determination without the requested hearing. If a hearing is held before the Office of Administrative Hearings, the determination rendered by the judge conducting the fact-finding hearing is a final decision and order under section 14.62, subdivision 2a, and is binding on the applicable executive director, the peace officer or firefighter, employer, and state. Review of a final determination made by the Office of Administrative Hearings under this section may only be obtained by writ of certiorari to the Minnesota Court of Appeals under sections 14.63 to 14.68. Only the peace officer or firefighter, employer, and state have standing to participate in a judicial review of the decision of the Office of Administrative Hearings.
(c) The officer's or firefighter's employer must continue to provide health coverage and pay for the coverage as required by paragraphs (d) to (g) for:
(1) the officer or firefighter; and
(2) the officer's or firefighter's dependents if the officer or firefighter was receiving dependent coverage at the time of the injury under the employer's group health plan.
(d) For an officer or
firefighter who has applied for or been approved to receive benefits under
section 353.656 prior to the date of enactment before May 24, 2025,
or an officer or firefighter who applies for and is approved for total and
permanent duty disability benefits under section 353.656, subdivision 1a, the
employer is responsible for the continued payment of the employer's
contribution for health coverage of the officer or firefighter and, if
applicable, the officer's or firefighter's dependents. Coverage must continue for the officer or
firefighter and, if applicable, the officer's or firefighter's dependents until
the officer or firefighter reaches age 65 or, if deceased, would have reached
age 65.
(1) for the officer or firefighter for a period of 60 months or, if earlier, until the officer or firefighter reaches age 65; and
(2) for the officer's or firefighter's dependents for a period of 60 months.
(f) For an officer or firefighter who has applied for or been approved to receive benefits under section 352B.10, subdivision 1, the employer is responsible for the continued payment of the employer's contribution for health coverage of the officer or firefighter and, if applicable, the officer's or firefighter's dependents. Coverage must continue for the officer or firefighter and, if applicable, the officer's or firefighter's dependents until the officer or firefighter reaches age 65 or, if deceased, would have reached age 65.
(g) The employer is not required to continue health coverage for dependents after the person is no longer a dependent.
(h) An officer or firefighter
who has applied for or been approved to receive benefits under section 353.656
may affirmatively waive health coverage under this section but must not receive
any payment or other consideration from the employer in exchange for waiver of
the coverage. Any agreement entered into
between an officer or firefighter who has applied for or been approved to
receive benefits under section 353.656 and the officer's or firefighter's
employer or the employer's agent providing for compensation for a waiver of
coverage under this section is void. Nothing
in this subdivision shall be construed to render void any agreement entered
into prior to the date of enactment before May 24, 2025.
(i) Once a duty disability determination is made pursuant to section 353.656, the employer has no right to challenge and is prohibited from challenging the continuation and payment of health coverage under this section.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 2. Minnesota Statutes 2024, section 354A.29, subdivision 7, is amended to read:
Subd. 7. Postretirement adjustments. (a) Except as set forth in paragraph (c), each person who has been receiving an annuity or benefit under the articles of incorporation, the bylaws, or this chapter, whose effective date of benefit commencement occurred on or before July 1 of the calendar year immediately before the adjustment, is eligible to receive an annual postretirement adjustment, effective as of each January 1, as follows:
(1) there shall be no postretirement adjustment on January 1, 2019, and January 1, 2020; and
(2) the postretirement adjustment shall be one percent on January 1, 2021, and each January 1 thereafter.
(b) A postretirement adjustment is to be applied as a permanent increase to the regular payment of each eligible member on January 1. For any eligible member whose effective date of benefit commencement occurred after January 1 of the immediately preceding calendar year, the amount of the postretirement adjustment must be reduced by 50 percent.
(c) Each person who retires on or after July 1, 2024, is entitled to an annual postretirement adjustment, effective as of each January 1, beginning with the year following the year in which the member attains normal retirement age.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 3. Minnesota Statutes 2025 Supplement, section 356.24, subdivision 1, is amended to read:
Subdivision 1. Restriction; exceptions. It is unlawful for a school district or other governmental subdivision or state agency to levy taxes for or to contribute public funds to a supplemental pension or deferred compensation plan that is established, maintained, and operated in addition to a primary pension program for the benefit of the governmental subdivision employees other than:
(1) to a supplemental pension plan that was established, maintained, and operated before May 6, 1971;
(2) to a plan that provides solely for group health, hospital, disability, or death benefits;
(3) to the individual retirement account plan established by chapter 354B;
(4) to a plan that provides solely for severance pay under section 465.72 to a retiring or terminating employee;
(5) to a deferred compensation plan defined in subdivision 3;
(6) for personnel employed by the Board of Trustees of the Minnesota State Colleges and Universities and not covered by clause (5), to the supplemental retirement plan under chapter 354C, if the supplemental plan coverage is provided for in a personnel policy or in the collective bargaining agreement of the public employer with the exclusive representative of the covered employees in an appropriate unit, in an amount matching employee contributions on a dollar for dollar basis, but not to exceed an employer contribution of $4,300 a year for each employee;
(7) to a supplemental plan or
to a governmental trust to save for postretirement health care expenses
qualified for tax-preferred treatment under the Internal Revenue Code, if the
supplemental plan coverage is provided for in a personnel policy or in the,
collective bargaining agreement, participation plan, or resolution of the
governing body of a public employer with the exclusive representative of
the covered employees in an appropriate unit;
(8) to the laborers national industrial pension fund or to a laborers local pension fund for the employees of a governmental subdivision who are covered by a collective bargaining agreement that provides for coverage by that fund and that sets forth a fund contribution rate, but not to exceed an employer contribution of $10,000 per year per employee;
(9) to the plumbers and pipefitters national pension fund or to a plumbers and pipefitters local pension fund for the employees of a governmental subdivision who are covered by a collective bargaining agreement that provides for coverage by that fund and that sets forth a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per employee;
(10) to the international union of operating engineers pension fund for the employees of a governmental subdivision who are covered by a collective bargaining agreement that provides for coverage by that fund and that sets forth a fund contribution rate, but not to exceed an employer contribution of $10,000 per year per employee;
(12) for employees of United Hospital District, Blue Earth, to the state of Minnesota deferred compensation program, if the employee makes a contribution, in an amount that does not exceed the total percentage of covered salary under section 353.27, subdivisions 3 and 3a;
(13) to the alternative retirement plans established by the Hennepin County Medical Center under section 383B.914, subdivision 5;
(14) to the International Brotherhood of Teamsters Central States pension plan for fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission who are members of the International Brotherhood of Teamsters Local 638 by virtue of that employment; or
(15) to a supplemental plan organized and operated under the Internal Revenue Code, as amended, that is wholly and solely funded by the employee's accumulated sick leave, accumulated vacation leave, and accumulated severance pay.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 4. Minnesota Statutes 2025 Supplement, section 423A.022, subdivision 2, is amended to read:
Subd. 2. Allocation. (a) Of the total amount appropriated as supplemental state aid:
(1) 58.064 percent must be paid to the executive director of the Public Employees Retirement Association for deposit in the public employees police and fire retirement fund established by section 353.65, subdivision 1;
(2) 35.484 percent must be allocated and paid as required by paragraphs (b) and (c), respectively, to or on behalf of municipalities who qualify for supplemental state aid under paragraph (d); and
(3) 6.452 percent must be paid to the executive director of the Minnesota State Retirement System for deposit in the state patrol retirement fund.
(b) Supplemental state aid under paragraph (a), clause (2), must be allocated to each municipality that qualifies for supplemental state aid under paragraph (d) in the same proportion that the most recent amount of fire state aid paid under section 477B.04 for the municipality bears to the most recent total fire state aid paid under section 477B.04 for all municipalities other than municipalities solely employing firefighters with retirement coverage by one or more pension plans under chapter 353.
(c) Supplemental state aid under paragraph (a), clause (2), must be paid:
(1) to the executive
director of the Public Employees Retirement Association for each municipality
with a fire department that participates in the statewide volunteer firefighter
plan for deposit in the fund established by section 352G.02 353G.02,
subdivision 3, and credited to the fire department's account; and
(2) with the balance to the treasurer of each municipality for transmittal within 30 days of receipt to the treasurer of the applicable firefighters relief association for deposit in its special fund.
(1) does not solely employ firefighters with retirement coverage provided by one or more pension plans established under chapter 353; and
(2) qualified to receive fire state aid in that calendar year.
(e) For purposes of this section, the term "municipalities" includes independent nonprofit firefighting corporations that participate in the statewide volunteer firefighter plan under chapter 353G or with subsidiary firefighter relief associations operating under chapter 424A.
EFFECTIVE DATE. This section is effective the day following final enactment."
Delete the title and insert:
"A bill for an act relating to retirement; Minnesota State Retirement System; making administrative and technical changes; Public Employees Retirement Association local government correctional service retirement plan; reducing the employee and employer contribution rates and increasing postretirement adjustments; public employees police and fire retirement plan; reducing the waiting period for post-retirement adjustments; providing direct state aid; Teachers Retirement Association; making administrative changes; St. Paul Teachers Retirement Fund Association; decreasing employee contributions; providing direct state aid; modifying the termination process for firefighter relief associations; implementing recommendations of the state auditor's fire relief association working group; special legislation for the Maple Plain fire department termination of participation in the statewide volunteer firefighter plan; modifying the definition of salary to exclude pay for Minnesota paid leave; requiring the employer of a reemployed annuitant to make employer contributions to the pension plan that covers the annuitant; authorizing elected officials to participate in the health care savings plan; Minnesota Secure Choice Retirement Program; making administrative changes; revising enrollment, notice, annual reporting, and board of director requirements; State Board of Investment; modifying expense apportionment among funds managed by the State Board of Investment; establishing work groups on relief associations and duty disability; establishing the Probation and Telecommunicator Retirement subplan administered by the Minnesota State Retirement System; establishing the Local Government Probation and Telecommunicator Retirement Plan administered by the Public Employees Retirement Association; transfers from the general fund to the new probation and telecommunicator to fund a temporary reduction in employee contribution rates; special legislation for an individual's periods of omitted service; special legislation for an individual with a missing higher education individual retirement account; making technical changes; amending Minnesota Statutes 2024, sections 6.496; 11A.07, subdivision 5; 11A.17, subdivision 1; 43A.346, subdivisions 8, 10; 144F.01, subdivision 2; 187.03, by adding subdivisions; 187.05, subdivisions 1, 7, by adding a subdivision; 187.06, subdivision 3; 187.07, by adding a subdivision; 187.08, subdivisions 1, 2, 6, 8; 299K.03, subdivision 3; 299N.02, subdivision 1; 352.01, subdivision 13; 352.021, subdivision 2; 352.029, subdivisions 1, 2, 2a; 352.115, subdivisions 7a, 8, 9, 10; 352.1155, subdivision 3; 352.75, subdivision 2; 352.87, subdivisions 1, 2; 352.951; 352.98, subdivisions 1, 3; 353.01, subdivisions 10, 16, 37; 353.0141, subdivision 1; 353.031, subdivisions 1, 2, 3; 353.15, subdivision 1; 353.27, subdivisions 4, 7b, 11, 12, 12a, 12b, 13, 14; 353.30, subdivision 3; 353.33, subdivisions 3, 7a, 11; 353.34, subdivisions 1, 3; 353.37, subdivision 5; 353.371, subdivisions 6, 7; 353.46, subdivision 2; 353D.03, subdivision 6; 353E.03, subdivisions 1, 2; 353G.02, subdivision 4; 353G.08, subdivision 1; 353G.18, subdivision 4; 354.05, subdivisions 35, 37, by adding a subdivision; 354.07, subdivision 2; 354.44, subdivision 5; 354.444, subdivisions 2, 3, 5; 354.445; 354.48, subdivisions 4, 6; 354A.011, subdivisions 14b, 24; 354A.021, subdivision 8; 354A.095; 354A.12, subdivisions 1, 3a, 3c; 354A.29, subdivision 7; 356.20, subdivision 2; 356.214, subdivision 1; 356.216; 356.219, subdivision 1; 356.24, subdivision 3; 356.30, subdivisions 1, 3, by adding a subdivision; 356.302, subdivisions 1, 7; 356.303, subdivision 4; 356.315, subdivision 9; 356.32, subdivision 2; 356.401, subdivision 3; 356.415, subdivisions 1g, 2, by adding a subdivision; 356.461, subdivisions 1, 2; 356.465, subdivision 3; 356.47, subdivision 3; 356.48, subdivision 1; 356.611, subdivision 6; 356.635, subdivision 2a; 356.65, subdivision 1; 356B.02; 423A.02, subdivisions 1b, 3; 424A.001, subdivisions 8, 9, 9a, 9b;
With the recommendation that when so amended the bill be placed on the General Register.
The
report was adopted.
Long and Niska from the Committee on Rules and Legislative Administration to which was referred:
H. F. No. 4598, A bill for an act relating to workers' compensation; adopting 2026 recommendations of the Workers' Compensation Advisory Council; amending Minnesota Statutes 2024, sections 79.34, subdivisions 3, 4; 79.35; 79.36; 79.362; 79.38, subdivision 1; 175A.05, by adding a subdivision; 176.011, subdivision 15; 176.081, subdivision 9; 176.101, subdivision 2a; 176.155, subdivision 1; 176.221, subdivision 1; 176.322; repealing Minnesota Statutes 2024, sections 79.34, subdivision 2a; 79.361; 79.363.
Reported the same back with the recommendation that the bill be placed on the General Register.
Joint Rule 2.03 has been waived for any subsequent committee action on this bill.
The
report was adopted.
Frazier and Torkelson from the Committee on Ways and Means to which was referred:
S. F. No. 4282, A bill for an act relating to forecast adjustments; making forecast adjustments to prekindergarten through grade 12 education programs, human services, the Department of Children, Youth, and Families, and Metro Mobility; appropriating money; amending Laws 2025, First Special Session chapter 8, article 1, section 3, subdivisions 1, 3; Laws 2025, First Special Session chapter 10, article 1, section 28, subdivisions 2, 3, 5, 8, 10, 11, 12; article 2, section 24, subdivisions 2, 14, 15, 24; article 3, section 15, subdivisions 3, 13; article 5, section 19, subdivision 2; article 6, section 6, subdivisions 2, 7; article 7, section 11, subdivisions 2, 4, 7, 8, 9; article 8, section 18, subdivisions 3, 6; article 9, section 11, subdivisions 2, 3, 4, 6, 10; article 10, section 10, subdivisions 3, 4, 6; article 11, section 2, subdivisions 2, 4.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
Subd. 2. General education aid. (a) For general education aid under Minnesota Statutes, section 126C.13, subdivision 4:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $783,251,000 for 2025 and $7,726,357,000 $7,767,390,000
for 2026.
(c) The 2027 appropriation
includes $807,134,000 $802,177,000 for 2026 and $7,958,596,000
$7,972,343,000 for 2027.
Sec. 2. Laws 2025, First Special Session chapter 10, article 1, section 28, subdivision 3, is amended to read:
Subd. 3. Abatement aid. (a) For abatement aid under Minnesota Statutes, section 127A.49:
|
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|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $140,000 for 2025 and $1,789,000 $1,122,000 for 2026.
(c) The 2027 appropriation
includes $198,000 $124,000 for 2026 and $2,142,000 $1,107,000
for 2027.
Sec. 3. Laws 2025, First Special Session chapter 10, article 1, section 28, subdivision 5, is amended to read:
Subd. 5. Career and technical aid. (a) For career and technical aid under Minnesota Statutes, section 124D.4531, subdivision 1b:
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$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $85,000 for 2025 and $366,000 $420,000 for 2026.
(c) The 2027 appropriation
includes $40,000 $46,000 for 2026 and $310,000 $386,000
for 2027.
Sec. 4. Laws 2025, First Special Session chapter 10, article 1, section 28, subdivision 8, is amended to read:
Subd. 8. Consolidation transition aid. (a) For consolidation transition aid under Minnesota Statutes, section 123A.485:
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$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $0 for 2025 and $572,000 $0 for 2026.
(c) The 2027 appropriation
includes $64,000 $0 for 2026 and $286,000 $693,000
for 2027.
Sec. 5. Laws 2025, First Special Session chapter 10, article 1, section 28, subdivision 10, is amended to read:
Subd. 10. Enrollment options transportation. For transportation of pupils attending postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:
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|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
Subd. 11. Nonpublic pupil education aid. (a) For nonpublic pupil education aid under Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $2,355,000 for 2025 and $22,994,000 $21,833,000 for
2026.
(c) The 2027 appropriation
includes $2,554,000 $2,425,000 for 2026 and $24,606,000 $22,454,000
for 2027.
Sec. 7. Laws 2025, First Special Session chapter 10, article 1, section 28, subdivision 12, is amended to read:
Subd. 12. Nonpublic pupil transportation aid. (a) For nonpublic pupil transportation aid under Minnesota Statutes, section 123B.92, subdivision 9:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $2,609,000 for 2025 and $25,514,000 $26,376,000 for
2026.
(c) The 2027 appropriation
includes $2,834,000 $2,930,000 for 2026 and $26,525,000 $29,340,000
for 2027.
Sec. 8. Laws 2025, First Special Session chapter 10, article 2, section 24, subdivision 2, is amended to read:
Subd. 2. Achievement and integration aid. (a) For achievement and integration aid under Minnesota Statutes, section 124D.862:
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|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $8,446,000 for 2025 and $77,173,000 $76,786,000 for
2026.
(c) The 2027 appropriation
includes $8,575,000 $8,690,000 for 2026 and $76,647,000 $78,886,000
for 2027.
Sec. 9. Laws 2025, First Special Session chapter 10, article 2, section 24, subdivision 14, is amended to read:
Subd. 14. Interdistrict desegregation or integration transportation grants. For interdistrict desegregation or integration transportation grants under Minnesota Statutes, section 124D.87:
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$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
Sec. 10. Laws 2025, First Special Session chapter 10, article 2, section 24, subdivision 15, is amended to read:
Subd. 15. Literacy aid. (a) For literacy aid under Minnesota Statutes, section 124D.98:
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|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(c) The 2027 appropriation
includes $4,069,000 $4,005,000 for 2026 and $36,828,000 $36,794,000
for 2027.
Sec. 11. Laws 2025, First Special Session chapter 10, article 2, section 24, subdivision 24, is amended to read:
Subd. 24. Paraprofessional training. (a) For compensation associated with paid orientation and professional development for paraprofessionals under Minnesota Statutes, section 121A.642:
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|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $221,000 for 2025 and $4,500,000 $3,920,000 for 2026.
(c) The 2027 appropriation
includes $500,000 $435,000 for 2026 and $4,500,000 for 2027.
Sec. 12. Laws 2025, First Special Session chapter 10, article 3, section 15, subdivision 3, is amended to read:
Subd. 3. Alternative teacher compensation aid. (a) For alternative teacher compensation aid under Minnesota Statutes, section 122A.415, subdivision 4:
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$ |
. . . . . |
2026 |
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|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation includes $8,814,000 for fiscal year 2025 and $79,903,000
$79,942,000 for fiscal year 2026.
(c) The 2027 appropriation
includes $8,878,000 $8,882,000 for fiscal year 2026 and $79,064,000
$79,862,000 for fiscal year 2027.
Sec. 13. Laws 2025, First Special Session chapter 10, article 3, section 15, subdivision 13, is amended to read:
Subd. 13. Student support personnel aid. (a) For student support personnel aid under Minnesota Statutes, section 124D.901:
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|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation includes $3,655,000 for fiscal year 2025 and $41,295,000
$41,214,000 for fiscal year 2026.
(c) The 2027 appropriation
includes $4,588,000 $4,579,000 for fiscal year 2026 and $41,184,000
$41,227,000 for fiscal year 2027.
Sec. 14. Laws 2025, First Special Session chapter 10, article 5, section 19, subdivision 2, is amended to read:
Subd. 2. Charter school building lease aid. (a) For building lease aid under Minnesota Statutes, section 124E.22:
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$ |
. . . . . |
2026 |
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|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $9,391,000 for 2025 and $87,062,000 $87,698,000 for
2026.
(c) The 2027 appropriation
includes $9,673,000 $9,744,000 for 2026 and $89,462,000 $89,977,000
for 2027.
Subd. 2. American Indian education aid. (a) For American Indian education aid under Minnesota Statutes, section 124D.81, subdivision 2a:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $1,973,000 for 2025 and $18,673,000 $18,766,000 for
2026.
(c) The 2027 appropriation
includes $2,074,000 $2,085,000 for 2026 and $19,474,000 $19,508,000
for 2027.
Sec. 16. Laws 2025, First Special Session chapter 10, article 6, section 6, subdivision 7, is amended to read:
Subd. 7. Tribal contract school aid. (a) For Tribal contract school aid under Minnesota Statutes, section 124D.83:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $221,000 for 2025 and $2,092,000 $1,194,000 for 2026.
(c) The 2027 appropriation
includes $232,000 $132,000 for 2026 and $2,322,000 $1,763,000
for 2027.
Sec. 17. Laws 2025, First Special Session chapter 10, article 7, section 11, subdivision 2, is amended to read:
Subd. 2. Aid for children with disabilities. (a) For aid under Minnesota Statutes, section 125A.75, subdivision 3, for children with disabilities placed in residential facilities within district boundaries for whom no district of residence can be determined:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) If the appropriation for either year is insufficient, the appropriation for the other year is available.
Sec. 18. Laws 2025, First Special Session chapter 10, article 7, section 11, subdivision 4, is amended to read:
Subd. 4. Court-placed special education revenue. For reimbursing serving school districts for unreimbursed eligible expenditures attributable to children placed in the serving school district by court action under Minnesota Statutes, section 125A.79, subdivision 4:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$42,000 |
. . . . . |
2027 |
Sec. 19. Laws 2025, First Special Session chapter 10, article 7, section 11, subdivision 7, is amended to read:
Subd. 7. Special education; regular. (a) For special education aid under Minnesota Statutes, section 125A.76:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $322,670,000 for 2025 and $2,452,814,000 $2,522,786,000
for 2026.
Sec. 20. Laws 2025, First Special Session chapter 10, article 7, section 11, subdivision 8, is amended to read:
Subd. 8. Special education separate sites and programs. (a) For aid for special education separate sites and programs under Minnesota Statutes, section 125A.81, subdivision 4:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $427,000 for 2025 and $4,043,000 $4,115,000 for 2026.
(c) The 2027 appropriation
includes $449,000 $457,000 for 2026 and $4,246,000 $4,321,000
for 2027.
Sec. 21. Laws 2025, First Special Session chapter 10, article 7, section 11, subdivision 9, is amended to read:
Subd. 9. Travel for home-based services. (a) For aid for teacher travel for home-based services under Minnesota Statutes, section 125A.75, subdivision 1:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $44,000 for 2025 and $444,000 $395,000 for 2026.
(c) The 2027 appropriation
includes $49,000 $43,000 for 2026 and $489,000 $434,000
for 2027.
Sec. 22. Laws 2025, First Special Session chapter 10, article 8, section 18, subdivision 3, is amended to read:
Subd. 3. Debt service equalization aid. (a) For debt service equalization aid under Minnesota Statutes, section 123B.53, subdivision 6:
|
|
|
$16,218,000 |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation includes $1,986,000 for 2025 and $14,232,000 for 2026.
(c) The 2027 appropriation
includes $1,581,000 for 2026 and $12,746,000 $14,453,000 for
2027.
Sec. 23. Laws 2025, First Special Session chapter 10, article 8, section 18, subdivision 6, is amended to read:
Subd. 6. Long-term facilities maintenance equalized aid. (a) For long-term facilities maintenance equalized aid under Minnesota Statutes, section 123B.595, subdivision 9:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $10,719,000 for 2025 and $86,385,000 $86,405,000 for
2026.
(c) The 2027 appropriation
includes $9,597,000 $9,600,000 for 2026 and $88,313,000 $87,773,000
for 2027.
Subd. 2. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, section 124D.118:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
Sec. 25. Laws 2025, First Special Session chapter 10, article 9, section 11, subdivision 3, is amended to read:
Subd. 3. School breakfast. For school breakfast aid under Minnesota Statutes, section 124D.1158:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
Sec. 26. Laws 2025, First Special Session chapter 10, article 9, section 11, subdivision 4, is amended to read:
Subd. 4. School lunch. For school lunch aid under Minnesota Statutes, section 124D.111, including the amounts for the free school meals program:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
Sec. 27. Laws 2025, First Special Session chapter 10, article 9, section 11, subdivision 6, is amended to read:
Subd. 6. Basic system support. (a) For basic system support aid under Minnesota Statutes, section 134.355:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $1,752,000 for 2025 and $16,243,000 $16,202,000 for
2026.
(c) The 2027 appropriation
includes $1,804,000 $1,800,000 for 2026 and $16,568,000 $16,638,000
for 2027.
Sec. 28. Laws 2025, First Special Session chapter 10, article 9, section 11, subdivision 10, is amended to read:
Subd. 10. School library aid. (a) For school library aid under Minnesota Statutes, section 124D.992:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $2,376,000 for 2025 and $12,018,000 $12,037,000 for
2026.
(c) The 2027 appropriation
includes $1,336,000 $1,337,000 for 2026 and $11,985,000 $11,970,000
for 2027.
Subd. 3. Developmental screening aid. (a) For transfer to the Department of Education for developmental screening aid under Minnesota Statutes, sections 142D.091 and 142D.093:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $414,000 for 2025 and $3,713,000 $3,689,000 for 2026.
(c) The 2027 appropriation
includes $412,000 $410,000 for 2026 and $3,671,000 $3,646,000
for 2027.
Sec. 30. Laws 2025, First Special Session chapter 10, article 10, section 10, subdivision 4, is amended to read:
Subd. 4. Early childhood family education aid. (a) For transfer to the Department of Education for early childhood family education aid under Minnesota Statutes, section 142D.11:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $3,792,000 for 2025 and $35,573,000 $35,347,000 for
2026.
(c) The 2027 appropriation
includes $3,952,000 $3,926,000 for 2026 and $37,348,000 $35,784,000
for 2027.
Sec. 31. Laws 2025, First Special Session chapter 10, article 10, section 10, subdivision 6, is amended to read:
Subd. 6. Home visiting aid. (a) For transfer to the Department of Education for home visiting aid under Minnesota Statutes, section 142D.11:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $28,000 for 2025 and $217,000 $206,000 for 2026.
(c) The 2027 appropriation
includes $24,000 $23,000 for 2026 and $198,000 $201,000
for 2027.
Sec. 32. Laws 2025, First Special Session chapter 10, article 11, section 2, subdivision 2, is amended to read:
Subd. 2. Adult basic education aid. (a) For adult basic education aid under Minnesota Statutes, section 124D.531:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $5,401,000 for 2025 and $49,880,000 $49,979,000 for
2026.
(c) The 2027 appropriation
includes $5,542,000 $5,553,000 for 2026 and $51,377,000 $51,241,000
for 2027.
Subd. 4. Community education aid. (a) For community education aid under Minnesota Statutes, section 124D.20:
|
|
|
$ |
. . . . . |
2026 |
|
|
|
$ |
. . . . . |
2027 |
(b) The 2026 appropriation
includes $871,000 for 2025 and $9,209,000 $9,055,000 for 2026.
(c) The 2027 appropriation
includes $1,023,000 $1,006,000 for 2026 and $10,792,000 $10,667,000
for 2027.
Sec. 34. EFFECTIVE
DATE.
Sections 1 to 33 are effective the day following final enactment."
Amend the title as follows:
Page 1, line 3, delete ", human services, the Department of Children,"
Page 1, line 4, delete "Youth, and Families, and Metro Mobility"
Correct the title numbers accordingly
With the recommendation that when so amended the bill be placed on the General Register.
The
report was adopted.
SECOND READING
OF HOUSE BILLS
H. F. Nos. 4074 and 4598
were read for the second time.
SECOND READING
OF SENATE BILLS
S. F. Nos. 2373, 4476 and
4282 were read for the second time.
INTRODUCTION AND FIRST READING OF
HOUSE BILLS
The
following House Files were introduced:
Greene, Virnig, Clardy and Keeler introduced:
H. F. No. 5128, A bill for an act relating to education; establishing a Minnesota Vision of a Learner; creating a working group; requiring a report; appropriating money; amending Minnesota Statutes 2024, sections 120B.02, by adding a subdivision; 120B.021, subdivision 2.
The bill was read for the first time and referred to the Committee on Education Finance.
H. F. No. 5129, A bill for an act relating to solid waste; requiring a system for collecting and recycling discarded tires to be financed and operated by tire producers; establishing an account; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 115A.
The bill was read for the first time and referred to the Committee on Environment and Natural Resources Finance and Policy.
Keeler introduced:
H. F. No. 5130, A bill for an act relating to human services; clarifying the calculation of border city nursing facility rate adjustments; amending Minnesota Statutes 2024, section 256R.481.
The bill was read for the first time and referred to the Committee on Human Services Finance and Policy.
Mahamoud and Jones introduced:
H. F. No. 5131, A bill for an act relating to animals; prohibiting animal testing under certain circumstances; providing for civil penalties; proposing coding for new law in Minnesota Statutes, chapter 343.
The bill was read for the first time and referred to the Committee on Agriculture Finance and Policy.
Kotyza-Witthuhn introduced:
H. F. No. 5132, A bill for an act relating to workforce development; appropriating money for a grant to Junior Achievement North for career readiness and financial literacy programming.
The bill was read for the first time and referred to the Committee on Workforce, Labor, and Economic Development Finance and Policy.
Kotyza-Witthuhn introduced:
H. F. No. 5133, A bill for an act relating to children and families; establishing a Supplemental Nutrition Assistance Program contingency appropriation; requiring a report; amending Minnesota Statutes 2024, section 142F.05, by adding a subdivision.
The bill was read for the first time and referred to the Committee on Children and Families Finance and Policy.
REPORT
FROM THE COMMITTEE ON RULES
AND
LEGISLATIVE ADMINISTRATION
Niska from the Committee on Rules and
Legislative Administration, pursuant to rules 1.21 and 3.33, designated the
following bills to be placed on the Calendar for the Day for Tuesday, May 12,
2026 and established a prefiling requirement for amendments offered to the
following bills:
H. F. Nos. 1597, 4017 and
4138.
Niska moved that the House recess subject
to the call of the Chair. The motion
prevailed.
RECESS
RECONVENED
The House reconvened and was called to
order by the Speaker.
There being no objection, the order of
business advanced to Motions and Resolutions.
MOTIONS AND RESOLUTIONS
SUSPENSION OF RULES
Olson moved that the rules of the House be so far suspended so that H. F. No. 4987 be recalled from the Committee on Transportation Finance and Policy, be given its second and third readings and be placed upon its final passage. The motion prevailed.
DECLARATION OF URGENCY
Pursuant to Article IV, Section 19, of the
Constitution of the state of Minnesota, Olson moved that the rule therein be
suspended and an urgency be declared and that the rules of the House be so far
suspended so that H. F. No. 4987 be given its second and third
readings and be placed upon its final passage.
The motion prevailed.
H. F. No. 4987 was read for the second
time.
H. F. No. 4987, A bill for an act relating to transportation; providing for certain local highway designations; designating a portion of Ramsey County State-Aid Highway 96 as "Master Sergeant Nicole Amor Memorial Highway"; proposing coding for new law in Minnesota Statutes, chapter 160.
The bill was read for the third time and
placed upon its final passage.
The question was taken on the passage of
the bill and the roll was called. There
were 126 yeas and 0 nays as follows:
Those who voted in the affirmative were:
Acomb
Agbaje
Allen
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bahner
Bakeberg
Baker
Bennett
Berg
Bierman
Bliss
Buck
Burkel
Carroll
Cha
Clardy
Coulter
Curran
Davids
Davis
Dotseth
Duran
Elkins
Engen
Falconer
Feist
Finke
Fischer
Fogelman
Franson
Frazier
Frederick
Freiberg
Gander
Gillman
Gomez
Gordon
Gottfried
Greene
Greenman
Hansen, R.
Hanson, J.
Harder
Heintzeman
Hicks
Hill
Hollins
Howard
Hudson
Huot
Hussein
Igo
Jacob
Johnson, P.
Jones
Jordan
Joy
Keeler
Klevorn
Knudsen
Koegel
Kotyza-Witthuhn
Koznick
Kraft
Kresha
Lawrence
Lee, F.
Lee, K.
Lee, X.
Liebling
Lillie
Long
Luger-Nikolai
Mahamoud
McDonald
Mekeland
Moller
Momanyi-Hiltsley
Mueller
Murphy
Nash
Nelson
Niska
Noor
Norris
Novotny
O'Driscoll
Olson
Pérez-Vega
Pinto
Pursell
Quam
Rarick
Rehm
Rehrauer
Repinski
Reyer
Roach
Robbins
Rymer
Schomacker
Schultz
Scott
Sencer-Mura
Sexton
Skraba
Smith
Stephenson
Stier
Swedzinski
Tabke
Torkelson
Van Binsbergen
Vang
Virnig
Warwas
West
Wiener
Witte
Wolgamott
Xiong
Youakim
Spk. Demuth
The
bill was passed and its title agreed to.
Pursuant to Rule 10.05, relating to Remote House Operations, the DFL Caucus Leader permitted the following member to vote via remote means between the hours of 12:30 p.m. and 4:40 p.m.: Kozlowski.
There being no objection, the order of
business reverted to Calendar for the Day.
CALENDAR FOR THE
DAY
The Speaker called Olson to the Chair.
S. F. No. 476 was reported
to the House.
Noor moved to amend S. F. No. 476, the unofficial engrossment, as follows:
Delete everything after the enacting clause and insert:
"ARTICLE 1
DIRECT CARE AND TREATMENT POLICY
Section 1. Minnesota Statutes 2024, section 3.7381, is amended to read:
3.7381 LOSS, DAMAGE, OR DESTRUCTION OF PROPERTY; STATE INSTITUTIONS;
CORRECTIONAL FACILITIES.
(a) The commissioners of human
services, veterans affairs, or corrections or the Direct Care and
Treatment executive board, as appropriate, shall determine, adjust, and
settle, at any time, claims and demands of $7,000 or less arising from
negligent loss, damage, or destruction of property of a patient of a state
institution under the control of the Direct Care and Treatment executive board
or the commissioner of veterans affairs or an inmate of a state correctional
facility.
(c) The procedure established by this section is exclusive of all other legal, equitable, and statutory remedies.
Sec. 2. Minnesota Statutes 2024, section 13.04, subdivision 4a, is amended to read:
Subd. 4a. Sex offender program data; challenges. Notwithstanding subdivision 4, challenges to the accuracy or completeness of data maintained by the Direct Care and Treatment sex offender program about a civilly committed sex offender as defined in section 246B.01, subdivision 1a, must be submitted in writing to the data practices compliance official of Direct Care and Treatment or a delegee. The data practices compliance official or a delegee must respond to the challenge as provided in this section.
Sec. 3. Minnesota Statutes 2024, section 13.384, subdivision 3, is amended to read:
Subd. 3. Classification of medical data. Unless the data is summary data or a statute specifically provides a different classification, medical data are private but are available only to the subject of the data as provided in sections 144.291 to 144.298, and shall not be disclosed to others except:
(a) pursuant to section
sections 13.05 and 13.46;
(b) pursuant to section 253B.0921;
(c) pursuant to a valid court order;
(d) to administer federal funds or programs;
(e) to the surviving spouse, parents, children, siblings, and health care agent of a deceased patient or client or, if there are no surviving spouse, parents, children, siblings, or health care agent to the surviving heirs of the nearest degree of kindred;
(f) to communicate a patient's or client's condition to a family member, health care agent, or other appropriate person in accordance with acceptable medical practice, unless the patient or client directs otherwise; or
(g) as otherwise required by law.
Sec. 4. Minnesota Statutes 2024, section 13.43, subdivision 5a, is amended to read:
Subd. 5a. Limitation
on disclosure of certain personnel data.
Notwithstanding any other provision of this section, the following
data relating to employees of a secure treatment facility defined in section
253B.02, subdivision 18a, or 253D.02, subdivision 13; employees of a
treatment program as defined in section 253D.02, subdivision 17; employees
of a state correctional facility,; or employees of the Department
of Corrections directly involved in supervision of offenders in the community,
shall must not be disclosed to facility patients or clients,
corrections inmates, or other individuals who facility or correction
administrators reasonably believe will use the information to harass,
intimidate, or assault any of these employees:
(1) place where previous education or training occurred;
(2) place of prior employment; and
(3)
payroll timesheets or other comparable data, to the extent that disclosure of
payroll timesheets or other comparable data may disclose future work
assignments, home address or telephone number, the location of an employee
during nonwork hours, or the location of an employee's immediate family
members.
EFFECTIVE DATE. This
section is effective the day following final enactment and applies to any data
request pending on or received after that date.
Sec. 5. Minnesota Statutes 2024, section 13.46, subdivision 1, is amended to read:
Subdivision 1. Definitions. As used in this section:
(a) "Individual" means an individual according to section 13.02, subdivision 8, but does not include a vendor of services.
(b) "Program" includes all programs for which authority is vested in a component of the welfare system according to statute or federal law, including but not limited to Native American Tribe programs that provide a service component of the welfare system, the Minnesota family investment program, medical assistance, general assistance, general assistance medical care formerly codified in chapter 256D, the child care assistance program, and child support collections.
(c) "Welfare system" includes the Department of Human Services; Direct Care and Treatment; the Department of Children, Youth, and Families; local social services agencies; county welfare agencies; county public health agencies; county veteran services agencies; county housing agencies; private licensing agencies; the public authority responsible for child support enforcement; human services boards; community mental health center boards, state hospitals, state nursing homes, the ombudsman for mental health and developmental disabilities; Native American Tribes to the extent a Tribe provides a service component of the welfare system; and persons, agencies, institutions, organizations, and other entities under contract to any of the above agencies to the extent specified in the contract.
(d) "Mental health
data" means data on individual clients and patients of community mental
health centers, established under section 245.62, mental health divisions of
counties and other providers under contract to deliver mental health services, Direct
Care and Treatment mental health services, or the ombudsman for mental
health and developmental disabilities.
(e) "Fugitive felon" means a person who has been convicted of a felony and who has escaped from confinement or violated the terms of probation or parole for that offense.
(f) "Private licensing agency" means an agency licensed by the commissioner of children, youth, and families under chapter 142B to perform the duties under section 142B.30.
Sec. 6. Minnesota Statutes 2025 Supplement, section 13.46, subdivision 2, is amended to read:
Subd. 2. General. (a) Data on individuals collected, maintained, used, or disseminated by the welfare system are private data on individuals, and shall not be disclosed except:
(1) according to section 13.05;
(2) according to court order;
(3) according to a statute specifically authorizing access to the private data;
(5) to personnel of the welfare system who require the data to verify an individual's identity; determine eligibility, amount of assistance, and the need to provide services to an individual or family across programs; coordinate services for an individual or family; evaluate the effectiveness of programs; assess parental contribution amounts; and investigate suspected fraud;
(6) to administer federal funds or programs;
(7) between personnel of the welfare system working in the same program;
(8) to the Department of Revenue to administer and evaluate tax refund or tax credit programs and to identify individuals who may benefit from these programs, and prepare the databases for reports required under section 270C.13 and Laws 2008, chapter 366, article 17, section 6. The following information may be disclosed under this paragraph: an individual's and their dependent's names, dates of birth, Social Security or individual taxpayer identification numbers, income, addresses, and other data as required, upon request by the Department of Revenue. Disclosures by the commissioner of revenue to the commissioner of human services for the purposes described in this clause are governed by section 270B.14, subdivision 1. Tax refund or tax credit programs include, but are not limited to, the dependent care credit under section 290.067, the Minnesota working family credit under section 290.0671, the property tax refund under section 290A.04, and the Minnesota education credit under section 290.0674;
(9) between the Department of Human Services; the Department of Employment and Economic Development; the Department of Children, Youth, and Families; Direct Care and Treatment; and, when applicable, the Department of Education, for the following purposes:
(i) to monitor the eligibility of the data subject for unemployment benefits, for any employment or training program administered, supervised, or certified by that agency;
(ii) to administer any rehabilitation program or child care assistance program, whether alone or in conjunction with the welfare system;
(iii) to monitor and evaluate the Minnesota family investment program or the child care assistance program by exchanging data on recipients and former recipients of Supplemental Nutrition Assistance Program (SNAP) benefits, cash assistance under chapter 142F, 256D, 256J, or 256K, child care assistance under chapter 142E, medical programs under chapter 256B or 256L; and
(iv) to analyze public assistance employment services and program utilization, cost, effectiveness, and outcomes as implemented under the authority established in Title II, Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of 1999. Health records governed by sections 144.291 to 144.298 and "protected health information" as defined in Code of Federal Regulations, title 45, section 160.103, and governed by Code of Federal Regulations, title 45, parts 160-164, including health care claims utilization information, must not be exchanged under this clause;
(10) to appropriate parties in connection with an emergency if knowledge of the information is necessary to protect the health or safety of the individual or other individuals or persons;
(12) to the county medical examiner or the county coroner for identifying or locating relatives or friends of a deceased person;
(13) data on a child support obligor who makes payments to the public agency may be disclosed to the Minnesota Office of Higher Education to the extent necessary to determine eligibility under section 136A.121, subdivision 2, clause (5);
(14) participant Social Security or individual taxpayer identification numbers and names collected by the telephone assistance program may be disclosed to the Department of Revenue to conduct an electronic data match with the property tax refund database to determine eligibility under section 237.70, subdivision 4a;
(15) the current address of a Minnesota family investment program participant may be disclosed to law enforcement officers who provide the name of the participant and notify the agency that:
(i) the participant:
(A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after conviction, for a crime or attempt to commit a crime that is a felony under the laws of the jurisdiction from which the individual is fleeing; or
(B) is violating a condition of probation or parole imposed under state or federal law;
(ii) the location or apprehension of the felon is within the law enforcement officer's official duties; and
(iii) the request is made in writing and in the proper exercise of those duties;
(16) the current address of a recipient of general assistance may be disclosed to probation officers and corrections agents who are supervising the recipient and to law enforcement officers who are investigating the recipient in connection with a felony level offense;
(17) information obtained from a SNAP applicant or recipient households may be disclosed to local, state, or federal law enforcement officials, upon their written request, for the purpose of investigating an alleged violation of the Food and Nutrition Act, according to Code of Federal Regulations, title 7, section 272.1(c);
(18) the address, Social Security or individual taxpayer identification number, and, if available, photograph of any member of a household receiving SNAP benefits shall be made available, on request, to a local, state, or federal law enforcement officer if the officer furnishes the agency with the name of the member and notifies the agency that:
(i) the member:
(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;
(B) is violating a condition of probation or parole imposed under state or federal law; or
(ii) locating or apprehending the member is within the officer's official duties; and
(iii) the request is made in writing and in the proper exercise of the officer's official duty;
(19) the current address of a recipient of Minnesota family investment program, general assistance, or SNAP benefits may be disclosed to law enforcement officers who, in writing, provide the name of the recipient and notify the agency that the recipient is a person required to register under section 243.166, but is not residing at the address at which the recipient is registered under section 243.166;
(20) certain information regarding child support obligors who are in arrears may be made public according to section 518A.74;
(21) data on child support payments made by a child support obligor and data on the distribution of those payments excluding identifying information on obligees may be disclosed to all obligees to whom the obligor owes support, and data on the enforcement actions undertaken by the public authority, the status of those actions, and data on the income of the obligor or obligee may be disclosed to the other party;
(22) data in the work reporting system may be disclosed under section 142A.29, subdivision 7;
(23) to the Department of Education for the purpose of matching Department of Education student data with public assistance data to determine students eligible for free and reduced-price meals, meal supplements, and free milk according to United States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and state funds that are distributed based on income of the student's family; and to verify receipt of energy assistance for the telephone assistance plan;
(24) the current address and telephone number of program recipients and emergency contacts may be released to the commissioner of health or a community health board as defined in section 145A.02, subdivision 5, when the commissioner or community health board has reason to believe that a program recipient is a disease case, carrier, suspect case, or at risk of illness, and the data are necessary to locate the person;
(25) to other state agencies, statewide systems, and political subdivisions of this state, including the attorney general, and agencies of other states, interstate information networks, federal agencies, and other entities as required by federal regulation or law for the administration of the child support enforcement program;
(26) to personnel of public assistance programs as defined in section 518A.81, for access to the child support system database for the purpose of administration, including monitoring and evaluation of those public assistance programs;
(27) to monitor and evaluate the Minnesota family investment program by exchanging data between the Departments of Human Services; Children, Youth, and Families; and Education, on recipients and former recipients of SNAP benefits, cash assistance under chapter 142F, 256D, 256J, or 256K, child care assistance under chapter 142E, medical programs under chapter 256B or 256L, or a medical program formerly codified under chapter 256D;
(28) to evaluate child support program performance and to identify and prevent fraud in the child support program by exchanging data between the Department of Human Services; Department of Children, Youth, and Families; Department of Revenue under section 270B.14, subdivision 1, paragraphs (a) and (b), without regard to the limitation of use in paragraph (c); Department of Health; Department of Employment and Economic Development; and other state agencies as is reasonably necessary to perform these functions;
(30) child support data on the child, the parents, and relatives of the child may be disclosed to agencies administering programs under titles IV-B and IV-E of the Social Security Act, as authorized by federal law;
(31) to a health care provider governed by sections 144.291 to 144.298, to the extent necessary to coordinate services;
(32) to the chief administrative officer of a school to coordinate services for a student and family; data that may be disclosed under this clause are limited to name, date of birth, gender, and address;
(33) to county correctional agencies to the extent necessary to coordinate services and diversion programs; data that may be disclosed under this clause are limited to name, client demographics, program, case status, and county worker information; or
(34) between the Department of Human Services and the Metropolitan Council for the following purposes:
(i) to coordinate special transportation service provided under section 473.386 with services for people with disabilities and elderly individuals funded by or through the Department of Human Services; and
(ii) to provide for reimbursement of special transportation service provided under section 473.386.
The data that may be shared under this clause are limited to the individual's first, last, and middle names; date of birth; residential address; and program eligibility status with expiration date for the purposes of informing the other party of program eligibility.
(b) Information on persons who have been treated for substance use disorder may only be disclosed according to the requirements of Code of Federal Regulations, title 42, sections 2.1 to 2.67.
(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16), (17), or (18), or paragraph (b), are investigative data and are confidential or protected nonpublic while the investigation is active. The data are private after the investigation becomes inactive under section 13.82, subdivision 7, clause (a) or (b).
(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are not subject to the access provisions of subdivision 10, paragraph (b).
(e) For the purposes
of this subdivision, a request will be is deemed to be made in
writing if made through a computer interface system.
(f) Direct Care and
Treatment may disclose data as provided in subdivision 14.
Sec. 7. Minnesota Statutes 2024, section 13.46, is amended by adding a subdivision to read:
Subd. 14. Direct
Care and Treatment. (a)
Notwithstanding sections 144.291 to 144.298, Direct Care and Treatment may
disclose data pursuant to subdivision 2 and as otherwise permitted by law.
(b)
Direct Care and Treatment may disclose welfare system data held by the agency
to facilitate guardianship proceedings for Direct Care and Treatment clients,
and for reporting complaints to the Minnesota Judicial Branch or the Office of
Ombudsman for Mental Health and Developmental Disabilities. Direct Care and Treatment must obtain the
client's consent for a disclosure made pursuant to this paragraph except when
the client:
(1) lacks capacity to
provide the consent; or
(2) has a current legal
guardian who is unavailable, is nonresponsive, or refuses to authorize the
disclosure in relation to complaints to the Minnesota Judicial Branch or Office
of Ombudsman for Mental Health and Developmental Disabilities.
Sec. 8. Minnesota Statutes 2024, section 182.6545, is amended to read:
182.6545 RIGHTS OF NEXT OF KIN UPON DEATH.
In the case of a death of an employee, the department shall make reasonable efforts to locate the employee's next of kin and shall mail to them copies of the following:
(1) citations and notification of penalty;
(2) notices of hearings;
(3) complaints and answers;
(4) settlement agreements;
(5) orders and decisions; and
(6) notices of appeals.
In addition, the next of
kin shall have the right to request a consultation with the department
regarding citations and notification of penalties issued as a result of the
investigation of the employee's death. For
the purposes of this section, "next of kin" refers to the nearest
proper relative as that term is defined by section 253B.03, subdivision 6,
paragraph (b) (a), clause (3).
Sec. 9. [246C.051]
CLASSIFICATION ALIGNMENT FOR DIRECT CARE AND TREATMENT EMPLOYEES.
(a) Notwithstanding
section 43A.08; Minnesota Rules, part 3900.1300; or any other law to the
contrary, Direct Care and Treatment may, with approval from Minnesota
Management and Budget, convert employees deemed unclassified pursuant to pilot
authority of the Department of Human Services under Laws 1997, chapter 97,
section 18, into the classified service.
(b) Employees converted
to the classified service pursuant to this section are subject to the terms and
conditions of employment applicable to positions in the classified service
pursuant to statute, rule, bargaining unit or compensation plan, and agency
policy, including but not limited to required probationary periods and
mandatory training requirements.
(c) Employees converted
to the classified service pursuant to this section must not receive a reduction
in salary at the time of the conversion.
Subd. 2. Correspondence. A patient has the right to correspond freely without censorship, subject to section 253B.25. The head of the treatment facility or head of the state-operated treatment program may restrict correspondence if the patient's medical welfare requires this restriction. For a patient in a state-operated treatment program, that determination may be reviewed by the executive board. Any limitation imposed on the exercise of a patient's correspondence rights and the reason for it shall be made a part of the clinical record of the patient. Any communication which is not delivered to a patient shall be immediately returned to the sender.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 11. Minnesota Statutes 2024, section 253B.03, subdivision 3, is amended to read:
Subd. 3. Visitors and phone calls. Subject to the general rules of the treatment facility or state-operated treatment program and section 253B.25, a patient has the right to receive visitors and make phone calls. The head of the treatment facility or head of the state-operated treatment program may restrict visits and phone calls on determining that the medical welfare of the patient requires it. Any limitation imposed on the exercise of the patient's visitation and phone call rights and the reason for it shall be made a part of the clinical record of the patient.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 12. Minnesota Statutes 2024, section 253B.03, subdivision 6, is amended to read:
Subd. 6. Consent
for medical procedure. (a) For
purposes of this subdivision, the following terms have the meanings given:
(1) notwithstanding
section 253B.02, subdivision 10, "interested person" has the meaning
given under section 524.5-102, subdivision 7;
(2) notwithstanding
section 253B.02, subdivision 15, "patient" includes a person
committed under chapter 253D who is in a state-operated treatment program; and
(3) "proper
relative" means, in the following order, the patient's spouse, parent,
adult child, or adult sibling.
(b) A patient has
the right to give prior consent to any medical or surgical treatment,
including but not limited to surgery, other than treatment for chemical
dependency or nonintrusive treatment for mental illness.
(b) (c) The
following procedures shall be used to obtain consent for any treatment
necessary to preserve the life or health of any committed patient:
(1) the written, informed consent of a competent adult patient for the treatment is sufficient;
(2) if the patient is subject to guardianship which includes the provision of medical care, the written, informed consent of the guardian for the treatment is sufficient;
(3) for a patient in a
treatment facility, if the head of the treatment facility or
state-operated treatment program determines that the patient is not
competent to consent to the treatment and the patient has not been adjudicated
incompetent, written, informed consent for the surgery or medical
treatment shall be obtained from the person appointed the health care power of
attorney, the patient's agent under the health care directive, or the nearest
proper relative. For this purpose,
the following persons are proper relatives, in the order listed: the patient's spouse, parent, adult child, or
adult sibling. If the nearest proper
relatives relative cannot be located, refuse refuses
to consent to the
(4) for patients in a
state-operated treatment program, if (i) the patient does not have a health
care power of attorney or an agent under a health care directive or the
patient's health care agent is not reasonably available to make the necessary
health care decision for the patient, and (ii) the patient's treating physician
determines that the patient lacks decision-making capacity to consent to the
medical treatment, the state-operated treatment program must make a good faith
attempt to locate the patient's nearest proper relative to obtain written
informed consent for the medical treatment;
(5) if the
state-operated treatment program is unable to reasonably locate a proper
relative, the executive medical director has decision-making authority for the
health care decision for the patient subject to the provisions under
subdivision 6e;
(6) if the
state-operated treatment program consults with the patient's nearest proper
relative under clause (4) and the patient's nearest proper relative and the
patient's treating physician are not in agreement with respect to a medical
treatment decision, the state-operated treatment program or an interested
person may petition the committing court for approval of the treatment. The state-operated treatment program may also
petition a court of competent jurisdiction for the appointment of a guardian at
any time. If a court determines that a
patient is not competent, the determination and the reasons for the
determination must be documented in the patient's clinical record;
(4) (7) consent
to treatment of any minor patient shall be secured in accordance with sections
144.341 to 144.346. A minor 16 years of
age or older may consent to hospitalization, routine diagnostic evaluation, and
emergency or short-term acute care; and
(5) (8) in
the case of an emergency when the persons ordinarily qualified to give consent
cannot be located in sufficient time to address the emergency need, the head of
the treatment facility or state-operated treatment program may give consent.
(c) (d) No
person who consents to treatment pursuant to the provisions of this subdivision
shall be civilly or criminally liable for the performance or the manner of
performing the treatment. No person
shall be liable for performing treatment without consent if written, informed
consent was given pursuant to this subdivision.
This provision shall not affect any other liability which may result
from the manner in which the treatment is performed.
Sec. 13. Minnesota Statutes 2024, section 253B.03, is amended by adding a subdivision to read:
Subd. 6e. Health
care decisions made by executive medical director. (a) For purposes of this subdivision,
the following terms have the meanings given:
(1) notwithstanding
section 253B.02, subdivision 10, "interested person" has the meaning
given under section 524.5-102, subdivision 7; and
(2) notwithstanding
section 253B.02, subdivision 15, "patient" includes a person
committed under chapter 253D who is in a state-operated treatment program.
(b) Any health care
decision made by the executive medical director under subdivision 6, paragraph
(c), clause (5), must be consistent with any documented patient health care
directive and with reasonable medical practice and applicable law.
(c)
Before proceeding with treatment under subdivision 6, paragraph (c), clause
(5), a state-operated treatment program must inform the patient of the
determination by the patient's treating physician that the patient lacks
decision-making capacity to consent to the medical treatment, the proposed
treatment, and the right to request review.
Upon the request of the patient or an interested person a second
physician not directly involved in the patient's current treatment must review
the incapacity determination. The
executive medical director must review the proposed treatment decision and the
second physician's review of the incapacity determination and make an updated
determination. A state-operated
treatment program may proceed with treatment of the patient while a review
under this paragraph is pending.
(d) When a determination
is made under paragraph (c), the state-operated treatment program must document
the following information in the patient's clinical record:
(1) the determination of
incapacity and the clinical basis for the determination;
(2) the specific
treatment authorized;
(3) the person who
provided consent or who made the determination allowing the treatment;
(4) the efforts made to
locate and consult with a health care agent or nearest proper relative; and
(5) the patient's
expressed preferences regarding the treatment, if known, and how the
preferences were considered.
(e) The executive
medical director must review a determination that a patient lacks capacity
periodically as medically appropriate, but not less than every six months. The outcome of a review under this paragraph
must be documented in the patient's clinical record.
(f) If a patient or
interested person is dissatisfied with the outcome of the review under
paragraph (c), the patient or interested person may petition the committing
court under section 253B.17 for review of the incapacity determination made
under paragraph (c). Filing a petition
under section 253B.17 does not stay treatment under this subdivision unless
otherwise ordered by the court. In
reviewing the executive medical director's decision under paragraph (c) and
issuing a determination, the court must determine if the patient lacks capacity. If the patient lacks capacity, the court must
determine if the patient clearly stated what the patient would choose to do in
the situation when the patient had the capacity to make a reasoned decision. Evidence of the patient's wishes may include
written instruments, including a durable power of attorney for health care
under chapter 145C or a declaration under section 253B.03, subdivision 6d. If the court finds that the patient clearly
stated what the patient would choose to do in the situation, the patient's
wishes must be followed. If the court
determines that the evidence of the patient's wishes regarding the situation
are conflicting or lacking, the court must make a decision based on what a
reasonable person would do, taking into consideration:
(1) the patient's
family, community, moral, religious, and social values;
(2) the medical risks,
benefits, and alternatives to the proposed treatment;
(3) past efficacy and any extenuating circumstances of past experience with the particular medical treatment; and
(4) any other relevant
factors.
Subd. 6. Transfer. (a) A patient who is a person who has a mental illness and is dangerous to the public shall not be transferred out of a secure treatment facility unless it appears to the satisfaction of the executive board, after a hearing and favorable recommendation by a majority of the special review board, that the transfer is appropriate. Transfer may be to another state-operated treatment program. In those instances where a commitment also exists to the Department of Corrections, transfer may be to a facility designated by the commissioner of corrections.
(b) The following factors must be considered in determining whether a transfer is appropriate:
(1) the person's clinical progress and present treatment needs;
(2) the need for security to accomplish continuing treatment;
(3) the need for continued institutionalization;
(4) which facility can best meet the person's needs; and
(5) whether transfer can be accomplished with a reasonable degree of safety for the public.
(c) If a committed person
has been transferred out of a secure treatment facility pursuant to this
subdivision, that committed person may voluntarily return to a secure treatment
facility for a period of up to 60 days with the consent of the head of
the treatment facility. for a
period of up to:
(1) 90 days if due to a
psychiatric medical condition; or
(2) six months if due to
a nonpsychiatric medical condition.
(d) If the committed person
is not returned to the original, nonsecure transfer facility within 60 90
days of being readmitted to a secure treatment facility if due to a
psychiatric medical condition or within six months of being readmitted to a
secure treatment facility if due to a nonpsychiatric medical condition, the
transfer is revoked and the committed person must remain in a secure treatment
facility. The committed person must
immediately be notified in writing of the revocation.
(e) Within 15 days of receiving notice of the revocation, the committed person may petition the special review board for a review of the revocation. The special review board shall review the circumstances of the revocation and shall recommend to the executive board whether or not the revocation should be upheld. The special review board may also recommend a new transfer at the time of the revocation hearing.
(f) No action by the special review board is required if the transfer has not been revoked and the committed person is returned to the original, nonsecure transfer facility with no substantive change to the conditions of the transfer ordered under this subdivision.
(g) The head of the treatment facility may revoke a transfer made under this subdivision and require a committed person to return to a secure treatment facility if:
(1) remaining in a nonsecure setting does not provide a reasonable degree of safety to the committed person or others; or
(2) the committed person has regressed clinically and the facility to which the committed person was transferred does not meet the committed person's needs.
(i) The committed person must be provided a copy of the revocation report and informed, orally and in writing, of the rights of a committed person under this section. The revocation report must be served upon the committed person, the committed person's counsel, and the designated agency. The report must outline the specific reasons for the revocation, including but not limited to the specific facts upon which the revocation is based.
(j) If a committed person's transfer is revoked, the committed person may re-petition for transfer according to subdivision 5.
(k) A committed person aggrieved by a transfer revocation decision may petition the special review board within seven business days after receipt of the revocation report for a review of the revocation. The matter must be scheduled within 30 days. The special review board shall review the circumstances leading to the revocation and, after considering the factors in paragraph (b), shall recommend to the executive board whether or not the revocation shall be upheld. The special review board may also recommend a new transfer out of a secure treatment facility at the time of the revocation hearing.
EFFECTIVE DATE. This
section is effective July 1, 2026.
Sec. 15. Minnesota Statutes 2024, section 253B.18, subdivision 14, is amended to read:
Subd. 14. Voluntary
readmission. (a) With the consent of
the head of the treatment facility or state-operated treatment program, a
patient may voluntarily return from provisional discharge with the consent
of the designated agency for a period of up to:
(1) 30 days, or;
(2) up to 60
90 days with the consent of the designated agency. if due to a psychiatric medical condition;
or
(3) six months if due to
a nonpsychiatric medical condition.
(b) If the patient
is not returned to provisional discharge status within 60 90 days
of being readmitted if due to a psychiatric medical condition or within six
months of being readmitted if due to a nonpsychiatric medical condition,
the provisional discharge is revoked. Within
15 days of receiving notice of the change in status, the patient may request a
review of the matter before the special review board. The special review board may recommend a
return to a provisional discharge status.
(b) (c) The
treatment facility or state-operated treatment program is not required to
petition for a further review by the special review board unless the patient's
return to the community results in substantive change to the existing
provisional discharge plan. All the
terms and conditions of the provisional discharge order shall remain unchanged
if the patient is released again.
EFFECTIVE DATE. This
section is effective July 1, 2026.
The head of a treatment
facility or state-operated treatment program may restrict patient access to
correspondence and telephone calls that the head of the facility reasonably
believes will be used to harass, intimidate, or assault employees of the treatment
facility or state-operated treatment program.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 17. Minnesota Statutes 2024, section 253D.19, subdivision 1, is amended to read:
Subdivision 1. Limited
rights. The executive board may
limit the statutory rights described in subdivision 2 for persons committed to
the Minnesota Sex Offender Program under this chapter or with the executive
board's consent under section 246C.13. The
statutory rights described in subdivision 2 may be limited only as necessary to
maintain a therapeutic environment or the security of the facility or to
protect the safety and well-being of committed persons, staff, and the public. Protection of staff from harassment,
intimidation, or assault is a basis for limiting the statutory rights described
in subdivision 2.
EFFECTIVE DATE. This
section is effective the day following final enactment.
ARTICLE 2
DIRECT CARE AND TREATMENT
Section 1. Minnesota Statutes 2024, section 15.43, subdivision 3, is amended to read:
Subd. 3. Other
exemptions. The commissioners
commissioner of human services and corrections and Direct Care
and Treatment executive board may by rule prescribe procedures for the
acceptance of gifts from any person or organization, provided that such gifts
are accepted by the commissioner or executive board, or a designated
representative of the commissioner or executive board, and that such
gifts are used solely for the direct benefit of patients, clients, or
inmates under the jurisdiction of the accepting state officer.
Sec. 2. Minnesota Statutes 2025 Supplement, section 144.121, subdivision 1a, is amended to read:
Subd. 1a. Fees for ionizing radiation-producing equipment. (a) A facility with ionizing radiation-producing equipment and other sources of ionizing radiation must pay an initial or annual renewal registration fee consisting of a base facility fee of $155 and an additional fee for each x-ray tube, as follows:
|
(1) |
medical or veterinary equipment |
|
$130 |
|
|
(2) |
dental x-ray equipment |
|
$60 |
|
|
(3) |
x-ray equipment not used on humans or animals |
|
$130 |
|
|
(4) |
devices with sources of ionizing radiation not used on humans or animals |
|
$130 |
|
|
(5) |
security screening system |
|
$160 |
|
|
(6) |
radiation therapy and accelerator x-ray equipment |
|
$1,000 |
|
|
(7) |
industrial accelerator x-ray equipment |
|
$300 |
|
(b) Electron microscopy equipment is exempt from the registration fee requirements of this section.
(c) For purposes of this section, a security screening system means ionizing radiation-producing equipment designed and used for security screening of humans who are in the custody of a correctional or detention facility or who are civilly committed in a secure treatment facility, and used by the facility to image and identify contraband items concealed within or on all sides of a human body.
(d)
For purposes of this section, a correctional or detention facility is a
facility licensed under section 241.021 and operated by a state agency or
political subdivision charged with detection, enforcement, or incarceration in
respect to state criminal and traffic laws.
(e) For purposes of this
section, a secure treatment facility includes the facilities listed in sections
253B.02, subdivision 18a, and 253D.02, subdivision 13.
(f) The commissioner shall adopt rules to establish requirements for the use of security screening systems. Notwithstanding section 14.125, the authority to adopt these rules does not expire.
Sec. 3. Minnesota Statutes 2024, section 144.121, subdivision 9, is amended to read:
Subd. 9. Exemption
from examination requirements; operators of security screening systems. (a) An employee of a correctional or,
detention, or secure treatment facility who operates a security
screening system and the facility in which the system is being operated are
exempt from the requirements of subdivisions 5 and 6.
(b) An employee of a correctional or detention facility who operates a security screening system and the facility in which the system is being operated must meet the requirements of a variance to Minnesota Rules, parts 4732.0305 and 4732.0565, issued under Minnesota Rules, parts 4717.7000 to 4717.7050. This paragraph expires on December 31 of the year that the permanent rules adopted by the commissioner governing security screening systems are published in the State Register.
(c) An employee of a
secure treatment facility who operates a security screening system and the
facility in which the system is being operated must meet the requirements of a
variance to Minnesota Rules, parts 4732.0305 and 4732.0565, issued under Minnesota
Rules, parts 4717.7000 to 4717.7050.
Sec. 4. Laws 2024, chapter 125, article 4, section 12, subdivision 5, is amended to read:
Subd. 5. Report. By December 15, 2025 November
30, 2026, the commissioner must provide a summary report on the pilot
program to the chairs and ranking minority members of the legislative
committees with jurisdiction over mental health and county correctional
facilities.
EFFECTIVE DATE. This
section is effective retroactively from December 15, 2025.
Sec. 5. Laws 2024, chapter 125, article 8, section 2, subdivision 20, is amended to read:
|
Subd. 20. Direct
Care and Treatment - Operations |
|
-0- |
|
6,094,000 |
(a) Free Communication Services for Patients and Clients. $1,368,000 in fiscal year 2025 is for free communication services under article 6, section 1. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2026.
(b) Direct Care and Treatment Capacity; Miller Building. $1,796,000 in fiscal year 2025 is to design a replacement facility for the Miller Building on the Anoka Metro Regional Treatment Center campus. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2027.
(d) Advisory Committee for Direct Care and Treatment. $482,000 in fiscal year 2025 is for the
administration of the advisory committee for the operation of Direct Care and
Treatment. This is a onetime
appropriation. Notwithstanding Minnesota
Statutes, section 16A.28, subdivision 3, this appropriation is available until
June 30, 2027 2028.
(e) Base Level Adjustment. The general fund base is increased by $31,000 in fiscal year 2026 and increased by $0 in fiscal year 2027.
ARTICLE 3
DEPARTMENT OF HEALTH POLICY
Section 1. Minnesota Statutes 2024, section 144.56, subdivision 2b, is amended to read:
Subd. 2b. Boarding care homes. The commissioner shall not adopt or enforce any rule that limits:
(1) a certified boarding care home from providing nursing services in accordance with the home's Medicaid certification; or
(2) a noncertified boarding
care home registered under chapter 144D from providing home care
services in accordance with the home's registration.
Sec. 2. Minnesota Statutes 2024, section 144.586, subdivision 2, is amended to read:
Subd. 2. Postacute care discharge planning. (a) Each hospital, including hospitals designated as critical access hospitals, must comply with the federal hospital requirements for discharge planning, which include:
(1) conducting a discharge planning evaluation that includes an evaluation of:
(i) the likelihood of the patient needing posthospital services and of the availability of those services; and
(ii) the patient's capacity for self-care or the possibility of the patient being cared for in the environment from which the patient entered the hospital;
(3) including the discharge planning evaluation under clause (1) in the patient's medical record for use in establishing an appropriate discharge plan. The hospital must discuss the results of the evaluation with the patient or individual acting on behalf of the patient. The hospital must reassess the patient's discharge plan if the hospital determines that there are factors that may affect continuing care needs or the appropriateness of the discharge plan; and
(4) providing counseling, as needed, for the patient and family members or interested persons to prepare them for posthospital care. The hospital must provide a list of available Medicare-eligible home care agencies or skilled nursing facilities that serve the patient's geographic area, or other area requested by the patient if such care or placement is indicated and appropriate. Once the patient has designated their preferred providers, the hospital will assist the patient in securing care covered by their health plan or within the care network. The hospital must not specify or otherwise limit the qualified providers that are available to the patient. The hospital must document in the patient's record that the list was presented to the patient or to the individual acting on the patient's behalf.
(b) Each hospital,
including hospitals designated as critical access hospitals, must document in
the patient's discharge plan instances when a restraint was used to manage the
patient's behavior prior to discharge, including the type of restraint, duration,
and frequency. In cases where the
patient is transferred to a licensed or registered provider, the hospital must
notify the provider of the type, duration, and frequency of the restraint. "Restraint" has the meaning given
in section 144G.08, subdivision 61a.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 3. Minnesota Statutes 2024, section 144.6502, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For the purposes of this section, the terms defined in this subdivision have the meanings given.
(b) "Commissioner" means the commissioner of health.
(c) "Department" means the Department of Health.
(d) "Electronic monitoring" means the placement and use of an electronic monitoring device in the resident's room or private living unit in accordance with this section.
(e) "Electronic monitoring device" means a camera or other device that captures, records, or broadcasts audio, video, or both, that is placed in a resident's room or private living unit and is used to monitor the resident or activities in the room or private living unit.
(f) "Facility" means a facility that is:
(1) licensed as a nursing home under chapter 144A;
(2) licensed as a boarding
care home under sections 144.50 to 144.56; or
(3) until August 1,
2021, a housing with services establishment registered under chapter 144D
that is either subject to chapter 144G or has a disclosed
special unit under section 325F.72; or
(4) on or after August
1, 2021, (3) licensed as an assisted living facility under
chapter 144G.
(h) "Resident representative" means one of the following in the order of priority listed, to the extent the person may reasonably be identified and located:
(1) a court-appointed guardian;
(2) a health care agent as defined in section 145C.01, subdivision 2; or
(3) a person who is not an agent of a facility or of a home care provider designated in writing by the resident and maintained in the resident's records on file with the facility.
Sec. 4. [144A.104]
PROHIBITED CONDITION FOR ADMISSION OR CONTINUED RESIDENCE.
(a) A nursing home is
prohibited from requiring a current or prospective resident to have or obtain a
guardian or conservator as a condition of admission to or continued residence
in the nursing home.
(b) Nothing in this
section may be construed to prohibit, limit, or otherwise affect section
524.5-303 or 524.5‑403.
EFFECTIVE DATE. This
section is effective August 1, 2026.
Sec. 5. Minnesota Statutes 2024, section 144A.161, subdivision 1a, is amended to read:
Subd. 1a. Scope. Where a facility is undertaking a
closure, reduction, or change in operations, or where a housing with
services unit registered under chapter 144D is closed because the space that it
occupies is being replaced by a nursing facility bed that is being reactivated
from layaway status, the facility and the county social services agency
must comply with the requirements of this section.
Sec. 6. Minnesota Statutes 2024, section 144A.472, subdivision 5, is amended to read:
Subd. 5. Changes in ownership. (a) A home care license issued by the commissioner may not be transferred to another party. Before acquiring ownership of or a controlling interest in a home care provider business, a prospective owner must apply for a new license. A change of ownership is a transfer of operational control of the home care provider business and includes:
(1) transfer of the business to a different or new corporation;
(2) in the case of a partnership, the dissolution or termination of the partnership under chapter 323A, with the business continuing by a successor partnership or other entity;
(3) relinquishment of control of the provider to another party, including to a contract management firm that is not under the control of the owner of the business' assets;
(4) transfer of the business by a sole proprietor to another party or entity; or
(5) transfer of ownership or control of 50 percent or more of the controlling interest of a home care provider business not covered by clauses (1) to (4).
(c) Notwithstanding paragraph (b), a new owner of a home care provider business must ensure that employees of the provider receive and complete training and testing on any provisions of policies that differ from those of the previous owner within 90 days after the date of the change in ownership.
(d) After a change of
ownership, the new licensee is responsible for any outstanding fines and any
fines assessed following the effective date of the change of ownership. Additionally, the new licensee is responsible
for bringing the home care provider into compliance with all existing ordered,
imposed, or agreed-upon corrections and conditions.
Sec. 7. Minnesota Statutes 2025 Supplement, section 144A.474, subdivision 11, is amended to read:
Subd. 11. Fines. (a) Fines and enforcement actions under this subdivision may be assessed based on the level and scope of the violations described in paragraph (b) and imposed immediately with no opportunity to correct the violation first as follows:
(1) Level 1, no fines or enforcement;
(2) Level 2, a fine of $500 per violation, in addition to any of the enforcement mechanisms authorized in section 144A.475;
(3) Level 3, a fine of $1,000 per incident, in addition to any of the enforcement mechanisms authorized in section 144A.475;
(4) Level 4, a fine of $3,000 per incident, in addition to any of the enforcement mechanisms authorized in section 144A.475;
(5) Level 5, a fine of $5,000 per violation, in addition to any enforcement mechanism authorized in section 144A.475; and
(6) for maltreatment violations for which the licensee was determined to be responsible for the maltreatment under section 626.557, subdivision 9c, paragraph (c), a fine of $1,000. A fine of $5,000 may be imposed if the commissioner determines the licensee is responsible for maltreatment consisting of sexual assault, death, or abuse resulting in serious injury.
The fines in clauses (1) to (5) are increased and immediate fine imposition is authorized for both surveys and investigations conducted.
When a fine is assessed against a facility for substantiated maltreatment, the commissioner shall not also impose an immediate fine under this chapter for the same circumstance.
(b) Correction orders for violations are categorized by both level and scope and fines shall be assessed as follows:
(i) Level 1 is a violation that will cause only minimal impact on the client and does not affect health or safety;
(ii) Level 2 is a violation that did not harm a client's health or safety but had the potential to have harmed a client's health or safety, but was not likely to cause serious injury, impairment, or death;
(iii) Level 3 is a violation that harmed a client's health or safety, or a violation that had the potential to cause more than minimal harm to the client;
(iv) Level 4 is a violation that harmed a client's health or safety, not including serious injury or death, or a violation that was likely to lead to serious injury or death; and
(v) Level 5 is a violation that results in serious injury or death; and
(2) scope of violation:
(i) isolated, when one or a limited number of clients are affected or one or a limited number of staff are involved or the situation has occurred only occasionally;
(ii) pattern, when more than a limited number of clients are affected, more than a limited number of staff are involved, or the situation has occurred repeatedly but is not found to be pervasive; and
(iii) widespread, when problems are pervasive or represent a systemic failure that has affected or has the potential to affect a large portion or all of the clients.
(c) If the commissioner finds that the applicant or a home care provider has not corrected violations by the date specified in the correction order or conditional license resulting from a survey or complaint investigation, the commissioner shall provide a notice of noncompliance with a correction order by email to the applicant's or provider's last known email address. The noncompliance notice must list the violations not corrected.
(d) For every violation identified by the commissioner, the commissioner shall issue an immediate fine pursuant to paragraph (a). The license holder must still correct the violation in the time specified. The issuance of an immediate fine can occur in addition to any enforcement mechanism authorized under section 144A.475. The immediate fine may be appealed as allowed under this subdivision.
(e) The license holder must pay the fines assessed on or before the payment date specified. If the license holder fails to fully comply with the order, the commissioner may issue a second fine or suspend the license until the license holder complies by paying the fine. A timely appeal shall stay payment of the fine until the commissioner issues a final order.
(f) A license holder shall promptly notify the commissioner in writing when a violation specified in the order is corrected. If upon reinspection the commissioner determines that a violation has not been corrected as indicated by the order, the commissioner may issue a second fine. The commissioner shall notify the license holder by mail to the last known address in the licensing record that a second fine has been assessed. The license holder may appeal the second fine as provided under this subdivision.
(g) A home care provider that has been assessed a fine under this subdivision has a right to a reconsideration or a hearing under this section and chapter 14.
(i) In addition to any fine imposed under this section, the commissioner may assess a penalty amount based on costs related to an investigation that results in a final order assessing a fine or other enforcement action authorized by this chapter.
(j) Fines collected under
paragraph (a) shall be deposited in a dedicated special revenue account. On an annual basis, the balance in the
special revenue account shall be appropriated to the commissioner to implement
the recommendations of the advisory council established in section 144A.4799. Money deposited in the account is
appropriated to the commissioner on an annual basis for a competitive grant
program for special projects for improving home care client quality of care and
outcomes in Minnesota, with a specific focus on workforce and clinical
outcomes, including projects consistent with the criteria in section 144A.4799,
subdivision 3, paragraph (c). Grants
must be distributed to home care providers licensed under this chapter or
organizations with experience in or knowledge of home care operations,
compliance, client needs, or best practices.
Each grant must be at least $1,000.
The commissioner may retain up to ten percent of the amount available to
cover the costs to administer the grant under this section. The commissioner must publish on the
department's website an annual report on the fines assessed and collected, and
how the appropriated money was allocated.
Sec. 8. Minnesota Statutes 2025 Supplement, section 144A.4799, subdivision 1, is amended to read:
Subdivision 1. Membership. (a) The commissioner of health shall appoint 14 persons to a home care and assisted living advisory council consisting of the following:
(1) four public members as defined in section 214.02, one of whom must be a person who either is receiving or has received home care services preferably within the five years prior to initial appointment, one of whom must be a person who has or had a family member receiving home care services preferably within the five years prior to initial appointment, one of whom must be a person who either is or has been a resident in an assisted living facility preferably within the five years prior to initial appointment, and one of whom must be a person who has or had a family member residing in an assisted living facility preferably within the five years prior to initial appointment;
(2) two Minnesota home care licensees representing basic and comprehensive levels of licensure who may be a managerial official, an administrator, a supervising registered nurse, or an unlicensed personnel performing home care tasks;
(3) one member representing the Minnesota Board of Nursing;
(4) one member representing the Office of Ombudsman for Long-Term Care;
(5) one member representing the Office of Ombudsman for Mental Health and Developmental Disabilities;
(6) one member of a county health and human services or county adult protection office;
(7) two Minnesota assisted living facility licensees representing assisted living facilities and assisted living facilities with dementia care levels of licensure who may be the facility's assisted living director, managerial official, or clinical nurse supervisor;
(8) one organization representing long-term care providers, home care providers, and assisted living providers in Minnesota; and
(b) When a vacancy
occurs for an appointment identified in paragraph (a), the commissioner must
select an applicant for appointment within 81 calendars days of the position
being posted by the secretary of state if the application of a qualified and,
if applicable, a licensee in good standing applicant is received within 21 days
of posting. If no qualified applications
are received within the first 21 days, the commissioner must select an
applicant for appointment within 60 calendar days of receiving the application
of a qualified and, if applicable, a licensee in good standing applicant.
Sec. 9. Minnesota Statutes 2024, section 144A.72, subdivision 2, is amended to read:
Subd. 2. Penalties. (a) Failure to comply with this section shall subject the supplemental nursing services agency to revocation or nonrenewal of its registration. Violations of section 144A.74 are subject to a fine equal to 200 percent of the amount billed or received in excess of the maximum permitted under that section.
(b) The commissioner may
request and must be given access to relevant information, records, incident
reports, or other documents in the possession of a registered supplemental
nursing services agency if considered necessary by the commissioner for verification
purposes. If access is denied, the
commissioner may bring enforcement action.
Sec. 10. Minnesota Statutes 2024, section 144G.08, is amended by adding a subdivision to read:
Subd. 26a. Imminent
risk. "Imminent
risk" means an immediate and impending threat to the health, safety, or
rights of an individual.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 11. Minnesota Statutes 2024, section 144G.08, is amended by adding a subdivision to read:
Subd. 54a. Prone
restraint. "Prone
restraint" means the use of manual restraint that places a resident in a
face‑down position. Prone restraint does
not include the brief physical holding of a resident who, during an emergency
use of a manual restraint, rolls into a prone position and as quickly as
possible the resident is restored to a standing, sitting, or side-lying
position.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 12. Minnesota Statutes 2024, section 144G.08, is amended by adding a subdivision to read:
Subd. 61a. Restraint. "Restraint" means:
(1) chemical restraint,
as defined in section 245D.02, subdivision 3b;
(2) manual restraint, as
defined in section 245D.02, subdivision 15a;
(3) mechanical
restraint, as defined in section 245D.02, subdivision 15b; or
(4) any other form of
restraint that limits the free and normal movement of body or limbs.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Subd. 6. Correction
orders and fines. After a
change of ownership, the new licensee is responsible for any outstanding fines
and any fines assessed following the effective date of the change of ownership
regardless of the date of the violation.
Additionally, the new licensee is responsible for bringing the facility
into compliance with all existing ordered, imposed, or agreed-upon corrections
and conditions.
Sec. 14. Minnesota Statutes 2024, section 144G.31, subdivision 6, is amended to read:
Subd. 6. Payment
of fines required. When a fine has
been assessed, the licensee may not avoid payment by closing, selling, or
otherwise transferring the license to a third party the license. In such an event, the licensee shall be
liable for payment of the fine. In
the event of a change of ownership, the new licensee is responsible for any
outstanding fines and any fines assessed following the effective date of the
change of ownership regardless of the date of the violation.
Sec. 15. Minnesota Statutes 2024, section 144G.40, subdivision 2, is amended to read:
Subd. 2. Uniform checklist disclosure of services. (a) All assisted living facilities must provide to prospective residents:
(1) a disclosure of the categories of assisted living licenses available and the category of license held by the facility;
(2) a written checklist
listing all services permitted under the facility's license, identifying all
services the facility offers to provide under the assisted living facility
contract, and identifying all services allowed under the license that
the facility does not provide, and beginning August 1, 2027, including
notification that the facility's most recent plan of correction is available,
according to section 144G.30, subdivision 5, paragraph (d), and the website for
the Department of Human Services and Board on Aging assisted living report card;
and
(3) an oral explanation of the services offered under the contract.
(b) The requirements of paragraph (a) must be completed prior to the execution of the assisted living contract.
(c) The commissioner must, in consultation with all interested stakeholders, design the uniform checklist disclosure form for use as provided under paragraph (a).
Sec. 16. Minnesota Statutes 2024, section 144G.41, subdivision 1, is amended to read:
Subdivision 1. Minimum requirements. All assisted living facilities shall:
(1) distribute to residents the assisted living bill of rights;
(2) provide services in a manner that complies with the Nurse Practice Act in sections 148.171 to 148.285;
(3) utilize a person-centered planning and service delivery process;
(4) have and maintain a system for delegation of health care activities to unlicensed personnel by a registered nurse, including supervision and evaluation of the delegated activities as required by the Nurse Practice Act in sections 148.171 to 148.285;
(6) allow residents the ability to furnish and decorate the resident's unit within the terms of the assisted living contract;
(7) permit residents access to food at any time;
(8) allow residents to choose the resident's visitors and times of visits;
(9) allow the resident the right to choose a roommate if sharing a unit;
(10) notify the resident of the resident's right to have and use a lockable door to the resident's unit. The licensee shall provide the locks on the unit. Only a staff member with a specific need to enter the unit shall have keys, and advance notice must be given to the resident before entrance, when possible. An assisted living facility must not lock a resident in the resident's unit;
(11) develop and implement a staffing plan for determining its staffing level that:
(i) includes an evaluation, to be conducted at least twice a year, of the appropriateness of staffing levels in the facility;
(ii) ensures sufficient staffing at all times to meet the scheduled and reasonably foreseeable unscheduled needs of each resident as required by the residents' assessments and service plans on a 24-hour per day basis; and
(iii) ensures that the facility can respond promptly and effectively to individual resident emergencies and to emergency, life safety, and disaster situations affecting staff or residents in the facility;
(12) effective until the effective date of clause (14), ensure that one or more persons are available 24 hours per day, seven days per week, who are responsible for responding to the requests of residents for assistance with health or safety needs. Such persons must be:
(i) awake;
(ii) located in the same building, in an attached building, or on a contiguous campus with the facility in order to respond within a reasonable amount of time;
(iii) capable of communicating with residents;
(iv) capable of providing or summoning the appropriate assistance; and
(v) capable of following
directions; and
(13) provide staff access
to an on-call registered nurse 24 hours per day, seven days per week;
(14)
effective August 1, 2027, ensure that one or more persons who are trained in
accordance with section 144G.61, subdivision 2, are available 24 hours per day,
seven days per week, and are responsible for responding to the requests of
residents for assistance with health or safety needs. Such persons must be:
(i) awake;
(ii) located in the same
building, in an attached building, or on a contiguous campus with the facility
in order to respond within a reasonable amount of time;
(iii) capable of
communicating with residents;
(iv) capable of
providing or summoning the appropriate assistance; and
(v) capable of following
directions;
(15) effective August 1,
2027, ensure a plan is in place for facility staff to immediately attend to
resident needs in a medical emergency until any emergency personnel arrive, if
summoned; and
(16) effective August 1, 2027, ensure a plan is in place for facility staff to meet the nonemergency medical needs of residents due to falling, including needs for lift assistance.
Sec. 17. Minnesota Statutes 2024, section 144G.41, is amended by adding a subdivision to read:
Subd. 1c. Alternative
to summoning device to request assistance.
For a resident who, based on an individualized nursing assessment
under section 144G.70, subdivision 2, cannot reliably use a summoning device
such as a phone, bell, call light, pull cord, or pendant to request assistance
for health and safety needs, a facility:
(1) is not required to have a resident use a summoning device to request
assistance for health and safety needs; and
(2) must use
person-centered strategies to meet the resident's assessed needs.
Sec. 18. Minnesota Statutes 2024, section 144G.41, subdivision 2, is amended to read:
Subd. 2. Policies
and procedures. (a) Each
assisted living facility must have policies and procedures in place to address
the following and keep them current:
(1) requirements in section 626.557, reporting of maltreatment of vulnerable adults;
(2) conducting and handling background studies on employees;
(3) orientation, training, and competency evaluations of staff, and a process for evaluating staff performance;
(4) handling complaints regarding staff or services provided by staff;
(5) conducting initial evaluations of residents' needs and the providers' ability to provide those services;
(6) conducting initial and ongoing resident evaluations and assessments of resident needs, including assessments by a registered nurse or appropriate licensed health professional, and how changes in a resident's condition are identified, managed, and communicated to staff and other health care providers as appropriate;
(7) orientation to and implementation of the assisted living bill of rights;
(9) reminders for medications, treatments, or exercises, if provided;
(10) conducting appropriate screenings, or documentation of prior screenings, to show that staff are free of tuberculosis, consistent with current United States Centers for Disease Control and Prevention standards;
(11) ensuring that nurses and licensed health professionals have current and valid licenses to practice;
(12) medication and treatment management;
(13) delegation of tasks by registered nurses or licensed health professionals;
(14) supervision of
registered nurses and licensed health professionals; and
(15) supervision of
unlicensed personnel performing delegated tasks;
(16) effective August 1,
2027, emergency procedures to be initiated by facility staff when a resident
experiences a medical emergency due to falling, a heart event, difficulty
breathing, or choking, and to be followed until emergency personnel arrive, if
summoned; and
(17) effective August 1, 2027, after determining that a resident is not experiencing a medical emergency pursuant to clause (16), procedures to be initiated by facility staff to meet the nonemergency medical needs of residents due to falling, including needs for lift assistance.
(b) Beginning August 1,
2027, each assisted living facility must keep all policies and procedures
current and make them available to a resident or the resident's representative
upon request. Policies and procedures
covering medical emergency events under paragraph (a), clause (16), must be
provided to prospective residents for whom a prospective resident assessment
has been performed as described under section 144G.70, subdivision 2, paragraph
(b), but before signing an assisted living contract, and to current residents
upon any changes to the policies and procedures covering medical emergencies
under paragraph (a), clause (16).
Sec. 19. [144G.505]
PROHIBITED CONDITION OF ADMISSION OR CONTINUED RESIDENCE.
(a) An assisted living
facility is prohibited from requiring a current or prospective resident to have
or obtain a guardian or conservator as a condition of admission to or continued
residence in the assisted living facility.
(b) Nothing in this
section may be construed to prohibit, limit, or otherwise affect section
524.5-303 or 524.5‑403.
EFFECTIVE DATE. This
section is effective August 1, 2026.
Sec. 20. Minnesota Statutes 2024, section 144G.60, subdivision 4, is amended to read:
Subd. 4. Unlicensed personnel. (a) Unlicensed personnel providing assisted living services must have:
(1) successfully completed a training and competency evaluation appropriate to the services provided by the facility and the topics listed in section 144G.61, subdivision 2, paragraph (a); or
(2) demonstrated competency
by satisfactorily completing a written or oral test on the tasks the unlicensed
personnel will perform and on the topics listed in section 144G.61, subdivision
2, paragraph (a); and successfully demonstrated competency on topics in section
144G.61, subdivision 2, paragraph (a), clauses (5), (7), and (8), and
(20), by a practical skills test.
(b) Unlicensed personnel performing delegated nursing tasks in an assisted living facility must:
(1) have successfully
completed training and demonstrated competency by successfully completing a
written or oral test of the topics in section 144G.61, subdivision 2,
paragraphs (a) and (b), and a practical skills test on tasks listed in section
144G.61, subdivision 2, paragraphs (a), clauses (5) and, (7), and
(20), and (b), clauses (3), (5), (6), and (7), and all the delegated tasks
they will perform;
(2) satisfy the current requirements of Medicare for training or competency of home health aides or nursing assistants, as provided by Code of Federal Regulations, title 42, section 483 or 484.36; or
(3) have, before April 19, 1993, completed a training course for nursing assistants that was approved by the commissioner.
(c) Unlicensed personnel performing therapy or treatment tasks delegated or assigned by a licensed health professional must meet the requirements for delegated tasks in section 144G.62, subdivision 2, paragraph (a), and any other training or competency requirements within the licensed health professional's scope of practice relating to delegation or assignment of tasks to unlicensed personnel.
Sec. 21. Minnesota Statutes 2024, section 144G.61, subdivision 2, is amended to read:
Subd. 2. Training and evaluation of unlicensed personnel. (a) Training and competency evaluations for all unlicensed personnel must include the following:
(1) documentation requirements for all services provided;
(2) reports of changes in the resident's condition to the supervisor designated by the facility;
(3) basic infection control, including blood-borne pathogens;
(4) maintenance of a clean and safe environment;
(5) appropriate and safe techniques in personal hygiene and grooming, including:
(i) hair care and bathing;
(ii) care of teeth, gums, and oral prosthetic devices;
(iii) care and use of hearing aids; and
(iv) dressing and assisting with toileting;
(6) training on the prevention of falls;
(7) standby assistance techniques and how to perform them;
(8) medication, exercise, and treatment reminders;
(9) basic nutrition, meal preparation, food safety, and assistance with eating;
(11) communication skills that include preserving the dignity of the resident and showing respect for the resident and the resident's preferences, cultural background, and family;
(12) awareness of confidentiality and privacy;
(13) understanding appropriate boundaries between staff and residents and the resident's family;
(14) effective until the effective date of clause (15),
procedures to use in handling various emergency situations; and
(15) effective August 1,
2027, procedures to use in handling various medical and nonmedical emergency
situations;
(15) (16) awareness
of commonly used health technology equipment and assistive devices;
(17) effective August 1,
2027, recognition of and immediate response to signs and symptoms of airway,
breathing, and circulation concerns;
(18) effective August 1,
2027, recognition of and immediate response to bleeding, including hemorrhage;
(19) effective August 1,
2027, safe techniques for emergency movement of residents; and
(20) effective August 1, 2027, log roll technique and spinal precautions.
(b) In addition to paragraph (a), training and competency evaluation for unlicensed personnel providing assisted living services must include:
(1) observing, reporting, and documenting resident status;
(2) basic knowledge of body functioning and changes in body functioning, injuries, or other observed changes that must be reported to appropriate personnel;
(3) reading and recording temperature, pulse, and respirations of the resident;
(4) recognizing physical, emotional, cognitive, and developmental needs of the resident;
(5) safe transfer techniques and ambulation;
(6) range of motioning and positioning; and
(7) administering medications or treatments as required.
Sec. 22. [144G.65]
TRAINING IN EMERGENCY MANUAL RESTRAINTS.
Subdivision 1. Training. A licensee must ensure that staff who
are authorized to apply an emergency use of a manual restraint complete a
minimum of four hours of training from a qualified individual prior to assuming
these responsibilities. Training must
include:
(1) types of behaviors
and de-escalation techniques and their value;
(2)
principles of person-centered planning and service delivery as identified in
section 245D.07, subdivision 1a, paragraph (b);
(3) what constitutes the
use of a restraint;
(4) staff
responsibilities related to: (i)
prohibited procedures under section 144G.85; (ii) why prohibited procedures are
not effective for reducing or eliminating symptoms or interfering behavior; and
(iii) why prohibited procedures are not safe;
(5) the situations when
staff must contact 911 services in response to an imminent risk of harm to the
resident or others; and
(6) strategies for
respecting and supporting each resident's cultural preferences.
Subd. 2. Annual
refresher training. The
licensee must ensure that staff who apply an emergency use of a manual
restraint complete two hours of refresher training on an annual basis covering
each of the training areas listed in subdivision 1.
Subd. 3. Implementation. The assisted living facility must
implement all orientation and training topics covered in this section.
Subd. 4. Verification
and documentation of orientation and training. For staff who are authorized to apply
an emergency use of a manual restraint, the assisted living facility must
retain evidence in the employee record of each staff person having completed
the orientation and training under this section.
Subd. 5. Exemption. This section does not apply to
licensees who have a policy prohibiting the use of restraints.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 23. [144G.85]
USE OF RESTRAINTS.
Subdivision 1. Use
of restraints prohibited. Restraints
are prohibited except as described in subdivisions 2 and 4.
Subd. 2. Exception. (a) Emergency use of a manual
restraint is permitted only when immediate intervention is needed to protect
the resident or others from imminent risk of physical harm and is the least
restrictive intervention to address the risk.
The restraint must be imposed for the least amount of time necessary and
removed when there is no longer imminent risk of physical harm to the resident
or other persons in the facility. The
use of restraint under this subdivision must:
(1) take into
consideration the rights, health, and welfare of the resident;
(2) not apply pressure to
the back or chest while a resident is in a prone, supine, or side-lying
position; and
(3) allow the resident to
be free from prone restraint.
(b) This section does not
apply when a resident or the resident's legal representative chooses, after
being informed of the facility's policy prohibiting the use of restraints, to
utilize a bed rail or other device that may constitute a restraint. The facility must document that the resident
or the resident's representative received information regarding the facility's
policy and the risks of using the device and voluntarily elected to utilize the
device.
Subd. 3. Documentation
and notification. (a) The
resident's legal representative must be notified within 24 hours of an
emergency use of a manual restraint and of the circumstances that prompted the
use. Notification of an emergency use of
a manual restraint must be documented. If
known, the advanced practice registered nurse, physician, or physician
assistant must be notified within 24 hours of an emergency use of a manual
restraint.
(b) On a form developed
by the commissioner, the facility must notify the commissioner and the
ombudsman for long-term care within seven calendar days of an emergency use of
a manual restraint, including when any restraint is first applied or ordered. The commissioner will monitor reported uses
to detect overuse or unauthorized, inappropriate, or ineffective use of the
restraint. The form must include:
(1) the name and date of
birth of the resident;
(2) the date and time of the use of the restraint;
(3) the names of staff
and any residents who were involved in the incident leading up to the emergency
use of a manual restraint;
(4) a description of the
incident, including the length of time the restraint was applied and who was
present before and during the incident leading up to the emergency use of a
manual restraint;
(5) a description of
what less restrictive alternative measures were attempted to de-escalate the
incident and maintain safety that identifies when, how, and for how long the
alternative measures were attempted before the emergency use of a manual restraint
was implemented;
(6) a description of the
mental, physical, and emotional condition of the resident who was restrained
and of other persons involved in the incident leading up to, during, and
following the emergency use of a manual restraint;
(7) whether there was
any injury to the resident who was restrained or other persons involved in the
incident, including staff, before or as a result of the emergency use of a
manual restraint; and
(8) whether there was a
debriefing following the incident with the staff, and, if not contraindicated,
with the resident who was restrained and other persons who were involved in or
who witnessed the emergency use of a manual restraint, and the outcome of the
debriefing. If the debriefing was not
conducted at the time the incident report was made, the form should identify
whether a debriefing is planned and a plan for mitigating use of restraints in
the future.
(c) A copy of the form
submitted under paragraph (b) must be maintained in the resident's record.
(d) A copy of the form
submitted under paragraph (b) must be sent to the resident's waiver case
manager within seven calendar days of an emergency use of manual restraints. An emergency use of manual restraints on
people served under section 256B.49 and chapter 256S must be documented by the
case manager in the resident's support plan, as defined in sections 256B.49,
subdivision 15, and 256S.10.
(e) The use of
restraints by law enforcement officers or other emergency personnel acting in a
licensed capacity does not require the facility to comply with the requirements
of this subdivision.
Subd. 4. Ordered
treatment. Any use of a
restraint, other than an emergency use of a manual restraint to address an
imminent risk, must be the least restrictive option and comply with the
requirements for an ordered treatment under section 144G.72.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Subd. 2. Registration. At the time of licensure or license renewal, a boarding and lodging establishment or a lodging establishment that provides supportive services or health supervision services must be registered with the commissioner, and must register annually thereafter. The registration must include the name, address, and telephone number of the establishment, the name of the operator, the types of services that are being provided, a description of the residents being served, the type and qualifications of staff in the facility, and other information that is necessary to identify the needs of the residents and the types of services that are being provided. The commissioner shall develop and furnish to the boarding and lodging establishment or lodging establishment the necessary form for submitting the registration.
Housing with services
establishments registered under chapter 144D shall be considered registered
under this section for all purposes except that:
(1) the establishments
shall operate under the requirements of chapter 144D; and
(2) the criminal
background check requirements of sections 299C.66 to 299C.71 apply. The criminal background check requirements of
section 144.057 apply only to personnel providing home care services under
sections 144A.43 to 144A.47 and personnel providing hospice care under sections
144A.75 to 144A.755.
Sec. 25. Minnesota Statutes 2024, section 157.17, subdivision 5, is amended to read:
Subd. 5. Services
that may not be provided in a boarding and lodging establishment or lodging
establishment. Except those
facilities registered under chapter 144D, A boarding and lodging
establishment or lodging establishment may not admit or retain individuals who:
(1) would require assistance from establishment staff because of the following needs: bowel incontinence, catheter care, use of injectable or parenteral medications, wound care, or dressing changes or irrigations of any kind; or
(2) require a level of care and supervision beyond supportive services or health supervision services.
Sec. 26. Minnesota Statutes 2024, section 295.50, subdivision 4, is amended to read:
Subd. 4. Health care provider. (a) "Health care provider" means:
(1) a person whose health care occupation is regulated or required to be regulated by the state of Minnesota furnishing any or all of the following goods or services directly to a patient or consumer: medical, surgical, optical, visual, dental, hearing, nursing services, drugs, laboratory, diagnostic or therapeutic services;
(2) a person who provides goods and services not listed in clause (1) that qualify for reimbursement under the medical assistance program provided under chapter 256B;
(3) a staff model health plan company;
(4) an ambulance service required to be licensed;
(5) a person who sells or repairs hearing aids and related equipment or prescription eyewear; or
(6) a person providing
patient services, who does not otherwise meet the definition of health care
provider and is not specifically excluded in clause paragraph
(b), who employs or contracts with a health care provider as defined in clauses
(1) to (5) to perform, supervise, otherwise oversee, or consult with regarding
patient services.
(1) hospitals; medical
supplies distributors, except as specified under paragraph (a), clause (5);
nursing homes licensed under chapter 144A or licensed in any other
jurisdiction; wholesale drug distributors; pharmacies; surgical centers; bus
and taxicab transportation, or any other providers of transportation services
other than ambulance services required to be licensed; supervised living
facilities for persons with developmental disabilities, licensed under
Minnesota Rules, parts 4665.0100 to 4665.9900; housing with services
establishments required to be registered under chapter 144D; assisted
living facilities licensed under chapter 144G; board and lodging
establishments providing only custodial services that are licensed under
chapter 157 and registered under section 157.17 to provide supportive services
or health supervision services; adult foster homes as defined in Minnesota
Rules, part 9555.5105; day training and habilitation services for adults with
developmental disabilities as defined in section 252.41, subdivision 3;
boarding care homes, as defined in Minnesota Rules, part 4655.0100; and adult
day care centers as defined in Minnesota Rules, part 9555.9600;
(2) home health agencies as
defined in Minnesota Rules, part 9505.0175, subpart 15; a person providing
personal care assistance services and supervision of personal care assistance
services as defined in Minnesota Rules, part 9505.0335 section
256B.0625, subdivision 19a; a person providing home care nursing services
as defined in Minnesota Rules, part 9505.0360; and home care providers required
to be licensed under chapter 144A for home care services provided under chapter
144A;
(3) a person who employs health care providers solely for the purpose of providing patient services to its employees;
(4) an educational institution that employs health care providers solely for the purpose of providing patient services to its students if the institution does not receive fee for service payments or payments for extended coverage; and
(5) a person who receives all payments for patient services from health care providers, surgical centers, or hospitals for goods and services that are taxable to the paying health care providers, surgical centers, or hospitals, as provided under section 295.53, subdivision 1, paragraph (b), clause (3) or (4), or from a source of funds that is excluded or exempt from tax under sections 295.50 to 295.59.
Sec. 27. Minnesota Statutes 2025 Supplement, section 295.50, subdivision 9b, is amended to read:
Subd. 9b. Patient services. (a) "Patient services" means inpatient and outpatient services and other goods and services provided by hospitals, surgical centers, or health care providers. They include the following health care goods and services provided to a patient or consumer:
(1) bed and board;
(2) nursing services and other related services;
(3) use of hospitals, surgical centers, or health care provider facilities;
(4) medical social services;
(5) drugs, biologicals, supplies, appliances, and equipment;
(6) other diagnostic or therapeutic items or services;
(7) medical or surgical services;
(9) emergency services.
(b) "Patient services" does not include:
(1) services provided to nursing homes licensed under chapter 144A;
(2) examinations for purposes of utilization reviews, insurance claims or eligibility, litigation, and employment, including reviews of medical records for those purposes;
(3) services provided to and by community residential mental health facilities licensed under section 245I.23 or Minnesota Rules, parts 9520.0500 to 9520.0670, and to and by residential treatment programs for children with a serious mental illness licensed or certified under chapter 245A;
(4) services provided under the following programs: day treatment services as defined in section 245.462, subdivision 8; assertive community treatment as described in section 256B.0622; adult rehabilitative mental health services as described in section 256B.0623; crisis response services as described in section 256B.0624; and children's therapeutic services and supports as described in section 256B.0943;
(5) services provided to and by community mental health centers as defined in section 245.62, subdivision 2;
(6) services provided to and by assisted living programs and congregate housing programs;
(7) hospice care services;
(8) home and community-based waivered services under chapter 256S and sections 256B.49 and 256B.501;
(9) targeted case management services under sections 256B.0621; 256B.0625, subdivisions 20, 20a, 33, and 44; and 256B.094; and
(10) services provided to
the following: supervised living
facilities for persons with developmental disabilities licensed under Minnesota
Rules, parts 4665.0100 to 4665.9900; housing with services establishments
required to be registered under chapter 144D; assisted living
facilities licensed under chapter 144G; board and lodging establishments
providing only custodial services that are licensed under chapter 157 and
registered under section 157.17 to provide supportive services or health
supervision services; adult foster homes as defined in Minnesota Rules, part
9555.5105; day training and habilitation services for adults with developmental
disabilities as defined in section 252.41, subdivision 3; boarding care homes
as defined in Minnesota Rules, part 4655.0100; adult day care services as
defined in section 245A.02, subdivision 2a; and home health agencies as defined
in Minnesota Rules, part 9505.0175, subpart 15, or licensed under chapter 144A.
Sec. 28. SPECIAL
PROJECTS GRANT PROGRAM FOR HOME CARE PROVIDERS.
By December 31, 2028, the
commissioner of health must distribute the balance as of January 1, 2027, in
the special revenue account under Minnesota Statutes, section 144A.474,
subdivision 11, paragraph (j), under a competitive grant program for special projects
for improving home care client quality of care and outcomes in Minnesota, with
a specific focus on workforce and clinical outcomes, including projects
consistent with criteria in Minnesota Statutes, section 144A.4799, subdivision
3, paragraph (c). Grants must be
distributed to home care providers licensed under Minnesota Statutes, chapter
144A, or organizations with experience in or knowledge of home care operations,
compliance, client needs, or best practices.
Each grant must be at least $1,000.
Any amount that has not been awarded as a grant by December 31, 2028,
must be used for the annual distributions under Minnesota Statutes, section
144A.474, subdivision 11, paragraph (j), beginning January 1, 2029.
AGING AND DISABILITY SERVICES POLICY
Section 1. Minnesota Statutes 2024, section 245A.03, is amended by adding a subdivision to read:
Subd. 7b. Licensing
moratorium. (a) The
commissioner shall not issue an initial license for child foster care licensed
under Minnesota Rules, parts 2960.3000 to 2960.3340, under this chapter. This paragraph does not apply to child foster
residence settings with residential program certifications for compliance with
the Family First Prevention Services Act under section 245A.25, subdivision 1,
paragraph (a). If a child foster
residence setting that was previously exempt from the licensing moratorium under
this paragraph has its Family First Prevention Services Act certification
rescinded under section 245A.25, subdivision 9, the commissioner shall revoke
the license according to section 245A.07.
(b) The commissioner
shall not issue an initial license for adult foster care licensed under
Minnesota Rules, parts 9555.5105 to 9555.6265, under this chapter for a
physical location that will not be the primary residence of the license holder
for the entire period of licensure. If
an adult foster care home license is issued during this moratorium, and the
license holder changes the license holder's primary residence away from the
physical location of the foster care license, the commissioner shall revoke the
license according to section 245A.07. When
an adult resident served by the program moves out of a foster home that is not
the primary residence of the license holder according to Minnesota Statutes
2016, section 256B.49, subdivision 15, paragraph (f), the county shall
immediately inform the Department of Human Services Licensing Division. The department may decrease the statewide
licensed capacity for adult foster care settings. Residential settings that would otherwise be
subject to the decreased license capacity established in this paragraph must be
exempt if the license holder's beds are occupied by residents whose primary
diagnosis is mental illness and the license holder is certified under the
requirements in subdivision 6a or section 245D.33.
(c) The commissioner
shall not issue an initial license for a community residential setting licensed
under this chapter and chapter 245D. When
an adult resident served by the program moves out of an adult community
residential setting, the county shall immediately inform the Department of
Human Services Licensing Division. The
department may decrease the statewide licensed capacity for community
residential settings. Residential
settings that would otherwise be subject to the decreased license capacity
established in this paragraph must be exempt if the license holder's beds are
occupied by residents whose primary diagnosis is mental illness and the license
holder is certified under the requirements in subdivision 6a or section
245D.33.
(d) The commissioner
shall not issue an initial license for children's residential treatment
services licensed under Minnesota Rules, parts 2960.0580 to 2960.0700, under
this chapter for a program that Centers for Medicare and Medicaid Services
would consider an institution for mental diseases. Facilities that serve only private pay
clients are exempt from the moratorium described in this paragraph. The commissioner has the authority to manage
existing statewide capacity for children's residential treatment services
subject to the moratorium under this paragraph and may issue an initial license
for such facilities if the initial license would not increase the statewide
capacity for children's residential treatment services subject to the
moratorium under this paragraph.
Sec. 2. Minnesota Statutes 2024, section 245A.03, is amended by adding a subdivision to read:
Subd. 7c. Licensing
moratorium exceptions. (a)
The commissioner may approve exceptions to the foster care and community
residential settings moratoria described under subdivision 7b as provided in
this subdivision.
(b) When approving an
exception under this subdivision to the foster care or community residential
setting moratorium described in subdivision 7b, the commissioner shall consider
the resource need determination process in subdivision 7d, the availability of
foster care licensed beds in the geographic area in which the licensee seeks to
operate, the results of the person's choices during the person's annual
assessment and service plan review, and the recommendation of the local county
board. The determination by the
commissioner is final and not subject to appeal.
(c)
Permissible exceptions to the moratorium include:
(1) a license for a
person in a foster care setting that is not the primary residence of the
license holder and where at least 80 percent of the residents are 55 years of
age or older;
(2) new foster care
licenses or community residential setting licenses determined to be needed by
the commissioner under subdivision 7d for the closure of a nursing facility, an
intermediate care facility for individuals with developmental disabilities, or
regional treatment center; restructuring of state-operated services that limits
the capacity of state-operated facilities; or movement to the community of
people who no longer require the level of care provided in state-operated
facilities as provided under section 256B.092, subdivision 13, or 256B.49,
subdivision 24; and
(3) new foster care
licenses or community residential setting licenses determined to be needed by
the commissioner under subdivision 7d for persons requiring hospital-level
care.
Sec. 3. Minnesota Statutes 2024, section 245A.03, is amended by adding a subdivision to read:
Subd. 7d. Resource
needs determination process. (a)
The commissioner shall determine the need for newly licensed foster care homes
or community residential settings. As
part of the determination, the commissioner shall consider the availability of
foster care capacity in the area in which the licensee seeks to operate and the
recommendation of the local county board.
The determination by the commissioner is final. A determination of need is not required for a
change in ownership at the same address.
(b) A resource need
determination process, managed at the state level, using the available data
required under section 144A.351 and other data and information must be used to
determine where the reduced capacity determined under section 256B.493 will be implemented. The commissioner shall consult with the
stakeholders described in section 144A.351 and employ a variety of methods to
improve the state's capacity to meet the informed decisions of those people who
want to move out of corporate foster care or community residential settings,
long-term service needs within budgetary limits, including seeking proposals
from service providers or lead agencies to change service type, capacity, or
location to improve services, increase the independence of residents, and
better meet needs identified by the long-term services and supports reports and
statewide data and information.
(c) At the time of
application and reapplication for licensure, the applicant and the license
holder that are subject to the moratorium or an exclusion established in
subdivision 7b are required to inform the commissioner whether the physical
location where the foster care will be provided is or will be the primary
residence of the license holder for the entire period of licensure. If the primary residence of the applicant or
license holder changes, the applicant or license holder must notify the
commissioner immediately. The
commissioner shall print on the foster care license certificate whether or not
the physical location is the primary residence of the license holder.
(d) License holders of
foster care homes identified under paragraph (c) that are not the primary
residence of the license holder and that also provide services in the foster
care home that are covered by a federally approved home and community-based
services waiver, as authorized under chapter 256S or section 256B.092 or
256B.49, must inform the human services licensing division that the license
holder provides or intends to provide these waiver‑funded services.
(e) The commissioner may
adjust capacity to address needs identified in section 144A.351. Under this authority, the commissioner may
approve new licensed settings or delicense existing settings. Delicensing of settings must be accomplished
through a process identified in section 256B.493.
(f) The commissioner must
notify a license holder when its corporate foster care or community residential
setting licensed beds are reduced under this section. The notice of reduction of licensed beds must
be in writing and delivered to the license holder by certified mail or personal
service. The notice must state why the
licensed beds are
reduced and must inform the license holder
of its right to request reconsideration by the commissioner. The license holder's request for
reconsideration must be in writing. If
mailed, the request for reconsideration must be postmarked and sent to the
commissioner within 20 calendar days after the license holder's receipt of the
notice of reduction of licensed beds. If
a request for reconsideration is made by personal service, it must be received
by the commissioner within 20 calendar days after the license holder's receipt
of the notice of reduction of licensed beds.
Sec. 4. Minnesota Statutes 2024, section 245A.11, subdivision 2a, is amended to read:
Subd. 2a. Adult foster care and community residential setting license capacity. (a) The commissioner shall issue adult foster care and community residential setting licenses with a maximum licensed capacity of four beds, including nonstaff roomers and boarders, except that the commissioner may issue a license with a capacity of five beds, including roomers and boarders, according to paragraphs (b) to (h).
(b) The license holder may have a maximum license capacity of five if all persons in care are age 55 or over and do not have a serious and persistent mental illness or a developmental disability.
(c) The commissioner may grant variances to paragraph (b) to allow a facility with a licensed capacity of up to five persons to admit an individual under the age of 55 if the variance complies with section 245A.04, subdivision 9, and approval of the variance is recommended by the county in which the licensed facility is located.
(d) The commissioner may grant variances to paragraph (a) to allow the use of an additional bed, up to six, for emergency crisis services for a person with serious and persistent mental illness or a developmental disability, regardless of age, if the variance complies with section 245A.04, subdivision 9, and approval of the variance is recommended by the county in which the licensed facility is located.
(e) The commissioner may grant a variance to paragraph (b) to allow for the use of an additional bed, up to six, for respite services, as defined in section 245A.02, for persons with disabilities, regardless of age, if the variance complies with sections 245A.03, subdivision 7, and 245A.04, subdivision 9, and approval of the variance is recommended by the county in which the licensed facility is located. Respite care may be provided under the following conditions:
(1) staffing ratios cannot be reduced below the approved level for the individuals being served in the home on a permanent basis;
(2) no more than two different individuals can be accepted for respite services in any calendar month and the total respite days may not exceed 120 days per program in any calendar year;
(3) the person receiving respite services must have his or her own bedroom, which could be used for alternative purposes when not used as a respite bedroom, and cannot be the room of another person who lives in the facility; and
(4) individuals living in the facility must be notified when the variance is approved. The provider must give 60 days' notice in writing to the residents and their legal representatives prior to accepting the first respite placement. Notice must be given to residents at least two days prior to service initiation, or as soon as the license holder is able if they receive notice of the need for respite less than two days prior to initiation, each time a respite client will be served, unless the requirement for this notice is waived by the resident or legal guardian.
(f) The commissioner may issue an adult foster care or community residential setting license with a capacity of five adults if the fifth bed does not increase the overall statewide capacity of licensed adult foster care or community residential setting beds in homes that are not the primary residence of the license holder, as identified in a plan submitted to the commissioner by the county, when the capacity is recommended by the county licensing agency of the county in which the facility is located and if the recommendation verifies that:
(2) the five-bed living arrangement is specified for each resident in the resident's:
(i) individualized plan of care;
(ii) individual service plan under section 256B.092, subdivision 1b, if required; or
(iii) individual resident placement agreement under Minnesota Rules, part 9555.5105, subpart 19, if required;
(3) the license holder obtains written and signed informed consent from each resident or resident's legal representative documenting the resident's informed choice to remain living in the home and that the resident's refusal to consent would not have resulted in service termination; and
(4) the facility was licensed for adult foster care before March 1, 2016.
(g) The commissioner shall not issue a new adult foster care license under paragraph (f) after December 31, 2020. The commissioner shall allow a facility with an adult foster care license issued under paragraph (f) before December 31, 2020, to continue with a capacity of five adults if the license holder continues to comply with the requirements in paragraph (f).
(h) The commissioner may issue
an adult foster care or community residential setting license with a capacity
of five or six adults to facilities meeting the criteria in section 245A.03,
subdivision 7, paragraph (a), clause (5), and grant variances to paragraph
(b) to allow the facility to admit an individual under the age of 55 if the
variance complies with section 245A.04, subdivision 9, and approval of the
variance is recommended by the county in which the licensed facility is located.
(i) Notwithstanding Minnesota Rules, part 9520.0500, adult foster care and community residential setting licenses with a capacity of up to six adults as allowed under this subdivision are not required to be licensed as an adult mental health residential program according to Minnesota Rules, parts 9520.0500 to 9520.0670.
Sec. 5. Minnesota Statutes 2025 Supplement, section 245C.03, subdivision 6, is amended to read:
Subd. 6. Unlicensed
home and community-based waiver providers of service to seniors and individuals
with disabilities and providers of housing stabilization services. (a) For providers of services specified
in the federally approved home and community-based waiver plans under section
256B.4912 and providers of housing stabilization services under section
256B.051, the commissioner shall conduct background studies on any
individual who is an owner with at least a five percent ownership stake in the
provider, an operator of the provider, or an employee or volunteer for the
provider who has direct contact with people receiving the services. The individual studied must meet the
requirements of this chapter prior to providing waiver services and as part of
ongoing enrollment.
(b) The requirements in paragraph (a) apply to consumer-directed community supports under section 256B.4911.
(c) For purposes of this section, "operator" includes but is not limited to a managerial officer who oversees the billing, management, or policies of the services provided.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Subd. 6. Unlicensed
home and community-based waiver providers of service to seniors and individuals
with disabilities and providers of housing stabilization services. (a) Providers required to initiate
background studies under section 245C.03, subdivision 6, must initiate a study
using the electronic system known as NETStudy 2.0 before the individual begins
in a position allowing direct contact with persons served by the provider. New providers must initiate a study under
this subdivision before initial enrollment if the provider has not already
initiated background studies as part of the service licensure requirements.
(b) Except as provided in paragraph (c), the providers must initiate a background study annually of an individual required to be studied under section 245C.03, subdivision 6.
(c) After an initial background study under this subdivision is initiated on an individual by a provider of both services licensed by the commissioner and the unlicensed services under this subdivision, a repeat annual background study is not required if:
(1) the provider maintains compliance with the requirements of section 245C.07, paragraph (a), regarding one individual with one address and telephone number as the person to receive sensitive background study information for the multiple programs that depend on the same background study, and that the individual who is designated to receive the sensitive background information is capable of determining, upon the request of the commissioner, whether a background study subject is providing direct contact services in one or more of the provider's programs or services and, if so, at which location or locations; and
(2) the individual who is the subject of the background study provides direct contact services under the provider's licensed program for at least 40 hours per year so the individual will be recognized by a probation officer or corrections agent to prompt a report to the commissioner regarding criminal convictions as required under section 245C.05, subdivision 7.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 7. Minnesota Statutes 2025 Supplement, section 245C.10, subdivision 6, is amended to read:
Subd. 6. Unlicensed
home and community-based waiver providers of service to seniors and individuals
with disabilities and providers of housing stabilization services. The commissioner shall recover the cost
of background studies initiated by unlicensed home and community-based waiver
providers of service to seniors and individuals with disabilities under section
256B.4912 and providers of housing stabilization services under section
256B.051 through a fee of no more than $44 per study.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 8. Minnesota Statutes 2024, section 245D.09, subdivision 5, is amended to read:
Subd. 5. Annual training. (a) A license holder must provide annual training to direct support staff on the topics identified in subdivision 4, clauses (3) to (11). A license holder may delay annual training up to 90 calendar days following the date by which the direct care staff would otherwise be required to receive the annual training.
(b) If the direct support staff has a first aid certification, annual training under subdivision 4, clause (9), is not required as long as the certification remains current.
EFFECTIVE DATE. This
section is effective August 1, 2026.
Subd. 2. Positive support professional qualifications. A positive support professional providing positive support services as identified in section 245D.03, subdivision 1, paragraph (c), clause (1), item (i), must have competencies in the following areas as required under the brain injury, community access for disability inclusion, community alternative care, and developmental disabilities waiver plans or successor plans:
(1) ethical considerations;
(2) functional assessment;
(3) functional analysis;
(4) measurement of behavior and interpretation of data;
(5) selecting intervention outcomes and strategies;
(6) behavior reduction and elimination strategies that promote least restrictive approved alternatives;
(7) data collection;
(8) staff and caregiver training;
(9) support plan monitoring;
(10) co-occurring mental disorders or neurocognitive disorder;
(11) demonstrated expertise with populations being served; and
(12) must be a:
(i) psychologist licensed under sections 148.88 to 148.98, who has stated to the Board of Psychology competencies in the above identified areas;
(ii) clinical social worker licensed as an independent clinical social worker under chapter 148E, or a person with a master's degree in social work from an accredited college or university, with at least 4,000 hours of post-master's supervised experience in the delivery of clinical services in the areas identified in clauses (1) to (11);
(iii) physician licensed under chapter 147 and certified by the American Board of Psychiatry and Neurology or eligible for board certification in psychiatry with competencies in the areas identified in clauses (1) to (11);
(iv) licensed professional
clinical counselor licensed under sections 148B.29 to 148B.39 148B.50
to 148B.75 with at least 4,000 hours of post-master's supervised experience
in the delivery of clinical services who has demonstrated competencies in the
areas identified in clauses (1) to (11);
(v) person with a master's degree from an accredited college or university in one of the behavioral sciences or related fields, with at least 4,000 hours of post-master's supervised experience in the delivery of clinical services with demonstrated competencies in the areas identified in clauses (1) to (11);
(vii) registered nurse who is licensed under sections 148.171 to 148.285, and who is certified as a clinical specialist or as a nurse practitioner in adult or family psychiatric and mental health nursing by a national nurse certification organization, or who has a master's degree in nursing or one of the behavioral sciences or related fields from an accredited college or university or its equivalent, with at least 4,000 hours of post-master's supervised experience in the delivery of clinical services; or
(viii) person who has completed a competency-based training program as determined by the commissioner.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 10. Minnesota Statutes 2025 Supplement, section 245D.091, subdivision 3, is amended to read:
Subd. 3. Positive support analyst qualifications. (a) A positive support analyst providing positive support services as identified in section 245D.03, subdivision 1, paragraph (c), clause (1), item (i), must satisfy one of the following requirements as required under the brain injury, community access for disability inclusion, community alternative care, and developmental disabilities waiver plans or successor plans:
(1) have obtained a baccalaureate degree, master's degree, or PhD in either a social services discipline or nursing;
(2) meet the qualifications of a mental health practitioner as defined in section 245.462, subdivision 17;
(3) be a board-certified
licensed behavior analyst or a board-certified assistant behavior
analyst certified by the Behavior Analyst Certification Board,
Incorporated; or
(4) have completed a competency-based training program as determined by the commissioner.
(b) In addition, a positive support analyst must:
(1) either have two years of supervised experience conducting functional behavior assessments and designing, implementing, and evaluating effectiveness of positive practices behavior support strategies for people who exhibit challenging behaviors as well as co-occurring mental disorders and neurocognitive disorder, or for those who have obtained a baccalaureate degree in one of the behavioral sciences or related fields, demonstrated expertise in positive support services;
(2) have received training prior to hire or within 90 calendar days of hire that includes:
(i) ten hours of instruction in functional assessment and functional analysis;
(ii) 20 hours of instruction in the understanding of the function of behavior;
(iii) ten hours of instruction on design of positive practices behavior support strategies;
(iv) 20 hours of instruction preparing written intervention strategies, designing data collection protocols, training other staff to implement positive practice strategies, summarizing and reporting program evaluation data, analyzing program evaluation data to identify design flaws in behavioral interventions or failures in implementation fidelity, and recommending enhancements based on evaluation data; and
(3) be determined by a positive support professional to have the training and prerequisite skills required to provide positive practice strategies as well as behavior reduction approved and permitted intervention to the person who receives positive support; and
(4) be under the direct supervision of a positive support professional.
(c) Meeting the qualifications for a positive support professional under subdivision 2 shall substitute for meeting the qualifications listed in paragraph (b).
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 11. Minnesota Statutes 2024, section 256.9752, as amended by Laws 2025, First Special Session chapter 9, article 1, sections 6 and 7, is amended to read:
256.9752 SENIOR NUTRITION PROGRAMS.
Subdivision 1. Program
goals. It is the goal of all area
agencies on aging and senior nutrition programs to support the physical and
mental health of seniors older adults living in the community by:
(1) promoting nutrition
programs that serve senior citizens older adults in their homes
and communities; and
(2) providing, within the
limit of funds available, the support services that will enable the senior
citizen each older adult to access nutrition programs in the most
cost-effective and efficient manner.; and
(3) coordinating with
health and long-term care systems, emergency preparedness systems, and other
systems and stakeholders that support the health and wellness of older adults.
Subd. 1a. Food delivery support account; appropriation. (a) A food delivery support account is established in the special revenue fund. The account consists of funds under section 174.49, subdivision 2, and as provided by law and any other money donated, allotted, transferred, or otherwise provided to the account.
(b) Money in the account is annually appropriated to the commissioner of human services for grants to nonprofit organizations to provide transportation of home-delivered meals, groceries, purchased food, or a combination, to Minnesotans who are experiencing food insecurity and have difficulty obtaining or preparing meals due to limited mobility, disability, age, or resources to prepare their own meals. A nonprofit organization must have a demonstrated history of providing and distributing food customized for the population that they serve.
(c) Grant funds under this subdivision must supplement, but not supplant, any state or federal funding used to provide prepared meals to Minnesotans experiencing food insecurity.
Subd. 2. Authority. The Minnesota Board on Aging shall
allocate to area agencies on aging the state nutrition support and food
delivery support funds and the federal funds which that
are received for the senior nutrition programs of congregate dining
and home-delivered meals in a manner consistent with the board's intrastate
funding formula.
Subd. 3. Nutrition support services. (a) Funds allocated to an area agency on aging for nutrition support services may be used for the following, as determined appropriate by the area agency on aging to address the needs of older adults in the agency's planning and service area:
(1) transportation of
home-delivered meals and purchased food and medications to the residence of a
senior citizen an older adult;
(3) transportation of
older adults to supermarkets grocery stores or delivery of
groceries from supermarkets to homes of older adults;
(4) vouchers for food purchases at selected restaurants in isolated rural areas;
(5) the Supplemental Nutrition Assistance Program (SNAP) outreach;
(6) transportation of seniors
older adults to congregate dining sites;
(7) nutrition screening assessments and counseling as needed by individuals with special dietary needs, performed by a licensed dietitian or nutritionist;
(8) medically tailored
meals;
(8) (9) other
appropriate services which and tools that support senior
nutrition programs, including new service delivery models and technology;
and
(9) (10)
development and implementation of innovative models of providing to
provide healthy and nutritious meals to seniors food to older
adults, including through partnerships with schools, restaurants, hospitals,
food shelves and food pantries, farmers, and other community partners.
(b) An area agency on aging may transfer unused funding for nutrition support services to fund congregate dining services and home-delivered meals.
(c) State funds under this subdivision are subject to federal requirements in accordance with the Minnesota Board on Aging's intrastate funding formula.
Sec. 12. Minnesota Statutes 2025 Supplement, section 256B.04, subdivision 21, is amended to read:
Subd. 21. Provider enrollment. (a) The commissioner shall enroll providers and conduct screening activities as required by Code of Federal Regulations, title 42, section 455, subpart E. A provider must enroll each provider‑controlled location where direct services are provided. The commissioner may deny a provider's incomplete application if a provider fails to respond to the commissioner's request for additional information within 60 days of the request. The commissioner must conduct a background study under chapter 245C, including a review of databases in section 245C.08, subdivision 1, paragraph (a), clauses (1) to (5), for a provider described in this paragraph. The background study requirement may be satisfied if the commissioner conducted a fingerprint-based background study on the provider that includes a review of databases in section 245C.08, subdivision 1, paragraph (a), clauses (1) to (5).
(b) The commissioner shall revalidate:
(1) each provider under this subdivision at least once every five years;
(2) each personal care assistance agency, CFSS provider-agency, and CFSS financial management services provider under this subdivision at least once every three years;
(3) each EIDBI agency under this subdivision at least once every three years; and
(c) The commissioner shall conduct revalidation as follows:
(1) provide 30-day notice of the revalidation due date including instructions for revalidation and a list of materials the provider must submit;
(2) if a provider fails to submit all required materials by the due date, notify the provider of the deficiency within 30 days after the due date and allow the provider an additional 30 days from the notification date to comply; and
(3) if a provider fails to remedy a deficiency within the 30-day time period, give 60-day notice of termination and immediately suspend the provider's ability to bill. The provider does not have the right to appeal suspension of ability to bill.
(d) If a provider fails to comply with any individual provider requirement or condition of participation, the commissioner may suspend the provider's ability to bill until the provider comes into compliance. The commissioner's decision to suspend the provider is not subject to an administrative appeal.
(e) Correspondence and notifications, including notifications of termination and other actions, may be delivered electronically to a provider's MN-ITS mailbox. This paragraph does not apply to correspondences and notifications related to background studies.
(f) If the commissioner or the Centers for Medicare and Medicaid Services determines that a provider is designated "high-risk," the commissioner may withhold payment from providers within that category upon initial enrollment for a 90-day period. The withholding for each provider must begin on the date of the first submission of a claim.
(g) An enrolled provider that is also licensed by the commissioner under chapter 245A, is licensed as a home care provider by the Department of Health under chapter 144A, or is licensed as an assisted living facility under chapter 144G and has a home and community-based services designation on the home care license under section 144A.484, must designate an individual as the entity's compliance officer. The compliance officer must:
(1) develop policies and procedures to assure adherence to medical assistance laws and regulations and to prevent inappropriate claims submissions;
(2) train the employees of the provider entity, and any agents or subcontractors of the provider entity including billers, on the policies and procedures under clause (1);
(3) respond to allegations of improper conduct related to the provision or billing of medical assistance services, and implement action to remediate any resulting problems;
(4) use evaluation techniques to monitor compliance with medical assistance laws and regulations;
(5) promptly report to the commissioner any identified violations of medical assistance laws or regulations; and
(6) within 60 days of discovery by the provider of a medical assistance reimbursement overpayment, report the overpayment to the commissioner and make arrangements with the commissioner for the commissioner's recovery of the overpayment.
(h) The commissioner may revoke the enrollment of an ordering or rendering provider for a period of not more than one year, if the provider fails to maintain and, upon request from the commissioner, provide access to documentation relating to written orders or requests for payment for durable medical equipment, certifications for home health services, or referrals for other items or services written or ordered by such provider, when the commissioner has identified a pattern of a lack of documentation. A pattern means a failure to maintain documentation or provide access to documentation on more than one occasion. Nothing in this paragraph limits the authority of the commissioner to sanction a provider under the provisions of section 256B.064.
(i) The commissioner shall terminate or deny the enrollment of any individual or entity if the individual or entity has been terminated from participation in Medicare or under the Medicaid program or Children's Health Insurance Program of any other state. The commissioner may exempt a rehabilitation agency from termination or denial that would otherwise be required under this paragraph, if the agency:
(1) is unable to retain Medicare certification and enrollment solely due to a lack of billing to the Medicare program;
(2) meets all other applicable Medicare certification requirements based on an on-site review completed by the commissioner of health; and
(3) serves primarily a pediatric population.
(j) As a condition of enrollment in medical assistance, the commissioner shall require that a provider designated "moderate" or "high-risk" by the Centers for Medicare and Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid Services, its agents, or its designated contractors and the state agency, its agents, or its designated contractors to conduct unannounced on-site inspections of any provider location. The commissioner shall publish in the Minnesota Health Care Program Provider Manual a list of provider types designated "limited," "moderate," or "high-risk," based on the criteria and standards used to designate Medicare providers in Code of Federal Regulations, title 42, section 424.518. The list and criteria are not subject to the requirements of chapter 14. The commissioner's designations are not subject to administrative appeal.
(k) As a condition of enrollment in medical assistance, the commissioner shall require that a high-risk provider, or a person with a direct or indirect ownership interest in the provider of five percent or higher, consent to criminal background checks, including fingerprinting, when required to do so under state law or by a determination by the commissioner or the Centers for Medicare and Medicaid Services that a provider is designated high-risk for fraud, waste, or abuse.
(l)(1) Upon initial enrollment, reenrollment, and notification of revalidation, all durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) medical suppliers meeting the durable medical equipment provider and supplier definition in clause (3), operating in Minnesota and receiving Medicaid funds must purchase a surety bond that is annually renewed and designates the Minnesota Department of Human Services as the obligee, and must be submitted in a form approved by the commissioner. For purposes of this clause, the following medical suppliers are not required to obtain a surety bond: a federally qualified health center, a home health agency, the Indian Health Service, a pharmacy, and a rural health clinic.
(2) At the time of initial enrollment or reenrollment, durable medical equipment providers and suppliers defined in clause (3) must purchase a surety bond of $50,000. If a revalidating provider's Medicaid revenue in the previous calendar year is up to and including $300,000, the provider agency must purchase a surety bond of $50,000. If a
(3) "Durable medical equipment provider or supplier" means a medical supplier that can purchase medical equipment or supplies for sale or rental to the general public and is able to perform or arrange for necessary repairs to and maintenance of equipment offered for sale or rental.
(m) The Department of Human
Services may require a provider to purchase a surety bond as a condition of
initial enrollment, reenrollment, reinstatement, or continued enrollment if: (1) the provider fails to demonstrate
financial viability, (2) the department determines there is significant
evidence of or potential for fraud and abuse by the provider, or (3) the
provider or category of providers is designated high-risk pursuant to paragraph
(f) and as per Code of Federal Regulations, title 42, section 455.450. The surety bond must be in an amount of
$100,000 or ten percent of the provider's payments from Medicaid during the
immediately preceding 12 months, whichever is greater. The surety bond must name the Department of
Human Services as an obligee and must allow for recovery of costs and fees in
pursuing a claim on the bond. This
paragraph does not apply if the provider currently maintains a surety bond
under the requirements in section 256B.051, 256B.0659, 256B.0701, or
256B.85.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 13. Minnesota Statutes 2024, section 256B.0625, is amended by adding a subdivision to read:
Subd. 77. Early
intensive developmental and behavioral intervention benefit. Medical assistance covers early
intensive developmental and behavioral intervention services according to
section 256B.0949.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 14. Minnesota Statutes 2024, section 256B.0658, is amended to read:
256B.0658 HOUSING ACCESS GRANTS.
Subdivision 1. Establishment. The commissioner of human services shall
award through a competitive process contracts for grants to public and private
agencies to support and assist individuals with a disability as defined in
section 256B.051, subdivision 2, paragraph (e), to access housing.
Subd. 2. Definition. (a) For the purposes of this
section, the term defined in this subdivision has the meaning given.
(b) "Individual with
a disability" means:
(1) an individual who is
aged, blind, or disabled as determined by the criteria under sections 216(i)(1)
and 221 of the Social Security Act; or
(2) an individual who
meets a category of eligibility under section 256D.05, subdivision 1, paragraph
(a), clause (1), (4), (5) to (8), or (13).
Subd. 3. Allowable uses of grant money. Grants may be awarded to agencies that may include, but are not limited to, the following supports: assessment to ensure suitability of housing, accompanying an individual to look at housing, filling out applications and rental agreements, meeting with landlords, helping with Section 8 or other program applications, helping to develop a budget, obtaining furniture and household goods, if necessary, and assisting with any problems that may arise with housing.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Subd. 9. Provider qualifications and duties. A provider is eligible for reimbursement under this section only if the provider:
(1) is confirmed by the commissioner as an eligible provider after a pre-enrollment risk assessment under subdivision 10;
(2) is enrolled as a medical assistance Minnesota health care program provider and meets all applicable provider standards and requirements;
(3) demonstrates
compliance with federal and state laws and policies for housing stabilization
services as determined by the commissioner;
(3) demonstrates
compliance with federal and state laws and policies for recuperative care
services as determined by the commissioner;
(4) complies with background study requirements under chapter 245C and maintains documentation of background study requests and results;
(5) provides at the time of enrollment, reenrollment, and revalidation in a format determined by the commissioner, proof of surety bond coverage for each business location providing services. Upon new enrollment, or if the provider's medical assistance revenue in the previous calendar year is $300,000 or less, the provider agency must purchase a surety bond of $50,000. If the provider's medical assistance revenue in the previous year is over $300,000, the provider agency must purchase a surety bond of $100,000. The surety bond must be in a form approved by the commissioner, must be renewed annually, and must allow for recovery of costs and fees in pursuing a claim on the bond. Any action to obtain monetary recovery or sanctions from a surety bond must occur within six years from the date the debt is affirmed by a final agency decision. An agency decision is final when the right to appeal the debt has been exhausted or the time to appeal has expired under section 256B.064;
(6) ensures all controlling individuals and employees of the agency complete annual vulnerable adult training;
(7) completes compliance training as required under subdivision 11; and
(8) complies with the habitability inspection requirements in subdivision 13.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 16. Minnesota Statutes 2025 Supplement, section 256B.0911, subdivision 13, is amended to read:
Subd. 13. MnCHOICES assessor qualifications, training, and certification. (a) The commissioner shall develop and implement a curriculum and an assessor certification process.
(b) MnCHOICES certified assessors must have received training and certification specific to assessment and consultation for long-term care services in the state and either:
(1) have at least an associate's degree in human services, or other closely related field;
(2) have at least an associate's degree in nursing with a public health nursing certificate, or other closely related field; or
(c) Certified assessors shall demonstrate best practices in assessment and support planning, including person‑centered planning principles, and have a common set of skills that ensures consistency and equitable access to services statewide.
(d) Certified assessors must be recertified every three years.
(e) A Tribal Nation may
establish the Tribal Nation's own education and experience qualifications for
certified assessors.
EFFECTIVE DATE. This
section is effective January 1, 2027, or upon federal approval, whichever is
later.
Sec. 17. Minnesota Statutes 2024, section 256B.0911, subdivision 32, is amended to read:
Subd. 32. Administrative activity. (a) The commissioner shall:
(1) streamline the processes, including timelines for when assessments need to be completed;
(2) provide the services in this section; and
(3) implement integrated solutions to automate the business processes to the extent necessary for support plan approval, reimbursement, program planning, evaluation, and policy development.
(b) The commissioner shall
work with lead agencies responsible for conducting long-term care consultation
services to:
(1) modify the
MnCHOICES application and assessment policies to create efficiencies while
ensuring federal compliance with medical assistance and long-term services and
supports eligibility criteria; and.
(2) develop a set of
measurable benchmarks sufficient to demonstrate quarterly improvement in the
average time per assessment and other mutually agreed upon measures of
increasing efficiency.
(c) The commissioner
shall collect data on the benchmarks developed under paragraph (b) and provide
to the lead agencies an annual trend analysis of the data in order to
demonstrate the commissioner's compliance with the requirements of this
subdivision.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 18. Minnesota Statutes 2024, section 256B.0924, subdivision 3, is amended to read:
Subd. 3. Eligibility. Persons are eligible to receive targeted case management services under this section if the requirements in paragraphs (a) and (b) are met.
(a) The person must be assessed and determined by the local county or Tribal agency to:
(1) be age 18 or older;
(2) be receiving medical assistance;
(3) have significant functional limitations; and
(4) be in need of service coordination to attain or maintain living in an integrated community setting.
(c) Tribal agencies may
make a determination of eligibility under Tribal governance codes for adult
protection or policy procedures consistent with section 626.5572 when
determining whether a person is a vulnerable adult in need of adult protection
or an adult with developmental disabilities or a related condition.
EFFECTIVE DATE. This
section is effective January 1, 2027, or upon federal approval, whichever is
later.
Sec. 19. Minnesota Statutes 2024, section 256B.0924, subdivision 5, is amended to read:
Subd. 5. Provider
standards. County boards or,
providers who contract with the county, or Tribal government contracted
providers are eligible to receive medical assistance reimbursement for
adult targeted case management services.
To qualify as a provider of targeted case management services the vendor
must:
(1) have demonstrated the capacity and experience to provide the activities of case management services defined in subdivision 4;
(2) be able to coordinate and link community resources needed by the recipient;
(3) have the administrative capacity and experience to serve the eligible population in providing services and to ensure quality of services under state and federal requirements;
(4) have a financial management system that provides accurate documentation of services and costs under state and federal requirements;
(5) have the capacity to document and maintain individual case records complying with state and federal requirements;
(6) coordinate with county
social service services or Tribal human services agencies
responsible for planning for community social services under chapters 256E and
256F; conducting adult protective investigations under section 626.557, and
conducting prepetition screenings for commitments under section 253B.07;
(7) coordinate with health care providers to ensure access to necessary health care services;
(8) have a procedure in place that notifies the recipient and the recipient's legal representative of any conflict of interest if the contracted targeted case management service provider also provides the recipient's services and supports and provides information on all potential conflicts of interest and obtains the recipient's informed consent and provides the recipient with alternatives; and
(9) have demonstrated the capacity to achieve the following performance outcomes: access, quality, and consumer satisfaction.
EFFECTIVE DATE. This
section is effective January 1, 2027, or upon federal approval, whichever is
later.
Subd. 5a. Tribal case manager qualifications. An individual is authorized to serve as a vulnerable adult and developmental disability targeted case manager if the individual is certified by a federally recognized Tribal government in Minnesota pursuant to section 256B.02, subdivision 7, paragraph (c).
Sec. 21. Minnesota Statutes 2025 Supplement, section 256B.0924, subdivision 6, is amended to read:
Subd. 6. Payment for targeted case management. (a) Medical assistance and MinnesotaCare payment for targeted case management shall be made on a monthly basis. In order to receive payment for an eligible adult, the provider must document at least one contact per month and not more than two consecutive months without a face‑to‑face contact either in person or by interactive video that meets the requirements in section 256B.0625, subdivision 20b, with the adult or the adult's legal representative, family, primary caregiver, or other relevant persons identified as necessary to the development or implementation of the goals of the personal service plan.
(b) Except as provided under
paragraph (m), payment for targeted case management provided by county staff
under this subdivision shall be based on the monthly rate methodology under
section 256B.094, subdivision 6, paragraph (b), calculated as one combined
average rate together with adult mental health case management under section
256B.0625, subdivision 20, except for calendar year 2002. In calendar year 2002, the rate for case
management under this section shall be the same as the rate for adult mental health
case management in effect as of December 31, 2001. Billing and payment must identify the
recipient's primary population group to allow tracking of revenues.
(c) Payment for targeted case management provided by county-contracted vendors shall be based on a monthly rate calculated in accordance with section 256B.076, subdivision 2. Payment for case management provided by vendors who contract with a Tribe must be made in accordance with Indian Health Service facility requirements. If a Tribe chooses to contract with a vendor receiving payment not through an Indian Health Service facility, the rate 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.
(d) If the service is
provided by a team that includes any combination of contracted vendors and,
county staff, and Tribal staff, the costs for county staff participation
on the team shall be included in the rate for county-provided services. In this case, the contracted vendor and the
county and Tribal case managers may each receive separate payment for
services provided by each entity in the same month. In order to prevent duplication of services, the
county each entity must document, in the recipient's file, the
need for team targeted case management and a description of the different roles
of the team members staff.
(e) Notwithstanding section
256B.19, subdivision 1, the nonfederal share of costs for targeted 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 recipient's Tribe
must provide the nonfederal share of costs, if any.
(f) The commissioner may suspend, reduce, or terminate 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 Tribe when applicable, is responsible for any federal disallowances. The county may share this responsibility with its contracted vendors.
(h) Payments to counties and Tribes for targeted case management expenditures under this section shall only be made from federal earnings from services provided under this section. Payments to contracted vendors shall include both the federal earnings and the county share.
(i) Notwithstanding section 256B.041, county or Tribal payments for the cost of case management services provided by county or Tribal staff shall not be made to the commissioner of management and budget. For the purposes of targeted case management services provided by county or Tribal staff under this section, the centralized disbursement of payments to counties or Tribes under section 256B.041 consists only of federal earnings from services provided under this section.
(j) 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 targeted 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; or
(2) the limits and conditions which apply to federal Medicaid funding for this service.
(k) Payment for targeted case management services under this subdivision shall not duplicate payments made under other program authorities for the same purpose.
(l) Any growth in targeted case management services and cost increases under this section shall be the responsibility of the counties or Tribes.
(m) The commissioner may make payments for Tribes according to section 256B.0625, subdivision 34, or other relevant federally approved rate setting methodologies for vulnerable adult and developmental disability targeted case management provided by Indian health services and facilities operated by a Tribe or Tribal organization.
EFFECTIVE DATE. This
section is effective January 1, 2027, or upon federal approval, whichever is
later.
Sec. 22. Minnesota Statutes 2024, section 256B.0924, subdivision 7, is amended to read:
Subd. 7. Implementation and evaluation. The commissioner of human services in consultation with county boards and Tribal Nations shall establish a program to accomplish the provisions of subdivisions 1 to 6. The commissioner in consultation with county boards and Tribal Nations shall establish performance measures to evaluate the effectiveness of the targeted case management services. If a county or Tribe fails to meet agreed-upon performance measures, the commissioner may authorize contracted providers other than the county or Tribe. Providers contracted by the commissioner shall also be subject to the standards in subdivision 6.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 23. Minnesota Statutes 2025 Supplement, section 256B.0949, subdivision 2, is amended to read:
Subd. 2. Definitions. (a) The terms used in this section have the meanings given in this subdivision.
(b) "Advanced certification" means a person who has completed advanced certification in an approved modality under subdivision 13, paragraph (b).
(d) "Autism spectrum disorder or a related condition" or "ASD or a related condition" means either autism spectrum disorder (ASD) as defined in the current version of the Diagnostic and Statistical Manual of Mental Disorders (DSM) or a condition that is found to be closely related to ASD, as identified under the current version of the DSM, and meets all of the following criteria:
(1) is severe and chronic;
(2) results in impairment of adaptive behavior and function similar to that of a person with ASD;
(3) requires treatment or services similar to those required for a person with ASD; and
(4) results in substantial functional limitations in three core developmental deficits of ASD: social or interpersonal interaction; functional communication, including nonverbal or social communication; and restrictive or repetitive behaviors or hyperreactivity or hyporeactivity to sensory input; and may include deficits or a high level of support in one or more of the following domains:
(i) behavioral challenges and self-regulation;
(ii) cognition;
(iii) learning and play;
(iv) self-care; or
(v) safety.
(e) "Behavior analyst" means an individual licensed under sections 148.9981 to 148.9995 as a behavior analyst.
(f) "Clinical
supervision" means the overall responsibility for the control and
direction of EIDBI service delivery, including individual treatment
planning, staff supervision, including observation and direction; individual
treatment plan development and progress monitoring,; family
training and counseling; and treatment review coordinated care
conference coordination for each person.
Clinical supervision is provided by a qualified supervising professional
(QSP) who takes full professional responsibility for the service provided by
each supervisee and the clinical effectiveness of all interventions.
(g) "Commissioner" means the commissioner of human services, unless otherwise specified.
(h) "Comprehensive multidisciplinary evaluation" or "CMDE" means a comprehensive evaluation of a person to determine medical necessity for EIDBI services based on the requirements in subdivision 5.
(i) "Department" means the Department of Human Services, unless otherwise specified.
(j) "Early intensive developmental and behavioral intervention benefit" or "EIDBI benefit" means a variety of individualized, intensive treatment modalities approved and published by the commissioner that are based in behavioral and developmental science consistent with best practices on effectiveness.
(l) "Generalizable goals" means results or gains that are observed during a variety of activities over time with different people, such as providers, family members, other adults, and people, and in different environments including, but not limited to, clinics, homes, schools, and the community.
(m) "Incident" means when any of the following occur:
(1) an illness, accident, or injury that requires first aid treatment;
(2) a bump or blow to the head; or
(3) an unusual or unexpected event that jeopardizes the safety of a person or staff, including a person leaving the agency unattended.
(n) "Individual treatment plan" or "ITP" means the person-centered, individualized written plan of care that integrates and coordinates person and family information from the CMDE for a person who meets medical necessity for the EIDBI benefit. An individual treatment plan must meet the standards in subdivision 6.
(o) "Legal representative" means the parent of a child who is under 18 years of age, a court-appointed guardian, or other representative with legal authority to make decisions about service for a person. For the purpose of this subdivision, "other representative with legal authority to make decisions" includes a health care agent or an attorney‑in-fact authorized through a health care directive or power of attorney.
(p) "Mental health professional" means a staff person who is
qualified according to section 245I.04, subdivision 2.
(q) "Person" means an individual under 21 years of age.
(r) "Person-centered" means a service that both responds to the identified needs, interests, values, preferences, and desired outcomes of the person or the person's legal representative and respects the person's history, dignity, and cultural background and allows inclusion and participation in the person's community.
(s) "Qualified EIDBI provider" means an individual who is a QSP or a level I, level II, or level III treatment provider.
Sec. 24. Minnesota Statutes 2025 Supplement, section 256B.0949, subdivision 16, is amended to read:
Subd. 16. Agency duties. (a) An agency delivering an EIDBI service under this section must:
(1) enroll as a medical assistance Minnesota health care program provider according to Minnesota Rules, part 9505.0195, and section 256B.04, subdivision 21, and meet all applicable provider standards and requirements;
(2) designate an individual as the agency's compliance officer who must perform the duties described in section 256B.04, subdivision 21, paragraph (g);
(3) demonstrate compliance with federal and state laws for the delivery of and billing for EIDBI service;
(5) demonstrate that while enrolled or seeking enrollment as a Minnesota health care program provider the agency did not have a lead agency contract or provider agreement discontinued because of a conviction of fraud; or did not have an owner, board member, or manager fail a state or federal criminal background check or appear on the list of excluded individuals or entities maintained by the federal Department of Human Services Office of Inspector General;
(6) have established business practices including written policies and procedures, internal controls, and a system that demonstrates the organization's ability to deliver quality EIDBI services, appropriately submit claims, conduct required staff training, document staff qualifications, document service activities, and document service quality;
(7) have an office located in Minnesota or a border state;
(8) initiate a background study as required under subdivision 16a;
(9) report maltreatment according to section 626.557 and chapter 260E;
(10) comply with any data requests consistent with the Minnesota Government Data Practices Act, sections 256B.064 and 256B.27;
(11) provide training for all agency staff on the requirements and responsibilities listed in the Maltreatment of Minors Act, chapter 260E, and the Vulnerable Adult Protection Act, section 626.557, including mandated and voluntary reporting, nonretaliation, and the agency's policy for all staff on how to report suspected abuse and neglect;
(12) have a written policy to resolve issues collaboratively with the person and the person's legal representative when possible. The policy must include a timeline for when the person and the person's legal representative will be notified about issues that arise in the provision of services;
(13) provide the person's legal representative with prompt notification if the person is injured while being served by the agency. An incident report must be completed by the agency staff member in charge of the person. A copy of all incident and injury reports must remain on file at the agency for at least five years from the report of the incident;
(14) before starting a service, provide the person or the person's legal representative a description of the treatment modality that the person shall receive, including the staffing certification levels and training of the staff who shall provide a treatment;
(15) provide clinical supervision for a minimum of one hour for every 16 hours of direct treatment per person, unless otherwise authorized in the person's individual treatment plan; and
(16) provide the required EIDBI intervention observation and direction by a QSP at least once per month. Notwithstanding subdivision 13, paragraph (l), required EIDBI intervention observation and direction under this clause may be conducted via telehealth provided that no more than two consecutive monthly required EIDBI intervention observation and direction sessions under this clause are conducted via telehealth.
(b) Upon request of the commissioner, an agency delivering services under this section must:
(1) identify the agency's controlling individuals, as defined under section 245A.02, subdivision 5a;
(2) provide disclosures of the use of billing agencies
and other consultants who do not provide EIDBI services; and
(3) provide copies of any contracts with consultants or independent contractors who do not provide EIDBI services, including hours contracted and responsibilities.
(c) When delivering the ITP, and annually thereafter, an agency must provide the person or the person's legal representative with:
(1) a written copy and a verbal explanation of the person's or person's legal representative's rights and the agency's responsibilities;
(2) documentation in the person's file the date that the person or the person's legal representative received a copy and explanation of the person's or person's legal representative's rights and the agency's responsibilities; and
(3) reasonable accommodations to provide the information in another format or language as needed to facilitate understanding of the person's or person's legal representative's rights and the agency's responsibilities.
Sec. 25. Minnesota Statutes 2025 Supplement, section 256B.0949, subdivision 18, is amended to read:
Subd. 18. Site visits and sanctions. (a) The commissioner may conduct unannounced on-site inspections of any and all EIDBI agencies and service locations to verify that information submitted to the commissioner is accurate, determine compliance with all enrollment requirements, investigate reports of maltreatment, determine compliance with service delivery and billing requirements, and determine compliance with any other applicable laws or rules.
(b) The commissioner may withhold payment from an agency or suspend or terminate the agency's enrollment number if the agency fails to provide access to the agency's service locations or records or fails to comply with documentation requirements under subdivision 19 or the commissioner determines the agency has failed to comply fully with applicable laws or rules. The provider has the right to appeal the decision of the commissioner under section 256B.064.
Sec. 26. Minnesota Statutes 2024, section 256B.0949, is amended by adding a subdivision to read:
Subd. 19. Documentation
requirements. (a) CMDE and
EIDBI providers must ensure that all documentation, including but not limited
to health service records and personnel files, complies with this subdivision,
subdivision 16, and Minnesota Rules, parts 9505.2175 and 9505.2197. Documentation must be complete, legible,
accurate, and readily accessible.
(b) All documentation
must:
(1) be legible and
understandable to individuals outside service delivery;
(2) include the
participant's name on each health record page and the provider's name on each
personnel file page;
(3) be signed and dated
by the provider completing the documentation with the provider's full name,
title, and credentials;
(4) be entered within 72 hours of service and contain a record and explanation of any delays in entry;
(5) clearly reflect
clinical decision-making and support medical necessity;
(6) be
securely stored in accordance with the Health Insurance Portability and
Accountability Act (HIPAA), Public Law 104-191;
(7) be stored in
accordance with state and federal document retention laws;
(8) be available for
review or audit;
(9) include a record of
caregiver involvement where applicable; and
(10) include a record of
supervision and oversight for staff providing services requiring supervision
under EIDBI policy.
(c) Each EIDBI service
occurrence must be documented in a progress note in a manner and with the
information determined by the commissioner.
(d) All providers must
maintain current personnel records for each employee in a manner determined by
the commissioner that include:
(1) the employee's name,
contact information, and hire date;
(2) the employee's
completed employment application and acknowledgment of duties;
(3) the job description
for the employee's job with the effective date;
(4) verification of the
employee's qualifications, including but not limited to education, licenses,
certifications, enrollment attestation, degrees, transcripts, and experience;
(5) a background study
pursuant to chapter 245C with a notice from the commissioner that the subject
of the study is:
(i) not disqualified
under section 245C.14; or
(ii) disqualified but
the subject of the study has received a set-aside of the disqualification under
section 245C.22;
(6) orientation and
required training the employee attended, including but not limited to training
on mandated reporting, cultural responsiveness, and EIDBI competencies;
(7) the dates of the
employee's first supervised and unsupervised client contact following
employment;
(8) documentation of
supervision received by the employee, including but not limited to the
supervisor's name and credentials, dates of supervision, supervision content,
and the employee's signature indicating the accuracy of the documented
supervision;
(9) the employee's CPR
and emergency response training, if required; and
(10) the employee's
annual performance evaluations.
(e) If an incident
occurs or the person is injured while receiving services, the provider must
document what occurred and how staff responded to the incident.
Subd. 2a. Informed choice policy. (a) It is the policy of this state that all adults who have disabilities and, with support from their families or legal representatives, that all children who have disabilities:
(1) may make informed choices to select and utilize disability services and supports; and
(2) are offered an informed decision-making process sufficient to make informed choices.
(b) It is the policy of this state that disability waivers services support the presumption that adults who have disabilities and, with support from their families or legal representatives, all children who have disabilities may make informed choices; and that all adults who have disabilities and all families of children who have disabilities and are accessing waiver services under sections 256B.092 and 256B.49 are provided an informed decision-making process that satisfies the requirements of subdivision 3a.
(c) Lead agencies must
support individuals in making informed choices by:
(1) providing complete
and accurate information about available home and community-based services and
settings;
(2) providing the
information in a manner that is culturally and linguistically appropriate; and
(3) facilitating access
to services that reflect the individual's preferences and assessed needs.
(d) For individuals who
are members of or affiliated with a federally recognized Tribal Nation located
within Minnesota, informed choice includes the right to receive services
administered or provided by the individual's Tribal Nation. Lead agencies must:
(1) inform individuals
of services offered by Tribal Nations enrolled as Minnesota health care
providers;
(2) directly coordinate
with the individual's Tribal Nation human services agency when the individual
seeks or may be eligible for services administered or provided by that Tribal
Nation; and
(3) ensure that service
planning and delivery respects the individual's rights as both a member of a
sovereign Tribal Nation and a resident of Minnesota.
(e) County lead agencies
and Tribal Nation human services agencies must establish and maintain
procedures to share updated contact information, coordinate case management,
and provide timely referrals necessary to ensure that informed choice is fully
exercised.
(f) Nothing in this
section limits the sovereignty of Tribal Nations or the authority of Tribal
governments to administer home and community-based services to their members.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 28. Minnesota Statutes 2025 Supplement, section 256B.4914, subdivision 10a, is amended to read:
Subd. 10a. Reporting and analysis of cost data. (a) The commissioner must ensure that wage values and component values in subdivisions 5 to 9 reflect the cost to provide the service. As determined by the commissioner, in consultation with community partners identified in subdivision 17, a provider enrolled to provide services with
(1) worker wage costs;
(2) benefits paid;
(3) supervisor wage costs;
(4) executive wage costs;
(5) vacation, sick, and training time paid;
(6) taxes, workers' compensation, and unemployment insurance costs paid;
(7) administrative costs paid;
(8) program costs paid;
(9) transportation costs paid;
(10) vacancy rates; and
(11) other data relating to costs required to provide services requested by the commissioner.
(b) At least once in any five-year period, a provider must submit cost data for a fiscal year that ended not more than 18 months prior to the submission date. The commissioner shall provide each provider a 90-day notice prior to its submission due date. The commissioner may review report submissions for inaccurate, inconclusive, incomplete, or otherwise deficient data and may remove the report from submitted status for further verification. If a provider fails to submit required reporting data, the commissioner shall provide notice to providers that have not provided required data 30 days after the required submission date, and a second notice for providers who have not provided required data 60 days after the required submission date. The commissioner shall temporarily suspend payments to the provider if cost data is not received 90 days after the required submission date. Withheld payments shall be made once data is received and reviewed for compliance by the commissioner.
(c) The commissioner shall conduct a random validation of data submitted under paragraph (a) to ensure data accuracy. Providers selected to validate cost reports must respond to the commissioner within 30 days with the requested financial documentation. If a provider fails to respond to the commissioner with all the requested information within 30 days, the commissioner must temporarily suspend payments. The commissioner must resume payments once the requested documentation is received. If a provider is unable to validate the provider's costs with supporting documentation, the commissioner must require the provider to participate in the random validation the next year that the commissioner selects providers to report their costs. The commissioner shall analyze cost documentation in paragraph (a) and provide recommendations for adjustments to cost components.
(d) The commissioner shall analyze cost data submitted under paragraph (a). The commissioner shall release cost data in an aggregate form. Cost data from individual providers must not be released except as provided for in current law.
(e) Beginning January 1, 2029, the commissioner shall use data collected in paragraph (a) to determine the compliance with requirements identified under subdivision 10d. The commissioner shall identify providers who have not met the thresholds identified under subdivision 10d on the Department of Human Services website for the year for which the providers reported their costs.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Subdivision 1. Commissioner's
duties; report. The commissioner of
human services has the authority to manage statewide licensed corporate foster
care or community residential settings capacity, including the reduction and
realignment of licensed capacity of a current foster care or community residential
setting to accomplish the consolidation or closure of settings. The commissioner shall implement a program
for planned closure of licensed corporate adult foster care or community
residential settings, necessary as a preferred method to: (1) respond to the informed decisions of
those individuals who want to move out of these settings into other types of
community settings; and (2) achieve
necessary budgetary savings required in section 245A.03, subdivision 7,
paragraphs (c) and (d).
Sec. 30. Minnesota Statutes 2024, section 256B.851, subdivision 8, is amended to read:
Subd. 8. Personal care provider agency; required reporting of cost data; training. (a) As determined by the commissioner and in consultation with stakeholders, agencies enrolled to provide services with rates determined under this section must submit requested cost data to the commissioner. The commissioner may request cost data, including but not limited to:
(1) worker wage costs;
(2) benefits paid;
(3) supervisor wage costs;
(4) executive wage costs;
(5) vacation, sick, and training time paid;
(6) taxes, workers' compensation, and unemployment insurance costs paid;
(7) administrative costs paid;
(8) program costs paid;
(9) transportation costs paid;
(10) staff vacancy rates; and
(11) other data relating to costs required to provide services requested by the commissioner.
(b) At least once in any three-year period, a provider must submit the required cost data for a fiscal year that ended not more than 18 months prior to the submission date. The commissioner must provide each provider a 90‑day notice prior to its submission due date. The commissioner may review report submissions for inaccurate, inconclusive, incomplete, or otherwise deficient data and may remove the report from submitted status for further verification. If a provider fails to submit required cost data, the commissioner must provide notice to a provider that has not provided required cost data 30 days after the required submission date and a second notice to a provider that has not provided required cost data 60 days after the required submission date. The commissioner must temporarily suspend payments to a provider if the commissioner has not received required cost data 90 days after the required submission date. The commissioner must make withheld payments when the required cost data is received and reviewed for compliance by the commissioner.
(d) The commissioner, in consultation with stakeholders, must develop and implement a process for providing training and technical assistance necessary to support provider submission of cost data required under this subdivision.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 31. Minnesota Statutes 2024, section 256L.03, subdivision 1, is amended to read:
Subdivision 1. Covered
health services. (a) "Covered
health services" means the health services reimbursed under chapter 256B,
with the exception of special education services, home care nursing services,
nonemergency medical transportation services, personal care assistance and case
management services, community first services and supports under section
256B.85, behavioral health home services under section 256B.0757, housing
stabilization services under section 256B.051, and nursing home or
intermediate care facilities services.
(b) Covered health services shall be expanded as provided in this section.
(c) For the purposes of covered health services under this section, "child" means an individual younger than 19 years of age.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 32. Minnesota Statutes 2024, section 256R.481, is amended to read:
256R.481 RATE ADJUSTMENTS FOR BORDER CITY FACILITIES.
(a) The commissioner shall allow each nonprofit nursing facility located within the boundaries of the city of Breckenridge or Moorhead prior to January 1, 2015, to apply once annually for a rate add-on to the facility's external fixed costs payment rate.
(b) A facility seeking an add-on to its external fixed costs payment rate under this section must apply annually to the commissioner to receive the add-on. A facility must submit the application within 60 calendar days of the effective date of any add-on under this section. The commissioner may waive the deadlines required by this paragraph under extraordinary circumstances.
(c) The commissioner shall provide the add-on to each eligible facility that applies by the application deadline.
(d) The add-on to the
external fixed costs payment rate is the difference on January 1 of the median
total payment rate for case mix classification PA1 the lowest case
mix classification in effect of the nonprofit facilities located in an
adjacent city in another state and in cities contiguous to the adjacent city
minus the eligible nursing facility's total payment rate for case mix
classification PA1 the lowest case mix classification in effect as
determined under section 256R.22, subdivision 4.
EFFECTIVE DATE. This
section is effective retroactively from January 1, 2026, and applies to rate
years beginning on or after January 1, 2026.
Subdivision 1. Definitions. (a) For the purposes of this section, the terms in this subdivision have the meanings given.
(b) "Application year" means a year in which a facility submits an application for designation as a disproportionate share facility.
(c) "Customized living
resident" means a resident of a facility who is receiving either 24-hour
customized living services or customized living services authorized under the
elderly waiver, the brain injury waiver, or the community access for disability
inclusion waiver. Effective August
31, 2026, a resident who experiences an interruption to waiver benefits
resulting from a temporary absence from the facility is a customized living
resident during the period of the temporary absence for purposes of this section.
(d) "Disproportionate share facility" means a facility designated by the commissioner under subdivision 4.
(e) "Facility" means either an assisted living facility licensed under chapter 144G or a setting that is exempt from assisted living licensure under section 144G.08, subdivision 7, clauses (10) to (13).
(f) "Rate year" means January 1 to December 31 of the year following an application year.
(g) "Residing in
the facility" means that the facility is the resident's fixed permanent
home and the place to which the resident intends to return following a
temporary absence.
Sec. 34. Minnesota Statutes 2025 Supplement, section 256S.205, subdivision 2, is amended to read:
Subd. 2. Rate adjustment application. (a) Effective through September 30, 2023, a facility may apply to the commissioner for an initial designation as a disproportionate share facility. Applications must be submitted annually between September 1 and September 30. The applying facility must apply in a manner determined by the commissioner. The applying facility must document each of the following on the application:
(1) the number of customized living residents residing in the facility on September 1 of the application year, broken out by specific waiver program; and
(2) the total number of people residing in the facility on September 1 of the application year.
(b) Effective October 1, 2023, the commissioner must not process any new initial applications for disproportionate share facilities.
(c) A facility that received rate floor payments in rate year 2024 may submit an annual application under this subdivision to maintain its designation as a disproportionate share facility.
Sec. 35. Minnesota Statutes 2024, section 256S.21, subdivision 3, is amended to read:
Subd. 3. Cost reporting. (a) As determined by the commissioner, in consultation with stakeholders, a provider enrolled to provide services with rates determined under this chapter must submit requested cost data to the commissioner to support evaluation of the rate methodologies in this chapter. Requested cost data may include but are not limited to:
(1) worker wage costs;
(3) supervisor wage costs;
(4) executive wage costs;
(5) vacation, sick, and training time paid;
(6) taxes, workers' compensation, and unemployment insurance costs paid;
(7) administrative costs paid;
(8) program costs paid;
(9) transportation costs paid;
(10) vacancy rates; and
(11) other data relating to costs required to provide services requested by the commissioner.
(b) At least once in any
five-year period, a provider must submit the required cost data for a
fiscal year that ended not more than 18 months prior to the submission date. The commissioner shall must
provide each provider a 90-day notice prior to the provider's submission due
date. The commissioner may review
report submissions for inaccurate, inconclusive, incomplete, or otherwise
deficient data and may remove the report from submitted status for further
verification. If by 30 days after
the required submission date a provider fails to submit required reporting
data, the commissioner shall must provide notice to the provider,
and. If by 60 days after the
required submission date a provider has not provided the required data, the
commissioner shall must provide a second notice. The commissioner shall must
temporarily suspend payments to the a provider if the
commissioner has not received the required cost data is not received
90 days after the required submission date or 90 days after the commissioner
requests updated data. The
commissioner must make withheld payments must be made once data is
received when the required cost data is received and reviewed for
compliance by the commissioner.
(c) The commissioner shall coordinate the cost reporting activities required under this section with the cost reporting activities directed under section 256B.4914, subdivision 10a.
(d) The commissioner shall
analyze cost documentation in paragraph (a) and, in consultation with
stakeholders, may submit recommendations on rate methodologies in this chapter,
including ways to monitor and enforce the spending requirements directed in section
256S.2101, subdivision 3, 256S.211, subdivision 4, through the
reports directed by subdivision 2.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 36. Laws 2023, chapter 61, article 1, section 67, subdivision 3, as amended by Laws 2024, chapter 125, article 8, section 10, is amended to read:
Subd. 3. Evaluation and report. (a) The Metropolitan Center for Independent Living must contract with a third party to evaluate the pilot project's impact on health care costs, retention of personal care assistants, and patients' and providers' satisfaction of care. The evaluation must include the number of participants, the hours of care provided by participants, and the retention of participants from semester to semester.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 37. Laws 2023, chapter 61, article 9, section 2, subdivision 5, as amended by Laws 2024, chapter 125, article 8, section 12, is amended to read:
|
Subd. 5. Central
Office; Aging and Disability Services |
|
40,115,000 |
|
11,995,000 |
(a) Employment Supports Alignment Study. $50,000 in fiscal year 2024 and $200,000 in fiscal year 2025 are to conduct an interagency employment supports alignment study. The base for this appropriation is $150,000 in fiscal year 2026 and $100,000 in fiscal year 2027.
(b) Case Management Training Curriculum. $377,000 in fiscal year 2024 and $377,000 in fiscal year 2025 are to develop and implement a curriculum and training plan to ensure all lead agency assessors and case managers have the knowledge and skills necessary to fulfill support planning and coordination responsibilities for individuals who use home and community‑based disability services and live in own-home settings. This is a onetime appropriation.
(c) Office of Ombudsperson for Long-Term Care. $875,000 in fiscal year 2024 and $875,000 in fiscal year 2025 are for additional staff and associated direct costs in the Office of Ombudsperson for Long-Term Care.
(d) Direct Care Services Corps Pilot Project. $500,000 in fiscal year 2024 is from the
general fund for a grant to the Metropolitan Center for Independent Living for
the direct care services corps pilot project.
Up to $25,000 may be used by the Metropolitan Center for Independent
Living for administrative costs. This is
a onetime appropriation and is available until June 30, 2026 2027.
(e) Research on Access to Long-Term Care Services and Financing. Any unexpended amount of the fiscal year 2023 appropriation referenced in Laws 2021, First Special Session chapter 7, article 17, section 16, estimated to be $300,000, is canceled. The amount canceled is appropriated in fiscal year 2024 for the same purpose.
(f) Native American Elder Coordinator. $441,000 in fiscal year 2024 and $441,000 in fiscal year 2025 are for the Native American elder coordinator position under Minnesota Statutes, section 256.975, subdivision 6.
(1) Of this amount, $8,154,000 in fiscal year 2024 is available until June 30, 2027.
(2) Of this amount, $1,071,000 in fiscal year 2025 is available until June 30, 2027.
(3) Of this amount, $19,000,000 in fiscal year 2024 is available until June 30, 2029.
(h) Base Level Adjustment. The general fund base is increased by $8,189,000 in fiscal year 2026 and increased by $8,093,000 in fiscal year 2027.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 38. Laws 2024, chapter 125, article 1, section 47, is amended to read:
Sec. 47. DIRECTION
TO COMMISSIONER; PEDIATRIC HOSPITAL-TO-HOME TRANSITION PILOT PROGRAM.
(a) The commissioner of human services must award a single competitive grant to a home care nursing provider to develop and implement, in coordination with the commissioner of health, Fairview Masonic Children's Hospital, Gillette Children's Specialty Healthcare, and Children's Minnesota of St. Paul and Minneapolis, a pilot program to expedite and facilitate pediatric hospital-to-home discharges for patients receiving services in this state under medical assistance, including under the community alternative care waiver, community access for disability inclusion waiver, and developmental disabilities waiver.
(b) Grant money awarded under this section must be used only to support the administrative, training, and auxiliary services necessary to reduce:
(1) delayed discharge days due to unavailability of home care nursing staffing to accommodate complex pediatric patients;
(2) avoidable rehospitalization days for pediatric patients;
(3) unnecessary emergency department utilization by pediatric patients following discharge;
(4) long-term nursing needs for pediatric patients; and
(5) the number of school days missed by pediatric patients.
(c) Grant money must not be used to supplant payment rates for services covered under Minnesota Statutes, chapter 256B.
(d) No later than December
15, 2026 2027, the commissioner must prepare a report summarizing
the impact of the pilot program that includes but is not limited to: (1) the number of delayed discharge days
eliminated; (2) the number of rehospitalization days eliminated; (3) the number
of unnecessary emergency department admissions eliminated; (4) the number of
missed school days eliminated; and (5) an estimate of the return on investment
of the pilot program.
(e) The commissioner must submit the report under paragraph (d) to the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services finance and policy.
Sec. 3. DIRECTION
TO COMMISSIONER; INDIAN HEALTH SERVICE ENCOUNTER RATE.
The commissioner of human
services must submit a state plan amendment to the Centers for Medicare and
Medicaid Services authorizing housing services as a new service category
eligible for reimbursement at the outpatient per-day rate approved by the Indian
Health Service. This reimbursement is
limited to services provided by facilities of the Indian Health Service and
facilities owned or operated by a Tribe or Tribal organization. For the purposes of this section,
"housing services" means housing stabilization services as described
in Minnesota Statutes, section 256B.051, subdivision 5, paragraphs (a) to (d).
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 40. REVISOR
INSTRUCTION.
In each section of
Minnesota Statutes referred to in column A, the revisor of statutes shall
delete the reference in column B and insert the reference in column C.
|
A |
B |
C |
|
Minnesota
Statutes, section 245A.03, subdivision 9 |
subdivision 7 |
section
245A.03, subdivision 7b |
|
Minnesota
Statutes, section 245A.11, subdivision 2a, paragraph (e) |
section
245A.03, subdivision 7 |
section
245A.03, subdivisions 7b to 7d |
|
Minnesota
Statutes, section 256B.092, subdivision 11, paragraph (c) |
section
245A.03, subdivision 7, paragraph (f) |
section
245A.03, subdivision 7d, paragraph (c) |
|
Minnesota
Statutes, section 256B.092, subdivision 11a, paragraph (b) |
section
245A.03, subdivision 7 |
section
245A.03, subdivisions 7b to 7d |
|
Minnesota
Statutes, section 256B.092, subdivision 11a, paragraph (c) |
section
245A.03, subdivision 7, paragraph (a) |
section
245A.03, subdivision 7c |
|
Minnesota
Statutes, section 256B.092, subdivision 13, paragraph (c) |
section
245A.03, subdivision 7, paragraph (a) |
section
245A.03, subdivision 7c |
|
Minnesota
Statutes, section 256B.49, subdivision 24, paragraph (c) |
section
245A.03, subdivision 7, paragraph (a) |
section
245A.03, subdivision 7c |
|
Minnesota
Statutes, section 256B.49, subdivision 29, paragraph (b) |
section
245A.03, subdivision 7 |
section
245A.03, subdivisions 7b to 7d |
|
Minnesota
Statutes, section 256B.49, subdivision 29, paragraph (c) |
section
245A.03, subdivision 7, paragraph (a) |
section
245A.03, subdivision 7b |
Sec. 41. REPEALER.
(a) Minnesota Statutes
2024, sections 245A.03, subdivision 7; 256B.051, subdivisions 1, 4, and 7; and
256B.5012, subdivisions 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15, and 16, are
repealed.
(b) Minnesota
Statutes 2025 Supplement, section 256B.051, subdivisions 2, 3, 5, 6, 6a, 6b, 8,
9, and 10, are repealed.
EFFECTIVE DATE. This
section is effective the day following final enactment.
ARTICLE 5
BEHAVIORAL HEALTH
Section 1. Minnesota Statutes 2025 Supplement, section 245.469, subdivision 1, is amended to read:
Subdivision 1. Availability of emergency services. (a) County boards must provide or contract for enough emergency services within the county to meet the needs of adults, children, and families in the county who are experiencing an emotional crisis or mental illness. Clients must not be charged for services provided and emergency service providers must not delay or deny the timely provision of emergency services to a client due to payor source for the services provided. Emergency service providers must meet the qualifications under section 256B.0624, subdivision 4. Emergency services must include assessment, crisis intervention, and appropriate case disposition. Emergency services must:
(1) promote the safety and emotional stability of each client;
(2) minimize further deterioration of each client;
(3) help each client to obtain ongoing care and treatment;
(4) prevent placement in settings that are more intensive, costly, or restrictive than necessary and appropriate to meet client needs; and
(5) provide support, psychoeducation, and referrals to each client's family members, service providers, and other third parties on behalf of the client in need of emergency services.
(b) If a county provides engagement services under section 253B.041, the county's emergency service providers must refer clients to engagement services when the client meets the criteria for engagement services.
Sec. 2. Minnesota Statutes 2025 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 142D.15 or 245.493; or
(4) mental health service providers.
(b) The following services are eligible for grants under this section:
(1) services to children with mental illness 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;
(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 under section 245.4908;
(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;
(18) providers to begin operations and meet program requirements when establishing a new children's mental health program. These may be start-up grants; and
(19) evidence-based interventions for youth and young adults at risk of developing or experiencing an early episode of bipolar disorder.
(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.
(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. 3. [245.4908]
EARLY CHILDHOOD MENTAL HEALTH CONSULTATION GRANTS.
Subdivision 1. Establishment. The commissioner of human services
must establish an early childhood mental health consultation grant program to
support the delivery of specialized mental health care to children five years
of age or younger. The care may include
providing mental health consultation to child care professionals for the
development of knowledge and skills to provide child care to young children
with significant mental health needs.
Subd. 2. Eligible
applicants; third-party reimbursement.
(a) An applicant is eligible for an early childhood mental health
consultation grant under this section if the applicant is:
(1) a mental health
clinic certified under section 245I.20;
(2) a community mental
health center under section 256B.0625, subdivision 5;
(3) an Indian health service facility or a facility owned and operated by a Tribe or Tribal organization operating under United States Code, title 25, section 5321; or
(4) a provider of
children's therapeutic services and supports, as defined in section 256B.0943.
(b) Grantees must obtain
all available third-party reimbursement sources as a condition of receiving a
grant.
Subd. 3. Allowable
grant activities and related expenses.
Grant money must be used to provide early childhood mental health
consultation, including but not limited to:
(1) identifying and
diagnosing mental health conditions for children five years of age or younger;
(2) training clinicians on evidence-based or evidence-informed clinical practices for children five years of age or younger and their caregivers, including train-the-trainer models to build capacity for grantees to train staff. The commissioner may recommend specific clinical practices, modalities, and trainings under this clause;
(3) providing direct consultation to child care providers in licensed child care centers, Head Start, and licensed family child care settings; and
(4) family psychoeducation and individual and group skills for families of children receiving early childhood mental health services.
Subd. 4. Data collection and outcome measurement. (a) The commissioner must consult with grantees to develop ongoing outcome measures for program capacity and performance.
(b) Upon the
commissioner's request, grantees must provide the data required under paragraph
(c) and may provide the data requested under paragraph (d) to the commissioner
for the purpose of evaluating the effectiveness of the grant program. The commissioner must not request data from
grantees more than twice per year.
(c)
Grantees must provide the following quantitative data to the commissioner:
(1) number of clients served;
(2) client demographics;
(3) payor information; and
(4) client-related
clinical and ancillary services, including hours of direct client services and
hours of consultation provided in child care settings.
(d) Grantees may collect
and provide qualitative data to the commissioner to demonstrate outcomes.
(e) By July 1, 2027, and
every July 1 thereafter, the commissioner must provide a report to the chairs
and ranking minority members of the legislative committees with jurisdiction
over behavioral health. The report must
include the number of grantees receiving grant money under this section, the
number of individuals served under this section, data from the evaluation
conducted under this subdivision, and information on the use of state and
federal money for the services provided under this section. This paragraph expires June 30, 2037.
EFFECTIVE DATE. This
section is effective July 1, 2026.
Sec. 4. Minnesota Statutes 2024, section 245D.04, subdivision 3, is amended to read:
Subd. 3. Protection-related rights. (a) A person's protection-related rights include the right to:
(1) have personal, financial, service, health, and medical information kept private, and be advised of disclosure of this information by the license holder;
(2) access records and recorded information about the person in accordance with applicable state and federal law, regulation, or rule;
(3) be free from maltreatment;
(4) be free from restraint, time out, seclusion, restrictive intervention, or other prohibited procedure identified in section 245D.06, subdivision 5, or successor provisions, except for: (i) emergency use of manual restraint to protect the person from imminent danger to self or others according to the requirements in section 245D.061 or successor provisions; or (ii) the use of safety interventions as part of a positive support transition plan under section 245D.06, subdivision 8, or successor provisions;
(5) receive services in a clean and safe environment when the license holder is the owner, lessor, or tenant of the service site;
(6) be treated with courtesy and respect and receive respectful treatment of the person's property;
(7) reasonable observance of cultural and ethnic practice and religion;
(8) be free from bias and harassment regarding race, gender, age, disability, spirituality, and sexual orientation;
(9) be informed of and use the license holder's grievance policy and procedures, including knowing how to contact persons responsible for addressing problems and to appeal under section 256.045;
(11) assert these rights personally, or have them asserted by the person's family, authorized representative, or legal representative, without retaliation;
(12) give or withhold written informed consent to participate in any research or experimental treatment;
(13) associate with other persons of the person's choice in the community;
(14) personal privacy, including the right to use the lock on the person's bedroom or unit door;
(15) engage in chosen activities; and
(16) access to the person's personal possessions at any time, including financial resources.
(b) For a person residing in a residential site licensed according to chapter 245A, or where the license holder is the owner, lessor, or tenant of the residential service site, protection-related rights also include the right to:
(1) have daily, private access to and use of a non-coin-operated telephone for local calls and long-distance calls made collect or paid for by the person;
(2) receive and send, without interference, uncensored, unopened mail or electronic correspondence or communication;
(3) have use of and free access to common areas in the residence and the freedom to come and go from the residence at will;
(4) choose the person's visitors and time of visits and have privacy for visits with the person's spouse, next of kin, legal counsel, religious adviser, or others, in accordance with section 363A.09 of the Human Rights Act, including privacy in the person's bedroom;
(5) have access to three nutritionally balanced meals and nutritious snacks between meals each day;
(6) have freedom and support to access food and potable water at any time;
(7) have the freedom to furnish and decorate the person's bedroom or living unit;
(8) a setting that is clean and free from accumulation of dirt, grease, garbage, peeling paint, mold, vermin, and insects;
(9) a setting that is free from hazards that threaten the person's health or safety; and
(10) a setting that meets the definition of a dwelling unit within a residential occupancy as defined in the State Fire Code.
(c) Except as provided under subdivision 4, restriction of a person's rights under paragraph (a), clauses (13) to (16), or paragraph (b) is allowed only if determined necessary to ensure the health, safety, and well-being of the person. Any restriction of those rights must be documented in the person's support plan or support plan addendum.
(1) the justification for the restriction based on an assessment of the person's vulnerability related to exercising the right without restriction;
(2) the objective measures set as conditions for ending the restriction;
(3) a schedule for reviewing the need for the restriction based on the conditions for ending the restriction to occur semiannually from the date of initial approval, at a minimum, or more frequently if requested by the person, the person's legal representative, if any, and case manager; and
(4) signed and dated approval for the restriction from the person, or the person's legal representative, if any. A restriction may be implemented only when the required approval has been obtained. Approval may be withdrawn at any time. If approval is withdrawn, the right must be immediately and fully restored.
Sec. 5. Minnesota Statutes 2024, section 245D.04, is amended by adding a subdivision to read:
Subd. 4. Rights of minor children. (a) For the purposes of this subdivision:
(1) "developmentally appropriate" means, for a person under 18 years of age, activities or items that are determined to be developmentally appropriate based on the development of a person's cognitive, emotional, physical, and behavioral capacities that are typical for the person's age or age group; and
(2) "reasonable and prudent parenting" means, for a person under 18 years of age, the standards characterized by careful and sensible parenting decisions that maintain a person's health and safety; cultural, religious, and Tribal values; and best interests while encouraging the person's emotional and developmental growth.
(b) A person under 18 years of age who is receiving services under this chapter has a right to:
(1) participate in activities or events that are generally accepted as suitable for minor children of the same chronological age or are developmentally appropriate; and
(2) receive reasonable and prudent parenting.
(c) Restriction of the
rights under subdivision 3, paragraph (a), clauses (13) to (16), or (b),
clauses (1) to (4), for a person under 18 years of age is allowed only if
determined necessary to ensure the health, safety, and well-being of the person
or pursuant to reasonable and prudent parenting standards.
Sec. 6. Minnesota Statutes 2024, section 245F.02, subdivision 17, is amended to read:
Subd. 17. Peer
recovery support services. "Peer
recovery support services" means services provided according to section 245F.08,
subdivision 3 254B.052.
Sec. 7. Minnesota Statutes 2025 Supplement, section 245F.08, subdivision 3, is amended to read:
Subd. 3. Peer
recovery support services. Peer
recovery support services must meet the requirements in section 245G.07,
subdivision 2a, paragraph (b), clause (2) 254B.052, and must be
provided by a person who is qualified according to the requirements in section 245F.15,
subdivision 7 245I.04, subdivisions 18 and 19.
Subd. 7. Recovery peer qualifications. Recovery peers must:
(1) meet the qualifications in section 245I.04, subdivision 18; and
(2) provide services
according to the scope of practice established in section 245I.04, subdivision
19, under the supervision of an alcohol and drug counselor.
Sec. 9. Minnesota Statutes 2024, section 245G.04, is amended by adding a subdivision to read:
Subd. 4. Tobacco
educational material. A
license holder must provide tobacco and nicotine educational material to a
client on the day of service initiation.
The license holder must use educational material approved by the
commissioner that contains information on:
(1) risks associated
with use of tobacco or nicotine products;
(2) types of tobacco or
nicotine products, including differentiating between commercial versus
traditional or sacred tobacco;
(3) treatment options,
including the use of medication for tobacco use disorder; and
(4) benefits of
receiving treatment for tobacco or nicotine use while attending substance use
disorder treatment for another primary substance.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 10. Minnesota Statutes 2024, section 245G.06, subdivision 4, is amended to read:
Subd. 4. Service discharge summary. (a) An alcohol and drug counselor 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, excluding weekends and holidays. 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 4, and include the following information:
(1) the client's issues, strengths, and needs while participating in treatment, including services provided;
(2) the client's progress toward achieving each goal identified in the individual treatment plan;
(3) a risk rating and description for each of the ASAM six dimensions;
(4) the reasons for and circumstances of service termination. If a program discharges a client at staff request, the reason for discharge and the procedure followed for the decision to discharge must be documented and comply with the requirements in section 245G.14, subdivision 3, clause (3);
(5) the client's living arrangements at service termination;
(7) service termination diagnosis.
Sec. 11. Minnesota Statutes 2025 Supplement, section 245G.09, subdivision 3, is amended to read:
Subd. 3. Contents. (a) Client records must contain the following:
(1) documentation that the client was given:
(i) information on client rights and responsibilities and grievance procedures on the day of service initiation;
(ii) information on tuberculosis and HIV within 72 hours of service initiation;
(iii) an orientation to the program abuse prevention plan required under section 245A.65, subdivision 2, paragraph (a), clause (4), within 24 hours of admission or, for clients who would benefit from a later orientation, 72 hours; and
(iv) opioid educational material according to section 245G.04, subdivision 3, and tobacco educational material according to section 245G.04, subdivision 4, on the day of service initiation;
(2) an initial services plan completed according to section 245G.04;
(3) a comprehensive assessment completed according to section 245G.05;
(4) an individual abuse prevention plan according to sections 245A.65, subdivision 2, and 626.557, subdivision 14, when applicable;
(5) an individual treatment plan according to section 245G.06, subdivisions 1 and 1a;
(6) documentation of treatment services, significant events, appointments, concerns, and treatment plan reviews according to section 245G.06, subdivisions 2a, 2b, 3, and 3a; and
(7) a summary at the time of service termination according to section 245G.06, subdivision 4.
(b) For a client that transfers to another of the license holder's licensed treatment locations, the license holder is not required to complete new documents or orientation for the client, except that the client must receive an orientation to the new location's grievance procedure, program abuse prevention plan, and maltreatment of minor and vulnerable adults reporting procedures.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 12. Minnesota Statutes 2025 Supplement, section 245G.11, subdivision 7, is amended to read:
Subd. 7. Treatment coordination provider qualifications. (a) Treatment coordination must be provided by qualified staff. An individual is qualified to provide treatment coordination if the individual meets the qualifications of an alcohol and drug counselor under subdivision 5 or if the individual:
(1) is skilled in the process of identifying and assessing a wide range of client needs;
(3) has completed 15 hours of education or training on substance use disorder, co-occurring conditions, and care coordination for individuals with substance use disorder or co-occurring conditions that is consistent with national evidence-based standards;
(4) meets one of the following criteria:
(i) has a bachelor's
degree in one of the behavioral sciences or related fields;
(ii) (i) has
a high school diploma or equivalent; or
(iii) (ii) is
a mental health practitioner who meets the qualifications under section
245I.04, subdivision 4; and
(5) either has at least 1,000 hours of supervised experience working with individuals with substance use disorder or co-occurring conditions or receives treatment supervision at least once per week until obtaining 1,000 hours of supervised experience working with individuals with substance use disorder or co-occurring conditions.
(b) A treatment coordinator must receive the following levels of supervision from an alcohol and drug counselor or a mental health professional whose scope of practice includes substance use disorder treatment and assessments:
(1) for a treatment coordinator that has not obtained 1,000 hours of supervised experience under paragraph (a), clause (5), at least one hour of supervision per week; or
(2) for a treatment coordinator that has obtained at least 1,000 hours of supervised experience under paragraph (a), clause (5), at least one hour of supervision per month.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 13. Minnesota Statutes 2024, section 245G.11, subdivision 8, is amended to read:
Subd. 8. Recovery peer qualifications. A recovery peer must:
(1) meet the qualifications in section 245I.04, subdivision 18; and
(2) provide services
according to the scope of practice established in section 245I.04, subdivision
19, under the supervision of an alcohol and drug counselor.
Sec. 14. Minnesota Statutes 2025 Supplement, section 245I.04, subdivision 17, is amended to read:
Subd. 17. Mental
health behavioral aide scope of practice.
While under the treatment supervision of a mental health
professional, a mental health behavioral aide may practice psychosocial skills
with a child client according to the child's treatment plan and individual
behavior plan that a mental health professional, clinical trainee, or
behavioral health practitioner has previously taught to the child.
Sec. 15. Minnesota Statutes 2024, section 245I.04, is amended by adding a subdivision to read:
Subd. 20. Limitation
on affiliation across service lines.
(a) A mental health professional must not simultaneously serve in
a clinical, supervisory, or designated role for more than ten distinct,
licensed provider organizations or service lines that deliver services in the
medical assistance program. A mental
health professional
must not provide clinical or
administrative supervision to more than 20 direct care or clinical staff across
all affiliated provider organizations and service lines, unless an exception is
granted by the commissioner under paragraph (c).
(b) The commissioner
must establish criteria and a standardized process for evaluating exception
requests under paragraph (c).
(c) Upon written
request, the commissioner may grant an exception if the requester demonstrates
that:
(1) the mental health professional can effectively meet all clinical, supervisory, and administrative responsibilities across affiliated programs;
(2) the oversight of client care will not be compromised; and
(3) the proposed arrangement complies with all applicable supervision, documentation, and service delivery requirements.
(d) In determining whether to grant an exception under paragraph (c), the commissioner must consider:
(1) the geographic
distribution of services;
(2) the complexity and acuity of client needs;
(3) the mental health professional's other responsibilities, including direct service provision; and
(4) whether adequate supervision can be maintained in compliance with program standards.
(e) The commissioner must rescind approval of an exception granted under paragraph (c) if the requester fails to comply with applicable program standards or with the terms of the exception.
(f) A mental health
professional determined to be in violation of this subdivision may be subject
to corrective action, licensing sanctions, or administrative penalties in
accordance with chapter 245A and other applicable law.
Sec. 16. Minnesota Statutes 2024, section 245I.08, subdivision 4, is amended to read:
Subd. 4. Progress notes. A license holder must use a progress note to document each occurrence of a mental health service that a staff person provides to a client. A progress note must include the following:
(1) the type of service;
(2) the date of service;
(3) the start and stop time of the service unless the license holder is licensed as a residential program;
(4) the location of the service;
(5) the scope of the service, including: (i) the targeted goal and objective; (ii) the intervention that the staff person provided to the client and the methods that the staff person used; (iii) the client's response to the intervention; and (iv) the staff person's plan to take future actions, including changes in treatment that the staff person will implement if the intervention was ineffective;
(7) the dated signature and credentials of the treatment supervisor;
(7) (8) the
mental health provider travel documentation required by section 256B.0625, if
applicable; and
(8) (9) significant
observations by the staff person, if applicable, including: (i) the client's current risk factors; (ii)
emergency interventions by staff persons; (iii) consultations with or referrals
to other professionals, family, or significant others; and (iv) changes in the
client's mental or physical symptoms.
Sec. 17. Minnesota Statutes 2024, section 245I.10, subdivision 6, is amended to read:
Subd. 6. Standard diagnostic assessment; required elements. (a) Only a mental health professional or a clinical trainee may complete a standard diagnostic assessment of a client. A standard diagnostic assessment of a client must include a face-to-face interview with a client and a written evaluation of the client. The assessor must complete a client's standard diagnostic assessment within the client's cultural context. An alcohol and drug counselor may gather and document the information in paragraphs (b) and (c) when completing a comprehensive assessment according to section 245G.05.
(b) When completing a standard diagnostic assessment of a client, the assessor must gather and document information about the client's current life situation, including the following information:
(1) the client's age;
(2) the client's current living situation, including the client's housing status and household members;
(3) the status of the client's basic needs;
(4) the client's education level and employment status;
(5) the client's current medications;
(6) any immediate risks to the client's health and safety, including withdrawal symptoms, medical conditions, and behavioral and emotional symptoms;
(7) the client's perceptions of the client's condition;
(8) the client's description of the client's symptoms, including the reason for the client's referral;
(9) the client's history of mental health and substance use disorder treatment, including but not limited to treatment for tobacco or nicotine use;
(10) cultural influences on the client; and
(11) substance use history, if applicable, including:
(i) amounts and types of
substances, including but not limited to tobacco and nicotine products;
frequency and duration,; route of administration,; periods
of abstinence,; and circumstances of relapse; and
(ii) the impact to functioning when under the influence of substances, including legal interventions.
(1) the client's relationship with the client's family and other significant personal relationships, including the client's evaluation of the quality of each relationship;
(2) the client's strengths and resources, including the extent and quality of the client's social networks;
(3) important developmental incidents in the client's life;
(4) maltreatment, trauma, potential brain injuries, and abuse that the client has suffered;
(5) the client's history of or exposure to alcohol and drug usage and treatment; and
(6) the client's health history and the client's family health history, including the client's physical, chemical, and mental health history.
(d) When completing a standard diagnostic assessment of a client, an assessor must use a recognized diagnostic framework.
(1) When completing a standard diagnostic assessment of a client who is five years of age or younger, the assessor must use the current edition of the DC: 0-5 Diagnostic Classification of Mental Health and Development Disorders of Infancy and Early Childhood published by Zero to Three.
(2) When completing a standard diagnostic assessment of a client who is six years of age or older, the assessor must use the current edition of the Diagnostic and Statistical Manual of Mental Disorders published by the American Psychiatric Association.
(3) When completing a standard diagnostic assessment of a client who is 18 years of age or older, an assessor must use either (i) the CAGE-AID Questionnaire or (ii) the criteria in the most recent edition of the Diagnostic and Statistical Manual of Mental Disorders published by the American Psychiatric Association to screen and assess the client for a substance use disorder, including but not limited to tobacco use disorder.
(e) When completing a standard diagnostic assessment of a client, the assessor must include and document the following components of the assessment:
(1) the client's mental status examination;
(2) the client's baseline measurements; symptoms; behavior; skills; abilities; resources; vulnerabilities; safety needs, including client information that supports the assessor's findings after applying a recognized diagnostic framework from paragraph (d); and any differential diagnosis of the client; and
(3) an explanation of: (i) how the assessor diagnosed the client using the information from the client's interview, assessment, psychological testing, and collateral information about the client; (ii) the client's needs; (iii) the client's risk factors; (iv) the client's strengths; and (v) the client's responsivity factors.
(f) When completing a standard diagnostic assessment of a client, the assessor must consult the client and the client's family about which services that the client and the family prefer to treat the client. The assessor must make referrals for the client as to services required by law.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 18. Minnesota Statutes 2025 Supplement, section 245I.23, subdivision 7, is amended to read:
Subd. 7. Intensive residential treatment services assessment and treatment planning. (a) Within 12 hours of a client's admission, the license holder must evaluate and document the client's immediate needs, including the client's:
(1) health and safety, including the client's need for crisis assistance;
(2) responsibilities for children, family and other natural supports, and employers; and
(3) housing and legal issues.
(b) Within 24 hours of the client's admission, the license holder must complete an initial treatment plan for the client. The license holder must:
(1) base the client's initial treatment plan on the client's referral information and an assessment of the client's immediate needs;
(2) consider crisis assistance strategies that have been effective for the client in the past;
(3) identify the client's initial treatment goals, measurable treatment objectives, and specific interventions that the license holder will use to help the client engage in treatment;
(4) identify the participants involved in the client's treatment planning. The client must be a participant; and
(5) ensure that a treatment supervisor approves of the client's initial treatment plan if a behavioral health practitioner or clinical trainee completes the client's treatment plan, notwithstanding section 245I.08, subdivision 3.
(c) According to section 245A.65, subdivision 2, paragraph (b), the license holder must complete an individual abuse prevention plan as part of a client's initial treatment plan.
(d) Within five days of the client's admission and again within 60 days after the client's admission, the license holder must complete a level of care assessment of the client. If the license holder determines that a client does not need a medically monitored level of service, a treatment supervisor must document how the client's admission to and continued services in intensive residential treatment services are medically necessary for the client.
(e) Within ten days of a client's admission, excluding weekends and holidays, the license holder must complete or review and update the client's standard diagnostic assessment.
(f) Within ten days of a client's admission, the license holder must complete the client's individual treatment plan, notwithstanding section 245I.10, subdivision 8. Within 40 days after the client's admission and again within 70 days after the client's admission, the license holder must update the client's individual treatment plan. The license holder must focus the client's treatment planning on preparing the client for a successful transition from intensive residential treatment services to another setting. In addition to the required elements of an individual treatment plan under section 245I.10, subdivision 8, the license holder must identify the following information in the client's individual treatment plan: (1) the client's referrals and resources for the client's health and safety; and (2) the staff
(g) Within 30 days of the client's admission, the license holder must complete a functional assessment of the client. Within 60 days after the client's admission, the license holder must update the client's functional assessment to include any changes in the client's functioning and symptoms.
(h) For a client with a current substance use disorder diagnosis and for a client whose substance use disorder screening in the client's standard diagnostic assessment indicates the possibility that the client has a substance use disorder, the license holder must complete a written assessment of the client's substance use within 30 days of the client's admission. In the substance use assessment, the license holder must: (1) evaluate the client's history of substance use, relapses, and hospitalizations related to substance use; (2) assess the effects of the client's substance use on the client's relationships including with family member and others; (3) identify financial problems, health issues, housing instability, and unemployment; (4) assess the client's legal problems, past and pending incarceration, violence, and victimization; and (5) evaluate the client's suicide attempts, noncompliance with taking prescribed medications, and noncompliance with psychosocial treatment.
(i) On a weekly basis, a mental health professional or certified rehabilitation specialist must review each client's treatment plan and individual abuse prevention plan. The license holder must document in the client's file each weekly review of the client's treatment plan and individual abuse prevention plan.
Sec. 19. Minnesota Statutes 2025 Supplement, section 254A.03, subdivision 3, is amended to read:
Subd. 3. Rules for substance use disorder care. (a) An eligible vendor of comprehensive assessments under section 254B.0501 may determine the appropriate level of substance use disorder treatment for a recipient of public assistance. The process for determining an individual's financial eligibility for the behavioral health fund or determining an individual's enrollment in or eligibility for a publicly subsidized health plan is not affected by the individual's choice to access a comprehensive assessment for placement.
(b) The commissioner shall
develop and implement a utilization review process for publicly funded
treatment placements to monitor and review the clinical appropriateness and
timeliness of all publicly funded placements in treatment.
(c) (b) If a
screen result is positive for alcohol or substance misuse, a brief screening
for alcohol or substance use disorder that is provided to a recipient of public
assistance within a primary care clinic, hospital, or other medical setting or
school setting establishes medical necessity and approval for an initial set of
substance use disorder services identified in section 254B.0505. The initial set of services approved for a
recipient whose screen result is positive may include any combination of up to
four hours of individual or group substance use disorder treatment, two hours
of substance use disorder treatment coordination, or two hours of substance use
disorder peer support services provided by a qualified individual according to
chapter 245G. A recipient must obtain an
assessment pursuant to paragraph (a) to be approved for additional treatment
services. A comprehensive assessment
pursuant to section 245G.05 is not required to receive the initial set of
services allowed under this subdivision.
A positive screen result establishes eligibility for the initial set of
services allowed under this subdivision.
(d) (c) An
individual may choose to obtain a comprehensive assessment as provided in
section 245G.05. Individuals obtaining a
comprehensive assessment may access any enrolled provider that is licensed to
provide the level of service authorized pursuant to section 254A.19,
subdivision 3. If the individual is
enrolled in a prepaid health plan, the individual must comply with any provider
network requirements or limitations.
Subd. 1a. Client eligibility. (a) Persons eligible for benefits under Code of Federal Regulations, title 25, part 20, who meet the income standards of section 256B.056, subdivision 4, and are not enrolled in medical assistance, are entitled to behavioral health fund services. State money appropriated for this paragraph must be placed in a separate account established for this purpose.
(b) Persons with dependent children who are determined to be in need of substance use disorder treatment pursuant to an assessment under section 260E.20, subdivision 1, or in need of chemical dependency treatment pursuant to a case plan under section 260C.201, subdivision 6, or 260C.212, shall be assisted by the commissioner to access needed treatment services. Treatment services must be appropriate for the individual or family, which may include long-term care treatment or treatment in a facility that allows the dependent children to stay in the treatment facility. The county shall pay for out-of-home placement costs, if applicable.
(c) Notwithstanding paragraph (a), any person enrolled in medical assistance or MinnesotaCare is eligible for room and board services under section 254B.0505, subdivision 1, clause (9).
(d) A client is eligible to have substance use disorder treatment paid for with funds from the behavioral health fund when the client:
(1) is eligible for MFIP as determined under chapter 142G;
(2) is eligible for medical assistance as determined under Minnesota Rules, parts 9505.0010 to 9505.0140;
(3) is eligible for general assistance, general assistance medical care, or work readiness as determined under Minnesota Rules, parts 9500.1200 to 9500.1272; or
(4) has income that is within current household size and income guidelines for entitled persons, as defined in this subdivision and subdivision 7.
(e) Clients who meet the financial eligibility requirement in paragraph (a) and who have a third-party payment source are eligible for the behavioral health fund if the third-party payment source pays less than 100 percent of the cost of treatment services for eligible clients.
(f) A client is ineligible to have substance use disorder treatment services paid for with behavioral health fund money if the client:
(1) has an income that exceeds current household size and income guidelines for entitled persons as defined in this subdivision and subdivision 7; or
(2) has an available third-party payment source that will pay the total cost of the client's treatment.
(g) A client who is disenrolled from a state prepaid health plan during a treatment episode is eligible for continued treatment service that is paid for by the behavioral health fund until the treatment episode is completed or the client is re-enrolled in a state prepaid health plan if the client:
(1) continues to be enrolled in MinnesotaCare, medical assistance, or general assistance medical care; or
(2) is eligible according to paragraphs (a) and (b) and is determined eligible by the commissioner under section 254B.04.
(i) Notwithstanding any laws to the contrary, persons enrolled in MinnesotaCare or medical assistance are eligible for room and board services when provided through intensive residential treatment services and residential crisis services under section 256B.0632 and chapter 245I.
(j) A person is eligible for one 60-consecutive-calendar-day period per year. A person may submit a request for additional eligibility to the commissioner. A person denied additional eligibility under this paragraph may request a state agency hearing under section 256.045.
Sec. 21. Minnesota Statutes 2025 Supplement, section 254B.0501, subdivision 6, is amended to read:
Subd. 6. Recovery community organizations. (a) A recovery community organization that meets the requirements of clauses (1) to (15), complies with the training requirements in section 254B.052, subdivision 4, and meets certification requirements of the Minnesota Alliance of Recovery Community Organizations or another Minnesota statewide recovery organization identified by the commissioner is an eligible vendor of peer recovery support services. If the commissioner does not identify another statewide recovery organization, or the Minnesota Alliance of Recovery Community Organizations or the statewide recovery organization identified by the commissioner is not reasonably positioned to certify vendors, the commissioner must determine the eligibility of a vendor of peer recovery support services. A Minnesota statewide recovery organization identified by the commissioner must update recovery community organization applicants for certification on the status of the application within 45 days of receipt. If the approved statewide recovery organization denies an application, it must provide a written explanation for the denial to the recovery community organization. Eligible vendors under this paragraph must:
(1) be nonprofit organizations under section 501(c)(3) of the Internal Revenue Code, be free from conflicting self-interests, and be autonomous in decision-making, program development, peer recovery support services provided, and advocacy efforts for the purpose of supporting the recovery community organization's mission;
(2) be led and governed by individuals in the recovery community, with more than 50 percent of the board of directors or advisory board members self-identifying as people in personal recovery from substance use disorders;
(3) have a mission statement and conduct corresponding activities indicating that the organization's primary purpose is to support recovery from substance use disorder;
(4) demonstrate ongoing community engagement with the identified primary region and population served by the organization, including individuals in recovery and their families, friends, and recovery allies;
(5) be accountable to the recovery community through documented priority-setting and participatory decision‑making processes that promote the engagement of, and consultation with, people in recovery and their families, friends, and recovery allies;
(6) provide nonclinical peer recovery support services, including but not limited to recovery support groups, recovery coaching, telephone recovery support, skill-building, and harm-reduction activities, and provide recovery public education and advocacy;
(7) have written policies that allow for and support opportunities for all paths toward recovery and refrain from excluding anyone based on their chosen recovery path, which may include but is not limited to harm reduction paths, faith-based paths, and nonfaith-based paths;
(9) use recovery-friendly language in all media and written materials that is supportive of and promotes recovery across diverse geographical and cultural contexts and reduces stigma;
(10) establish and maintain a publicly available recovery community organization code of ethics and grievance policy and procedures;
(11) not classify or treat any recovery peer hired on or after July 1, 2024, as an independent contractor;
(12) not classify or treat any recovery peer as an independent contractor on or after January 1, 2025;
(13) provide an orientation for recovery peers that includes an overview of the consumer advocacy services provided by the Ombudsman for Mental Health and Developmental Disabilities and other relevant advocacy services;
(14) provide notice to peer recovery support services participants that includes the following statement: "If you have a complaint about the provider or the person providing your peer recovery support services, you may contact the Minnesota Alliance of Recovery Community Organizations. You may also contact the Office of Ombudsman for Mental Health and Developmental Disabilities." The statement must also include:
(i) the telephone number, website address, email address, and mailing address of the Minnesota Alliance of Recovery Community Organizations and the Office of Ombudsman for Mental Health and Developmental Disabilities;
(ii) the recovery community organization's name, address, email, telephone number, and name or title of the person at the recovery community organization to whom problems or complaints may be directed; and
(iii) a statement that the recovery community organization will not retaliate against a peer recovery support services participant because of a complaint; and
(15) comply with the requirements of section 245A.04, subdivision 15a.
(b) A recovery community organization approved by the commissioner before June 30, 2023, must have begun the application process as required by an approved certifying or accrediting entity and have begun the process to meet the requirements under paragraph (a) by September 1, 2024, in order to be considered as an eligible vendor of peer recovery support services.
(c) A recovery community organization that is aggrieved by a certification determination and believes it meets the requirements under paragraph (a) may appeal the determination under section 256.045, subdivision 3, paragraph (a), clause (14), for reconsideration as an eligible vendor. If the human services judge determines that the recovery community organization meets the requirements under paragraph (a), the recovery community organization is an eligible vendor of peer recovery support services for up to two years from the date of the determination. After two years, the recovery community organization must apply for certification under paragraph (a) to continue to be an eligible vendor of peer recovery support services.
(d) All recovery community
organizations must be certified by an entity listed in paragraph (a) by June
30, 2027 2026.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Subd. 8. Peer
recovery support services Utilization review requirements. Eligible vendors of peer recovery
support services in subdivision 1, clauses (1) to (10), must:
(1) submit to a
review by the commissioner of up to ten percent of all medical assistance and
behavioral health fund claims to determine the medical necessity of peer
recovery support services for entities billing for peer recovery support
services individually and not receiving a daily rate; and.
(2) limit an individual
client to 14 hours per week for peer recovery support services from an
individual provider of peer recovery support services.
Sec. 23. Minnesota Statutes 2025 Supplement, section 254B.0505, is amended by adding a subdivision to read:
Subd. 9. Withdrawal
management services. For
withdrawal management services provided by an eligible vendor that is licensed
under chapter 245F as a clinically managed withdrawal management program or as
a medically monitored withdrawal management program, utilization review, as
defined in section 62M.02, is prohibited until five calendar days after the
date of service initiation.
EFFECTIVE DATE. This
section is effective January 1, 2027, or upon federal approval, whichever is
later.
Sec. 24. Minnesota Statutes 2025 Supplement, section 254B.0505, is amended by adding a subdivision to read:
Subd. 10. Monetary
recovery. Reimbursement for
services authorized under this chapter that are not provided in accordance with
this chapter are subject to monetary recovery under section 256B.064 as money
improperly paid.
Sec. 25. Minnesota Statutes 2024, section 254B.052, subdivision 1, is amended to read:
Subdivision 1. Peer recovery support services; service requirements. (a) Peer recovery support services are face-to-face interactions between a recovery peer and a client, on a one-on-one basis, in which specific goals identified in an individual recovery plan, treatment plan, or stabilization plan are discussed and addressed. Peer recovery support services are provided to promote a client's recovery goals, self-sufficiency, self-advocacy, and development of natural supports and to support maintenance of a client's recovery.
(b) Peer recovery support
services must be provided according to (1) an individual recovery plan
if provided by a recovery community organization or county, (2) a
treatment plan if provided in either a substance use disorder treatment
program under chapter 245G, or a Tribally licensed substance use
disorder treatment program, or (3) a stabilization plan if provided by a
withdrawal management program under chapter 245F.
(c) A client receiving peer recovery support services must participate in the services voluntarily. Any program that incorporates peer recovery support services must provide written notice to the client that peer recovery support services will be provided.
(d) Peer recovery support
services may not be provided to a client residing with or employed by a
recovery peer from whom they receive the client receives
services.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Subd. 7. Billing
limits. Eligible vendors of
peer recovery support services must limit an individual client to 14 hours per
week for peer recovery support services from an individual provider of peer
recovery support services.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 27. Minnesota Statutes 2024, section 256B.0624, subdivision 6b, is amended to read:
Subd. 6b. Crisis intervention services. (a) If the crisis assessment determines mobile crisis intervention services are needed, the crisis intervention services must be provided promptly. As opportunity presents during the intervention, at least two members of the mobile crisis intervention team must confer directly or by telephone about the crisis assessment, crisis treatment plan, and actions taken and needed. At least one of the team members must be providing face-to-face crisis intervention services. If providing crisis intervention services, a clinical trainee or mental health practitioner must seek treatment supervision as required in subdivision 9.
(b) If a provider delivers crisis intervention services while the recipient is absent, the provider must document the reason for delivering services while the recipient is absent.
(c) The mobile crisis intervention team must develop a crisis treatment plan according to subdivision 11.
(d) The mobile crisis intervention team must document which crisis treatment plan goals and objectives have been met and when no further crisis intervention services are required.
(e) If the recipient's mental health crisis is stabilized, but the recipient needs a referral to other services, the team must provide referrals to these services. If the recipient has a case manager, planning for other services must be coordinated with the case manager. If the recipient is unable to follow up on the referral, the team must link the recipient to the service and follow up to ensure the recipient is receiving the service.
(f) If the recipient's
mental health crisis is stabilized and the recipient does not have an advance
directive, the case manager or crisis team shall offer to work with the
recipient to develop one.
EFFECTIVE DATE. This
section is effective upon federal approval.
Sec. 28. Minnesota Statutes 2024, 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.;
and
(5) for
a recipient who is 18 years of age or older, the case manager or crisis team
must offer to work with the recipient to develop a health care directive, as
defined in section 145C.01, subdivision 5a, or a declaration of preferences
under section 253B.03, subdivision 6d, if the recipient's mental health crisis
is stabilized and the recipient does not have a directive or declaration.
(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
must establish a statewide per diem rate for crisis stabilization
services provided under this paragraph to medical assistance enrollees. The rate for a provider shall must
not exceed the rate charged by that provider for the same service to other
payers. Payment shall must
not be made to more than one entity for each individual for services provided
under this paragraph on a given day. The
commissioner shall must set rates prospectively for the annual
rate period. The commissioner shall
must require providers to submit annual cost reports on a uniform cost
reporting form and shall must use submitted cost reports to
inform the rate-setting process. The
commissioner shall must recalculate the statewide per diem every
year.
EFFECTIVE DATE. This
section is effective upon federal approval.
Sec. 29. Minnesota Statutes 2025 Supplement, section 256B.0625, subdivision 5m, is amended to read:
Subd. 5m. Certified community behavioral health clinic services. (a) Medical assistance covers services provided by a not-for-profit certified community behavioral health clinic (CCBHC) that meets the requirements of section 245.735, subdivision 3.
(b) The commissioner shall
must reimburse CCBHCs on a per-day basis for each day that an eligible
service is delivered using the CCBHC daily bundled rate system for medical
assistance payments as described in paragraph (c). The commissioner shall must
include a quality incentive payment in the CCBHC daily bundled rate system as
described in paragraph (e). There is no
county share for medical assistance services when reimbursed through the CCBHC
daily bundled rate system.
(c) The commissioner shall
must ensure that the CCBHC daily bundled rate system for CCBHC payments
under medical assistance meets the following requirements:
(1) the CCBHC daily bundled
rate shall must be a provider-specific rate calculated for each
CCBHC, based on the daily cost of providing CCBHC services and the total annual
allowable CCBHC costs divided by the total annual number of CCBHC visits. For calculating the payment rate, total
annual visits include visits covered by medical assistance and visits not
covered by medical assistance. Allowable
costs include but are not limited to the salaries and benefits of medical
assistance providers; the cost of CCBHC services provided under section
245.735, subdivision 3, paragraph (a), clauses (6) and (7); and other costs
such as insurance or supplies needed to provide CCBHC services;
(2) payment shall must
be limited to one payment per day per medical assistance enrollee when an
eligible CCBHC service is provided. A
CCBHC visit is eligible for reimbursement if at least one of the CCBHC services
listed under section 245.735, subdivision 3, paragraph (a), clause (6), is
furnished to a medical assistance enrollee by a health care practitioner or
licensed agency employed by or under contract with a CCBHC;
(3) initial CCBHC daily
bundled rates for newly certified CCBHCs under section 245.735, subdivision 3, shall
must be established by the commissioner using a provider-specific rate
based on the newly certified CCBHC's audited historical cost report data
adjusted for the expected cost of delivering CCBHC services. Estimates are subject to review by the
commissioner and must include the expected cost of providing the full scope of
CCBHC services and the expected number of visits for the rate period;
(5) the commissioner shall
must provide for a 60-day appeals process after notice of the results of
the rebasing;
(6) an entity that receives a CCBHC daily bundled rate that overlaps with another federal Medicaid rate is not eligible for the CCBHC rate methodology;
(7) payments for CCBHC
services to individuals enrolled in managed care shall must be
coordinated with the state's phase-out of CCBHC wrap payments. The commissioner shall must
complete the phase-out of CCBHC wrap payments within 60 days of the
implementation of the CCBHC daily bundled rate system in the Medicaid
Management Information System (MMIS), for CCBHCs reimbursed under this chapter,
with a final settlement of payments due made payable to CCBHCs no later than 18
months thereafter;
(8) the CCBHC daily bundled
rate for each CCBHC shall must be updated by trending each
provider-specific rate by the Medicare Economic Index for primary care services. This update shall must occur
each year in between rebasing periods determined by the commissioner in
accordance with clause (4). CCBHCs must
provide data on costs and visits to the state annually using the CCBHC cost
report established by the commissioner; and
(9) a CCBHC may request a
rate adjustment for changes in the CCBHC's scope of services when such changes
are expected to result in an adjustment to the CCBHC payment rate by 2.5
percent or more. The CCBHC must provide
the commissioner with information regarding the changes in the scope of
services, including the estimated cost of providing the new or modified
services and any projected increase or decrease in the number of visits
resulting from the change. Estimated
costs are subject to review by the commissioner. Rate adjustments for changes in scope shall
must occur no more than once per year in between rebasing periods per
CCBHC and are effective on the date of the annual CCBHC rate update.
(d) Managed care plans and
county-based purchasing plans shall must reimburse CCBHC
providers at the CCBHC daily bundled rate.
The commissioner shall must monitor the effect of this
requirement on the rate of access to the services delivered by CCBHC providers. If, for any contract year, federal approval
is not received for this paragraph, the commissioner must adjust the capitation
rates paid to managed care plans and county-based purchasing plans for that
contract year to reflect the removal of this provision. Contracts between managed care plans and
county-based purchasing plans and providers to whom this paragraph applies must
allow recovery of payments from those providers if capitation rates are
adjusted in accordance with this paragraph.
Payment recoveries must not exceed the amount equal to any increase in
rates that results from this provision. This
paragraph expires if federal approval is not received for this paragraph at any
time.
(e) The commissioner shall
must implement a quality incentive payment program for CCBHCs that meets
the following requirements:
(1) a CCBHC shall must
receive a quality incentive payment upon meeting specific numeric thresholds
for performance metrics established by the commissioner, in addition to
payments for which the CCBHC is eligible under the CCBHC daily bundled rate
system described in paragraph (c);
(2) a CCBHC must be certified and enrolled as a CCBHC for the entire measurement year to be eligible for incentive payments;
(3) each CCBHC shall
must receive written notice of the criteria that must be met in order to
receive quality incentive payments at least 90 days prior to the measurement
year; and
(f) All claims to managed
care plans for CCBHC services as provided under this section shall must
be submitted directly to, and paid by, the commissioner on the dates specified
no later than January 1 of the following calendar year, if:
(1) one or more managed care plans does not comply with the federal requirement for payment of clean claims to CCBHCs, as defined in Code of Federal Regulations, title 42, section 447.45(b), and the managed care plan does not resolve the payment issue within 30 days of noncompliance; and
(2) the total amount of clean claims not paid in accordance with federal requirements by one or more managed care plans is 50 percent of, or greater than, the total CCBHC claims eligible for payment by managed care plans.
If the conditions in this paragraph are met
between January 1 and June 30 of a calendar year, claims shall must
be submitted to and paid by the commissioner beginning on January 1 of the
following year. If the conditions in
this paragraph are met between July 1 and December 31 of a calendar year,
claims shall must be submitted to and paid by the commissioner
beginning on July 1 of the following year.
(g) Peer services provided by a CCBHC certified under section 245.735 are a covered service under medical assistance when a licensed mental health professional or alcohol and drug counselor determines that peer services are medically necessary. Eligibility under this subdivision for peer services provided by a CCBHC supersede eligibility standards under sections 256B.0615, 256B.0616, and 245G.07, subdivision 2a, paragraph (b), clause (2).
Sec. 30. Minnesota Statutes 2024, section 256B.0625, subdivision 47, is amended to read:
Subd. 47. Treatment
foster care Children's intensive behavioral health services. Effective July 1, 2011, and subject to
federal approval, Medical assistance covers treatment foster care children's
intensive behavioral health services according to section 256B.0946.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 31. Minnesota Statutes 2024, section 256B.0759, subdivision 3, is amended to read:
Subd. 3. Provider
standards. (a) The commissioner
must establish requirements for participating providers that are consistent
with the federal requirements of the demonstration project. The following programs that receive
payment for substance use disorder treatment services under section 256B.0625
must enroll as a Minnesota Health Care Programs provider, meet the requirements
established by the commissioner, and certify that the program meets the
applicable American Society of Addiction Medicine (ASAM) levels of care
according to section 254B.19:
(1) nonresidential substance use disorder treatment programs and residential treatment programs licensed under chapter 245G as licensed substance use disorder treatment facilities;
(2) withdrawal management programs licensed under chapter 245F; and
(3) out-of-state residential substance use disorder treatment programs.
Programs that do not meet the requirements
of this paragraph are ineligible for payment for services provided under
section 256B.0625.
(b) A
participating residential provider must obtain applicable licensure under
chapter 245F or 245G or other applicable standards for the services provided
and must:
(1) deliver services in
accordance with standards published by the commissioner pursuant to paragraph
(d);
(2) maintain formal
patient referral arrangements with providers delivering step-up or step-down
levels of care in accordance with ASAM standards; and
(3) offer substance use
disorder treatment services with medications for opioid use disorder on site or
facilitate access to substance use disorder treatment services with medications
for opioid use disorder off site.
(c) A participating
outpatient provider must obtain applicable licensure under chapter 245G or
other applicable standards for the services provided and must:
(1) deliver services in
accordance with standards published by the commissioner pursuant to paragraph
(d); and
(2) maintain formal
patient referral arrangements with providers delivering step-up or step-down
levels of care in accordance with ASAM standards.
(d) If the provider
standards under chapter 245G or other applicable standards conflict or are
duplicative, the commissioner may grant variances to the standards if the
variances do not conflict with federal requirements. The commissioner must publish service
components, service standards, and staffing requirements for participating
providers that are consistent with ASAM standards and federal requirements by
October 1, 2020.
(b) Programs licensed by
the commissioner as residential treatment programs according to section 245G.21
that (1) receive payment under this chapter, (2) are licensed as a hospital
under sections 144.50 to 144.581, and (3) provide only ASAM level 3.7 medically
monitored inpatient level of care are not required to certify the ASAM 3.7
level of care. If a program described in
this paragraph provides any additional ASAM levels of care, the program must
certify those levels of care according to section 254B.19. Programs meeting the criteria in this
paragraph must submit evidence of providing the required level of care to the
commissioner to be exempt from enrolling in the demonstration.
(c) Tribally licensed programs that otherwise meet the requirements of this subdivision may elect to participate in the demonstration project. The commissioner must consult with Tribal Nations to discuss participation in the substance use disorder demonstration project.
(d) Programs subject to this section must:
(1) deliver services in accordance with section 254B.19; and
(2) offer substance use
disorder treatment services with medications for opioid use disorder on site or
facilitate timely access to medications for opioid use disorder off site.
Sec. 32. Minnesota Statutes 2025 Supplement, section 256B.0759, subdivision 4, is amended to read:
Subd. 4. Provider
payment rates. (a) Payment rates
for participating Providers must be increased for services provided to
medical assistance enrollees. To receive
a rate increase, participating providers must meet demonstration project
requirements and provide evidence of formal referral arrangements with
providers delivering step-up or step-down levels of care. Providers that have enrolled in the
demonstration project but have not met the provider standards under subdivision
3 as of July 1, 2022, are not eligible for a rate increase under this
subdivision until the date that the provider meets the provider standards in
subdivision 3. Services provided from
July 1, 2022, be reimbursed at rates
according to section 254B.0505, subdivision 1.
to the date that the provider meets the
provider standards under subdivision 3 shallRate increases paid under this subdivision to a provider for services
provided between July 1, 2021, and July 1, 2022, are not subject to recoupment
when the provider is taking meaningful steps to meet demonstration project
requirements that are not otherwise required by law, and the provider provides
documentation to the commissioner, upon request, of the steps being taken.
(b) The commissioner may
temporarily suspend payments to the provider according to section 256B.04,
subdivision 21, paragraph (d), if the provider does not meet the requirements
in paragraph (a). Payments withheld from
the provider must be made once the commissioner determines that the
requirements in paragraph (a) are met.
(c) For outpatient
individual and group substance use disorder services under section 254B.0505,
subdivision 1, clause (1), and adolescent treatment programs that are licensed
as outpatient treatment programs according to sections 245G.01 to 245G.18, provided
on or after January 1, 2021, payment rates must be increased by 20 percent over
the rates in effect on December 31, 2020.
(d) (b) Effective
January 1, 2021, and contingent on annual federal approval, managed care plans
and county‑based purchasing plans must reimburse providers of the substance use
disorder services meeting the criteria described in paragraph (a) who requirements
of section 254B.19 that are employed by or under contract with the plan an
amount that is at least equal to the fee-for-service base rate payment for the
substance use disorder services described in paragraph (c) (a). The commissioner must monitor the effect of
this requirement on the rate of access to substance use disorder services and
residential substance use disorder rates.
Capitation rates paid to managed care organizations and county-based
purchasing plans must reflect the impact of this requirement. This paragraph expires if federal approval is
not received at any time as required under this paragraph.
(e) (c) Effective
July 1, 2021, contracts between managed care plans and county-based purchasing
plans and providers to whom paragraph (d) (b) applies must allow
recovery of payments from those providers if, for any contract year, federal
approval for the provisions of paragraph (d) (b) is not received,
and capitation rates are adjusted as a result.
Payment recoveries must not exceed the amount equal to any decrease in
rates that results from this provision.
(f) (d) For
substance use disorder services with medications for opioid use disorder under
section 254B.0505, subdivision 1, clause (7), provided on or after January 1,
2021, payment rates must be increased by 20 percent over the rates in effect on
December 31, 2020. Upon implementation
of new rates according to section 254B.121, the 20 percent increase will no
longer apply.
Sec. 33. Minnesota Statutes 2025 Supplement, section 256B.0943, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given them.
(b) "Children's therapeutic services and supports" means the flexible package of mental health services for children who require varying therapeutic and rehabilitative levels of intervention to treat a diagnosed mental illness, as defined in section 245.462, subdivision 20, or 245.4871, subdivision 15. The services are time-limited interventions that are delivered using various treatment modalities and combinations of services designed to reach treatment outcomes identified in the individual treatment plan.
(c) "Clinical trainee" means a staff person who is qualified according to section 245I.04, subdivision 6.
(d) "Crisis planning" has the meaning given in section 245.4871, subdivision 9a.
(e) "Culturally competent provider" means a provider who understands and can utilize to a client's benefit the client's culture when providing services to the client. A provider may be culturally competent because the provider is of the same cultural or ethnic group as the client or the provider has developed the knowledge and skills through training and experience to provide services to culturally diverse clients.
(g) "Direct service time" means the time that a mental health professional, clinical trainee, mental health practitioner, or mental health behavioral aide spends face-to-face with a client and the client's family or providing covered services through telehealth as defined under section 256B.0625, subdivision 3b. Direct service time includes time in which the provider obtains a client's history, develops a client's treatment plan, records individual treatment outcomes, or provides service components of children's therapeutic services and supports. Direct service time does not include time doing work before and after providing direct services, including scheduling or maintaining clinical records.
(h) "Direction of mental health behavioral aide" means the activities of a mental health professional, clinical trainee, or mental health practitioner in guiding the mental health behavioral aide in providing services to a client. The direction of a mental health behavioral aide must be based on the client's individual treatment plan and meet the requirements in subdivision 6, paragraph (b), clause (7).
(i) "Individual treatment plan" means the plan described in section 245I.10, subdivisions 7 and 8.
(j) "Mental health
behavioral aide services" means medically necessary one-on-one activities
performed by a mental health behavioral aide qualified according to section
245I.04, subdivision 16, to assist a child retain or generalize psychosocial
skills as previously trained by a mental health professional, clinical trainee,
or mental health practitioner and as described in the child's individual
treatment plan and individual behavior plan. Activities involve working directly with the
child or child's family as provided in subdivision 9, paragraph (b), clause
(4).
(k) "Mental health certified family peer specialist" means a staff person who is qualified according to section 245I.04, subdivision 12.
(l) "Mental health practitioner" means a staff person who is qualified according to section 245I.04, subdivision 4.
(m) "Mental health professional" means a staff person who is
qualified according to section 245I.04, subdivision 2.
(n) "Mental health service plan development" includes:
(1) development and revision of a child's individual treatment plan; and
(2) administering and reporting standardized outcome measurements approved by the commissioner, as periodically needed to evaluate the effectiveness of treatment.
(o) "Mental illness" has the meaning given in section 245.462, subdivision 20, paragraph (a), for persons at least 18 years of age but under 21 years of age, and has the meaning given in section 245.4871, subdivision 15, for children under 18 years of age.
(p) "Psychotherapy" means the treatment described in section 256B.0671, subdivision 11.
(q) "Rehabilitative services" or "psychiatric rehabilitation services" means interventions to: (1) restore a child or adolescent to an age-appropriate developmental trajectory that had been disrupted by a psychiatric illness; or (2) enable the child to self-monitor, compensate for, cope with, counteract, or replace psychosocial skills deficits or maladaptive skills acquired over the course of a psychiatric illness. Psychiatric rehabilitation services for children combine coordinated psychotherapy to address internal psychological, emotional, and intellectual processing deficits, and skills training to restore personal and social functioning. Psychiatric rehabilitation services establish a progressive series of goals with each achievement building upon a prior achievement.
(s) "Standard diagnostic assessment" means the assessment described in section 245I.10, subdivision 6.
(t) "Treatment supervision" means the supervision described in section 245I.06.
Sec. 34. Minnesota Statutes 2024, section 256B.0943, subdivision 6, is amended to read:
Subd. 6. Provider
entity clinical infrastructure requirements.
(a) To be an eligible provider entity under this section, a provider
entity must have a clinical infrastructure that utilizes diagnostic assessment,
individual treatment plans, service delivery, and individual treatment plan
review that are culturally competent, child-centered, and family-driven to
achieve maximum benefit for the client. The
provider entity must review, and update as necessary, the clinical policies and
procedures every three two years, must distribute the policies
and procedures to staff initially and upon each subsequent update, and must
train staff accordingly.
(b) The clinical infrastructure written policies and procedures must include policies and procedures for meeting the requirements in this subdivision:
(1) providing or obtaining a client's standard diagnostic assessment, including a standard diagnostic assessment. When required components of the standard diagnostic assessment are not provided in an outside or independent assessment or cannot be attained immediately, the provider entity must determine the missing information within 30 days and amend the child's standard diagnostic assessment or incorporate the information into the child's individual treatment plan;
(2) developing an individual treatment plan;
(3) providing treatment supervision plans for staff according to section 245I.06. Treatment supervision does not include the authority to make or terminate court-ordered placements of the child. A treatment supervisor must be available for urgent consultation as required by the individual client's needs or the situation;
(4) requiring a mental health professional to determine the level of supervision for a behavioral health aide and to document and sign the supervision determination in the behavioral health aide's supervision plan;
(5) ensuring the immediate accessibility of a mental health professional, clinical trainee, or mental health practitioner to the behavioral aide during service delivery;
(6) providing service delivery that implements the individual treatment plan and meets the requirements under subdivision 9; and
(7) individual treatment plan review. The review must determine the extent to which the services have met each of the goals and objectives in the treatment plan. The review must assess the client's progress and ensure that services and treatment goals continue to be necessary and appropriate to the client and the client's family or foster family.
Subd. 9. Service delivery criteria. (a) In delivering services under this section, a certified provider entity must ensure that:
(1) the provider's caseload size should reasonably enable the provider to play an active role in service planning, monitoring, and delivering services to meet the client's and client's family's needs, as specified in each client's individual treatment plan;
(2) site-based programs, including day treatment programs, provide staffing and facilities to ensure the client's health, safety, and protection of rights, and that the programs are able to implement each client's individual treatment plan; and
(3) a day treatment program is
provided to a group of clients by a team under the treatment supervision of a
mental health professional. The day
treatment program must be provided in and by:
(i) an outpatient hospital accredited by the Joint Commission on
Accreditation of Health Organizations and licensed under sections 144.50 to
144.55; (ii) a community mental health center under section 245.62; or (iii) an
entity that is certified under subdivision 4 to operate a program that meets
the requirements of section 245.4884, subdivision 2, and Minnesota Rules, parts
9505.0170 to 9505.0475. The day
treatment program must stabilize the client's mental health status while
developing and improving the client's independent living and socialization
skills. The goal of the day treatment
program must be to reduce or relieve the effects of mental illness and provide
training to enable the client to live in the community. The remainder of the structured treatment
program may include patient and/or family or group psychotherapy, and
individual or group skills training, if included in the client's individual
treatment plan. Day treatment programs
are not part of inpatient or residential treatment services. When a day treatment group that meets the
minimum group size requirement temporarily falls below the minimum group size
because of a member's temporary absence, medical assistance covers a group
session conducted for the group members in attendance. A day treatment program may provide fewer
than the minimally required hours for a particular child during a billing
period in which the child is transitioning into, or out of, the program.
(b) To be eligible for medical assistance payment, a provider entity must deliver at least one of the service components of children's therapeutic services and supports in compliance with the following requirements:
(1) psychotherapy to address the child's underlying mental health disorder must be documented as part of the child's ongoing treatment. A provider must deliver or arrange for medically necessary psychotherapy unless the child's parent or caregiver chooses not to receive it or the provider determines that psychotherapy is no longer medically necessary. When a provider determines that psychotherapy is no longer medically necessary, the provider must update required documentation, including but not limited to the individual treatment plan, the child's medical record, or other authorizations, to include the determination. When a provider determines that a child needs psychotherapy but psychotherapy cannot be delivered due to a shortage of licensed mental health professionals in the child's community, the provider must document the lack of access in the child's medical record;
(2) individual, family, or group skills training is subject to the following requirements:
(i) a mental health professional, clinical trainee, or mental health practitioner shall provide skills training;
(ii) skills training delivered to a child or the child's family must be targeted to the specific deficits or maladaptations of the child's mental health disorder and must be prescribed in the child's individual treatment plan;
(iii) group skills training may be provided to multiple recipients who, because of the nature of their emotional, behavioral, or social dysfunction, can derive mutual benefit from interaction in a group setting, which must be staffed as follows:
(A) one mental health
professional, clinical trainee, or mental health practitioner must work with a
group of three two to eight clients; or
(iv) a mental health professional, clinical trainee, or mental health practitioner must have taught the psychosocial skill before a mental health behavioral aide may practice that skill with the client; and
(v) for group skills training, when a skills group that meets the minimum group size requirement temporarily falls below the minimum group size because of a group member's temporary absence, the provider may conduct the session for the group members in attendance;
(3) crisis planning to a child and family must include development of a written plan that anticipates the particular factors specific to the child that may precipitate a psychiatric crisis for the child in the near future. The written plan must document actions that the family should be prepared to take to resolve or stabilize a crisis, such as advance arrangements for direct intervention and support services to the child and the child's family. Crisis planning must include preparing resources designed to address abrupt or substantial changes in the functioning of the child or the child's family when sudden change in behavior or a loss of usual coping mechanisms is observed, or the child begins to present a danger to self or others;
(4) mental health behavioral aide services must be medically necessary treatment services, identified in the child's individual treatment plan.
To be eligible for medical assistance payment, mental health behavioral aide services must be delivered to a child who has been diagnosed with a mental illness, as provided in subdivision 1, paragraph (a). The mental health behavioral aide must document the delivery of services in written progress notes. Progress notes must reflect implementation of the treatment strategies, as performed by the mental health behavioral aide and the child's responses to the treatment strategies; and
(5) mental health service plan development must be performed in consultation with the child's family and, when appropriate, with other key participants in the child's life by the child's treating mental health professional or clinical trainee or by a mental health practitioner and approved by the treating mental health professional. Treatment plan drafting consists of development, review, and revision by face-to-face or electronic communication. The provider must document events, including the time spent with the family and other key participants in the child's life to approve the individual treatment plan. Medical assistance covers service plan development before completion of the child's individual treatment plan. Service plan development is covered only if a treatment plan is completed for the child. If upon review it is determined that a treatment plan was not completed for the child, the commissioner shall recover the payment for the service plan development.
Sec. 36. Minnesota Statutes 2024, section 256B.0946, subdivision 4, is amended to read:
Subd. 4. Service delivery payment requirements. (a) To be eligible for payment under this section, a provider must develop and practice written policies and procedures for children's intensive behavioral health services, consistent with subdivision 1, paragraph (b), and comply with the following requirements in paragraphs (b) to (n).
(b) Each previous and current mental health, school, and physical health treatment provider must be contacted to request documentation of treatment and assessments that the eligible client has received. This information must be reviewed and incorporated into the standard diagnostic assessment and team consultation and treatment planning review process.
(c) Each client receiving treatment must be assessed for a trauma history, and the client's treatment plan must document how the results of the assessment will be incorporated into treatment.
(e) Each client receiving treatment services must have an individual treatment plan that is reviewed, evaluated, and approved every 180 days using the team consultation and treatment planning process.
(f) Clinical care consultation must be provided in accordance with the client's individual treatment plan.
(g) Each client must have a crisis plan within ten days of initiating services and must have access to clinical phone support 24 hours per day, seven days per week, during the course of treatment. The crisis plan must demonstrate coordination with the local or regional mobile crisis intervention team.
(h) Services must be
delivered and documented at least three days per week, equaling at least six
hours of treatment per week. If the
mental health professional, client, and family agree, service units may be
temporarily reduced for a period of no more than 60 days in order to meet the
needs of the client and family, or as part of transition or on a discharge plan
to another service or level of care. The
reasons for service reduction must be identified, and documented,
and included in the treatment plan or case file. Billing and payment are prohibited for days
on which no services are delivered and documented.
(i) Location of service delivery must be in the client's home, day care setting, school, or other community-based setting that is specified on the client's individualized treatment plan.
(j) Treatment must be developmentally and culturally appropriate for the client.
(k) Services must be delivered in continual collaboration and consultation with the client's medical providers and, in particular, with prescribers of psychotropic medications, including those prescribed on an off-label basis. Members of the service team must be aware of the medication regimen and potential side effects.
(l) Parents, siblings, foster parents, legal guardians, and members of the child's permanency plan must be involved in treatment and service delivery unless otherwise noted in the treatment plan.
(m) Transition planning for the child must be conducted starting with the first treatment plan and must be addressed throughout treatment to support the child's permanency plan and postdischarge mental health service needs.
(n) In order for a provider to receive the daily per-client encounter rate, at least one of the services listed in subdivision 1, paragraph (b), clauses (1) to (3), must be provided. The services listed in subdivision 1, paragraph (b), clauses (4) and (5), may be included as part of the daily per-client encounter rate.
Sec. 37. Minnesota Statutes 2025 Supplement, section 256B.0947, subdivision 3a, is amended to read:
Subd. 3a. Required service components. (a) Intensive nonresidential rehabilitative mental health services, supports, and ancillary activities that are covered by a single daily rate per client must include the following, as needed by the individual client:
(1) individual, family, and group psychotherapy;
(2) individual, family, and group skills training, as defined in section 256B.0943, subdivision 1, paragraph (r);
(3) crisis planning as defined in section 245.4871, subdivision 9a;
(5) mental health case management as provided in section 256B.0625, subdivision 20;
(6) medication education services as defined in this section;
(7) care coordination by a client-specific lead worker assigned by and responsible to the treatment team;
(8) psychoeducation of and consultation and coordination with the client's biological, adoptive, or foster family and, in the case of a youth living independently, the client's immediate nonfamilial support network;
(9) clinical consultation to a client's employer or school or to other service agencies or to the courts to assist in managing the mental illness or co-occurring disorder and to develop client support systems;
(10) coordination with, or performance of, crisis intervention and stabilization services as defined in section 256B.0624;
(11) transition services;
(12) co-occurring substance use disorder treatment as defined in section 245I.02, subdivision 11; and
(13) housing access support that assists clients to find, obtain, retain, and move to safe and adequate housing. Housing access support does not provide monetary assistance for rent, damage deposits, or application fees.
(b) The provider shall ensure and document the following by means of performing the required function or by contracting with a qualified person or entity: client access to crisis intervention services, as defined in section 256B.0624, and available 24 hours per day and seven days per week.
EFFECTIVE DATE. This
section is effective July 1, 2027, or upon federal approval, whichever is
later.
Sec. 38. Minnesota Statutes 2024, 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; or (3) if a treatment team demonstrates to the
commissioner expertise in meeting the developmental and clinical needs of an
expanded age range, at least eight years of age 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;
(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.
(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).; and
(x) a registered nurse,
as defined in section 148.171, subdivision 20.
(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;
(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.
(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.
EFFECTIVE DATE. The
amendment made to paragraph (c), clause (1), item (ii), of this section is
effective July 1, 2027, or upon federal approval, whichever is later.
Sec. 39. Minnesota Statutes 2025 Supplement, section 256L.03, subdivision 5, is amended to read:
Subd. 5. Cost-sharing. (a) Co-payments, coinsurance, and deductibles do not apply to children under the age of 21 and to American Indians as defined in Code of Federal Regulations, title 42, section 600.5.
(b) The commissioner must adjust co-payments, coinsurance, and deductibles for covered services in a manner sufficient to maintain the actuarial value of the benefit to 94 percent. The cost-sharing changes described in this paragraph do not apply to eligible recipients or services exempt from cost-sharing under state law. The cost-sharing changes described in this paragraph shall not be implemented prior to January 1, 2016.
(c) The cost-sharing changes authorized under paragraph (b) must satisfy the requirements for cost-sharing under the Basic Health Program as set forth in Code of Federal Regulations, title 42, sections 600.510 and 600.520.
(d) Cost-sharing for prescription drugs and related medical supplies to treat chronic disease must comply with the requirements of section 62Q.481.
(e) Co-payments, coinsurance, and deductibles do not apply to additional diagnostic services or testing that a health care provider determines an enrollee requires after a mammogram, as specified under section 62A.30, subdivision 5.
(g) Co-payments, coinsurance, and deductibles do not apply to pre-exposure prophylaxis (PrEP) and postexposure prophylaxis (PEP) medications when used for the prevention or treatment of the human immunodeficiency virus (HIV).
(h) Co-payments, coinsurance, and deductibles do not apply to mobile crisis intervention, crisis stabilization provided in a community setting, or crisis assessment as defined in section 256B.0624, subdivision 2.
Sec. 40. DIRECTION
TO COMMISSIONER; CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC REBASING.
Notwithstanding
Minnesota Statutes, section 256B.0625, subdivision 5m, paragraph (c), clause
(4), for certified community behavioral health clinics certified on or after
January 1, 2021, and before January 1, 2022, the commissioner of human services
must rebase rates for purposes of Minnesota Statutes, section 256B.0625,
subdivision 5m, paragraph (c), clause (4), for services provided on or after
January 1, 2026.
Sec. 41. REPEALER.
(a) Minnesota Statutes
2024, section 256B.0759, subdivisions 2 and 5, are repealed.
(b) Minnesota Statutes
2025 Supplement, section 254B.052, subdivision 6, is repealed.
ARTICLE 6
DEPARTMENT OF HUMAN SERVICES HOUSING AND SUPPORT SERVICES
Section 1. Minnesota Statutes 2024, section 245.991, subdivision 3, is amended to read:
Subd. 3. Allowable
grant activities. Grantees must
provide homeless outreach and case management services. Projects may provide clinical assessment,
habilitation and rehabilitation services, community mental health services,
substance use disorder treatment, housing transition and sustaining services,
or direct assistance funding. Services
must be provided to individuals with a serious mental illness, substance use
disorder, or with a co-occurring substance use disorder, and
who are homeless or at imminent risk of homelessness. Individuals receiving homeless outreach
services may be presumed eligible until a serious mental illness can be
verified.
EFFECTIVE DATE. This
section is effective July 1, 2026.
Sec. 2. Minnesota Statutes 2024, section 245.992, subdivision 1, is amended to read:
Subdivision 1. Establishment. The commissioner of human services must
establish a housing with support for adults with serious mental illness program
to prevent or end homelessness for people with serious mental illness, substance
use disorder, or co-occurring substance use disorder; to increase the
availability of housing with support,; and to ensure the
commissioner may achieve the goals of the housing mission statement in section
245.461, subdivision 4.
EFFECTIVE DATE. This
section is effective July 1, 2026.
Subd. 2. Eligible
beneficiaries. Program activities
must be provided to people with a serious mental illness, substance use
disorder, or with a co-occurring substance use disorder, who meet
homeless criteria determined by the commissioner.
EFFECTIVE DATE. This
section is effective July 1, 2026.
Sec. 4. Minnesota Statutes 2024, section 256D.54, subdivision 1, is amended to read:
Subdivision 1. Potential
eligibility. An applicant or
recipient who is otherwise eligible for supplemental aid and who is potentially
eligible for maintenance benefits from any other source shall must
(1) apply for those benefits within 30 90 days of the county's
determination of potential eligibility for those benefits; and (2) execute an
interim assistance authorization agreement on a form as directed by the
commissioner.
EFFECTIVE DATE. This
section is effective the day following final enactment.
ARTICLE 7
MALTREATMENT OF VULNERABLE ADULTS
Section 1. Minnesota Statutes 2024, section 144.6512, subdivision 6, is amended to read:
Subd. 6. Other
laws. Nothing in this section
affects the rights and remedies available under section 626.557, subdivisions 10
11b to 11j, 17, and 20.
Sec. 2. Minnesota Statutes 2024, section 144A.161, subdivision 8, is amended to read:
Subd. 8. Responsibilities of county social services agency. (a) The county social services agency shall participate in the meeting as outlined in subdivision 3, paragraph (b), to develop a relocation plan.
(b) The county social services agency shall designate a representative to the interdisciplinary team established by the licensee responsible for coordinating the relocation efforts.
(c) The county social services agency shall serve as a resource in the relocation process.
(d) Concurrent with the notice sent to residents from the licensee as provided in subdivision 5a, the county social services agency shall provide written notice to residents and responsible parties describing:
(1) the county's role in the relocation process and in the follow-up to relocations;
(2) the county social services agency contact information; and
(3) the contact information for the Office of Ombudsman for Long-Term Care and the Office of Ombudsman for Mental Health and Developmental Disabilities.
(e) The county social services agency designee shall meet with appropriate facility staff to coordinate any assistance in the relocation process. This coordination shall include participating in group meetings with residents, families, and responsible parties to explain the relocation process.
(f) Beginning from the initial notice given in subdivision 2, the county social services agency shall monitor compliance with all components of this section and the plan developed under subdivision 3, paragraph (b). If the licensee is not in compliance, the county social services agency shall notify the commissioner of the Department of Health and the commissioner of the Department of Human Services.
(h) A member of the county social services agency staff shall follow up with relocated residents within 30 days after the relocation. This requirement does not apply to changes in operation where the facility moved to a new location and residents chose to move to that new location. The requirement also does not apply to residents admitted after the notice in subdivision 5a is given and discharged prior to the actual change in facility operations or reduction. County social services agency staff shall interview the resident or responsible party and review and discuss pertinent medical or social records with appropriate facility staff to:
(1) assess the adjustment of the resident to the new placement;
(2) recommend services or methods to meet any special needs of the resident; and
(3) identify residents at risk.
(i) The county social services agency shall conduct subsequent follow-up visits on site in cases where the adjustment of the resident to the new placement is in question.
(j) Within 60 days of the completion of the follow up under paragraphs (h) and (i), the county social services agency shall submit a written summary of the follow-up work to the Department of Health and the Department of Human Services in a manner approved by the commissioners.
(k) The county social services agency shall submit to the Department of Health and the Department of Human Services a report of any issues that may require further review or monitoring.
(l) The county social services agency shall be responsible for the safe and orderly relocation of residents in cases where an emergent need arises or when the licensee has abrogated its responsibilities under the plan.
Sec. 3. Minnesota Statutes 2024, section 144G.92, subdivision 5, is amended to read:
Subd. 5. Other
laws. Nothing in this section
affects the rights and remedies available under section 626.557, subdivisions 10
11b to 11j, 17, and 20.
Sec. 4. Minnesota Statutes 2024, section 152.137, subdivision 6, is amended to read:
Subd. 6. Reporting maltreatment of vulnerable adult. (a) A peace officer shall make a report of suspected maltreatment of a vulnerable adult if the vulnerable adult is present in an area where any of the activities described in subdivision 2, paragraph (a), clauses (1) to (4), are taking place, and the peace officer has reason to believe the vulnerable adult inhaled, was exposed to, had contact with, or ingested methamphetamine, a chemical substance, or methamphetamine paraphernalia. The peace officer shall immediately report to the county common entry point as described in section 626.557, subdivision 9b.
(c) The county social
services agency shall immediately respond as required in section 626.557, subdivision
10 subdivisions 11b to 11j, upon receipt of a report from the common
entry point staff.
Sec. 5. Minnesota Statutes 2025 Supplement, section 524.5-311, is amended to read:
524.5-311 EMERGENCY GUARDIAN.
(a) If the court finds that
compliance with the procedures of this article will likely result in
substantial harm to the respondent's health, safety, or welfare, and that no
other person appears to have authority and willingness to act in the
circumstances, the court, on petition by a person interested in the
respondent's welfare, may appoint an emergency guardian whose authority may not
exceed 60 days and who may exercise only the powers specified in the order. A county that is acting under section 626.557,
subdivision 10 subdivisions 11h and 11i, by petitioning for
appointment of an emergency guardian on behalf of a vulnerable adult may be
granted authority to act for a period not to exceed 90 days. An emergency guardian's appointment under
this section may only be extended once for a period not to exceed 60 days if
the court finds good cause for the continuation of the guardianship. Immediately upon receipt of the petition for
an emergency guardianship, the court shall appoint a lawyer to represent the respondent
in the proceeding. Except as otherwise
provided in paragraph (b), reasonable notice of the time and place of a hearing
on the petition must be given to the respondent; interested parties, if known;
and any other persons as the court directs.
(b) An emergency guardian may be appointed without notice to the respondent and the respondent's lawyer only if the court finds from affidavit or other sworn testimony that the respondent will be substantially harmed before a hearing on the appointment can be held and the petitioner made good faith efforts to provide notice to the respondent or the respondent's lawyer. If the court appoints an emergency guardian without notice to the respondent, the respondent must be given notice of the appointment within 48 hours after the appointment. The court shall hold a hearing on the appropriateness of the appointment within five days after the appointment.
(c) Appointment of an emergency guardian, with or without notice, is not a determination of the respondent's incapacity.
(d) The court may remove an emergency guardian at any time. An emergency guardian shall make any report the court requires. In other respects, the provisions of this article concerning guardians apply to an emergency guardian.
(e) Any documents or information disclosing or pertaining to health or financial information shall be filed as confidential documents, consistent with the bill of particulars under section 524.5-121.
(f) The mere fact that the respondent is a patient in a hospital or a resident of a facility is not in and of itself sufficient evidence to support a risk of substantial harm to the respondent's health, safety, or welfare.
Sec. 6. Minnesota Statutes 2024, section 524.5-409, subdivision 2, is amended to read:
Subd. 2. Emergency and temporary conservator. (a) If the court finds that compliance with the procedures of this article will likely result in the immediate loss, waste, or dissipation of the individual's assets or income unless management is provided, or money is needed for the support, care, education, health, and welfare of the individual
(b) An emergency conservator may be appointed without notice to the respondent and the respondent's lawyer only if the court finds from affidavit or other sworn testimony that the respondent will be substantially harmed before a hearing on the appointment can be held. If the court appoints an emergency conservator without notice to the respondent, the respondent must be given notice of the appointment within 48 hours after the appointment. The court shall hold a hearing on the appropriateness of the appointment within five days after the appointment.
(c) Appointment of an emergency conservator, with or without notice, is not a determination of the respondent's incapacity.
(d) The court may remove an emergency conservator at any time. An emergency conservator shall make any report the court requires. In other respects, the provisions of this article concerning conservators apply to an emergency conservator.
(e) If the court finds that a conservator is not effectively performing the conservator's duties and that the security and preservation of the assets of the person subject to conservatorship requires immediate action, the court may appoint a temporary substitute conservator for the person subject to conservatorship for a specified period not exceeding six months. Except as otherwise ordered by the court, a temporary substitute conservator so appointed has the powers set forth in the previous order of appointment. The authority of any unlimited or limited conservator previously appointed by the court is suspended as long as a temporary substitute conservator has authority. If an appointment is made without previous notice to the person subject to conservatorship or the affected conservator within five days after the appointment, the court shall inform the person subject to conservatorship or conservator of the appointment.
(f) The court may remove a temporary substitute conservator at any time. A temporary substitute conservator shall make any report the court requires. In other respects, the provisions of this article concerning conservators apply to a temporary substitute conservator.
(g) Any documents or information disclosing or pertaining to health or financial information shall be filed as confidential documents, consistent with the bill of particulars under section 524.5-121.
Sec. 7. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision to read:
Subd. 1a. Adult
protective services. Adult
protective services must receive referrals from the common entry point and
carry out lead investigative agency duties to investigate for a determination
of responsibility for maltreatment. When
the county social services agency is the lead investigative agency, or when the
Department of Human Services or Department of Health in the role of the lead
investigative agency request adult protective services, adult protective
services must conduct assessments, develop services plans, and implement
interventions to safeguard adults who are vulnerable and suspected of
experiencing maltreatment. Adult
protective services must conclude services following final determination of
maltreatment and the adult is assessed as safe.
The Department of Human Services is the state agency responsible for
supervision of adult protective services administered by county social services
agencies.
Subd. 9. Common entry point designation. (a) The commissioner of human services shall establish a common entry point. The common entry point is the unit responsible for receiving the report of suspected maltreatment under this section.
(b) The common entry point
must be available 24 hours per day to take calls accept reports
from reporters of suspected maltreatment and make required referrals for
suspected maltreatment of a vulnerable adult. The common entry point shall use a standard
intake form that includes:
(1) the time and date of the report;
(2) the name, relationship, and identifying and contact information for the person believed to be a vulnerable adult and the individual or facility alleged responsible for maltreatment;
(3) the name, relationship, and contact information for the:
(i) reporter;
(ii) initial reporter, witnesses, and persons who may have knowledge about the maltreatment; and
(iii) legal surrogate and persons who may provide support to the vulnerable adult;
(4) the basis of vulnerability for the vulnerable adult;
(5) the time, date, and location of the incident;
(6) the immediate safety risk to the vulnerable adult;
(7) a description of the suspected maltreatment;
(8) the impact of the suspected maltreatment on the vulnerable adult;
(9) whether a facility was involved and, if so, which agency licenses the facility;
(10) the actions taken to protect the vulnerable adult;
(11) the required notifications and referrals made by the common entry point; and
(12) whether the reporter wishes to receive notification of the disposition.
(c) The common entry point is not required to complete each item on the form prior to dispatching the report to the appropriate lead investigative agency.
(d) The common entry point shall immediately report to a law enforcement agency any incident in which there is reason to believe a crime has been committed.
(e) If a report is initially made to a law enforcement agency or a lead investigative agency, those agencies shall take the report on the appropriate common entry point intake forms and immediately forward a copy to the common entry point.
(g) The commissioner of human services shall maintain a centralized database for the collection of common entry point data, lead investigative agency data including maltreatment report disposition, and appeals data. The common entry point shall have access to the centralized database and must log the reports into the database.
(h) When appropriate, the common entry point staff must refer calls that do not allege the abuse, neglect, or exploitation of a vulnerable adult to other organizations that might resolve the reporter's concerns.
(i) A common entry point must be operated in a manner that enables the commissioner of human services to:
(1) track critical steps in the reporting, evaluation, referral, response, disposition, and investigative process to ensure compliance with all requirements for all reports;
(2) maintain data to facilitate the production of aggregate statistical reports for monitoring patterns of abuse, neglect, or exploitation;
(3) serve as a resource for the evaluation, management, and planning of preventative and remedial services for vulnerable adults who have been subject to abuse, neglect, or exploitation;
(4) set standards, priorities, and policies to maximize the efficiency
and effectiveness of the common entry point; and
(5) track and manage consumer complaints related to the common entry point.
(j) The commissioners of human services and health shall collaborate on the creation of a system for referring reports to the lead investigative agencies. This system shall enable the commissioner of human services to track critical steps in the reporting, evaluation, referral, response, disposition, investigation, notification, determination, and appeal processes.
Sec. 9. Minnesota Statutes 2024, section 626.557, subdivision 9a, is amended to read:
Subd. 9a. Evaluation
and referral of reports made to common entry point. (a) The common entry point must screen
the reports of alleged or suspected maltreatment for immediate risk and make
all necessary referrals as follows using the referral guidelines
established by the commissioner and the following:
(1) if the common entry point determines that there is an immediate need for emergency adult protective services, the common entry point agency shall immediately notify the appropriate county agency;
(2) if the report contains suspected criminal activity against a vulnerable adult, the common entry point shall immediately notify the appropriate law enforcement agency;
(3) the common entry point shall refer all reports of alleged or suspected maltreatment to the appropriate lead investigative agency as soon as possible, but in any event no longer than two working days;
(4) if the report contains information about a suspicious death, the common entry point shall immediately notify the appropriate law enforcement agencies, the local medical examiner, and the ombudsman for mental health and developmental disabilities established under section 245.92. Law enforcement agencies shall coordinate with the local medical examiner and the ombudsman as provided by law; and
(b) If the lead investigative agency receiving a report believes the report was referred by the common entry point in error, the lead investigative agency shall immediately notify the common entry point of the error, including the basis for the lead investigative agency's belief that the referral was made in error. The common entry point shall review the information submitted by the lead investigative agency and immediately refer the report to the appropriate lead investigative agency using the referral guidelines established by the commissioner.
Sec. 10. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision to read:
Subd. 11b. County
social services agency; responsibilities.
The county social services agency is responsible for supervision
of:
(1) intake decisions for
initial disposition of the report;
(2) agency
prioritization used to screen out an adult meeting eligibility for adult
protective services as vulnerable and maltreated;
(3) safety, assessment,
and services plans;
(4) protective service
interventions;
(5) use of guardianship
and other involuntary interventions;
(6) final determination
for maltreatment; and
(7) case closure
decisions.
Sec. 11. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision to read:
Subd. 11c. County
social services agency; referrals. (a)
When the common entry point refers a report to the county social services
agency as the lead investigative agency or makes a referral to the county
social services agency for emergency adult protective services, or when another
lead investigative agency requests adult protective services from the county
social services agency for an adult referred to that lead investigative agency
by the common entry point, the county social services agency must use the data
report system and standardized decision and assessment tools provided by the
commissioner of human services. The
information entered by the county social services agency into the data system
and standardized tools must be accessible to the Department of Human Services
for the department to meet federal requirements, evaluate consistent
application of policy, review quality of services and outcomes for adults, and
meet requirements for background studies and disqualification of individuals
determined responsible for vulnerable adult maltreatment under chapter 245C.
(b) The county social
services agency must screen the report using the standardized tools provided by
the commissioner to determine:
(1) whether the referred
adult meets adult protective services eligibility as potentially vulnerable and
maltreated under this section; and
(2) the response time
required to initiate adult protective services.
(c)
For reports referred by the common entry point for emergency adult protective
services, the county social services agency must immediately screen the report
to determine whether the adult should be accepted for emergency adult
protective services. If the adult is
accepted for emergency adult protective services, the county social services
agency must immediately offer protective services to prevent further
maltreatment and safeguard the welfare of the vulnerable adult. Assessment of adults accepted by the county
social services agency for emergency protective services must be conducted in
person by the agency or a designee within 24 hours of the agency receiving the
referral. When sexual or physical abuse
is suspected, the county social services agency must immediately arrange for
and make available to the vulnerable adult appropriate medical examination and
services.
(d) For reports referred
by the common entry point to the county as lead investigative agency, the
county social services agency must screen the report and make an initial
determination within seven calendar days following receipt of the report from
the common entry point on whether the adult should be accepted for adult
protective services.
(e) For referrals made
for adult protective services by the Department of Human Services or the
Department of Health in the applicable department's role as the lead
investigative agency responsible for reports made under this section, the
county social services agency must screen the report and determine within seven
calendar days following receipt of referral whether the adult should be
accepted for adult protective services.
(f) If an adult meets
eligibility requirements but is not accepted for adult protective services
based on local agency prioritization, the agency must document the reason for
the screening decision in the standardized tool provided by the commissioner.
Sec. 12. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision to read:
Subd. 11d. County
social services agency; assessments.
(a) For adults accepted into adult protective services, the
county social services agency must decide, prior to initiation of assessment
activities, if the agency must also conduct an investigation for final
disposition for responsibility of maltreatment in addition to the assessment
for adult protective services.
(b) The county social
services agency must conduct assessments concurrently with investigations when: (1) the county is both the lead investigative
agency and responsible for making a final determination of responsibility for
maltreatment; or (2) another lead investigative agency responsible for the
final determination of maltreatment requests assistance from the county social
services agency.
(c) The county social
services agency must conduct an in-person assessment to initiate adult
protective services:
(1) within 24 hours of
accepting a referral for emergency protective services;
(2) within 24 hours of
making an initial disposition that the adult is in immediate need of
protection, unless an in-person response would endanger the safety of the
adult; or
(3) within 72 hours but
in no instance later than seven calendar days from the first business day after
receiving the report for adults accepted for adult protective services.
(d) The county social
services agency must use the standardized decision, assessment, and service
planning tools provided by the commissioner with all vulnerable adults accepted
for adult protective services. The
county social services agency must involve the vulnerable adult in the
assessment and service plan. The county
social services agency must document and update assessment and service plans
consistent with significant changes in the vulnerable adult's health and
safety.
(e)
The county social services agency must notify the vulnerable adult and, if
applicable, the guardian or health care agent of the vulnerable adult of the
results of the assessment and service plan, including but not limited to
recommendations for protective services intervention to stop or prevent
maltreatment and to protect the vulnerable adult's health, safety, and comfort. When necessary to prevent further
maltreatment or safeguard the vulnerable adult, the county social services
agency may share the results of the assessment with the vulnerable adult's
primary supports.
Sec. 13. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision to read:
Subd. 11e. County
social services agency; investigations.
(a) The county social services agency must investigate for a
final disposition of responsibility for maltreatment for an allegation of:
(1) abuse;
(2) financial abuse by a
fiduciary;
(3) financial
exploitation involving a nonfiduciary that may be criminal or that involved
force, coercion, harassment, deception, fraud, undue influence, or a scam;
(4) financial
exploitation that involved another type of maltreatment;
(5) caregiver neglect by
a paid caregiver or personal care assistance provider under chapter 256B;
(6) caregiver neglect by
an unpaid caregiver that resulted in intentional harm to the vulnerable adult
or involved another type of maltreatment; and
(7) a situation for
which the county social services agency finds that a determination of
responsibility of maltreatment may safeguard a vulnerable adult or prevent
further maltreatment.
(b) The county social
services agency must conduct an investigation for final disposition of
responsibility for maltreatment if the agency receives information during an
assessment that indicates the presence of any scenario listed in paragraph (a)
or subdivision 11f.
Sec. 14. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision to read:
Subd. 11f. County
social services agency; self-neglect.
(a) The county social services agency may determine that an
allegation that does not result in a determination of responsibility for
maltreatment is:
(1) self-neglect;
(2) neglect by an unpaid
caregiver that did not result in intentional harm to the vulnerable adult and
did not involve another type of alleged maltreatment; or
(3) financial
exploitation by a nonfiduciary that is consistent with the choice of the adult
and not criminal or involving force, coercion, harassment, deception, fraud,
undue influence, a scam, or another type of alleged maltreatment.
(b) An allegation of
self-neglect is a substantiated determination if the county social services
agency determines that adult protective services are needed.
Subd. 11g. County
social services agency; initial contact.
(a) At the initial contact with the vulnerable adult accepted by
the county social services agency, the agency must provide the vulnerable adult
with information about the process for adult protective services and the
vulnerable adult's rights as an adult protective client.
(b) At initial contact,
the county social services agency must inform the individual or entity alleged
responsible for maltreatment of the allegation in a manner consistent with
requirements under this section to protect the identity of the reporter. The interview with the individual or entity
alleged responsible for maltreatment may be postponed at the request of a law
enforcement agency or if the interview may endanger the safety of the
vulnerable adult.
Sec. 16. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision to read:
Subd. 11h. County
social services agency; agency authority.
(a) A county social services agency may enter all facilities and
business premises of a licensed provider to inspect and copy records as part of
an adult protective services assessment or investigation. The licensed provider must provide the county
social services agency access to not public data as defined in section 13.02,
subdivision 8a, and medical records under sections 144.291 to 144.298 that are
maintained at the facilities and business premises to the extent that the data
and records are necessary to conduct the agency's investigation. The licensed provider must provide the county
social services agency access to all available sources of information at the
facilities and business premises, not only written records.
(b) When necessary in
order to protect a vulnerable adult from serious harm from maltreatment, the
county social services agency may seek any of the following protective services
interventions:
(1) emergency protective
services;
(2) participation of law
enforcement or emergency medical services;
(3) authority from a
court to remove an adult from the situation in which maltreatment occurred;
(4) a restraining order
or court order for removal of the perpetrator from the residence of the
vulnerable adult pursuant to section 518B.01;
(5) a referral for a
financial transaction hold under chapter 45A or a protective arrangement under
this chapter or chapter 524;
(6) a referral for a
representative payee;
(7) a referral to the
prosecuting attorney for possible criminal prosecution of the perpetrator under
chapter 609;
(8) the appointment or
replacement of a guardian or conservator pursuant to sections 524.5-101 to
524.5-502, or guardianship or conservatorship pursuant to chapter 252A when
maltreatment has been substantiated and when less restrictive interventions are
not sufficient to stop or reduce the risk of serious harm from maltreatment;
and
(9) other interventions
recommended by a multidisciplinary team under this section.
(c) The county social
services agency may seek the protective services interventions under paragraph
(b) regardless of the vulnerable adult's voluntary or involuntary
participation.
(d) The county social
services agency may offer voluntary service interventions to support the
vulnerable adult or primary supports to stop, reduce the risk for, or prevent
subsequent maltreatment.
Subd. 11i. County
social services agency; legal intervention.
(a) In proceedings under sections 524.5-101 to 524.5-502, if a
suitable relative or other person is not available to petition for guardianship
or conservatorship, a county employee must present the petition with
representation by the county attorney. The
county must contract with or arrange for a suitable person or organization to
provide ongoing guardianship services. If
the county presents evidence to the court exercising probate jurisdiction that
the county has made diligent effort and no other suitable person can be found,
a county employee may serve as guardian or conservator.
(b) The county must not
retaliate against the employee for any action taken on behalf of the person
subject to guardianship or conservatorship, even if the action is adverse to
the county's interests. Any person
retaliated against in violation of this subdivision shall have a cause of
action against the county and is entitled to reasonable attorney fees and costs
of the action if the action is upheld by the court.
(c) The expenses of a
legal intervention must be paid by the county in the case of indigent persons
under section 524.5-502 and chapter 563.
Sec. 18. Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision to read:
Subd. 11j. County
social services agency; conflict of interest. (a) A county that identifies a
potential conflict of interest under paragraph (c) related to an investigation,
assessment, or protective services intervention must coordinate with another
county social services agency to delegate the initial county's authority as the
lead investigative agency to remediate the potential conflict. County social services agencies must
cooperate and accept jurisdiction when an initial county social services agency
identifies a potential conflict of interest and requests the other county's
assistance.
(b) The initial county
must notify the commissioner of human services when no other county is
available to accept delegation of adult protective services duties. If the commissioner is notified that no other
county is available, the commissioner may use the authority under subdivision
9a to determine the county social services agency responsible as lead
investigative agency and for adult protective services.
(c) A county social
services agency employee or designee must not have:
(1) a personal or family
relationship with a party in the investigation or assessment;
(2) a dual relationship,
as defined in Code of Federal Regulations, title 45, section 1324.401, with the
vulnerable adult;
(3) a personal financial interest or financial relationship with a
provider receiving referrals from the employee; or
(4) any other appearance
of conflict of interest as determined by the county social services agency.
Sec. 19. Minnesota Statutes 2024, section 626.557, subdivision 12b, is amended to read:
Subd. 12b. Data
management. (a) In performing any of
the duties of this section as a lead investigative agency, the county social service
services agency shall maintain appropriate records. Data collected by the county social service
services agency under this section while providing adult protective
services are welfare data under section 13.46.
Investigative data collected under this section are confidential data on
individuals or protected nonpublic data as defined under section 13.02. Notwithstanding section 13.46, subdivision 1,
paragraph (a), data under this paragraph that are inactive investigative data
on an individual who is a vendor of services are private data on individuals,
as defined in section 13.02. The
identity of the reporter may only be disclosed as provided in paragraph (c).
(b) The commissioners of
health and human services shall prepare an investigation memorandum for each
report alleging maltreatment investigated under this section. County social service services
agencies must maintain private data on individuals but are not required to
prepare an investigation memorandum. During
an investigation by the commissioner of health or the commissioner of human
services, data collected under this section are confidential data on
individuals or protected nonpublic data as defined in section 13.02. Upon completion of the investigation, the
data are classified as provided in clauses (1) to (3) and paragraph (c).
(1) The investigation memorandum must contain the following data, which are public:
(i) the name of the facility investigated;
(ii) a statement of the nature of the alleged maltreatment;
(iii) pertinent information obtained from medical or other records reviewed;
(iv) the identity of the investigator;
(v) a summary of the investigation's findings;
(vi) statement of whether the report was found to be substantiated, inconclusive, false, or that no determination will be made;
(vii) a statement of any action taken by the facility;
(viii) a statement of any action taken by the lead investigative agency; and
(ix) when a lead investigative agency's determination has substantiated maltreatment, a statement of whether an individual, individuals, or a facility were responsible for the substantiated maltreatment, if known.
The investigation memorandum must be written in a manner which protects the identity of the reporter and of the vulnerable adult and may not contain the names or, to the extent possible, data on individuals or private data listed in clause (2).
(2) Data on individuals collected and maintained in the investigation memorandum are private data, including:
(i) the name of the vulnerable adult;
(ii) the identity of the individual alleged to be the perpetrator;
(iii) the identity of the individual substantiated as the perpetrator; and
(iv) the identity of all individuals interviewed as part of the investigation.
(3) Other data on individuals maintained as part of an investigation under this section are private data on individuals upon completion of the investigation.
(d) Notwithstanding section 138.163, data maintained under this section by the commissioners of health and human services and county adult protective services must be maintained under the following schedule and then destroyed unless otherwise directed by federal requirements:
(1) data from reports determined to be false, maintained for three years after the finding was made for reports under the jurisdiction of the Department of Human Services or the Department of Health and five years after the finding was made for reports under the jurisdiction of county adult protective services;
(2) data from reports determined to be inconclusive, maintained for four years after the finding was made for reports under the jurisdiction of the Department of Human Services or the Department of Health and five years after the finding was made for reports under the jurisdiction of county adult protective services;
(3) data from reports determined to be substantiated, maintained for seven years after the finding was made; and
(4) data from reports which were not investigated by a lead investigative agency and for which there is no final disposition, maintained for three years from the date of the report for reports under the jurisdiction of the Department of Human Services or the Department of Health and five years from the date of the report for reports under the jurisdiction of county adult protective services.
(e) The commissioners of health and human services shall annually publish on their websites the number and type of reports of alleged maltreatment involving licensed facilities reported under this section, the number of those requiring investigation under this section, and the resolution of those investigations.
(f) Each lead
investigative agency must have a record retention policy.
(g) (f) Lead
investigative agencies, county agencies responsible for adult protective
services, prosecuting authorities, and law enforcement agencies may exchange
not public data, as defined in section 13.02, with a tribal agency, facility,
service provider, vulnerable adult, primary support person for a vulnerable
adult, emergency management service, financial institution, medical
examiner, state licensing board, federal or state agency, the ombudsman for
long-term care, or the ombudsman for mental health and developmental
disabilities, if the agency or authority providing the data determines that the
data are pertinent and necessary to prevent further maltreatment of a
vulnerable adult, to safeguard a vulnerable adult, or for an investigation
under this section. Data collected under
this section must be made available to prosecuting authorities and law
enforcement officials, local county agencies, the commissioner of human
services as the state Medicaid agency, and licensing agencies investigating
the alleged maltreatment under this section.
The lead investigative agency shall exchange not public data with the
vulnerable adult maltreatment review panel established in section 256.021 if
the data are pertinent and necessary for a review requested under that section. Notwithstanding section 138.17, upon
completion of the review, not public data received by the review panel must be
destroyed.
(h) (g) Each
lead investigative agency shall keep records of the length of time it takes to
complete its investigations.
(i)
(j) (i) Under
any notification provision of this section, where federal law specifically
prohibits the disclosure of patient identifying information, a lead
investigative agency may not provide any notice unless the vulnerable adult has
consented to disclosure in a manner which conforms to federal requirements.
(j) When a county agency
acting as the lead investigative agency is aware the person determined
responsible for maltreatment is a guardian or conservator appointed under
chapter 524, the county agency must share the final determination with the
state judicial branch within 14 calendar days of the determination.
Sec. 20. Minnesota Statutes 2024, section 626.5572, subdivision 2, is amended to read:
Subd. 2. Abuse. "Abuse" means:
(a) An act against a vulnerable adult that constitutes a violation of, an attempt to violate, or aiding and abetting a violation of:
(1) assault in the first through fifth degrees as defined in sections 609.221 to 609.224;
(2) the use of drugs to injure or facilitate crime as defined in section 609.235;
(3) the solicitation, inducement, and promotion of prostitution as defined in section 609.322; and
(4) criminal sexual conduct in the first through fifth degrees as defined in sections 609.342 to 609.3451.
A violation includes any action that meets the elements of the crime, regardless of whether there is a criminal proceeding or conviction.
(b) Conduct which is not an accident or therapeutic conduct as defined in this section, which produces or could reasonably be expected to produce physical pain or injury or emotional distress including, but not limited to, the following:
(1) hitting, slapping, kicking, pinching, biting, or corporal punishment of a vulnerable adult;
(2) use of repeated or malicious oral, written, or gestured language toward a vulnerable adult or the treatment of a vulnerable adult which would be considered by a reasonable person to be disparaging, derogatory, humiliating, harassing, or threatening; or
(3) use of any aversive or deprivation procedure, unreasonable confinement, or involuntary seclusion, including the forced separation of the vulnerable adult from other persons against the will of the vulnerable adult or the legal representative of the vulnerable adult unless authorized under applicable licensing requirements or Minnesota Rules, chapter 9544.
(c) Any contact with the
vulnerable adult that is not therapeutic conduct and a reasonable person would
consider a sexual act or any nonconsensual sexual interaction with the
vulnerable adult, including but not limited to:
(1) making, viewing, or sharing sexual images or videos with or of the vulnerable adult; and
(2)
using oral, written, gestured, or electronic communication that is sexually
harassing, including but not limited to unwelcome sexual advances or requests
for sexual favors.
(c) (d) Any
sexual contact or penetration as defined in section 609.341, between a facility
staff person or a person providing services in the facility and a resident,
patient, or client of that facility.
(d) (e) The
act of forcing, compelling, coercing, or enticing a vulnerable adult against
the vulnerable adult's will to perform services for the advantage of another.
(e) (f) For
purposes of this section, a vulnerable adult is not abused for the sole reason
that the vulnerable adult or a person with authority to make health care
decisions for the vulnerable adult under sections 144.651, 144A.44, chapter
145B, 145C or 252A, or section 253B.03 or 524.5-313, refuses consent or
withdraws consent, consistent with that authority and within the boundary of
reasonable medical practice, to any therapeutic conduct, including any care,
service, or procedure to diagnose, maintain, or treat the physical or mental
condition of the vulnerable adult or, where permitted under law, to provide
nutrition and hydration parenterally or through intubation. This paragraph does not enlarge or diminish
rights otherwise held under law by:
(1) a vulnerable adult or a person acting on behalf of a vulnerable adult, including an involved family member, to consent to or refuse consent for therapeutic conduct; or
(2) a caregiver to offer or provide or refuse to offer or provide therapeutic conduct.
(f) (g) For
purposes of this section, a vulnerable adult is not abused for the sole reason
that the vulnerable adult, a person with authority to make health care
decisions for the vulnerable adult, or a caregiver in good faith selects and
depends upon spiritual means or prayer for treatment or care of disease or
remedial care of the vulnerable adult in lieu of medical care, provided that
this is consistent with the prior practice or belief of the vulnerable adult or
with the expressed intentions of the vulnerable adult.
(g) (h) For
purposes of this section, a vulnerable adult is not abused for the sole reason
that the vulnerable adult, who is not impaired in judgment or capacity by
mental or emotional dysfunction or undue influence, engages in consensual
sexual contact with:
(1) a person, including a facility staff person, when a consensual sexual personal relationship existed prior to the caregiving relationship; or
(2) a personal care attendant, regardless of whether the consensual sexual personal relationship existed prior to the caregiving relationship.
Sec. 21. Minnesota Statutes 2024, section 626.5572, is amended by adding a subdivision to read:
Subd. 3a. Adult
protective services. "Adult
protective services" means an adult protection program administered by a
county social services agency under the authority of the agency's governing
body or delegated to a Tribal government by the commissioner of human services
to support adults referred for maltreatment to live safely and with dignity.
Sec. 22. Minnesota Statutes 2024, section 626.5572, is amended by adding a subdivision to read:
Subd. 3b. Assessment. "Assessment" means a
structured process conducted by a county social services agency to review the
safety, strengths, and needs of an adult referred as vulnerable and maltreated
and accepted by the agency for adult protective services and to develop a
service plan to stop, prevent, and reduce risk of maltreatment for the adult
using standardized tools provided by the Department of Human Services.
Subd. 9. Financial exploitation. "Financial exploitation" means:
(a) In breach of a fiduciary obligation recognized elsewhere in law, including pertinent regulations, contractual obligations, documented consent by a competent person, or the obligations of a responsible party under section 144.6501, a person:
(1) engages in unauthorized expenditure of funds entrusted to the actor by the vulnerable adult which results or is likely to result in detriment to the vulnerable adult; or
(2) fails to use the financial resources of the vulnerable adult to provide food, clothing, shelter, health care, therapeutic conduct or supervision for the vulnerable adult, and the failure results or is likely to result in detriment to the vulnerable adult.
(b) In the absence of legal authority a person:
(1) willfully uses, withholds, or disposes of funds or property of a vulnerable adult;
(2) obtains for the actor
or another the performance of services by a third person the
vulnerable adult for the wrongful profit or advantage of the actor or
another to the detriment of the vulnerable adult;
(3) acquires possession or control of, or an interest in, funds or property of a vulnerable adult through the use of undue influence, harassment, duress, deception, or fraud; or
(4) forces, compels, coerces, or entices a vulnerable adult against the vulnerable adult's will to perform services for the profit or advantage of another.
(c) Nothing in this definition requires a facility or caregiver to provide financial management or supervise financial management for a vulnerable adult except as otherwise required by law.
Sec. 24. Minnesota Statutes 2024, section 626.5572, is amended by adding a subdivision to read:
Subd. 12a. Investigation. "Investigation" means
activities for fact gathering conducted by the lead investigative agency to
make a final determination of maltreatment.
Sec. 25. Minnesota Statutes 2025 Supplement, section 626.5572, subdivision 13, is amended to read:
Subd. 13. Lead investigative agency. "Lead investigative agency" is the primary administrative agency responsible for investigating reports made under section 626.557.
(a) The Department of Health is the lead investigative agency for facilities or services licensed or required to be licensed as hospitals, home care providers, nursing homes, boarding care homes, hospice providers, residential facilities that are also federally certified as intermediate care facilities that serve people with developmental disabilities, or any other facility or service not listed in this subdivision that is licensed or required to be licensed by the Department of Health for the care of vulnerable adults. "Home care provider" has the meaning provided in section 144A.43, subdivision 4, and applies when care or services are delivered in the vulnerable adult's home.
(b) The Department of Human Services is the lead investigative agency for facilities or services licensed or required to be licensed as adult day care, adult foster care, community residential settings, programs for people with disabilities, EIDBI agencies, family adult day services, mental health programs, mental health clinics, substance use
(c) The county social service
services agency adult protective services or its the
agency's designee or a federally recognized Indian Tribe that entered
into a contractual agreement with the commissioner of human services to operate
adult protective services is the lead investigative agency for all other
reports, including but not limited to reports involving vulnerable adults
receiving services from a personal care provider organization under section
256B.0659 or 256B.85.
Sec. 26. Minnesota Statutes 2024, section 626.5572, subdivision 17, is amended to read:
Subd. 17. Neglect. (a) "Neglect" means neglect by a caregiver or self-neglect.
(b) "Caregiver neglect" means the failure or omission by a caregiver to supply a vulnerable adult with care or services, including but not limited to, food, clothing, shelter, health care, or supervision which is:
(1) reasonable and necessary to obtain or maintain the vulnerable adult's physical or mental health or safety, considering the physical and mental capacity or dysfunction of the vulnerable adult; and
(2) which is not the result of an accident or therapeutic conduct.
(c) "Self-neglect" means neglect by a vulnerable adult of the vulnerable adult's own food, clothing, shelter, health care, financial management, or other services that are not the responsibility of a caregiver which a reasonable person would deem essential to obtain or maintain the vulnerable adult's health, safety, or comfort.
(d) For purposes of this section, a vulnerable adult is not neglected for the sole reason that:
(1) the vulnerable adult or a person with authority to make health care decisions for the vulnerable adult under sections 144.651, 144A.44, chapter 145B, 145C, or 252A, or sections 253B.03 or 524.5-101 to 524.5-502, refuses consent or withdraws consent, consistent with that authority and within the boundary of reasonable medical practice, to any therapeutic conduct, including any care, service, or procedure to diagnose, maintain, or treat the physical or mental condition of the vulnerable adult, or, where permitted under law, to provide nutrition and hydration parenterally or through intubation; this paragraph does not enlarge or diminish rights otherwise held under law by:
(i) a vulnerable adult or a person acting on behalf of a vulnerable adult, including an involved family member, to consent to or refuse consent for therapeutic conduct; or
(ii) a caregiver to offer or
provide or refuse to offer or provide therapeutic conduct; or
(2) the vulnerable adult, a person with authority to make health care decisions for the vulnerable adult, or a caregiver in good faith selects and depends upon spiritual means or prayer for treatment or care of disease or remedial care of the vulnerable adult in lieu of medical care, provided that this is consistent with the prior practice or belief of the vulnerable adult or with the expressed intentions of the vulnerable adult;
(3) the vulnerable adult, who is not impaired in judgment or capacity by mental or emotional dysfunction or undue influence, engages in consensual sexual contact with:
(i) a person including a facility staff person when a consensual sexual personal relationship existed prior to the caregiving relationship; or
(4) an individual makes an error in the provision of therapeutic conduct to a vulnerable adult which does not result in injury or harm which reasonably requires medical or mental health care; or
(5) an individual makes an error in the provision of therapeutic conduct to a vulnerable adult that results in injury or harm, which reasonably requires the care of a physician, and:
(i) the necessary care is provided in a timely fashion as dictated by the condition of the vulnerable adult;
(ii) if after receiving care, the health status of the vulnerable adult can be reasonably expected, as determined by the attending physician, to be restored to the vulnerable adult's preexisting condition;
(iii) the error is not part of a pattern of errors by the individual;
(iv) if in a facility, the error is immediately reported as required under section 626.557, and recorded internally in the facility;
(v) if in a facility, the facility identifies and takes corrective action and implements measures designed to reduce the risk of further occurrence of this error and similar errors; and
(vi) if in a facility, the actions required under items (iv) and (v) are sufficiently documented for review and evaluation by the facility and any applicable licensing, certification, and ombudsman agency.
(e) Nothing in this definition requires a caregiver, if regulated, to provide services in excess of those required by the caregiver's license, certification, registration, or other regulation.
(f) If the findings of an investigation by a lead investigative agency result in a determination of substantiated maltreatment for the sole reason that the actions required of a facility under paragraph (d), clause (5), item (iv), (v), or (vi), were not taken, then the facility is subject to a correction order. An individual will not be found to have neglected or maltreated the vulnerable adult based solely on the facility's not having taken the actions required under paragraph (d), clause (5), item (iv), (v), or (vi). This must not alter the lead investigative agency's determination of mitigating factors under section 626.557, subdivision 9c, paragraph (f).
Sec. 27. REPEALER.
Minnesota Statutes 2024,
section 626.557, subdivision 10, is repealed.
EFFECTIVE DATE. This
section is effective the day following final enactment.
ARTICLE 8
CONTINUITY OF CARE
Section 1. [245D.097]
HOUSING ACCOUNTS REQUIRED.
Subdivision 1. Housing
accounts required. If payment
passes between the license holder or any controlling individual of a licensed
program and a service recipient or an entity acting on the service recipient's
behalf for the purpose of obtaining or maintaining a living unit in a
multifamily housing building where the license holder delivers home and
community-based services licensed under this chapter and owns, leases, or has a
direct or indirect financial relationship with the property owner, the license
holder must for each service recipient:
(1) keep accurate
accounts of all money the license holder receives from the service recipient or
an entity acting on the service recipient's behalf;
(2)
deposit all money received in a specific service recipient account or
subaccount dedicated to receiving and paying each service recipient's housing
costs directly to the property owner, even if the property owner is the license
holder;
(3) provide monthly and
upon demand to the service recipient, or the entity acting on the service
recipient's behalf, and the service recipient's case manager a statement of the
amount of all money received from the service recipient or entity acting on the
service recipient's behalf, all money deposited in the service recipient's
account, and all withdrawals made from the service recipient's account; and
(4) provide upon demand
the same information described in clause (3) to the commissioner.
Subd. 2. Use
of money in the service recipient's account. The money in the service recipient's
account must be used exclusively for expenses associated with the service
recipient obtaining or maintaining a living unit in a multifamily housing
building.
Subd. 3. Application. This section continues to apply when a
service recipient chooses to not receive services from the license holder but
continues to make payments to the license holder for the purposes of obtaining
or maintaining a living unit.
Subd. 4. Other
laws. The license holder must
comply with the requirements of section 245A.04, subdivision 13.
Sec. 2. Minnesota Statutes 2024, section 245D.10, subdivision 3, is amended to read:
Subd. 3. Service suspension. (a) The license holder must establish policies and procedures for temporary service suspension that promote continuity of care and service coordination with the person and the case manager and with other licensed caregivers, if any, who also provide support to the person. The policy must include the requirements specified in paragraphs (b) to (f).
(b) The license holder must limit temporary service suspension to situations in which:
(1) the person's conduct poses an imminent risk of physical harm to self or others and either positive support strategies have been implemented to resolve the issues leading to the temporary service suspension but have not been effective and additional positive support strategies would not achieve and maintain safety, or less restrictive measures would not resolve the issues leading to the suspension;
(2) the person has emergent medical issues that exceed the license holder's ability to meet the person's needs; or
(3) the program has not been paid for services, except an interruption to the person's public benefits that has lasted less than 60 days does not constitute nonpayment.
(c) Prior to giving notice of temporary service suspension, the license holder must document actions taken to minimize or eliminate the need for service suspension. Action taken by the license holder must include, at a minimum:
(1) consultation with the person's support team or expanded support team to identify and resolve issues leading to issuance of the notice; and
(2) a request to the case manager for intervention services identified in section 245D.03, subdivision 1, paragraph (c), clause (1), or other professional consultation or intervention services to support the person in the program. This requirement does not apply to temporary suspensions issued under paragraph (b), clause (3).
(d) The notice of temporary service suspension must meet the following requirements:
(1) the license holder must notify the person or the person's legal representative and case manager in writing of the intended temporary service suspension. If the temporary service suspension is from residential supports and services as defined in section 245D.03, subdivision 1, paragraph (c), clause (3), or from integrated community supports as defined in section 245D.03, subdivision 1, paragraph (c), clause (8), the license holder must also notify the commissioner in writing;
(2) notice of temporary service suspension must be given on the first day of the service suspension; and
(3) the notice must include
the reason for the action, a summary of actions taken to minimize or eliminate
the need for temporary service suspension as required under this paragraph
paragraph (c), and why these measures failed to prevent the suspension.
(e) During the temporary suspension period, the license holder must:
(1) provide information requested by the person or case manager;
(2) work with the support team or expanded support team to develop reasonable alternatives to protect the person and others and to support continuity of care; and
(3) maintain information about the service suspension, including the written notice of temporary service suspension, in the service recipient record.
(f) If, based on a review by the person's support team or expanded support team, that team determines the person no longer poses an imminent risk of physical harm to self or others, the person has a right to return to receiving services. If, at the time of the service suspension or at any time during the suspension, the person is receiving treatment related to the conduct that resulted in the service suspension, the support team or expanded support team must consider the recommendation of the licensed health professional, mental health professional, or other licensed professional involved in the person's care or treatment when determining whether the person no longer poses an imminent risk of physical harm to self or others and can return to the program. If the support team or expanded support team makes a determination that is contrary to the recommendation of a licensed professional treating the person, the license holder must document the specific reasons why a contrary decision was made.
Sec. 3. Minnesota Statutes 2025 Supplement, section 245D.10, subdivision 3a, is amended to read:
Subd. 3a. Service termination. (a) The license holder must establish policies and procedures for service termination that promote continuity of care and service coordination with the person and the case manager and with other licensed caregivers, if any, who also provide support to the person. The policy must include the requirements specified in paragraphs (b) to (f).
(b) The license holder must permit each person to remain in the program or to continue receiving services and must not terminate services unless:
(1) the termination is necessary for the person's welfare and the license holder cannot meet the person's needs;
(3) the health of the person, others in the program, or staff would otherwise be endangered;
(4) the license holder has not been paid for services, except an interruption to a person's public benefits that has lasted less than 60 days does not constitute nonpayment;
(5) the program or license holder ceases to operate;
(6) the person has been terminated by the lead agency from waiver eligibility; or
(7) for state-operated community-based services, the person no longer demonstrates complex behavioral needs that cannot be met by private community-based providers identified in section 246C.11, subdivision 4a, paragraph (a), clause (1).
(c) Prior to giving notice of service termination, the license holder must document actions taken to minimize or eliminate the need for termination. Action taken by the license holder must include, at a minimum:
(1) consultation with the person's support team or expanded support team to identify and resolve issues leading to issuance of the termination notice;
(2) a request to the case manager for intervention services identified in section 245D.03, subdivision 1, paragraph (c), clause (1), or other professional consultation or intervention services to support the person in the program. This requirement does not apply to notices of service termination issued under paragraph (b), clauses (4) and (7); and
(3) for state-operated community-based services terminating services under paragraph (b), clause (7), the state‑operated community-based services must engage in consultation with the person's support team or expanded support team to:
(i) identify that the person no longer demonstrates complex behavioral needs that cannot be met by private community-based providers identified in section 246C.11, subdivision 4a, paragraph (a), clause (1);
(ii) provide notice of intent to issue a termination of services to the lead agency when a finding has been made that a person no longer demonstrates complex behavioral needs that cannot be met by private community-based providers identified in section 246C.11, subdivision 4a, paragraph (a), clause (1);
(iii) assist the lead agency and case manager in developing a person-centered transition plan to a private community-based provider to ensure continuity of care; and
(iv) coordinate with the lead agency to ensure the private community-based service provider is able to meet the person's needs and criteria established in a person's person-centered transition plan.
If, based on the best interests of the person, the circumstances at the time of the notice were such that the license holder was unable to take the action specified in clauses (1) and (2), the license holder must document the specific circumstances and the reason for being unable to do so.
(1) the license holder must notify the person or the person's legal representative and the case manager in writing of the intended service termination. If the service termination is from residential supports and services as defined in section 245D.03, subdivision 1, paragraph (c), clause (3), or from integrated community supports as defined in section 245D.03, subdivision 1, paragraph (c), clause (8), the license holder must also notify the commissioner in writing; and
(2) the notice must include:
(i) the reason for the action;
(ii) except for a service termination under paragraph (b), clause (5), a summary of actions taken to minimize or eliminate the need for service termination or temporary service suspension as required under paragraph (c), and why these measures failed to prevent the termination or suspension;
(iii) the person's right to appeal the termination of services under
section 256.045, subdivision 3, paragraph (a); and
(iv) the person's right to seek a temporary order staying the termination of services according to the procedures in section 256.045, subdivision 4a or 6, paragraph (c).
(e) Notice of the proposed termination of service, including those situations that began with a temporary service suspension, must be given at least 90 days prior to termination of services under paragraph (b), clause (7), 60 days prior to termination when a license holder is providing intensive supports and services identified in section 245D.03, subdivision 1, paragraph (c), and 30 days prior to termination for all other services licensed under this chapter. This notice may be given in conjunction with a notice of temporary service suspension under subdivision 3.
(f) During the service termination notice period, the license holder must:
(1) work with the support team or expanded support team to develop reasonable alternatives to protect the person and others and to support continuity of care;
(2) provide information requested by the person or case manager; and
(3) maintain information about the service termination, including the written notice of intended service termination, in the service recipient record.
(g) For notices issued under paragraph (b), clause (7), the lead agency shall provide notice to the commissioner and the Direct Care and Treatment executive board at least 30 days before the conclusion of the 90-day termination period, if an appropriate alternative provider cannot be secured. Upon receipt of this notice, the commissioner and the executive board shall reassess whether a private community-based service can meet the person's needs. If the commissioner determines that a private provider can meet the person's needs, the executive board shall, if necessary, extend notice of service termination until placement can be made. If the commissioner determines that a private provider cannot meet the person's needs, the executive board shall rescind the notice of service termination and re‑engage with the lead agency in service planning for the person.
(h) For state-operated community-based services, the license holder shall prioritize the capacity created within the existing service site by the termination of services under paragraph (b), clause (7), to serve persons described in section 246C.11, subdivision 4a, paragraph (a), clause (1).
Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have the meanings given.
(b) "Community-living
setting" means a single-family home or multifamily dwelling unit where a
service recipient or a service recipient's family owns or rents and maintains
control over the individual unit as demonstrated by a lease agreement. Community-living setting does not include a
home or dwelling unit that the service provider of the service
recipient's services owns, operates, or leases or in which the service
provider of the service recipient's services has a direct or indirect
financial interest.
(c) "Controlling individual" has the meaning given in section 245A.02, subdivision 5a.
(d) "License holder" has the meaning given in section 245A.02, subdivision 9.
Sec. 5. Minnesota Statutes 2024, section 256B.492, subdivision 3, is amended to read:
Subd. 3. Community-living settings. (a) Individuals receiving services under a home and community-based waiver under section 256B.092 or 256B.49 may receive services in community-living settings. Community-living settings must meet the requirements of subdivision 2, paragraph (a), clause (1).
(b) For the purposes of
this section, direct financial interest exists if payment passes between the
license holder or any controlling individual of a licensed program and the
service recipient or an entity acting on the service recipient's behalf for the
purpose of obtaining or maintaining a dwelling.
For the purposes of this section, indirect financial interest exists if
the license holder or any controlling individual of a licensed program has an
ownership or investment interest in the entity that owns, operates, leases, or
otherwise receives payment from the service recipient or an entity acting on
the service recipient's behalf for the purpose of obtaining or maintaining a
dwelling. Neither a direct nor an
indirect financial interest exists if the service recipient is receiving
services from a license holder or a licensed program that is not the license
holder or a licensed program that owns, operates, leases, or has a direct or
indirect financial interest in the setting in which the service recipient's
services are being delivered.
(c) To ensure a service recipient or the service recipient's family maintains control over the home or dwelling unit, community-living settings are subject to the following requirements:
(1) service recipients must not be required to receive services or share services;
(2) service recipients must not be required to have a disability or specific diagnosis to live in the community‑living setting;
(3) service recipients may hire service providers of their choice;
(4) service recipients may choose whether to share their household and with whom;
(5) the home or multifamily dwelling unit must include living, sleeping, bathing, and cooking areas;
(6) service recipients must have lockable access and egress;
(7) service recipients must be free to receive visitors and leave the settings at times and for durations of their own choosing;
(8) leases must comply with chapter 504B;
(9) landlords must not charge different rents to
tenants who are receiving home and community-based services; and
(10) access to the greater community must be easily facilitated based on the service recipient's needs and preferences.
(d) Nothing in this section prohibits a service recipient from having another person or entity not affiliated with the service provider cosign a lease. Nothing in this section prohibits a service recipient, during any period in which a service provider has cosigned the service recipient's lease, from modifying services with an existing cosigning service provider and, subject to the approval of the landlord, maintaining a lease cosigned by the service provider. Nothing in this section prohibits a service recipient, during any period in which a service provider has cosigned the service recipient's lease, from terminating services with the cosigning service provider, receiving services from a new service provider, or, subject to the approval of the landlord, maintaining a lease cosigned by the new service provider.
(e) A lease cosigned by a service provider meets the requirements of paragraph (b) if the service recipient and service provider develop and implement a transition plan which must provide that, within two years of cosigning the initial lease, the service provider shall transfer the lease to the service recipient and other cosigners, if any.
(f) In the event the landlord has not approved the transfer of the lease within two years of the service provider cosigning the initial lease, the service provider must submit a time-limited extension request to the commissioner of human services to continue the cosigned lease arrangement. The extension request must include:
(1) the reason the landlord denied the transfer;
(2) the plan to overcome the denial to transfer the lease;
(3) the length of time needed to successfully transfer the lease, not to exceed an additional two years;
(4) a description of how the transition plan was followed, what occurred that led to the landlord denying the transfer, and what changes in circumstances or condition, if any, the service recipient experienced; and
(5) a revised transition plan to transfer the cosigned lease between the service provider and the service recipient to the service recipient.
(g) The commissioner must approve an extension under paragraph (f) within sufficient time to ensure the continued occupancy by the service recipient.
ARTICLE 9
MISCELLANEOUS POLICY
Section 1. Minnesota Statutes 2025 Supplement, section 15.471, subdivision 6, is amended to read:
Subd. 6. Party. (a) Except as modified by paragraph (b), "party" means a person named or admitted as a party, or seeking and entitled to be admitted as a party, in a court action or contested case proceeding, or a person admitted by an administrative law judge for limited purposes, and who is:
(1) an unincorporated business, partnership, corporation, association, or organization, having not more than 500 employees at the time the civil action was filed or the contested case proceeding was initiated; and
(b) "Party"
also includes a partner, officer, shareholder, member, or owner of an entity
described in paragraph (a), clauses (1) and (2).
(c) " Party"
does not include a person providing services pursuant to licensure or
reimbursement on a cost basis by the Department of Health, the
Department of Human Services, or Direct Care and Treatment when that
person is named or admitted or seeking to be admitted as a party in a matter
which involves the licensing or reimbursement rates, procedures, or methodology
applicable to those services.
Sec. 2. Minnesota Statutes 2024, section 97B.001, subdivision 4, is amended to read:
Subd. 4. Entering posted land prohibited; signs. (a) Except as provided in subdivision 6, a person may not:
(1) enter, for outdoor recreation purposes, any land that is posted under this subdivision without first obtaining permission of the owner, occupant, or lessee; or
(2) knowingly enter, for outdoor recreation purposes, any land that is posted under this subdivision without first obtaining permission of the owner, occupant, or lessee. A person who violates this clause is subject to the penalty provided in section 97A.315, subdivision 1, paragraph (b).
(b) The owner, occupant, or lessee of private land, or an authorized manager of public land may prohibit outdoor recreation on the land by posting signs once each year that:
(1) state "no trespassing" or similar terms;
(2) display letters at least two inches high;
(3) either:
(i) are signed by the owner, occupant, lessee, or authorized manager; or
(ii) include the legible name and telephone number of the owner, occupant, lessee, or authorized manager; and
(4) either:
(i) are at intervals of 1,000 feet or less along the boundary of the area, or in a wooded area where boundary lines are not clear, at intervals of 500 feet or less; or
(ii) mark the primary corners of each parcel of land and access roads and trails at the point of entrance to each parcel of land except that corners only accessible through agricultural land need not be posted.
(c) A person may not erect
a sign that prohibits outdoor recreation or trespassing act under
paragraph (b) or (d) where the person does not have a property right,
title, or interest to use the land.
(d) As
an alternative to posting signage under paragraph (b), the owner, occupant, or
lessee of private land, or an authorized manager of public land, may prohibit
outdoor recreation on the land by:
(1) applying purple paint
to trees along the perimeter of the area to which the person wants to prohibit
entrance. Paint applied under this
paragraph must be applied:
(i) at least three feet
off the ground;
(ii) to trees that are at
least one inch wide; and
(iii) in a strip that is
at least eight inches tall; and
(2) posting signs once
each year that mark the primary corners of the area to which the person wants
to prohibit entrance.
Sec. 3. Minnesota Statutes 2024, section 256B.04, subdivision 24, is amended to read:
Subd. 24. Medicaid waiver requests and state plan amendments; notice; public comments. (a) The commissioner shall notify the chairs and ranking minority members of the legislative committees with jurisdiction over medical assistance at least 30 days before submitting a new Medicaid waiver request to the federal government.
(b) Prior to submitting any Medicaid waiver request or Medicaid state plan amendment to the federal government for approval, the commissioner shall publish the text of the waiver request or state plan amendment, and a summary of and explanation of the need for the request, on the agency's website and provide a 30-day public comment period. The commissioner shall notify the public of the availability of this information through the agency's electronic subscription service. The commissioner shall publish the text of all public comments on the agency's website and consider public comments when preparing the final waiver request or state plan amendment that is to be submitted to the federal government for approval.
(c) The commissioner shall also publish on the agency's website notice of any federal decision related to the state request for approval, within 30 days of the decision. This notice must describe any modifications to the state request that have been agreed to by the commissioner as a condition of receiving federal approval.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 4. Minnesota Statutes 2024, section 256B.04, is amended by adding a subdivision to read:
Subd. 24a. Medicaid
waiver requests and state plan amendments; prohibited actions. Without prior enactment of legislative
authorization, the commissioner must not take the following actions:
(1) terminate a medical
assistance program, waiver, or benefit;
(2) request federal
assistance with terminating a medical assistance program, waiver, or benefit;
or
(3) substantially
redesign a medical assistance program, waiver, or benefit.
Sec. 5. Minnesota Statutes 2024, section 256B.04, is amended by adding a subdivision to read:
Subd. 24b. Medicaid
waiver requests and state plan amendments; legislative authorization. (a) The commissioner must notify the
chairs and ranking minority members of the standing committees of the house of
representatives and senate with jurisdiction over medical assistance policy and
finance at least 60 days prior to taking one of the actions listed under
subdivision 24a.
(b)
Upon notification, the standing committees of the house of representatives and
senate with jurisdiction over medical assistance policy and finance must
schedule a hearing on the proposed action within 30 days of notification.
(c) If the standing
committees of the house of representatives and the standing committees of the
senate with jurisdiction over medical assistance policy and finance all vote to
advise the commissioner that a proposed action should not be implemented as proposed,
the commissioner must not implement the proposed action until the legislature
adjourns the annual legislative session that began after the vote of the
committees. A committee vote under this
section must be by a majority of the committee.
Sec. 6. Minnesota Statutes 2024, section 256B.057, subdivision 9, is amended to read:
Subd. 9. Employed persons with disabilities. (a) Medical assistance may be paid for a person who is employed and who:
(1) but for excess earnings or assets meets the definition of disabled under the Supplemental Security Income program; and
(2) pays a premium and other obligations under paragraph (d).
(b) For purposes of eligibility, there is a $65 earned income disregard. To be eligible for medical assistance under this subdivision, a person must have more than $65 of earned income, be receiving an unemployment insurance benefit under chapter 268 that the person began receiving while eligible under this subdivision, or be receiving family and medical leave benefits under chapter 268B that the person began receiving while eligible under this subdivision. A person who is self-employed must file and pay all applicable taxes. Any spousal income shall be disregarded for purposes of eligibility and premium determinations.
(c) After the month of enrollment, a person enrolled in medical assistance under this subdivision who would otherwise be ineligible and be disenrolled due to one of the following circumstances may retain eligibility for up to four consecutive months after a month of job loss if the person:
(1) is temporarily unable to work and without receipt of earned income due to a medical condition, as verified by a physician, advanced practice registered nurse, or physician assistant; or
(2) loses employment for reasons not attributable to the enrollee, and is without receipt of earned income.
To receive a four-month extension of continued eligibility under this paragraph, enrollees must verify the medical condition or provide notification of job loss, continue to meet all other eligibility requirements, and continue to pay all calculated premium costs.
(d) All enrollees must pay a premium to be eligible for medical assistance under this subdivision, except as provided under clause (5).
(1) An enrollee must pay the greater of a $35 premium or the premium calculated based on the person's gross earned and unearned income and the applicable family size using a sliding fee scale established by the commissioner, which begins at one percent of income at 100 percent of the federal poverty guidelines and increases to 7.5 percent of income for those with incomes at or above 300 percent of the federal poverty guidelines.
(2) Annual adjustments in the premium schedule based upon changes in the federal poverty guidelines shall be effective for premiums due in July of each year.
(4) Increases in benefits under title II of the Social Security Act shall not be counted as income for purposes of this subdivision until July 1 of each year.
(5) Effective July 1, 2009, American Indians are exempt from paying premiums as required by section 5006 of the American Recovery and Reinvestment Act of 2009, Public Law 111-5. For purposes of this clause, an American Indian is any person who meets the definition of Indian according to Code of Federal Regulations, title 42, section 447.50.
(e) A person's eligibility and premium shall be determined by the local county agency. Premiums must be paid to the commissioner. All premiums are dedicated to the commissioner.
(f) Any required premium shall be determined at application and redetermined at the enrollee's 12-month income review or when a change in income or household size is reported. Enrollees must report any change in income or household size within 30 days of when the change occurs. A decreased premium resulting from a reported change in income or household size shall be effective the first day of the next available billing month after the change is reported. Except for changes occurring from annual cost-of-living increases, a change resulting in an increased premium shall not affect the premium amount until the next 12-month review.
(g) Premium payment is due upon notification from the commissioner of the premium amount required. Premiums may be paid in installments at the discretion of the commissioner.
(h) Nonpayment of the premium shall result in denial or termination of medical assistance unless the person demonstrates good cause for nonpayment. "Good cause" means an excuse for the enrollee's failure to pay the required premium when due because the circumstances were beyond the enrollee's control or not reasonably foreseeable. The commissioner shall determine whether good cause exists based on the weight of the supporting evidence submitted by the enrollee to demonstrate good cause. The commissioner must not determine that good cause exists for a month for which the premium has already been paid. Except when an installment agreement is accepted by the commissioner, all persons disenrolled for nonpayment of a premium must pay any past due premiums as well as current premiums due prior to being reenrolled. Nonpayment shall include payment with a returned, refused, or dishonored instrument. The commissioner may require a guaranteed form of payment as the only means to replace a returned, refused, or dishonored instrument.
(i) For enrollees whose income does not exceed 200 percent of the federal poverty guidelines and who are also enrolled in Medicare, the commissioner shall reimburse the enrollee for Medicare part B premiums under section 256B.0625, subdivision 15, paragraph (a).
(j) The commissioner is authorized to determine that a premium amount was calculated or billed in error, make corrections to financial records and billing systems, and refund premiums collected in error.
Sec. 7. Minnesota Statutes 2024, section 256B.0625, subdivision 4, is amended to read:
Subd. 4. Outpatient
and physician-directed clinic services. Medical
assistance covers outpatient hospital or physician-directed clinic services. The All services provided by
physician-directed clinic staff shall include at least two physicians and
all services shall must be provided under the direct
supervision direction of a physician. Hospital outpatient departments are subject
to the same limitations and reimbursements as other enrolled vendors for all
services, except initial triage, emergency services, and services not provided
or immediately available in clinics, physicians' offices, or by other enrolled
providers. "Emergency
services" means those medical services required for the immediate
diagnosis and treatment of medical conditions that, if not immediately
diagnosed and treated, could
EFFECTIVE DATE. This
section is effective upon federal approval.
Sec. 8. DIRECTION
TO COMMISSIONER; RULEMAKING.
The commissioner of
human services must amend Minnesota Rules, part 9505.2165, subpart 4, item C,
to remove the citation to United States Code, title 42, section
1320a-7b(b)(3)(D), and insert a citation to United States Code, title 42,
section 1320a-7b(b). The commissioner
may use the procedure under Minnesota Statutes, section 14.388, subdivision 1,
clause (3), for changes to Minnesota Rules pursuant to this section. Minnesota Statutes, section 14.386, does not
apply to rules adopted pursuant to this section except as provided under
Minnesota Statutes, section 14.388.
Sec. 9. DIRECTION
TO COMMISSIONER; UNREDACTED INITIAL OPTUM REPORTS.
(a) For purposes of this
section, "initial Optum reports" means the reports produced by Optum,
Inc., under contract with the Department of Human Services and announced in the
news release from the department on February 6, 2026.
(b) Notwithstanding any
law to the contrary, upon a joint request by the chairs and ranking minority
members of a legislative committee with jurisdiction over human services policy
and finance, the commissioner of human services must immediately release the
initial Optum reports to the members of that legislative committee in the
reports' entirety without redactions or edits, except for redactions requested
by Optum to protect proprietary information.
Legislators or legislative staff who receive initial Optum reports under
this section must not disseminate or publicize any not public data, as defined
in Minnesota Statutes, section 13.02, subdivision 8a, that the reports contain.
EFFECTIVE DATE. This
section is effective 14 days following final enactment.
Sec. 10. OPTUM
PROHIBITED FROM DISSEMINATING PRIVATE DATA.
Optum, Inc., must not sell, share, or disseminate any private data on individuals, as defined in Minnesota Statutes, section 13.02, subdivision 12, that Optum receives under or incidental to Optum's contract or engagement with the Department of Human Services pursuant to the governor's Executive Order No. 25-10."
Amend the title accordingly
The
motion prevailed and the amendment was adopted.
SUSPENSION
OF RULES
Noor moved that rule 3.33 relating to
Amendments Must be Prefiled be suspended for the purpose of offering the Noor
amendment to S. F. No. 476, the unofficial engrossment, as amended. The motion prevailed.
Page 81, line 14, delete "retroactively from" and delete "2026" and insert "2027"
Page 81, line 15, delete "2026" and insert "2027"
Page 87, delete section 39 and insert:
"Sec. 39. Laws 2024, chapter 125, article 8, section 2, subdivision 4, is amended to read:
|
Subd. 4. Central
Office; Aging and Disability Services |
|
(2,664,000) |
|
4,164,000 |
(a) Tribal Vulnerable Adult and Developmental Disabilities Targeted Case Management Medical Assistance Benefit. $200,000 in fiscal year 2025 is for a contract to develop a Tribal vulnerable adult and developmental disabilities targeted case management medical assistance benefit under Minnesota Statutes, section 256B.0924. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2027.
(b) Disability Services Person-Centered Engagement and Navigation Study. $600,000 in fiscal year 2025 is for the disability services person-centered engagement and navigation study. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2026.
(c) Pediatric Hospital-to-Home Transition Pilot Program Administration. $300,000 in fiscal year 2025 is for a
contract related to the pediatric hospital-to-home transition pilot program. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section
16A.28, subdivision 3, this appropriation is available until June 30, 2027
2028.
(d) Reimbursement for Community-First Services and Supports Workers Report. $250,000 in fiscal year 2025 is for a contract related to the reimbursement for community-first services and supports workers report. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2026.
(e) Carryforward Authority. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, $758,000 in fiscal year 2025 is available until June 30, 2026, and $2,687,000 in fiscal year 2025 is available until June 30, 2027.
(f) Base Level Adjustment. The general fund base is increased by $340,000 in fiscal year 2026 and increased by $340,000 in fiscal year 2027.
|
Subd. 14. Grant
Programs; Disabilities Grants |
|
1,650,000 |
|
9,574,000 |
(a) Capital Improvement for Accessibility. $400,000 in fiscal year 2025 is for a payment to Anoka County to make capital improvements to existing space in the Anoka County Human Services building in the city of Blaine, including making bathrooms fully compliant with the Americans with Disabilities Act with adult changing tables and ensuring barrier-free access for the purposes of improving and expanding the services an existing building tenant can provide to adults with developmental disabilities. This is a onetime appropriation.
(b) Dakota County Disability Services Workforce Shortage Pilot Project. $500,000 in fiscal year 2025 is for a grant to Dakota County for innovative solutions to the disability services workforce shortage. Up to $250,000 of this amount must be used to develop and test an online application for matching requests for services from people with disabilities to available staff, and up to $250,000 of this amount must be used to develop a communities‑for-all program that engages businesses, community organizations, neighbors, and informal support systems to promote community inclusion of people with disabilities. By October 1, 2026, the commissioner shall report the outcomes and recommendations of these pilot projects to the chairs and ranking minority members of the legislative committees with jurisdiction over human services finance and policy. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2027.
(c) Pediatric Hospital-to-Home Transition Pilot Program. $1,040,000 in fiscal year 2025 is for the
pediatric hospital-to-home pilot program.
This is a onetime appropriation. Notwithstanding
Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is
available until June 30, 2027 2028.
(d) Artists With Disabilities Support. $690,000 in fiscal year 2025 is for a payment to a nonprofit organization licensed under Minnesota Statutes, chapter 245D, located on Minnehaha Avenue West in Saint Paul, and that supports artists with disabilities in creating visual and performing art that challenges society's views of persons with disabilities. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2027.
(e) Emergency Relief Grants for Rural EIDBI Providers. $600,000 in fiscal year 2025 is for emergency relief grants for EIDBI providers. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2027.
(g) Electronic Visit Verification Implementation Grants. $864,000 in fiscal year 2025 is for electronic visit verification implementation grants. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2027.
(h) Aging and Disability Services for Immigrant and Refugee Communities. $250,000 in fiscal year 2025 is for a payment to SEWA-AIFW to address aging, disability, and mental health needs for immigrant and refugee communities. This is a onetime appropriation and is available until June 30, 2027.
(i) License Transition Support for Small Disability Waiver Providers. $3,150,000 in fiscal year 2025 is for license transition payments to small disability waiver providers. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2027.
(j) Own home services provider capacity-building grants. $1,519,000 in fiscal year 2025 is for the own home services provider capacity-building grant program. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2027. This is a onetime appropriation.
(k) Continuation of Centers for Independent Living HCBS Access Grants. $311,000 in fiscal year 2024 is for continued funding of grants awarded under Laws 2021, First Special Session chapter 7, article 17, section 19, as amended by Laws 2022, chapter 98, article 15, section 15. This is a onetime appropriation and is available until June 30, 2025.
(l) Base Level Adjustment. The general fund base is increased by $811,000 in fiscal year 2026 and increased by $811,000 in fiscal year 2027."
Page 88, after line 18, insert:" (c) Laws 2025, First Special Session chapter 3, article 18, section 3, is repealed."
Page 91, delete section 3 and insert:
"Sec. 3. [245.4908]
EARLY CHILDHOOD MENTAL HEALTH CONSULTATION GRANTS.
Subdivision 1. Establishment. The commissioner of human services
must establish an early childhood mental health consultation grant program to
support the delivery of specialized mental health care consultation to child
care, social services, educational, and health programs that serve children
five years of age or younger.
Subd. 2. Eligible
applicants. An applicant is
eligible for an early childhood mental health consultation grant under this
section if the applicant is:
(1) a mental health
clinic certified under section 245I.20;
(2) a community mental
health center under section 256B.0625, subdivision 5;
(3) an Indian health
service facility or a facility owned and operated by a Tribe or Tribal
organization operating under United States Code, title 25, section 5321;
(4) a provider of
children's therapeutic services and supports, as defined in section 256B.0943;
or
(5) an agency with
expertise in infant and early childhood mental health that has the competency
to provide early childhood mental health consultation and training.
Subd. 3. Allowable
grant activities and related expenses.
Grant money must be used to provide early childhood mental health
consultation, including but not limited to:
(1) supporting early
identification of social, emotional, and behavioral concerns for children five
years of age or younger through observation, screening support, and guidance to
early childhood professionals;
(2) developing and
delivering training to early childhood professionals that includes
evidence-based or evidence‑informed clinical practices related to infant and
early childhood mental health, and train-the-trainer models to build capacity
for grantees to train the grantee's staff; and
(3) providing direct or
reflective consultation early childhood professionals.
Subd. 4. Data
collection and outcome measurement. (a)
The commissioner must consult with grantees to develop ongoing outcome measures
for program capacity and performance.
(b) Grantees must
collect and report the data required under paragraph (c) quarterly to the
commissioner in a form and manner specified by the commissioner, for the
purpose of evaluating the effectiveness of the grant program.
(c) Grantees must
provide the following data to the commissioner:
(1) the number of sites,
programs, and early childhood professionals served by the grantee;
(2) demographics of
participants served by the grantee; and
(3) data to demonstrate
outcomes related to improving early childhood professionals' ability to support
the mental, social, and emotional development of young children.
EFFECTIVE DATE. This section is effective July 1, 2026."
Page 100, delete section 15
Page 101, delete section 16
Page 104, delete section 18
Page 113, before line 1, insert:
"Sec. 27. Minnesota Statutes 2024, section 256B.0623, subdivision 6, is amended to read:
Subd. 6. Required supervision. (a) A treatment supervisor providing treatment supervision required by section 245I.06 must:
(1) meet with staff receiving treatment supervision at least monthly to discuss treatment topics of interest and treatment plans of recipients; and
(2) meet at least monthly with the directing clinical trainee or mental health practitioner, if there is one, to review needs of the adult rehabilitative mental health services program, review staff on-site observations and evaluate mental health rehabilitation workers, plan staff training, review program evaluation and development, and consult with the directing clinical trainee or mental health practitioner.
(b) A treatment
supervisor providing treatment supervision required by section 245I.06 must
complete an attestation form in a manner provided by the commissioner. This form must be completed at least
annually, and updated upon any change in the number of organizations the
treatment supervisor is affiliated with under this section or section 256B.0943. The attestation must include:
(1) the total number of
staff and full-time equivalent staff the treatment supervisor supervises,
across all programs under this section or section 256B.0943, which must not
exceed 20 full-time equivalent staff; and
(2) the name and
national provider identifier of each organization for which the treatment
supervisor provides supervision under this section or section 256B.0943, which
must not exceed ten organizations.
(c) The commissioner may
grant an exception to the limitations in paragraph (b), clauses (1) and (2). The commissioner must develop criteria and a
standardized process for evaluating exception requests and may rescind approval
of an exception if the treatment supervisor fails to comply with applicable
program standards.
(b) (d) An
adult rehabilitative mental health services provider entity must have a
treatment director who is a mental health professional, clinical trainee,
certified rehabilitation specialist, or mental health practitioner. The treatment director must:
(1) ensure the direct observation of mental health rehabilitation workers required by section 245I.06, subdivision 3, is provided;
(2) ensure immediate availability by phone or in person for consultation by a mental health professional, certified rehabilitation specialist, clinical trainee, or a mental health practitioner to the mental health rehabilitation worker during service provision;
(3) model service practices which: respect the recipient, include the recipient in planning and implementation of the individual treatment plan, recognize the recipient's strengths, collaborate and coordinate with other involved parties and providers;
(4) ensure that clinical trainees, mental health practitioners, and mental health rehabilitation workers are able to effectively communicate with the recipients, significant others, and providers; and
(c) (e) A
clinical trainee or mental health practitioner who is providing treatment
direction for a provider entity must receive treatment supervision at least
monthly to:
(1) identify and plan for general needs of the recipient population served;
(2) identify and plan to address provider entity program needs and effectiveness;
(3) identify and plan provider entity staff training and personnel needs and issues; and
(4) plan, implement, and evaluate provider entity quality improvement programs.
EFFECTIVE DATE. This section is effective July 1, 2026."
Page 125, lines 14 and 15, delete the new language
Page 127, after line 9, insert:
"Sec. 36. Minnesota Statutes 2024, section 256B.0943, is amended by adding a subdivision to read:
Subd. 14. Treatment
supervision limits. (a) A
treatment supervisor providing treatment supervision required by section
245I.06 must complete an attestation form in a manner provided by the
commissioner. This form must be
completed at least annually, and updated upon any change in the number of
organizations the treatment supervisor is affiliated with under this section or
section 256B.0623. The attestation must
include:
(1) the total number of
staff and full-time equivalent staff the treatment supervisor supervises,
across all programs under this section or section 256B.0623, which must not
exceed 20 full-time equivalent staff; and
(2) the name and
national provider identifier of each organization for which the treatment
supervisor provides supervision under this section or section 256B.0623, which
must not exceed ten organizations.
(b) The commissioner may
grant an exception to the limitations in paragraph (a), clauses (1) and (2). The commissioner must develop criteria and a
standardized process for evaluating exception requests and may rescind approval
of an exception if the treatment supervisor fails to comply with applicable
program standards.
EFFECTIVE DATE. This section is effective July 1, 2026."
Page 140, line 11, delete "Adult protective services must receive referrals"
Page 140, delete lines 12 to 18
Page 140, line 19, delete everything before "The"
Page 145, line 11, delete everything after "when" and insert "the county is the lead investigative agency."
Page 145, delete lines 12 to 14
Page 145, line 15, delete "in-person"
Page 146, line 9, delete "abuse" and insert "exploitation"
Page 149, line 12, delete everything after the period
Page 149, delete lines 13 and 14
Page 155, line 24, strike "which results or is likely to result in detriment to the vulnerable adult"
Page 170, line 9, delete "enactment of" and before the comma, insert "under subdivision 24b"
Page 170, line 11, after the semicolon, insert "or"
Page 170, line 13, delete "; or" and insert a period
Page 170, delete line 14
Renumber the sections in sequence and correct the internal references
The
motion prevailed and the amendment was adopted.
S. F. No. 476, A bill for
an act relating to state government; modifying policy provisions relating to
continuity of care following a payment withhold, aging and disability services,
adult protective services, substance use disorder treatment, Direct Care and
Treatment, Department of Health regulation of long-term care services, and
property markings; requiring and prohibiting certain actions relating to Optum
reports; making technical and conforming changes; requiring reports; amending Minnesota
Statutes 2024, sections 3.7381; 13.04, subdivision 4a; 13.384, subdivision 3;
13.46, subdivision 1, by adding a subdivision; 97B.001, subdivision 4; 144.56,
subdivision 2b; 144.586, subdivision 2; 144.6502, subdivision 1; 144.6512,
subdivision 6; 144A.161, subdivisions 1a, 8; 144A.472, subdivision 5; 144A.72,
subdivision 2; 144G.08, by adding subdivisions; 144G.19, by adding a
subdivision; 144G.31, subdivision 6; 144G.40, subdivision 2; 144G.41,
subdivisions 1, 2; 144G.60, subdivision 4; 144G.61, subdivision 2; 144G.92,
subdivision 5; 152.137, subdivision 6; 157.17, subdivisions 2, 5; 182.6545;
245A.03, by adding subdivisions; 245A.11, subdivision 2a; 245D.09, subdivision
5; 245D.10, subdivision 3; 245F.02, subdivision 17; 245F.15, subdivision 7;
245G.06, subdivision 4; 245G.11, subdivision 8; 253B.03, subdivision 6, by
adding a subdivision; 253B.18, subdivision 14; 254B.052, subdivision 1, by
adding a subdivision; 256.9752, as amended; 256B.04, subdivision 24, by adding
a subdivision; 256B.0658; 256B.0759, subdivision 3; 256B.0911, subdivision 32;
256B.0924, subdivisions 3, 5, 7, by adding a subdivision; 256B.4905,
subdivision 2a; 256B.492, subdivisions 1, 3; 256B.493, subdivision 1; 256B.851,
subdivision 8; 256L.03, subdivision 1; 256R.481; 256S.205, subdivision 1;
256S.21, subdivision 3; 295.50, subdivision 4; 524.5-409, subdivision 2;
626.557, subdivisions 9, 9a, 12b, by adding subdivisions; 626.5572,
subdivisions 2, 9, 17, by adding subdivisions; Minnesota Statutes 2025
Supplement, sections 13.46, subdivision 2; 144A.474, subdivision 11; 245C.03,
subdivision 6; 245C.04, subdivision 6; 245C.10, subdivision 6; 245D.091,
subdivisions 2, 3; 245D.10, subdivision 3a; 245F.08, subdivision 3; 245G.11,
subdivision 7; 253B.18, subdivision 6; 254A.03, subdivision 3; 254B.0501,
subdivision 6; 254B.0505, subdivision 8, by adding subdivisions; 256B.04,
subdivision 21; 256B.0701, subdivision 9; 256B.0759, subdivision 4; 256B.0911,
subdivision 13; 256B.0924, subdivision 6; 256B.4914, subdivisions 8, 10a;
256S.205, subdivision 2; 295.50, subdivision 9b; 524.5-311; 626.5572,
subdivision 13; proposing coding for new law in Minnesota Statutes, chapters
144A; 144G; 245D; 246C; repealing Minnesota Statutes 2024, sections 245A.03,
subdivision 7; 256B.051,
subdivisions 1, 4, 7; 256B.0759,
subdivisions 2, 5; 256B.5012, subdivisions 4, 5, 6, 7, 8, 9, 10, 11, 12, 14,
15, 16; 626.557, subdivision 10; Minnesota Statutes 2025 Supplement, sections
254B.052, subdivision 6; 256B.051, subdivisions 2, 3, 5, 6, 6a, 6b, 8, 9, 10;
Laws 2025, First Special Session chapter 3, article 18, section 3.
The bill was read for the third time, as
amended, and placed upon its final passage.
The question was taken on the passage of
the bill and the roll was called. There
were 93 yeas and 39 nays as follows:
Those who voted in the affirmative were:
Acomb
Agbaje
Anderson, P. H.
Bahner
Baker
Berg
Bierman
Buck
Carroll
Cha
Clardy
Coulter
Curran
Davids
Elkins
Falconer
Feist
Finke
Fischer
Frazier
Frederick
Freiberg
Gillman
Gomez
Gottfried
Greene
Greenman
Hansen, R.
Hanson, J.
Heintzeman
Hicks
Hill
Hollins
Howard
Huot
Hussein
Igo
Johnson, P.
Johnson, W.
Jones
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kozlowski
Kraft
Kresha
Lee, F.
Lee, K.
Lee, X.
Liebling
Lillie
Long
Luger-Nikolai
Mahamoud
Moller
Momanyi-Hiltsley
Nash
Nelson
Niska
Noor
Norris
Novotny
O'Driscoll
Pérez-Vega
Perryman
Pinto
Pursell
Rehm
Rehrauer
Repinski
Reyer
Schomacker
Schwartz
Sencer-Mura
Sexton
Skraba
Smith
Stephenson
Swedzinski
Tabke
Torkelson
Vang
Virnig
Warwas
West
Witte
Wolgamott
Xiong
Youakim
Zeleznikar
Spk. Demuth
Those who voted in the negative were:
Allen
Altendorf
Anderson, P. E.
Backer
Bakeberg
Bennett
Bliss
Burkel
Davis
Dippel
Dotseth
Duran
Engen
Fogelman
Franson
Gander
Gordon
Harder
Hudson
Jacob
Joy
Knudsen
Koznick
Lawrence
McDonald
Mekeland
Mueller
Murphy
Olson
Quam
Rarick
Roach
Robbins
Rymer
Schultz
Scott
Stier
Van Binsbergen
Wiener
The
bill was passed, as amended, and its title agreed to.
H. F. No. 4546, A bill for
an act relating to human services; adjustments to forecasted programs for the
Department of Human Services and the Department of Children, Youth, and
Families.
The bill was read for the third time and
placed upon its final passage.
The question was taken on the passage of
the bill and the roll was called. There
were 86 yeas and 45 nays as follows:
Those who voted in the affirmative were:
Acomb
Agbaje
Allen
Backer
Bahner
Baker
Berg
Bierman
Buck
Carroll
Cha
Clardy
Coulter
Curran
Elkins
Falconer
Feist
Finke
Fischer
Frazier
Frederick
Freiberg
Gander
Gillman
Gomez
Gottfried
Greene
Greenman
Hansen, R.
Hanson, J.
Heintzeman
Hicks
Hill
Hollins
Howard
Huot
Hussein
Igo
Johnson, P.
Jones
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kraft
Kresha
Lee, F.
Lee, K.
Lee, X.
Liebling
Lillie
Long
Luger-Nikolai
Mahamoud
Moller
Momanyi-Hiltsley
Nadeau
Noor
Norris
Novotny
Pérez-Vega
Pinto
Pursell
Rehm
Rehrauer
Repinski
Reyer
Schomacker
Schwartz
Sencer-Mura
Sexton
Skraba
Smith
Stephenson
Swedzinski
Tabke
Torkelson
Vang
Virnig
Warwas
Wolgamott
Xiong
Youakim
Zeleznikar
Spk. Demuth
Those who voted in the negative were:
Altendorf
Anderson, P. E.
Anderson, P. H.
Bakeberg
Bennett
Bliss
Burkel
Davids
Davis
Dippel
Dotseth
Duran
Engen
Fogelman
Franson
Gordon
Harder
Hudson
Jacob
Johnson, W.
Joy
Knudsen
Koznick
Lawrence
McDonald
Mekeland
Mueller
Murphy
Nelson
Niska
O'Driscoll
Olson
Perryman
Quam
Rarick
Roach
Robbins
Rymer
Schultz
Scott
Stier
Van Binsbergen
West
Wiener
Witte
The
bill was passed and its title agreed to.
H. F. No. 1695 was reported
to the House.
Koznick moved to amend H. F. No. 1695, the first engrossment, as follows:
Page 1, after line 11, insert:
"EFFECTIVE DATE. This section is effective the day following final enactment."
Page 1, after line 19, insert:
"EFFECTIVE DATE. This section is effective the day following final enactment."
The
motion prevailed and the amendment was adopted.
H. F. No. 1695, A bill for
an act relating to transportation; Metropolitan Council; making forecast
adjustments to special transportation service; appropriating money; amending
Laws 2025, First Special Session chapter 8, article 1, section 3, subdivisions
1, 3.
The bill was read for the third time, as
amended, and placed upon its final passage.
The question was taken on the passage of
the bill and the roll was called. There
were 106 yeas and 27 nays as follows:
Those who voted in the affirmative were:
Acomb
Agbaje
Allen
Anderson, P. H.
Backer
Bahner
Baker
Berg
Bierman
Bliss
Buck
Burkel
Carroll
Cha
Clardy
Coulter
Curran
Davids
Duran
Elkins
Falconer
Feist
Finke
Fischer
Franson
Frazier
Frederick
Freiberg
Gander
Gomez
Gottfried
Greene
Greenman
Hansen, R.
Hanson, J.
Heintzeman
Hicks
Hill
Hollins
Howard
Hudson
Huot
Hussein
Igo
Johnson, P.
Johnson, W.
Jones
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kozlowski
Koznick
Kraft
Kresha
Lee, F.
Lee, K.
Lee, X.
Liebling
Lillie
Long
Luger-Nikolai
Mahamoud
Moller
Momanyi-Hiltsley
Mueller
Nadeau
Nash
Nelson
Niska
Noor
Norris
Novotny
O'Driscoll
Olson
Pérez-Vega
Pinto
Pursell
Quam
Rarick
Rehm
Rehrauer
Repinski
Reyer
Schomacker
Schwartz
Scott
Sencer-Mura
Sexton
Skraba
Smith
Stephenson
Swedzinski
Tabke
Torkelson
Vang
Virnig
Warwas
West
Witte
Wolgamott
Xiong
Youakim
Zeleznikar
Spk. Demuth
Those who voted in the negative were:
Altendorf
Anderson, P. E.
Bakeberg
Bennett
Davis
Dippel
Dotseth
Engen
Fogelman
Gillman
Gordon
Harder
Jacob
Joy
Knudsen
Lawrence
McDonald
Mekeland
Murphy
Perryman
Roach
Robbins
Rymer
Schultz
Stier
Van Binsbergen
Wiener
The
bill was passed, as amended, and its title agreed to.
There
being no objection, the order of business reverted to Messages from the Senate.
MESSAGES FROM THE SENATE
The
following messages were received from the Senate:
Madam Speaker:
I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:
H. F. No. 3709, A bill for an act relating to financial institutions; allowing certain virtual-currency custody services to be offered and performed; proposing coding for new law in Minnesota Statutes, chapters 48; 52.
Thomas S. Bottern, Secretary of the Senate
CONCURRENCE
AND REPASSAGE
Perryman moved that the House concur in
the Senate amendments to H. F. No. 3709 and that the bill be
repassed as amended by the Senate. The
motion prevailed.
H. F. No. 3709, A bill for an act relating to financial institutions; allowing certain virtual-currency custody services to be offered and performed; proposing coding for new law in Minnesota Statutes, chapters 48; 52.
The bill was read for the third time, as
amended by the Senate, and placed upon its repassage.
The question was taken on the repassage of
the bill and the roll was called. There
were 119 yeas and 6 nays as follows:
Those who voted in the affirmative were:
Agbaje
Allen
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bahner
Bakeberg
Baker
Bennett
Bliss
Buck
Burkel
Carroll
Cha
Clardy
Coulter
Curran
Davids
Davis
Dippel
Dotseth
Duran
Elkins
Engen
Falconer
Feist
Finke
Fischer
Fogelman
Franson
Frazier
Frederick
Freiberg
Gander
Gillman
Gomez
Gordon
Gottfried
Greene
Hanson, J.
Harder
Heintzeman
Hicks
Hill
Howard
Hudson
Huot
Hussein
Igo
Jacob
Johnson, P.
Johnson, W.
Jones
Jordan
Joy
Keeler
Knudsen
Koegel
Kozlowski
Kraft
Kresha
Lawrence
Lee, F.
Lee, X.
Lillie
Long
Mahamoud
McDonald
Mekeland
Moller
Momanyi-Hiltsley
Mueller
Murphy
Nadeau
Nash
Nelson
Niska
Noor
Norris
Novotny
O'Driscoll
Olson
Pérez-Vega
Perryman
Pursell
Quam
Rarick
Rehm
Rehrauer
Repinski
Roach
Robbins
Rymer
Schomacker
Schultz
Schwartz
Scott
Sencer-Mura
Sexton
Skraba
Smith
Stephenson
Stier
Swedzinski
Tabke
Torkelson
Van Binsbergen
Vang
Virnig
Warwas
West
Wiener
Witte
Wolgamott
Xiong
Youakim
Zeleznikar
Spk. Demuth
Those who voted in the negative were:
Bierman
Hansen, R.
Klevorn
Lee, K.
Liebling
Luger-Nikolai
The bill was repassed, as amended by the
Senate, and its title agreed to.
Madam Speaker:
I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:
H. F. No. 3900, A bill for an act relating to state government; proposing an amendment to the Minnesota Constitution, article XI, section 8; modifying the investment, management, and distribution policy for the permanent school fund; amending Minnesota Statutes 2024, sections 11A.16, subdivisions 5, 6; 127A.32.
Thomas S. Bottern, Secretary of the Senate
Igo moved that the House refuse to concur
in the Senate amendments to H. F. No. 3900, that the Speaker
appoint a Conference Committee of 4 members of the House, and that the House
requests that a like committee be appointed by the Senate to confer on the
disagreeing votes of the two houses. The
motion prevailed.
ANNOUNCEMENT
BY THE SPEAKER
The Speaker announced the appointment of
the following members of the House to a Conference Committee on
H. F. No. 3900:
Igo, O'Driscoll, Long and Youakim.
ANNOUNCEMENT
BY THE SPEAKER
Pursuant
to Rule 1.15(c)
A
message from the Senate has been received requesting concurrence by the House
to amendments adopted by the Senate to the following House File: H. F. No. 3522.
Niska moved that the House recess subject
to the call of the Chair. The motion
prevailed.
RECESS
RECONVENED
The House reconvened and was called to
order by Speaker pro tempore Olson.
Johnson, W., and Schwartz were excused for
the remainder of today's session.
MOTIONS AND
RESOLUTIONS
Norris moved that the name of Anderson, P.
E., be added as second author on H. F. No. 1338. The motion prevailed.
Norris moved that the names of Rehm;
Johnson, P., and Pursell be added as authors on
H. F. No. 2354. The
motion prevailed.
Greenman moved that the name of Bierman be
added as an author on H. F. No. 3093. The motion prevailed.
Franson moved that the name of Repinski be
added as an author on H. F. No. 3131. The motion prevailed.
Olson moved that the name of Myers be
added as an author on H. F. No. 3727. The motion prevailed.
Sencer-Mura moved that the name of Jones
be added as an author on H. F. No. 3857. The motion prevailed.
Hicks moved that the name of Jones be
added as an author on H. F. No. 3969. The motion prevailed.
Greenman moved that the names of Rehm and
Fischer be added as authors on H. F. No. 4077. The motion prevailed.
Scott moved that the name of Koznick be
added as an author on H. F. No. 4138. The motion prevailed.
Frazier moved that the name of Reyer be
added as an author on H. F. No. 4435. The motion prevailed.
Hollins moved that the name of Jones be
added as an author on H. F. No. 4468. The motion prevailed.
Hollins moved that the name of Jones be
added as an author on H. F. No. 4469. The motion prevailed.
Gomez moved that the name of Jones be
added as an author on H. F. No. 4616. The motion prevailed.
Mahamoud moved that the name of Kraft be
added as an author on H. F. No. 4618. The motion prevailed.
Davids moved that the name of Gordon be
added as an author on H. F. No. 5031. The motion prevailed.
Sencer-Mura moved that the names of Berg,
Kozlowski, Finke, Rehrauer and Curran be added as authors on
H. F. No. 5125. The
motion prevailed.
DECLARATION OF URGENCY
Pursuant to Article IV, Section 19, of the
Constitution of the state of Minnesota, Schomacker moved that the rule therein
be suspended and an urgency be declared and that the rules of the House be so
far suspended so that S. F. No. 4476 be given its third reading
and be placed upon its final passage.
The motion prevailed.
S. F. No. 4476 was reported
to the House.
Schomacker moved to amend S. F. No. 4476, the third engrossment, as follows:
Delete everything after the enacting clause and insert the following language of H. F. No. 4338, the second engrossment:
"ARTICLE 1
HEALTH CARE
Section 1. Minnesota Statutes 2025 Supplement, section 15.013, is amended by adding a subdivision to read:
Subd. 7. Exemption. Nothing in this section modifies,
supersedes, limits, or expands the authority of the commissioner of human
services to impose sanctions under section 256B.064.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 2. Minnesota Statutes 2024, section 142B.01, subdivision 8, is amended to read:
Subd. 8. Controlling individual. (a) "Controlling individual" means an owner of a program or service provider licensed under this chapter and the following individuals, if applicable:
(1) each officer of the organization, including the chief executive officer and chief financial officer;
(3) the individual
designated as the compliance officer under section 256B.04, subdivision 21,
paragraph (g) 256B.044, subdivision 8, paragraph (b);
(4) each managerial official whose responsibilities include the direction of the management or policies of a program;
(5) the individual designated as the primary provider of care for a special family child care program under section 142B.41, subdivision 4, paragraph (d); and
(6) the president and treasurer of the board of directors of a nonprofit corporation.
(b) Controlling individual does not include:
(1) a bank, savings bank, trust company, savings association, credit union, industrial loan and thrift company, investment banking firm, or insurance company unless the entity operates a program directly or through a subsidiary;
(2) an individual who is a state or federal official, or state or federal employee, or a member or employee of the governing body of a political subdivision of the state or federal government that operates one or more programs, unless the individual is also an officer, owner, or managerial official of the program; receives remuneration from the program; or owns any of the beneficial interests not excluded in this subdivision;
(3) an individual who owns less than five percent of the outstanding common shares of a corporation:
(i) whose securities are exempt under section 80A.45, clause (6); or
(ii) whose transactions are exempt under section 80A.46, clause (2);
(4) an individual who is a member of an organization exempt from taxation under section 290.05, unless the individual is also an officer, owner, or managerial official of the program or owns any of the beneficial interests not excluded in this subdivision. This clause does not exclude from the definition of controlling individual an organization that is exempt from taxation; or
(5) an employee stock ownership plan trust, or a participant or board member of an employee stock ownership plan, unless the participant or board member is a controlling individual according to paragraph (a).
(c) For purposes of this subdivision, "managerial official" means an individual who has the decision-making authority related to the operation of the program, and the responsibility for the ongoing management of or direction of the policies, services, or employees of the program. A site director who has no ownership interest in the program is not considered to be a managerial official for purposes of this definition.
Sec. 3. Minnesota Statutes 2024, section 144.292, subdivision 6, is amended to read:
Subd. 6. Cost. (a) When a patient requests a copy of the patient's record for purposes of reviewing current medical care, the provider must not charge a fee.
(b) When a provider or its representative makes copies of patient records upon a patient's request under this section, the provider or its representative may charge the patient or the patient's representative no more than the following amount, unless other law or a rule or contract provide for a lower maximum charge:
(1) for paper copies, $1 per page, plus $10 for time spent retrieving and copying the records;
(3) for electronic copies, a total of $20 for retrieving the records.
(c) For any copies of paper records provided under paragraph (b), clause (1), a provider or the provider's representative may not charge more than a total of:
(1) $10 if there are no records available;
(2) $30 for copies of records of up to 25 pages;
(3) $50 for copies of records of up to 100 pages;
(4) $50, plus an additional 20 cents per page for pages 101 and above; or
(5) $500 for any request.
(d) A provider or its representative may charge a $10 retrieval fee, but must not charge a per page fee or x-ray fee to provide copies of records requested by a patient or the patient's authorized representative if the request for copies of records is for purposes of appealing a denial of Social Security disability income or Social Security disability benefits under title II or title XVI of the Social Security Act or for purposes of a disability determination by the department's state medical review team. Notwithstanding the foregoing, a provider or its representative must not charge a fee, including a retrieval fee, to provide copies of records requested by a patient or the patient's authorized representative if the request for copies of records is for purposes of appealing a denial of Social Security disability income or Social Security disability benefits under title II or title XVI of the Social Security Act or for purposes of a disability determination by the department's state medical review team when the patient is receiving public assistance, represented by an attorney on behalf of a civil legal services program, or represented by a volunteer attorney program based on indigency. The patient or the patient's representative must submit one of the following to show that they are entitled to receive records without charge under this paragraph:
(1) a public assistance statement from the county or state administering assistance;
(2) a request for records on the letterhead of the civil legal services program or volunteer attorney program based on indigency; or
(3) a benefits statement from the Social Security Administration.
For the purpose of further appeals, a patient may receive no more than two medical record updates without charge, but only for medical record information previously not provided.
For purposes of this paragraph, a patient's authorized representative does not include units of state government engaged in the adjudication of Social Security disability claims.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 4. Minnesota Statutes 2024, section 245.095, is amended by adding a subdivision to read:
Subd. 7. Exemption. Nothing in this section modifies,
supersedes, limits, or expands the commissioner's authority to impose sanctions
under section 256B.064.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Subd. 5. Coordination between case manager and community support services. (a) The county board must establish procedures that ensure ongoing contact and coordination between the case manager and the community support services program as well as other mental health services.
(b) At a minimum, the
case manager must have at least one case management contact with a documented
core service component, as defined by the commissioner, to claim reimbursement
for adult mental health targeted case management. Adult mental health case managers must not
conduct the required case management contact by telephone with the adult client
or the adult client's legal representative for more than two consecutive
calendar months.
Sec. 6. Minnesota Statutes 2024, section 245.4881, subdivision 5, is amended to read:
Subd. 5. Coordination between case manager and family community support services. (a) The county board must establish procedures that ensure ongoing contact and coordination between the case manager and the family community support services as well as other mental health services for each child.
(b) At a minimum, the
case manager must have at least one contact in every calendar month, conducted
in person or by interactive video that meets the requirements of section
256B.0625, subdivision 20b, with the child, the child's parents, or the child's
legal representative.
Sec. 7. Minnesota Statutes 2024, section 245A.02, subdivision 5a, is amended to read:
Subd. 5a. Controlling individual. (a) "Controlling individual" means an owner of a program or service provider licensed under this chapter and the following individuals, if applicable:
(1) each officer of the organization, including the chief executive officer and chief financial officer;
(2) the individual designated as the authorized agent under section 245A.04, subdivision 1, paragraph (b);
(3) the individual
designated as the compliance officer under section 256B.04, subdivision 21,
paragraph (g) 256B.044, subdivision 8, paragraph (b);
(4) each managerial official whose responsibilities include the direction of the management or policies of a program; and
(5) the president and treasurer of the board of directors of a nonprofit corporation.
(b) Controlling individual does not include:
(1) a bank, savings bank, trust company, savings association, credit union, industrial loan and thrift company, investment banking firm, or insurance company unless the entity operates a program directly or through a subsidiary;
(2) an individual who is a state or federal official, or state or federal employee, or a member or employee of the governing body of a political subdivision of the state or federal government that operates one or more programs, unless the individual is also an officer, owner, or managerial official of the program, receives remuneration from the program, or owns any of the beneficial interests not excluded in this subdivision;
(i) whose securities are exempt under section 80A.45, clause (6); or
(ii) whose transactions are exempt under section 80A.46, clause (2);
(4) an individual who is a member of an organization exempt from taxation under section 290.05, unless the individual is also an officer, owner, or managerial official of the program or owns any of the beneficial interests not excluded in this subdivision. This clause does not exclude from the definition of controlling individual an organization that is exempt from taxation; or
(5) an employee stock ownership plan trust, or a participant or board member of an employee stock ownership plan, unless the participant or board member is a controlling individual according to paragraph (a).
(c) For purposes of this subdivision, "managerial official" means an individual who has the decision-making authority related to the operation of the program, and the responsibility for the ongoing management of or direction of the policies, services, or employees of the program. A site director who has no ownership interest in the program is not considered to be a managerial official for purposes of this definition.
Sec. 8. Minnesota Statutes 2025 Supplement, section 245A.04, subdivision 1, is amended to read:
Subdivision 1. Application for licensure. (a) An individual, organization, or government entity that is subject to licensure under section 245A.03 must apply for a license. The application must be made on the forms and in the manner prescribed by the commissioner. The commissioner shall provide the applicant with instruction in completing the application and provide information about the rules and requirements of other state agencies that affect the applicant. An applicant seeking licensure in Minnesota with headquarters outside of Minnesota must have a program office located within 30 miles of the Minnesota border. An applicant who intends to buy or otherwise acquire a program or services licensed under this chapter that is owned by another license holder must apply for a license under this chapter and comply with the application procedures in this section and section 245A.043.
The commissioner shall act on the application within 90 working days after a complete application and any required reports have been received from other state agencies or departments, counties, municipalities, or other political subdivisions. The commissioner shall not consider an application to be complete until the commissioner receives all of the required information. If the applicant or a controlling individual is the subject of a pending administrative, civil, or criminal investigation, the application is not complete until the investigation has closed or the related legal proceedings are complete.
When the commissioner receives an application for initial licensure that is incomplete because the applicant failed to submit required documents or that is substantially deficient because the documents submitted do not meet licensing requirements, the commissioner shall provide the applicant written notice that the application is incomplete or substantially deficient. In the written notice to the applicant the commissioner shall identify documents that are missing or deficient and give the applicant 45 days to resubmit a second application that is substantially complete. An applicant's failure to submit a substantially complete application after receiving notice from the commissioner is a basis for license denial under section 245A.043.
(b) An application for licensure must identify all controlling individuals as defined in section 245A.02, subdivision 5a, and must designate one individual to be the authorized agent. The application must be signed by the authorized agent and must include the authorized agent's first, middle, and last name; mailing address; and email address. By submitting an application for licensure, the authorized agent consents to electronic communication with the commissioner throughout the application process. The authorized agent must be authorized to accept service on behalf of all of the controlling individuals. A government entity that holds multiple licenses under this chapter may
(c) An applicant or license holder must have a policy that prohibits license holders, employees, subcontractors, and volunteers, when directly responsible for persons served by the program, from abusing prescription medication or being in any manner under the influence of a chemical that impairs the individual's ability to provide services or care. The license holder must train employees, subcontractors, and volunteers about the program's drug and alcohol policy before the employee, subcontractor, or volunteer has direct contact, as defined in section 245C.02, subdivision 11, with a person served by the program.
(d) An applicant and license holder must have a program grievance procedure that permits persons served by the program and their authorized representatives to bring a grievance to the highest level of authority in the program.
(e) The commissioner may limit communication during the application process to the authorized agent or the controlling individuals identified on the license application and for whom a background study was initiated under chapter 245C. Upon implementation of the provider licensing and reporting hub, applicants and license holders must use the hub in the manner prescribed by the commissioner. The commissioner may require the applicant, except for child foster care, to demonstrate competence in the applicable licensing requirements by successfully completing a written examination. The commissioner may develop a prescribed written examination format.
(f) When an applicant is an individual, the applicant must provide:
(1) the applicant's taxpayer identification numbers including the Social Security number or Minnesota tax identification number, and federal employer identification number if the applicant has employees;
(2) at the request of the commissioner, a copy of the most recent filing with the secretary of state that includes the complete business name, if any;
(3) if doing business under a different name, the doing business as (DBA) name, as registered with the secretary of state;
(4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique Minnesota Provider Identifier (UMPI) number; and
(5) at the request of the commissioner, the notarized signature of the applicant or authorized agent.
(g) When an applicant is an organization, the applicant must provide:
(1) the applicant's taxpayer identification numbers including the Minnesota tax identification number and federal employer identification number;
(2) at the request of the commissioner, a copy of the most recent filing with the secretary of state that includes the complete business name, and if doing business under a different name, the doing business as (DBA) name, as registered with the secretary of state;
(3) the first, middle, and last name, and address for all individuals who will be controlling individuals, including all officers, owners, and managerial officials as defined in section 245A.02, subdivision 5a, and the date that the background study was initiated by the applicant for each controlling individual;
(5) the documents that created the organization and that determine the organization's internal governance and the relations among the persons that own the organization, have an interest in the organization, or are members of the organization, in each case as provided or authorized by the organization's governing statute, which may include a partnership agreement, bylaws, articles of organization, organizational chart, and operating agreement, or comparable documents as provided in the organization's governing statute; and
(6) the notarized signature of the applicant or authorized agent.
(h) When the applicant is a government entity, the applicant must provide:
(1) the name of the government agency, political subdivision, or other unit of government seeking the license and the name of the program or services that will be licensed;
(2) the applicant's taxpayer identification numbers including the Minnesota tax identification number and federal employer identification number;
(3) a letter signed by the manager, administrator, or other executive of the government entity authorizing the submission of the license application; and
(4) if applicable, the applicant's NPI number and UMPI number.
(i) At the time of application for licensure or renewal of a license under this chapter, the applicant or license holder must acknowledge on the form provided by the commissioner if the applicant or license holder elects to receive any public funding reimbursement from the commissioner for services provided under the license that:
(1) the applicant's or license holder's compliance with the provider enrollment agreement or registration requirements for receipt of public funding may be monitored by the commissioner as part of a licensing investigation or licensing inspection; and
(2) noncompliance with the provider enrollment agreement or registration requirements for receipt of public funding that is identified through a licensing investigation or licensing inspection, or noncompliance with a licensing requirement that is a basis of enrollment for reimbursement for a service, may result in:
(i) a correction order or a conditional license under section 245A.06, or sanctions under section 245A.07;
(ii) nonpayment of claims submitted by the license holder for public program reimbursement;
(iii) recovery of payments made for the service;
(iv) disenrollment in the public payment program; or
(v) other administrative, civil, or criminal penalties as provided by law.
(j) An applicant or
license holder who acknowledges under paragraph (i) that the applicant or
license holder elects to receive any publicly funded reimbursement from the
commissioner for services provided under the license that are designated by the
commissioner as high-risk under section 256B.044, subdivision 1, must provide
an attestation with the notarized signature of the applicant or authorized
agent stating whether the applicant or authorized agent received from an
unaffiliated business or consultant any assistance preparing:
(1) the licensure
application;
(2)
the renewal application;
(3) any documentation or
written policies submitted with the licensure application;
(4) any documentation or
written policies submitted with the renewal application; or
(5) any documentation or
written policies maintained as a requirement of licensure or enrollment as a
medical assistance provider.
Sec. 9. Minnesota Statutes 2025 Supplement, section 245A.04, subdivision 7, is amended to read:
Subd. 7. Grant of license; license extension. (a) If the commissioner determines that the program complies with all applicable rules and laws, the commissioner shall issue a license consistent with this section or, if applicable, a temporary change of ownership license under section 245A.043. At minimum, the license shall state:
(1) the name of the license holder;
(2) the address of the program;
(3) the effective date and expiration date of the license;
(4) the type of license and the specific service the license holder is licensed to provide;
(5) the maximum number and ages of persons that may receive services from the program; and
(6) any special conditions of licensure.
(b) The commissioner may issue a license for a period not to exceed two years if:
(1) the commissioner is unable to conduct the observation required by subdivision 4, paragraph (a), clause (3), because the program is not yet operational;
(2) certain records and documents are not available because persons are not yet receiving services from the program; and
(3) the applicant complies with applicable laws and rules in all other respects.
(c) A decision by the commissioner to issue a license does not guarantee that any person or persons will be placed or cared for in the licensed program.
(d) Except as provided in paragraphs (i) and (j), the commissioner shall not issue a license if the applicant, license holder, or an affiliated controlling individual has:
(1) been disqualified and the disqualification was not set aside and no variance has been granted;
(2) been denied a license under this chapter or chapter 142B within the past two years;
(3) had a license issued under this chapter or chapter 142B revoked within the past five years; or
(4) failed to submit the
information required of an applicant under subdivision 1, paragraph (f), (g), or
(h), or (j), after being requested by the commissioner.
(e) Notwithstanding paragraph (d), the commissioner may elect not to revoke a license affiliated with a license holder or controlling individual that had a license revoked within the past five years if the commissioner determines that (1) the license holder or controlling individual is operating the program in substantial compliance with applicable laws and rules and (2) the program's continued operation is in the best interests of the community being served.
(f) Notwithstanding paragraph (d), the commissioner may issue a new license in response to an application that is affiliated with an applicant, license holder, or controlling individual that had an application denied within the past two years or a license revoked within the past five years if the commissioner determines that (1) the applicant or controlling individual has operated one or more programs in substantial compliance with applicable laws and rules and (2) the program's operation would be in the best interests of the community to be served.
(g) In determining whether a program's operation would be in the best interests of the community to be served, the commissioner shall consider factors such as the number of persons served, the availability of alternative services available in the surrounding community, the management structure of the program, whether the program provides culturally specific services, and other relevant factors.
(h) The commissioner shall not issue or reissue a license under this chapter if an individual living in the household where the services will be provided as specified under section 245C.03, subdivision 1, has been disqualified and the disqualification has not been set aside and no variance has been granted.
(i) Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license issued under this chapter has been suspended or revoked and the suspension or revocation is under appeal, the program may continue to operate pending a final order from the commissioner. If the license under suspension or revocation will expire before a final order is issued, a temporary provisional license may be issued provided any applicable license fee is paid before the temporary provisional license is issued.
(j) Notwithstanding paragraph (i), when a revocation is based on the disqualification of a controlling individual or license holder, and the controlling individual or license holder is ordered under section 245C.17 to be immediately removed from direct contact with persons receiving services or is ordered to be under continuous, direct supervision when providing direct contact services, the program may continue to operate only if the program complies with the order and submits documentation demonstrating compliance with the order. If the disqualified individual fails to submit a timely request for reconsideration, or if the disqualification is not set aside and no variance is granted, the order to immediately remove the individual from direct contact or to be under continuous, direct supervision remains in effect pending the outcome of a hearing and final order from the commissioner.
(k) Unless otherwise specified by statute, all licenses issued under this chapter expire at 12:01 a.m. on the day after the expiration date stated on the license. A license holder must comply with the requirements in section 245A.10 and be reissued a new license to operate the program or the program must not be operated after the expiration date. Adult foster care, family adult day services, child foster residence setting, and community residential services license holders must apply for and be granted a new license to operate the program or the program must not be operated after the expiration date. Upon implementation of the provider licensing and reporting hub, licenses may be issued each calendar year.
(l) The commissioner shall not issue or reissue a license under this chapter if it has been determined that a Tribal licensing authority has established jurisdiction to license the program or service.
(n) For substance use disorder treatment programs, for the purposes of paragraph (a), clause (5), the maximum number of persons who may receive services from the program includes persons served at satellite locations.
Sec. 10. Minnesota Statutes 2025 Supplement, section 245A.05, is amended to read:
245A.05 DENIAL OF APPLICATION.
(a) The commissioner may deny a license if an applicant or controlling individual:
(1) fails to submit a substantially complete application after receiving notice from the commissioner under section 245A.04, subdivision 1;
(2) fails to comply with applicable laws or rules;
(3) knowingly withholds relevant information from or gives false or misleading information to the commissioner in connection with an application for a license or during an investigation;
(4) has a disqualification that has not been set aside under section 245C.22 and no variance has been granted;
(5) has an individual living in the household who received a background study under section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification that has not been set aside under section 245C.22, and no variance has been granted;
(6) is associated with an individual who received a background study under section 245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised access to children or vulnerable adults, and who has a disqualification that has not been set aside under section 245C.22, and no variance has been granted;
(7) fails to comply with
section 245A.04, subdivision 1, paragraph (f) or, (g), or (j);
(8) fails to demonstrate competent knowledge as required by section 245A.04, subdivision 6;
(9) has a history of noncompliance as a license holder or controlling individual with applicable laws or rules, including but not limited to this chapter and chapters 142E and 245C;
(10) is prohibited from holding a license according to section 245.095; or
(11) is the subject of a pending administrative, civil, or criminal investigation.
(b) An applicant whose application has been denied by the commissioner must be given notice of the denial, which must state the reasons for the denial in plain language. Notice must be given by certified mail, by personal service, or through the provider licensing and reporting hub. The notice must state the reasons the application was denied and must inform the applicant of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The applicant may appeal the denial by notifying the commissioner in writing by certified mail, by personal service, or through the provider licensing and reporting hub. If mailed, the appeal must be postmarked and sent to the commissioner within 20 calendar days after the applicant received the notice of denial. If an appeal request is made by personal service, it must be received by the commissioner within 20 calendar days after the applicant received the notice of denial. If the order is issued through the provider hub, the appeal must be received by the commissioner within 20 calendar days from the date the commissioner issued the order through the hub. Section 245A.08 applies to hearings held to appeal the commissioner's denial of an application.
Subd. 3. Program management and oversight. (a) The license holder must designate a managerial staff person or persons to provide program management and oversight of the services provided by the license holder. The designated manager is responsible for the following:
(1) maintaining a current
understanding of the licensing requirements sufficient to ensure compliance
throughout the program as identified in section 245A.04, subdivision 1,
paragraph (e), and when applicable, as identified in section 256B.04,
subdivision 21, paragraph (g) 256B.044, subdivision 8;
(2) ensuring the duties of the designated coordinator are fulfilled according to the requirements in subdivision 2;
(3) ensuring the program implements corrective action identified as necessary by the program following review of incident and emergency reports according to the requirements in section 245D.11, subdivision 2, clause (7). An internal review of incident reports of alleged or suspected maltreatment must be conducted according to the requirements in section 245A.65, subdivision 1, paragraph (b);
(4) evaluation of satisfaction of persons served by the program, the person's legal representative, if any, and the case manager, with the service delivery and progress toward accomplishing outcomes identified in sections 245D.07 and 245D.071, and ensuring and protecting each person's rights as identified in section 245D.04;
(5) ensuring staff competency requirements are met according to the requirements in section 245D.09, subdivision 3, and ensuring staff orientation and training is provided according to the requirements in section 245D.09, subdivisions 4, 4a, and 5;
(6) ensuring corrective action is taken when ordered by the commissioner and that the terms and conditions of the license and any variances are met; and
(7) evaluating the information identified in clauses (1) to (6) to develop, document, and implement ongoing program improvements.
(b) The designated manager must be competent to perform the duties as required and must minimally meet the education and training requirements identified in subdivision 2, paragraph (b), and have a minimum of three years of supervisory level experience in a program that provides care or education to vulnerable adults or children.
Sec. 12. Minnesota Statutes 2024, section 245I.02, is amended by adding a subdivision to read:
Subd. 4a. Case
management contact. "Case
management contact" means interactive communication conducted either in
person, by interactive video that meets the requirements of section 256B.0625,
subdivision 20b, or by telephone with the client; client's parent; legal
guardian, guardian ad litem, or attorney for clients that are children or youth
under 19 years of age; or client's attorney for clients that are adults 19
years of age or older.
Sec. 13. Minnesota Statutes 2024, section 256B.04, subdivision 5, is amended to read:
Subd. 5. Annual
report required. The state agency
within 60 days after the close of each fiscal year, shall prepare and print for
the fiscal year a report that includes:
a full account of the operations and expenditure of funds under this
chapter,; a full account of the activities undertaken in
accordance with subdivision 10,; adequate and complete statistics
divided by counties about all medical assistance provided in accordance with
this chapter,; a full account of all pre-enrollment, postenrollment,
and unannounced site visits to providers under section 256B.044, subdivision 5;
and any other information it may deem advisable.
Subd. 21. Provider
enrollment. (a) The
commissioner shall enroll providers and conduct screening activities as
required by Code of Federal Regulations, title 42, section 455, subpart E,
and sections 256B.044 to 256B.0448.
A provider must enroll
each provider-controlled location where direct services are provided. The commissioner may deny a provider's
incomplete application if a provider fails to respond to the commissioner's
request for additional information within 60 days of the request. The commissioner must conduct a background
study under chapter 245C, including a review of databases in section
245C.08, subdivision 1, paragraph (a), clauses (1) to (5), for a provider
described in this paragraph. The
background study requirement may be satisfied if the commissioner conducted a
fingerprint-based background study on the provider that includes a review of
databases in section 245C.08, subdivision 1, paragraph (a), clauses (1) to (5).
(b) The commissioner
shall revalidate:
(1) each provider under
this subdivision at least once every five years;
(2) each personal care
assistance agency, CFSS provider-agency, and CFSS financial management services
provider under this subdivision at least once every three years;
(3) each EIDBI agency
under this subdivision at least once every three years; and
(4) at the
commissioner's discretion, any medical-assistance-only provider type the
commissioner deems "high‑risk" under this subdivision.
(c) The commissioner
shall conduct revalidation as follows:
(1) provide 30-day
notice of the revalidation due date including instructions for revalidation and
a list of materials the provider must submit;
(2) if a provider fails
to submit all required materials by the due date, notify the provider of the
deficiency within 30 days after the due date and allow the provider an
additional 30 days from the notification date to comply; and
(3) if a provider fails
to remedy a deficiency within the 30-day time period, give 60-day notice of
termination and immediately suspend the provider's ability to bill. The provider does not have the right to
appeal suspension of ability to bill.
(d) If a provider fails
to comply with any individual provider requirement or condition of
participation, the commissioner may suspend the provider's ability to bill
until the provider comes into compliance.
The commissioner's decision to suspend the provider is not subject to an
administrative appeal.
(e) Correspondence and
notifications, including notifications of termination and other actions, may be
delivered electronically to a provider's MN-ITS mailbox. This paragraph does not apply to
correspondences and notifications related to background studies.
(f) If the commissioner
or the Centers for Medicare and Medicaid Services determines that a provider is
designated "high-risk," the commissioner may withhold payment from
providers within that category upon initial enrollment for a 90-day period. The withholding for each provider must begin
on the date of the first submission of a claim.
(g) An
enrolled provider that is also licensed by the commissioner under chapter245A,
is licensed as a home care provider by the Department of Health under chapter
144A, or is licensed as an assisted living facility under chapter 144G
and has a home and community-based services designation on the home care
license under section 144A.484, must designate an individual as the entity's
compliance officer. The compliance
officer must:
(1) develop policies and
procedures to assure adherence to medical assistance laws and regulations and
to prevent inappropriate claims submissions;
(2) train the employees
of the provider entity, and any agents or subcontractors of the provider entity
including billers, on the policies and procedures under clause (1);
(3) respond to
allegations of improper conduct related to the provision or billing of medical
assistance services, and implement action to remediate any resulting problems;
(4) use evaluation
techniques to monitor compliance with medical assistance laws and regulations;
(5) promptly report to
the commissioner any identified violations of medical assistance laws or
regulations; and
(6) within 60 days of
discovery by the provider of a medical assistance reimbursement overpayment,
report the overpayment to the commissioner and make arrangements with the
commissioner for the commissioner's recovery of the overpayment.
The commissioner may require, as a
condition of enrollment in medical assistance, that a provider within a
particular industry sector or category establish a compliance program that
contains the core elements established by the Centers for Medicare and Medicaid
Services.
(h) The commissioner may
revoke the enrollment of an ordering or rendering provider for a period of not
more than one year, if the provider fails to maintain and, upon request from
the commissioner, provide access to documentation relating to written orders or
requests for payment for durable medical equipment, certifications for home
health services, or referrals for other items or services written or ordered by
such provider, when the commissioner has identified a pattern of a lack of
documentation. A pattern means a failure
to maintain documentation or provide access to documentation on more than one
occasion. Nothing in this paragraph
limits the authority of the commissioner to sanction a provider under the
provisions of section 256B.064.
(i) The commissioner
shall terminate or deny the enrollment of any individual or entity if the
individual or entity has been terminated from participation in Medicare or
under the Medicaid program or Children's Health Insurance Program of any other
state. The commissioner may exempt a
rehabilitation agency from termination or denial that would otherwise be
required under this paragraph, if the agency:
(1) is unable to retain
Medicare certification and enrollment solely due to a lack of billing to the
Medicare program;
(2) meets all other
applicable Medicare certification requirements based on an on-site review
completed by the commissioner of health; and
(3) serves primarily a
pediatric population.
(j) As a condition of
enrollment in medical assistance, the commissioner shall require that a
provider designated "moderate" or "high-risk" by the
Centers for Medicare and Medicaid Services or the commissioner permit the
Centers for Medicare and Medicaid Services, its agents, or its designated
contractors and the state agency, its agents, or its designated contractors to
conduct unannounced on-site inspections of any provider location. The
commissioner shall
publish in the Minnesota Health Care Program Provider Manual a list of provider
types designated "limited," "moderate," or
"high-risk," based on the criteria and standards used to designate
Medicare providers in Code of Federal Regulations, title 42, section 424.518. The list and criteria are not subject to the
requirements of chapter14. The
commissioner's designations are not subject to administrative appeal.
(k) As a condition of
enrollment in medical assistance, the commissioner shall require that a
high-risk provider, or a person with a direct or indirect ownership interest in
the provider of five percent or higher, consent to criminal background checks,
including fingerprinting, when required to do so under state law or by a
determination by the commissioner or the Centers for Medicare and Medicaid
Services that a provider is designated high-risk for fraud, waste, or abuse.
(l)(1) Upon initial
enrollment, reenrollment, and notification of revalidation, all durable medical
equipment, prosthetics, orthotics, and supplies (DMEPOS) medical suppliers
meeting the durable medical equipment provider and supplier definition in clause
(3), operating in Minnesota and receiving Medicaid funds must purchase a surety
bond that is annually renewed and designates the Minnesota Department of Human
Services as the obligee, and must be submitted in a form approved by the
commissioner. For purposes of this
clause, the following medical suppliers are not required to obtain a surety
bond: a federally qualified health
center, a home health agency, the Indian Health Service, a pharmacy, and a
rural health clinic.
(2) At the time of
initial enrollment or reenrollment, durable medical equipment providers and
suppliers defined in clause (3) must purchase a surety bond of $50,000. If a revalidating provider's Medicaid revenue
in the previous calendar year is up to and including $300,000, the provider
agency must purchase a surety bond of $50,000.
If a revalidating provider's Medicaid revenue in the previous calendar
year is over $300,000, the provider agency must purchase a surety bond of
$100,000. The surety bond must allow for
recovery of costs and fees in pursuing a claim on the bond. Any action to obtain monetary recovery or
sanctions from a surety bond must occur within six years from the date the debt
is affirmed by a final agency decision. An
agency decision is final when the right to appeal the debt has been exhausted
or the time to appeal has expired under section 256B.064.
(3) "Durable
medical equipment provider or supplier" means a medical supplier that can
purchase medical equipment or supplies for sale or rental to the general public
and is able to perform or arrange for necessary repairs to and maintenance of
equipment offered for sale or rental.
(m) The Department of
Human Services may require a provider to purchase a surety bond as a condition
of initial enrollment, reenrollment, reinstatement, or continued enrollment if: (1) the provider fails to demonstrate
financial viability, (2) the department determines there is significant
evidence of or potential for fraud and abuse by the provider, or (3) the
provider or category of providers is designated high-risk pursuant to paragraph
(f) and as per Code of Federal Regulations, title 42, section 455.450. The surety bond must be in an amount of
$100,000 or ten percent of the provider's payments from Medicaid during the
immediately preceding 12 months, whichever is greater. The surety bond must name the Department of
Human Services as an obligee and must allow for recovery of costs and fees in
pursuing a claim on the bond. This
paragraph does not apply if the provider currently maintains a surety bond
under the requirements in section 256B.051, 256B.0659, 256B.0701, or 256B.85.
Sec. 15. Minnesota Statutes 2024, section 256B.04, is amended by adding a subdivision to read:
Subd. 28. Medical
assistance education program. (a)
The commissioner must provide information to all medical assistance enrollees
on the following topics:
(1) an enrollee's
benefits, rights, and responsibilities under medical assistance;
(2) how to appropriately
access and receive services under medical assistance;
(3) an
enrollee's right to file complaints, grievances, and appeals;
(4) general information
about preventing fraud and abuse in the medical assistance program; and
(5) how to report
concerns to the department and managed care organizations about fraud and abuse
in the medical assistance program.
(b) The commissioner
must ensure that the information provided under this subdivision:
(1) is in plain
language;
(2) is culturally and
linguistically appropriate; and
(3) complies with
applicable federal Medicaid requirements for communicating with enrollees.
(c) When an enrollee's
use of medical assistance results in abusive or fraudulent billing, the
commissioner must notify the enrollee about the availability of the information
under this subdivision and may provide additional educational information targeted
to the event that resulted in abusive or fraudulent billing.
(d) The commissioner may
require entities participating in medical assistance, including but not limited
to managed care organizations, providers, lead agencies, and Tribal agencies,
to assist in delivering the information required under this subdivision.
(e) For enrollees who
receive case management services or have a support plan developed under section
256B.0911, the information required under this subdivision must be tailored to
their service needs and may be delivered through the support planning process
by the lead agency or managed care organization, as appropriate.
Sec. 16. [256B.044]
PROVIDER ENROLLMENT.
Subdivision 1. Designating
categorical risk levels. (a)
The commissioner must designate provider types as "limited-risk,"
"moderate-risk," or "high-risk" based on the criteria and
standards used to designate Medicare providers in Code of Federal Regulations,
title 42, section 424.518. The
commissioner must publish a list of provider types and designated categorical
risk levels in the Minnesota Health Care Program Provider Manual.
(b) The list and
criteria are not subject to the requirements under chapter 14 and section
14.386 does not apply.
(c) The commissioner's
designations are not subject to administrative appeal.
Subd. 2. Required
verifications and checks. The
commissioner must perform the following verifications and checks prior to
making an enrollment determination and periodically thereafter:
(1) verify that the
provider meets applicable federal and state requirements for the provider type;
(2) conduct license
verifications, as applicable, including verification of current licensure in
Minnesota and in any other state in which the provider is or was previously
licensed, in accordance with Code of Federal Regulations, title 42, section
455.412;
(3) conduct database checks on a pre-enrollment and postenrollment basis to ensure that the provider continues to meet the enrollment criteria for the provider type, in accordance with Code of Federal Regulations, title 42, section 455.436;
(4)
confirm that the provider and any disclosed owners, managing employees, or
controlling individuals are not excluded from participation in any state's
Medicaid program, Medicare, or any other federal health care program;
(5) verify the
provider's National Provider Identifier and, as applicable, Medicare enrollment
status;
(6) verify the
provider's tax identification number and business registration status;
(7) verify the
provider's ownership and control disclosures as required under federal law; and
(8) conduct any
additional screenings, verifications, or reviews that are necessary to protect
the integrity of the medical assistance program or that are required under
federal law.
Subd. 3. Required
background studies. (a) The
commissioner must conduct a background study under chapter 245C for a provider
applying for enrollment. The background
study must include a review of databases in section 245C.08, subdivision 1,
paragraph (a), clauses (1) to (5), and any other databases required under
federal law.
(b) The commissioner
must conduct a background study under this subdivision for each individual with
an ownership or control interest in, or who is an officer, director, agent,
managing employee, or other person with operational or managerial control of,
the provider.
(c) Fingerprint-based
studies are required when mandated by federal law or when a provider is
designated moderate-risk or high-risk under subdivision 1.
(d) The commissioner may
conduct background studies postenrollment as necessary.
(e) A provider's failure
to submit to the commissioner the information required for a background study
under this subdivision is grounds for denial or termination of enrollment in
medical assistance.
(f) A provider's
enrollment must be denied or terminated if a provider or individual subject to
a background study under this subdivision is disqualified under chapter 245C or
is excluded from participating in any federal health care programs.
Subd. 4. Service
location enrollment. (a) A
provider must enroll each provider-controlled location where direct services
are provided. "Provider-controlled
location" means a physical site owned, leased, operated, or otherwise
controlled by the provider.
(b) Separate enrollment
is not required for services provided in a recipient's home or community
setting, telehealth services delivered from an enrolled site, compliant mobile
services, or other federally permissible exemptions.
(c) A provider's failure
to enroll each provider-controlled location where direct services are provided
is grounds for sanctions under section 256B.064.
Subd. 5. Site
visits. (a) As a condition of
enrollment in medical assistance, the commissioner shall require that a
provider permit the Centers for Medicare and Medicaid Services (CMS), CMS's
agents, or CMS's designated contractors and the Department of Human Services
(DHS), DHS's agents, or DHS's designated contractors to conduct unannounced
site visits of any of a provider's enrolled locations.
(b) At a minimum, the
commissioner must conduct the following site visits at each of a provider's
enrolled locations:
(1)
pre-enrollment site visits for providers designated as moderate-risk or
high-risk under subdivision 1;
(2) postenrollment site
visits for providers designated as moderate-risk or high-risk under subdivision
1; and
(3) unannounced site
visits, as follows:
(i) prior to payment of
the provider's first claim after enrollment, when required under federal law or
due to program integrity concerns;
(ii) within 12 months
after the provider begins to bill claims; and
(iii) prior to
revalidation under section 256B.0441, subdivision 3.
(c) The commissioner may
conduct additional announced or unannounced site visits when necessary to
verify compliance with enrollment requirements or to protect program integrity.
(d) A provider's failure
to permit a required site visit is grounds for denial, suspension, or
termination of enrollment and may result in denial of claims or recoupment of
payments.
Subd. 6. Surety
bonds. (a) The commissioner
must require a provider to purchase a surety bond as a condition of initial
enrollment, reenrollment, revalidation, reinstatement, or continued enrollment. Upon new enrollment, or if the provider's
medical assistance revenue in the previous calendar year is less than or equal
to $300,000, the provider must purchase a surety bond of $50,000. If the provider's medical assistance revenue
in the previous calendar year is greater than $300,000, the provider must purchase
a surety bond of $100,000. The surety
bond must name DHS as an obligee and must allow for recovery of costs and fees
in pursuing a claim on the bond.
(b) This subdivision
does not apply if the provider currently maintains a surety bond under the
requirements under section 256B.0659, 256B.0701, or 256B.85.
Subd. 7. Financial
capacity. As a condition of
enrolling in medical assistance, the commissioner must require, in a form and
manner prescribed by the commissioner, that a provider demonstrate sufficient
financial capacity to operate and repay improper payments for 30 days.
Subd. 8. Compliance
programs. (a) The
commissioner may require, as a condition of enrollment in medical assistance,
that a provider in a particular industry, of a particular provider type, or
with a particular risk categorization under subdivision 1, establish and
maintain a compliance program consistent with federal program integrity
guidance issued by CMS or the United States Department of Health and Human
Services Office of Inspector General.
(b) If an enrolled
provider is required by the commissioner or by federal or state law to
designate an individual as the provider's compliance officer, the provider must
appoint an individual responsible for implementing and overseeing the
compliance program.
(c) At a minimum, the
compliance program must include policies and procedures designed to:
(1) ensure adherence to
federal and state laws and program requirements governing medical assistance
and prevent the submission of improper claims;
(2) train employees,
agents, contractors, and subcontractors, including billing personnel, on
applicable federal and state laws and program requirements;
(3)
establish procedures for receiving, investigating, and responding to
allegations of improper conduct and for implementing corrective actions;
(4) use auditing,
monitoring, or other evaluation techniques to assess ongoing compliance;
(5) promptly report to
the commissioner any credible evidence of violations of federal and state laws
or regulations governing medical assistance; and
(6) report and return
identified medical assistance overpayments within 60 days after discovery or by
the date any corresponding cost report is due, whichever is later, in
accordance with federal law.
Subd. 9. Incomplete
provider enrollment applications. The
commissioner must deny a provider's incomplete enrollment application if a
provider fails to respond to the commissioner's request for additional
information within 60 days of the request.
Subd. 10. Correspondence
and notification. The
commissioner must deliver correspondence and notifications, including
notifications of termination and other actions, electronically to a provider's
MN-ITS mailbox. This subdivision does
not apply to correspondences and notifications related to background studies.
Sec. 17. [256B.0441]
PROVIDER REVALIDATION.
Subdivision 1. Requirement. The commissioner must revalidate each
enrolled provider according to this section.
Subd. 2. Schedule. (a) The commissioner shall revalidate:
(1) each provider at
least once every five years;
(2) each personal care
assistance agency, community first services and supports (CFSS)
provider-agency, and CFSS financial management services provider at least once
every three years;
(3) each EIDBI agency at
least once every three years; and
(4) each
medical-assistance-only provider type the commissioner deems high-risk under
section 256B.044, subdivision 1, at least every three years.
(b) The commissioner
must conduct revalidation of a provider more frequently when required under
federal law or when necessary to protect program integrity.
Subd. 3. Procedures. (a) The commissioner shall conduct
revalidation as follows:
(1) provide 30 days'
notice to the provider of the provider's revalidation due date, including
instructions for revalidation, a list of materials the provider must submit,
and a notice about the unannounced site visit required under paragraph (b);
(2) if a provider fails
to submit all required materials or satisfy the requirements of paragraph (b)
by the due date, notify the provider of the deficiency within 14 days after the
due date and allow the provider an additional 14 days from the notification
date to comply; and
(3) if
a provider fails to remedy a deficiency within the additional 28-day time
period, give 15 days' notice of termination and immediately suspend the
provider's ability to bill. The
commissioner's decision to suspend the provider's ability to bill is not
subject to an administrative appeal.
(b) The commissioner
must conduct unannounced site visits at each of a provider's enrolled locations
under section 256B.044, subdivision 4, no more than 30 days prior to the
provider's revalidation due date.
(c) A provider must
demonstrate financial capacity, as described under section 256B.044,
subdivision 7, as a requirement of revalidation under this subdivision.
Sec. 18. [256B.0442]
PROVIDER ENROLLMENT SUSPENSIONS AND TERMINATIONS.
Subdivision 1. Suspension
of billing privileges. (a) If
a provider fails to comply with any individual provider requirement or
condition of participation, the commissioner must suspend the provider's
ability to bill until the provider comes into compliance.
(b) Notwithstanding any
law to the contrary, the commissioner may immediately impose a suspension under
this subdivision when necessary to protect public funds or ensure program
integrity.
(c) A suspension under
this subdivision does not limit the authority of the commissioner to issue any
other sanction authorized under federal or state law.
(d) The commissioner's
decision to suspend a provider's ability to bill is not subject to an
administrative appeal.
Subd. 2. Revocation
for lack of documentation. (a)
The commissioner may revoke the enrollment of an ordering or rendering provider
for a period of not more than one year if the provider fails to maintain and,
upon request from the commissioner, provide access to documentation relating to
written orders or requests for payment for durable medical equipment,
certifications for home health services, or referrals for other items or
services written or ordered by the provider when the commissioner has
identified a pattern of a lack of documentation. A pattern means a failure to maintain
documentation or provide access to documentation on more than one occasion.
(b) Nothing in this
subdivision limits the authority of the commissioner to sanction a provider
under the provisions of section 256B.064.
Subd. 3. Mandatory
denial or termination of enrollment.
(a) The commissioner must terminate or deny the enrollment of a
provider when:
(1) an individual with a
five percent or greater direct or indirect ownership interest in the provider
does not submit timely and accurate information and cooperate with the
screening methods required under section 256B.044;
(2) an individual with a
five percent or greater direct or indirect ownership interest in the provider
has been convicted of a criminal offense related to the individual's
involvement in Medicare, Medicaid, or the Children's Health Insurance Program
in the last ten years, unless the commissioner determines that denial or
termination of enrollment is not in the best interests of the medical
assistance program and the commissioner documents that determination in
writing;
(3) the provider, or an
individual with a five percent or greater direct or indirect ownership interest
in the provider, was terminated from participation in Medicare on or after
January 1, 2011, or under a Medicaid program or Children's Health Insurance
Program of any other state, and is currently included in the termination
database under Code of Federal Regulations, title 42, section 455.417, except
as provided in paragraph (b);
(4)
the provider, or an individual with a five percent or greater direct or
indirect ownership interest in the provider, fails to submit timely or accurate
information, unless the commissioner determines that termination or denial of
enrollment is not in the best interests of the medical assistance program and
the commissioner documents that determination in writing;
(5) the provider, or an
individual with a five percent or greater direct or indirect ownership interest
in the provider, fails to submit sets of fingerprints in a form and manner
determined by the commissioner within 30 days of a request from the Centers for
Medicare and Medicaid Services (CMS) or the commissioner, unless the
commissioner determines that termination or denial of enrollment is not in the
best interests of the medical assistance program and the commissioner documents
that determination in writing;
(6) the provider fails
to permit access to provider locations for any site visits under section
256B.044, subdivision 5, unless the commissioner determines that termination or
denial of enrollment is not in the best interests of the medical assistance program
and the commissioner documents that determination in writing; or
(7) CMS or the
commissioner determines that the provider has falsified any information
provided on the application or cannot verify the identity of any provider
applicant.
(b) The commissioner may
exempt a rehabilitation agency from termination or denial that would otherwise
be required under paragraph (a), clause (3), if the agency:
(1) is unable to retain
Medicare certification and enrollment solely due to a lack of billing to the
Medicare program;
(2) meets all other
applicable Medicare certification requirements based on an on-site review
completed by the commissioner of health; and
(3) serves primarily a
pediatric population.
Subd. 4. Termination
for lack of submitted claims. The
commissioner may terminate the enrollment of an individual provider or an
entity provider if the individual provider or entity provider has not submitted
any claims in the previous 12 consecutive calendar months.
Sec. 19. [256B.0443]
PROVIDER PAYMENT WITHHOLDS.
(a) If the commissioner
or the Centers for Medicare and Medicaid Services designate a provider type as
high-risk under section 256B.044, subdivision 1, the commissioner may withhold
payment from providers within that category upon initial enrollment for a
90-day period.
(b) The withholding for
each provider must begin on the date of the first submission of a claim.
Sec. 20. [256B.0444]
ENROLLMENT MORATORIUM FOR HIGH-RISK PROVIDERS.
Subdivision 1. Provider
enrollment moratorium. (a) If
the commissioner or the Centers for Medicare and Medicaid Services (CMS)
designates a provider type as high-risk under section 256B.044, subdivision 1,
the commissioner may issue a statewide or regional enrollment moratorium and
stop accepting and processing applications from providers within that category
within 30 days of the date of the designation or upon federal approval of the
moratorium, whichever is later. A
moratorium issued under this section is effective for a period of up to 24
months from the date the moratorium is issued.
(b)
Before ending the moratorium under this section, the commissioner must
revalidate the enrollment of each provider within the affected category in
accordance with the revalidation procedures under section 256B.0441,
subdivision 3.
Subd. 2. Moratorium
exceptions. The commissioner
may grant exceptions to a moratorium issued under subdivision 1 and must make
publicly available the processes and criteria the commissioner will use to
grant exceptions. The commissioner may
grant an exception if a county or Tribal agency submits a request for an
exception to the commissioner and the commissioner determines that the agency's
request sufficiently shows that enrollment of the new provider:
(1) is essential to meet
regional needs;
(2) addresses a specific
population to be served; or
(3) fulfills a need that
cannot otherwise be met by existing enrolled providers.
Subd. 3. Continued
enrollment of new clients. Nothing
in this section prohibits an enrolled provider subject to a moratorium under
this section from enrolling new clients or beneficiaries during the period of
the enrollment moratorium.
Subd. 4. Notice. At least ten days prior to issuing an
enrollment moratorium under this section, the commissioner must notify enrolled
providers within the affected category and the chairs and ranking minority
members of the legislative committees with jurisdiction over health and human
services about the actions the commissioner plans to take under this section. The notice must:
(1) include a list of
provider types to which the moratorium applies;
(2) provide a general
explanation for the basis of the high-risk designation; and
(3) identify the start
dates and anticipated durations of the enrollment moratorium.
Subd. 5. Report
to legislature. Within 60
days of ending an enrollment moratorium under this section, the commissioner
must submit a report to the chairs and ranking minority members of the
legislative committees with jurisdiction over health and human services. The report must include, at a minimum:
(1) a summary of any sanctions imposed under section 256B.064 on any
providers subject to the moratorium; and
(2) recommendations for
modifying or terminating the provision of covered services delivered by
provider types subject to the moratorium.
Sec. 21. [256B.0445]
ADDITIONAL PROVIDER ENROLLMENT REQUIREMENTS FOR SPECIFIC PROVIDER TYPES.
Subdivision 1. Durable
medical equipment provider or supplier.
(a) For the purposes of this subdivision, "durable medical
equipment provider or supplier" means a medical supplier that can purchase
medical equipment or supplies for sale or rent to the general public and is
able to perform or arrange for necessary repairs to and maintenance of
equipment offered for sale or rent.
(b) Upon initial
enrollment, reenrollment, and notification of revalidation, all durable medical
equipment, prosthetics, orthotics, and supplies medical suppliers meeting the
durable medical equipment provider or supplier definition in paragraph (a), operating
in Minnesota, and receiving medical assistance money must purchase a surety
bond
that is annually renewed, designates the state agency as the obligee, and is
submitted in a form approved by the commissioner. For purposes of this paragraph, the following
medical suppliers are not required to obtain a surety bond: a federally qualified health center, a home
health agency, the Indian Health Service, a pharmacy, and a rural health
clinic.
(c) At the time of
initial enrollment or reenrollment, durable medical equipment providers or
suppliers as defined in paragraph (a) must purchase a surety bond of $50,000. If a revalidating provider's medical
assistance revenue in the previous calendar year is up to and including
$300,000, the provider agency must purchase a surety bond of $50,000. If a revalidating provider's medical
assistance revenue in the previous calendar year is over $300,000, the provider
agency must purchase a surety bond of $100,000.
The surety bond must allow for recovery of costs and fees in pursuing a
claim on the bond. Any action to obtain
monetary recovery or sanctions from a surety bond must occur within six years
from the date the debt is affirmed by a final agency decision. An agency decision is final when the right to
appeal the debt has been exhausted or the time to appeal has expired under
section 256B.064.
Subd. 2. Providers
licensed by the commissioner of human services. An enrolled provider that is licensed
by the commissioner under chapter 245A must designate an individual as the
licensee's compliance officer under section 256B.044, subdivision 8, paragraph
(b).
Subd. 3. Providers
licensed by the commissioner of health.
An enrolled provider that is licensed by the commissioner of
health as a home care provider under chapter 144A with a home and
community-based services designation under section 144A.484 on the home care
license, or as an assisted living facility under chapter 144G, must designate an individual as the licensee's
compliance officer under section 256B.044, subdivision 8, paragraph (b).
Sec. 22. [256B.0446]
ADDITIONAL PROVIDER ENROLLMENT TRAINING REQUIREMENTS FOR HIGH-RISK PROVIDERS.
Subdivision 1. Applicability. This section applies to any agency
that provides a service designated by the commissioner as high-risk under
section 256B.044, subdivision 1. For
purposes of this section, "agency" means the legal entity that is
applying to be or is enrolled with Minnesota health care programs as a medical
assistance provider according to Minnesota Rules, part 9505.0195.
Subd. 2. Mandatory
compliance training. (a)
Effective January 1, 2027, before applying for enrollment or reenrollment as a
medical assistance provider, an agency applying to provide services designated
by the commissioner as high-risk under section 256B.044, subdivision 1, must
require all owners of the agency who are active in the day-to-day management
and operations of the agency and all managerial and supervisory employees to
complete compliance training. All
individuals required to complete training under this subdivision must repeat
the training prior to the agency's revalidation as a medical assistance
provider.
(b) New owners active in
day-to-day management and operations of the agency and new managerial and
supervisory employees of the agency must complete compliance training under
this subdivision within 30 calendar days of becoming an owner of or beginning employment
with the agency and prior to conducting any management or operations activities
for the agency. If an individual moves
to another agency providing the same service and serves in a similar ownership
or employment capacity, the individual is not required to repeat the training
required under this subdivision. If the
individual does not repeat the compliance training, the individual must provide
documentation to the agency that proves that the individual completed the
compliance training within the provider revalidation schedule for the relevant
provider type as determined by the commissioner under section 256B.0441,
subdivisions 2 and 3.
(c) The commissioner must
determine the format and content of the compliance training. The training must include the following
topics, adapted as necessary for each provider type subject to the requirements
of this subdivision:
(1) state and federal
program billing, documentation, and service delivery requirements;
(2)
enrollment requirements;
(3) provider program
integrity, including fraud prevention, detection, and penalties;
(4) fair labor
standards;
(5) workplace safety
requirements; and
(6) recent changes in
service requirements.
Sec. 23. [256B.0447]
ENHANCED PREPAYMENT REVIEW.
Subdivision 1. Purpose
and authority. The
commissioner must conduct enhanced prepayment review of submitted
fee-for-service medical assistance claims to ensure compliance with state and
federal law and prevent improper payments before payment.
Subd. 2. Providers,
services, and claims subject to review.
(a) The commissioner must conduct enhanced prepayment review
under this section when:
(1) the commissioner or
the Centers for Medicare and Medicaid Services designates a provider type as
moderate‑risk or high-risk under section 256B.044, subdivision 1, for
fee-for-service claims submitted by providers within that category;
(2) the commissioner or
the Centers for Medicare and Medicaid Services designates a covered service as
high‑risk, for fee-for-service claims submitted for that service by any
provider, except the Indian Health Service; or
(3) a provider enrolls
in medical assistance for the first time.
(b) The commissioner may
place any other provider, provider type, covered service, or category of fee‑for‑service
claims under enhanced prepayment review when the commissioner determines there
is a risk of improper payment.
(c) Nothing in this
section prevents the commissioner from establishing enhanced prepayment review
in other circumstances if required by the Centers for Medicare and Medicaid
Services.
Subd. 3. Review
requirements. (a) The
commissioner must implement an enhanced prepayment review established under
this section within 15 days of a provider, covered service, or fee-for-service
claim being subject to review under subdivision 2.
(b) Before ending
enhanced prepayment review under subdivision 2, paragraph (a), clause (1) or
(2), the commissioner must review the fee-for-service claims submitted during
the period the provider type or covered service was subject to the enhanced
prepayment review and determine whether continuation of the review is
warranted.
Subd. 4. Notice. (a) Except as provided in paragraph
(b), the commissioner must provide written notice to a provider placed under
enhanced prepayment review at least 15 days before the review is implemented. The notice must include:
(1) the basis for the
review;
(2) the effective date
of the review; and
(3) the
standards the commissioner will use to determine when the provider, covered
service, or claims will no longer be subject to enhanced prepayment review.
(b) The commissioner may
delay, limit, or withhold notice to a provider if providing notice would
compromise program integrity, prejudice an audit or investigation, or conflict
with federal law or federal guidance.
(c) At least 15 days
before implementing an enhanced prepayment review, the commissioner must notify
the chairs and ranking minority members of the legislative committees with
jurisdiction over health and human services policy and finance about the enhanced
prepayment review the commissioner plans to implement under this section. The notice must include:
(1) the basis for the
review;
(2) the effective date of
the review;
(3) the providers,
provider types, covered services, or categories of fee-for-service claims to
which enhanced prepayment review applies;
(4) the anticipated
duration of the enhanced prepayment review; and
(5) the standards the
commissioner will use to determine when the provider, service, or claims will
no longer be subject to enhanced prepayment review.
Subd. 5. Continued
enrollment of new clients. Nothing
in this section prohibits an enrolled provider that is subject to enhanced
prepayment review from enrolling new clients or beneficiaries during the period
of review unless otherwise prohibited by law or by a separate action of the
commissioner.
Subd. 6. Timely
claims processing. The
commissioner must administer enhanced prepayment review in a manner consistent
with Code of Federal Regulations, title 42, section 447.45.
Subd. 7. Duration
and termination. (a) Enhanced
prepayment review must continue for 24 consecutive months unless:
(1) the commissioner
determines that earlier termination is appropriate based on sustained
compliance; or
(2) the commissioner has
initiated sanction, suspension, termination, or other enforcement action
arising out of the review and that action remains pending on appeal, in which
case the enhanced prepayment review may continue until final disposition of the
enforcement action.
(b) Fee-for-service
claims for services provided during the period of enhanced prepayment review
remain subject to review before payment regardless of when the claims are
submitted.
Subd. 8. Relationship
to other actions. Enhanced
prepayment review under this section does not preclude the commissioner from
conducting a preliminary investigation, full investigation, payment suspension,
postpayment review, audit, overpayment recovery, sanction, or referral to law
enforcement under this chapter or under applicable federal law.
Subd. 9. Report
to legislature. (a) Within 60
days after ending an enhanced prepayment review under this section, the
commissioner must submit a report to the chairs and ranking minority members of
the legislative committees with jurisdiction over health and human services
policy and finance. The report must
include, at a minimum:
(1) a list of providers,
provider types, covered services, or categories of claims subject to review;
(2)
the duration of the review;
(3) aggregate outcomes,
including claim denials, payments delayed, and referrals for further action;
and
(4) recommendations for
statutory, administrative, or systems changes.
(b) Notwithstanding
section 256.01, subdivision 42, this subdivision does not expire.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 24. [256B.0448]
POSTPAYMENT REVIEW.
Subdivision 1. Purpose
and authority. The
commissioner may conduct postpayment review of claims, encounters, cost
reports, rate submissions, and other billings submitted for payment or
reimbursement under this chapter to identify improper payments and recover
payments made in violation of state or federal law or program requirements.
Subd. 2. Scope
of review. The commissioner
may conduct postpayment review on a claim-by-claim basis or through other
review methods authorized by state or federal law.
Subd. 3. Provider
obligations. (a) A provider
subject to postpayment review must maintain documentation necessary to support
claims, encounters, cost reports, rate submissions, other billings submitted
for payment or reimbursement under this chapter, and compliance with program
requirements.
(b) The commissioner may
require a provider to submit records or supporting documentation relevant to a
postpayment review.
(c) A provider's failure
to provide requested records or supporting documentation to the commissioner
according to the timeline specified by the commissioner may result in recovery
of payments or sanctions under section 256B.064 and other applicable laws.
Subd. 4. Recovery
and sanctions. If postpayment
review identifies an overpayment or other noncompliance with medical assistance
payment requirements, the commissioner may recover payments and impose
sanctions in accordance with section 256B.064 and other applicable laws.
Subd. 5. Relationship
to other actions. Conducting
postpayment review of a provider under this section does not preclude the
commissioner from conducting a preliminary investigation, full investigation,
enhanced prepayment review, payment suspension, audit, overpayment recovery,
sanction, or referral to law enforcement under this chapter or applicable
federal law.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 25. [256B.045]
RECIPIENT PROTECTIONS AND CONTINUITY OF CARE WHEN A PROVIDER IS SUBJECT TO A
SERIOUS OPERATIONAL EVENT.
Subdivision 1. Definitions. (a) For purposes of sections 256B.045
to 256B.047, the following terms have the meanings given.
(b) "Complex
transition" means a provider termination, suspension, revocation, or
closure event that, without structured transition measures, would likely result
in avoidable hospitalization, institutionalization, serious clinical
deterioration, or loss of housing or placement for a recipient.
(c)
"Direct recipient care costs" means costs necessary to furnish
covered services, excluding owner distributions, dividends, related party
profit, and other noncare financial transfers.
(d) "Lead
agency" means a county, Tribe, or managed care organization.
(e)
"Recipient" means an enrollee, participant, resident, or other
individual receiving services under medical assistance.
(f) "Serious
operational event" means sanctions or termination actions affecting
provider participation or payments under section 256B.064, licensure loss or
revocation, insolvency, receivership, bankruptcy, abandonment, or inability of
a provider to safely operate.
Subd. 2. Provider
duties. If a medical
assistance service provider determines it is unable to continue to provide
services to a recipient due to a serious operational event, the provider must:
(1) when practicable,
notify each recipient; each recipient's responsible party, if applicable; the
lead agency; and the commissioner 30 days before terminating services to each
recipient;
(2) assist the
commissioner and lead agency in supporting each recipient in transitioning to
another provider of each recipient's choice; and
(3) when practicable,
provide each recipient with a copy of the relevant recipient bill of rights or
recipient protections, if applicable, at least 30 days before terminating
services.
Subd. 3. Commissioner's
duties. (a) When a provider
is subject to a serious operational event, the commissioner or the
commissioner's designee must:
(1) inform the
appropriate ombudsperson's office, if applicable, and the lead agency for each
recipient currently receiving services; and
(2) directly notify each
recipient who receives services from the provider in order to protect recipient
welfare.
(b) When a medical
assistance service provider provides notice to the commissioner under
subdivision 2 that it is unable to continue to provide services to a recipient
due to a serious operational event, the commissioner must assist the provider
and the lead agency in supporting the recipient in transitioning to another
provider of the recipient's choice.
(c) The commissioner
must ensure each recipient receives continuity of medically necessary services
and supports through a safe and orderly transition to appropriate receiving
providers when a serious operational event is designated as a complex transition
under section 256B.046.
Subd. 4. Lead
agency duties. When a
provider is subject to a serious operational event, a lead agency must contact
affected service recipients to ensure that each recipient:
(1) is continuing to
receive needed services; and
(2) has been given free
choice of provider if the recipient transfers to another service provider.
Subdivision 1. Complex
transition designation. (a)
The commissioner must designate a serious operational event as a complex
transition when:
(1) a recipient is
receiving long-term services and supports, including home and community-based
services;
(2) a recipient is
receiving behavioral health or substance use disorder treatment where abrupt
interruption of treatment creates a material risk;
(3) a recipient is
medically fragile and depends on life-sustaining treatment;
(4) there is limited
regional capacity, including limited culturally or linguistically appropriate
care; or
(5) a recipient's
placement stability is dependent upon continued service delivery.
(b) The commissioner may
establish objective thresholds to create a presumption of complex transition
based on the number of recipients affected by a serious operational event,
recipient acuity, service type, or unresolved discharge or placement barriers.
Subd. 2. Complex
transition operations plan. The
commissioner must develop and implement a written complex transition operations
plan for each complex transition. The
plan must include:
(1) recipient
identification and acuity level;
(2) stabilization
actions to prevent gaps in care for high-risk recipients;
(3) medical record,
medication, and treatment plan continuity procedures;
(4) receiving provider
identification and capacity information;
(5) transition
timelines, transportation, and handoff procedures;
(6) the communication
plan for each recipient, the recipient's family, and the recipient's guardian,
if applicable, including language access; and
(7) coordination with
lead agencies, case managers, and ombudsperson offices, when applicable.
Subd. 3. Complex
transition team. The
commissioner may convene a complex transition team that includes department
staff, lead agencies, and other professionals, as necessary, to ensure the safe
transition of recipients from the provider that is unable to continue to
provide services to another provider.
Subd. 4. Complex
transition; legislative notice. The
commissioner must notify the chairs and ranking minority members of the
legislative committees with jurisdiction over human services policy and finance
within ten days of designating a complex transition and must provide a report
within 90 days of recipient stabilization to identify systemic gaps and make
recommendations for systemic improvements.
Subdivision 1. Limited
continuity period. A provider
subject to a serious operational event that is designated as a complex
transition under section 256B.046 may continue to provide services to high-risk
recipients receiving long-term services and supports or hospice care for up to
180 days after the date the serious operational event was designated a complex
transition. The continuity period under
this subdivision does not reinstate provider participation in medical
assistance and does not limit the commissioner's sanction, exclusion, recovery,
licensing enforcement, or referral authority.
Subd. 2. Good
cause payment safeguards. When
payment withholds or reductions occur under section 256B.064, the commissioner
may find good cause not to suspend payments under Code of Federal Regulations,
title 42, section 455.23(e) or (f), in order to provide for continuity of care
during complex transitions.
Subd. 3. Transition
payments. (a) If the
commissioner does not suspend payments to a provider sanctioned under section
256B.064 due to a determination of good cause, payments to the provider must be
limited to direct recipient care costs. A
provider receiving payments under this section must submit to independent
financial monitoring and a prohibition on financial distributions to owners.
(b) The commissioner
shall prioritize payment to alternative enrolled medical assistance providers
that assume responsibility for service provision, court-appointed receivers or
interim managers providing services, or substitute providers operating on site
under an approved complex transition operations plan.
(c) When permitted by
state and federal law, the amount of allowable transition payments paid to a
provider under this section is subtracted from the debts the provider owes to
the state.
(d) Nothing in this
section requires payments that are prohibited by federal law.
Sec. 28. Minnesota Statutes 2025 Supplement, section 256B.051, subdivision 6, is amended to read:
Subd. 6. Agency qualifications and duties. An agency is eligible for reimbursement under this section only if the agency:
(1) is confirmed by the commissioner as an eligible provider after a pre-enrollment risk assessment under subdivision 6a;
(2) is enrolled as a medical assistance Minnesota health care program provider and meets all applicable provider standards and requirements;
(3) demonstrates compliance with federal and state laws and policies for housing stabilization services as determined by the commissioner;
(4) complies with background study requirements under chapter 245C and maintains documentation of background study requests and results;
(5) provides at the time of enrollment, reenrollment, and revalidation in a format determined by the commissioner, proof of surety bond coverage for each business location providing services. Upon new enrollment, or if the provider's medical assistance revenue in the previous calendar year is $300,000 or less, the provider agency must purchase a surety bond of $50,000. If the provider's medical assistance revenue in the previous year is over $300,000, the provider agency must purchase a surety bond of $100,000. The surety bond must be in a form approved by the commissioner, must be renewed annually, and must allow for recovery of costs and fees in pursuing
(6) directly provides housing stabilization services using employees of the agency and not by using a subcontractor or reporting agent;
(7) ensures all controlling individuals and employees of the agency
complete annual vulnerable adult training; and
(8) completes compliance
training as required under section 256B.0446, subdivision 6b 2.
Sec. 29. Minnesota Statutes 2025 Supplement, 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 serious mental illness. 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 serious
mental illness when these services meet the program standards in Minnesota
Rules, parts 9520.0900 to 9520.0926, and 9505.0322, excluding
subparts 6 and 10 subpart 9.
(c) Medical assistance and
MinnesotaCare payment for mental health case management shall must
be made on a monthly basis in accordance with section 256B.076,
subdivisions 1, 2, 5, and 7. 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 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 must 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 256B.076, subdivisions 5 and 7.
(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.
(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 or sections
245.4711, 245.4881, 256B.0924, 256B.094, and 256F.10. 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.
(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 (n). 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.
(q) Counties may receive
payment for up to 12 15-minute units for use at case initiation and case
closing to facilitate the case management client's needs assessments,
individualized plan development, referrals, or case documentation without
needing to meet the contact requirements specified in sections 245.4711,
245.4881, 256B.0924, 256B.094, and 256F.10.
Sec. 30. Minnesota Statutes 2024, section 256B.064, subdivision 1b, is amended to read:
Subd. 1b. Sanctions
available. (a) The
commissioner may impose the following sanctions for the conduct described in
subdivision 1a: suspension or
withholding of payments to an individual or entity and suspending or
terminating participation in the program, or imposition of a fine under
subdivision 2, paragraph (g).
(1) suspending payments
to an individual or entity;
(2) withholding payments
to an individual or entity;
(3) suspending
participation in the program;
(4) terminating
participation in the program; or
(5) imposing a fine under
subdivision 2a.
(b) When imposing
sanctions under this section subdivision, the commissioner shall
must consider the nature, chronicity, or severity of the conduct and the
effect of the conduct on the health and safety of persons served by the
individual or entity.
(c) The commissioner shall
must suspend an individual's or entity's participation in the program
for a minimum of five years if the individual or entity is convicted of a
crime, received a stay of adjudication, or entered a court-ordered diversion
program for an offense related to a provision of a health service under medical
assistance, including a federally approved waiver, or health care fraud.
(d) Regardless of imposition of sanctions, the commissioner may make a referral to the appropriate state licensing board.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 31. Minnesota Statutes 2024, section 256B.064, subdivision 1c, is amended to read:
Subd. 1c. Grounds for and methods of monetary recovery. (a) The commissioner may obtain monetary recovery from an individual or entity that has been improperly paid by the department either as a result of conduct described in subdivision 1a or as a result of an error by the individual or entity submitting the claim or by the department, regardless of whether the error was intentional. Patterns need not be proven as a precondition to monetary recovery of erroneous or false claims, duplicate claims, claims for services not medically necessary, or claims based on false statements.
(b) The commissioner may
obtain monetary recovery using methods including but not limited to the
following: assessing and recovering
money improperly paid and debiting from future payments any money improperly
paid. The commissioner shall must
charge interest on money to be recovered if the recovery is to be made by
installment payments or debits, except when the monetary recovery is of an
overpayment that resulted from a department error. The interest charged shall must
be the rate established by the commissioner of revenue under section 270C.40.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Subd. 1d. Investigative costs. (a) The commissioner may seek recovery of investigative costs from any individual or entity that willfully submits a claim for reimbursement for services that the individual or entity knows, or reasonably should have known, is a false representation and that results in the payment of public funds for which the individual or entity is ineligible.
(b) Billing errors
that result in unintentional overcharges shall are not be
grounds for investigative cost recoupment.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 33. Minnesota Statutes 2024, section 256B.064, subdivision 2, is amended to read:
Subd. 2. Imposition
of monetary recovery and sanctions; generally. (a) The commissioner shall must
determine any monetary amounts to be recovered and sanctions to be imposed upon
an individual or entity under this section.
Except as provided in paragraphs (b) and (d), neither subdivisions
2b to 2d, the commissioner must not obtain a monetary recovery nor or
impose a sanction will be imposed by the commissioner without prior
notice and an opportunity for a hearing, according to chapter 14, on the
commissioner's proposed action, provided that the commissioner may suspend
or reduce payment to an individual or entity, except a nursing home or
convalescent care facility, after notice and prior to the hearing if in the
commissioner's opinion that action is necessary to protect the public welfare
and the interests of the program.
(b) Except when the
commissioner finds good cause not to suspend payments under Code of Federal
Regulations, title 42, section 455.23(e) or (f), the commissioner shall
withhold or reduce payments to an individual or entity without providing
advance notice of such withholding or reduction if either of the following
occurs:
(1) the individual or
entity is convicted of a crime involving the conduct described in subdivision
1a; or
(2) the commissioner
determines there is a credible allegation of fraud for which an investigation
is pending under the program. Allegations
are considered credible when they have an indicium of reliability and the state
agency has reviewed all allegations, facts, and evidence carefully and acts
judiciously on a case-by-case basis. A
credible allegation of fraud is an allegation which has been verified by the
state, from any source, including but not limited to:
(i) fraud hotline
complaints;
(ii) claims data mining;
and
(iii) patterns
identified through provider audits, civil false claims cases, and law
enforcement investigations.
(c) The commissioner
must send notice of the withholding or reduction of payments under paragraph
(b) within five days of taking such action unless requested in writing by a law
enforcement agency to temporarily withhold the notice. The notice must:
(1) state that payments
are being withheld according to paragraph (b);
(2) set forth the
general allegations as to the nature of the withholding action, but need not
disclose any specific information concerning an ongoing investigation;
(3)
except in the case of a conviction for conduct described in subdivision 1a,
state that the withholding is for a temporary period and cite the circumstances
under which withholding will be terminated;
(4) identify the types
of claims to which the withholding applies; and
(5) inform the
individual or entity of the right to submit written evidence for consideration
by the commissioner.
(d) The withholding or
reduction of payments will not continue after the commissioner determines there
is insufficient evidence of fraud by the individual or entity, or after legal
proceedings relating to the alleged fraud are completed, unless the commissioner
has sent notice of intention to impose monetary recovery or sanctions under
paragraph (a). Upon conviction for a
crime related to the provision, management, or administration of a health
service under medical assistance, a payment held pursuant to this section by
the commissioner or a managed care organization that contracts with the
commissioner under section 256B.035 is forfeited to the commissioner or managed
care organization, regardless of the amount charged in the criminal complaint
or the amount of criminal restitution ordered.
(e) The commissioner
shall suspend or terminate an individual's or entity's participation in the
program without providing advance notice and an opportunity for a hearing when
the suspension or termination is required because of the individual's or entity's
exclusion from participation in Medicare.
Within five days of taking such action, the commissioner must send
notice of the suspension or termination.
The notice must:
(1) state that
suspension or termination is the result of the individual's or entity's
exclusion from Medicare;
(2) identify the
effective date of the suspension or termination; and
(3) inform the
individual or entity of the need to be reinstated to Medicare before reapplying
for participation in the program.
(f) (b) Upon
receipt of a notice under paragraph (a) or subdivision 2c that a
monetary recovery or sanction is to be imposed, an individual or entity may
request a contested case, as defined in section 14.02, subdivision 3, by filing
with the commissioner a written request of appeal. The appeal request must be received by the
commissioner no later than 30 days after the date the notification of monetary
recovery or sanction was mailed to the individual or entity. The appeal request must specify:
(1) each disputed item, the reason for the dispute, and an estimate of the dollar amount involved for each disputed item;
(2) the computation that the individual or entity believes is correct;
(3) the authority in statute or rule upon which the individual or entity relies for each disputed item;
(4) the name and address of the person or entity with whom contacts may be made regarding the appeal; and
(5) other information required by the commissioner.
(g) The commissioner may
order an individual or entity to forfeit a fine for failure to fully document
services according to standards in this chapter and Minnesota Rules, chapter
9505. The commissioner may assess
fines if specific required components of documentation are missing. The fine for incomplete documentation shall
equal 20 percent of the amount paid on the claims for reimbursement submitted
by the individual or entity, or up to $5,000, whichever is less. If the commissioner determines that an individual
or entity repeatedly violated this chapter, chapter 254B or 245G,
or Minnesota Rules, chapter 9505, related to the provision of services
to program recipients
and the submission of claims for
payment, the commissioner may order an individual or entity to forfeit a fine
based on the nature, severity, and chronicity of the violations, in an amount
of up to $5,000 or 20 percent of the value of the claims, whichever is greater.
(h) The individual or
entity shall pay the fine assessed on or before the payment date specified. If the individual or entity fails to pay the
fine, the commissioner may withhold or reduce payments and recover the amount
of the fine. A timely appeal shall stay
payment of the fine until the commissioner issues a final order.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 34. Minnesota Statutes 2024, section 256B.064, is amended by adding a subdivision to read:
Subd. 2a. Imposition
of fines. (a) The
commissioner may order an individual or entity to forfeit a fine for failure to
fully document services according to standards under this chapter and Minnesota
Rules, chapter 9505. The commissioner
may assess fines if specific required components of documentation are missing. The fine for incomplete documentation equals
20 percent of the amount paid on the claims for reimbursement submitted by the
individual or entity or up to $5,000, whichever is less. If the commissioner determines that an
individual or entity repeatedly violated this chapter, chapter 245G or 254B, or
Minnesota Rules, chapter 9505, related to the provision of services to program
recipients and the submission of claims for payment, the commissioner may order
an individual or entity to forfeit a fine based on the nature, severity, and
chronicity of the violations in an amount of up to $5,000 or 20 percent of the
value of the claims, whichever is greater.
(b) The individual or
entity must pay the fine assessed on or before the payment date specified by
the commissioner. If the individual or
entity fails to pay the fine, the commissioner may withhold or reduce payments
and recover the amount of the fine. A
timely appeal stays payment of the fine until the commissioner issues a final
order.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 35. Minnesota Statutes 2024, section 256B.064, is amended by adding a subdivision to read:
Subd. 2b. Mandatory
suspension or termination after exclusion from participation in Medicare. (a) The commissioner must suspend or
terminate an individual's or entity's participation in the program without
providing advance notice and an opportunity for a hearing when the suspension
or termination is required because of the individual's or entity's exclusion
from participation in Medicare.
(b) Within five days of
taking an action under paragraph (a), the commissioner must send notice of the
suspension or termination to the individual or entity. The notice must:
(1) state that
suspension or termination is the result of the individual's or entity's
exclusion from Medicare;
(2) identify the
effective date of the suspension or termination; and
(3) inform the
individual or entity of the need to be reinstated to Medicare before reapplying
for participation in the program.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Subd. 2c. Imposition
of withholding or reduction of payments before a hearing. (a) Except as provided in paragraph
(b), the commissioner may withhold or reduce payment to an individual or entity
after notice but before a hearing if, in the commissioner's opinion,
withholding or reducing payment is necessary to protect the public welfare and
the interests of the program.
(b) The commissioner
must not withhold or reduce payments to a nursing home or convalescent care
facility before a hearing.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 37. Minnesota Statutes 2024, section 256B.064, is amended by adding a subdivision to read:
Subd. 2d. Imposition
of withholding or reduction of payments without prior notice. (a) Except when the commissioner finds
good cause not to suspend payments under Code of Federal Regulations, title 42,
section 455.23(e) or (f), the commissioner must withhold or reduce payments to
an individual or entity without providing advance notice of the withholding or
reduction if either of the following occurs:
(1) the individual or
entity is convicted of a crime involving the conduct described in subdivision
1a; or
(2) the commissioner
determines there is a credible allegation of fraud for which an investigation
is pending under the program. Allegations
are considered credible when the allegations have an indicium of reliability
and the state agency has reviewed all allegations, facts, and evidence
carefully and acts judiciously on a case-by-case basis. A credible allegation of fraud is an
allegation that has been verified by the state from any source, including but
not limited to:
(i) fraud hotline
complaints;
(ii) claims data mining;
(iii) patterns
identified through provider audits, civil false claims cases, and law
enforcement investigations; and
(iv) court filings and
other legal documents, including but not limited to police reports, complaints,
indictments, informations, affidavits, declarations, and search warrants.
(b) The commissioner
must send notice of the withholding or reduction of payments under paragraph
(a) within five days of withholding or reducing payment unless requested in
writing by a law enforcement agency to temporarily withhold the notice. The notice must:
(1) state that payments
are being withheld or reduced according to paragraph (a);
(2) set forth the
general allegations as to the nature of the withholding or reduction action but
need not disclose any specific information concerning an ongoing investigation;
(3) except in the case
of a conviction for conduct described in subdivision 1a, state that the
withholding or reduction is for a temporary period and cite the circumstances
under which withholding or reduction will be terminated;
(4) identify the types
of claims to which the withholding or reduction applies; and
(5)
inform the individual or entity of the right to submit written evidence for
consideration by the commissioner.
(c) The commissioner
must cease the withholding or reduction of payments under this subdivision
after the commissioner determines there is insufficient evidence of fraud by
the individual or entity or after legal proceedings relating to the alleged
fraud are completed, unless the commissioner has sent notice of intention to
impose monetary recovery or sanctions.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 38. Minnesota Statutes 2024, section 256B.064, is amended by adding a subdivision to read:
Subd. 2e. Forfeiture
of withheld payments upon criminal conviction. Upon conviction for a crime related to
the provision, management, or administration of a health service under medical
assistance, a payment held pursuant to this section by the commissioner or a
managed care organization that contracts with the commissioner under section
256B.035 is forfeited to the commissioner or managed care organization,
regardless of the amount charged in the criminal complaint or the amount of
criminal restitution ordered.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 39. Minnesota Statutes 2024, section 256B.064, subdivision 3, is amended to read:
Subd. 3. Mandates
on prohibited payments. (a) The
commissioner shall must maintain and publish a list of each
excluded individual and entity that was convicted of a crime related to the
provision, management, or administration of a medical assistance health
service, or suspended or terminated under subdivision 2 2b. Medical assistance payments cannot be made by
an individual or entity for items or services furnished either directly or
indirectly by an excluded individual or entity, or at the direction of excluded
individuals or entities.
(b) The entity must check the exclusion list on a monthly basis and document the date and time the exclusion list was checked and the name and title of the person who checked the exclusion list. The entity must immediately terminate payments to an individual or entity on the exclusion list.
(c) An entity's requirement to check the exclusion list and to terminate payments to individuals or entities on the exclusion list applies to each individual or entity on the exclusion list, even if the named individual or entity is not responsible for direct patient care or direct submission of a claim to medical assistance.
(d) An entity that pays medical assistance program funds to an individual or entity on the exclusion list must refund any payment related to either items or services rendered by an individual or entity on the exclusion list from the date the individual or entity is first paid or the date the individual or entity is placed on the exclusion list, whichever is later, and an entity may be subject to:
(1) sanctions under subdivision
2 this section;
(2) a civil monetary penalty of up to $25,000 for each determination by the department that the vendor employed or contracted with an individual or entity on the exclusion list; and
(3) other fines or penalties allowed by law.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Subd. 4. Notice. (a) The department shall must
serve the notice required under subdivision subdivisions 2 and
2d using a signature-verified confirmed delivery method to the address
submitted to the department by the individual or entity. Service is complete upon mailing.
(b) The department shall
must give notice in writing to a recipient placed in the Minnesota
restricted recipient program under section 256B.0646 and Minnesota Rules, part
9505.2200. The department shall must
send the notice by first class mail to the recipient's current address on file
with the department. A recipient placed
in the Minnesota restricted recipient program may contest the placement by
submitting a written request for a hearing to the department within 90 days of
the notice being mailed.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 41. Minnesota Statutes 2024, section 256B.064, subdivision 5, is amended to read:
Subd. 5. Immunity; good faith reporters. (a) A person who makes a good faith report is immune from any civil or criminal liability that might otherwise arise from reporting or participating in the investigation. Nothing in this subdivision affects an individual's or entity's responsibility for an overpayment established under this subdivision.
(b) A person employed by a lead investigative agency who is conducting or supervising an investigation or enforcing the law according to the applicable law or rule is immune from any civil or criminal liability that might otherwise arise from the person's actions, if the person is acting in good faith and exercising due care.
(c) For purposes of this subdivision, "person" includes a natural person or any form of a business or legal entity.
(d) After an investigation
is complete, the reporter's name must be kept confidential. The subject of the report may compel
disclosure of the reporter's name only with the consent of the reporter or upon
a written finding by a district court that the report was false and there is
evidence that the report was made in bad faith.
This subdivision does not alter disclosure responsibilities or
obligations under the Rules of Criminal Procedure, except that when the
identity of the reporter is relevant to a criminal prosecution the district
court shall must conduct an in-camera review before determining
whether to order disclosure of the reporter's identity.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 42. Minnesota Statutes 2024, section 256B.064, is amended by adding a subdivision to read:
Subd. 6. Suspension,
withholding, or reduction of payments; administrative review. (a) An individual or entity that is
subject to a temporary withholding or reduction of payments under subdivision
2d, paragraph (a), clause (2), may request an administrative review before the
state Court of Administrative Hearings within ten business days of receiving
notice of the withholding or reduction of payments. The commissioner must refer the matter to the
Court of Administrative Hearings within five business days of receiving the
request for administrative review.
(b) The Court of
Administrative Hearings must conduct an expedited hearing within 30 days after
the commissioner refers the matter to the court.
(c) In an administrative
review under this subdivision, the administrative law judge must determine:
(1) whether the
commissioner has demonstrated, by a preponderance of the evidence, that a
credible allegation of fraud exists; and
(2)
whether continuing the temporary withholding or reduction of payments is
reasonable and necessary to protect the integrity of the medical assistance
program.
(d) The administrative
law judge must issue a recommendation within ten days following the hearing. The administrative law judge must recommend
upholding the temporary withholding or reduction of payments only if the
commissioner demonstrates, by a preponderance of the evidence, that a credible
allegation of fraud exists and that payment withholding or reduction is
appropriate under applicable federal Medicaid program integrity requirements.
(e) Within ten days after
receiving the administrative law judge's recommendation, the commissioner must
issue a final determination affirming, modifying, or ceasing the temporary
withholding or reduction of payments.
(f) If the administrative
law judge determines that withholding the full amount of payments would
jeopardize access to medically necessary services for medical assistance
recipients, the commissioner may modify the withholding to allow partial
payments for the duration of an investigation.
Sec. 43. Minnesota Statutes 2024, section 256B.064, is amended by adding a subdivision to read:
Subd. 7. Periodic
review of withholding or reduction of payments(a) The commissioner
must review any temporary payment withholding or reduction under subdivision
2d, paragraph (a), clause (2), at least every 90 days to determine whether the
credible allegation of fraud continues to necessitate the withholding or reduction
of payments.
(b) If a payment
withholding or reduction remains in effect for 180 days or more, the
commissioner must provide a written status report on the specific withholding
or reduction to the chairs and ranking minority members of the legislative
committees with jurisdiction over human services. The report must summarize the status of the
investigation, specify the basis for continuing the withholding or reduction,
and indicate any anticipated timeline for resolution. The commissioner may withhold any information
that would compromise an ongoing criminal investigation from the report
required under this paragraph.
Sec. 44. Minnesota Statutes 2024, section 256B.064, is amended by adding a subdivision to read:
Subd. 8. Coordination
with law enforcement. When a
temporary withholding or reduction of payments under subdivision 2d, paragraph
(a), clause (2), involves potential criminal conduct, the commissioner must
coordinate with appropriate law enforcement authorities, including the
Minnesota attorney general's Medicaid Fraud Control Unit, and may consult with
state or federal investigative agencies as necessary. The commissioner may delay notice or
disclosure of specific investigative information to the individual or entity
being investigated when law enforcement certifies that disclosure would
compromise an ongoing criminal investigation.
Sec. 45. Minnesota Statutes 2024, section 256B.064, is amended by adding a subdivision to read:
Subd. 9. Application. This section supersedes any
inconsistent or contrary provision of law.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 46. [256B.0647]
REMITTANCE ADVICE MONETARY RECOVERY.
(a) The commissioner may
use the remittance advice process under Code of Federal Regulations, title 45,
part 162.1601, as the notice to a vendor or provider when seeking monetary
recovery using a department-administered information technology system for programmatically
processed claims. The remittance advice
must be delivered electronically and constitutes the sole notice to the
provider. The commissioner must withhold
the payments at issue when using the remittance advice as the notice.
(b)
Providers may seek reconsideration of a remittance under this section by
mailing a request to the commissioner. The
reconsideration request must be received no later than 30 calendar days from
the posting of the remittance advice. A
request for reconsideration does not stay the withholding of payments. The commissioner's disposition of a request
for reconsideration is final and not subject to appeal under chapter 14. The request for reconsideration must include:
(1) each disputed item,
the reason for the dispute, and an estimate of the dollar amount involved for
each disputed item;
(2) the calculation that
the individual or entity believes is correct;
(3) the authority in
statute or rule upon which the individual or entity relies for each disputed
item;
(4) the name and address
of the person or entity with whom contacts may be made regarding the appeal;
and
(5) other information
required by the commissioner.
Sec. 47. Minnesota Statutes 2024, section 256B.0651, subdivision 17, is amended to read:
Subd. 17. Recipient
protection. (a) Providers of
home care services must provide each recipient with a copy of the home care
bill of rights under section 144A.44 at least 30 days prior to terminating
services to a recipient, if the termination results from provider sanctions
under section 256B.064, such as a payment withhold, a suspension of
participation, or a termination of participation. If a home care provider determines it is
unable to continue providing services to a recipient, the provider must notify
the recipient, the recipient's responsible party, and the commissioner 30 days
prior to terminating services to the recipient because of an action under
section 256B.064, and must assist the commissioner and lead agency in
supporting the recipient in transitioning to another home care provider of the
recipient's choice meet the recipient protection requirements under
section 256B.045 when subject to a serious operational event as defined in
section 256B.045, subdivision 1.
(b) In the event of a
payment withhold from a home care provider, a suspension of participation, or a
termination of participation of a home care provider under section 256B.064,
the commissioner may inform the Office of Ombudsman for Long-Term Care and the
lead agencies for all recipients with active service agreements with the
provider. At the commissioner's request,
the lead agencies must contact recipients to ensure that the recipients are
continuing to receive needed care, and that the recipients have been given free
choice of provider if they transfer to another home care provider. In addition, the commissioner or the
commissioner's delegate may directly notify recipients who receive care from
the provider that payments have been or will be withheld or that the provider's
participation in medical assistance has been or will be suspended or
terminated, if the commissioner determines that notification is necessary to
protect the welfare of the recipients. For
purposes of this subdivision, "lead agencies" means counties, tribes,
and managed care organizations.
Sec. 48. Minnesota Statutes 2025 Supplement, section 256B.0701, subdivision 9, is amended to read:
Subd. 9. Provider qualifications and duties. A provider is eligible for reimbursement under this section only if the provider:
(1) is confirmed by the commissioner as an eligible provider after a pre-enrollment risk assessment under subdivision 10;
(2) is enrolled as a medical assistance Minnesota health care program provider and meets all applicable provider standards and requirements;
(4) complies with background study requirements under chapter 245C and maintains documentation of background study requests and results;
(5) provides at the time of enrollment, reenrollment, and revalidation in a format determined by the commissioner, proof of surety bond coverage for each business location providing services. Upon new enrollment, or if the provider's medical assistance revenue in the previous calendar year is $300,000 or less, the provider agency must purchase a surety bond of $50,000. If the provider's medical assistance revenue in the previous year is over $300,000, the provider agency must purchase a surety bond of $100,000. The surety bond must be in a form approved by the commissioner, must be renewed annually, and must allow for recovery of costs and fees in pursuing a claim on the bond. Any action to obtain monetary recovery or sanctions from a surety bond must occur within six years from the date the debt is affirmed by a final agency decision. An agency decision is final when the right to appeal the debt has been exhausted or the time to appeal has expired under section 256B.064;
(6) ensures all controlling individuals and employees of the agency complete annual vulnerable adult training;
(7) completes compliance
training as required under section 256B.0446, subdivision 11 2;
and
(8) complies with the habitability inspection requirements in subdivision 13.
Sec. 49. Minnesota Statutes 2025 Supplement, section 256B.0759, subdivision 4, is amended to read:
Subd. 4. Provider payment rates. (a) Payment rates for participating providers must be increased for services provided to medical assistance enrollees. To receive a rate increase, participating providers must meet demonstration project requirements and provide evidence of formal referral arrangements with providers delivering step-up or step-down levels of care. Providers that have enrolled in the demonstration project but have not met the provider standards under subdivision 3 as of July 1, 2022, are not eligible for a rate increase under this subdivision until the date that the provider meets the provider standards in subdivision 3. Services provided from July 1, 2022, to the date that the provider meets the provider standards under subdivision 3 shall be reimbursed at rates according to section 254B.0505, subdivision 1. Rate increases paid under this subdivision to a provider for services provided between July 1, 2021, and July 1, 2022, are not subject to recoupment when the provider is taking meaningful steps to meet demonstration project requirements that are not otherwise required by law, and the provider provides documentation to the commissioner, upon request, of the steps being taken.
(b) The commissioner may
temporarily suspend payments to the provider according to section 256B.04,
subdivision 21, paragraph (d) 256B.0442, subdivision 1, if the
provider does not meet the requirements in paragraph (a). Payments withheld from the provider must be
made once the commissioner determines that the requirements in paragraph (a)
are met.
(c) For outpatient individual and group substance use disorder services under section 254B.0505, subdivision 1, clause (1), and adolescent treatment programs that are licensed as outpatient treatment programs according to sections 245G.01 to 245G.18, provided on or after January 1, 2021, payment rates must be increased by 20 percent over the rates in effect on December 31, 2020.
(d) Effective January 1, 2021, and contingent on annual federal approval, managed care plans and county-based purchasing plans must reimburse providers of the substance use disorder services meeting the criteria described in paragraph (a) who are employed by or under contract with the plan an amount that is at least equal to the fee‑for‑service base rate payment for the substance use disorder services described in paragraph (c). The commissioner must monitor the effect of this requirement on the rate of access to substance use disorder services
(e) Effective July 1, 2021, contracts between managed care plans and county-based purchasing plans and providers to whom paragraph (d) applies must allow recovery of payments from those providers if, for any contract year, federal approval for the provisions of paragraph (d) is not received, and capitation rates are adjusted as a result. Payment recoveries must not exceed the amount equal to any decrease in rates that results from this provision.
(f) For substance use disorder services with medications for opioid use disorder under section 254B.0505, subdivision 1, clause (7), provided on or after January 1, 2021, payment rates must be increased by 20 percent over the rates in effect on December 31, 2020. Upon implementation of new rates according to section 254B.121, the 20 percent increase will no longer apply.
Sec. 50. Minnesota Statutes 2024, section 256B.076, subdivision 1, is amended to read:
Subdivision 1. Generally. (a) It is the policy of this state to ensure that individuals on medical assistance receive cost-effective and coordinated care, including efforts to address the profound effects of housing instability, food insecurity, and other social determinants of health. Therefore, subject to federal approval, medical assistance covers targeted case management services as described in this section and sections 245.4711, 245.4881, 256B.0625, subdivisions 20 to 20b, 256B.0924, 256B.094, and 256F.10.
(b) The commissioner, in collaboration with Tribes, counties, providers, and individuals served, must propose further modifications to targeted case management services to ensure a program that complies with all federal requirements, delivers services in a cost-effective and efficient manner, creates uniform expectations for targeted case management services, addresses health disparities, and promotes person- and family-centered services.
(c) The commissioner may
suspend, reduce, or terminate the reimbursement to a provider that does not
meet the requirements of this section or sections 245.4711, 245.4881,
256B.0625, subdivisions 20 and 20b, 256B.0924, 256B.094, and 256F.10. The county of financial responsibility, as
determined under sections 256G.01 to 256G.12 or, if applicable, the Tribal
agency, is responsible for any federal disallowances. The county or Tribal agency may share the
financial responsibility with the county's or Tribal agency's contracted
vendors.
Sec. 51. Minnesota Statutes 2024, section 256B.076, is amended by adding a subdivision to read:
Subd. 5. County-provided
fee-for-service rate setting and reconciliation. (a) Effective January 1 of the
implementation year determined under subdivision 6, or upon federal approval,
whichever is later, the commissioner must pay targeted case management services
for which counties provide the nonfederal share of money and county staff
provide the services on a fee-for-service basis according to the cost-based
payment methodology in this subdivision and consistent with the federal
regulations related to certified public expenditures. To receive federal reimbursement for these
services, a county providing eligible forms of targeted case management
services must complete a federally approved cost report, in accordance with
section 256.01, subdivision 2, paragraph (o).
(b) The commissioner must reimburse submitted claims based on an interim rate and must determine a final rate on a calendar-year basis following completion of a cost report reconciliation. The commissioner must notify counties of the final rate and post final rates publicly.
(c) A county has 60 days
to appeal a final rate. To appeal a
final rate, a county must submit a written appeal request to the commissioner
within 60 days of the date the commissioner issued the final rate determination. The appeal request shall specify (1) the
disputed items, and (2) the name and address of the person to contact regarding
the appeal.
(d) The
payment methodology under this section must only be used to reimburse allowable
Medicaid costs. The county of financial
responsibility, as determined under sections 256G.01 to 256G.12, is responsible
for any federal disallowances.
(e) Upon implementation,
the commissioner must base interim rates on data from the testing period. The commissioner must base subsequent interim
rates for a calendar year on the most recently completed reconciliation. The commissioner must notify counties of the
interim rate by June 30 each year and post interim rates publicly. If the commissioner is unable to notify the
counties by June 30, the commissioner must notify each county in writing no
later than June 30 that the new interim rate is delayed and must provide an
estimate of when the new interim rate will be available.
(f) Payments to counties
for case management expenditures under this section must be made only from
federal earnings from services provided under this section.
(g) Counties must submit
all claims for targeted case management services described in this section
using a 15‑minute unit.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 52. Minnesota Statutes 2024, section 256B.076, is amended by adding a subdivision to read:
Subd. 6. Testing
and implementation. The
commissioners of human services and children, youth, and families; the
Association of Minnesota Counties (AMC); and the Minnesota Association of
County Social Service Administrators (MACSSA) must collaborate to establish a
joint governance agreement that must:
(1) establish system
functionality requirements to meet the business needs of local agencies
providing targeted case management services and comply with applicable state
and federal regulations for the Social Services Information System (SSIS),
SSIS's replacement, and adjacent systems and the target case management cost
report under subdivision 5;
(2) establish a schedule
for transition planning, including but not limited to fiscal impact assessment
and training; and
(3) specify that the rate
method established in subdivision 5 must not be implemented without both the
completion of the required testing period of 12 calendar months and the
expressed approval by the commissioners of human services and children, youth, and
families; AMC; and MACSSA.
Sec. 53. Minnesota Statutes 2024, section 256B.076, is amended by adding a subdivision to read:
Subd. 7. Managed
care plan units and rates for mental health targeted case management. The commissioner must ensure that the
prepaid health plans providing covered health services for eligible persons
pursuant to this chapter and chapter 256L reimburse counties at a rate that is
at least equal to the fee-for-service rate described in subdivision 5 for
targeted case management services provided to Minnesota health care program
(MHCP) health plan enrollees covered by medical assistance. If, for any contract year, federal approval
is not received for this subdivision, the commissioner must adjust the
capitation rates paid to managed care plans and county-based purchasing plans
for that contract year to reflect the removal of this subdivision. Contracts between managed care plans and
county-based purchasing plans and providers to whom this subdivision applies
must allow recovery of payments from those providers if capitation rates are
adjusted in accordance with this subdivision.
Payment recoveries must not exceed the amount equal to any increase in
rates that results from this subdivision.
This subdivision expires if federal approval is not received for this
subdivision at any time. This
subdivision does not obligate MHCP health plans to contract with counties for
the provision of targeted case management services.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Subd. 8. Targeted
case management gap funding. (a)
For purposes of this subdivision, "unacceptable loss" means when a
county's finalized amount of targeted case management federal reimbursement
following the commissioner's reconciliation for a calendar year for targeted
case management under subdivision 5 is less than 90 percent of the average
federal reimbursement received by that county during the base calendar years
determined in paragraph (c).
(b) The commissioner
must pay targeted case management gap funding in the amount and time frame
specified in paragraph (c) to an individual county for calendar years in which
the county experiences an unacceptable loss.
(c) The base calendar
years are the three calendar years immediately before the testing period of 12
calendar months determined under subdivision 6.
In consultation with the county that experienced the unacceptable loss,
the commissioner must make appropriate adjustments to base year amounts as
needed to prevent the base amounts from being unduly influenced by onetime
events, anomalies, or small changes that appear large compared to a narrow
historical base. The commissioner must
not make adjustments to the eight county human services agencies that received
the greatest amount of targeted case management federal reimbursement during
the base calendar years. For agencies
other than the eight county human services agencies that received the greatest
amount, the total of all adjustments for a given calendar year must not exceed
two percent of statewide federal targeted case management federal reimbursement
that calendar year.
(d) The commissioner
must pay targeted case management gap funding to the applicable county in an
amount equaling the difference between the finalized amount of targeted case
management federal reimbursement after reconciliation for that calendar year and
90 percent of the average federal reimbursement received by that county during
the base calendar years, including any adjustments under paragraph (c). The commissioner must pay the county within
90 days of completing the reconciliation under subdivision 5.
(e) Targeted case
management gap funding is a forecasted program under section 16A.11.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 55. Minnesota Statutes 2025 Supplement, section 256B.0924, subdivision 6, is amended to read:
Subd. 6. Payment
for targeted case management. (a) Medical
assistance and MinnesotaCare payment for targeted case management shall be made
on a monthly basis. In order to receive
payment for an eligible adult, The provider must document at least one
contact per month and not more than two consecutive months without a face‑to‑face
meet the contact either in person or requirements under
section 256B.094, subdivision 6. Contact
by interactive video that meets must meet the requirements in
section 256B.0625, subdivision 20b, with the adult or the adult's legal
representative, family, primary caregiver, or other relevant persons person
identified as necessary to the development or implementation of the goals of
the personal service plan.
(b) Except as provided under
paragraph (m), payment for targeted case management provided by county staff
under this subdivision shall must be based on the monthly
rate methodology under section 256B.094, subdivision 6, paragraph (b),
calculated as one combined average rate together with adult mental health case
management under section 256B.0625, subdivision 20, except for calendar year
2002. In calendar year 2002, the rate
for case management under this section shall be the same as the rate for adult
mental health case management in effect as of December 31, 2001 established
in section 256B.076, subdivisions 5 and 7.
Billing and payment must identify the recipient's primary population
group to allow tracking of revenues.
(d) If the service is provided by a team that includes contracted vendors and county staff, the costs for county staff participation on the team shall be included in the rate for county-provided services. In this case, the contracted vendor 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, the county must document, in the recipient's file, the need for team targeted case management and a description of the different roles of the team members.
(e) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs for targeted 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.
(f) The commissioner may suspend, reduce, or terminate 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, is responsible for any federal disallowances. The county may share this responsibility with its contracted vendors.
(g) The commissioner shall set aside five percent of the federal funds received under this section for use in reimbursing the state for costs of developing and implementing this section.
(h) Payments to counties for targeted case management expenditures under this section shall only be made from federal earnings from services provided under this section. Payments to contracted vendors shall include both the federal earnings and the county share.
(i) Notwithstanding section 256B.041, county payments for the cost of case management services provided by county staff shall not be made to the commissioner of management and budget. For the purposes of targeted case management services provided by county staff under this section, the centralized disbursement of payments to counties under section 256B.041 consists only of federal earnings from services provided under this section.
(j) 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 targeted 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; or
(2) the limits and conditions which apply to federal Medicaid funding for this service.
(k) Payment for targeted case management services under this subdivision shall not duplicate payments made under other program authorities for the same purpose.
(l) Any growth in targeted case management services and cost increases under this section shall be the responsibility of the counties.
(m) The commissioner may make payments for Tribes according to section 256B.0625, subdivision 34, or other relevant federally approved rate setting methodologies for vulnerable adult and developmental disability targeted case management provided by Indian health services and facilities operated by a Tribe or Tribal organization.
Subd. 2. Eligible services. Services eligible for medical assistance reimbursement include:
(1) assessment of the recipient's need for case management services to gain access to available medical, social, educational, economic support, and other related services;
(2) development, completion, and regular review of a written individual service plan based on the assessment of need for case management services to ensure access to available medical, social, educational, economic support, and other related services;
(3) routine contact or other communication with the client, the client's family, primary caregiver, legal representative, substitute care provider, service providers, or other relevant persons identified as necessary to the development or implementation of the goals of the individual service plan, regarding the status of the client, the individual service plan, or the goals for the client, exclusive of transportation of the child;
(4) coordinating referrals for, and the provision of, case management services for the client with appropriate service providers, consistent with section 1902(a)(23) of the Social Security Act;
(5) coordinating and monitoring the overall service delivery to ensure quality of services;
(6) monitoring and evaluating services on a regular basis to ensure appropriateness and continued need based on the child's and family's or caregiver's current circumstances;
(7) completing and maintaining necessary documentation that supports and verifies the activities in this subdivision;
(8) traveling to conduct a visit with the client or other relevant person necessary to the development or implementation of the goals of the individual service plan; and
(9) coordinating with the medical assistance facility discharge planner in the 30-day period before the client's discharge into the community. This case management service provided to patients or residents in a medical assistance facility is limited to a maximum of two 30-day periods per calendar year.
Sec. 57. Minnesota Statutes 2024, section 256B.094, subdivision 3, is amended to read:
Subd. 3. Coordination
and provision of services. (a) In a
county or reservation where a prepaid medical assistance provider managed
care organization (MCO) or county-based purchasing (CBP) plan has
contracted under section 256B.69 to provide medical and mental health
services, the case management provider shall coordinate with the prepaid
provider MCO or CBP plan to ensure that all necessary medical and
mental health services required under the contract are provided to recipients
of case management services.
(b) When the case
management provider determines that a prepaid provider is not providing mental
health services as required under the contract, the case management provider
shall assist the recipient to appeal the prepaid provider's denial pursuant to
section 256.045, and may make other arrangements for provision of the covered
services.
(c) The case management
provider may bill the provider of prepaid health care services for any mental
health services provided to a recipient of case management services which the
county or tribal social services arranges for or provides and which are included
in the prepaid provider's contract, and which were determined to be medically
necessary as a result of an appeal pursuant to section 256.045. The prepaid provider must reimburse the
mental health provider, at the prepaid provider's standard rate for that
service, for any services delivered under this subdivision.
(b)
Child welfare targeted case management is carved out of Minnesota health care
programs managed care contracts. The
case management provider must assist the recipient to ensure access to all
medically necessary services listed in section 256B.0625, whether delivered on
a fee-for-service basis or by an MCO or CBP plan.
(d) (c) If
the county or Tribal social services has not obtained prior authorization for
this service, or an appeal results in a determination that the services were
not medically necessary, the county or Tribal social services may not seek
reimbursement from the prepaid provider.
Sec. 58. Minnesota Statutes 2024, section 256B.094, subdivision 6, is amended to read:
Subd. 6. Medical
assistance reimbursement of case management services. (a) Medical assistance reimbursement for
services under this section shall must be made on a monthly
basis in accordance with section 256B.076. Payment is based on face-to-face contacts
either in person or by interactive video, or telephone contacts between the
case manager and the client, client's family, primary caregiver, legal
representative, or other relevant person identified as necessary to the
development or implementation of the goals of the individual service plan
regarding the status of the client, the individual service plan, or the goals
for the client. These contacts must meet
the following requirements:
(1) there must be a face-to-face contact either in person or by interactive video that meets the requirements of section 256B.0625, subdivision 20b, at least once a month except as provided in clause (2); and
(2) for a client placed outside of the county of financial responsibility, or a client served by Tribal social services placed outside the reservation, in an excluded time facility under section 256G.02, subdivision 6, or through the Interstate Compact for the Placement of Children, section 260.93, and the placement in either case is more than 60 miles beyond the county or reservation boundaries, there must be at least one contact per month and not more than two consecutive months without a face-to-face, in-person contact.
(b) Except as provided
under paragraph (c), the payment rate is established using time study data on
activities of provider service staff and reports required under sections
245.482 and 256.01, subdivision 2, paragraph (o).
(c) (b) Payments
for Tribes may be made according to section 256B.0625 or other relevant
federally approved rate setting methodology for child welfare targeted case
management provided by Indian health services and facilities operated by a
Tribe or Tribal organization.
(d) (c) Payment
for case management provided by county contracted vendors must be calculated in
accordance with section 256B.076, subdivision 2. Payment for 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 Tribal social
services, except to reimburse the county or Tribal social services for advance
funding provided by the county or Tribal social services to the vendor.
(e) (d) If
the service is provided by a team that includes contracted vendors and county
or Tribal social services staff, the costs for county or Tribal social services
staff participation in the team shall be included in the rate for county or
Tribal social services provided services.
In this case, the contracted vendor and the county or Tribal social
services may each receive separate payment for services provided by each entity
in the same month. 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 and services
of the team members.
Separate
payment rates may be established for different groups of providers to maximize
reimbursement as determined by the commissioner. The payment rate will be reviewed annually
and revised periodically to be consistent with the most recent time study and
other data. Payment for services will be
made upon submission of a valid claim and verification of proper documentation
described in subdivision 7. Federal
administrative revenue earned through the time study, or under paragraph (c),
shall be distributed according to earnings, to counties, reservations, or
groups of counties or reservations which have the same payment rate under this
subdivision, and to the group of counties or reservations which are not
certified providers under section 256F.10.
The commissioner shall modify the
requirements set out in Minnesota Rules, parts 9550.0300 to 9550.0370, as
necessary to accomplish this.
Sec. 59. Minnesota Statutes 2024, section 256B.094, subdivision 7, is amended to read:
Subd. 7. Documentation
for case record and claim Service provision requirements. (a) The assessment, case finding, and
individual service plan shall be maintained in the individual case record under
the Data Practices Act, chapter 13.
(b) Payment is based on
face-to-face contacts either in person or by interactive video, or on telephone
contacts between the case manager and the client, client's family, primary
caregiver, legal representative, or other relevant person identified as necessary
to the development or implementation of the goals of the individual service
plan regarding the status of the client, the individual service plan, or the
goals for the client. Contacts must meet
the following requirements:
(1) in accordance with
section 260C.212, subdivision 4a, and United States Code, title 42, section
622(b)(17), there must be a face-to-face contact either in person or by
interactive video that meets the requirements of section 256B.0625, subdivision
20b, at least once a month, except as provided in clause (2); and
(2) for a client placed
outside of the county of financial responsibility, or a client served by Tribal
social services placed outside the reservation, in an excluded time facility
under section 256G.02, subdivision 6, or according to the Interstate Compact
for the Placement of Children under section 260.93, and the placement in either
case is more than 60 miles beyond the county or reservation boundaries, there
must be at least one contact per month and not more than two consecutive months
without a face-to-face, in-person contact.
(c) The individual service plan must be reviewed at least annually and updated as necessary. Each individual case record must maintain documentation of routine, ongoing, contacts and services. Each claim must be supported by written documentation in the individual case record.
(b) (d) Each
claim must include:
(1) the name of the recipient;
(2) the date of the service;
(3) the name of the provider agency and the person providing service;
(4) the nature and extent of services; and
(5) the place of the services.
Subd. 16. Agency duties. (a) An agency delivering an EIDBI service under this section must:
(1) enroll as a medical
assistance Minnesota health care program provider according to Minnesota Rules,
part 9505.0195, and section 256B.04, subdivision 21, sections
256B.044 to 256B.0448 and meet all applicable provider standards and
requirements;
(2) designate an individual
as the agency's compliance officer who must perform the duties described in
section 256B.04, subdivision 21, paragraph (g) 256B.044, subdivision
8, paragraph (b);
(3) demonstrate compliance with federal and state laws for the delivery of and billing for EIDBI service;
(4) verify and maintain records of a service provided to the person or the person's legal representative as required under Minnesota Rules, parts 9505.2175 and 9505.2197;
(5) demonstrate that while enrolled or seeking enrollment as a Minnesota health care program provider the agency did not have a lead agency contract or provider agreement discontinued because of a conviction of fraud; or did not have an owner, board member, or manager fail a state or federal criminal background check or appear on the list of excluded individuals or entities maintained by the federal Department of Human Services Office of Inspector General;
(6) have established business practices including written policies and procedures, internal controls, and a system that demonstrates the organization's ability to deliver quality EIDBI services, appropriately submit claims, conduct required staff training, document staff qualifications, document service activities, and document service quality;
(7) have an office located in Minnesota or a border state;
(8) initiate a background study as required under subdivision 16a;
(9) report maltreatment according to section 626.557 and chapter 260E;
(10) comply with any data requests consistent with the Minnesota Government Data Practices Act, sections 256B.064 and 256B.27;
(11) provide training for all agency staff on the requirements and responsibilities listed in the Maltreatment of Minors Act, chapter 260E, and the Vulnerable Adult Protection Act, section 626.557, including mandated and voluntary reporting, nonretaliation, and the agency's policy for all staff on how to report suspected abuse and neglect;
(12) have a written policy to resolve issues collaboratively with the person and the person's legal representative when possible. The policy must include a timeline for when the person and the person's legal representative will be notified about issues that arise in the provision of services;
(13) provide the person's legal representative with prompt notification if the person is injured while being served by the agency. An incident report must be completed by the agency staff member in charge of the person. A copy of all incident and injury reports must remain on file at the agency for at least five years from the report of the incident;
(15) provide clinical supervision for a minimum of one hour for every 16 hours of direct treatment per person, unless otherwise authorized in the person's individual treatment plan; and
(16) provide required EIDBI intervention observation and direction at least once per month. Notwithstanding subdivision 13, paragraph (l), required EIDBI intervention observation and direction under this clause may be conducted via telehealth provided that no more than two consecutive monthly required EIDBI intervention observation and direction sessions under this clause are conducted via telehealth.
(b) Upon request of the commissioner, an agency delivering services under this section must:
(1) identify the agency's controlling individuals, as defined under section 245A.02, subdivision 5a;
(2) provide disclosures of the use of billing agencies and other
consultants who do not provide EIDBI services; and
(3) provide copies of any contracts with consultants or independent contractors who do not provide EIDBI services, including hours contracted and responsibilities.
(c) When delivering the ITP, and annually thereafter, an agency must provide the person or the person's legal representative with:
(1) a written copy and a verbal explanation of the person's or person's legal representative's rights and the agency's responsibilities;
(2) documentation in the person's file the date that the person or the person's legal representative received a copy and explanation of the person's or person's legal representative's rights and the agency's responsibilities; and
(3) reasonable accommodations to provide the information in another format or language as needed to facilitate understanding of the person's or person's legal representative's rights and the agency's responsibilities.
Sec. 61. Minnesota Statutes 2024, section 256B.0949, subdivision 17, is amended to read:
Subd. 17. Provider shortage; authority for exceptions. (a) In consultation with the Early Intensive Developmental and Behavioral Intervention Advisory Council and stakeholders, including agencies, professionals, parents of people with ASD or a related condition, and advocacy organizations, the commissioner shall determine if a shortage of EIDBI providers exists. For the purposes of this subdivision, "shortage of EIDBI providers" means a lack of availability of providers who meet the EIDBI provider qualification requirements under subdivision 15 that results in the delay of access to timely services under this section, or that significantly impairs the ability of a provider agency to have sufficient providers to meet the requirements of this section. The commissioner shall consider geographic factors when determining the prevalence of a shortage. The commissioner may determine that a shortage exists only in a specific region of the state, multiple regions of the state, or statewide. The commissioner shall also consider the availability of various types of treatment modalities covered under this section.
(b) The commissioner, in consultation with the Early Intensive Developmental and Behavioral Intervention Advisory Council and stakeholders, must establish processes and criteria for granting an exception under this paragraph. The commissioner may grant an exception only if the exception would not compromise a person's safety and not diminish the effectiveness of the treatment. The commissioner may establish an expiration date for an exception granted under this paragraph. The commissioner may grant an exception for the following:
(1) EIDBI provider qualifications under this section;
(3) EIDBI provider or agency standards or requirements.
(c) If the commissioner, in consultation with the Early Intensive Developmental and Behavioral Intervention Advisory Council and stakeholders, determines that a shortage no longer exists, the commissioner must submit a notice that a shortage no longer exists to the chairs and ranking minority members of the senate and the house of representatives committees with jurisdiction over health and human services. The commissioner must post the notice for public comment for 30 days. The commissioner shall consider public comments before submitting to the legislature a request to end the shortage declaration. The commissioner shall not declare the shortage of EIDBI providers ended without direction from the legislature to declare it ended.
Sec. 62. Minnesota Statutes 2024, section 256B.198, is amended to read:
256B.198 PAYMENTS FOR NON-HOSPITAL-BASED GOVERNMENTAL HEALTH CENTERS.
(a) The commissioner may make payments to non-hospital-based health centers operated by a governmental entity for the difference between the expenditures incurred by the health center for patients eligible for medical assistance, and the payments to the health center for medical assistance permitted elsewhere under this chapter.
(b) The nonfederal share of payments authorized under paragraph (a) shall be provided through certified public expenditures authorized under section 256B.199, paragraph (b).
(c) Effective July 1, 2013, or no earlier than 12 months after implementation of a total cost of care demonstration project, Hennepin County may receive federal matching funds for certified public expenditures under paragraph (a), if the county participates in a total cost of care demonstration project under sections 256B.0755 and 256B.0756, or another total cost of care demonstration project approved by the commissioner, and the county exceeds the minimum performance threshold established by the commissioner for the demonstration project. The value of the federal matching funds for the certified public expenditures allocated to Hennepin County shall be equal to the value of savings achieved above the minimum performance threshold. The same proportion of federal matching funds for certified public expenditure allocated to Hennepin County based on savings achieved under the demonstration project shall continue after the demonstration project and must continue to be paid to Hennepin County each year thereafter.
(d) Beginning July 1, 2014, or no earlier than 12 months after the initial allocation under paragraph (c) if a portion of the federal matching funds for certified public expenditure remains with the state, the commissioner shall annually determine if the savings from county's total cost of care demonstration project exceeded the savings from the previous year and allocate federal matching funds for certified public expenditures to Hennepin County equal to the amount of savings achieved above the amount achieved in the previous year. The proportion of federal matching funds for certified public expenditure allocated to Hennepin County shall be paid to Hennepin County each year thereafter, until no federal matching funds for certified public expenditures under paragraph (a) remain with the state.
(e) Nothing under this section precludes Hennepin County from receiving an additional gain-sharing payment or relieves the county from paying a downside risk-sharing payment to the state under the demonstration project under section 256B.0755.
(f) Payments under this
section expire June 30, 2026.
Subd. 5a. Managed care contracts. (a) Managed care contracts under this section and section 256L.12 shall be entered into or renewed on a calendar year basis. The commissioner may issue separate contracts with requirements specific to services to medical assistance recipients age 65 and older.
(b) A prepaid health plan providing covered health services for eligible persons pursuant to chapters 256B and 256L is responsible for complying with the terms of its contract with the commissioner. Requirements applicable to managed care programs under chapters 256B and 256L established after the effective date of a contract with the commissioner take effect when the contract is next issued or renewed.
(c) The commissioner shall withhold five percent of managed care plan payments under this section and county‑based purchasing plan payments under section 256B.692 for the prepaid medical assistance program pending completion of performance targets. Each performance target must be quantifiable, objective, measurable, and reasonably attainable, except in the case of a performance target based on a federal or state law or rule. Criteria for assessment of each performance target must be outlined in writing prior to the contract effective date. Clinical or utilization performance targets and their related criteria must consider evidence-based research and reasonable interventions when available or applicable to the populations served, and must be developed with input from external clinical experts and stakeholders, including managed care plans, county-based purchasing plans, and providers. The managed care or county-based purchasing plan must demonstrate, to the commissioner's satisfaction, that the data submitted regarding attainment of the performance target is accurate. The commissioner shall periodically change the administrative measures used as performance targets in order to improve plan performance across a broader range of administrative services. The performance targets must include measurement of plan efforts to contain spending on health care services and administrative activities. The commissioner may adopt plan‑specific performance targets that take into account factors affecting only one plan, including characteristics of the plan's enrollee population. The withheld funds must be returned no sooner than July of the following year if performance targets in the contract are achieved. The commissioner may exclude special demonstration projects under subdivision 23.
(d) The commissioner shall require that managed care plans:
(1) use the assessment and authorization processes, forms, timelines, standards, documentation, and data reporting requirements, protocols, billing processes, and policies consistent with medical assistance fee-for-service or the Department of Human Services contract requirements for all personal care assistance services under section 256B.0659 and community first services and supports under section 256B.85;
(2) by January 30 of each
year that follows a rate increase for any aspect of services under section
256B.0659 or 256B.85, inform the commissioner and the chairs and ranking
minority members of the legislative committees with jurisdiction over rates
determined under section 256B.851 of the amount of the rate increase that is
paid to each personal care assistance provider agency with which the plan has a
contract; and
(3) use a six-month timely
filing standard and provide an exemption to the timely filing timeliness for
the resubmission of claims where there has been a denial, request for more
information, or system issue.;
(4) have in place a
prepayment review process for all claims that includes claims edit processing
and policies consistent with the enhanced prepayment review process under
section 256B.0447; and
(5) publish metrics
related to program integrity actions and outcomes on a publicly available
website.
(f) Effective for services rendered on or after January 1, 2014, the commissioner shall withhold three percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance program. The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year. The commissioner may exclude special demonstration projects under subdivision 23.
(g) A managed care plan or a county-based purchasing plan under section 256B.692 may include as admitted assets under section 62D.044 any amount withheld under this section that is reasonably expected to be returned.
(h) Contracts between the commissioner and a prepaid health plan are exempt from the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph (a), and 7.
(i) The return of the withhold under paragraphs (e) and (f) is not subject to the requirements of paragraph (c).
(j) Managed care plans and county-based purchasing plans shall maintain current and fully executed agreements for all subcontractors, including bargaining groups, for administrative services that are expensed to the state's public health care programs. Subcontractor agreements determined to be material, as defined by the commissioner after taking into account state contracting and relevant statutory requirements, must be in the form of a written instrument or electronic document containing the elements of offer, acceptance, consideration, payment terms, scope, duration of the contract, and how the subcontractor services relate to state public health care programs. Upon request, the commissioner shall have access to all subcontractor documentation under this paragraph. Nothing in this paragraph shall allow release of information that is nonpublic data pursuant to section 13.02.
(k) The commissioner has
the right to recover from a managed care plan the full monetary amount of any
claims identified as improperly paid during audits or investigations by the
commissioner or the commissioner's contractors or the Centers for Medicare and
Medicaid Services.
Sec. 64. Minnesota Statutes 2024, section 256B.69, is amended by adding a subdivision to read:
Subd. 38. Duties
when a provider is no longer able to provide services. When a provider is subject to a
serious operational event under section 256B.045, managed care and county-based
purchasing plans must follow the complex transition operations plan developed
under section 256B.046, honor existing service authorizations when clinically
appropriate for continuity and safe transfer of services, and ensure timely
contracting or single-case arrangements to prevent service gaps.
Sec. 65. Minnesota Statutes 2024, section 256B.85, subdivision 23a, is amended to read:
Subd. 23a. Sanctions; information for participants upon termination of services. (a) The commissioner may withhold payment from the provider or suspend or terminate the provider enrollment number if the provider fails to comply fully with applicable laws or rules. The provider has the right to appeal the decision of the commissioner under section 256B.064.
(b) Notwithstanding subdivision 13, paragraph (e), if a participant employer fails to comply fully with applicable laws or rules, the commissioner may disenroll the participant from the budget model. A participant may appeal in writing to the department under section 256.045, subdivision 3, to contest the department's decision to disenroll the participant from the budget model.
(d) In the event the
commissioner withholds payment from a CFSS agency-provider, FMS provider, or
consultation services provider, or suspends or terminates a provider enrollment
number of a CFSS agency-provider, FMS provider, or consultation services provider
under this subdivision or section 256B.064, the commissioner may inform the
Office of Ombudsman for Long-Term Care and the lead agencies for all
participants with active service agreements with the agency-provider, FMS
provider, or consultation services provider.
At the commissioner's request, the lead agencies must contact
participants to ensure that the participants are continuing to receive needed
care, and that the participants have been given free choice of agency-provider,
FMS provider, or consultation services provider if they transfer to another
CFSS agency-provider, FMS provider, or consultation services provider. In addition, the commissioner or the
commissioner's delegate may directly notify participants who receive care from
the agency-provider, FMS provider, or consultation services provider that
payments have been or will be withheld or that the provider's participation in
medical assistance has been or will be suspended or terminated, if the
commissioner determines that the notification is necessary to protect the
welfare of the participants.
Sec. 66. MANDATORY
COMPLIANCE TRAINING FOR CURRENTLY ENROLLED HIGH-RISK MEDICAL ASSISTANCE
PROVIDERS.
The owners and employees
of any medical assistance provider agency subject to the requirements of
Minnesota Statutes, section 256B.0446, subdivision 2, and enrolled before
January 1, 2027, must complete initial compliance training by January 1, 2028.
Sec. 67. REPEALER.
Minnesota Statutes 2025
Supplement, section 256B.0701, subdivision 11, is repealed.
ARTICLE 2
DEPARTMENT OF HUMAN SERVICES OFFICE OF INSPECTOR GENERAL POLICY
Section 1. Minnesota Statutes 2024, section 13A.03, is amended by adding a subdivision to read:
Subd. 2a. Exception. Law enforcement may delay notification
under section 13A.02, subdivision 3, or authorize another government authority
to delay notification to a customer without a court order if law enforcement
determines in writing that notification would compromise the integrity of a
current and ongoing criminal investigation.
The written determination from law enforcement must be renewed every 90
days.
Sec. 2. Minnesota Statutes 2024, section 245.095, subdivision 2, is amended to read:
Subd. 2. Definitions. (a) For purposes of this section, the following definitions have the meanings given.
(b) "Associated entity" means a provider or vendor owned or controlled by an excluded individual.
(d)
"Convicted" means a judgment of conviction has been entered by a
federal, state, or local court, regardless of whether an appeal from the
judgment is pending, and includes a stay of adjudication, a court-ordered
diversion program, or a plea of guilty or nolo contendere.
(e) "Credible
allegation of fraud" means an allegation that has been verified by the
commissioner from any source, including but not limited to:
(1) fraud hotline
complaints;
(2) claims data mining;
(3) patterns identified
through provider audits, civil false claims cases, and law enforcement
investigations; and
(4) court filings and
other legal documents, including but not limited to police reports, complaints,
indictments, informations, affidavits, declarations, and search warrants.
Allegations are credible when they have an
indicium of reliability and the state agency has reviewed all allegations,
facts, and evidence carefully and acts judiciously on a case-by-case basis.
(d) (f) "Excluded"
means removed under other authorities from a program administered by a
Minnesota state or federal agency, including. Excluded includes but is not limited to:
(1) a final
determination to stop payments.;
(2) a conclusive
background study disqualification, except for a disqualification issued under
section 245C.15, subdivision 4c, that has not been set aside or had a variance
granted under section 245C.30; and
(3) a final agency
decision regarding a denial of a license application.
(g) "Fraud"
has the meaning given in section 256B.02, subdivision 20.
(e) (h) "Individual"
means a natural person providing products or services as a provider or vendor.
(f) (i) "Provider"
means any entity, individual, owner, controlling individual, license holder,
director, or managerial official of an entity receiving payment from a program
administered by a Minnesota state or federal agency.
Sec. 3. Minnesota Statutes 2024, section 245.095, subdivision 5, is amended to read:
Subd. 5. Withholding
of payments. (a) Except as otherwise
provided by state or federal law, the commissioner may withhold payments to a
provider, vendor, individual, associated individual, or associated entity in
any program administered by the commissioner if the commissioner determines:
(1) there is a
credible allegation of fraud for which an investigation is pending for a
program administered by a Minnesota state or federal agency.;
(2)
the individual, the entity, or an associated individual or entity was convicted
of a crime, in state or federal court, for an offense that involves fraud or
theft against a program administered by the commissioner or another state or
federal agency;
(3) the provider is
operating after a state or federal agency orders the suspension, revocation, or
decertification of the provider's license or certification, or if the provider
is subject to a temporary immediate suspension, regardless of whether the action
is under appeal; or
(4) the provider,
vendor, individual, associated individual, or associated entity, including
those receiving money under any contract or registered program, has a
background study disqualification under section 245C.15, subdivisions 1 to 4b,
that has not been set aside and for which no variance has been issued.
(b) For purposes of this
subdivision, "credible allegation of fraud" means an allegation that
has been verified by the commissioner from any source, including but not
limited to:
(1) fraud hotline
complaints;
(2) claims data mining;
(3) patterns identified
through provider audits, civil false claims cases, and law enforcement
investigations; and
(4) court filings and
other legal documents, including but not limited to police reports, complaints,
indictments, informations, affidavits, declarations, and search warrants.
(c) (b) The
commissioner must send notice of the withholding of payments within five days
of taking such action. The notice must:
(1) state that payments are being withheld according to this subdivision;
(2) set forth the general allegations related to the withholding action, except the notice need not disclose specific information concerning an ongoing investigation;
(3) state that the withholding is for a temporary period and cite the circumstances under which the withholding will be terminated; and
(4) inform the provider, vendor, individual, associated individual, or associated entity of the right to submit written evidence to contest the withholding action for consideration by the commissioner.
(d) (c) If
the commissioner withholds payments under this subdivision, the provider,
vendor, individual, associated individual, or associated entity has a right to
request administrative reconsideration. A
request for administrative reconsideration must be made in writing, state with
specificity the reasons the payment withholding decision is in error, and
include documents to support the request.
Within 60 days from receipt of the request, the commissioner shall
judiciously review allegations, facts, evidence available to the commissioner,
and information submitted by the provider, vendor, individual, associated
individual, or associated entity to determine whether the payment withholding
should remain in place.
(e) (d) The
commissioner shall stop withholding payments if the commissioner determines
there is insufficient evidence of fraud by the provider, vendor, individual,
associated individual, or associated entity or when legal proceedings relating
to the alleged fraud are completed, unless the commissioner has sent notice
under subdivision 3 to the provider, vendor, individual, associated individual,
or associated entity.
(f)
(f) Section 15.013 does
not apply to the commissioner taking action under this section.
Sec. 4. Minnesota Statutes 2024, section 245A.07, subdivision 2a, is amended to read:
Subd. 2a. Immediate
suspension expedited hearing. (a)
Within five working days of receipt of the license holder's timely appeal, the
commissioner shall request assignment of an administrative law judge. The request must include a proposed date,
time, and place of a hearing. A hearing
must be conducted by an administrative law judge within 30 calendar days of the
request for assignment, unless an extension is requested by either party and
granted by the administrative law judge for good cause. The commissioner shall issue a notice of
hearing by certified mail or personal service at least ten working days before
the hearing. The scope of the hearing
shall be limited solely to the issue of whether the temporary immediate
suspension should remain in effect pending the commissioner's final order under
section 245A.08, regarding a licensing sanction issued under subdivision 3 following
the immediate suspension. For
suspensions under subdivision 2, paragraph (a), clause (1), the burden of proof
in expedited hearings under this subdivision shall be limited to is
met only if the commissioner's demonstration commissioner
demonstrates that reasonable cause exists to believe that the license
holder's or controlling individual's actions or failure to comply with
applicable law or rule poses, or the actions of other individuals or conditions
in the program poses an imminent risk of harm to the health, safety, or rights
of persons served by the program. "Reasonable
cause" means there exist specific articulable facts or circumstances which
provide the commissioner with a reasonable suspicion that there is an imminent
risk of harm to the health, safety, or rights of persons served by the program. When the commissioner has determined there is
reasonable cause to order the temporary immediate suspension of a license based
on a violation of safe sleep requirements, as defined in section 245A.1435, the
commissioner is not required to demonstrate that an infant died or was injured
as a result of the safe sleep violations.
For suspensions under subdivision 2, paragraph (a), clause (2), the
burden of proof in expedited hearings under this subdivision shall be
limited to is met only if the commissioner's demonstration commissioner
demonstrates by a preponderance of the evidence that, since the license was
revoked, the license holder committed additional violations of law or rule
which may adversely affect the health or safety of persons served by the
program.
(b) The administrative law judge shall issue findings of fact, conclusions, and a recommendation within ten working days from the date of hearing. The parties shall have ten calendar days to submit exceptions to the administrative law judge's report. The record shall close at the end of the ten-day period for submission of exceptions. The commissioner's final order shall be issued within ten working days from the close of the record. When an appeal of a temporary immediate suspension is withdrawn or dismissed, the commissioner shall issue a final order affirming the temporary immediate suspension within ten calendar days of the commissioner's receipt of the withdrawal or dismissal. Within 90 calendar days after an immediate suspension has been issued and the license holder has not submitted a timely appeal under subdivision 2, paragraph (b), or within 90 calendar days after a final order affirming an immediate suspension, the commissioner shall determine:
(1) whether a final
licensing sanction shall be issued under subdivision 3, paragraph (a), clauses
(1) to (6) (5). The
license holder shall continue to be prohibited from operation of the program
during this 90-day period; or
(2) whether the outcome of
related, ongoing investigations or judicial proceedings are necessary to
determine if a final licensing sanction under subdivision 3, paragraph (a),
clauses (1) to (6) (5), will be issued and whether persons served
by the program remain at an imminent risk of harm during the investigation
period or proceedings. If so, the
commissioner shall issue a suspension order under subdivision 3, paragraph (a),
clause (7). (6); or
(3) whether the license
holder or controlling individual remains the subject of a pending
administrative, civil, or criminal investigation or subject to an
administrative or civil action related to fraud against a program administered
by a state or federal agency. If so, the
commissioner shall issue a suspension order under subdivision 3, paragraph (a),
clause (6).
(d) The license holder shall continue to be prohibited from operation of the program while a suspension order issued under paragraph (b), clause (2) or (3), remains in effect.
(e) For suspensions under
subdivision 2, paragraph (a), clause (3), the burden of proof in expedited
hearings under this subdivision shall be limited to is met only if
the commissioner's demonstration commissioner demonstrates by a
preponderance of the evidence that a criminal complaint and warrant or summons
was issued for the license holder or controlling individual that was not
dismissed, and that the criminal charge is an offense that involves fraud or
theft against a program administered by the commissioner.
(f) For suspensions
under subdivision 2, paragraph (c), the burden of proof in expedited hearings
under this subdivision is met only if the commissioner demonstrates by a
preponderance of the evidence that the license holder or controlling individual
is the subject of a pending administrative, civil, or criminal investigation or
is subject to an administrative or civil action related to fraud against a
program administered by a state or federal agency.
Sec. 5. Minnesota Statutes 2025 Supplement, section 245A.07, subdivision 3, is amended to read:
Subd. 3. License suspension, revocation, or fine. (a) The commissioner may suspend or revoke a license, or impose a fine if:
(1) a license holder fails to comply fully with applicable laws or rules including but not limited to the requirements of this chapter and chapter 245C;
(2) a license holder, a controlling individual, or an individual living in the household where the licensed services are provided or is otherwise subject to a background study has been disqualified and the disqualification was not set aside and no variance has been granted;
(3) a license holder knowingly withholds relevant information from or gives false or misleading information to the commissioner in connection with an application for a license, in connection with the background study status of an individual, during an investigation, or regarding compliance with applicable laws or rules;
(4) a license holder is excluded from any program administered by the commissioner under section 245.095;
(5) revocation is required under section 245A.04, subdivision 7, paragraph (d); or
(6) suspension is necessary under subdivision 2a, paragraph (b), clause (2) or (3).
A license holder who has had a license issued under this chapter suspended, revoked, or has been ordered to pay a fine must be given notice of the action by certified mail, by personal service, or through the provider licensing and reporting hub. If mailed, the notice must be mailed to the address shown on the application or the last known address of the license holder. The notice must state in plain language the reasons the license was suspended or revoked, or a fine was ordered.
(b) If the license was suspended or revoked, the notice must inform the license holder of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The license holder may appeal an order suspending or revoking a license. The appeal of an order suspending or revoking a license must be made in writing by certified mail, by personal service, or through the provider licensing and reporting hub. If mailed, the
(c)(1) If the license holder was ordered to pay a fine, the notice must inform the license holder of the responsibility for payment of fines and the right to a contested case hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal of an order to pay a fine must be made in writing by certified mail, by personal service, or through the provider licensing and reporting hub. If mailed, the appeal must be postmarked and sent to the commissioner within ten calendar days after the license holder receives notice that the fine has been ordered. If a request is made by personal service, it must be received by the commissioner within ten calendar days after the license holder received the order. If the order is issued through the provider hub, the appeal must be received by the commissioner within ten calendar days from the date the commissioner issued the order through the hub.
(2) The license holder shall pay the fines assessed on or before the payment date specified. If the license holder fails to fully comply with the order, the commissioner may issue a second fine or suspend the license until the license holder complies. If the license holder receives state funds, the state, county, or municipal agencies or departments responsible for administering the funds shall withhold payments and recover any payments made while the license is suspended for failure to pay a fine. A timely appeal shall stay payment of the fine until the commissioner issues a final order.
(3) A license holder shall promptly notify the commissioner of human services, in writing, when a violation specified in the order to forfeit a fine is corrected. If upon reinspection the commissioner determines that a violation has not been corrected as indicated by the order to forfeit a fine, the commissioner may issue a second fine. The commissioner shall notify the license holder by certified mail, by personal service, or through the provider licensing and reporting hub that a second fine has been assessed. The license holder may appeal the second fine as provided under this subdivision.
(4) Fines shall be assessed as follows:
(i) the license holder shall forfeit $1,000 for each determination of maltreatment of a child under chapter 260E or the maltreatment of a vulnerable adult under section 626.557 for which the license holder is determined responsible for the maltreatment under section 260E.30, subdivision 4, paragraphs (a) and (b), or 626.557, subdivision 9c, paragraph (c);
(ii) if the commissioner determines that a determination of maltreatment for which the license holder is responsible is the result of maltreatment that meets the definition of serious maltreatment as defined in section 245C.02, subdivision 18, the license holder shall forfeit $5,000;
(iii) the license holder shall forfeit $200 for each occurrence of a violation of law or rule governing matters of health, safety, or supervision, including but not limited to the provision of adequate staff-to-child or adult ratios, and failure to comply with background study requirements under chapter 245C; and
(iv) the license holder shall forfeit $100 for each occurrence of a violation of law or rule other than those subject to a $5,000, $1,000, or $200 fine in items (i) to (iii).
(5) When a fine has been assessed, the license holder may not avoid payment by closing, selling, or otherwise transferring the licensed program to a third party. In such an event, the license holder will be personally liable for payment. In the case of a corporation, each controlling individual is personally and jointly liable for payment.
(d) Except for background study violations involving the failure to comply with an order to immediately remove an individual or an order to provide continuous, direct supervision, the commissioner shall not issue a fine under paragraph (c) relating to a background study violation to a license holder who self-corrects a background study violation before the commissioner discovers the violation. A license holder who has previously exercised the provisions of this paragraph to avoid a fine for a background study violation may not avoid a fine for a subsequent background study violation unless at least 365 days have passed since the license holder self-corrected the earlier background study violation.
Sec. 6. Minnesota Statutes 2025 Supplement, section 245A.10, subdivision 4, is amended to read:
Subd. 4. License or certification fee for certain programs. (a)(1) A program licensed to provide one or more of the home and community-based services and supports identified under chapter 245D to persons with disabilities or age 65 and older, shall pay an annual nonrefundable license fee based on revenues derived from the provision of services that would require licensure under chapter 245D during the calendar year immediately preceding the year in which the license fee is paid, according to the following schedule:
(2) If requested, the license holder shall provide the commissioner information to verify the license holder's annual revenues or other information as needed, including copies of documents submitted to the Department of Revenue.
(4) A license holder that knowingly provides the commissioner incorrect revenue amounts for the purpose of paying a lower license fee shall be subject to a civil penalty in the amount of double the fee the provider should have paid.
(b) A substance use disorder treatment program licensed under chapter 245G, to provide substance use disorder treatment shall pay an annual nonrefundable license fee based on the following schedule:
|
|
Licensed Capacity |
License Fee |
|
|
1 to 24 persons |
$2,600 |
|
|
25 to 49 persons |
$3,000 |
|
|
50 to 74 persons |
$5,000 |
|
|
75 to 99 persons |
$10,000 |
|
|
100 to 199 persons |
$15,000 |
|
|
200 or more persons |
$20,000 |
(c) A detoxification program licensed under Minnesota Rules, parts 9530.6510 to 9530.6590, or a withdrawal management program licensed under chapter 245F shall pay an annual nonrefundable license fee based on the following schedule:
|
|
Licensed Capacity |
License Fee |
|
|
1 to 24 persons |
$2,600 |
|
|
25 to 49 persons |
$3,000 |
|
|
50 or more persons |
$5,000 |
A detoxification program that also operates a withdrawal management program at the same location shall only pay one fee based upon the licensed capacity of the program with the higher overall capacity.
(d) A children's residential facility licensed under Minnesota Rules, chapter 2960, to serve children shall pay an annual nonrefundable license fee based on the following schedule:
|
|
Licensed Capacity |
License Fee |
|
|
1 to 24 persons |
$1,000 |
|
|
25 to 49 persons |
$1,100 |
|
|
50 to 74 persons |
$1,200 |
|
|
75 to 99 persons |
$1,300 |
|
|
100 or more persons |
$1,400 |
(e) A residential facility licensed under section 245I.23 or Minnesota Rules, parts 9520.0500 to 9520.0670, to serve persons with mental illness shall pay an annual nonrefundable license fee based on the following schedule:
|
|
Licensed Capacity |
License Fee |
|
|
1 to 24 persons |
$2,600 |
|
|
25 to 49 persons |
$3,000 |
|
|
50 or more persons |
$20,000 |
|
|
Licensed Capacity |
License Fee |
|
|
1 to 24 persons |
$450 |
|
|
25 to 49 persons |
$650 |
|
|
50 to 74 persons |
$850 |
|
|
75 to 99 persons |
$1,050 |
|
|
100 or more persons |
$1,250 |
(g) A program licensed as an adult day care center licensed under Minnesota Rules, parts 9555.9600 to 9555.9730, shall pay an annual nonrefundable license fee based on the following schedule:
|
|
Licensed Capacity |
License Fee |
|
|
1 to 24 persons |
$2,600 |
|
|
25 to 49 persons |
$3,000 |
|
|
50 to 74 persons |
$5,000 |
|
|
75 to 99 persons |
$10,000 |
|
|
100 to 199 persons |
$15,000 |
|
|
200 or more persons |
$20,000 |
(h) A program licensed to provide treatment services to persons with sexual psychopathic personalities or sexually dangerous persons under Minnesota Rules, parts 9515.3000 to 9515.3110, shall pay an annual nonrefundable license fee of $20,000.
(i) A mental health clinic certified under section 245I.20 shall pay an annual nonrefundable certification fee of $1,550. If the mental health clinic provides services at a primary location with satellite facilities, the satellite facilities shall be certified with the primary location without an additional charge.
(j) If a program subject to annual fees under paragraph (b) provides services at a primary location with satellite facilities, the satellite facilities must be licensed with the primary location and must be subject to an additional $500 annual nonrefundable license fee per satellite facility.
Sec. 7. Minnesota Statutes 2025 Supplement, section 245A.142, subdivision 3, is amended to read:
Subd. 3. Provisional license. (a) Beginning January 1, 2026, the commissioner shall begin issuing provisional licenses to agencies enrolled under chapter 256B to provide EIDBI services.
(b) Agencies enrolled before July 1, 2025, have until May 31, 2026, to submit an application for provisional licensure on the forms and in the manner prescribed by the commissioner.
(c) Beginning June 1, 2026, an agency must not operate if it has not submitted an application for provisional licensure under this section. The commissioner shall disenroll an agency from providing EIDBI services under chapter 256B if the agency fails to submit an application for provisional licensure by May 31, 2026.
(d) The commissioner must determine whether a provisional license applicant complies with all applicable rules and laws and either issue a provisional license to the applicant or deny the application by December 31, 2026.
(e) A provisional license is effective until comprehensive EIDBI agency licensure standards are in effect unless the provisional license is suspended or revoked.
(f)
Initial provisional license applications are subject to the $2,100 application
fee under section 245A.10, subdivision 3.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 8. Minnesota Statutes 2025 Supplement, section 245A.242, subdivision 2, is amended to read:
Subd. 2. Emergency
overdose treatment. (a) A license
holder must maintain a supply of opiate antagonists as defined in section
604A.04, subdivision 1, available for emergency treatment of opioid overdose and. For administration via intramuscular
injection, a license holder must have a written standing order protocol by
a physician who is licensed under chapter 147, advanced practice registered
nurse who is licensed under chapter 148, or physician assistant who is licensed
under chapter 147A, that permits the license holder to maintain a supply of intramuscular
injection opiate antagonists on site.
A license holder must require staff to undergo training in the specific
mode of administration used at the program, which may include intranasal
administration, intramuscular injection, or both, before the staff has direct
contact, as defined in section 245C.02, subdivision 11, with a person served by
the program.
(b) Notwithstanding any requirements to the contrary in Minnesota Rules, chapters 2960 and 9530, and Minnesota Statutes, chapters 245F, 245G, and 245I:
(1) emergency opiate antagonist medications are not required to be stored in a locked area and staff and adult clients may carry this medication on them and store it in an unlocked location;
(2) staff persons who only administer emergency opiate antagonist medications only require the training required by paragraph (a), which any knowledgeable trainer may provide. The trainer is not required to be a registered nurse or part of an accredited educational institution; and
(3) nonresidential substance use disorder treatment programs that do not administer client medications beyond emergency opiate antagonist medications are not required to have the policies and procedures required in section 245G.08, subdivisions 5 and 6, and must instead describe the program's procedures for administering opiate antagonist medications in the license holder's description of health care services under section 245G.08, subdivision 1.
Sec. 9. Minnesota Statutes 2024, section 245C.02, subdivision 18, is amended to read:
Subd. 18. Serious
maltreatment. (a) "Serious
maltreatment" means sexual abuse, maltreatment resulting in death, neglect
resulting in serious injury which reasonably requires the care of a physician,
advanced practice registered nurse, or physician assistant whether or not the
care of a physician, advanced practice registered nurse, or physician assistant
was sought, or abuse resulting in serious injury, or financial
exploitation of a vulnerable adult if the value of the funds or property is
$1,000 or greater.
(b) For purposes of this definition, "care of a physician, advanced practice registered nurse, or physician assistant" is treatment received or ordered by a physician, physician assistant, or advanced practice registered nurse, but does not include:
(1) diagnostic testing, assessment, or observation;
(2) the application of, recommendation to use, or prescription solely for a remedy that is available over the counter without a prescription; or
(3) a prescription solely for a topical antibiotic to treat burns when there is no follow-up appointment.
(d) Serious maltreatment includes neglect when it results in criminal sexual conduct against a child or vulnerable adult.
Sec. 10. Minnesota Statutes 2024, section 245C.03, subdivision 1, is amended to read:
Subdivision 1. Programs licensed by the commissioner. (a) The commissioner shall conduct a background study on:
(1) the person or persons applying for a license;
(2) an individual age 13 and over living in the household where the licensed program will be provided who is not receiving licensed services from the program;
(3) current or prospective employees of the applicant or license holder who will have direct contact with persons served by the facility, agency, or program;
(4) volunteers or student volunteers who will have direct contact with persons served by the program to provide program services if the contact is not under the continuous, direct supervision by an individual listed in clause (1) or (3);
(5) an individual age ten to 12 living in the household where the licensed services will be provided when the commissioner has reasonable cause as defined in section 245C.02, subdivision 15;
(6) an individual who, without providing direct contact services at a licensed program, may have unsupervised access to children or vulnerable adults receiving services from a program, when the commissioner has reasonable cause as defined in section 245C.02, subdivision 15; and
(7) all controlling individuals as defined in section 245A.02, subdivision 5a;
(8) notwithstanding clause (3), for children's residential facilities and foster residence settings, any adult working in the facility, whether or not the individual will have direct contact with persons served by the facility.
(b) For child foster care when the license holder resides in the home where foster care services are provided, a short-term substitute caregiver providing direct contact services for a child for less than 72 hours of continuous care is not required to receive a background study under this chapter.
(c) This subdivision applies to the following programs that must be licensed under chapter 245A:
(1) adult foster care;
(2) children's residential facilities;
(3) licensed home and community-based services under chapter 245D;
(4) residential mental health programs for adults;
(6) withdrawal management programs under chapter 245F;
(7) adult day care centers;
(8) family adult day services;
(9) detoxification programs;
(10) community residential settings;
(11) intensive residential
treatment services and residential crisis stabilization under chapter 245I; and
(12) treatment programs for
persons with sexual psychopathic personality or sexually dangerous persons,
licensed under chapter 245A and according to Minnesota Rules, parts 9515.3000
to 9515.3110.; and
(13) children's foster
residence settings.
EFFECTIVE DATE. This
section is effective November 3, 2026.
Sec. 11. Minnesota Statutes 2024, section 245C.04, subdivision 1, is amended to read:
Subdivision 1. Licensed programs; other child care programs. (a) The commissioner shall conduct a background study of an individual required to be studied under section 245C.03, subdivision 1, at least upon application for initial license for all license types.
(b) The commissioner shall conduct a background study of an individual required to be studied under section 245C.03, subdivision 1, including a child care background study subject as defined in section 245C.02, subdivision 6a, in a family child care program, licensed child care center, certified license-exempt child care center, or legal nonlicensed child care provider, on a schedule determined by the commissioner. Except as provided in section 245C.05, subdivision 5a, a child care background study must include submission of fingerprints for a national criminal history record check and a review of the information under section 245C.08. A background study for a child care program must be repeated within five years from the most recent study conducted under this paragraph.
(c) At reauthorization or when a new background study is needed under section 142E.16, subdivision 2, for a legal nonlicensed child care provider authorized under chapter 142E:
(1) for a background study affiliated with a legal nonlicensed child care provider, the individual shall provide information required under section 245C.05, subdivision 1, paragraphs (a), (b), and (d), to the commissioner and be fingerprinted and photographed under section 245C.05, subdivision 5; and
(2) the commissioner shall verify the information received under clause (1) and submit the request in NETStudy 2.0 to complete the background study.
(d) At reapplication for a family child care license:
(1) for a background study affiliated with a licensed family child care center, the individual shall provide information required under section 245C.05, subdivision 1, paragraphs (a), (b), and (d), to the county agency, and be fingerprinted and photographed under section 245C.05, subdivision 5;
(3) the background study conducted by the commissioner under this paragraph must include a review of the information required under section 245C.08.
(e) The commissioner is not
required to conduct a study of an individual at the time of reapplication for a
license if the individual's background study was completed by the commissioner
of human services and the following conditions are met:
(1) a study of the
individual was conducted either at the time of initial licensure or when the
individual became affiliated with the license holder;
(2) the individual has been
continuously affiliated with the license holder since the last study was
conducted; and
(3) the last study of the
individual was conducted on or after October 1, 1995.
(f) (e) The
commissioner of human services shall conduct a background study of an
individual specified under section 245C.03, subdivision 1, paragraph (a),
clauses (2) to (6), who is newly affiliated, or currently affiliated without
a background study that was submitted through the electronic system known as
NETStudy 2.0, with a child foster family setting license holder:
(1) the county or private agency shall collect and forward to the commissioner the information required under section 245C.05, subdivisions 1 and 5, when the child foster family setting applicant or license holder resides in the home where child foster care services are provided; and
(2) the background study conducted by the commissioner of human services under this paragraph must include a review of the information required under section 245C.08, subdivisions 1, 3, and 4.
(g) (f) The
commissioner shall conduct a background study of an individual specified under
section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly
affiliated, or currently affiliated without a background study that was
submitted through the electronic system known as NETStudy 2.0, with an
adult foster care or family adult day services and with a family child care
license holder or a legal nonlicensed child care provider authorized under
chapter 142E and:
(1) except as provided in section 245C.05, subdivision 5a, the county shall collect and forward to the commissioner the information required under section 245C.05, subdivision 1, paragraphs (a) and (b), and subdivision 5, paragraph (b), for background studies conducted by the commissioner for all family adult day services, for adult foster care when the adult foster care license holder resides in the adult foster care residence, and for family child care and legal nonlicensed child care authorized under chapter 142E;
(2) the license holder shall collect and forward to the commissioner the information required under section 245C.05, subdivisions 1, paragraphs (a) and (b); and 5, paragraphs (a) and (b), for background studies conducted by the commissioner for adult foster care when the license holder does not reside in the adult foster care residence; and
(3) the background study conducted by the commissioner under this paragraph must include a review of the information required under section 245C.08, subdivision 1, paragraph (a), and subdivisions 3 and 4.
(h) (g) Applicants
for licensure, license holders, and other entities as provided in this chapter
must submit completed background study requests to the commissioner using the
electronic system known as NETStudy 2.0 before individuals specified in
section 245C.03, subdivision 1, begin positions allowing direct contact in any
licensed program.
(i)
(1) an individual returns to a position requiring a background study following an absence of 120 or more consecutive days; or
(2) a program that discontinued providing licensed direct contact services for 120 or more consecutive days begins to provide direct contact licensed services again.
The license holder shall maintain a copy of the notification provided to the commissioner under this paragraph in the program's files. If the individual's disqualification was previously set aside for the license holder's program and the new background study results in no new information that indicates the individual may pose a risk of harm to persons receiving services from the license holder, the previous set-aside shall remain in effect.
(j) (i) For
purposes of this section, a physician licensed under chapter 147, advanced
practice registered nurse licensed under chapter 148, or physician assistant
licensed under chapter 147A is considered to be continuously affiliated upon
the license holder's receipt from the commissioner of health or human services
of the physician's, advanced practice registered nurse's, or physician
assistant's background study results.
(k) (j) For
purposes of family child care, a substitute caregiver must receive repeat
background studies at the time of each license renewal.
(l) (k) A
repeat background study at the time of license renewal is not required if the
family child care substitute caregiver's background study was completed by the
commissioner on or after October 1, 2017, and the substitute caregiver is on
the license holder's active roster in NETStudy 2.0.
(m) (l) Before
and after school programs authorized under chapter 142E, are exempt from the
background study requirements under section 123B.03, for an employee for whom a
background study under this chapter has been completed.
Sec. 12. Minnesota Statutes 2025 Supplement, section 245C.07, is amended to read:
245C.07 STUDY SUBJECT AFFILIATED WITH MULTIPLE FACILITIES.
(a) Subject to the conditions in paragraph (d), when a license holder, applicant, or other entity owns multiple programs or services that are licensed by the Department of Human Services; Department of Children, Youth, and Families; Department of Health; or Department of Corrections, only one background study is required for an individual who provides direct contact services in one or more of the licensed programs or services if:
(1) the license holder designates one individual with one address and telephone number as the person to receive sensitive background study information for the multiple licensed programs or services that depend on the same background study; and
(2) the individual designated to receive the sensitive background study information is capable of determining, upon request of the department, whether a background study subject is providing direct contact services in one or more of the license holder's programs or services and, if so, at which location or locations.
(b) When a license holder maintains background study compliance for multiple licensed programs according to paragraph (a), and one or more of the licensed programs closes, the license holder shall immediately notify the commissioner which staff must be transferred to an active license so that the background studies can be electronically paired with the license holder's active program.
When the commissioner receives a notice, the commissioner shall notify each program or service identified by the background study subject of the study results.
The background study notice the commissioner sends to the subsequent agencies shall satisfy those programs' or services' responsibilities for initiating a background study on that individual.
(d) If a background study
was conducted on an individual related to child foster care and the
requirements under paragraph (a) are met, the background study is transferable
across all licensed programs. If a
background study was conducted on an individual under a license other than
child foster care and the requirements under paragraph (a) are met, the
background study is transferable to all licensed programs except child foster
care.
(e) The provisions of this section that allow a single background study in one or more licensed programs or services do not apply to background studies submitted by adoption agencies, supplemental nursing services agencies, personnel pool agencies, educational programs, professional services agencies, temporary personnel agencies, and unlicensed personal care provider organizations.
(f) For an entity operating under NETStudy 2.0, the entity's active roster must be the system used to document when a background study subject is affiliated with multiple entities. For a background study to be transferable:
(1) the background study subject must be on and moving to a roster for which the person designated to receive sensitive background study information is the same; and
(2) the same entity must own or legally control both the roster from which the transfer is occurring and the roster to which the transfer is occurring. For an entity that holds or controls multiple licenses, or unlicensed personal care provider organizations, there must be a common highest level entity that has a legally identifiable structure that can be verified through records available from the secretary of state.
EFFECTIVE DATE. This
section is effective July 1, 2026.
Sec. 13. Minnesota Statutes 2025 Supplement, section 245C.13, subdivision 2, is amended to read:
Subd. 2. Activities pending completion of background study. The subject of a background study may not perform any activity requiring a background study under paragraph (c) until the commissioner has issued one of the notices under paragraph (a).
(a) Notices from the commissioner required prior to activity under paragraph (c) include:
(1) a notice of the study results under section 245C.17 stating that:
(i) the individual is not disqualified; or
(ii) more time is needed to complete the study but the individual is not required to be removed from direct contact or access to people receiving services prior to completion of the study as provided under section 245C.17, subdivision 1, paragraph (b) or (c). The notice that more time is needed to complete the study must also indicate whether the individual is required to be under continuous direct supervision prior to completion of the background study. When more time is necessary to complete a background study of an individual affiliated with a Title IV-E eligible children's residential facility or foster residence setting, the individual may not work in the facility or setting regardless of whether or not the individual is supervised;
(3) a notice that a variance has been granted related to the individual under section 245C.30.
(b) For a child care
background study affiliated with a licensed child care center or certified
license-exempt child care center subject required to submit fingerprints
for a national criminal history check, except as provided in section 245C.05,
subdivision 5a, the notice sent under paragraph (a), clause (1), item (ii),
must not be issued until the commissioner receives a qualifying result for the
individual for the fingerprint-based national criminal history record check or
the fingerprint-based criminal history information from the Bureau of Criminal
Apprehension. The notice must require
the individual to be under continuous direct supervision prior to completion of
the remainder of the background study except as permitted in subdivision 3.
(c) Activities prohibited prior to receipt of notice under paragraph (a) include:
(1) being issued a license;
(2) living in the household where the licensed program will be provided;
(3) providing direct contact services to persons served by a program unless the subject is under continuous direct supervision;
(4) having access to persons receiving services if the background study was completed under section 144.057, subdivision 1, or 245C.03, subdivision 1, paragraph (a), clause (2), (5), or (6), unless the subject is under continuous direct supervision;
(5) for licensed child
care centers and certified license-exempt child care centers a child
care background study subject, providing direct contact services to
persons served by the program performing any act listed in section
245C.02, subdivision 6a, unless the study is being renewed under section
245C.04, subdivision 1, paragraph (b), and it has been less than five years
since the child care background study subject was previously disqualified or
provided notice under paragraph (a), clause (1), item (i);
(6) for children's residential facilities or foster residence settings, working in the facility or setting;
(7) for background studies affiliated with a personal care provider organization, except as provided in section 245C.03, subdivision 3b, before a personal care assistant provides services, the personal care assistance provider agency must initiate a background study of the personal care assistant under this chapter and the personal care assistance provider agency must have received a notice from the commissioner that the personal care assistant is:
(i) not disqualified under section 245C.14; or
(ii) disqualified, but the personal care assistant has received a set aside of the disqualification under section 245C.22; or
(8) for background studies affiliated with an early intensive developmental and behavioral intervention provider, before an individual provides services, the early intensive developmental and behavioral intervention provider must initiate a background study for the individual under this chapter and the early intensive developmental and behavioral intervention provider must have received a notice from the commissioner that the individual is:
(i) not disqualified under section 245C.14; or
(ii) disqualified, but the individual has received a set-aside of the disqualification under section 245C.22.
EFFECTIVE DATE. This
section is effective July 1, 2026.
Subd. 2. 15-year disqualification. (a) An individual is disqualified under section 245C.14 if: (1) less than 15 years have passed since the discharge of the sentence imposed, if any, for the offense; and (2) the individual has committed a felony-level violation of any of the following offenses: sections 152.021, subdivision 1 or 2b, (aggravated controlled substance crime in the first degree; sale crimes); 152.022, subdivision 1 (controlled substance crime in the second degree; sale crimes); 152.023, subdivision 1 (controlled substance crime in the third degree; sale crimes); 152.024, subdivision 1 (controlled substance crime in the fourth degree; sale crimes); 256.98 (wrongfully obtaining assistance); 268.182 (fraud); 393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 518B.01, subdivision 14 (violation of an order for protection); 609.165 (felon ineligible to possess firearm); 609.2112, 609.2113, or 609.2114 (criminal vehicular homicide or injury); 609.215 (suicide); 609.223 or 609.2231 (assault in the third or fourth degree); repeat offenses under 609.224 (assault in the fifth degree); 609.229 (crimes committed for benefit of a gang); 609.2325 (criminal abuse of a vulnerable adult); 609.2334 (violation of an order for protection against financial exploitation of a vulnerable adult); 609.2335 (financial exploitation of a vulnerable adult); 609.235 (use of drugs to injure or facilitate crime); 609.24 (simple robbery); 609.247, subdivision 4 (carjacking in the third degree); 609.255 (false imprisonment); 609.2664 (manslaughter of an unborn child in the first degree); 609.2665 (manslaughter of an unborn child in the second degree); 609.267 (assault of an unborn child in the first degree); 609.2671 (assault of an unborn child in the second degree); 609.268 (injury or death of an unborn child in the commission of a crime); 609.27 (coercion); 609.275 (attempt to coerce); 609.466 (medical assistance fraud); 609.495 (aiding an offender); 609.498, subdivision 1 or 1b (aggravated first-degree or first-degree tampering with a witness); 609.52 (theft); 609.521 (possession of shoplifting gear); 609.522 (organized retail theft); 609.525 (bringing stolen goods into Minnesota); 609.527 (identity theft); 609.53 (receiving stolen property); 609.535 (issuance of dishonored checks); 609.542 (illegal remunerations); 609.562 (arson in the second degree); 609.563 (arson in the third degree); 609.582 (burglary); 609.59 (possession of burglary tools); 609.611 (insurance fraud); 609.625 (aggravated forgery); 609.63 (forgery); 609.631 (check forgery; offering a forged check); 609.635 (obtaining signature by false pretense); 609.66 (dangerous weapons); 609.67 (machine guns and short-barreled shotguns); 609.687 (adulteration); 609.71 (riot); 609.713 (terroristic threats); 609.746 (interference with privacy); 609.82 (fraud in obtaining credit); 609.821 (financial transaction card fraud); 617.23 (indecent exposure), not involving a minor; repeat offenses under 617.241 (obscene materials and performances; distribution and exhibition prohibited; penalty); or 624.713 (certain persons not to possess firearms).
(b) An individual is disqualified under section 245C.14 if less than 15 years has passed since the individual's aiding and abetting, attempt, or conspiracy to commit any of the offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.
(c) An individual is disqualified under section 245C.14 if less than 15 years has passed since the termination of the individual's parental rights under section 260C.301, subdivision 1, paragraph (b), or subdivision 3.
(d) An individual is disqualified under section 245C.14 if less than 15 years has passed since the discharge of the sentence imposed for an offense in any other state or country, the elements of which are substantially similar to the elements of the offenses listed in paragraph (a) or since the termination of parental rights in any other state or country, the elements of which are substantially similar to the elements listed in paragraph (c).
(e) If the individual studied commits one of the offenses listed in paragraph (a), but the sentence or level of offense is a gross misdemeanor or misdemeanor, the individual is disqualified but the disqualification look-back period for the offense is the period applicable to the gross misdemeanor or misdemeanor disposition.
(f) When a disqualification is based on a judicial determination other than a conviction, the disqualification period begins from the date of the court order. When a disqualification is based on an admission, the disqualification period begins from the date of an admission in court. When a disqualification is based on an Alford Plea, the disqualification period begins from the date the Alford Plea is entered in court. When a disqualification is
Sec. 15. Minnesota Statutes 2024, section 245C.15, subdivision 3, is amended to read:
Subd. 3. Ten-year disqualification. (a) An individual is disqualified under section 245C.14 if: (1) less than ten years have passed since the discharge of the sentence imposed, if any, for the offense; and (2) the individual has committed a gross misdemeanor-level violation of any of the following offenses: sections 256.98 (wrongfully obtaining assistance); 260B.425 (criminal jurisdiction for contributing to status as a juvenile petty offender or delinquency); 260C.425 (criminal jurisdiction for contributing to need for protection or services); 268.182 (fraud); 393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 609.2112, 609.2113, or 609.2114 (criminal vehicular homicide or injury); 609.221 or 609.222 (assault in the first or second degree); 609.223 or 609.2231 (assault in the third or fourth degree); 609.224 (assault in the fifth degree); 609.224, subdivision 2, paragraph (c) (assault in the fifth degree by a caregiver against a vulnerable adult); 609.2242 and 609.2243 (domestic assault); 609.23 (mistreatment of persons confined); 609.231 (mistreatment of residents or patients); 609.2325 (criminal abuse of a vulnerable adult); 609.233 (criminal neglect of a vulnerable adult); 609.2334 (violation of an order for protection against financial exploitation of a vulnerable adult); 609.2335 (financial exploitation of a vulnerable adult); 609.234 (failure to report maltreatment of a vulnerable adult); 609.265 (abduction); 609.275 (attempt to coerce); 609.324, subdivision 1a (other prohibited acts; minor engaged in prostitution); 609.33 (disorderly house); 609.377 (malicious punishment of a child); 609.378 (neglect or endangerment of a child); 609.466 (medical assistance fraud); 609.52 (theft); 609.522 (organized retail theft); 609.525 (bringing stolen goods into Minnesota); 609.527 (identity theft); 609.53 (receiving stolen property); 609.535 (issuance of dishonored checks); 609.582 (burglary); 609.59 (possession of burglary tools); 609.611 (insurance fraud); 609.631 (check forgery; offering a forged check); 609.66 (dangerous weapons); 609.71 (riot); 609.72, subdivision 3 (disorderly conduct against a vulnerable adult); 609.746 (interference with privacy); 609.749, subdivision 2 (harassment); 609.82 (fraud in obtaining credit); 609.821 (financial transaction card fraud); 617.23 (indecent exposure), not involving a minor; 617.241 (obscene materials and performances); 617.243 (indecent literature, distribution); 617.293 (harmful materials; dissemination and display to minors prohibited); or Minnesota Statutes 2012, section 609.21; or violation of an order for protection under section 518B.01, subdivision 14.
(b) An individual is disqualified under section 245C.14 if less than ten years has passed since the individual's aiding and abetting, attempt, or conspiracy to commit any of the offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.
(c) An individual is disqualified under section 245C.14 if less than ten years has passed since the discharge of the sentence imposed for an offense in any other state or country, the elements of which are substantially similar to the elements of any of the offenses listed in paragraph (a).
(d) If the individual studied commits one of the offenses listed in paragraph (a), but the sentence or level of offense is a misdemeanor disposition, the individual is disqualified but the disqualification lookback period for the offense is the period applicable to misdemeanors.
(e) When a disqualification is based on a judicial determination other than a conviction, the disqualification period begins from the date of the court order. When a disqualification is based on an admission, the disqualification period begins from the date of an admission in court. When a disqualification is based on an Alford Plea, the disqualification period begins from the date the Alford Plea is entered in court. When a disqualification is based on a preponderance of evidence of a disqualifying act, the disqualification date begins from the date of the dismissal, the date of discharge of the sentence imposed for a conviction for a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.
Subd. 4. Seven-year disqualification. (a) An individual is disqualified under section 245C.14 if: (1) less than seven years has passed since the discharge of the sentence imposed, if any, for the offense; and (2) the individual has committed a misdemeanor-level violation of any of the following offenses: sections 256.98 (wrongfully obtaining assistance); 260B.425 (criminal jurisdiction for contributing to status as a juvenile petty offender or delinquency); 260C.425 (criminal jurisdiction for contributing to need for protection or services); 268.182 (fraud); 393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 609.2112, 609.2113, or 609.2114 (criminal vehicular homicide or injury); 609.221 (assault in the first degree); 609.222 (assault in the second degree); 609.223 (assault in the third degree); 609.2231 (assault in the fourth degree); 609.224 (assault in the fifth degree); 609.2242 (domestic assault); 609.2334 (violation of an order for protection against financial exploitation of a vulnerable adult); 609.2335 (financial exploitation of a vulnerable adult); 609.234 (failure to report maltreatment of a vulnerable adult); 609.2672 (assault of an unborn child in the third degree); 609.27 (coercion); violation of an order for protection under 609.3232 (protective order authorized; procedures; penalties); 609.466 (medical assistance fraud); 609.52 (theft); 609.522 (organized retail theft); 609.525 (bringing stolen goods into Minnesota); 609.527 (identity theft); 609.53 (receiving stolen property); 609.535 (issuance of dishonored checks); 609.611 (insurance fraud); 609.66 (dangerous weapons); 609.665 (spring guns); 609.746 (interference with privacy); 609.79 (obscene or harassing telephone calls); 609.795 (letter, telegram, or package; opening; harassment); 609.82 (fraud in obtaining credit); 609.821 (financial transaction card fraud); 617.23 (indecent exposure), not involving a minor; 617.293 (harmful materials; dissemination and display to minors prohibited); or Minnesota Statutes 2012, section 609.21; or violation of an order for protection under section 518B.01 (Domestic Abuse Act).
(b) An individual is disqualified under section 245C.14 if less than seven years has passed since a determination or disposition of the individual's:
(1) failure to make required reports under section 260E.06 or 626.557, subdivision 3, for incidents in which: (i) the final disposition under section 626.557 or chapter 260E was substantiated maltreatment, and (ii) the maltreatment was recurring or serious; or
(2) substantiated serious or recurring maltreatment of a minor under chapter 260E, a vulnerable adult under section 626.557, or serious or recurring maltreatment in any other state, the elements of which are substantially similar to the elements of maltreatment under section 626.557 or chapter 260E for which: (i) there is a preponderance of evidence that the maltreatment occurred, and (ii) the subject was responsible for the maltreatment.
(c) An individual is disqualified under section 245C.14 if less than seven years has passed since the individual's aiding and abetting, attempt, or conspiracy to commit any of the offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota Statutes.
(d) An individual is disqualified under section 245C.14 if less than seven years has passed since the discharge of the sentence imposed for an offense in any other state or country, the elements of which are substantially similar to the elements of any of the offenses listed in paragraphs (a) and (b).
(e) When a disqualification is based on a judicial determination other than a conviction, the disqualification period begins from the date of the court order. When a disqualification is based on an admission, the disqualification period begins from the date of an admission in court. When a disqualification is based on an Alford Plea, the disqualification period begins from the date the Alford Plea is entered in court. When a disqualification is based on a preponderance of evidence of a disqualifying act, the disqualification date begins from the date of the dismissal, the date of discharge of the sentence imposed for a conviction for a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.
(f) An individual is disqualified under section 245C.14 if less than seven years has passed since the individual was disqualified under section 256.98, subdivision 8.
Subd. 4a. Licensed family foster setting disqualifications. (a) Notwithstanding subdivisions 1 to 4, 4b, and 4c, for a background study affiliated with a licensed family foster setting, regardless of how much time has passed, an individual is disqualified under section 245C.14 if the individual committed an act that resulted in a felony-level conviction for sections: 609.185 (murder in the first degree); 609.19 (murder in the second degree); 609.195 (murder in the third degree); 609.20 (manslaughter in the first degree); 609.205 (manslaughter in the second degree); 609.2112 (criminal vehicular homicide); 609.221 (assault in the first degree); 609.223, subdivision 2 (assault in the third degree, past pattern of child abuse); 609.223, subdivision 3 (assault in the third degree, victim under four); a felony offense under sections 609.2242 and 609.2243 (domestic assault, spousal abuse, child abuse or neglect, or a crime against children); 609.2247 (domestic assault by strangulation); 609.2325 (criminal abuse of a vulnerable adult resulting in the death of a vulnerable adult); 609.245 (aggravated robbery); 609.247, subdivision 2 or 3 (carjacking in the first or second degree); 609.25 (kidnapping); 609.255 (false imprisonment); 609.2661 (murder of an unborn child in the first degree); 609.2662 (murder of an unborn child in the second degree); 609.2663 (murder of an unborn child in the third degree); 609.2664 (manslaughter of an unborn child in the first degree); 609.2665 (manslaughter of an unborn child in the second degree); 609.267 (assault of an unborn child in the first degree); 609.2671 (assault of an unborn child in the second degree); 609.268 (injury or death of an unborn child in the commission of a crime); 609.322, subdivision 1 (solicitation, inducement, and promotion of prostitution; sex trafficking in the first degree); 609.324, subdivision 1 (other prohibited acts; engaging in, hiring, or agreeing to hire minor to engage in prostitution); 609.342 (criminal sexual conduct in the first degree); 609.343 (criminal sexual conduct in the second degree); 609.344 (criminal sexual conduct in the third degree); 609.345 (criminal sexual conduct in the fourth degree); 609.3451 (criminal sexual conduct in the fifth degree); 609.3453 (criminal sexual predatory conduct); 609.3458 (sexual extortion); 609.352 (solicitation of children to engage in sexual conduct); 609.377 (malicious punishment of a child); 609.3775 (child torture); 609.378 (neglect or endangerment of a child); 609.561 (arson in the first degree); 609.582, subdivision 1 (burglary in the first degree); 609.746 (interference with privacy); 617.23 (indecent exposure); 617.246 (use of minors in sexual performance prohibited); or 617.247 (possession of child sexual abuse material).
(b) Notwithstanding subdivisions 1 to 4, 4b, and 4c, for the purposes of a background study affiliated with a licensed family foster setting, an individual is disqualified under section 245C.14, regardless of how much time has passed, if the individual:
(1) committed an action under paragraph (e) that resulted in death or involved sexual abuse, as defined in section 260E.03, subdivision 20;
(2) committed an act that resulted in a gross misdemeanor-level conviction for section 609.3451 (criminal sexual conduct in the fifth degree);
(3) committed an act against or involving a minor that resulted in a felony-level conviction for: section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the third degree); 609.2231 (assault in the fourth degree); or 609.224 (assault in the fifth degree); or
(4) committed an act that resulted in a misdemeanor or gross misdemeanor-level conviction for section 617.293 (dissemination and display of harmful materials to minors).
(c) Notwithstanding subdivisions 1 to 4, 4b, and 4c, for a background study affiliated with a licensed family foster setting, an individual is disqualified under section 245C.14 if fewer than 20 years have passed since the termination of the individual's parental rights under section 260C.301, subdivision 1, paragraph (b), or if the individual consented to a termination of parental rights under section 260C.301, subdivision 1, paragraph (a), to settle a petition to involuntarily terminate parental rights. An individual is disqualified under section 245C.14 if fewer than 20 years have passed since the termination of the individual's parental rights in any other state or country, where the conditions for the individual's termination of parental rights are substantially similar to the conditions in section 260C.301, subdivision 1, paragraph (b).
(e) Notwithstanding subdivisions 1 to 4, 4b, and 4c, except as provided in paragraph (a), for a background study affiliated with a licensed family child foster care license, an individual is disqualified under section 245C.14 if fewer than five years have passed since:
(1) a felony-level violation for an act not against or involving a minor that constitutes: section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the third degree); 609.2231 (assault in the fourth degree); or 609.224, subdivision 4 (assault in the fifth degree);
(2) a violation of an order for protection under section 518B.01, subdivision 14;
(3) a determination or disposition of the individual's failure to make required reports under section 260E.06 or 626.557, subdivision 3, for incidents in which the final disposition under chapter 260E or section 626.557 was substantiated maltreatment and the maltreatment was recurring or serious;
(4) a determination or disposition of the individual's substantiated serious or recurring maltreatment of a minor under chapter 260E, a vulnerable adult under section 626.557, or serious or recurring maltreatment in any other state, the elements of which are substantially similar to the elements of maltreatment under chapter 260E or section 626.557 and meet the definition of serious maltreatment or recurring maltreatment;
(5) a gross misdemeanor-level violation for sections: 609.224, subdivision 2 (assault in the fifth degree); 609.2242 and 609.2243 (domestic assault); 609.233 (criminal neglect); 609.377 (malicious punishment of a child); 609.378 (neglect or endangerment of a child); 609.746 (interference with privacy); 609.749 (stalking); or 617.23 (indecent exposure); or
(6) committing an act against or involving a minor that resulted in a misdemeanor-level violation of section 609.224, subdivision 1 (assault in the fifth degree).
(1) the date of the alleged violation, if the individual was not convicted;
(2) the date of conviction, if the individual was convicted of the violation but not committed to the custody of the commissioner of corrections; or
(3) the date of release from prison, if the individual was convicted of the violation and committed to the custody of the commissioner of corrections.
Notwithstanding clause (3), if the individual is subsequently reincarcerated for a violation of the individual's supervised release, the disqualification begins from the date of release from the subsequent incarceration.
(g) An individual's aiding and abetting, attempt, or conspiracy to commit any of the offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota Statutes, permanently disqualifies the individual under section 245C.14. An individual is disqualified under section 245C.14 if fewer than five years have passed since the individual's aiding and abetting, attempt, or conspiracy to commit any of the offenses listed in paragraphs (d) and (e).
(h) An individual's offense in any other state or country, where the elements of the offense are substantially similar to any of the offenses listed in paragraphs (a) and (b), permanently disqualifies the individual under section 245C.14. An individual is disqualified under section 245C.14 if fewer than five years have passed since an offense in any other state or country, the elements of which are substantially similar to the elements of any offense listed in paragraphs (d) and (e).
Sec. 18. Minnesota Statutes 2025 Supplement, section 245C.22, subdivision 5, is amended to read:
Subd. 5. Scope
of set-aside. (a) If the
commissioner sets aside a disqualification under this section, the disqualified
individual remains disqualified, but may hold a license and have direct contact
with or access to persons receiving services.
Except as provided in paragraph (b), the commissioner's set-aside of a
disqualification is limited solely to the licensed program, applicant, or
agency specified in the set aside notice under section 245C.23. For personal care provider organizations,
financial management services organizations, community first services and
supports organizations, unlicensed home and community-based organizations, and
consumer-directed community supports organizations, the commissioner's
set-aside may further be limited to a specific individual who is receiving
services. For new background studies
required under section 245C.04, subdivision 1, paragraph (h) (g),
if an individual's disqualification was previously set aside for the license
holder's program and the new background study results in no new information
that indicates the individual may pose a risk of harm to persons receiving
services from the license holder, the previous set-aside shall remain in
effect.
(b) If the commissioner has previously set aside an individual's disqualification for one or more programs or agencies, and the individual is the subject of a subsequent background study for a different program or agency, the commissioner shall determine whether the disqualification is set aside for the program or agency that initiated the subsequent background study. A notice of a set-aside under paragraph (c) shall be issued within 15 working days if all of the following criteria are met:
(1) the subsequent background study was initiated in connection with a program licensed or regulated under the same provisions of law and rule for at least one program for which the individual's disqualification was previously set aside by the commissioner;
(2) the individual is not disqualified for an offense specified in section 245C.15, subdivision 1 or 2;
(3) the commissioner has received no new information to indicate that the individual may pose a risk of harm to any person served by the program; and
(c) Notwithstanding paragraph (b), clause (2), for an individual who is employed in the substance use disorder field, if the commissioner has previously set aside an individual's disqualification for one or more programs or agencies in the substance use disorder treatment field, and the individual is the subject of a subsequent background study for a different program or agency in the substance use disorder treatment field, the commissioner shall set aside the disqualification for the program or agency in the substance use disorder treatment field that initiated the subsequent background study when the criteria under paragraph (b), clauses (1), (3), and (4), are met and the individual is not disqualified for an offense specified in section 245C.15, subdivision 1. A notice of a set-aside under paragraph (d) shall be issued within 15 working days.
(d) When a disqualification is set aside under paragraph (b), the notice of background study results issued under section 245C.17, in addition to the requirements under section 245C.17, shall state that the disqualification is set aside for the program or agency that initiated the subsequent background study. The notice must inform the individual that the individual may request reconsideration of the disqualification under section 245C.21 on the basis that the information used to disqualify the individual is incorrect.
Sec. 19. Minnesota Statutes 2024, section 245C.24, subdivision 2, is amended to read:
Subd. 2. Permanent
bar to set aside a disqualification. (a)
Except as provided in paragraphs (b) to (g) (f), the commissioner
may not set aside the disqualification of any individual disqualified pursuant
to this chapter, regardless of how much time has passed, if the individual was
disqualified for a crime or conduct listed in section 245C.15, subdivision 1.
(b) For an individual in the substance use disorder or corrections field who was disqualified for a crime or conduct listed under section 245C.15, subdivision 1, and whose disqualification was set aside prior to July 1, 2005, the commissioner must consider granting a variance pursuant to section 245C.30 for the license holder for a program dealing primarily with adults. A request for reconsideration evaluated under this paragraph must include a letter of recommendation from the license holder that was subject to the prior set-aside decision addressing the individual's quality of care to children or vulnerable adults and the circumstances of the individual's departure from that service.
(c) If an individual who requires a background study for nonemergency medical transportation services under section 245C.03, subdivision 12, was disqualified for a crime or conduct listed under section 245C.15, subdivision 1, and if more than 40 years have passed since the discharge of the sentence imposed, the commissioner may consider granting a set-aside pursuant to section 245C.22. A request for reconsideration evaluated under this paragraph must include a letter of recommendation from the employer. This paragraph does not apply to a person disqualified based on a violation of sections 243.166; 609.185 to 609.205; 609.25; 609.342 to 609.3453; 609.352; 617.23, subdivision 2, clause (1), or 3, clause (1); 617.246; or 617.247.
(d) When a licensed foster care provider adopts an individual who had received foster care services from the provider for over six months, and the adopted individual is required to receive a background study under section 245C.03, subdivision 1, paragraph (a), clause (2) or (6), the commissioner may grant a variance to the license holder under section 245C.30 to permit the adopted individual with a permanent disqualification to remain affiliated with the license holder under the conditions of the variance when the variance is recommended by the county of responsibility for each of the remaining individuals in placement in the home and the licensing agency for the home.
(e) For an individual 18 years of age or older affiliated with a licensed family foster setting, the commissioner must not set aside or grant a variance for the disqualification of any individual disqualified pursuant to this chapter, regardless of how much time has passed, if the individual was disqualified for a crime or conduct listed in section 245C.15, subdivision 4a, paragraphs (a) and (b).
(g) In connection with
foster residence settings and children's residential facilities, the
commissioner must not set aside or grant a variance for the disqualification of
any individual disqualified pursuant to this chapter, regardless of how much
time has passed, if the individual was disqualified for a crime or conduct
listed in section 245C.15, subdivision 4a, paragraph (a) or (b).
Sec. 20. Minnesota Statutes 2024, section 245D.04, subdivision 3, is amended to read:
Subd. 3. Protection-related rights. (a) A person's protection-related rights include the right to:
(1) have personal, financial, service, health, and medical information kept private, and be advised of disclosure of this information by the license holder;
(2) access records and recorded information about the person in accordance with applicable state and federal law, regulation, or rule;
(3) be free from maltreatment;
(4) be free from restraint, time out, seclusion, restrictive intervention, or other prohibited procedure identified in section 245D.06, subdivision 5, or successor provisions, except for: (i) emergency use of manual restraint to protect the person from imminent danger to self or others according to the requirements in section 245D.061 or successor provisions; or (ii) the use of safety interventions as part of a positive support transition plan under section 245D.06, subdivision 8, or successor provisions;
(5) receive services in a clean and safe environment when the license holder is the owner, lessor, or tenant of the service site;
(6) be treated with courtesy and respect and receive respectful treatment of the person's property;
(7) reasonable observance of cultural and ethnic practice and religion;
(8) be free from bias and harassment regarding race, gender, age, disability, spirituality, and sexual orientation;
(9) be informed of and use the license holder's grievance policy and procedures, including knowing how to contact persons responsible for addressing problems and to appeal under section 256.045;
(10) know the name, telephone number, and the website, email, and street addresses of protection and advocacy services, including the appropriate state-appointed ombudsman, and a brief description of how to file a complaint with these offices;
(11) assert these rights personally, or have them asserted by the person's family, authorized representative, or legal representative, without retaliation;
(12) give or withhold written informed consent to participate in any research or experimental treatment;
(13) associate with other persons of the person's choice in the community;
(14) personal privacy, including the right to use the lock on the person's bedroom or unit door;
(16) access to the person's personal possessions at any time, including financial resources.
(b) For a person residing in a residential site licensed according to chapter 245A, or where the license holder is the owner, lessor, or tenant of the residential service site, protection-related rights also include the right to:
(1) have daily, private access to and use of a non-coin-operated telephone for local calls and long-distance calls made collect or paid for by the person;
(2) receive and send, without interference, uncensored, unopened mail or electronic correspondence or communication;
(3) have use of and free access to common areas in the residence and the freedom to come and go from the residence at will;
(4) choose the person's visitors and time of visits and have privacy for visits with the person's spouse, next of kin, legal counsel, religious adviser, or others, in accordance with section 363A.09 of the Human Rights Act, including privacy in the person's bedroom;
(5) have access to three nutritionally balanced meals and nutritious snacks between meals each day;
(6) have freedom and support to access food and potable water at any time;
(7) have the freedom to furnish and decorate the person's bedroom or living unit;
(8) a setting that is clean and free from accumulation of dirt, grease, garbage, peeling paint, mold, vermin, and insects;
(9) a setting that is free from hazards that threaten the person's health or safety; and
(10) a setting that meets the definition of a dwelling unit within a residential occupancy as defined in the State Fire Code.
(c) Restriction of a person's rights under paragraph (a), clauses (13) to (16), or paragraph (b), clauses (1) to (7), is allowed only if determined necessary to ensure the health, safety, and well-being of the person. Any restriction of those rights must be documented in the person's support plan or support plan addendum. The restriction must be implemented in the least restrictive alternative manner necessary to protect the person and provide support to reduce or eliminate the need for the restriction in the most integrated setting and inclusive manner. The documentation must include the following information:
(1) the justification for the restriction based on an assessment of the person's vulnerability related to exercising the right without restriction;
(2) the objective measures set as conditions for ending the restriction;
(3) a schedule for reviewing the need for the restriction based on the conditions for ending the restriction to occur semiannually from the date of initial approval, at a minimum, or more frequently if requested by the person, the person's legal representative, if any, and case manager; and
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 21. Minnesota Statutes 2024, section 245D.10, subdivision 4, is amended to read:
Subd. 4. Availability of current written policies and procedures. (a) The license holder must review and update, as needed, the written policies and procedures required under this chapter.
(b)(1) The license holder must inform the person or the person's legal representative and case manager of the policies and procedures affecting a person's rights under section 245D.04, and provide copies of those policies and procedures, within five working days of service initiation.
(2) If a license holder only provides basic services and supports, this includes the:
(i) grievance policy and
procedure required under subdivision 2; and
(ii) service suspension and
termination policy and procedure required under subdivision 3.; and
(iii) emergency use of
manual restraints policy and procedure required under section 245D.061,
subdivision 9, or successor provisions.
(3) For all other license holders this includes the:
(i) policies and procedures
in clause (2); and
(ii) emergency use of
manual restraints policy and procedure required under section 245D.061,
subdivision 9, or successor provisions; and
(iii) (ii) data
privacy requirements under section 245D.11, subdivision 3.
(c) The license holder must provide a written notice to all persons or their legal representatives and case managers at least 30 days before implementing any procedural revisions to policies affecting a person's service-related or protection-related rights under section 245D.04 and maltreatment reporting policies and procedures. The notice must explain the revision that was made and include a copy of the revised policy and procedure. The license holder must document the reasonable cause for not providing the notice at least 30 days before implementing the revisions.
(d) Before implementing revisions to required policies and procedures, the license holder must inform all employees of the revisions and provide training on implementation of the revised policies and procedures.
(e) The license holder must annually notify all persons, or their legal representatives, and case managers of any procedural revisions to policies required under this chapter, other than those in paragraph (c). Upon request, the license holder must provide the person, or the person's legal representative, and case manager with copies of the revised policies and procedures.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Subd. 20. Fraud. "Fraud" means an intentional
deception or misrepresentation made by a person with the knowledge that the
deception could result in an unauthorized benefit to the person or another
person or an act, promise to act, or omission made with the intent to obtain a
benefit in a manner that is prohibited. Fraud
includes:
(1) submitting an
application for provider status knowing that the application misrepresents,
conceals, or fails to disclose any material information;
(2) intentionally
submitting a claim for reimbursement under this chapter, knowing or having
reason to know the claim is ineligible for reimbursement in whole or in part;
(3) providing
documentation or other information requested by the commissioner having
knowledge that it is false in any material respect; and
(4) any act that
constitutes the commission, or attempt or conspiracy to commit, a violation of
any of the following:
(i) section 256.98
(wrongfully obtaining assistance);
(ii) section 609.466
(medical assistance fraud);
(iii) section 609.48
(perjury), involving making a false statement related to medical assistance or
the receipt of public money;
(iv) section 609.496
(concealing criminal proceeds) or 609.497 (engaging in business of concealing
criminal proceeds), involving proceeds consisting of public money;
(v) section 609.52
(theft), involving theft of property consisting of public money;
(vi) section 609.542
(illegal remuneration);
(vii) section 609.625
(aggravated forgery) or 609.63 (forgery), involving falsely filing any record,
account, or other document with any state agency or department or falsely
making or altering any record, account, or other document filed with any state agency
or department;
(viii) section 609.821
(financial transaction card fraud), involving a public assistance benefit;
(ix) a felony listed in
United States Code, title 42, section 1320a-7b(b)(1) or (2), subject to any
safe harbors established in Code of Federal Regulations, title 42, section
1001.952; and
(x) any other act that
constitutes fraud under applicable federal law.
Sec. 23. Minnesota Statutes 2024, section 256B.04, subdivision 10, is amended to read:
Subd. 10. Investigation
of certain claims. The
commissioner must establish by rule general criteria and procedures for the
identification and prompt investigation of suspected medical assistance fraud,
theft, abuse, presentment of false or duplicate claims, presentment of claims
for services not reasonable or medically necessary, or false statement
or representation of material facts by a vendor of medical care, and for the
imposition of sanctions against a vendor of medical care. The commissioner may use both prepayment
and postpayment review systems to review claims submitted by vendors. Payment of claims, including payments made
after a prepayment review, does not prohibit the commissioner from completing a
postpayment claims review and taking additional administrative actions or
monetary recovery against a vendor.
If it appears to the state agency that a vendor of medical care may have
acted in a manner warranting civil or criminal proceedings, it shall so inform
the attorney general in writing.
Subd. 6. Agency qualifications and duties. An agency is eligible for reimbursement under this section only if the agency:
(1) is confirmed by the commissioner as an eligible provider after a pre-enrollment risk assessment under subdivision 6a;
(2) is enrolled as a medical assistance Minnesota health care program provider and meets all applicable provider standards and requirements;
(3) demonstrates compliance with federal and state laws and policies for housing stabilization services as determined by the commissioner;
(4) complies with background study requirements under chapter 245C and maintains documentation of background study requests and results;
(5) provides at the time of
enrollment, reenrollment, and revalidation in a format determined by the
commissioner, proof of surety bond coverage for each business location
providing services. Upon new enrollment,
or if the provider's medical assistance revenue in the previous calendar year
is $300,000 or less, the provider agency must purchase a surety bond of $50,000. If the provider's medical assistance revenue
in the previous year is over $300,000, the provider agency must purchase a
surety bond of $100,000. The surety bond
must be in a form approved by the commissioner, must be renewed purchased
new annually, and must allow for recovery of costs and fees in pursuing a
claim on the bond. Any action to obtain
monetary recovery or sanctions from a surety bond must occur within six years
from the date the debt is affirmed by a final agency decision. An agency decision is final when the right to
appeal the debt has been exhausted or the time to appeal has expired under
section 256B.064;
(6) directly provides housing stabilization services using employees of the agency and not by using a subcontractor or reporting agent;
(7) ensures all controlling individuals and employees of the agency
complete annual vulnerable adult training; and
(8) completes compliance training as required under subdivision 6b.
Sec. 25. Minnesota Statutes 2025 Supplement, section 256B.0659, subdivision 21, is amended to read:
Subd. 21. Requirements for provider enrollment of personal care assistance provider agencies. (a) All personal care assistance provider agencies must provide, at the time of enrollment, reenrollment, and revalidation as a personal care assistance provider agency in a format determined by the commissioner, information and documentation that includes, but is not limited to, the following:
(1) the personal care assistance provider agency's current contact information including address, telephone number, and email address;
(2) proof of surety bond
coverage for each business location providing services. Upon new enrollment, or if the provider's
Medicaid revenue in the previous calendar year is up to and including $300,000,
the provider agency must purchase a surety bond of $50,000. If the Medicaid revenue in the previous year
is over $300,000, the provider agency must purchase a surety bond of $100,000. The surety bond must be in a form approved by
the commissioner, must be renewed purchased new annually, and
must allow for recovery of costs and fees in pursuing a claim on the bond. Any action to obtain monetary recovery or
sanctions from a surety bond must occur within six years from the date the debt
is affirmed by a final agency decision. An
agency decision is final when the right to appeal the debt has been exhausted
or the time to appeal has expired under section 256B.064;
(4) proof of workers' compensation insurance coverage identifying the business location where personal care assistance services are provided;
(5) proof of liability insurance coverage identifying the business location where personal care assistance services are provided and naming the department as a certificate holder;
(6) a copy of the personal care assistance provider agency's written policies and procedures including: hiring of employees; training requirements; service delivery; and employee and consumer safety including process for notification and resolution of consumer grievances, identification and prevention of communicable diseases, and employee misconduct;
(7) copies of all other forms the personal care assistance provider agency uses in the course of daily business including, but not limited to:
(i) a copy of the personal care assistance provider agency's time sheet if the time sheet varies from the standard time sheet for personal care assistance services approved by the commissioner, and a letter requesting approval of the personal care assistance provider agency's nonstandard time sheet;
(ii) the personal care assistance provider agency's template for the personal care assistance care plan; and
(iii) the personal care assistance provider agency's template for the written agreement in subdivision 20 for recipients using the personal care assistance choice option, if applicable;
(8) a list of all training and classes that the personal care assistance provider agency requires of its staff providing personal care assistance services;
(9) documentation that the personal care assistance provider agency and staff have successfully completed all the training required by this section, including the requirements under subdivision 11, paragraph (d), if enhanced personal care assistance services are provided and submitted for an enhanced rate under subdivision 17a;
(10) documentation of the agency's marketing practices;
(11) disclosure of ownership, leasing, or management of all residential properties that is used or could be used for providing home care services;
(12) documentation that the agency will use the following percentages of revenue generated from the medical assistance rate paid for personal care assistance services for employee personal care assistant wages and benefits: 72.5 percent of revenue in the personal care assistance choice option and 72.5 percent of revenue from other personal care assistance providers. The revenue generated by the qualified professional and the reasonable costs associated with the qualified professional shall not be used in making this calculation; and
(13) effective May 15, 2010, documentation that the agency does not burden recipients' free exercise of their right to choose service providers by requiring personal care assistants to sign an agreement not to work with any particular personal care assistance recipient or for another personal care assistance provider agency after leaving the agency and that the agency is not taking action on any such agreements or requirements regardless of the date signed.
(b) Personal care assistance provider agencies shall provide the information specified in paragraph (a) to the commissioner at the time the personal care assistance provider agency enrolls as a vendor or upon request from the commissioner. The commissioner shall collect the information specified in paragraph (a) from all personal care assistance providers beginning July 1, 2009.
(d) All surety bonds, fidelity bonds, workers' compensation insurance, and liability insurance required by this subdivision must be maintained continuously and purchased new annually. After initial enrollment, a provider must submit proof of bonds and required coverages at any time at the request of the commissioner. Services provided while there are lapses in coverage are not eligible for payment. Lapses in coverage may result in sanctions, including termination. The commissioner shall send instructions and a due date to submit the requested information to the personal care assistance provider agency.
Sec. 26. Minnesota Statutes 2025 Supplement, section 256B.0701, subdivision 9, is amended to read:
Subd. 9. Provider qualifications and duties. A provider is eligible for reimbursement under this section only if the provider:
(1) is confirmed by the commissioner as an eligible provider after a pre-enrollment risk assessment under subdivision 10;
(2) is enrolled as a medical assistance Minnesota health care program provider and meets all applicable provider standards and requirements;
(3) demonstrates compliance with federal and state laws and policies for housing stabilization services as determined by the commissioner;
(4) complies with background study requirements under chapter 245C and maintains documentation of background study requests and results;
(5) provides at the time of
enrollment, reenrollment, and revalidation in a format determined by the
commissioner, proof of surety bond coverage for each business location
providing services. Upon new enrollment,
or if the provider's medical assistance revenue in the previous calendar year
is $300,000 or less, the provider agency must purchase a surety bond of $50,000. If the provider's medical assistance revenue
in the previous year is over $300,000, the provider agency must purchase a
surety bond of $100,000. The surety bond
must be in a form approved by the commissioner, must be renewed purchased
new annually, and must allow for recovery of costs and
(6) ensures all controlling individuals and employees of the agency complete annual vulnerable adult training;
(7) completes compliance training as required under subdivision 11; and
(8) complies with the habitability inspection requirements in subdivision 13.
Sec. 27. Minnesota Statutes 2024, section 256B.27, subdivision 3, is amended to read:
Subd. 3. Access
to medical records. The commissioner
of human services, with the written consent of the recipient, on file with the
local welfare agency, shall be allowed access in the manner and within the time
prescribed by the commissioner to all personal medical records of medical assistance
recipients solely for the purposes of investigating whether or not: (a) a vendor of medical care has submitted a
claim for reimbursement, a cost report or a rate application which is
duplicative, erroneous, or false in whole or in part, or which results in the
vendor obtaining greater compensation than the vendor is legally entitled to;
or (b) the medical care was medically necessary. When the commissioner is investigating a
possible overpayment of Medicaid funds, The commissioner may conduct
on-site inspections of any and all vendors and service locations or may request
records from a vendor to verify that information submitted to the commissioner
is accurate, determine compliance with service delivery and billing
requirements, and determine compliance with any other applicable laws or rules. The commissioner must be given immediate
access without prior notice to the vendor's office during regular business
hours and to documentation and records related to services provided and
submission of claims for services provided.
The department shall document in writing the need for immediate access
to records related to a specific investigation.
Denying the commissioner access to records is cause for the vendor's
immediate suspension of payment or termination according to section 256B.064. The determination of provision of services
not medically necessary shall be made by the commissioner. Notwithstanding any other law to the
contrary, a vendor of medical care shall not be subject to any civil or
criminal liability for providing access to medical records to the commissioner
of human services pursuant to this section.
Sec. 28. Minnesota Statutes 2025 Supplement, section 256B.85, subdivision 12, is amended to read:
Subd. 12. Requirements for enrollment of CFSS agency-providers. (a) All CFSS agency-providers must provide, at the time of enrollment, reenrollment, and revalidation as a CFSS agency-provider in a format determined by the commissioner, information and documentation that includes but is not limited to the following:
(1) the CFSS agency-provider's current contact information including address, telephone number, and email address;
(2) proof of surety bond
coverage. Upon new enrollment, or if the
agency-provider's Medicaid revenue in the previous calendar year is less than
or equal to $300,000, the agency-provider must purchase a surety bond of
$50,000. If the agency-provider's
Medicaid revenue in the previous calendar year is greater than $300,000, the
agency-provider must purchase a surety bond of $100,000. The surety bond must be in a form approved by
the commissioner, must be renewed purchased new annually, and
must allow for recovery of costs and fees in pursuing a claim on the bond. Any action to obtain monetary recovery or
sanctions from a surety bond must occur within six years from the date the debt
is affirmed by a final agency decision. An
agency decision is final when the right to appeal the debt has been exhausted
or the time to appeal has expired under section 256B.064;
(3) proof of fidelity bond coverage in the amount of $20,000 per provider location;
(5) proof of liability insurance;
(6) a copy of the CFSS agency-provider's organizational chart identifying the names and roles of all owners, managing employees, staff, board of directors, and additional documentation reporting any affiliations of the directors and owners to other service providers;
(7) proof that the CFSS agency-provider has written policies and procedures including: hiring of employees; training requirements; service delivery; and employee and consumer safety, including the process for notification and resolution of participant grievances, incident response, identification and prevention of communicable diseases, and employee misconduct;
(8) proof that the CFSS agency-provider has all of the following forms and documents:
(i) a copy of the CFSS agency-provider's time sheet; and
(ii) a copy of the participant's individual CFSS service delivery plan;
(9) a list of all training and classes that the CFSS agency-provider requires of its staff providing CFSS services;
(10) documentation that the CFSS agency-provider and staff have successfully completed all the training required by this section;
(11) documentation of the agency-provider's marketing practices;
(12) disclosure of ownership, leasing, or management of all residential properties that are used or could be used for providing home care services;
(13) documentation that the agency-provider will use at least the following percentages of revenue generated from the medical assistance rate paid for CFSS services for CFSS support worker wages and benefits: 72.5 percent of revenue from CFSS providers, except 100 percent of the revenue generated by a medical assistance rate increase due to a collective bargaining agreement under section 179A.54 must be used for support worker wages and benefits. The revenue generated by the worker training and development services and the reasonable costs associated with the worker training and development services shall not be used in making this calculation; and
(14) documentation that the agency-provider does not burden participants' free exercise of their right to choose service providers by requiring CFSS support workers to sign an agreement not to work with any particular CFSS participant or for another CFSS agency-provider after leaving the agency and that the agency is not taking action on any such agreements or requirements regardless of the date signed.
(b) CFSS agency-providers shall provide to the commissioner the information specified in paragraph (a).
(c) All CFSS agency-providers shall require all employees in management and supervisory positions and owners of the agency who are active in the day-to-day management and operations of the agency to complete mandatory training as determined by the commissioner. Employees in management and supervisory positions and owners who are active in the day-to-day operations of an agency who have completed the required training as an employee with a CFSS agency-provider do not need to repeat the required training if they are hired by another agency and they have completed the training within the past three years. CFSS agency-provider billing staff shall complete training about CFSS program financial management. Any new owners or employees in management and supervisory positions involved in the day-to-day operations are required to complete mandatory training as a requisite of working for the agency.
Sec. 29. Minnesota Statutes 2025 Supplement, section 256B.85, subdivision 17a, is amended to read:
Subd. 17a. Consultation services provider qualifications and requirements. Consultation services providers must meet the following qualifications and requirements:
(1) meet the requirements under subdivision 10, paragraph (a), excluding clauses (4) and (5);
(2) be under contract with the department and enrolled as a Minnesota health care program provider;
(3) not be the FMS provider, the lead agency, or the CFSS or home and community-based services waiver vendor or agency-provider to the participant;
(4) meet the service standards as established by the commissioner;
(5) have proof of surety
bond coverage. Upon new enrollment, or
if the consultation service provider's Medicaid revenue in the previous
calendar year is less than or equal to $300,000, the consultation service
provider must purchase a surety bond of $50,000. If the agency-provider's Medicaid revenue in
the previous calendar year is greater than $300,000, the consultation service
provider must purchase a surety bond of $100,000. The surety bond must be in a form approved by
the commissioner, must be renewed purchased new annually, and
must allow for recovery of costs and fees in pursuing a claim on the bond. Any action to obtain monetary recovery or
sanctions from a surety bond must occur within six years from the date the debt
is affirmed by a final agency decision. An
agency decision is final when the right to appeal the debt has been exhausted
or the time to appeal has expired under section 256B.064;
(6) employ lead professional staff with a minimum of two years of experience in providing services such as support planning, support broker, case management or care coordination, or consultation services and consumer education to participants using a self-directed program using FMS under medical assistance;
(7) report maltreatment as required under chapter 260E and section 626.557;
(8) comply with medical assistance provider requirements;
(9) understand the CFSS program and its policies;
(10) be knowledgeable about self-directed principles and the application of the person-centered planning process;
(11) have general knowledge of the FMS provider duties and the vendor fiscal/employer agent model, including all applicable federal, state, and local laws and regulations regarding tax, labor, employment, and liability and workers' compensation coverage for household workers; and
(12) have all employees, including lead professional staff, staff in management and supervisory positions, and owners of the agency who are active in the day-to-day management and operations of the agency, complete training as specified in the contract with the department.
Subd. 6. Facility. "Facility" means:
(1) a licensed or unlicensed day care facility, certified license-exempt child care center, residential facility, agency, psychiatric residential treatment facility, hospital, sanitarium, or other facility or institution required to be licensed under sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or chapter 142B, 142C, 144H, or 245D;
(2) a school as defined in section 120A.05, subdivisions 9, 11, and 13; and chapter 124E; or
(3) a nonlicensed personal care provider organization as defined in section 256B.0625, subdivision 19a.
Sec. 31. Minnesota Statutes 2025 Supplement, section 260E.11, subdivision 1, is amended to read:
Subdivision 1. Reports
of maltreatment in facility. A
person mandated to report child maltreatment occurring within a licensed
facility shall report the information to the agency responsible for licensing
or certifying the facility under sections 144.50 to 144.58, 241.021, and
245A.01 to 245A.16 or chapter 142B, 142C, 144H, or 245D or to a nonlicensed
personal care provider organization as defined in section 256B.0625,
subdivision 19a. A person mandated to
report child maltreatment occurring within a federally certified psychiatric
residential treatment facility must report the information to the Department of
Health.
Sec. 32. Minnesota Statutes 2025 Supplement, section 260E.14, subdivision 1, is amended to read:
Subdivision 1. Facilities and schools. (a) The local welfare agency is the agency responsible for investigating allegations of maltreatment in child foster care, family child care, legally nonlicensed child care, and reports involving children served by an unlicensed personal care provider organization under section 256B.0659. Copies of findings related to personal care provider organizations under section 256B.0659 must be forwarded to the Department of Human Services provider enrollment.
(b) The Department of Human Services is the agency responsible for screening and investigating allegations of maltreatment in juvenile correctional facilities listed under section 241.021 located in the local welfare agency's county and in facilities licensed or certified under chapters 245A and 245D, except federally certified psychiatric residential treatment facilities.
(c) The Department of Health
is the agency responsible for screening and investigating allegations of
maltreatment in facilities licensed under sections 144.50 to 144.58 and 144A.43
to 144A.482 or, chapter 144H, or federally certified as a
psychiatric residential treatment facility.
(d) The Department of Education is the agency responsible for screening and investigating allegations of maltreatment in a school as defined in section 120A.05, subdivisions 9, 11, and 13, and chapter 124E. The Department of Education's responsibility to screen and investigate includes allegations of maltreatment involving students 18 through 21 years of age, including students receiving special education services, up to and including graduation and the issuance of a secondary or high school diploma.
(e) The Department of Human Services is the agency responsible for screening and investigating allegations of maltreatment of minors in an EIDBI agency operating under sections 245A.142 and 256B.0949.
(f) A health or corrections agency receiving a report may request the local welfare agency to provide assistance pursuant to this section and sections 260E.20 and 260E.22.
(g) The Department of Children, Youth, and Families is the agency responsible for screening and investigating allegations of maltreatment in facilities or programs not listed in paragraph (a) that are licensed or certified under chapters 142B and 142C.
Subd. 13. Lead investigative agency. "Lead investigative agency" is the primary administrative agency responsible for investigating reports made under section 626.557.
(a) The Department of Health is the lead investigative agency for facilities or services licensed or required to be licensed as hospitals, home care providers, nursing homes, boarding care homes, hospice providers, residential facilities that are also federally certified as intermediate care facilities that serve people with developmental disabilities, federally certified psychiatric residential treatment facilities, or any other facility or service not listed in this subdivision that is licensed or required to be licensed by the Department of Health for the care of vulnerable adults. "Home care provider" has the meaning provided in section 144A.43, subdivision 4, and applies when care or services are delivered in the vulnerable adult's home.
(b) The Department of Human Services is the lead investigative agency for facilities or services licensed or required to be licensed as adult day care, adult foster care, community residential settings, programs for people with disabilities, EIDBI agencies, family adult day services, mental health programs, mental health clinics, substance use disorder programs, the Minnesota Sex Offender Program, or any other facility or service not listed in this subdivision that is licensed or required to be licensed by the Department of Human Services, except federally certified psychiatric residential treatment facilities. The Department of Human Services is also the lead investigative agency for unlicensed EIDBI agencies under section 256B.0949.
(c) The county social service agency or its designee is the lead investigative agency for all other reports, including but not limited to reports involving vulnerable adults receiving services from a personal care provider organization under section 256B.0659.
Sec. 34. NEW
BACKGROUND STUDIES FOR INDIVIDUALS NOT IN NETSTUDY 2.0.
By March 1, 2027, the
commissioner of human services and counties must conduct new background studies
for all individuals specified under Minnesota Statutes, section 245C.03,
subdivision 1, paragraph (a), clauses (2) to (6), and affiliated with a child foster
family setting license holder, adult foster care or family adult day services
and with a family child care license holder, or a legal nonlicensed child care
provider authorized under Minnesota Statutes, chapter 142E. The commissioner and counties must follow the
requirements in Minnesota Statutes, section 245C.04, subdivision 1, paragraphs
(e) and (f), when conducting the background studies under this section. The new background studies must be submitted
through NETStudy 2.0.
EFFECTIVE DATE. This
section is effective September 1, 2026.
Sec. 35. REPEALER.
(a) Minnesota Statutes
2025 Supplement, section 245A.10, subdivision 3a, is repealed.
(b) Minnesota Rules,
part 9505.2165, subpart 4, is repealed.
EFFECTIVE DATE. Paragraph
(a) is effective October 1, 2026.
BACKGROUND STUDIES
Section 1. Minnesota Statutes 2025 Supplement, section 245C.02, subdivision 15a, is amended to read:
Subd. 15a. Reasonable cause to require a national criminal history record check. (a) "Reasonable cause to require a national criminal history record check" means information or circumstances exist that provide the commissioner with articulable suspicion that further pertinent information may exist concerning a background study subject that merits conducting a national criminal history record check on that subject. The commissioner has reasonable cause to require a national criminal history record check when:
(1) information from the Bureau of Criminal Apprehension indicates that the subject is a multistate offender;
(2) information from the Bureau of Criminal Apprehension indicates that multistate offender status is undetermined;
(3) the commissioner has received a report from the subject or a third party indicating that the subject has a criminal history in a jurisdiction other than Minnesota; or
(4) information from the Bureau of Criminal Apprehension for a state-based name and date of birth background study in which the subject is a minor that indicates that the subject has a criminal history.
(b) In addition to the circumstances described in paragraph (a), the commissioner has reasonable cause to require a national criminal history record check if the subject is not currently residing in Minnesota or resided in a jurisdiction other than Minnesota during the previous five years.
(c) Reasonable cause to
require a national criminal history check does not apply to family child foster
care or, adoption, family adult day services, or adult foster
care studies.
EFFECTIVE DATE. This
section is effective January 25, 2028.
Sec. 2. Minnesota Statutes 2024, section 245C.03, subdivision 3a, is amended to read:
Subd. 3a. Personal care assistance provider agency; background studies. Personal care assistance provider agencies enrolled to provide personal care assistance services under the medical assistance program must meet the following requirements:
(1) owners who have a five percent interest or more, board members, and all managing employees are subject to a background study as provided in this chapter. This requirement applies to currently enrolled personal care assistance provider agencies and agencies seeking enrollment as a personal care assistance provider agency. "Managing employee" has the same meaning as in Code of Federal Regulations, title 42, section 455.101. An organization is barred from enrollment if:
(i) the organization has not initiated background studies of owners and managing employees; or
(ii) the organization has initiated background studies of owners and managing employees and the commissioner has sent the organization a notice that an owner or managing employee of the organization has been disqualified under section 245C.14, and the owner or managing employee has not received a set aside of the disqualification under section 245C.22; and
(2) a background study must be initiated and completed for all employee and volunteer qualified professionals.
EFFECTIVE DATE. This
section is effective September 15, 2026.
Subd. 9. Community first services and supports and financial management services organizations. Individuals affiliated with Community First Services and Supports (CFSS) agency-providers and Financial Management Services (FMS) providers enrolled to provide CFSS services under the medical assistance program must meet the following requirements:
(1) owners who have a five percent interest or more, board members, and all managing employees are subject to a background study under this chapter. This requirement applies to currently enrolled providers and agencies seeking enrollment. "Managing employee" has the meaning given in Code of Federal Regulations, title 42, section 455.101. An organization is barred from enrollment if:
(i) the organization has not initiated background studies of owners and managing employees; or
(ii) the organization has initiated background studies of owners and managing employees and the commissioner has sent the organization a notice that an owner or managing employee of the organization has been disqualified under section 245C.14 and the owner or managing employee has not received a set aside of the disqualification under section 245C.22;
(2) a background study must
be initiated and completed for all staff employees or volunteers
who will have direct contact with the participant to provide worker training
and development; and
(3) a background study must be initiated and completed for all employee and volunteer support workers.
EFFECTIVE DATE. This
section is effective September 15, 2026.
Sec. 4. Minnesota Statutes 2024, section 245C.03, is amended by adding a subdivision to read:
Subd. 17. Providers
of adult rehabilitative mental health services. The commissioner shall conduct
background studies on any individual who is an owner with an ownership stake of
at least five percent in an adult rehabilitative mental health services
provider, an operator of an adult rehabilitative mental health services
provider, or an employee or volunteer who has direct contact with people
receiving adult rehabilitative mental health services under section 256B.0623. For the purposes of this subdivision,
"operator" includes board members or other individuals who oversee
the billing, management, or policies of the services provided.
EFFECTIVE DATE. This
section is effective upon implementation in NETStudy 2.0, but no sooner than
October 13, 2026.
Sec. 5. Minnesota Statutes 2024, section 245C.03, is amended by adding a subdivision to read:
Subd. 18. Providers
of peer recovery support services. The
commissioner shall conduct background studies on any individual who is an owner
with an ownership stake of at least five percent in a peer recovery support
services provider, an operator of a peer recovery support services provider, or
an employee or volunteer who has direct contact with people receiving peer
recovery support services under section 254B.052. For the purposes of this subdivision,
"operator" includes board members or other individuals who oversee
the billing, management, or policies of the services provided.
EFFECTIVE DATE. This
section is effective upon implementation in NETStudy 2.0, but no sooner than
December 15, 2026.
Subd. 19. Providers
of adult assertive community treatment services. The commissioner shall conduct
background studies on any individual who is an owner with an ownership stake of
at least five percent in an adult assertive community treatment services
provider, an operator of an adult assertive community treatment services
provider, or an employee or volunteer who has direct contact with people
receiving adult assertive community treatment services under section 256B.0622. For the purposes of this subdivision,
"operator" includes board members or other individuals who oversee
the billing, management, or policies of the services provided.
EFFECTIVE DATE. This
section is effective upon implementation in NETStudy 2.0, but no sooner than
February 16, 2027.
Sec. 7. Minnesota Statutes 2025 Supplement, section 245C.05, subdivision 5, is amended to read:
Subd. 5. Fingerprints and photograph. (a) Notwithstanding paragraph (c), for background studies conducted by the commissioner for current or prospective child foster or adoptive parents, and for any adult working in a children's residential facility, the subject of the background study shall provide the commissioner with a set of classifiable fingerprints obtained from an authorized agency for a national criminal history record check.
(b) Notwithstanding paragraph (c), for background studies conducted by the commissioner for Head Start programs, the subject of the background study shall provide the commissioner with a set of classifiable fingerprints obtained from an authorized agency for a national criminal history record check.
(c) For background studies initiated on or after the implementation of NETStudy 2.0, except as provided under subdivision 5a, every subject of a background study must provide the commissioner with a set of the background study subject's classifiable fingerprints and photograph. The photograph and fingerprints must be recorded at the same time by the authorized fingerprint collection vendor or vendors and sent to the commissioner through the commissioner's secure data system described in section 245C.32, subdivision 1a, paragraph (b).
(d) The fingerprints shall be submitted by the commissioner to the Bureau of Criminal Apprehension and, when specifically required by law, submitted to the Federal Bureau of Investigation for a national criminal history record check.
(e) The fingerprints must not be retained by the Department of Public Safety, Bureau of Criminal Apprehension, or the commissioner. The Federal Bureau of Investigation will not retain background study subjects' fingerprints.
(f) The authorized fingerprint collection vendor or vendors shall, for purposes of verifying the identity of the background study subject, be able to view the identifying information entered into NETStudy 2.0 by the entity that initiated the background study, but shall not retain the subject's fingerprints, photograph, or information from NETStudy 2.0. The authorized fingerprint collection vendor or vendors shall retain no more than the name and date and time the subject's fingerprints were recorded and sent, only as necessary for auditing and billing activities.
(g) For any background
study conducted under this chapter, except for family child foster care or,
adoption, family adult day services, or adult foster care studies, the
subject shall provide the commissioner with a set of classifiable fingerprints
when the commissioner has reasonable cause to require a national criminal
history record check as defined in section 245C.02, subdivision 15a.
EFFECTIVE DATE. This
section is effective January 25, 2028.
Subd. 2. Activities pending completion of background study. The subject of a background study may not perform any activity requiring a background study under paragraph (c) until the commissioner has issued one of the notices under paragraph (a).
(a) Notices from the commissioner required prior to activity under paragraph (c) include:
(1) a notice of the study results under section 245C.17 stating that:
(i) the individual is not disqualified; or
(ii) more time is needed to complete the study but the individual is not required to be removed from direct contact or access to people receiving services prior to completion of the study as provided under section 245C.17, subdivision 1, paragraph (b) or (c). The notice that more time is needed to complete the study must also indicate whether the individual is required to be under continuous direct supervision prior to completion of the background study. When more time is necessary to complete a background study of an individual affiliated with a Title IV-E eligible children's residential facility or foster residence setting, the individual may not work in the facility or setting regardless of whether or not the individual is supervised;
(2) a notice that a disqualification has been set aside under section 245C.23; or
(3) a notice that a variance has been granted related to the individual under section 245C.30.
(b) For a background study affiliated with a licensed child care center or certified license-exempt child care center, the notice sent under paragraph (a), clause (1), item (ii), must not be issued until the commissioner receives a qualifying result for the individual for the fingerprint-based national criminal history record check or the fingerprint‑based criminal history information from the Bureau of Criminal Apprehension. The notice must require the individual to be under continuous direct supervision prior to completion of the remainder of the background study except as permitted in subdivision 3.
(c) Activities prohibited prior to receipt of notice under paragraph (a) include:
(1) being issued a license;
(2) living in the household where the licensed program will be provided;
(3) providing direct contact services to persons served by a program unless the subject is under continuous direct supervision;
(4) having access to persons
receiving services if the background study was completed under section 144.057,
subdivision 1, or 245C.03, subdivision 1, paragraph (a), clause (2), (5), or
(6), unless the subject is under continuous direct supervision;
(5) for licensed child care centers and certified license-exempt child care centers, providing direct contact services to persons served by the program;
(6) for children's
residential facilities or foster residence settings, working in the facility or
setting; or
(7) for background studies
affiliated with a personal care provider organization, except as provided in
section 245C.03, subdivision 3b, early intensive developmental and
behavioral intervention provider, housing support or supplementary services
provider, special transportation services provider, or community first services
and supports
provider before a personal care assistant
an individual provides services, the personal care assistance
provider agency entity must initiate a background study of the personal
care assistant individual under this chapter and the personal
care assistance provider agency entity must have received a notice
from the commissioner that the personal care assistant individual
is:
(i) not disqualified under section 245C.14; or
(ii) disqualified, but the personal
care assistant individual has received a set aside of the
disqualification under section 245C.22; or.
(8) for background
studies affiliated with an early intensive developmental and behavioral
intervention provider, before an individual provides services, the early
intensive developmental and behavioral intervention provider must initiate a
background study for the individual under this chapter and the early intensive
developmental and behavioral intervention provider must have received a notice
from the commissioner that the individual is:
(i) not disqualified
under section 245C.14; or
(ii) disqualified, but
the individual has received a set-aside of the disqualification under section
245C.22.
EFFECTIVE DATE. This
section is effective September 15, 2026.
ARTICLE 4
BEHAVIORAL HEALTH
Section 1. Minnesota Statutes 2024, section 245.4661, is amended by adding a subdivision to read:
Subd. 1a. Direct
payment. For purposes of this
section, "direct payment" means a funding mechanism used by the
commissioner to distribute state appropriations to a county or Tribe for the
purpose of carrying out duties, services, or activities authorized under this
section. A direct payment is not a grant
under section 16B.97 and is not subject to statewide grant-making policies and
laws, including but not limited to sections 16A.15 and 16C.05, except as
specifically required by the commissioner.
A direct payment must be used for the purposes and allowable activities
established by the commissioner and is subject to financial oversight,
reporting, and monitoring requirements under subdivision 11.
Sec. 2. Minnesota Statutes 2024, section 245.4661, is amended by adding a subdivision to read:
Subd. 3a. Authority
and rulemaking. (a) The
commissioner may distribute money under this section through direct payments to
counties or Tribes when the commissioner determines that a direct payment is
the most effective and efficient method to support the delivery of adult mental
health services, Tribal government activities, or county responsibilities under
this section. The commissioner shall
establish eligibility criteria, allowable uses, documentation standards, and
reporting requirements for recipients of direct payments. The commissioner is authorized to engage in
rulemaking to fulfill the requirements of this subdivision.
(b) By January 1, 2027,
the commissioner must submit a report to the chairs and ranking minority
members of the legislative committees with jurisdiction over human services
finance and policy that includes, at a minimum, the commissioner's plan for
determining direct payment eligibility criteria, allowable uses of direct
payments, documentation standards, and reporting requirements for recipients of
direct payments.
Subd. 9. Programs
and eligible services and programs.
(a) The following three distinct grant programs are funded
may receive direct payments under this section:
(1) mental health crisis services;
(2) housing with supports for adults with serious mental illness; and
(3) projects for assistance in transitioning from homelessness (PATH program).
(b) In addition, The
following services are eligible for grant funds funding as
direct payments under this section as the payor of last resort:
(1) community education and prevention;
(2) client outreach;
(3) early identification and intervention;
(4) adult outpatient diagnostic assessment and psychological testing;
(5) peer support services;
(6) community support program services (CSP);
(7) adult residential crisis stabilization;
(8) supported employment;
(9) assertive community treatment (ACT);
(10) housing subsidies;
(11) basic living, social skills, and community intervention;
(12) emergency response services;
(13) adult outpatient psychotherapy;
(14) adult outpatient medication management;
(15) adult mobile crisis services, including the purchase and renovation of vehicles by mobile crisis teams in order to provide protected transport under section 256B.0625, subdivision 17, paragraph (l), clause (6);
(16) adult day treatment;
(17) partial hospitalization;
(18) adult residential treatment;
(20) transportation.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 4. Minnesota Statutes 2024, section 245.4661, subdivision 10, is amended to read:
Subd. 10. Commissioner
duty to report on use of grant funds biennially. (a) By November 1, 2016, and biennially
thereafter, the commissioner of human services shall provide sufficient
information to the members of the legislative committees having jurisdiction
over mental health funding and policy issues to evaluate the use of funds
appropriated under this section. The
commissioner shall provide, at a minimum, the following information:
(1) the amount of funding to adult mental health initiatives, what programs and services were funded in the previous two years, gaps in services that each initiative brought to the attention of the commissioner, and outcome data for the programs and services that were funded; and
(2) the amount of funding for other targeted services and the location of services.
(b) This subdivision expires January 1, 2032.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 5. Minnesota Statutes 2024, section 245.4661, is amended by adding a subdivision to read:
Subd. 12. Oversight
of direct payments. (a) The
commissioner shall develop and maintain monitoring, financial review, and
accountability procedures for all direct payments issued under this section.
(b) Recipients of direct
payments must comply with all documentation, reporting, and expenditure
requirements established by the commissioner.
(c) The commissioner may
require corrective action, suspend payments, or recover money if a recipient
fails to comply with requirements established under this subdivision.
(d) The commissioner
shall develop a direct payment acknowledgment process to ensure that recipients
understand the terms, conditions, and oversight requirements associated with
direct payments.
(e) The commissioner is
authorized to engage in rulemaking to fulfill the requirements of this
subdivision.
(f) By January 1, 2027,
the commissioner must submit a report to the chairs and ranking minority
members of the legislative committees with jurisdiction over human services
finance and policy that, at a minimum, describes the commissioner's development
of the monitoring, financial review, and accountability procedures as required
under this section.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 6. Minnesota Statutes 2024, section 254A.03, subdivision 2, is amended to read:
Subd. 2. American Indian programs. There is hereby created a section of American Indian programs, within the Alcohol and Drug Abuse Section of the Department of Human Services, to be headed by a special assistant for American Indian programs on substance misuse and substance use disorder and two assistants to that position. The
(1) administer direct payments using funds appropriated for American Indian groups, organizations and reservations within the state for American Indian substance misuse and substance use disorder programs;
(2) establish policies and procedures for such American Indian programs with the assistance of the American Indian Advisory Board; and
(3) hire and supervise staff to assist in the administration of the American Indian program section within the Alcohol and Drug Abuse Section of the Department of Human Services.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 7. Minnesota Statutes 2025 Supplement, section 254B.02, subdivision 5, is amended to read:
Subd. 5. Tribal allocation. The commissioner may make direct payments to Tribal Nation servicing agencies from money allocated under this section to support individuals with substance use disorders and determine eligibility for behavioral health fund payments. The payment must not be less than 133 percent of the Tribal Nations payment for the fiscal year ending June 30, 2009, adjusted in proportion to the statewide change in the appropriation for this chapter.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 8. Minnesota Statutes 2025 Supplement, section 254B.0503, subdivision 1, is amended to read:
Subdivision 1. Eligible vendor requirements. (a) Vendors of room and board are eligible for behavioral health fund payment if the vendor:
(1) has rules prohibiting residents bringing chemicals into the facility or using chemicals while residing in the facility and provide consequences for infractions of those rules;
(2) is determined to meet applicable health and safety requirements;
(3) is not a jail or prison;
(4) is not concurrently receiving funds under chapter 256I for the recipient;
(5) admits individuals who are 18 years of age or older;
(6) is registered as a board and lodging or lodging establishment according to section 157.17;
(7) has awake staff on site whenever a client is present;
(9) has emergency behavioral procedures that meet the requirements of section 245G.16;
(10) meets the requirements of section 245G.08, subdivision 5, if administering medications to clients;
(11) meets the abuse prevention requirements of section 245A.65, including a policy on fraternization and the mandatory reporting requirements of section 626.557;
(12) documents coordination with the treatment provider to ensure compliance with section 254B.03, subdivision 2;
(13) protects client funds and ensures freedom from exploitation by meeting the provisions of section 245A.04, subdivision 13;
(14) has a grievance procedure that meets the requirements of section 245G.15, subdivision 2; and
(15) has sleeping and bathroom facilities for men and women separated by a door that is locked, has an alarm, or is supervised by awake staff.
(b) Programs providing children's mental health crisis admissions and stabilization under section 245.4882, subdivision 6, are eligible vendors of room and board.
(c) Programs providing children's residential services under section 245.4882, except services for individuals who have a placement under chapter 260C or 260D, are eligible vendors of room and board.
(d) A vendor that is not licensed as a residential treatment program must have a policy to address staffing coverage when a client may unexpectedly need to be present at the room and board site.
(e) No new vendors for room
and board services may be approved after June 30, 2025, to receive payments
from the behavioral health fund, under the provisions of section 254B.04,
subdivision 2a. Room and board vendors
that were approved and operating prior to July 1, 2025, may continue to receive
payments from the behavioral health fund for services provided until June
30, 2027 December 31, 2026. Room
and board vendors providing services in accordance with section 254B.04,
subdivision 2a, will no longer be eligible to claim reimbursement for room and
board services provided on or after July January 1, 2027.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 9. Minnesota Statutes 2025 Supplement, section 254B.0505, subdivision 8, is amended to read:
Subd. 8. Peer
recovery support services requirements. Eligible
vendors of peer recovery support services must:
(1) submit to a
review by the commissioner of up to ten percent of all medical assistance and
behavioral health fund claims to determine the medical necessity of peer
recovery support services for entities billing for peer recovery support
services individually and not receiving a daily rate; and.
(2) limit an individual
client to 14 hours per week for peer recovery support services from an
individual provider of peer recovery support services.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Subd. 9. Billing
limits. (a) Treatment
coordination must not exceed five hours per week per recipient.
(b) Peer recovery
support services must not exceed ten hours per week per recipient. Services must be provided in person and must
not include time spent transporting a recipient.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 11. Minnesota Statutes 2025 Supplement, section 254B.0509, subdivision 2, is amended to read:
Subd. 2. Annual
adjustments. Effective January 1,
2027, and annually thereafter, the commissioner of human services must adjust
the payment rates under subdivision 1 section 254B.0505, subdivision
1, clauses (1) to (9), according to the change from the midpoint of the
previous rate year to the midpoint of the rate year for which the rate is being
determined 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. Notwithstanding this
subdivision, rates must not be adjusted lower than those established on January
1, 2026.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 12. Minnesota Statutes 2024, section 254B.17, is amended to read:
254B.17 WITHDRAWAL MANAGEMENT START-UP AND CAPACITY-BUILDING GRANTS.
The commissioner must
establish start-up and capacity-building grants for prospective or,
new, or existing substance use disorder treatment or withdrawal
management programs licensed under chapter 245F that will meet ASAM
criteria for medically monitored managed or clinically
monitored levels of care by integrating withdrawal management services into
outpatient, intensive outpatient, or residential treatment services. Grants must be used to measurably increase
client capacity or expand available services and must align services with ASAM
criteria. Grants may be used to
add medications for opioid use disorder to a grantee's available services and
for capacity‑building expenses that are not reimbursable under Minnesota
health care programs, including but not limited to:
(1) costs associated with hiring staff or contracting with medical services providers;
(2) costs associated with staff retention;
(3) the purchase of office equipment and supplies;
(4) the purchase of software;
(5) costs associated with obtaining applicable and required licenses;
(6) business formation costs;
(7) costs associated with
staff training; and
(8) the purchase of medical
equipment and supplies necessary to meet health and safety requirements.;
(9) costs associated
with adding or improving physical space;
(10)
start-up costs associated with adding new locations; and
(11) costs associated
with becoming ASAM certified for medically managed levels of care.
Sec. 13. Minnesota Statutes 2024, section 256B.04, subdivision 23, is amended to read:
Subd. 23. Medical
assistance costs for certain inmates. (a)
The commissioner shall execute an interagency agreement with the commissioner
of corrections to recover the state cost attributable to medical assistance
eligibility for inmates of public institutions admitted to a medical
institution on an inpatient basis. The
annual amount to be transferred from the Department of Corrections under the
agreement must include all eligible state medical assistance costs, including
administrative costs incurred by the Department of Human Services, attributable
to inmates under state and county jurisdiction admitted to medical institutions
on an inpatient basis that are related to the implementation of section
256B.055, subdivision 14, paragraph (c).
This paragraph expires upon the effective date of paragraph (b).
(b) Effective January 1,
2027, or upon federal approval, whichever is later, the commissioner shall
execute an interagency agreement with the commissioner of corrections to
recover the state cost attributable to medical assistance eligibility for
inmates of public institutions admitted to a medical institution on an
inpatient basis. The annual amount to be
transferred from the Department of Corrections under the agreement must include
all eligible state medical assistance costs, including administrative costs
incurred by the Department of Human Services attributable to inmates under
state and county jurisdiction admitted to medical institutions on an inpatient
basis that are related to implementation of section 256B.0618, paragraph (b).
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 14. [256B.0618]
COVERAGE FOR DETAINED INDIVIDUALS.
(a) An inmate of a
correctional facility who is conditionally released under section 241.26,
244.065, or 631.425 is eligible for medical assistance if the individual:
(1) does not require the
security of a public detention facility and is housed:
(i) in a halfway house or
community correction center; or
(ii) under house arrest
and monitored by electronic surveillance in a residence approved by the
commissioner of corrections; and
(2) meets all other
eligibility requirements of this chapter.
(b) An individual, regardless of age, who is considered an inmate of a public institution as defined in Code of Federal Regulations, title 42, section 435.1010, and who meets the eligibility requirements in section 256B.056 is not eligible for medical assistance, except for covered medical assistance services received:
(1) while an inpatient in a medical institution as defined in Code of Federal Regulations, title 42, section 435.1010;
(2) by an eligible juvenile in accordance with the Consolidated Appropriations Act, 2023, Public Law 117-328, part 5121; and
(3) by an eligible
individual under with section 256B.0761.
(c) Security logistics and costs related to the inpatient treatment of an inmate are the responsibility of the entity that has jurisdiction over the inmate.
EFFECTIVE DATE. This
section is effective January 1, 2028.
Subdivision 1. Generally. Effective January 1, 2028, or upon
federal approval, whichever is later, medical assistance covers carceral
targeted case management services in accordance with section 256B.0761 and
United States Code, title 42, sections 1396a(a)(84); 1396d(a)(32); 1397bb(d);
and 1397jj(b)(2) and (7).
Subd. 2. Definitions. (a) For purposes of this section, the
following terms have the meanings given.
(b) "Comprehensive care plan" means a person-centered plan that includes goals, tasks, and services identified through screening and assessments and agreed upon by all parties. A comprehensive care plan includes but is not limited to identifying resources and services necessary to meet the individual's physical, behavioral health, and health-related social needs prerelease and postrelease.
(c)
"Consultation" means communication from a carceral targeted case
manager to other providers working with the same justice-involved individual to
(1) inform, inquire, and instruct providers on the individual's symptoms,
strategies for effective engagement, care and intervention needs, and treatment
expectations across service settings, and (2) direct and coordinate clinical
service components provided to the justice-involved individual. Service settings and components include but
are not limited to education services, social services, probation, an
individual's home, primary care, medication prescribers, disabilities services,
and services from other mental health providers.
(d) "Targeted case management for justice-involved individuals" means the provision of both county targeted case management and public or private vendor service coordination services to bridge prerelease and postrelease medical assistance services that support the physical, behavioral, and health-related social needs of justice-involved individuals.
(e) "Targeted case management services" means services that assist medical assistance eligible persons with accessing needed medical, social, educational, and other services.
Subd. 3. Eligibility. The following individuals are eligible
for carceral targeted case management services:
(1) individuals eligible for medical assistance who meet all eligibility requirements under United States Code, title 42, section 1396a(nn), through direct coordination between providers that includes timely communication, active engagement of the individual when feasible, and facilitation of continuity of care upon release;
(2) individuals eligible for medical assistance who meet eligibility requirements for the Children's Health Insurance Program under United States Code, title 42, section 1397jj(b)(7); or
(3) individuals eligible
for medical assistance who are currently incarcerated at a section 1115 reentry
demonstration pilot facility and meet the participation requirements in section
256B.0761, subdivision 2.
Subd. 4. Carceral targeted case management services. (a) For individuals eligible for services under subdivision 3, clause (1) or (2), carceral targeted case management care coordination is available for 30 days before release and up to 180 days postrelease. For individuals eligible for services under subdivision 3, clause (3), carceral targeted case management care coordination is available for up to 90 days before release and up to 180 days postrelease.
(b) Carceral targeted case management care coordination includes:
(1) comprehensive
assessment and periodic reassessment addressing physical, behavioral, and
health-related social needs in accordance with section 256B.0761 and United
States Code, title 42, sections 1396a(nn) and 1397jj(b)(7);
(2)
comprehensive care plans, including but not limited to:
(i) the desired goals of
the individual;
(ii) the individual's
preferences for services and supports;
(iii) formal and
informal services and supports based on areas of assessment, such as social
health, mental health, residence, family,
education and vocation, safety, legal, self-determination, financial, and
chemical health; and
(iv) housing
arrangements postrelease;
(3) regular review and
revision of the comprehensive care plan with the individual to ensure needs are
adequately met by referrals and supports;
(4) coordination of
referrals, which must consist of efforts beyond providing a list of resources,
to bridge prerelease to postrelease medical assistance services, including but
not limited to referrals to community-based services identified as a need on
the comprehensive care plan;
(5) warm handoffs and
follow-up post release;
(6) monitoring and
evaluation of services identified in the comprehensive care plan to ensure
personal outcomes are met and to ensure satisfaction with services and service
delivery;
(7) consultation with other professionals, including but not limited to
community-based mental health providers; and
(8) completion and
maintenance of necessary documentation that supports and verifies the
activities in this section.
Subd. 5. Carceral
targeted case management provider standards. Providers eligible to receive medical
assistance reimbursement under this section must enroll as a Minnesota health
care programs provider. To qualify as a
provider of carceral targeted case management services, a provider must:
(1) have a minimum of a
bachelor's degree or a license in a health or human services field, comparable
training and two years of experience in human services, or credentials from an
American Indian Tribe under section 256B.02, subdivision 7;
(2) demonstrate the
capacity and experience to provide targeted case management activities for
justice-involved individuals as defined in subdivision 2;
(3) be able to
coordinate and connect community resources needed by the recipient;
(4) demonstrate
administrative capacity and experience to serve the justice-involved population
for which the provider will provide services and to ensure quality of services
under state and federal requirements;
(5) have a financial
management system that provides accurate documentation of services and costs
under state and federal requirements;
(6) demonstrate capacity
to document and maintain individual case records under state and federal
requirements;
(7) demonstrate the
capacity to coordinate with county administrative functions;
(8) be
able to coordinate with health care providers to ensure access to necessary
health care services;
(9) have a procedure
that:
(i) notifies the
recipient of any conflict of interest if the targeted case management service
provider also provides the recipient's services and supports;
(ii) provides
information on all potential conflicts of interest;
(iii) obtains the
recipient's informed consent; and
(iv) provides the
recipient with alternatives; and
(10) demonstrate the
capacity to achieve the following performance outcomes: (i) access; (ii) quality; and (iii) consumer
satisfaction.
Subd. 6. Medical
assistance payment and rate setting.
(a) Carceral targeted case management rates are equal to rates
authorized by the commissioner for relocation targeted case management under
section 256B.0621, subdivision 10.
(b) The carceral
targeted case management rate only includes eligible services delivered to an
eligible recipient by an eligible provider.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 16. Minnesota Statutes 2024, section 256B.0623, is amended by adding a subdivision to read:
Subd. 15. Billing
limits. Effective January 1,
2027, services under this section must not exceed four hours per week per
recipient, with a maximum of 18 hours per month. Prior authorization is required for services
exceeding 200 hours per year.
Sec. 17. Minnesota Statutes 2024, section 256B.0625, is amended by adding a subdivision to read:
Subd. 77. Carceral
targeted case management. Effective
January 1, 2028, or upon federal approval, whichever is later, medical
assistance covers carceral targeted case management services under section
256B.0619.
Sec. 18. Minnesota Statutes 2024, section 256B.0671, is amended by adding a subdivision to read:
Subd. 14. Billing
limits. Child and family
psychoeducation services under this section must not exceed two hours per day,
three days per week per recipient.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 19. Minnesota Statutes 2024, section 256B.0761, subdivision 2, is amended to read:
Subd. 2. Eligible
individuals. (a) Notwithstanding
section 256B.055, subdivision 14, individuals are eligible to receive services
under this demonstration if they are eligible under section 256B.055,
subdivision 3a, 6, 7, 7a, 9, 15, 16, or 17, as determined by the commissioner
in collaboration with correctional facilities, local governments, and Tribal
governments. This paragraph expires
upon the effective date of paragraph (b).
(b)
Effective January 1, 2027, or upon federal approval, whichever is later,
individuals are eligible to receive services under this demonstration if they
are eligible under section 256B.055, subdivision 3a, 6, 7, 7a, 9, 15, 16, or
17, as determined by the commissioner in collaboration with correctional
facilities, local governments, and Tribal governments.
EFFECTIVE DATE. This
section is effective the day following final enactment
Sec. 20. Minnesota Statutes 2024, section 256B.0761, subdivision 3, is amended to read:
Subd. 3. Eligible correctional facilities. (a) The commissioner's waiver application is limited to:
(1) three state correctional facilities to be determined by the commissioner of corrections, one of which must be the Minnesota Correctional Facility-Shakopee;
(2) two facilities for
delinquent children and youth licensed under section 241.021, subdivision 2,
identified in coordination with the Minnesota Juvenile Detention Association
and the Minnesota Sheriffs' Association;
(3) (2) four
correctional facilities for adults licensed under section 241.021, subdivision
1, identified in coordination with the Minnesota Sheriffs' Association and the
Association of Minnesota Counties; and
(4) (3) one
correctional facility owned and managed by a Tribal government or a facility
located outside of the seven-county metropolitan area that has an inmate census
with a significant proportion of Tribal members or American Indians.
(b) Additional facilities may be added to the waiver contingent on legislative authorization and appropriations.
Sec. 21. Minnesota Statutes 2024, section 256B.0943, is amended by adding a subdivision to read:
Subd. 14. Billing
limits. (a) Skills training
under this section must not exceed two hours per day, three days per week per
recipient. Prior authorization is
required for services exceeding 200 hours per year.
(b) Mental health
behavioral aide services under this section must not exceed six hours per day,
three days per week per recipient. Prior
authorization is required for services exceeding 200 hours per year.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 22. Minnesota Statutes 2025 Supplement, section 256I.04, subdivision 2a, is amended to read:
Subd. 2a. License required; staffing qualifications. (a) Except as provided in paragraph (b), an agency may not enter into an agreement with an establishment to provide housing support unless:
(1) the establishment is licensed by the Department of Health as a hotel and restaurant; a board and lodging establishment; a boarding care home before March 1, 1985; or a supervised living facility, and the service provider for residents of the facility is licensed under chapter 245A. However, an establishment licensed by the Department of Health to provide lodging need not also be licensed to provide board if meals are being supplied to residents under a contract with a food vendor who is licensed by the Department of Health;
(2) the residence is: (i) licensed by the commissioner of human services under Minnesota Rules, parts 9555.5050 to 9555.6265; (ii) certified by a county human services agency prior to July 1, 1992, using the standards under Minnesota Rules, parts 9555.5050 to 9555.6265; (iii) licensed by the commissioner under Minnesota Rules, parts 2960.0010 to 2960.0120, with a variance under section 245A.04, subdivision 9; or (iv) licensed under section 245D.02, subdivision 4a, as a community residential setting by the commissioner of human services;
(4) effective January 1,
2027 July 1, 2026, the establishment is licensed by the Department
of Health as a board and lodging establishment and is certified by the
commissioner as a recovery residence in accordance with section 254B.215,
subdivision 3, that is subject to the requirements of section 256I.04,
subdivisions 2a to 2f. The Department of
Human Services must serve as the lead agency for agreements entered into under
this clause.
(b) The requirements under paragraph (a) do not apply to establishments exempt from state licensure because they are:
(1) located on Indian reservations and subject to tribal health and safety requirements; or
(2) supportive housing establishments where an individual has an approved habitability inspection and an individual lease agreement.
(c) Supportive housing establishments that serve individuals who have experienced long-term homelessness and emergency shelters must participate in the homeless management information system and a coordinated assessment system as defined by the commissioner.
(d) Effective July 1, 2016, an agency shall not have an agreement with a provider of housing support unless all staff members who have direct contact with recipients:
(1) have skills and knowledge acquired through one or more of the following:
(i) a course of study in a health- or human services-related field leading to a bachelor of arts, bachelor of science, or associate's degree;
(ii) one year of experience with the target population served;
(iii) experience as a mental health certified peer specialist according to section 256B.0615; or
(iv) meeting the requirements for unlicensed personnel under sections 144A.43 to 144A.483;
(2) hold a current driver's license appropriate to the vehicle driven if transporting recipients;
(3) complete training on vulnerable adults mandated reporting and child maltreatment mandated reporting, where applicable; and
(4) complete housing support orientation training offered by the commissioner.
Sec. 23. Minnesota Statutes 2024, section 297E.02, subdivision 3, is amended to read:
Subd. 3. Collection; disposition. (a) Taxes imposed by this section are due and payable to the commissioner when the gambling tax return is required to be filed. Distributors must file their monthly sales figures with the commissioner on a form prescribed by the commissioner. Returns covering the taxes imposed under this section must be filed with the commissioner on or before the 20th day of the month following the close of the previous calendar month. The commissioner shall prescribe the content, format, and manner of returns or other documents pursuant to section 270C.30. The proceeds, along with the revenue received from all license fees and other fees under sections 349.11 to 349.191, 349.211, and 349.213, must be paid to the commissioner of management and budget for deposit in the general fund.
(c) One-half of one percent
of the revenue deposited in the general fund under paragraph (a), is
appropriated to the commissioner of human services for the compulsive gambling
treatment program established under section 245.98. One-half of one percent of the revenue
deposited in the general fund under paragraph (a), is appropriated to the
commissioner of human services for a grant to the state affiliate recognized by
the National Council on Problem Gambling to increase public awareness of
problem gambling, education and training for individuals and organizations
providing effective treatment services to problem gamblers and their families,
and research relating to problem gambling.
Money appropriated by this paragraph must supplement and must not
replace existing state funding for these programs. The balance of amounts appropriated under
this paragraph that are unencumbered and unspent at the close of a fiscal year
must be available in the next fiscal year for the same purposes and must not
cancel to the fund from which the amounts were appropriated.
(d) The commissioner of
human services must provide to the state affiliate recognized by the National
Council on Problem Gambling a monthly statement of the amounts deposited under
paragraph (c). Beginning January 1,
2022, the commissioner of human services must provide to the chairs and ranking
minority members of the legislative committees with jurisdiction over treatment
for problem gambling and to the state affiliate recognized by the National
Council on Problem Gambling an annual reconciliation of the amounts deposited
under paragraph (c). The annual
reconciliation under this paragraph must include the amount allocated to the
commissioner of human services for the compulsive gambling treatment program
established under section 245.98, and the amount allocated to the state
affiliate recognized by the National Council on Problem Gambling. The annual reconciliation must also
include any rollover amounts from the previous fiscal year and the utilization
of those amounts during the current reporting period.
Sec. 24. Laws 2025, First Special Session chapter 9, article 4, section 2, the effective date, is amended to read:
EFFECTIVE DATE. This section
is effective January July 1, 2027 2026.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 25. Laws 2025, First Special Session chapter 9, article 4, section 23, the effective date, is amended to read:
EFFECTIVE DATE. This section
is effective January July 1, 2027 2026.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 26. Laws 2025, First Special Session chapter 9, article 4, section 38, the effective date, is amended to read:
EFFECTIVE DATE. This section
is effective January July 1, 2027 2026.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 27. Laws 2025, First Special Session chapter 9, article 4, section 39, the effective date, is amended to read:
EFFECTIVE DATE. This section
is effective January July 1, 2027 2026.
EFFECTIVE DATE. This
section is effective the day following final enactment.
EFFECTIVE DATE. This section
is effective January July 1, 2027 2026.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 29. Laws 2025, First Special Session chapter 9, article 4, section 41, the effective date, is amended to read:
EFFECTIVE DATE. This section
is effective January July 1, 2027 2026.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 30. Laws 2025, First Special Session chapter 9, article 4, section 42, the effective date, is amended to read:
EFFECTIVE DATE. This section
is effective January July 1, 2027 2026.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 31. Laws 2025, First Special Session chapter 9, article 4, section 43, the effective date, is amended to read:
EFFECTIVE DATE. This section
is effective January July 1, 2027 2026.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 32. Laws 2025, First Special Session chapter 9, article 4, section 44, the effective date, is amended to read:
EFFECTIVE DATE. This section
is effective January July 1, 2027 2026.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 33. Laws 2025, First Special Session chapter 9, article 4, section 50, the effective date, is amended to read:
EFFECTIVE DATE. This section
is effective January July 1, 2027 2026.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 34. DIRECTION
TO COMMISSIONER; CARCERAL TARGETED CASE MANAGEMENT SERVICES BILLING UNITS.
The commissioner of
human services must establish a new billing code for carceral targeted case
management services. The commissioner
must identify reimbursement rates for the newly defined codes, as required
under Minnesota Statutes, section 256B.0619, subdivision 6. The new billing codes must correspond to a
15-minute unit and must be available for 180 days postrelease.
EFFECTIVE DATE. This
section is effective January 1, 2028, or upon federal approval, whichever is
later.
Sec. 35. REPEALER.
Minnesota Statutes 2024,
section 256B.055, subdivision 14, is repealed.
EFFECTIVE DATE. This
section is effective January 1, 2028, or upon federal approval, whichever is
later.
UNIFORM SERVICE STANDARDS
Section 1. Minnesota Statutes 2024, section 245.735, subdivision 6, is amended to read:
Subd. 6. Section
223 of the Protecting Access to Medicare Act entities. (a) The commissioner must request
federal approval to participate in the demonstration program established by
section 223 of the Protecting Access to Medicare Act and, if approved, to
continue to participate in the demonstration program as long as federal funding
for the demonstration program remains available from the United States
Department of Health and Human Services.
To the extent practicable, the commissioner shall align the requirements
of the demonstration program with the requirements under this section for
CCBHCs receiving medical assistance reimbursement under the authority of the
state's Medicaid state plan. A CCBHC may
not apply to participate as a billing provider in both the CCBHC federal
demonstration and the benefit for CCBHCs under the medical assistance program.
(b) The commissioner
must follow federal payment guidance, including payment of the CCBHC daily
bundled rate for services rendered by CCBHCs to individuals who are dually
eligible for Medicare and medical assistance when Medicare is the primary payer
for the service. Services provided by a
CCBHC operating under the authority of the state's Medicaid state plan will not
receive the prospective payment system rate for services rendered by CCBHCs to
individuals who are dually eligible for Medicare and medical assistance when
Medicare is the primary payer for the service.
(c) Payment for
services rendered by CCBHCs to individuals who have commercial insurance as the
primary payer and medical assistance as secondary payer is subject to the
requirements under section 256B.37. Services
provided by a CCBHC operating under the authority of the 223 demonstration or
the state's Medicaid state plan will not receive the prospective payment system
rate for services rendered by CCBHCs to individuals who have commercial
insurance as the primary payer and medical assistance as the secondary payer.
Sec. 2. Minnesota Statutes 2025 Supplement, section 245A.03, subdivision 2, is amended to read:
Subd. 2. Exclusion from licensure. (a) This chapter does not apply to:
(1) residential or nonresidential programs that are provided to a person by an individual who is related;
(2) nonresidential programs that are provided by an unrelated individual to persons from a single related family;
(3) residential or nonresidential programs that are provided to adults who do not misuse substances or have a substance use disorder, a mental illness, a developmental disability, a functional impairment, or a physical disability;
(4) sheltered workshops or work activity programs that are certified by the commissioner of employment and economic development;
(5) programs operated by a public school for children 33 months or older;
(6) nonresidential programs primarily for children that provide care or supervision for periods of less than three hours a day while the child's parent or legal guardian is in the same building as the nonresidential program or present within another building that is directly contiguous to the building in which the nonresidential program is located;
(7) nursing homes or hospitals licensed by the commissioner of health except as specified under section 245A.02;
(9) programs licensed by the commissioner of corrections;
(10) recreation programs for children or adults that are operated or approved by a park and recreation board whose primary purpose is to provide social and recreational activities;
(11) noncertified boarding care homes unless they provide services for five or more persons whose primary diagnosis is mental illness or a developmental disability;
(12) programs for children such as scouting, boys clubs, girls clubs, and sports and art programs, and nonresidential programs for children provided for a cumulative total of less than 30 days in any 12-month period;
(13) residential programs for persons with mental illness, that are located in hospitals;
(14) camps licensed by the commissioner of health under Minnesota Rules, chapter 4630;
(15) mental health outpatient services for adults with mental illness or children with mental illness, except, effective January 1, 2028, for programs licensed under section 245A.044;
(16) residential programs serving school-age children whose sole purpose is cultural or educational exchange, until the commissioner adopts appropriate rules;
(17) community support services programs as defined in section 245.462, subdivision 6, and family community support services as defined in section 245.4871, subdivision 17;
(18) assisted living facilities licensed by the commissioner of health under chapter 144G;
(19) substance use disorder treatment activities of licensed professionals in private practice as defined in section 245G.01, subdivision 17;
(20) consumer-directed community support service funded under the Medicaid waiver for persons with developmental disabilities when the individual who provided the service is:
(i) the same individual who is the direct payee of these specific waiver funds or paid by a fiscal agent, fiscal intermediary, or employer of record; and
(ii) not otherwise under the control of a residential or nonresidential program that is required to be licensed under this chapter when providing the service;
(21) a county that is an eligible vendor under section 254B.0501 to provide care coordination and comprehensive assessment services;
(22) a recovery community organization that is an eligible vendor under section 254B.0501 to provide peer recovery support services; or
(23) programs licensed by the commissioner of children, youth, and families in chapter 142B.
(c) Except for the home and community-based services identified in section 245D.03, subdivision 1, nothing in this chapter shall be construed to require licensure for any services provided and funded according to an approved federal waiver plan where licensure is specifically identified as not being a condition for the services and funding.
EFFECTIVE DATE. This
section is effective January 1, 2028.
Sec. 3. [245A.044]
LICENSED NONRESIDENTIAL BEHAVIORAL HEALTH SERVICES.
Subdivision 1. License
required for certain nonresidential behavioral health services. (a) Beginning January 1, 2028,
providers of nonresidential mental health and substance use disorder services
must obtain a license under this chapter to provide:
(1) adult rehabilitative
mental health services under section 245I.22;
(2) children's
therapeutic services and supports in the community under section 245I.30 and
children's day treatment under section 245I.31;
(3) crisis response
services under section 245I.24; and
(4) certified community
behavioral health clinic services under section 245I.17.
(b) As a condition of
licensure, an applicant or license holder must demonstrate and maintain
verification of compliance with:
(1) licensing
requirements under this chapter and chapter 245I; and
(2) applicable health
care program requirements under Minnesota Rules, parts 9505.0170 to 9505.0475
and 9505.2160 to 9505.2245.
Subd. 2. Implementation. (a) Beginning July 1, 2027, the
commissioner must begin issuing licenses to providers listed in subdivision 1. The commissioner must transition providers
certified under section 245I.011 and listed in subdivision 1 into licensure
with a phased-in schedule determined by the commissioner. The commissioner must communicate the
implementation schedule to providers at least three months before the
application is made available.
(b) Applicants for
licensure must have an approved certification under section 245I.011 at least
90 days before the date of the licensure application.
(c) A provider's
certification under section 245I.011, subdivision 5, paragraph (a), clauses (2)
to (4), or 6, paragraph (b), expires when the commissioner issues a decision on
the provider's license application.
(d) Upon licensure, a
license holder must notify clients and staff of policies and procedures
outlined in the application.
(e) Notwithstanding
paragraphs (a) and (c), subdivision 1, and sections 245I.17, 245I.22, 245I.24,
245I.30, and 245I.31, a provider listed under subdivision 1, paragraph (a),
clauses (1) to (4), and certified under section 245I.011 may continue operating
past January 1, 2028, until the commissioner issues a licensing decision if the
provider submitted an application before January 1, 2028.
(f) If
a provider fails to submit an application for licensure within the time frame
in paragraph (b), the commissioner must disenroll the provider from
reimbursement for the following services:
(1) adult rehabilitative
mental health services under section 256B.0623;
(2) crisis response
services under section 256B.0624;
(3) children's
therapeutic services and supports under section 256B.0943; and
(4) certified community
behavioral health clinics under section 256B.0625, subdivision 5m.
(g) The commissioner
must disenroll a provider listed in paragraph (f) from medical assistance if:
(1) the provider's
licensing application has been denied or the license has been suspended or
revoked; and
(2) the provider
appealed the application denial or the license suspension or revocation, and
the commissioner issued a final order on the appeal affirming the action.
EFFECTIVE DATE. This
section is effective July 1, 2026.
Sec. 4. Minnesota Statutes 2025 Supplement, section 245A.10, subdivision 3, is amended to read:
Subd. 3. Application
fee for initial license or certification.
(a) Except as provided in paragraphs (c) and, (d), and
(f), for fees required under subdivision 1, an applicant for an initial
license or certification issued by the commissioner shall submit a $2,100
application fee with each new application required under this subdivision. The application fee shall not be prorated, is
nonrefundable, and is in lieu of the annual license or certification fee that
expires on December 31. The commissioner
shall not process an application until the application fee is paid.
(b) Except as provided in paragraph (c), an applicant shall apply for a license to provide services at a specific location.
(c) For a license to provide home and community-based services to persons with disabilities or age 65 and older under chapter 245D, an applicant shall submit an application to provide services statewide. For fees required under subdivision 1, an applicant for an initial license issued by the commissioner to provide home and community-based services under chapter 245D shall submit a $4,200 application fee with each new application.
(d) For fees required under
subdivision 1, an applicant for an initial license or certification issued by
the commissioner for children's residential facility or mental health clinic
licensure or certification shall submit a $500 application fee with each
new application required under this subdivision.
(e) For fees required
under subdivision 1, an applicant for an initial mental health clinic
certification issued by the commissioner shall submit a $2,100 application fee
with each new application required under this subdivision.
(f) For fees required
under subdivision 1, an applicant for an initial license issued by the
commissioner to provide services at a certified community behavioral health
clinic under section 245I.17 shall submit a $4,200 application fee with each
new application.
Subd. 4. License or certification fee for certain programs. (a)(1) A program licensed to provide one or more of the home and community-based services and supports identified under chapter 245D to persons with disabilities or age 65 and older, shall pay an annual nonrefundable license fee based on revenues derived from the provision of services that would require licensure under chapter 245D during the calendar year immediately preceding the year in which the license fee is paid, according to the following schedule:
(2) If requested, the license holder shall provide the commissioner information to verify the license holder's annual revenues or other information as needed, including copies of documents submitted to the Department of Revenue.
(3) At each annual renewal, a license holder may elect to pay the highest renewal fee, and not provide annual revenue information to the commissioner.
(4) A license holder that knowingly provides the commissioner incorrect revenue amounts for the purpose of paying a lower license fee shall be subject to a civil penalty in the amount of double the fee the provider should have paid.
(b) A substance use disorder treatment program licensed under chapter 245G, to provide substance use disorder treatment shall pay an annual nonrefundable license fee based on the following schedule:
|
|
Licensed Capacity |
License Fee |
|
|
1 to 24 persons |
$2,600 |
|
|
25 to 49 persons |
$3,000 |
|
|
50 to 74 persons |
$5,000 |
|
|
75 to 99 persons |
$10,000 |
|
|
100 to 199 persons |
$15,000 |
|
|
200 or more persons |
$20,000 |
|
|
Licensed Capacity |
License Fee |
|
|
1 to 24 persons |
$2,600 |
|
|
25 to 49 persons |
$3,000 |
|
|
50 or more persons |
$5,000 |
A detoxification program that also operates a withdrawal management program at the same location shall only pay one fee based upon the licensed capacity of the program with the higher overall capacity.
(d) A children's residential facility licensed under Minnesota Rules, chapter 2960, to serve children shall pay an annual nonrefundable license fee based on the following schedule:
|
|
Licensed Capacity |
License Fee |
|
|
1 to 24 persons |
$1,000 |
|
|
25 to 49 persons |
$1,100 |
|
|
50 to 74 persons |
$1,200 |
|
|
75 to 99 persons |
$1,300 |
|
|
100 or more persons |
$1,400 |
(e) A residential facility licensed under section 245I.23 or Minnesota Rules, parts 9520.0500 to 9520.0670, to serve persons with mental illness shall pay an annual nonrefundable license fee based on the following schedule:
|
|
Licensed Capacity |
License Fee |
|
|
1 to 24 persons |
$2,600 |
|
|
25 to 49 persons |
$3,000 |
|
|
50 or more persons |
$20,000 |
(f) A residential facility licensed under Minnesota Rules, parts 9570.2000 to 9570.3400, to serve persons with physical disabilities shall pay an annual nonrefundable license fee based on the following schedule:
|
|
Licensed Capacity |
License Fee |
|
|
1 to 24 persons |
$450 |
|
|
25 to 49 persons |
$650 |
|
|
50 to 74 persons |
$850 |
|
|
75 to 99 persons |
$1,050 |
|
|
100 or more persons |
$1,250 |
(g) A program licensed as an adult day care center licensed under Minnesota Rules, parts 9555.9600 to 9555.9730, shall pay an annual nonrefundable license fee based on the following schedule:
|
|
Licensed Capacity |
License Fee |
|
|
1 to 24 persons |
$2,600 |
|
|
25 to 49 persons |
$3,000 |
|
|
50 to 74 persons |
$5,000 |
|
|
75 to 99 persons |
$10,000 |
|
|
100 to 199 persons |
$15,000 |
|
|
200 or more persons |
$20,000 |
(i) A mental health clinic
certified under section 245I.20 shall pay an annual nonrefundable certification
fee of $1,550 $3,000. If
the mental health clinic provides services at a primary location with satellite
facilities, the satellite facilities shall be certified with the primary
location without an additional charge.
(j) If a program subject
to annual fees under paragraph (b) provides services at a primary location with
satellite facilities, the satellite facilities must be licensed with the
primary location and must be subject to an additional $500 annual nonrefundable
license fee per satellite facility.
(j) A program licensed
to provide behavioral health treatment services licensed under section 245I.22,
245I.24, 245I.30, or 245I.31 shall pay an annual nonrefundable license fee of
$3,000 for each license.
(k) Certified community
behavioral health clinics licensed under section 245I.17 shall pay an annual
nonrefundable license fee of $7,800.
Sec. 6. Minnesota Statutes 2024, section 245A.10, is amended by adding a subdivision to read:
Subd. 4a. Fees
for satellite locations. (a)
If a program subject to annual fees under subdivision 4, paragraph (b),
provides services at a primary location with satellite facilities, the
satellite facilities are licensed with the primary location and are subject to
an additional $500 annual nonrefundable license fee per satellite facility.
(b) If a program subject
to annual fees under subdivision 4, paragraph (j), provides services at a
primary location with satellite sites or facilities, the satellite locations
must be licensed with the primary location and are subject to an additional annual
nonrefundable fee according to the following schedule:
(1) one to five
satellite locations: $1,500;
(2) six to 19 satellite
locations: $3,500; or
(3) 20 or more satellite
locations: $5,000.
Sec. 7. Minnesota Statutes 2024, section 245A.65, subdivision 1a, is amended to read:
Subd. 1a. Determination of vulnerable adult status. (a) A license holder that provides services to adults who are excluded from the definition of vulnerable adult under section 626.5572, subdivision 21, paragraph (a), clause (2), must determine whether the person is a vulnerable adult under section 626.5572, subdivision 21, paragraph (a), clause (4). This determination must be made within 24 hours of:
(1) admission to the licensed program; and
(2) any incident that:
(i) was reported under section 626.557; or
(ii) would have been required to be reported under section 626.557, if one or more of the adults involved in the incident had been vulnerable adults.
(c) Notwithstanding
paragraph (a), clause (1), a license holder providing mobile crisis services
must make the required determination within 24 hours of first providing crisis
stabilization services to an adult under section 245I.24, subdivision 9.
Sec. 8. Minnesota Statutes 2024, section 245C.03, subdivision 1, is amended to read:
Subdivision 1. Programs licensed by the commissioner. (a) The commissioner shall conduct a background study on:
(1) the person or persons applying for a license;
(2) an individual age 13 and over living in the household where the licensed program will be provided who is not receiving licensed services from the program;
(3) current or prospective employees of the applicant or license holder who will have direct contact with persons served by the facility, agency, or program;
(4) volunteers or student volunteers who will have direct contact with persons served by the program to provide program services if the contact is not under the continuous, direct supervision by an individual listed in clause (1) or (3);
(5) an individual age ten to 12 living in the household where the licensed services will be provided when the commissioner has reasonable cause as defined in section 245C.02, subdivision 15;
(6) an individual who, without providing direct contact services at a licensed program, may have unsupervised access to children or vulnerable adults receiving services from a program, when the commissioner has reasonable cause as defined in section 245C.02, subdivision 15; and
(7) all controlling individuals as defined in section 245A.02, subdivision 5a;
(8) notwithstanding clause (3), for children's residential facilities and foster residence settings, any adult working in the facility, whether or not the individual will have direct contact with persons served by the facility.
(b) For child foster care when the license holder resides in the home where foster care services are provided, a short-term substitute caregiver providing direct contact services for a child for less than 72 hours of continuous care is not required to receive a background study under this chapter.
(c) This subdivision applies to the following programs that must be licensed under chapter 245A:
(1) adult foster care;
(2) children's residential facilities;
(3) licensed home and community-based services under chapter 245D;
(4) residential mental health programs for adults;
(5) substance use disorder treatment programs under chapter 245G;
(7) adult day care centers;
(8) family adult day services;
(9) detoxification programs;
(10) community residential settings;
(11) intensive residential
treatment services and residential crisis stabilization under chapter 245I; and
(12) treatment programs for
persons with sexual psychopathic personality or sexually dangerous persons,
licensed under chapter 245A and according to Minnesota Rules, parts 9515.3000
to 9515.3110.;
(13) adult rehabilitative
mental health services under chapter 245I;
(14) certified community
behavioral health clinic services under chapter 245I;
(15) children's
therapeutic services and supports under chapter 245I; and
(16) crisis response
services under chapter 245I.
Sec. 9. Minnesota Statutes 2025 Supplement, section 245C.13, subdivision 2, is amended to read:
Subd. 2. Activities pending completion of background study. The subject of a background study may not perform any activity requiring a background study under paragraph (c) until the commissioner has issued one of the notices under paragraph (a).
(a) Notices from the commissioner required prior to activity under paragraph (c) include:
(1) a notice of the study results under section 245C.17 stating that:
(i) the individual is not disqualified; or
(ii) more time is needed to complete the study but the individual is not required to be removed from direct contact or access to people receiving services prior to completion of the study as provided under section 245C.17, subdivision 1, paragraph (b) or (c). The notice that more time is needed to complete the study must also indicate whether the individual is required to be under continuous direct supervision prior to completion of the background study. When more time is necessary to complete a background study of an individual affiliated with a Title IV-E eligible children's residential facility or foster residence setting, the individual may not work in the facility or setting regardless of whether or not the individual is supervised;
(2) a notice that a disqualification has been set aside under section 245C.23; or
(3) a notice that a variance has been granted related to the individual under section 245C.30.
(b) For a background study affiliated with a licensed child care center or certified license-exempt child care center, the notice sent under paragraph (a), clause (1), item (ii), must not be issued until the commissioner receives a qualifying result for the individual for the fingerprint-based national criminal history record check or the fingerprint‑based criminal history information from the Bureau of Criminal Apprehension. The notice must require the individual to be under continuous direct supervision prior to completion of the remainder of the background study except as permitted in subdivision 3.
(1) being issued a license;
(2) living in the household where the licensed program will be provided;
(3) providing direct contact services to persons served by a program unless the subject is under continuous direct supervision;
(4) having access to persons receiving services if the background study was completed under section 144.057, subdivision 1, or 245C.03, subdivision 1, paragraph (a), clause (2), (5), or (6), unless the subject is under continuous direct supervision;
(5) for licensed child care centers and certified license-exempt child care centers, providing direct contact services to persons served by the program;
(6) for children's residential facilities or foster residence settings, working in the facility or setting;
(7) for background studies
affiliated with a personal care provider organization, except as provided in
section 245C.03, subdivision 3b, or with an early intensive developmental
and behavioral intervention provider or adult rehabilitative mental health
services provider, before a personal care assistant an individual
provides services, the personal care assistance provider agency entity
must initiate a background study of the personal care assistant individual
under this chapter and the personal care assistance provider agency entity
must have received a notice from the commissioner that the personal care
assistant individual is:
(i) not disqualified under section 245C.14; or
(ii) disqualified, but the personal care assistant has received a set aside of the disqualification under section 245C.22; or
(8) for background studies affiliated with an early intensive developmental and behavioral intervention provider, before an individual provides services, the early intensive developmental and behavioral intervention provider must initiate a background study for the individual under this chapter and the early intensive developmental and behavioral intervention provider must have received a notice from the commissioner that the individual is:
(i) not disqualified under section 245C.14; or
(ii) disqualified, but the individual has received a set-aside of the disqualification under section 245C.22.
Sec. 10. Minnesota Statutes 2025 Supplement, section 245C.16, subdivision 1, is amended to read:
Subdivision 1. Determining immediate risk of harm. (a) If the commissioner determines that the individual studied has a disqualifying characteristic, the commissioner shall review the information immediately available and make a determination as to the subject's immediate risk of harm to persons served by the program where the individual studied will have direct contact with, or access to, people receiving services.
(b) The commissioner shall consider all relevant information available, including the following factors in determining the immediate risk of harm:
(1) the recency of the disqualifying characteristic;
(3) the number of disqualifying characteristics;
(4) the intrusiveness or violence of the disqualifying characteristic;
(5) the vulnerability of the victim involved in the disqualifying characteristic;
(6) the similarity of the victim to the persons served by the program where the individual studied will have direct contact;
(7) whether the individual has a disqualification from a previous background study that has not been set aside;
(8) if the individual has a disqualification which may not be set aside because it is a permanent bar under section 245C.24, subdivision 1, or the individual is a child care background study subject who has a felony-level conviction for a drug-related offense in the last five years, the commissioner may order the immediate removal of the individual from any position allowing direct contact with, or access to, persons receiving services from the program and from working in a children's residential facility or foster residence setting; and
(9) if the individual has a disqualification which may not be set aside because it is a permanent bar under section 245C.24, subdivision 2, or the individual is a child care background study subject who has a felony-level conviction for a drug-related offense during the last five years, the commissioner may order the immediate removal of the individual from any position allowing direct contact with or access to persons receiving services from the center and from working in a licensed child care center or certified license-exempt child care center.
(c) This section does not apply when the subject of a background study is regulated by a health-related licensing board as defined in chapter 214, and the subject is determined to be responsible for substantiated maltreatment under section 626.557 or chapter 260E.
(d) This section does not apply to a background study related to an initial application for a child foster family setting license.
(e) Except for paragraph
(f), this section does not apply to a background study that is also subject to
the requirements under section 256B.0659, subdivisions 11 and 13, for a
personal care assistant or a qualified professional as defined in section
256B.0659, subdivision 1, or to a background study for an individual providing
early intensive developmental and behavioral intervention services under
section 256B.0949 245C.13, subdivision 2, paragraph (c), clause (7).
(f) If the commissioner has reason to believe, based on arrest information or an active maltreatment investigation, that an individual poses an imminent risk of harm to persons receiving services, the commissioner may order that the person be continuously supervised or immediately removed pending the conclusion of the maltreatment investigation or criminal proceedings.
Sec. 11. Minnesota Statutes 2024, section 245G.03, subdivision 1, is amended to read:
Subdivision 1. License requirements. (a) An applicant for a license to provide substance use disorder treatment must comply with the general requirements in section 626.557; chapters 245A, 245C, and 260E; and Minnesota Rules, chapter 9544.
(b) The commissioner may grant variances to the requirements in this chapter that do not affect the client's health or safety if the conditions in section 245A.04, subdivision 9, are met.
(c) If a program is licensed
according to this chapter and is part of a certified community behavioral
health clinic under section 245.735 245I.17, the license holder
must comply with the requirements in section 245.735 245I.17,
subdivisions 4b to 4e 12 and 13, as part of the licensing
requirements under this chapter.
Subd. 3. Certification
required. (a) An individual,
organization, or government entity that is exempt from licensure under section
245A.03, subdivision 2, paragraph (a), clause (12) (15), and
chooses to be identified as a certified mental health clinic must:
(1) be a mental health clinic that is certified under section 245I.20;
(2) comply with all of the responsibilities assigned to a license holder by this chapter except subdivision 1; and
(3) comply with all of the responsibilities assigned to a certification holder by chapter 245A.
(b) An individual, organization, or government entity described by this subdivision must obtain a criminal background study for each staff person or volunteer who provides direct contact services to clients.
(c) If a clinic is
certified according to this chapter and is part of a certified community
behavioral health clinic under section 245.735, the license holder must comply
with the requirements in section 245.735, subdivisions 4b to 4e, as part of the
licensing requirements under this chapter.
EFFECTIVE DATE. This
section is effective the day following final enactment, except the amendment
striking paragraph (c) is effective January 1, 2028.
Sec. 13. Minnesota Statutes 2024, section 245I.011, subdivision 5, is amended to read:
Subd. 5. Programs certified under chapter 256B. (a) An individual, organization, or government entity certified under the following sections must comply with all of the responsibilities assigned to a license holder under this chapter except subdivision 1:
(1) an assertive community treatment provider under section 256B.0622, subdivision 3a;
(2) an adult
rehabilitative mental health services provider under section 256B.0623;
(3) a mobile crisis team
under section 256B.0624;
(4) a children's
therapeutic services and supports provider under section 256B.0943;
(5) (2) a
children's intensive behavioral health services provider under section
256B.0946; and
(6) (3) an
intensive nonresidential rehabilitative mental health services provider under
section 256B.0947.
(b) An individual,
organization, or government entity certified under the sections listed in
paragraph (a), clauses (1) to (6), must obtain a criminal background
study for each staff person and volunteer providing direct contact services to
a client.
EFFECTIVE DATE. This
section is effective January 1, 2028.
Subd. 6. License
required for nonresidential programs.
(a) Beginning January 1, 2028, an individual, organization, or
government entity must have a license under this chapter to provide the
following services:
(1) adult rehabilitative
mental health services, as defined in section 256B.0623;
(2) mobile crisis
services, as defined in section 256B.0624;
(3) children's
therapeutic services and supports, as defined in section 256B.0943; or
(4) certified community
behavioral health clinic services, as defined in sections 245I.17 and
256B.0625, subdivision 5m.
(b) An individual, organization, or government entity certified as any of the following must remain certified according to subdivision 5 until the commissioner issues a license, the commissioner denies the license application, or the certification expires according to chapter 245A:
(1) an adult
rehabilitative mental health services provider under section 256B.0623;
(2) a mobile crisis team
under section 256B.0624;
(3) a children's
therapeutic services and supports provider under section 256B.0943; or
(4) a certified
community behavioral health clinic under section 245.735.
Sec. 15. Minnesota Statutes 2024, section 245I.02, is amended by adding a subdivision to read:
Subd. 1a. Alcohol
and drug counselor"Alcohol and drug counselor" means an
individual qualified under section 245G.11, subdivision 5.
Sec. 16. Minnesota Statutes 2024, section 245I.02, is amended by adding a subdivision to read:
Subd. 10a. Comprehensive
evaluation. "Comprehensive
evaluation" means a person-centered, family‑centered, and trauma-informed
evaluation conducted according to section 245I.17, subdivision 12.
Sec. 17. Minnesota Statutes 2024, section 245I.02, is amended by adding a subdivision to read:
Subd. 18a. Initial
evaluation. "Initial
evaluation" means the assessment and preliminary diagnosis necessary to
begin client services, conducted according to section 245I.17.
Sec. 18. Minnesota Statutes 2024, section 245I.02, is amended by adding a subdivision to read:
Subd. 31a. Psychotherapy. "Psychotherapy" has the meaning given in section 256B.0671, subdivision 11.
Sec. 19. Minnesota Statutes 2024, section 245I.02, subdivision 33, is amended to read:
Subd. 33. Rehabilitative
mental health services. "Rehabilitative
mental health services" means mental health services provided to an
adult a client that enable the client to develop and achieve
psychiatric stability, social competencies, personal and emotional adjustment,
independent living skills, family roles, and community skills when symptoms of
mental illness has impaired any of the client's abilities in these areas. Rehabilitative mental
health
services include interventions that allow a client to self-monitor, compensate
for, counteract, or replace psychosocial skills deficits or maladaptive skills
acquired over the course of a mental illness.
For a child client, rehabilitative mental health services include
interventions to restore a child or adolescent to an age-appropriate
developmental trajectory that has been disrupted by a mental illness.
Sec. 20. Minnesota Statutes 2024, section 245I.02, subdivision 39, is amended to read:
Subd. 39. Treatment
plan. "Treatment plan"
means services that a license holder formulates to respond to a client's needs
and goals. A treatment plan includes
individual treatment plans under section 245I.10, subdivisions 7 and 8; initial
treatment plans under section 245I.23, subdivision 7; and crisis treatment
plans under sections 245I.23, subdivision 8, and 256B.0624, subdivision 11
245I.24, subdivision 11. For a
license holder under section 245I.17, a treatment plan is the integrated
treatment plan developed according to section 245I.17, subdivision 13.
Sec. 21. Minnesota Statutes 2024, section 245I.03, subdivision 4, is amended to read:
Subd. 4. Behavioral emergencies. (a) A license holder must have procedures that each staff person follows when responding to a client who exhibits behavior that threatens the immediate safety of the client or others. A license holder's behavioral emergency procedures must incorporate person-centered planning and trauma-informed care.
(b) A license holder's behavioral emergency procedures must include:
(1) a plan designed to prevent the client from inflicting self-harm and harming others;
(2) contact information for emergency resources that a staff person must use when the license holder's behavioral emergency procedures are unsuccessful in controlling a client's behavior;
(3) the types of behavioral emergency procedures that a staff person may use;
(4) the specific
circumstances under which the program may use behavioral emergency procedures; and
(5) the staff persons whom
the license holder authorizes to implement behavioral emergency procedures.;
and
(6) the contact information for the local crisis team.
(c) The license holder's behavioral emergency procedures must not include secluding or restraining a client except as allowed under section 245.8261.
(d) Staff persons must not use behavioral emergency procedures to enforce program rules or for the convenience of staff persons. Behavioral emergency procedures must not be part of any client's treatment plan. A staff person may not use behavioral emergency procedures except in response to a client's current behavior that threatens the immediate safety of the client or others.
Sec. 22. Minnesota Statutes 2024, section 245I.03, is amended by adding a subdivision to read:
Subd. 11. Quality
assurance and improvement plan. (a)
At a minimum, a license holder must develop a written quality assurance and
improvement plan that includes plans for:
(1) encouraging ongoing
consultation among members of the treatment team;
(2)
obtaining and evaluating feedback about services from clients, family and other
natural supports, referral sources, and staff persons;
(3) measuring and
evaluating client outcomes;
(4) reviewing client
suicide deaths and suicide attempts;
(5) examining the quality
of clinical service delivery to clients; and
(6) self-monitoring of
compliance with this chapter.
(b) At least annually, a
license holder must review, evaluate, and update the quality assurance and
improvement plan. The review must:
(1) include documentation
of the actions that the certification holder will take as a result of
information obtained from monitoring activities in the plan; and
(2) establish goals for
improved service delivery to clients for the next year.
Sec. 23. Minnesota Statutes 2025 Supplement, section 245I.04, subdivision 5, is amended to read:
Subd. 5. Behavioral
health practitioner scope of practice. (a)
A behavioral health practitioner under the treatment supervision of a mental
health professional or certified rehabilitation specialist may provide an adult
client with client education, rehabilitative mental health services, functional
assessments, level of care assessments, crisis planning, and treatment
plans. A behavioral health practitioner
under the treatment supervision of a mental health professional may provide
skill-building services to a child client, crisis planning, and
complete treatment plans for a child client.
(b) A behavioral health practitioner must not provide treatment supervision to other staff persons. A behavioral health practitioner may provide direction to mental health rehabilitation workers and mental health behavioral aides.
(c) A behavioral health practitioner who provides services to clients according to section 256B.0624 may perform crisis assessments and interventions for a client.
Sec. 24. Minnesota Statutes 2025 Supplement, section 245I.04, subdivision 17, is amended to read:
Subd. 17. Mental
health behavioral aide scope of practice.
While under the treatment supervision of a mental health
professional, a mental health behavioral aide may practice psychosocial
skills with provide skill-building services to a child client according
to the child's treatment plan and individual behavior plan that a mental health
professional, clinical trainee, or behavioral health practitioner has
previously taught to the child.
Sec. 25. Minnesota Statutes 2024, section 245I.06, subdivision 1, is amended to read:
Subdivision 1. Generally. (a) A license holder must ensure that a mental health professional or certified rehabilitation specialist provides treatment supervision to each staff person who provides services to a client and who is not a mental health professional or certified rehabilitation specialist. When providing treatment supervision, a treatment supervisor must follow a staff person's written treatment supervision plan.
(b) Treatment supervision must focus on each client's treatment needs and the ability of the staff person under treatment supervision to provide services to each client, including the following topics related to the staff person's current caseload:
(1) a review and evaluation of the interventions that the staff person delivers to each client;
(3) a review and evaluation of each client's assessments, treatment plans, and progress notes for accuracy and appropriateness;
(4) instruction on the cultural norms or values of the clients and communities that the license holder serves and the impact that a client's culture has on providing treatment;
(5) evaluation of and
feedback regarding a direct service staff person's areas of competency; and
(6) coaching, teaching, and
practicing skills with a staff person.; and
(7) modeling service
practices that respect the client, include the client in planning and
implementation of the individual treatment plan, recognize the client's
strengths, and coordinate with other involved parties and providers.
(c) A treatment supervisor must provide treatment supervision to a staff person using methods that allow for immediate feedback, including in-person, telephone, and interactive video supervision.
(d) A treatment supervisor's responsibility for a staff person receiving treatment supervision is limited to the services provided by the associated license holder. If a staff person receiving treatment supervision is employed by multiple license holders, each license holder is responsible for providing treatment supervision related to the treatment of the license holder's clients.
Sec. 26. Minnesota Statutes 2024, section 245I.06, subdivision 2, is amended to read:
Subd. 2. Treatment supervision planning. (a) A treatment supervisor and the staff person supervised by the treatment supervisor must develop a written treatment supervision plan. The license holder must ensure that a new staff person's treatment supervision plan is completed, approved by the staff person, and implemented by a treatment supervisor and the new staff person within 30 days of the new staff person's first day of employment. The license holder must review and update each staff person's treatment supervision plan annually.
(b) Each staff person's treatment supervision plan must include:
(1) the name and qualifications of the staff person receiving treatment supervision;
(2) the names and licensures of the treatment supervisors who are supervising the staff person;
(3) how frequently the treatment supervisors must provide treatment supervision to the staff person; and
(4) the staff person's
authorized scope of practice, including a description of the client population
ages that the staff person serves, and a description of the treatment
methods and modalities that the staff person may use to provide services to
clients.
Sec. 27. Minnesota Statutes 2024, section 245I.07, is amended to read:
245I.07 PERSONNEL FILES.
(a) For each staff person, a license holder must maintain a personnel file that includes:
(1) verification of the staff person's qualifications required for the position including training, education, practicum or internship agreement, licensure, and any other required qualifications;
(3) the hiring date of the staff person;
(4) a description of the staff person's job responsibilities with the license holder;
(5) the date that the staff person's specific duties and responsibilities became effective, including the date that the staff person began having direct contact with clients;
(6) documentation of the staff person's training as required by section 245I.05, subdivision 2;
(7) a verification copy of license renewals that the staff person completed during the staff person's employment;
(8) annual job performance evaluations; and
(9) if applicable, the staff person's alleged and substantiated violations of the license holder's policies under section 245I.03, subdivision 8, clauses (3) to (7), and the license holder's response.
(b) The license holder must ensure that all personnel files are readily accessible for the commissioner's review. The license holder is not required to keep personnel files in a single location.
(c) For a license holder
under section 245I.17, a personnel file for staff who provide substance use
disorder treatment services must include records of training required under
section 245G.13, subdivision 2.
Sec. 28. Minnesota Statutes 2024, section 245I.10, is amended by adding a subdivision to read:
Subd. 2a. Evaluation,
treatment authorization, and planning in a certified community behavioral
health clinic. Notwithstanding
subdivisions 2 and 7, a license holder under section 245I.17 must meet the
requirements for assessments under section 245I.17, subdivisions 11 and 12, and
for treatment planning under section 245I.17, subdivision 13. Certified community behavioral health clinic
service planning and authorization must comply with the standards in section
245I.17.
Sec. 29. Minnesota Statutes 2024, section 245I.10, subdivision 6, is amended to read:
Subd. 6. Standard diagnostic assessment; required elements. (a) Only a mental health professional or a clinical trainee may complete a standard diagnostic assessment of a client. A standard diagnostic assessment of a client must include a face-to-face interview with a client and a written evaluation of the client. The assessor must complete a client's standard diagnostic assessment within the client's cultural context. An alcohol and drug counselor may gather and document the information in paragraphs (b) and (c) when completing a comprehensive assessment according to section 245G.05.
(b) When completing a standard diagnostic assessment of a client, the assessor must gather and document information about the client's current life situation, including the following information:
(1) the client's age;
(2) the client's current living situation, including the client's housing status and household members;
(3) the status of the client's basic needs;
(4) the client's education level and employment status;
(6) any immediate risks to the client's health and safety, including withdrawal symptoms, medical conditions, and behavioral and emotional symptoms;
(7) the client's perceptions of the client's condition;
(8) the client's description of the client's symptoms, including the reason for the client's referral;
(9) the client's history of mental health and substance use disorder treatment;
(10) cultural influences on the client; and
(11) substance use history, if applicable, including:
(i) amounts and types of substances, frequency and duration, route of administration, periods of abstinence, and circumstances of relapse; and
(ii) the impact to functioning when under the influence of substances, including legal interventions.
(c) If the assessor cannot obtain the information that this paragraph requires without retraumatizing the client or harming the client's willingness to engage in treatment, the assessor must identify which topics will require further assessment during the course of the client's treatment. The assessor must gather and document information related to the following topics:
(1) the client's relationship with the client's family and other significant personal relationships, including the client's evaluation of the quality of each relationship;
(2) the client's strengths and resources, including the extent and quality of the client's social networks;
(3) important developmental incidents in the client's life;
(4) maltreatment, trauma, potential brain injuries, and abuse that the client has suffered;
(5) the client's history of or exposure to alcohol and drug usage and treatment; and
(6) the client's health history and the client's family health history, including the client's physical, chemical, and mental health history.
(d) When completing a standard diagnostic assessment of a client, an assessor must use a recognized diagnostic framework.
(1) When completing a standard diagnostic assessment of a client who is five years of age or younger, the assessor must use the current edition of the DC: 0-5 Diagnostic Classification of Mental Health and Development Disorders of Infancy and Early Childhood published by Zero to Three.
(2) When completing a standard diagnostic assessment of a client who is six years of age or older, the assessor must use the current edition of the Diagnostic and Statistical Manual of Mental Disorders published by the American Psychiatric Association.
(3)
When completing a standard diagnostic assessment of a client who is 12 to 17
years of age, an assessor must use either the CRAFFT Questionnaire or the
criteria in the most recent edition of the Diagnostic and Statistical Manual of
Mental Disorders published by the American Psychiatric Association to screen
and assess the client for a substance use disorder.
(3) (4) When
completing a standard diagnostic assessment of a client who is 18 years of age
or older, an assessor must use either (i) the CAGE-AID Questionnaire or (ii)
the criteria in the most recent edition of the Diagnostic and Statistical
Manual of Mental Disorders published by the American Psychiatric Association to
screen and assess the client for a substance use disorder.
(e) When completing a standard diagnostic assessment of a client, the assessor must include and document the following components of the assessment:
(1) the client's mental status examination;
(2) the client's baseline measurements; symptoms; behavior; skills; abilities; resources; vulnerabilities; safety needs, including client information that supports the assessor's findings after applying a recognized diagnostic framework from paragraph (d); and any differential diagnosis of the client; and
(3) an explanation of: (i) how the assessor diagnosed the client using the information from the client's interview, assessment, psychological testing, and collateral information about the client; (ii) the client's needs; (iii) the client's risk factors; (iv) the client's strengths; and (v) the client's responsivity factors.
(f) When completing a
standard diagnostic assessment of a client, the assessor must consult the
client and the client's family about which services that the client and the
family prefer to treat the client. The
assessor must make referrals for the client as to services required by law.
(g) Information from other providers and prior assessments may be used to complete the diagnostic assessment if the source of the information is documented in the diagnostic assessment.
(h) If the client
screens positive for a need for substance use disorder treatment services, the
assessor must document what actions will be taken to address the client's
co-occurring conditions.
(i) The assessor must
determine if the client is eligible for targeted case management services
according to section 245.462, subdivision 20, or 245.4871, subdivision 6, and
refer the client to the county or contracted provider as appropriate.
Sec. 30. Minnesota Statutes 2024, section 245I.10, subdivision 8, is amended to read:
Subd. 8. Individual treatment plan; required elements. (a) After completing a client's diagnostic assessment or reviewing a client's diagnostic assessment received from a different provider and before providing services to the client beyond those permitted under subdivision 7, the license holder must complete the client's individual treatment plan. The license holder must:
(1) base the client's individual treatment plan on the client's diagnostic assessment and baseline measurements;
(2) for a child client, use a child-centered, family-driven, and culturally appropriate planning process that allows the child's parents and guardians to observe and participate in the child's individual and family treatment services, assessments, and treatment planning;
(4) identify the client's treatment goals, measureable treatment objectives, a schedule for accomplishing the client's treatment goals and objectives, a treatment strategy, and the individuals responsible for providing treatment services and supports to the client. The license holder must have a treatment strategy to engage the client in treatment if the client:
(i) has a history of not engaging in treatment; and
(ii) is ordered by a court to participate in treatment services or to take neuroleptic medications;
(5) identify the
participants involved in the client's treatment planning. The client must be a participant in the
client's treatment planning. If
applicable, the license holder must document the reasons that the license
holder did not involve the client's family, case manager, or other
natural supports in the client's treatment planning; and
(6) review the client's
individual treatment plan every 180 days and update the client's individual
treatment plan with the client's treatment progress, new treatment objectives
and goals or, if the client has not made treatment progress, changes in the license
holder's approach to treatment; and
(7) (6) ensure
that the client approves of the client's individual treatment plan unless a
court orders the client's treatment plan under chapter 253B.
(b) If the client disagrees with the client's treatment plan, the license holder must document in the client file the reasons why the client does not agree with the treatment plan. If the license holder cannot obtain the client's approval of the treatment plan, a mental health professional must make efforts to obtain approval from a person who is authorized to consent on the client's behalf within 30 days after the client's previous individual treatment plan expired. A license holder may not deny a client service during this time period solely because the license holder could not obtain the client's approval of the client's individual treatment plan. A license holder may continue to bill for the client's otherwise eligible services when the client re-engages in services.
(c) The individual
treatment plan must be updated as necessary to reflect the changing needs of
the client. The individual treatment
plan must provide assistance with accessing necessary crisis services when the
license holder is aware of the client's need for crisis services. The license holder must review the client's
individual treatment plan every 180 days and update the client's individual
treatment plan with the client's treatment progress, new treatment objectives
and goals, or, if the client has not made treatment progress, changes in the
license holder's approach to treatment.
Sec. 31. [245I.17]
CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC LICENSURE.
Subdivision 1. Definitions. (a) For the purposes of this section,
the terms in this subdivision have the meanings given.
(b) "Care
coordination" means the activities required to coordinate care across
settings and providers for an individual served to ensure seamless transitions
across the full spectrum of health services.
Care coordination includes:
(1) outreach and
engagement;
(2)
documenting a plan of care for medical, behavioral health, and social services
and supports in the integrated treatment plan;
(3) assisting with
obtaining appointments;
(4) confirming
appointments are kept;
(5) developing a crisis
plan;
(6) tracking medication;
and
(7) implementing care
coordination agreements with external providers. Care coordination may include psychiatric
consultation with primary care practitioners and with mental health clinical
care practitioners.
(c) "CCBHC
client" means an individual who has participated in a preliminary
screening and risk assessment and who has received at least one of the nine
required services from a CCBHC.
(d) "Certified
community behavioral health clinic" or "CCBHC" means a provider
of integrated behavioral health services that is licensed under this section
and compliant with federal CCBHC requirements.
(e) "Community
needs assessment" means an assessment to identify community needs and
determine the community behavioral health clinic's capacity to address the
needs of the population being served.
(f) "Designated
collaborating organization" means an entity meeting the requirements of
subdivision 5 that has a formal agreement with a CCBHC to furnish CCBHC
services.
(g) "Federal CCBHC
criteria" means the most recently issued Certified Community Behavioral
Health Clinic Certification Criteria published by the Substance Abuse and
Mental Health Services Administration.
(h) "Needs
assessment" means the community needs assessment described in federal
criteria for CCBHC.
(i) "Preliminary
screening and risk assessment" means a mandatory screening and risk
assessment that is completed at the time of first contact, whether that contact
is in person, by telephone, or using other remote communication.
Subd. 2. Establishment
of licensure. (a) The
certified community behavioral health clinic model is an integrated service
delivery model that uses evidence-based behavioral health practices to achieve
better outcomes for individuals experiencing behavioral health concerns while
achieving sustainable rates through cost-based reimbursement for providers and
economic efficiencies for payors.
(b) Beginning January 1,
2028, a CCBHC must be licensed under this section and chapter 245A.
(c) A CCBHC must meet
the requirements of this section and federal CCBHC criteria. The commissioner may require a CCBHC
applicant or license holder to submit documentation of compliance with state
licensing requirements and federal CCBHC criteria. When permitted by the Substance Abuse and
Mental Health Services Administration, the commissioner may select a transition
date on which revisions to the federal CCBHC criteria become required as
licensing conditions for CCBHCs.
Subd. 3. License
extension. (a) The
commissioner must extend a compliant license holder's license under this
section for 36 months.
(b) The commissioner
must complete a licensing review that includes an on-site inspection within six
months before the expiration of the CCBHC's current license.
(c) Within 180 days of
license expiration, a CCBHC license holder must submit to the commissioner all
documentation required by the commissioner under subdivision 2, paragraph (c).
Subd. 4. Required
services and scope of licensure. Within
a declared service area, the CCBHC must be able to offer:
(1) mobile crisis
services, directly or through a designated collaborating organization under
subdivision 4;
(2) outpatient mental
health and substance use disorder treatment services under subdivisions 9 and
10;
(3) screening,
diagnosis, and risk assessment under subdivision 11;
(4) person- and
family-centered treatment planning;
(5) psychiatric
rehabilitation services under subdivision 14;
(6) community-based
mental health care for veterans under subdivision 15;
(7) outpatient primary
care screening and monitoring under subdivision 16;
(8) peer services under
subdivision 17; and
(9) targeted case
management under subdivision 18.
Subd. 5. Designated
collaborating organization. (a)
If a CCBHC is unable to provide mobile crisis services, the CCBHC may contract
with another entity that is licensed to provide mobile crisis services under
section 245I.24 and that meets the requirements of the federal CCBHC criteria
as a designated collaborating organization.
(b) The CCBHC must
submit a designated collaborating organization arrangement for approval to the
commissioner as part of the licensing process.
Subd. 6. Exemptions
to host county approval. Notwithstanding
any other law that requires a county contract or other form of county approval
for a service listed in subdivision 4, a CCBHC that meets the requirements of
this section may receive the prospective payment under section 256B.0625,
subdivision 5m, for that service without a county contract or county approval.
Subd. 7. Variances. When the standards listed in this
section or other applicable standards conflict or address similar issues in
duplicative or incompatible ways, the commissioner may grant variances to state
requirements if the variances do not conflict with federal requirements for
services reimbursed under medical assistance.
If standards overlap, the commissioner may substitute all or a part of a
licensure or certification that is substantially the same as another licensure
or certification. The commissioner must
consult with stakeholders before granting variances under this provision. For a CCBHC that is licensed but not approved
for prospective payment under section 256B.0625, subdivision 5m, the
commissioner may grant a variance under this paragraph if the variance does not
increase the state share of costs.
Subd. 8. Evidence-based
practices. The commissioner
must issue a list of required evidence-based practices to be delivered by
CCBHCs and may also provide a list of recommended evidence-based practices. The commissioner may update the list to
reflect advances in outcomes research and medical services for persons living
with mental illnesses or substance use disorders. When developing the list, the commissioner
must consider the adequacy of evidence to support the efficacy of the practice
across cultures and ages, the workforce available, and the current availability
of the practices in the state. At least
30 days before issuing the initial list or issuing any revisions, the
commissioner must provide stakeholders with an opportunity to comment.
Subd. 9. Outpatient
mental health services. (a) A
license holder must provide outpatient mental health services that comply with
the federal CCBHC criteria and applicable state standards in this chapter,
except as provided in this subdivision.
(b) Completion of an
initial or comprehensive evaluation fulfills the requirements to perform a
diagnostic assessment in accordance with section 245I.10, subdivisions 2 and 6.
(c) An integrated
treatment plan under this section fulfills the requirements to conduct
treatment planning in accordance with section 245I.10, subdivisions 7 and 8.
(d) A license holder
under this section is exempt from certification as a mental health clinic under
section 245I.20.
Subd. 10. Outpatient
substance use disorder treatment. (a)
When a license holder provides substance use disorder treatment services to an
individual with a substance use disorder diagnosis, the license holder must
comply with the requirements for substance use disorder treatment services in
chapter 245G, except as provided in this subdivision.
(b) Completion of a
preliminary screening and risk assessment under this section fulfills the
requirements to complete an initial services plan under section 245G.04,
subdivision 1.
(c) Completion of a
comprehensive evaluation under this section fulfills the requirements to
administer a comprehensive assessment under section 245G.05.
(d) An integrated
treatment plan under this section that contains a six-dimension analysis of the
client's needs according to the third edition of ASAM criteria, as defined in
section 254B.01, subdivision 2a, fulfills the requirements to provide an individual
treatment plan under section 245G.06.
(e) A license holder
under this section fulfills the requirement to document personnel files under
section 245G.13, subdivision 3, by complying with the requirements of this
chapter.
(f) A license holder
under this section fulfills the requirement to protect client rights under
section 245G.15 by complying with the requirements of section 245I.12.
(g) A license holder
under this section fulfills the requirements to respond to behavioral
emergencies under section 245G.16 by complying with the requirements of section
245I.03, subdivision 4.
(h) A license holder
under this section is exempt from licensure under chapter 245G.
Subd. 11. Initial
triage and risk assessment. (a)
A license holder must have policies and procedures on:
(1) how staff will
implement the requirements of this subdivision;
(2) staff positions
authorized to complete triage and risk assessments;
(3) documenting the
results of the risk screenings; and
(4) ensuring the client
is offered timely services according to the federal CCBHC criteria.
(b) A license holder
must conduct an initial triage and risk assessment when a new client requests
services or is referred to services. A
license holder may conduct an initial triage and risk assessment in person, by
telephone, or through other remote communication. Based on the acuity of needs as assessed in
the initial triage and risk assessment, the client must be categorized as
having emergency, urgent, or routine needs.
(c) Based on these
categorizations, the license holder must offer services that meet the relevant
timelines under the federal CCBHC criteria.
(d) The license holder
must provide training that addresses:
(1) when a prospective
client requires intervention from qualified staff;
(2) the use of
standardized measures that screen for significant risks;
(3) other factors that
indicate a client has urgent needs besides the Columbia Suicide Severity Rating
Scale or a self-harm screening; and
(4) overdose and
substance use disorder risks.
Subd. 12. Initial
and comprehensive evaluation. (a)
A license holder under this section must provide initial and comprehensive
evaluations according to this section and federal CCBHC criteria.
(b) An initial
evaluation is necessary to authorize the provision of all medically necessary
CCBHC services until the completion of a comprehensive evaluation. A comprehensive evaluation is necessary to
authorize the provision of all medically necessary CCBHC services on an ongoing
basis. A license holder must ensure that
each client's comprehensive evaluation reflects the needs and assessments for
all services provided.
Subd. 13. Integrated
treatment plan. (a) A license
holder under this section must complete an integrated treatment plan for each
client following the client's comprehensive evaluation no later than 60
calendar days after the date of the first request for services.
(b) A license holder
must document all required services under subdivision 9 within the integrated
treatment plan based on the client's needs.
(c) A license holder
must review and update a client's integrated treatment plan as necessary to
reflect the changing needs of the client and progress made in treatment. If the client has not made treatment
progress, updates to the treatment plan must indicate changes in the license
holder's approach to treatment to better meet the needs of the client. A license holder must review and update the
integrated treatment plan at least every 180 days or as clinically indicated.
Subd. 14. Psychiatric
rehabilitation services. (a)
For children, a license holder under this section must provide children's
therapeutic services and supports according to sections 245I.30 and 245I.31,
except that an initial or comprehensive assessment under this section fulfills
the requirement to perform a standard diagnostic assessment.
(b) For adults, a license
holder under this section must provide adult rehabilitative mental health
services according to section 245I.22, except that:
(1) the license holder is
exempt from the requirement to perform a level of care assessment under section
245I.22, subdivision 6, paragraph (b); and
(2) an initial or
comprehensive assessment under this section fulfills the requirement to perform
a standard diagnostic assessment.
Subd. 15. Community-based
care for veterans. (a) The
license holder must provide services according to federal requirements for
eligibility and coordination with TRICARE and the United States Department of
Veterans Affairs.
(b) The license holder
must assign and document a principal behavioral health provider for every
veteran receiving services.
Subd. 16. Primary
care screening and monitoring. To
fulfill the requirements for primary care screening, a license holder under
this section must have policies and procedures detailing the screenings to be
performed with specific populations at the clinic. The policies and procedures must be approved
by the medical director.
Subd. 17. Peer
services. A license holder
must be able to provide peer services as described by federal CCBHC criteria
and sections 245G.07, subdivision 2, clause (8), 256B.0615, and 256B.0616.
Subd. 18. Targeted
case management. (a) A
license holder must provide mental health targeted case management as described
by federal CCBHC criteria and section 256B.0625, subdivision 20.
(b) An initial or
comprehensive evaluation under this section fulfills any requirement to perform
a standard diagnostic assessment for targeted case management.
Subd. 19. Community
needs assessment. (a) The
community needs assessment must be a collaborative document that reflects the
license holder's or applicant's engagement with current clients, other social
and medical services agencies, community groups, underserved populations, and
government agencies. The applicant or
license holder must document an outreach plan within the community needs
assessment to demonstrate how stakeholder feedback was solicited and reflected
in the plan.
(b) The applicant or
license holder must publicly post a draft community needs assessment on the
organization's website for 30 days and submit a summary of public comments and
recommendations from the comment period to the commissioner.
(c) In the draft
community needs assessment, the applicant or license holder must declare a
planned geographic service delivery area in which the CCBHC will be capable of
providing all nine required services. An
applicant must provide an analysis of how CCBHC status will lead to a
significant improvement in the availability and quality of the services. An existing license holder must include
analysis of which needs from prior needs assessments have been improved by the
operation of the CCBHC. A clinic that
has not made and demonstrated substantial progress in addressing the identified
needs must specify what changes will occur to address the lack of progress.
(d) The commissioner must
provide feedback and technical assistance if the community needs assessment
must be revised.
Subd. 20. Staffing
plan. Based on an accepted
community needs assessment, the applicant or license holder must complete a
staffing plan. The staffing plan must
include analysis of the extent to which identified staffing levels will be
capable of meeting the needs identified in the community needs assessment.
Subd. 21. Data
and evaluation. A provider
must submit documentation that establishes the ability of the clinic to
complete the required data collection as a CCBHC, as determined by the
commissioner. For an applicant that is
an existing provider, the commissioner must review and evaluate data submitted
related to claims, grants, and other reporting to ensure the data meets
reporting requirements.
Subd. 22. Cost
reporting. A provider must
submit a cost report on the forms and in the manner required in section
256B.0625, subdivision 5m.
Sec. 32. [245I.22]
ADULT REHABILITATIVE MENTAL HEALTH SERVICES.
Subdivision 1. Generally. Beginning January 1, 2028, a provider
of adult mental health rehabilitative services must be licensed under this
section and chapter 245A.
Subd. 2. Definitions. (a) For the purposes of this section,
the terms in this subdivision have the meanings given.
(b) "Adult mental
health rehabilitative services" or "ARMHS" has the meaning given
in section 245I.02, subdivision 33.
(c) "Basic living
skills" means rehabilitative interventions that instruct, assist, and
support the client with:
(1) interpersonal
communication skills;
(2) community resource
utilization and integration skills;
(3) crisis planning;
(4) relapse prevention
skills;
(5) health care
directives;
(6) budgeting and
shopping skills;
(7) healthy lifestyle
skills and practices;
(8) cooking and
nutrition skills;
(9) transportation
skills;
(10) mental illness
symptom management skills;
(11) household
management skills;
(12) employment-related
skills; and
(13) parenting skills.
(d)
"Community intervention" means a client's community assisting in the
client's rehabilitation, including consultation with relatives, guardians,
friends, employers, treatment providers, and other significant individuals. Community intervention is appropriate when
directed exclusively to the treatment of the client.
(e) "Medication
education services" means services provided individually or in groups that
focus on educating the client about mental illness and symptoms, the role and
effects of medications in treating symptoms of mental illness, and the side
effects of medications. Medication
education services must be coordinated with, but must not duplicate, medication
management services. Medication
education services must be provided by physicians, advanced practice registered
nurses, pharmacists, physician assistants, or registered nurses.
(f) "Transition to
community living services" means services that maintain continuity of
contact between the ARMHS provider and the client and facilitate discharge from
a hospital, residential treatment program, board and lodging facility, or nursing
home. Transition to community living
services must not be used to provide other areas of adult rehabilitative mental
health services.
Subd. 3. Service
components. An ARMHS provider
must be capable of providing:
(1) basic living skills;
(2) medication education
services;
(3) community intervention; and
(4) transition to
community living services.
Subd. 4. Provider
requirements. An ARMHS
license holder must be enrolled with medical assistance and comply with
standards in section 256B.0623.
Subd. 5. Qualifications. ARMHS must be provided by:
(1) a mental health
professional qualified under section 245I.04, subdivision 2;
(2) a certified
rehabilitation specialist qualified under section 245I.04, subdivision 8;
(3) a clinical trainee
qualified under section 245I.04, subdivision 6;
(4) a behavioral health
practitioner qualified under section 245I.04, subdivision 4;
(5) a mental health
certified peer specialist qualified under section 245I.04, subdivision 12; or
(6) a mental health
rehabilitation worker qualified under section 245I.04, subdivision 14.
Subd. 6. Service
planning. (a) An ARMHS
provider must complete a written functional assessment according to section
245I.10, subdivision 9, for each client.
(b) When an ARMHS
provider completes a written functional assessment, the provider must also
complete a level of care assessment, as defined in section 245I.02, subdivision
19, for the client.
Subd. 7. Group
modality. ARMHS may be
provided in group settings if appropriate to each participating client's needs
and treatment plan. A group is defined
as two to ten clients, at least one of whom is concurrently receiving ARMHS. The service and group must be specified in
the client's individual treatment plan.
Subd. 4. Required intensive residential treatment services. (a) On a daily basis, the license holder must follow a client's treatment plan to provide intensive residential treatment services to the client to improve the client's functioning.
(b) The license holder must offer and have the capacity to directly provide the following treatment services to each client:
(1) daily rehabilitative mental health services;
(2) crisis prevention planning to assist a client with:
(i) identifying and addressing patterns in the client's history and experience of the client's mental illness; and
(ii) developing crisis prevention strategies that include de-escalation strategies that have been effective for the client in the past;
(3) health services and administering medication;
(4) co-occurring substance use disorder treatment;
(5) engaging the client's family and other natural supports in the client's treatment and educating the client's family and other natural supports to strengthen the client's social and family relationships; and
(6) making referrals for the client to other service providers in the community and supporting the client's transition from intensive residential treatment services to another setting.
(c) The license holder must include Illness Management and Recovery (IMR), Enhanced Illness Management and Recovery (E-IMR), or other similar interventions in the license holder's programming as approved by the commissioner.
Sec. 34. Minnesota Statutes 2024, section 245I.23, subdivision 5, is amended to read:
Subd. 5. Required residential crisis stabilization services. (a) On a daily basis, the license holder must follow a client's individual crisis treatment plan to provide services to the client in residential crisis stabilization to improve the client's functioning.
(b) The license holder must offer and have the capacity to directly provide the following treatment services to the client:
(1) daily crisis stabilization services as described in section 256B.0624, subdivision 7;
(2) rehabilitative mental health services;
(3) health services and administering the client's medications; and
(4) making referrals for the client to other service providers in the community and supporting the client's transition from residential crisis stabilization to another setting.
Subd. 7. Intensive residential treatment services assessment and treatment planning. (a) Within 12 hours of a client's admission, the license holder must evaluate and document the client's immediate needs, including the client's:
(1) health and safety, including the client's need for crisis assistance;
(2) responsibilities for children, family and other natural supports, and employers; and
(3) housing and legal issues.
(b) Within 24 hours of the client's admission, the license holder must complete an initial treatment plan for the client. The license holder must:
(1) base the client's initial treatment plan on the client's referral information and an assessment of the client's immediate needs;
(2) consider crisis assistance strategies that have been effective for the client in the past;
(3) identify the client's initial treatment goals, measurable treatment objectives, and specific interventions, and the frequency of interventions, that the license holder will use to help the client engage in treatment;
(4) identify the participants involved in the client's treatment planning. The client must be a participant; and
(5) ensure that a treatment supervisor approves of the client's initial treatment plan if a behavioral health practitioner or clinical trainee completes the client's treatment plan, notwithstanding section 245I.08, subdivision 3.
(c) According to section 245A.65, subdivision 2, paragraph (b), the license holder must complete an individual abuse prevention plan as part of a client's initial treatment plan.
(d) Within five days of the client's admission and again within 60 days after the client's admission, the license holder must complete a level of care assessment of the client. If the license holder determines that a client does not need a medically monitored level of service, a treatment supervisor must document how the client's admission to and continued services in intensive residential treatment services are medically necessary for the client.
(e) Within ten days of a client's admission, the license holder must complete or review and update the client's standard diagnostic assessment.
(f) Within ten days of a client's admission, the license holder must complete the client's individual treatment plan, notwithstanding section 245I.10, subdivision 8. Within 40 days after the client's admission and again within 70 days after the client's admission, the license holder must update the client's individual treatment plan. The license holder must focus the client's treatment planning on preparing the client for a successful transition from intensive residential treatment services to another setting. The individual treatment plan must be based on the client's diagnostic assessment and functional assessment and must contain, at a minimum, identified goals according to subdivision 4, paragraph (b), clauses (1) to (3), or subdivision 5, paragraph (b), clause (1), as applicable. In addition to the required elements of an individual treatment plan under section 245I.10, subdivision 8, the license holder must identify the following information in the client's individual treatment plan: (1) the client's referrals and resources for the client's health and safety; and (2) the staff persons who are responsible for following up with the client's referrals and resources. If the client does not receive a referral or resource that the client needs, the license holder must document the reason that the license holder did not make the referral or did not connect the client to a particular resource. The license holder is responsible for determining whether additional follow-up is required on behalf of the client.
(h) For a client with a current substance use disorder diagnosis and for a client whose substance use disorder screening in the client's standard diagnostic assessment indicates the possibility that the client has a substance use disorder, the license holder must complete a written assessment of the client's substance use within 30 days of the client's admission. In the substance use assessment, the license holder must: (1) evaluate the client's history of substance use, relapses, and hospitalizations related to substance use; (2) assess the effects of the client's substance use on the client's relationships including with family member and others; (3) identify financial problems, health issues, housing instability, and unemployment; (4) assess the client's legal problems, past and pending incarceration, violence, and victimization; and (5) evaluate the client's suicide attempts, noncompliance with taking prescribed medications, and noncompliance with psychosocial treatment.
(i) On a weekly basis, a
mental health professional or certified rehabilitation specialist must review
each client's treatment plan and individual abuse prevention plan. The license holder must document in the
client's file each weekly review of the client's treatment plan and individual
abuse prevention plan. An individual
treatment plan must be updated based on new information gathered about the
client's conditions, the client's level of participation, and whether
identified interventions have had the intended effect.
Sec. 36. Minnesota Statutes 2025 Supplement, section 245I.23, subdivision 10, is amended to read:
Subd. 10. Minimum treatment team staffing levels and ratios. (a) The license holder must maintain a treatment team staffing level sufficient to:
(1) provide continuous daily coverage of all shifts;
(2) follow each client's treatment plan and meet each client's needs as identified in the client's treatment plan;
(3) implement program requirements; and
(4) safely monitor and guide the activities of each client, taking into account the client's level of behavioral and psychiatric stability, cultural needs, and vulnerabilities.
(b) The license holder must ensure that treatment team members:
(1) remain awake during all work hours; and
(2) are available to monitor and guide the activities of each client whenever clients are present in the program.
(c) On each shift, the license holder must maintain a treatment team staffing ratio of at least one treatment team member to nine clients. If the license holder is serving nine or fewer clients, at least one treatment team member on the day shift must be a mental health professional, clinical trainee, certified rehabilitation specialist, or behavioral health practitioner. If the license holder is serving more than nine clients, at least one of the treatment team members working during both the day and evening shifts must be a mental health professional, clinical trainee, certified rehabilitation specialist, or behavioral health practitioner.
(d) If the license holder provides residential crisis stabilization to clients and is serving at least one client in residential crisis stabilization and more than four clients in residential crisis stabilization and intensive residential treatment services, the license holder must maintain a treatment team staffing ratio on each shift of at least two treatment team members during the client's first 48 hours in residential crisis stabilization.
(e) The license holder
must maintain documentation of a daily staffing schedule indicating the names
and credentials of individuals providing services, according to the record
retention requirements under section 245A.041.
Subd. 12. Daily documentation. (a) For each day that a client is present in the program, the license holder must provide a daily summary in the client's file that includes observations about the client's behavior and symptoms, including any critical incidents in which the client was involved, and documentation of a daily medically necessary rehabilitation service according to section 245I.08.
(b) For each day that a client is not present in the program, the license holder must document the reason for a client's absence in the client's file.
Sec. 38. Minnesota Statutes 2024, section 245I.23, subdivision 17, is amended to read:
Subd. 17. Admissions referrals and determinations. (a) The license holder must identify the information that the license holder needs to make a determination about a person's admission referral.
(b) The license holder must:
(1) always be available to receive referral information about a person seeking admission to the license holder's program;
(2) respond to the referral source within eight hours of receiving a referral and, within eight hours, communicate with the referral source about what information the license holder needs to make a determination concerning the person's admission;
(3) consider the license
holder's staffing ratio and the areas of treatment team members' competency
when determining whether the license holder is able to meet the needs of a
person seeking admission; and
(4) determine whether to
admit a person within 72 hours of receiving all necessary information from the
referral source.; and
(5) document client
eligibility according to subdivision 15, paragraph (a), and subdivision 16.
Sec. 39. [245I.24]
MOBILE CRISIS RESPONSE SERVICES.
Subdivision 1. Generally. (a) Mobile crisis response services
provide short-term, face-to-face mental health care in community settings for
adults and children experiencing crisis to help individuals maintain safety and
return to a baseline level of functioning.
(b) Beginning January 1,
2028, a provider of mobile crisis response services must be licensed under this
section and chapter 245A.
Subd. 2. Definitions. (a) For the purposes of this section,
the terms in this subdivision have the meanings given.
(b) "Crisis
assessment" means an immediate face-to-face assessment by a physician, a
mental health professional, or a qualified member of a crisis team, as
described in subdivision 5.
(c) "Crisis
intervention" means face-to-face, short-term intensive mental health
services initiated during a mental health crisis to help an individual cope
with immediate stressors, identify and utilize available resources and
strengths, engage in voluntary treatment, and begin to return to the
individual's baseline level of functioning.
(d)
"Crisis screening" means a screening of a client's potential mental
health crisis situation under subdivision 6.
(e) "Crisis
stabilization services" means individualized mental health services that
are designed to restore an individual to the individual's baseline level of
functioning. Crisis stabilization
services may be provided in the individual's home, the home of a family member
or friend of the individual, another community setting, a short-term supervised
licensed residential program, or an emergency department. Crisis stabilization services include family
psychoeducation.
(f) "Crisis
team" means the staff of a provider entity who are supervised and prepared
to provide mobile crisis services to a client in a potential mental health
crisis situation.
(g) "Mental health
crisis" is a behavioral, emotional, or psychiatric situation that, without
the provision of crisis response services, would likely result in significantly
reducing the individual's levels of functioning in primary activities of daily
living, the individual needing emergency services under section 62Q.55, or the
individual being placed in a more restrictive setting, including but not
limited to inpatient hospitalization.
(h) "Mobile crisis
services" means screening, assessment, intervention, and community-based
crisis stabilization services that are provided to an individual client. Mobile crisis services does not include
residential crisis stabilization.
Subd. 3. Eligibility. (a) An individual is eligible for crisis assessment services when the person has screened positive for a potential mental health crisis during a crisis screening.
(b) An individual is
eligible for crisis intervention services and crisis stabilization services
when the individual has been assessed during a crisis assessment to be
experiencing a mental health crisis.
Subd. 4. Policies,
procedures, and practices specified.
(a) In addition to the policies and procedures required by
section 245I.03, the license holder must establish, enforce, and maintain
policies and procedures to:
(1) ensure that crisis
screenings, crisis assessments, and crisis intervention services are available
24 hours per day, seven days per week;
(2) respond to a call
for services in a designated service area or according to a written agreement
with the local mental health authority for an adjacent area;
(3) have at least one
mental health professional on staff at all times and at least one additional
staff member capable of leading a crisis response in the community; and
(4) respond to clients
in the community according to the requirements and priorities in subdivision 6.
(b) The license holder
must provide the commissioner with information about the number of requests for
service, the number of clients that the provider serves face-to-face, and
client outcomes at least every six months, in a form and manner prescribed by
the commissioner.
(c) The license holder
must:
(1) provide support for
an individual's family and natural supports by enabling the individual's family
and natural supports to observe and participate in the individual's treatment,
assessments, and planning services;
(2) implement culturally
specific treatment identified in the crisis treatment plan that is meaningful
and appropriate, as determined by the individual's culture, beliefs, values,
and language;
(3)
respond to an individual's changing intervention and care needs, as identified
by the individual or a family member; and
(4) have the
communication tools and procedures to communicate and consult promptly about
crisis assessment and interventions as services are provided.
(d) The license holder
must coordinate services with:
(1) county emergency
services under section 245.469, community hospitals, ambulance services,
transportation services, social services, law enforcement, engagement services,
and mental health crisis services through regularly scheduled interagency
meetings;
(2) other behavioral
health service providers, county mental health authorities, or federally
recognized American Indian authorities, and others as necessary, with the
consent of the individual or parent or guardian;
(3) detoxification,
withdrawal management services, and medical stabilization services as needed;
and
(4) the individual's
case manager if the individual is receiving case management services.
Subd. 5. Crisis
assessment and intervention staff qualifications. (a) Crisis assessment and intervention
services must be provided by:
(1) a mental health
professional qualified under section 245I.04, subdivision 2;
(2) a clinical trainee
qualified under section 245I.04, subdivision 6;
(3) a behavioral health
practitioner qualified under section 245I.04, subdivision 4;
(4) a mental health
certified family peer specialist qualified under section 245I.04, subdivision
12; or
(5) a mental health
certified peer specialist qualified under section 245I.04, subdivision 10.
(b) When crisis
assessment and intervention services are provided to an individual in the
community, a mental health professional, clinical trainee, or mental health
practitioner must lead the response.
(c) For providers under
this section, the 30 hours of ongoing training required by section 245I.05,
subdivision 4, paragraph (b), must be specific to providing crisis services to
children and adults and include training about evidence-based practices identified
by the commissioner of health to reduce the individual's risk of suicide and
self‑injurious behavior.
(d) At least six hours
of the ongoing training under paragraph (c) must be specific to working with
families and providing crisis stabilization services to children and include
the following topics:
(1) developmental tasks
of childhood and adolescence;
(2) family
relationships;
(3) child and youth
engagement and motivation, including motivational interviewing;
(4) culturally
responsive care, including care for lesbian, gay, bisexual, transgender, and
queer youth;
(5)
positive behavior support;
(6) crisis intervention
for youth with developmental disabilities;
(7) child traumatic
stress, trauma-informed care, and trauma-focused cognitive behavioral therapy;
and
(8) youth substance use.
(e) Individual providers
must be experienced in crisis assessment, crisis intervention techniques,
treatment engagement strategies, working with families, and clinical decision
making under emergency conditions and have knowledge of local services and resources.
Subd. 6. Crisis
screening. (a) A license
holder may use the resources of emergency services under section 245.469 for
crisis screening. The crisis screening
must gather information, determine whether a mental health crisis situation
exists, identify parties involved, and determine an appropriate response.
(b) When conducting a
crisis screening, a provider must:
(1) employ
evidence-based practices to reduce the individual's risk of suicide and
self-injurious behavior;
(2) work with the
individual to establish a plan and time frame for responding to the
individual's mental health crisis, including responding to the individual's
immediate need for support by telephone or text message until the provider can
respond to the individual face-to-face;
(3) document significant
factors in determining whether the individual is experiencing a mental health
crisis, including prior requests for crisis services, an individual's recent
presentation at an emergency department, known calls to 911 or law enforcement,
or information from third parties with knowledge of an individual's history or
current needs;
(4) accept calls from
interested third parties and consider the additional needs or potential mental
health crises that the third parties may be experiencing;
(5) provide
psychoeducation, including reducing access to means of suicide, to relevant
third parties including family members or other persons living with the
individual; and
(6) consider other
available services to determine which service intervention would best address
the individual's needs and circumstances.
(c) For the purposes of
this section, the following situations indicate a positive screen for a
potential mental health crisis:
(1) the individual
presents at an emergency department or urgent care setting and the health care
team at that location requested crisis services; or
(2) a peace officer
requested crisis services for an individual who is potentially subject to
transportation under section 253B.051.
(d) The provider must
prioritize providing a face-to-face crisis assessment of the individual, unless
a provider documents specific evidence to show why the face-to-face assessment
was not possible, including insufficient staffing resources, concerns for staff
or individual safety, or other clinical factors.
(e) A
provider is not required to have direct contact with the individual to
determine that the individual is experiencing a potential mental health crisis. A mobile crisis provider may gather relevant
information about the individual from a third party to establish the
individual's need for services and potential safety factors.
Subd. 7. Crisis
assessment. (a) If an
individual screens positive for a potential mental health crisis, a crisis
assessment must be completed. A crisis
assessment must evaluate any immediate needs for which services are needed and,
as time permits, the individual's:
(1) current life
situation;
(2) health information,
including current medications;
(3) sources of stress;
(4) mental health
problems and symptoms;
(5) strengths;
(6) cultural
considerations;
(7) support network;
(8) vulnerabilities;
(9) current functioning;
and
(10) preferences, as
communicated directly by the individual or as communicated in a health care
directive as described in chapters 145C and 253B, the crisis treatment plan
described in subdivision 11, a crisis prevention plan, or a wellness recovery
action plan.
(b) A provider must
conduct a crisis assessment at the individual's location when appropriate and,
when not appropriate, document the reasons.
(c) Whenever possible,
the assessor must attempt to include input from the individual, the
individual's family, and other natural supports to assess whether a crisis
exists.
(d) A crisis assessment
must include a determination of:
(1) whether the
individual is willing to voluntarily engage in treatment;
(2) whether the
individual has an advance directive; and
(3) gathering the
individual's information and history from involved family or other natural
supports.
(e) If a team determines
that the individual does not need an acute level of care, the team must provide
services or service coordination if the individual has a co-occurring substance
use disorder and is otherwise eligible for services.
(f) If, after completing
a crisis assessment, a provider refers the individual to an intensive setting,
including an emergency department, inpatient hospitalization, or residential
crisis stabilization, one of the crisis team members who completed or conferred
about the individual's crisis assessment must immediately contact the referral
entity and
consult with the staff responsible for triage or
intake at the referral entity. During
the consultation, the crisis team member must convey key findings or concerns
that led to the individual's referral. Following
the consultation, the provider must also send written documentation to the
referral entity. The provider must
document if the individual or the individual's legal guardian signed releases
for health records or if an exception under section 144.293, subdivision 5,
exists.
Subd. 8. Crisis
intervention services. (a) If
the crisis assessment determines an individual needs mobile crisis intervention
services, the license holder must provide crisis intervention services promptly. As able during the intervention, at least two
members of the mobile crisis intervention team must confer directly or by
telephone about the crisis assessment, crisis treatment plan, and actions taken
and needed. At least one of the team
members must be providing face-to-face crisis intervention services. If providing crisis intervention services, a
clinical trainee or mental health practitioner must seek treatment supervision
as required in subdivision 10.
(b) If a provider
delivers crisis intervention services while the individual is absent, the
provider must document the reason for delivering services while the individual
is absent.
(c) The mobile crisis
intervention team must develop a crisis treatment plan according to subdivision
11.
(d) The mobile crisis
intervention team must document which crisis treatment plan goals and
objectives have been met and when no further crisis intervention services are
required.
(e) If the individual's
mental health crisis is stabilized, but the individual needs a referral to
other services, the team must provide referrals to these services. If the individual is unable to follow up on
the referral, the team must link the individual to the service and follow up to
ensure the individual is receiving the service.
Subd. 9. Crisis
stabilization services. (a)
Crisis stabilization services must be provided by qualified staff of a crisis
stabilization services provider entity, which must:
(1) develop a crisis
treatment plan that meets the criteria in subdivision 11;
(2) complete a
vulnerable adult determination in accordance with section 245A.65, subdivision
1a;
(3) deliver crisis
stabilization services according to the crisis treatment plan and include
face-to-face contact with the individual receiving services 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;
(4) if the provider
delivers crisis stabilization services while the individual is absent, document
the reason for delivering services while the individual is absent; and
(5) if the individual's
mental health crisis is stabilized and the individual does not have a health
care directive or psychiatric declaration, as defined in chapter 145C or
section 253B.03, subdivision 6d, offer to work with the individual to develop a
directive or declaration.
(b) A staff member
providing crisis stabilization services must be:
(1) a mental health
professional qualified under section 245I.04, subdivision 2;
(2) a certified
rehabilitation specialist qualified under section 245I.04, subdivision 8;
(3) a clinical trainee
qualified under section 245I.04, subdivision 6;
(4) a
behavioral health practitioner qualified under section 245I.04, subdivision 4;
(5) a mental health
certified family peer specialist qualified under section 245I.04, subdivision
12;
(6) a mental health
certified peer specialist qualified under section 245I.04, subdivision 10; or
(7) a mental health
rehabilitation worker qualified under section 245I.04, subdivision 14.
(c) For providers under
this section, the 30 hours of ongoing training required in section 245I.05,
subdivision 4, paragraph (b), must be specific to providing crisis services to
children and adults and include training about evidence-based practices identified
by the commissioner of health to reduce an individual's risk of suicide and
self-injurious behavior.
(d) For providers who
deliver care to children 21 years of age or younger, at least six hours of the
ongoing training under this subdivision must be specific to working with
families and providing crisis stabilization services to children, including the
following topics:
(1) developmental tasks
of childhood and adolescence;
(2) family relationships;
(3) child and youth
engagement and motivation, including motivational interviewing;
(4) culturally responsive
care, including care for lesbian, gay, bisexual, transgender, and queer youth;
(5) positive behavior
support;
(6) crisis intervention
for youth with developmental disabilities;
(7) child traumatic
stress, trauma-informed care, and trauma-focused cognitive behavioral therapy;
and
(8) youth substance use.
This paragraph does not apply to adult
residential crisis stabilization services providers licensed under section
245I.23 or providing services pursuant to section 256B.0624, subdivision 7a.
Subd. 10. Supervision. Clinical trainees and mental health
practitioners may provide crisis assessment and crisis intervention services if
the following treatment supervision requirements are met:
(1) the license holder
must accept full responsibility for the services provided;
(2) a mental health
professional working for the license holder must be immediately available by
telephone or in person for treatment supervision;
(3) a mental health
professional must be consulted, in person or by telephone, during the first
three hours when a clinical trainee or mental health practitioner provides
crisis assessment or crisis intervention services; and
(4) a mental health
professional must:
(i) review and approve,
as defined in section 245I.02, subdivision 2, the tentative crisis assessment
and crisis treatment plan within 24 hours of first providing services to the
individual, notwithstanding section 245I.08, subdivision 3; and
(ii)
document the consultation required in clause (3).
Subd. 11. Crisis
treatment plan. (a) Within 24
hours of an individual's admission, the license holder must complete the
individual's crisis treatment plan. The
license holder must:
(1) base the individual's
crisis treatment plan on the individual's crisis assessment;
(2) consider crisis
assistance strategies that have been effective for the individual in the past;
(3) for a child, use a
child-centered, family-driven, and culturally appropriate planning process that
allows the child's parents and guardians to observe or participate in the
child's individual and family treatment services, assessment, and treatment planning;
(4) for an adult, use a
person-centered, culturally appropriate planning process that allows the
individual's family and other natural supports to observe or participate in
treatment services, assessment, and treatment planning;
(5) identify the
participants involved in the individual's treatment planning. The individual must be a participant if
possible;
(6) identify the
individual's initial treatment goals, measurable treatment objectives, and
specific interventions that the license holder will use to help the person
engage in treatment;
(7) include documentation
of referral to and scheduling of services, including specific providers where
applicable;
(8) ensure that the
individual or the individual's legal guardian approves under section 245I.02,
subdivision 2, of the individual's crisis treatment plan unless a court orders
the individual's treatment plan under chapter 253B. If the individual or the individual's legal
guardian disagrees with the crisis treatment plan, the license holder must
document in the client file the reasons why the individual disagrees with the
crisis treatment plan; and
(9) ensure that a
treatment supervisor approves, as defined in section 245I.02, subdivision 2, of
the individual's treatment plan within 24 hours of the individual's admission
if a mental health practitioner or clinical trainee completes the crisis treatment
plan, notwithstanding section 245I.08, subdivision 3.
(b) The provider entity
must provide the individual and the individual's legal guardian with a copy of
the crisis treatment plan.
Subd. 12. Application
requirements. In a licensing
application submitted under this section and section 245A.04, the applicant
must demonstrate that the applicant is:
(1) enrolled as a medical
assistance provider; and
(2) in compliance with
the provider type requirements under section 256B.0624, subdivision 4, as
determined by the commissioner.
Sec. 40. [245I.30]
CHILDREN'S THERAPEUTIC SERVICES AND SUPPORTS.
Subdivision 1. Generally. (a) "Children's therapeutic
services and supports" means a flexible package of community-based mental
health services for children who require varying therapeutic and rehabilitative
levels of intervention to treat a diagnosed mental illness. Interventions are delivered using various
treatment modalities and combinations of services designed to reach treatment
outcomes identified in the individual treatment plan. Children's therapeutic services and supports
include development and rehabilitative services that support a child's
developmental treatment needs.
(b)
Beginning January 1, 2028, a provider of children's therapeutic services and
supports must be licensed under this section and chapter 245A.
Subd. 2. Service
components. (a) A children's
therapeutic services and supports license holder must be capable of providing:
(1) individual and
family psychotherapy, psychotherapy for crises, and group psychotherapy;
(2) individual, family,
or group skills training; and
(3) crisis planning.
(b) Crisis planning that
meets the standards in section 245.4871, subdivision 9a, must be offered to
each client's family.
Subd. 3. Provider
requirements. A children's
therapeutic services and supports license holder must be enrolled with medical
assistance and comply with the requirements in section 256B.0943.
Subd. 4. Qualifications
of provider staff. Children's
therapeutic services and supports must be provided by:
(1) a mental health
professional qualified under section 245I.04, subdivision 2;
(2) a clinical trainee
qualified under section 245I.04, subdivision 6;
(3) a behavioral health
practitioner qualified under section 245I.04, subdivision 4;
(4) a mental health
certified family peer specialist qualified under section 245I.04, subdivision
12; or
(5) a mental health
behavioral aide qualified under section 245I.04, subdivision 16.
Subd. 5. Group
modality. Group skills
training may be provided to multiple clients who, because of the nature of the
clients' emotional, behavioral, or social dysfunction, can derive mutual
benefit from interaction in a group setting.
A group must consist of two to ten clients, at least one of whom is a
client and is concurrently receiving a service under this section. The service and group must be specified in
the client's individual treatment plan.
Sec. 41. [245I.31]
CHILDREN'S DAY TREATMENT.
Subdivision 1. Generally. (a) For the purposes of this section,
"children's day treatment program" means a site‑based structured
mental health program consisting of psychotherapy and individual or group
skills training provided by a team under the treatment supervision of a mental
health professional.
(b) A children's day
treatment program must be licensed for a specific location of operation and
must not be part of inpatient or residential treatment services.
(c) A children's day
treatment program must stabilize a client's mental health status while
developing and improving the client's independent living and socialization
skills. The goal of the day treatment
program must be to reduce or relieve the effects of mental illness and provide
training to enable the client to live in the community.
(d)
Beginning January 1, 2028, a provider of children's day services must be
licensed under this section and chapter 245A.
Subd. 2. Service
components. A children's day
treatment program must be capable of providing the services in section 245I.30,
subdivision 2.
Subd. 3. Provider
requirements. A children's
day treatment license holder must:
(1) be enrolled as a
provider with medical assistance;
(2) maintain a policy
regarding the use of restrictive procedures and meet the requirements of
section 245.8261;
(3) maintain a policy on
medications in accordance with section 245I.11, subdivision 6; and
(4) meet group modality
requirements in section 245I.30, subdivision 5.
Subd. 4. Qualifications of provider staff. Children's day treatment services must be provided by:
(1) a mental health
professional qualified under section 245I.04, subdivision 2;
(2) a clinical trainee
qualified under section 245I.04, subdivision 6; or
(3) a behavioral health
practitioner qualified under section 245I.04, subdivision 4.
Sec. 42. Minnesota Statutes 2024, section 256B.0623, subdivision 1, is amended to read:
Subdivision 1. Scope. Subject to federal approval, Medical
assistance covers medically necessary adult rehabilitative mental health
services when the services are provided by an entity meeting the standards
in this section licensed under section 245I.24. The provider entity must make reasonable and
good faith efforts to report individual client outcomes to the commissioner,
using instruments and protocols approved by the commissioner.
EFFECTIVE DATE. This
section is effective January 1, 2028.
Sec. 43. Minnesota Statutes 2024, section 256B.0623, subdivision 3, is amended to read:
Subd. 3. Eligibility. An eligible recipient is an individual who:
(1) is age 18 or older;
(2) is diagnosed with a medical condition, such as mental illness or traumatic brain injury, for which adult rehabilitative mental health services are needed;
(3) has substantial disability and functional impairment in three or more of the areas listed in section 245I.10, subdivision 9, paragraph (a), clause (4), so that self-sufficiency is markedly reduced; and
(4) has had a recent standard diagnostic assessment pursuant to section 245I.10, subdivision 6, by a qualified professional that documents adult rehabilitative mental health services are medically necessary to address identified disability and functional impairments and individual recipient goals.
EFFECTIVE
DATE. This section is
effective January 1, 2028.
Subd. 12. Additional
requirements. (a) Providers of
adult rehabilitative mental health services must comply with the requirements
relating to referrals for case management in section 245.467, subdivision 4.
(b) Adult rehabilitative
mental health services are provided for most recipients in the recipient's home
and community. Services may also be
provided at the home of a relative or significant other, job site, psychosocial
clubhouse, drop-in center, social setting, classroom, or other places in the
community. (a) Except for
"transition to community services," the place of service does not
include a regional treatment center, nursing home, residential treatment
facility licensed under Minnesota Rules, parts 9520.0500 to 9520.0670 (Rule
36), or section 245I.23, or an acute care hospital.
(c) Adult rehabilitative
mental health services may be provided in group settings if appropriate to each
participating recipient's needs and individual treatment plan. A group is defined as two to ten clients, at
least one of whom is a recipient, who is concurrently receiving a service which
is identified in this section. The
service and group must be specified in the recipient's individual treatment
plan. (b) No more than two
qualified staff may bill Medicaid for services provided to the same group of recipients. If two adult rehabilitative mental health
workers bill for recipients in the same group session, they must each bill for
different recipients.
(d) (c) Adult
rehabilitative mental health services are appropriate if provided to enable a
recipient to retain stability and functioning, when the recipient is at risk of
significant functional decompensation or requiring more restrictive service
settings without these services.
(e) Adult rehabilitative
mental health services instruct, assist, and support the recipient in areas
including: interpersonal communication
skills, community resource utilization and integration skills, crisis planning,
relapse prevention skills, health care directives, budgeting and shopping
skills, healthy lifestyle skills and practices, cooking and nutrition skills,
transportation skills, medication education and monitoring, mental illness
symptom management skills, household management skills, employment-related
skills, parenting skills, and transition to community living services.
(f) Community
intervention, including consultation with relatives, guardians, friends,
employers, treatment providers, and other significant individuals, is
appropriate when directed exclusively to the treatment of the client.
EFFECTIVE DATE. This
section is effective January 1, 2028.
Sec. 45. Minnesota Statutes 2024, section 256B.0624, subdivision 1, is amended to read:
Subdivision 1. Scope. (a) Subject to federal approval, Medical
assistance covers medically necessary crisis response services when the
services are provided according to the standards in this section 245I.24.
(b) Subject to federal
approval, Medical assistance covers medically necessary residential crisis
stabilization for adults when the services are provided by an entity licensed
under and meeting the standards in section 245I.23 or an entity with an adult
foster care license meeting the standards in this section subdivision
7a.
(c) The provider entity must make reasonable and good faith efforts to report individual client outcomes to the commissioner using instruments and protocols approved by the commissioner.
EFFECTIVE
DATE. This section is
effective January 1, 2028.
Subd. 4. Provider entity standards. (a) A mobile crisis provider must be:
(1) a county board operated entity;
(2) an Indian health services facility or facility owned and operated by a tribe or Tribal organization operating under United States Code, title 325, section 450f; or
(3) a provider entity that is under contract with the county board in the county where the potential crisis or emergency is occurring. To provide services under this section, the provider entity must directly provide the services; or if services are subcontracted, the provider entity must maintain responsibility for services and billing.
(b) A mobile crisis
provider must meet the following standards:
(1) ensure that crisis
screenings, crisis assessments, and crisis intervention services are available
to a recipient 24 hours a day, seven days a week;
(2) be able to respond
to a call for services in a designated service area or according to a written
agreement with the local mental health authority for an adjacent area;
(3) have at least one
mental health professional on staff at all times and at least one additional
staff member capable of leading a crisis response in the community; and
(4) provide the
commissioner with information about the number of requests for service, the
number of people that the provider serves face-to-face, outcomes, and the
protocols that the provider uses when deciding when to respond in the
community.
(c) A provider entity
that provides crisis stabilization services in a residential setting under
subdivision 7 is not required to meet the requirements of paragraphs (a) and
(b), but must meet all other requirements of this subdivision.
(d) A crisis services
provider must have the capacity to meet and carry out the standards in section
245I.011, subdivision 5, and the following standards:
(1) ensures that staff
persons provide support for a recipient's family and natural supports, by
enabling the recipient's family and natural supports to observe and participate
in the recipient's treatment, assessments, and planning services;
(2) has adequate
administrative ability to ensure availability of services;
(3) is able to ensure
that staff providing these services are skilled in the delivery of mental
health crisis response services to recipients;
(4) is able to ensure
that staff are implementing culturally specific treatment identified in the
crisis treatment plan that is meaningful and appropriate as determined by the
recipient's culture, beliefs, values, and language;
(5) is able to ensure
enough flexibility to respond to the changing intervention and care needs of a
recipient as identified by the recipient or family member during the service
partnership between the recipient and providers;
(6) is able to ensure
that staff have the communication tools and procedures to communicate and
consult promptly about crisis assessment and interventions as services occur;
(7) is
able to coordinate these services with county emergency services, community
hospitals, ambulance, transportation services, social services, law
enforcement, engagement services, and mental health crisis services through
regularly scheduled interagency meetings;
(8) is able to ensure
that services are coordinated with other behavioral health service providers,
county mental health authorities, or federally recognized American Indian
authorities and others as necessary, with the consent of the recipient or
parent or guardian. Services must also
be coordinated with the recipient's case manager if the recipient is receiving
case management services;
(9) is able to ensure
that crisis intervention services are provided in a manner consistent with
sections 245.461 to 245.486 and 245.487 to 245.4879;
(10) is able to
coordinate detoxification services for the recipient according to Minnesota
Rules, parts 9530.6605 to 9530.6655, or withdrawal management according to
chapter 245F;
(11) is able to
establish and maintain a quality assurance and evaluation plan to evaluate the
outcomes of services and recipient satisfaction; and
(12) is an enrolled
medical assistance provider.
(b) A mobile crisis provider must ensure services are provided consistent with section 245.469, subdivisions 1 and 2.
EFFECTIVE DATE. This
section is effective January 1, 2028.
Sec. 47. Minnesota Statutes 2024, section 256B.0624, is amended by adding a subdivision to read:
Subd. 7a. Residential
crisis stabilization services in adult foster care settings. (a) 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 setting
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.
(b) The commissioner
must establish a statewide per diem rate for crisis stabilization services
provided under this paragraph to medical assistance enrollees. 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 paragraph 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 use submitted cost reports to inform the
rate-setting process. The commissioner
must recalculate the statewide per diem every year.
(c) A provider under
this subdivision must follow the requirements under section 245I.24,
subdivisions 4, paragraphs (c) and (d), and 9.
EFFECTIVE DATE. This
section is effective January 1, 2028.
Sec. 48. Minnesota Statutes 2025 Supplement, section 256B.0625, subdivision 5m, is amended to read:
Subd. 5m. Certified
community behavioral health clinic services.
(a) Medical assistance covers services provided by a not-for-profit
certified community behavioral health clinic (CCBHC) that meets the
requirements of section 245.735, subdivision 3 245I.17.
(c) The commissioner shall ensure that the CCBHC daily bundled rate system for CCBHC payments under medical assistance meets the following requirements:
(1) the CCBHC daily bundled
rate shall be a provider-specific rate calculated for each CCBHC, based on the
daily cost of providing CCBHC services and the total annual allowable CCBHC
costs divided by the total annual number of CCBHC visits. For calculating the payment rate, total
annual visits include visits covered by medical assistance and visits not
covered by medical assistance. Allowable
costs include but are not limited to the salaries and benefits of medical
assistance providers; the cost of CCBHC services provided under section 245.735,
subdivision 3, paragraph (a), clauses (6) and (7) 245I.17, subdivision 4;
and other costs such as insurance or supplies needed to provide CCBHC services;
(2) payment shall be limited
to one payment per day per medical assistance enrollee when an eligible CCBHC
service is provided. A CCBHC visit is
eligible for reimbursement if at least one of the CCBHC services listed under
section 245.735, subdivision 3, paragraph (a), clause (6) 245I.17,
subdivision 4, is furnished to a medical assistance enrollee by a health
care practitioner or licensed agency employed by or under contract with a
CCBHC;
(3) initial CCBHC daily
bundled rates for newly certified licensed CCBHCs under section 245.735,
subdivision 3 245I.17, shall be established by the commissioner
using a provider-specific rate based on the newly certified licensed
CCBHC's audited historical cost report data adjusted for the expected cost of
delivering CCBHC services. Estimates are
subject to review by the commissioner and must include the expected cost of
providing the full scope of CCBHC services and the expected number of visits
for the rate period;
(4) the commissioner shall rebase CCBHC rates once every two years following the last rebasing and no less than 12 months following an initial rate or a rate change due to a change in the scope of services. For CCBHCs certified after September 30, 2020, and before January 1, 2021, the commissioner shall rebase rates according to this clause for services provided on or after January 1, 2024;
(5) the commissioner shall provide for a 60-day appeals process after notice of the results of the rebasing;
(6) an entity that receives a CCBHC daily bundled rate that overlaps with another federal Medicaid rate is not eligible for the CCBHC rate methodology;
(7) payments for CCBHC services to individuals enrolled in managed care shall be coordinated with the state's phase-out of CCBHC wrap payments. The commissioner shall complete the phase-out of CCBHC wrap payments within 60 days of the implementation of the CCBHC daily bundled rate system in the Medicaid Management Information System (MMIS), for CCBHCs reimbursed under this chapter, with a final settlement of payments due made payable to CCBHCs no later than 18 months thereafter;
(8) the CCBHC daily bundled rate for each CCBHC shall be updated by trending each provider-specific rate by the Medicare Economic Index for primary care services. This update shall occur each year in between rebasing periods determined by the commissioner in accordance with clause (4). CCBHCs must provide data on costs and visits to the state annually using the CCBHC cost report established by the commissioner; and
(9) a CCBHC may request a rate adjustment for changes in the CCBHC's scope of services when such changes are expected to result in an adjustment to the CCBHC payment rate by 2.5 percent or more. The CCBHC must provide the commissioner with information regarding the changes in the scope of services, including the estimated cost of providing the new or modified services and any projected increase or decrease in the number of visits resulting from the change. Estimated costs are subject to review by the commissioner. Rate adjustments for changes in scope shall occur no more than once per year in between rebasing periods per CCBHC and are effective on the date of the annual CCBHC rate update.
(e) The commissioner shall implement a quality incentive payment program for CCBHCs that meets the following requirements:
(1) a CCBHC shall receive a quality incentive payment upon meeting specific numeric thresholds for performance metrics established by the commissioner, in addition to payments for which the CCBHC is eligible under the CCBHC daily bundled rate system described in paragraph (c);
(2) a CCBHC must be certified
licensed and enrolled as a CCBHC for the entire measurement year to be
eligible for incentive payments;
(3) each CCBHC shall receive written notice of the criteria that must be met in order to receive quality incentive payments at least 90 days prior to the measurement year; and
(4) a CCBHC must provide the commissioner with data needed to determine incentive payment eligibility within six months following the measurement year. The commissioner shall notify CCBHC providers of their performance on the required measures and the incentive payment amount within 12 months following the measurement year.
(f) All claims to managed care plans for CCBHC services as provided under this section shall be submitted directly to, and paid by, the commissioner on the dates specified no later than January 1 of the following calendar year, if:
(1) one or more managed care plans does not comply with the federal requirement for payment of clean claims to CCBHCs, as defined in Code of Federal Regulations, title 42, section 447.45(b), and the managed care plan does not resolve the payment issue within 30 days of noncompliance; and
(2) the total amount of clean claims not paid in accordance with federal requirements by one or more managed care plans is 50 percent of, or greater than, the total CCBHC claims eligible for payment by managed care plans.
If the conditions in this paragraph are met between January 1 and June 30 of a calendar year, claims shall be submitted to and paid by the commissioner beginning on January 1 of the following year. If the conditions in this paragraph are met between July 1 and December 31 of a calendar year, claims shall be submitted to and paid by the commissioner beginning on July 1 of the following year.
(g) Peer services provided by
a CCBHC certified licensed under section 245.735 245I.17
are a covered service under medical assistance when a licensed mental health
professional or alcohol and drug counselor determines that peer services are
medically necessary. Eligibility under
this subdivision for peer services provided by a CCBHC supersede eligibility
standards under sections 256B.0615, 256B.0616, and 245G.07, subdivision 2a,
paragraph (b), clause (2).
EFFECTIVE
DATE. This section is
effective January 1, 2028.
Subd. 2. Covered
service components of children's therapeutic services and supports. (a) Subject to federal approval, medical
assistance covers medically necessary children's therapeutic services and
supports when the services are provided by an eligible provider entity certified
under and meeting the standards in this section licensed under section
245I.30 or children's day treatment services licensed under section 245I.31. The provider entity must make reasonable and
good faith efforts to report individual client outcomes to the commissioner,
using instruments and protocols approved by the commissioner.
(b) The covered service components of children's therapeutic services and supports are:
(1) patient and/or
family psychotherapy, family psychotherapy, psychotherapy for crisis, and group
psychotherapy;
(2) individual, family,
or group skills training provided by a mental health professional, clinical
trainee, or mental health practitioner;
(3) crisis planning;
(4) mental health
behavioral aide services;
(1) the services described in section 245I.30, subdivision 2, provided by providers licensed under section 245I.30 or 245I.31;
(2) administration of
standardized measures;
(5) (3) direction
of a mental health behavioral aide; and
(6) (4) mental
health service plan development; and.
(7) children's day
treatment.
(c) In delivering
services under this section, a licensed provider entity must ensure that
psychotherapy to address a child's underlying mental health disorder is
documented as part of the child's ongoing treatment. A provider must deliver or arrange for
medically necessary psychotherapy unless the child's parent or caregiver
chooses not to receive the psychotherapy or the provider determines that
psychotherapy is no longer medically necessary.
When a provider determines that psychotherapy is no longer medically
necessary, the provider must update required documentation, including but not
limited to the individual treatment plan, the child's medical record, or other
authorizations, to include the determination.
When a provider determines that a child needs psychotherapy but
psychotherapy cannot be delivered due to a shortage of licensed mental health
professionals in the child's community, the provider must document the lack of
access in the child's medical record.
(d) Medical assistance
covers service plan development before completion of a child's individual
treatment plan. Service plan development
consists of development, review, and revision of the individual treatment plan
by face‑to‑face or electronic communication, including time spent gathering
client history from other key figures or providers. The provider must document events, including
the time spent with the family and other key participants in the child's life
to approve the individual treatment plan. Service plan development is covered only if a
treatment plan is completed or for work already completed at the time the
client voluntarily chooses to disengage with services for the child. If it is determined upon review that a
treatment plan was not completed for the child, the commissioner shall recover
the payment for the service plan development.
(e)
Medical assistance covers time spent administering and reporting standardized
measures approved by the commissioner.
EFFECTIVE DATE. This
section is effective January 1, 2028.
Sec. 50. Minnesota Statutes 2025 Supplement, section 256B.0943, subdivision 3, is amended to read:
Subd. 3. Determination of client eligibility. (a) A client's 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 mental illness or, if the person is
between the ages of 18 and 21, whether the person has a mental illness; and
(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) Notwithstanding paragraph (a), 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) Children's
therapeutic services and supports include development and rehabilitative
services that support a child's developmental treatment needs.
Sec. 51. Minnesota Statutes 2025 Supplement, section 256B.0943, subdivision 12, is amended to read:
Subd. 12. Excluded services. (a) 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, unless one service is delivered to the child and the other service is delivered to the child's family or treatment team without the child present;
(3) children's therapeutic services and supports provided in violation of medical assistance policy in Minnesota Rules, part 9505.0220;
(4) 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) 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) 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;
(iii) prevention or education programs provided to the community; and
(iv) treatment for clients with primary diagnoses of alcohol or other drug abuse.
(b) Time spent on administrative tasks before and after providing direct services, including scheduling or maintaining clinical records, is included in CTSS payments and may not be separately billed as additional clock hours of service.
Sec. 52. Minnesota Statutes 2025 Supplement, section 260E.14, subdivision 1, is amended to read:
Subdivision 1. Facilities and schools. (a) The local welfare agency is the agency responsible for investigating allegations of maltreatment in child foster care, family child care, legally nonlicensed child care, and reports involving children served by an unlicensed personal care provider organization under section 256B.0659. Copies of findings related to personal care provider organizations under section 256B.0659 must be forwarded to the Department of Human Services provider enrollment.
(b) The Department of Human Services is the agency responsible for screening and investigating allegations of maltreatment in juvenile correctional facilities listed under section 241.021 located in the local welfare agency's county and in facilities licensed or certified under chapters 245A and 245D.
(c) The Department of Health is the agency responsible for screening and investigating allegations of maltreatment in facilities licensed under sections 144.50 to 144.58 and 144A.43 to 144A.482 or chapter 144H.
(d) The Department of Education is the agency responsible for screening and investigating allegations of maltreatment in a school as defined in section 120A.05, subdivisions 9, 11, and 13, and chapter 124E. The Department of Education's responsibility to screen and investigate includes allegations of maltreatment involving students 18 through 21 years of age, including students receiving special education services, up to and including graduation and the issuance of a secondary or high school diploma.
(e) The Department of Human Services is the agency responsible for screening and investigating allegations of maltreatment of minors in an EIDBI agency operating under sections 245A.142 and 256B.0949.
(f) A health or corrections agency receiving a report may request the local welfare agency to provide assistance pursuant to this section and sections 260E.20 and 260E.22.
(g) The Department of Children, Youth, and Families is the agency responsible for screening and investigating allegations of maltreatment in facilities or programs not listed in paragraph (a) that are licensed or certified under chapters 142B and 142C.
(h) The Department of Human Services is the agency responsible for screening and investigating allegations of maltreatment of minors for mobile crisis response services and children's therapeutic services and supports programs licensed under chapter 245I.
Sec. 53. Minnesota Statutes 2025 Supplement, section 626.5572, subdivision 13, is amended to read:
Subd. 13. Lead investigative agency. "Lead investigative agency" is the primary administrative agency responsible for investigating reports made under section 626.557.
(b) The Department of Human Services is the lead investigative agency for facilities or services licensed or required to be licensed as adult day care, adult foster care, community residential settings, programs for people with disabilities, EIDBI agencies, family adult day services, mental health programs licensed under chapter 245I, mental health clinics, substance use disorder programs, the Minnesota Sex Offender Program, or any other facility or service not listed in this subdivision that is licensed or required to be licensed by the Department of Human Services. The Department of Human Services is also the lead investigative agency for unlicensed EIDBI agencies under section 256B.0949. The Department of Human Services is the lead investigative agency for adult rehabilitative mental health services under section 245I.22, mobile crisis response services under section 245I.24, and certified community behavioral health clinics under section 245I.17.
(c) The county social service agency or its designee is the lead investigative agency for all other reports, including but not limited to reports involving vulnerable adults receiving services from a personal care provider organization under section 256B.0659.
EFFECTIVE DATE. This
section is effective January 1, 2028.
Sec. 54. REVISOR
INSTRUCTION.
The revisor of statutes
shall renumber Minnesota Statutes, section 245.735, subdivisions 5 and 6, as
Minnesota Statutes, section 245I.17, subdivisions 23 and 24.
Sec. 55. REPEALER.
(a) Minnesota Statutes
2024, sections 245.735, subdivisions 1a, 2a, 3a, 3b, 3c, 3d, 3e, 3f, 3g, 3h,
4a, 4b, 4c, 4e, 7, and 8; 245C.03, subdivision 7; 245I.20, subdivision 9;
245I.23, subdivision 23; 256B.0623, subdivisions 2, 4, 5, 6, and 9; 256B.0624,
subdivisions 2, 3, 4a, 5, 6, 6a, 6b, 7, 8, 9, and 11; and 256B.0943,
subdivisions 4, 5, 5a, 6, 7, and 11, are repealed.
(b) Minnesota Statutes
2025 Supplement, sections 245.735, subdivisions 3 and 4d; and 256B.0943,
subdivisions 1 and 9, are repealed.
EFFECTIVE DATE. This
section is effective January 1, 2028.
ARTICLE 6
UNIFORM SERVICE STANDARDS CONFORMING CHANGES
Section 1. Minnesota Statutes 2024, section 13.46, subdivision 7, is amended to read:
Subd. 7. Mental health data. (a) Mental health data are private data on individuals and shall not be disclosed, except:
(1) pursuant to section 13.05, as determined by the responsible authority for the community mental health center, mental health division, or provider;
(2) pursuant to court order;
(4) to personnel of the welfare system working in the same program or providing services to the same individual or family to the extent necessary to coordinate services, provided that a health record may be disclosed only as provided under section 144.293;
(5) to a health care provider governed by sections 144.291 to 144.298, to the extent necessary to coordinate services; or
(6) with the consent of the client or patient.
(b) An agency of the welfare system may not require an individual to consent to the release of mental health data as a condition for receiving services or for reimbursing a community mental health center, mental health division of a county, or provider under contract to deliver mental health services.
(c) Notwithstanding any other law to the contrary, a community mental health center, mental health division of a county, or a mental health provider must disclose mental health data to a law enforcement agency if the law enforcement agency provides the name of a client or patient and communicates that the:
(1) client or patient is
currently involved in a mental health crisis as defined in section 256B.0624,
subdivision 2, paragraph (j) 245I.24, subdivision 2, paragraph (g),
to which the law enforcement agency has responded; and
(2) data is necessary to protect the health or safety of the client or patient or of another person.
The scope of disclosure under this paragraph is limited to the minimum necessary for law enforcement to safely respond to the mental health crisis. Disclosure under this paragraph may include the name and telephone number of the psychiatrist, psychologist, therapist, mental health professional, practitioner, or case manager of the client or patient, if known; and strategies to address the mental health crisis. A law enforcement agency that obtains mental health data under this paragraph shall maintain a record of the requestor, the provider of the data, and the client or patient name. Mental health data obtained by a law enforcement agency under this paragraph are private data on individuals and must not be used by the law enforcement agency for any other purpose. A law enforcement agency that obtains mental health data under this paragraph shall inform the subject of the data that mental health data was obtained.
(d) In the event of a request under paragraph (a), clause (6), a community mental health center, county mental health division, or provider must release mental health data to Criminal Mental Health Court personnel in advance of receiving a copy of a consent if the Criminal Mental Health Court personnel communicate that the:
(1) client or patient is a defendant in a criminal case pending in the district court;
(2) data being requested is limited to information that is necessary to assess whether the defendant is eligible for participation in the Criminal Mental Health Court; and
(3) client or patient has consented to the release of the mental health data and a copy of the consent will be provided to the community mental health center, county mental health division, or provider within 72 hours of the release of the data.
For purposes of this paragraph, "Criminal Mental Health Court" refers to a specialty criminal calendar of the Hennepin County District Court for defendants with mental illness and brain injury where a primary goal of the calendar is to assess the treatment needs of the defendants and to incorporate those treatment needs into voluntary
Sec. 2. Minnesota Statutes 2024, section 144.294, subdivision 2, is amended to read:
Subd. 2. Disclosure to law enforcement agency. Notwithstanding section 144.293, subdivisions 2 and 4, a provider must disclose health records relating to a patient's mental health to a law enforcement agency if the law enforcement agency provides the name of the patient and communicates that the:
(1) patient is currently
involved in a mental health crisis as defined in section 256B.0624,
subdivision 2, paragraph (j) 245I.24, subdivision 2, paragraph (g),
to which the law enforcement agency has responded; and
(2) disclosure of the records is necessary to protect the health or safety of the patient or of another person.
The scope of disclosure under this subdivision is limited to the minimum necessary for law enforcement to safely respond to the mental health crisis. The disclosure may include the name and telephone number of the psychiatrist, psychologist, therapist, mental health professional, practitioner, or case manager of the patient, if known; and strategies to address the mental health crisis. A law enforcement agency that obtains health records under this subdivision shall maintain a record of the requestor, the provider of the information, and the patient's name. Health records obtained by a law enforcement agency under this subdivision are private data on individuals as defined in section 13.02, subdivision 12, and must not be used by law enforcement for any other purpose. A law enforcement agency that obtains health records under this subdivision shall inform the patient that health records were obtained.
Sec. 3. Minnesota Statutes 2025 Supplement, section 245.4835, subdivision 2, is amended to read:
Subd. 2. Failure to maintain expenditures. (a) If a county does not comply with subdivision 1, the commissioner shall require the county to develop a corrective action plan according to a format and timeline established by the commissioner. If the commissioner determines that a county has not developed an acceptable corrective action plan within the required timeline, or that the county is not in compliance with an approved corrective action plan, the protections provided to that county under section 245.485 do not apply.
(b) The commissioner shall consider the following factors to determine whether to approve a county's corrective action plan:
(1) the degree to which a county is maximizing revenues for mental health services from noncounty sources;
(2) the degree to which a county is expanding use of alternative services that meet mental health needs, but do not count as mental health services within existing reporting systems. If approved by the commissioner, the alternative services must be included in the county's base as well as subsequent years. The commissioner's approval for alternative services must be based on the following criteria:
(i) the service must be provided to children or adults with mental illness;
(ii) the services must be based on an individual treatment plan or individual community support plan as defined in the Comprehensive Mental Health Act; and
(iii) the services must be
supervised by a mental health professional and provided by staff who meet the
staff qualifications defined in sections 256B.0943, subdivision 7 245I.30,
subdivision 4, and 256B.0623, subdivision 5 245I.22, subdivision
5.
Sec. 4. Minnesota Statutes 2025 Supplement, section 245.4871, subdivision 4, is amended to read:
Subd. 4. Case management service provider. (a) "Case management service provider" means a case manager or case manager associate employed by the county or other entity authorized by the county board to provide case management services specified in subdivision 3 for the child with serious mental illness and the child's family.
(b) A case manager must:
(1) have experience and training in working with children;
(2) be a mental health practitioner under section 245I.04, subdivision 4, or have at least a bachelor's degree in one of the behavioral sciences or a related field including, but not limited to, social work, psychology, or nursing from an accredited college or university or meet the requirements of paragraph (d);
(3) have experience and training in identifying and assessing a wide range of children's needs;
(4) be knowledgeable about local community resources and how to use those resources for the benefit of children and their families; and
(5) meet the supervision and continuing education requirements of paragraphs (e), (f), and (g), as applicable.
(c) A case manager may be a member of any professional discipline that is part of the local system of care for children established by the county board.
(d) A case manager who is not a mental health practitioner and does not have a bachelor's degree or who has a bachelor's degree that is not in one of the behavioral sciences or related fields must meet one of the requirements in clauses (1) to (5):
(1) have three or four years of experience as a case manager associate;
(2) be a registered nurse without a bachelor's degree who has a combination of specialized training in psychiatry and work experience consisting of community interaction and involvement or community discharge planning in a mental health setting totaling three years;
(3) be a person who qualified as a case manager under the 1998 Department of Human Services waiver provision and meets the continuing education, supervision, and mentoring requirements in this section;
(4) prior to direct service delivery, complete at least 80 hours of specific training on the characteristics and needs of children with serious mental illness that is consistent with national practices standards; or
(5) prior to direct service delivery, demonstrate competency in practice and knowledge of the characteristics and needs of children with serious mental illness, consistent with national practices standards.
(e) A case manager with at least 2,000 hours of supervised experience in the delivery of mental health services to children must receive regular ongoing supervision and clinical supervision totaling 38 hours per year, of which at least one hour per month must be clinical supervision regarding individual service delivery with a case management supervisor. The other 26 hours of supervision may be provided by a case manager with two years of experience. Group supervision may not constitute more than one-half of the required supervision hours.
(1) begin 40 hours of training approved by the commissioner of human services in case management skills and in the characteristics and needs of children with serious mental illness before beginning to provide case management services; and
(2) receive clinical supervision regarding individual service delivery from a mental health professional at least one hour each week until the requirement of 2,000 hours of experience is met.
(g) A case manager who is not licensed, registered, or certified by a health-related licensing board must receive 30 hours of continuing education and training in serious mental illness and mental health services every two years.
(h) Clinical supervision must be documented in the child's record. When the case manager is not a mental health professional, the county board must provide or contract for needed clinical supervision.
(i) The county board must ensure that the case manager has the freedom to access and coordinate the services within the local system of care that are needed by the child.
(j) A case manager associate (CMA) must:
(1) work under the direction of a case manager or case management supervisor;
(2) be at least 21 years of age;
(3) have at least a high school diploma or its equivalent; and
(4) meet one of the following criteria:
(i) have an associate of arts degree in one of the behavioral sciences or human services;
(ii) be a registered nurse without a bachelor's degree;
(iii) have three years of life experience as a primary caregiver to a child with serious mental illness as defined in subdivision 6 within the previous ten years;
(iv) have 6,000 hours work experience as a nondegreed state hospital technician; or
(v) have 6,000 hours of
supervised work experience in the delivery of mental health services to
children with mental illness; hours worked as a mental health behavioral aide I
or II under section 256B.0943, subdivision 7 245I.30, subdivision 4,,
may count toward the 6,000 hours of supervised work experience.
Individuals meeting one of the criteria in items (i) to (iv) may qualify as a case manager after four years of supervised work experience as a case manager associate. Individuals meeting the criteria in item (v) may qualify as a case manager after three years of supervised experience as a case manager associate.
(k) Case manager associates must meet the following supervision, mentoring, and continuing education requirements:
(1) have 40 hours of preservice training described under paragraph (f), clause (1);
(2) receive at least 40 hours of continuing education
in serious mental illness and mental health service annually; and
(3) receive at least five hours of mentoring per week from a case management mentor. A "case management mentor" means a qualified, practicing case manager or case management supervisor who teaches or advises and provides intensive training and clinical supervision to one or more case manager associates. Mentoring may occur while providing direct services to consumers in the office or in the field and may be provided to individuals or groups of case manager associates. At least two mentoring hours per week must be individual and face-to-face.
(l) A case management supervisor must meet the criteria for a mental health professional as specified in subdivision 27.
(m) An immigrant who does not have the qualifications specified in this subdivision may provide case management services to child immigrants with serious mental illness of the same ethnic group as the immigrant if the person:
(1) is currently enrolled in and is actively pursuing credits toward the completion of a bachelor's degree in one of the behavioral sciences or related fields at an accredited college or university;
(2) completes 40 hours of training as specified in this subdivision; and
(3) receives clinical supervision at least once a week until the requirements of obtaining a bachelor's degree and 2,000 hours of supervised experience are met.
Sec. 5. Minnesota Statutes 2024, section 245.4882, subdivision 6, is amended to read:
Subd. 6. Crisis admissions and stabilization. (a) A child may be referred for residential treatment services under this section for the purpose of crisis stabilization by:
(1) a mental health professional as defined in section 245I.04, subdivision 2;
(2) a physician licensed under chapter 147 who is assessing a child in an emergency department; or
(3) a member of a mobile
crisis team who meets the qualifications under section 256B.0624,
subdivision 5 245I.24, subdivision 5.
(b) A provider making a referral under paragraph (a) must conduct an assessment of the child's mental health needs and make a determination that the child is experiencing a mental health crisis and is in need of residential treatment services under this section.
(c) A child may receive services under this subdivision for up to 30 days and must be subject to the screening and admissions criteria and processes under section 245.4885 thereafter.
Sec. 6. Minnesota Statutes 2025 Supplement, section 245.735, subdivision 4d, is amended to read:
Subd. 4d. Requirements for integrated treatment plans. (a) An integrated treatment plan must be completed within 60 calendar days following the preliminary screening and risk assessment and updated no less frequently than every six months or when the client's circumstances change.
(b) Only a mental health professional may complete an integrated treatment plan. The mental health professional must consult with an alcohol and drug counselor when substance use disorder services are deemed clinically appropriate. An alcohol and drug counselor may approve the integrated treatment plan. The integrated treatment plan must be developed through a shared decision-making process with the client, the client's support system if the client chooses, or, for children, with the family or caregivers.
(1) use the ASAM 6 dimensional framework; and
(2) incorporate prevention, medical and behavioral health needs, and service delivery.
(d) The psychiatric evaluation and management service fulfills requirements for the integrated treatment plan when a client of a CCBHC is receiving exclusively psychiatric evaluation and management services. The CCBHC must complete an integrated treatment plan within 60 calendar days of a client's referral for additional CCBHC services.
(e) Notwithstanding any law to the contrary, an integrated treatment plan developed by a CCBHC that meets the requirements of this subdivision satisfies the requirements in:
(1) section 245G.06, subdivision 1;
(2) section 245G.09,
subdivision 3, paragraph (a), clause (6); and
(3) section 245I.10,
subdivisions 7 and 8; and.
(4) section 256B.0943,
subdivision 6, paragraph (b), clause (2).
Sec. 7. Minnesota Statutes 2024, section 245A.26, subdivision 3, is amended to read:
Subd. 3. Eligibility
for services. An individual is
eligible for children's residential crisis stabilization services if the
individual is under 21 years of age and meets the eligibility criteria for
crisis services under section 256B.0624, subdivision 3 245I.24,
subdivision 3.
Sec. 8. Minnesota Statutes 2024, section 245A.26, subdivision 4, is amended to read:
Subd. 4. Required services; providers. (a) A license holder providing residential crisis stabilization services must continually follow a client's individual crisis treatment plan to improve the client's functioning.
(b) The license holder must offer and have the capacity to directly provide the following treatment services to a client:
(1) crisis stabilization
services as described in section 256B.0624, subdivision 7 245I.24,
subdivision 9;
(2) mental health services as specified in the client's individual crisis treatment plan, according to the client's treatment needs;
(3) health services and medication administration, if applicable; and
(4) referrals for the client to community-based treatment providers and support services for the client's transition from residential crisis stabilization to another treatment setting.
(c) Children's residential
crisis stabilization services must be provided by a qualified staff person
listed in section 256B.0624, subdivision 8 245I.24, subdivision 9,
paragraph (b), according to the scope of practice for the individual staff
person's position.
Subd. 5. Assessment and treatment planning. (a) Within 12 hours of a client's admission for residential crisis stabilization, the license holder must assess the client and document the client's immediate needs, including the client's:
(1) health and safety, including the need for crisis assistance;
(2) need for connection to family and other natural supports;
(3) if applicable, housing and legal issues; and
(4) if applicable, responsibilities for children, family, and other natural supports, and employers.
(b) Within 24 hours of a
client's admission for residential crisis stabilization, the license holder
must complete a crisis treatment plan for the client, according to the
requirements for a crisis treatment plan under section 256B.0624,
subdivision 11 245I.24, subdivision 11. The license holder must base the client's
crisis treatment plan on the client's referral information and the assessment
of the client's immediate needs under paragraph (a). A mental health professional or a clinical
trainee under the supervision of a mental health professional must complete the
crisis treatment plan. A crisis
treatment plan completed by a clinical trainee must contain documentation of
approval, as defined in section 245I.02, subdivision 2, by a mental health
professional within five business days of initial completion by the clinical
trainee.
(c) A mental health professional must review a client's crisis treatment plan each week and document the weekly reviews in the client's client file.
(d) For a client receiving children's residential crisis stabilization services who is 18 years of age or older, the license holder must complete an individual abuse prevention plan for the client, pursuant to section 245A.65, subdivision 2, as part of the client's crisis treatment plan.
Sec. 10. Minnesota Statutes 2024, section 245C.10, subdivision 8, is amended to read:
Subd. 8. Children's
therapeutic services and supports providers.
The commissioner shall recover the cost of background studies
required under section 245C.03, subdivision 7, for the purposes of children's
therapeutic services and supports under section 256B.0943 245I.30,
through a fee of no more than $44 per study charged to the license holder. The fees collected under this subdivision are
appropriated to the commissioner for the purpose of conducting background
studies.
Sec. 11. Minnesota Statutes 2024, section 245I.23, subdivision 5, is amended to read:
Subd. 5. Required residential crisis stabilization services. (a) On a daily basis, the license holder must follow a client's individual crisis treatment plan to provide services to the client in residential crisis stabilization to improve the client's functioning.
(b) The license holder must offer and have the capacity to directly provide the following treatment services to the client:
(1) crisis stabilization
services as described in section 256B.0624, subdivision 7 245I.24,
subdivision 9;
(2) rehabilitative mental health services;
(4) making referrals for the client to other service providers in the community and supporting the client's transition from residential crisis stabilization to another setting.
Sec. 12. Minnesota Statutes 2024, section 245I.23, subdivision 8, is amended to read:
Subd. 8. Residential crisis stabilization assessment and treatment planning. (a) Within 12 hours of a client's admission, the license holder must evaluate the client and document the client's immediate needs, including the client's:
(1) health and safety, including the client's need for crisis assistance;
(2) responsibilities for children, family and other natural supports, and employers; and
(3) housing and legal issues.
(b) Within 24 hours of a
client's admission, the license holder must complete a crisis treatment plan
for the client under section 256B.0624, subdivision 11 245I.24,
subdivision 11. The license holder
must base the client's crisis treatment plan on the client's referral
information and an assessment of the client's immediate needs.
(c) Section 245A.65, subdivision 2, paragraph (b), requires the license holder to complete an individual abuse prevention plan for a client as part of the client's crisis treatment plan.
Sec. 13. Minnesota Statutes 2024, section 245I.23, subdivision 16, is amended to read:
Subd. 16. Residential
crisis stabilization services admission criteria. An eligible client for residential crisis
stabilization is an individual who is age 18 or older and meets the eligibility
criteria in section 256B.0624, subdivision 3 245I.24, subdivision 3.
Sec. 14. Minnesota Statutes 2024, section 256B.092, subdivision 14, is amended to read:
Subd. 14. Reduce avoidable behavioral crisis emergency room admissions, psychiatric inpatient hospitalizations, and commitments to institutions. (a) Persons receiving home and community-based services authorized under this section who have had two or more admissions within a calendar year to an emergency room, psychiatric unit, or institution must receive consultation from a mental health professional as defined in section 245.462, subdivision 18, or a behavioral professional as defined in the home and community-based services state plan within 30 days of discharge. The mental health professional or behavioral professional must:
(1) conduct a functional assessment of the crisis incident as defined in section 245D.02, subdivision 11, which led to the hospitalization with the goal of developing proactive strategies as well as necessary reactive strategies to reduce the likelihood of future avoidable hospitalizations due to a behavioral crisis;
(2) use the results of the
functional assessment to amend the support plan set forth in section 245D.02,
subdivision 4b, to address the potential need for additional staff training,
increased staffing, access to crisis mobility services, mental health services,
use of technology, and crisis stabilization services in section 256B.0624,
subdivision 7 245I.24, subdivision 9; and
(3) identify the need for additional consultation, testing, and mental health crisis intervention team services as defined in section 245D.02, subdivision 20, psychotropic medication use and monitoring under section 245D.051, and the frequency and duration of ongoing consultation.
Sec. 15. Minnesota Statutes 2024, section 256B.49, subdivision 25, is amended to read:
Subd. 25. Reduce avoidable behavioral crisis emergency room admissions, psychiatric inpatient hospitalizations, and commitments to institutions. (a) Persons receiving home and community-based services authorized under this section who have two or more admissions within a calendar year to an emergency room, psychiatric unit, or institution must receive consultation from a mental health professional as defined in section 245.462, subdivision 18, or a behavioral professional as defined in the home and community-based services state plan within 30 days of discharge. The mental health professional or behavioral professional must:
(1) conduct a functional assessment of the crisis incident as defined in section 245D.02, subdivision 11, which led to the hospitalization with the goal of developing proactive strategies as well as necessary reactive strategies to reduce the likelihood of future avoidable hospitalizations due to a behavioral crisis;
(2) use the results of the
functional assessment to amend the support plan in section 245D.02, subdivision
4b, to address the potential need for additional staff training, increased
staffing, access to crisis mobility services, mental health services, use of
technology, and crisis stabilization services in section 256B.0624,
subdivision 7 245I.24, subdivision 9; and
(3) identify the need for additional consultation, testing, mental health crisis intervention team services as defined in section 245D.02, subdivision 20, psychotropic medication use and monitoring under section 245D.051, and the frequency and duration of ongoing consultation.
(b) For the purposes of this subdivision, "institution" includes, but is not limited to, the Anoka-Metro Regional Treatment Center and the Minnesota Security Hospital.
Sec. 16. Minnesota Statutes 2025 Supplement, section 256L.03, subdivision 5, is amended to read:
Subd. 5. Cost-sharing. (a) Co-payments, coinsurance, and deductibles do not apply to children under the age of 21 and to American Indians as defined in Code of Federal Regulations, title 42, section 600.5.
(b) The commissioner must adjust co-payments, coinsurance, and deductibles for covered services in a manner sufficient to maintain the actuarial value of the benefit to 94 percent. The cost-sharing changes described in this paragraph do not apply to eligible recipients or services exempt from cost-sharing under state law. The cost-sharing changes described in this paragraph shall not be implemented prior to January 1, 2016.
(c) The cost-sharing changes authorized under paragraph (b) must satisfy the requirements for cost-sharing under the Basic Health Program as set forth in Code of Federal Regulations, title 42, sections 600.510 and 600.520.
(d) Cost-sharing for prescription drugs and related medical supplies to treat chronic disease must comply with the requirements of section 62Q.481.
(e) Co-payments, coinsurance, and deductibles do not apply to additional diagnostic services or testing that a health care provider determines an enrollee requires after a mammogram, as specified under section 62A.30, subdivision 5.
(f) Cost-sharing must not apply to drugs used for tobacco and nicotine cessation or to tobacco and nicotine cessation services covered under section 256B.0625, subdivision 68.
(h) Co-payments,
coinsurance, and deductibles do not apply to mobile crisis intervention or
crisis assessment as defined in section 256B.0624, subdivision 2 245I.24,
subdivision 2.
ARTICLE 7
AGING AND DISABILITY SERVICES
Section 1. Minnesota Statutes 2025 Supplement, section 144.0724, subdivision 11, is amended to read:
Subd. 11. Nursing facility level of care. (a) For purposes of medical assistance payment of long-term care services, a recipient must be determined, using assessments defined in subdivision 4, to meet one of the following nursing facility level of care criteria:
(1) the person requires formal clinical monitoring at least once per day;
(2) the person needs the assistance of another person or constant supervision to begin and complete at least four of the following activities of living: bathing, bed mobility, dressing, eating, grooming, toileting, transferring, and walking;
(3) the person needs the assistance of another person or constant supervision to begin and complete toileting, transferring, or positioning and the assistance cannot be scheduled;
(4) the person has significant difficulty with memory, using information, daily decision making, or behavioral needs that require intervention;
(5) the person has had a qualifying nursing facility stay of at least 90 days;
(6) the person meets the nursing facility level of care criteria determined 90 days after admission or on the first quarterly assessment after admission, whichever is later; or
(7) the person is determined
to be at risk for nursing facility admission or readmission through a
face-to-face long-term care consultation assessment as specified in section
256B.0911, subdivision 17 to 21, 23, 24, 27, or 28, by a county, Tribe, or
managed care organization under contract with the Department of Human Services. The person is considered at risk under this
clause if the person currently lives alone or will live alone or be homeless
without the person's current housing and also meets one of the following
criteria:
(i) the person has experienced a fall resulting in a fracture;
(ii) the person has been determined to be at risk of maltreatment or neglect, including self-neglect; or
(iii) the person has a sensory impairment that substantially impacts functional ability and maintenance of a community residence.
(b) The assessment used to establish medical assistance payment for nursing facility services must be the most recent assessment performed under subdivision 4, paragraph (b), that occurred no more than 90 calendar days before the effective date of medical assistance eligibility for payment of long-term care services. In no case shall medical assistance payment for long-term care services occur prior to the date of the determination of nursing facility level of care.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 2. Minnesota Statutes 2024, section 245D.12, is amended to read:
245D.12 INTEGRATED COMMUNITY SUPPORTS; SETTING CAPACITY REPORT.
Subdivision 1. Setting capacity report. (a) The license holder providing integrated community support, as defined in section 245D.03, subdivision 1, paragraph (c), clause (8), must submit a setting capacity report to the commissioner to ensure the identified location of service delivery meets the criteria of the home and community‑based service requirements as specified in section 256B.492.
(b) The license holder shall provide the setting capacity report on the forms and in the manner prescribed by the commissioner. The report must include:
(1) the address of the multifamily housing building where the license holder delivers integrated community supports and owns, leases, or has a direct or indirect financial relationship with the property owner;
(2) the total number of living units in the multifamily housing building described in clause (1) where integrated community supports are delivered;
(3) the total number of living units in the multifamily housing building described in clause (1), including the living units identified in clause (2);
(4) the total number of people who could reside in the living units in the multifamily housing building described in clause (2) and receive integrated community supports; and
(5) the percentage of living units that are controlled by the license holder in the multifamily housing building by dividing clause (2) by clause (3).
(c) Only one license holder may deliver integrated community supports at the address of the multifamily housing building.
Subd. 2. Licensure
moratorium. (a) Except as
permitted in this subdivision, the commissioner must not issue an initial
license under this chapter authorizing integrated community supports under
section 245D.03, subdivision 1, paragraph (c), clause (8), and must not approve
a license change adding integrated community supports to an existing license
under this chapter.
(b) The commissioner may
approve an exception to the moratorium only when the applicant or licensee
meets all requirements under subdivision 1, the request is not superseded by
temporary moratoriums under section 245A.03, subdivision 7a, and the applicant
submits documentation demonstrating compliance with:
(1) federal and state
home and community-based services requirements for provider-controlled
settings;
(2) the prohibition on
the use of Medicaid money for room and board under United States Code, title
42, section 1396n(c); and
(3) all licensing requirements applicable
to integrated community supports under this chapter.
(c) In
determining whether to approve an exception, the commissioner must consider
statewide and regional capacity for integrated community supports based on
needs determination processes under section 245A.03, subdivision 7, paragraph
(e).
(d) A determination under
this subdivision is final and not subject to appeal.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 3. Minnesota Statutes 2024, section 256.975, subdivision 7b, is amended to read:
Subd. 7b. Exemptions and emergency admissions. (a) Exemptions from the federal screening requirements outlined in subdivision 7a, paragraphs (b) and (c), are limited to:
(1) a person who, having entered an acute care facility from a certified nursing facility, is returning to a certified nursing facility; or
(2) a person transferring from one certified nursing facility in Minnesota to another certified nursing facility in Minnesota.
(b) Persons who are exempt from preadmission screening for purposes of level of care determination include:
(1) persons described in paragraph (a);
(2) an individual who has a
contractual right to have nursing facility care paid for indefinitely by the
Veterans Administration; and
(3) an individual enrolled
in a demonstration project under section 256B.69, subdivision 8, at the time of
application to a nursing facility; and.
(4) an individual
currently being served under the alternative care program or under a home and
community‑based services waiver authorized under section 1915(c) of the federal
Social Security Act.
(c) Persons admitted to a Medicaid-certified nursing facility from the community on an emergency basis as described in paragraph (d) or from an acute care facility on a nonworking day must be screened the first working day after admission.
(d) Emergency admission to a nursing facility prior to screening is permitted when all of the following conditions are met:
(1) a person is admitted from the community to a certified nursing or certified boarding care facility during Senior LinkAge Line nonworking hours;
(2) a physician, advanced practice registered nurse, or physician assistant has determined that delaying admission until preadmission screening is completed would adversely affect the person's health and safety;
(3) there is a recent precipitating event that precludes the client from living safely in the community, such as sustaining an injury, sudden onset of acute illness, or a caregiver's inability to continue to provide care;
(4) the attending physician, advanced practice registered nurse, or physician assistant has authorized the emergency placement and has documented the reason that the emergency placement is recommended; and
(5) the Senior LinkAge Line is contacted on the first working day following the emergency admission.
(f) A nursing facility must provide written information to all persons admitted regarding the person's right to request and receive long-term care consultation services as defined in section 256B.0911, subdivision 11. The information must be provided prior to the person's discharge from the facility and in a format specified by the commissioner.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 4. Minnesota Statutes 2025 Supplement, section 256B.0625, subdivision 17, is amended to read:
Subd. 17. Transportation costs. (a) "Nonemergency medical transportation service" means motor vehicle transportation provided by a public or private person that serves Minnesota health care program beneficiaries who do not require emergency ambulance service, as defined in section 144E.001, subdivision 3, to obtain covered medical services.
(b) For purposes of this subdivision, "rural urban commuting area" or "RUCA" means a census-tract based classification system under which a geographical area is determined to be urban, rural, or super rural. This paragraph expires July 1, 2026, for medical assistance fee-for-service and January 1, 2027, for prepaid medical assistance.
(c) Medical assistance covers medical transportation costs incurred solely for obtaining emergency medical care or transportation costs incurred by eligible persons in obtaining emergency or nonemergency medical care when paid directly to an ambulance company, nonemergency medical transportation company, or other recognized providers of transportation services. Medical transportation must be provided by:
(1) nonemergency medical transportation providers who meet the requirements of this subdivision;
(2) ambulances, as defined in section 144E.001, subdivision 2;
(3) taxicabs that meet the requirements of this subdivision;
(4) public transportation, within the meaning of "public transportation" as defined in section 174.22, subdivision 7; or
(5) not-for-hire vehicles, including volunteer drivers, as defined in
section 65B.472, subdivision 1, paragraph (p).
(d) Medical assistance
covers nonemergency medical transportation provided by nonemergency medical
transportation providers enrolled in the Minnesota health care programs. All nonemergency medical transportation
providers must comply with the operating standards for special transportation
service as defined in sections 174.29 to 174.30 and Minnesota Rules, chapter
8840, and all drivers must be individually enrolled with the commissioner and
reported on the claim as the individual who provided the service. All nonemergency medical transportation
providers shall bill for nonemergency medical transportation services in
accordance with Minnesota health care programs criteria. Publicly operated transit systems,
volunteers, and not-for-hire vehicles are exempt from the requirements outlined
in this paragraph. This paragraph
expires upon the effective date of paragraph (e).
(e) Effective January 1,
2027, or upon federal approval, whichever is later, medical assistance covers
nonemergency medical transportation provided by nonemergency medical
transportation providers enrolled in the Minnesota health care programs. All nonemergency medical transportation
providers must comply with the operating standards for special transportation
service as defined in sections 174.29 to 174.30 and Minnesota Rules,
chapter
8840, and all drivers must be individually enrolled with the commissioner and
reported on the claim as the individual who provided the service. All nonemergency medical transportation
providers shall bill for nonemergency medical transportation services in
accordance with Minnesota health care programs criteria and comply with the
requirements of section 256B.073. Publicly
operated transit systems, volunteers, and not-for-hire vehicles are exempt from
the requirements outlined in this paragraph.
(e) (f) An
organization may be terminated, denied, or suspended from enrollment if:
(1) the provider has not initiated background studies on the individuals specified in section 174.30, subdivision 10, paragraph (a), clauses (1) to (3); or
(2) the provider has initiated background studies on the individuals specified in section 174.30, subdivision 10, paragraph (a), clauses (1) to (3), and:
(i) the commissioner has sent the provider a notice that the individual has been disqualified under section 245C.14; and
(ii) the individual has not received a disqualification set-aside specific to the special transportation services provider under sections 245C.22 and 245C.23.
(f) (g) The
administrative agency of nonemergency medical transportation must:
(1) adhere to the policies defined by the commissioner;
(2) pay nonemergency medical transportation providers for services provided to Minnesota health care programs beneficiaries to obtain covered medical services;
(3) provide data monthly to the commissioner on appeals, complaints, no-shows, canceled trips, and number of trips by mode; and
(4) by July 1, 2016, in accordance with subdivision 18e, utilize a web-based single administrative structure assessment tool that meets the technical requirements established by the commissioner, reconciles trip information with claims being submitted by providers, and ensures prompt payment for nonemergency medical transportation services. This paragraph expires July 1, 2026, for medical assistance fee-for-service and January 1, 2027, for prepaid medical assistance.
(g) (h)
Effective July 1, 2026, for medical fee-for-service and January 1, 2027, for
prepaid medical assistance, the administrative agency of nonemergency medical
transportation must:
(1) adhere to the policies defined by the commissioner;
(2) pay nonemergency medical transportation providers for services provided to Minnesota health care program beneficiaries to obtain covered medical services; and
(3) provide data monthly to the commissioner on appeals, complaints, no-shows, canceled trips, and number of trips by mode.
(h) (i) Until
the commissioner implements the single administrative structure and delivery
system under subdivision 18e, clients shall obtain their level-of-service
certificate from the commissioner or an entity approved by the commissioner
that does not dispatch rides for clients using modes of transportation under
paragraph (n) (o), clauses (4), (5), (6), and (7). This paragraph expires July 1, 2026, for
medical assistance fee-for-service and January 1, 2027, for prepaid
medical assistance.
(i)
(j) (k)
Nonemergency medical transportation providers must take clients to the health
care provider using the most direct route, and must not exceed 30 miles for a
trip to a primary care provider or 60 miles for a trip to a specialty care
provider, unless the client receives authorization from the local agency. This paragraph expires July 1, 2026, for
medical assistance fee-for-service and January 1, 2027, for prepaid medical
assistance.
(k) (l)
Effective July 1, 2026, for medical assistance fee-for-service and January 1,
2027, for prepaid medical assistance, nonemergency medical transportation
providers must take clients to the health care provider using the most direct
route and must not exceed 30 miles for a trip to a primary care provider or 60
miles for a trip to a specialty care provider, unless the client receives
authorization from the administrator.
(l) (m)
Nonemergency medical transportation providers may not bill for separate base
rates for the continuation of a trip beyond the original destination. Nonemergency medical transportation providers
must maintain trip logs, which include pickup and drop-off times, signed by the
medical provider or client, whichever is deemed most appropriate, attesting to
mileage traveled to obtain covered medical services. Clients requesting client mileage
reimbursement must sign the trip log attesting mileage traveled to obtain
covered medical services.
(m) (n) The
administrative agency shall use the level of service process established by the
commissioner to determine the client's most appropriate mode of transportation. If public transit or a certified
transportation provider is not available to provide the appropriate service
mode for the client, the client may receive a onetime service upgrade.
(n) (o) The
covered modes of transportation are:
(1) client reimbursement, which includes client mileage reimbursement provided to clients who have their own transportation, or to family or an acquaintance who provides transportation to the client;
(2) volunteer transport, which includes transportation by volunteers using their own vehicle;
(3) unassisted transport, which includes transportation provided to a client by a taxicab or public transit. If a taxicab or public transit is not available, the client can receive transportation from another nonemergency medical transportation provider;
(4) assisted transport, which includes transport provided to clients who require assistance by a nonemergency medical transportation provider;
(5) lift-equipped/ramp transport, which includes transport provided to a client who is dependent on a device and requires a nonemergency medical transportation provider with a vehicle containing a lift or ramp;
(6) protected transport, which includes transport provided to a client who has received a prescreening that has deemed other forms of transportation inappropriate and who requires a provider: (i) with a protected vehicle that is not an ambulance or police car and has safety locks, a video recorder, and a transparent thermoplastic partition between the passenger and the vehicle driver; and (ii) who is certified as a protected transport provider; and
(o) (p) The
local agency shall be the single administrative agency and shall administer and
reimburse for modes defined in paragraph (n) (o) according to
paragraphs (r) (s) to (t) (u) when the commissioner
has developed, made available, and funded the web-based single administrative
structure, assessment tool, and level of need assessment under subdivision 18e. The local agency's financial obligation is
limited to funds provided by the state or federal government. This paragraph expires July 1, 2026, for medical
assistance fee-for-service and January 1, 2027, for prepaid medical assistance.
(p) (q) The
commissioner shall:
(1) verify that the mode and use of nonemergency medical transportation is appropriate;
(2) verify that the client is going to an approved medical appointment; and
(3) investigate all complaints and appeals.
(q) (r) The
administrative agency shall pay for the services provided in this subdivision
and seek reimbursement from the commissioner, if appropriate. As vendors of medical care, local agencies
are subject to the provisions in section 256B.041, the sanctions and monetary
recovery actions in section 256B.064, and Minnesota Rules, parts 9505.2160 to
9505.2245. This paragraph expires July
1, 2026, for medical assistance fee-for-service and January 1, 2027, for
prepaid medical assistance.
(r) (s)
Payments for nonemergency medical transportation must be paid based on the
client's assessed mode under paragraph (m) (n), not the type of
vehicle used to provide the service. The
medical assistance reimbursement rates for nonemergency medical transportation
services that are payable by or on behalf of the commissioner for nonemergency
medical transportation services are:
(1) $0.22 per mile for client reimbursement;
(2) up to 100 percent of the Internal Revenue Service business deduction rate for volunteer transport;
(3) equivalent to the standard fare for unassisted transport when provided by public transit, and $12.10 for the base rate and $1.43 per mile when provided by a nonemergency medical transportation provider;
(4) $14.30 for the base rate and $1.43 per mile for assisted transport;
(5) $19.80 for the base rate and $1.70 per mile for lift-equipped/ramp transport;
(6) $75 for the base rate and $2.40 per mile for protected transport; and
(7) $60 for the base rate and $2.40 per mile for stretcher transport, and $9 per trip for an additional attendant if deemed medically necessary. This paragraph expires July 1, 2026, for medical assistance fee-for-service and January 1, 2027, for prepaid medical assistance.
(s) (t)
Effective July 1, 2026, for medical assistance fee-for-service and January 1,
2027, for prepaid medical assistance, payments for nonemergency medical
transportation must be paid based on the client's assessed mode under paragraph
(m) (n), not the type of vehicle used to provide the service.
(t)(r) (s), clauses (1) to (7). The mileage rate for nonemergency medical
transportation services in areas defined under RUCA to be rural or super rural
areas is:
(1) for a trip equal to 17
miles or less, equal to 125 percent of the respective mileage rate in paragraph
(r) (s), clauses (1) to (7); and
(2) for a trip between 18
and 50 miles, equal to 112.5 percent of the respective mileage rate in
paragraph (r) (s), clauses (1) to (7). This paragraph expires July 1, 2026, for
medical assistance fee-for-service and January 1, 2027, for prepaid medical
assistance.
(u) (v) For
purposes of reimbursement rates for nonemergency medical transportation
services under paragraphs (r) (s) to (t) (u), the
zip code of the recipient's place of residence shall determine whether the
urban, rural, or super rural reimbursement rate applies. This paragraph expires July 1, 2026, for
medical assistance fee-for-service and January 1, 2027, for prepaid medical
assistance.
(v) (w) The
commissioner, when determining reimbursement rates for nonemergency medical
transportation, shall exempt all modes of transportation listed under paragraph
(n) (o) from Minnesota Rules, part 9505.0445, item R, subitem
(2).
(w) (x)
Effective for the first day of each calendar quarter in which the price of
gasoline as posted publicly by the United States Energy Information
Administration exceeds $3.00 per gallon, the commissioner shall adjust the rate
paid per mile in paragraph (r) (s) by one percent up or down for
every increase or decrease of ten cents for the price of gasoline. The increase or decrease must be calculated
using a base gasoline price of $3.00. The
percentage increase or decrease must be calculated using the average of the
most recently available price of all grades of gasoline for Minnesota as posted
publicly by the United States Energy Information Administration. This paragraph expires July 1, 2026, for
medical assistance fee-for-service and January 1, 2027, for prepaid medical
assistance.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 5. Minnesota Statutes 2024, section 256B.0625, subdivision 17b, is amended to read:
Subd. 17b. Documentation required. (a) As a condition for payment, nonemergency medical transportation providers must document each occurrence of a service provided to a recipient according to this subdivision. Providers must maintain records sufficient to distinguish individual trips with specific vehicles and drivers. The documentation may be collected and maintained using electronic systems or software or in paper form but must be made available and produced upon request. Program funds paid for transportation that is not documented according to this subdivision may be subject to recovery by the commissioner pursuant to section 256B.064.
(b) A nonemergency medical transportation provider must compile transportation trip records that are written in English and legible according to the standard of a reasonable person and that include each of the following elements:
(1) the recipient's name;
(2) the date or dates the service is provided, if different than the date the entry was made;
(3) either the printed name of the driver sufficient to distinguish the driver of service or the driver's provider number;
(4) the date and the signature of the driver attesting that the record accurately represents the services provided and the actual miles driven, and acknowledging that misreporting information that results in ineligible or excessive payments may result in civil or criminal action;
(6) the address, or the description if the address is not available, of both the origin and destination, and the mileage for the most direct route from the origin to the destination;
(7) the name or number of the mode of transportation in which the service is provided;
(8) the license plate number of the vehicle used to transport the recipient;
(9) the time of the recipient pickup;
(10) the time of the recipient drop-off;
(11) the odometer reading of the vehicle used to transport the recipient taken at the time of pickup;
(12) the odometer reading of the vehicle used to transport the recipient taken at the time of drop-off;
(13) the name of the extra attendant when an extra attendant is used to provide special transportation service; and
(14) the documentation indicating the method that was used to determine the most direct route.
(c) In determining whether the commissioner will seek recovery, the documentation requirements in this section apply retroactively to audit findings beginning January 1, 2020, and to all audit findings thereafter.
(d) Effective January 1,
2027, or upon federal approval, whichever is later, records that comply with
section 256B.073 may be used to meet the requirements of this subdivision if
all required elements are included in the record.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 6. Minnesota Statutes 2024, section 256B.073, subdivision 1, is amended to read:
Subdivision 1. Documentation;
establishment and operation. The
commissioner of human services shall establish implementation requirements
and standards for and maintain the requirements and standards for the
ongoing operation of electronic visit verification to comply with the 21st
Century Cures Act, Public Law 114-255. Within
available appropriations, the commissioner shall take steps to comply with the
electronic visit verification requirements in the 21st Century Cures Act,
Public Law 114-255.
Sec. 7. Minnesota Statutes 2024, section 256B.073, subdivision 2, is amended to read:
Subd. 2. Definitions. (a) For purposes of this section, the terms in this subdivision have the meanings given them.
(b) "Data
aggregator" means the entity designated by the commissioner to collect,
store, and transmit electronic visit verification data from providers and
third-party systems to the commissioner in accordance with the standards and
requirements established under this section.
(b)electronic documentation of the process required under
United States Code, title 42, section 1396b(l), and this section used to
electronically verify:
(1) type of service performed;
(2) individual receiving the service;
(3) date of the service;
(4) location of the service delivery;
(5) individual providing the service; and
(6) time the service begins and ends.
(d) "Electronic
visit verification data" means information collected through an electronic
visit verification system, including data elements required under United States
Code, title 42, section 1396b(l), and any additional data elements specified by
the commissioner under this section.
(c) (e) "Electronic
visit verification system" means a system that provides electronic
verification of services used to collect, verify, and transmit EVV data
to the commissioner or the commissioner's designated data aggregator that
complies with the 21st Century Cures Act, Public Law 114-255, and the
requirements of subdivision 3.
(f) "Electronic
visit verification vendor" means any entity that develops, provides, or
supports an electronic visit verification system, including the state-provided
vendor and any third-party vendor.
(g) "Financial
management services provider" means an entity enrolled with the
commissioner to provide financial management services under section 256B.85 or
other applicable law and responsible for fiscal, payroll, and reporting
functions on behalf of participant employers.
(h)
"Individual" means a person who receives services subject to
electronic visit verification under the medical assistance program.
(i) "Managed care
organization" means a public or private organization that contracts with
the commissioner under section 256B.69 or other applicable law to deliver
health care services to individuals eligible for medical assistance or MinnesotaCare.
(j) "Provider"
means an individual or organization that meets one or more of the following
conditions:
(1) is enrolled as a
Minnesota health care programs provider;
(2) provides services
through a managed care organization under contract with the commissioner under
section 256B.69;
(3) is a financial
management services provider; or
(4) is a participant
employer under section 256B.85, subdivision 7, or an employer of record
directing services under section 256B.49, subdivision 16.
(d) (k)
"Service" means one of the following:
(1) personal care assistance services as defined in section 256B.0625, subdivision 19a, and provided according to section 256B.0659;
(3) home health services
under section 256B.0625, subdivision 6a; or
(4) all unit-based
services delivered by a provider that is a provider type designated high-risk
by the commissioner based on the criteria and standards used to designate
Medicare providers in Code of Federal Regulations, title 42, section 424.518;
(5) unit-based services
that are designated high-risk by the commissioner; or
(4) (6) other
medical supplies and equipment or home and community-based services that are
required to be electronically verified by the 21st Century Cures Act, Public
Law 114-255.
(l) "State-provided
electronic visit verification system" means the electronic visit
verification system made available by the commissioner to providers at no cost
for services subject to federal electronic visit verification requirements.
(m) "Third-party
electronic visit verification system" means an electronic visit
verification system purchased or operated by a provider or vendor other than
the state-provided system designated by the commissioner.
(n) "Verification
method" means the electronic process used to capture and verify visit
information, including telephone, fixed visit verification devices, or mobile
applications, as approved by the commissioner.
(o) "Visit"
means a single occurrence of service delivery subject to electronic visit
verification.
(p) "Worker"
means an individual who provides personal care assistance services, community
first services and supports, home health services, consumer-directed community
supports, or other services identified by the commissioner as subject to electronic
visit verification.
Sec. 8. Minnesota Statutes 2024, section 256B.073, subdivision 3, is amended to read:
Subd. 3. Requirements. (a) In developing implementation
requirements for administering electronic visit verification, the
commissioner shall must ensure that the system and related
requirements:
(1) are minimally
administratively and financially burdensome to a provider reasonable
for providers;
(2) are minimally
burdensome support continued access to the services and
are designed to avoid disruption to service recipient and the least
disruptive to the service recipient in receiving and maintaining allowed
services delivery or receipt;
(3) consider existing best practices and use of electronic visit verification;
(4) are conducted according to all state and federal laws;
(5) are effective methods for preventing fraud when balanced against the requirements of clauses (1) and (2); and
(6) are consistent with the Department of Human Services' policies related to covered services, flexibility of service use, and quality assurance.
(b) The commissioner shall
must make training and guidance available to providers on the
electronic visit verification system requirements and system use.
(d) The commissioner shall
must make a state-selected electronic visit verification system
available to providers of services.
(e) The commissioner shall
must make available and publish on the agency website the name and
contact information for the vendor of the state-selected electronic visit
verification system and the other vendors that offer alternative electronic
visit verification systems. The
information provided must state that the state-selected electronic visit
verification system is offered at no cost to the provider of services and that
the provider may choose an alternative system that may be at a cost to the
provider.
(f) The commissioner may
establish implementation dates and implementation schedules for services or
system functions subject to electronic visit verification under this section,
including but not limited to the phased addition of new services, verification
methods, or technical requirements.
(g) The commissioner may waive the requirements of this section for any service component or setting when the application of electronic visit verification is contrary to paragraph (a).
Sec. 9. Minnesota Statutes 2024, section 256B.073, is amended by adding a subdivision to read:
Subd. 4a. Electronic
visit verification system options. (a)
A provider must use an electronic visit verification system that complies with
the requirements established by the commissioner. A provider may use either the state‑provided
system or a third-party system. All
systems used for compliance must provide data to the commissioner in the format
and frequency required by the commissioner.
(b) The commissioner
must make a state-provided electronic visit verification system available at no
cost to providers of services. The
commissioner must provide training on the system to all providers.
(c) The commissioner
must allow providers of services to utilize a third-party electronic visit
verification system that the commissioner determines meets the requirements of
this section.
(d) A provider using a
third-party electronic visit verification system that meets all technical
specifications and federal and state laws must:
(1) collect and submit
all data for each visit to the commissioner, including but not limited to
manual entries;
(2) maintain compliance
identified by the commissioner, including but not limited to incorporating into
the system any changes in data requirements that must be transmitted to the
state EVV system; and
(3) integrate the system
with the state's designated data aggregator to accurately send data.
(e) The state-designated
data aggregator must be available at no cost to a provider for purposes of
transmitting electronic visit verification data from approved third-party
systems to the commissioner. Any costs
associated with the development and use of a third-party system are the
responsibility of the provider.
(f) If a provider is unable to integrate a third-party system with the designated state aggregator, the provider must use the state EVV system.
(g) The commissioner
must provide training on reviewing and correcting imported data in the state's
designated data aggregator to providers.
Subd. 4b. Provider
responsibilities. A provider
must:
(1) use an electronic
visit verification system that meets all technical and data submission
requirements established by the commissioner;
(2) enroll with the state-provided electronic visit verification system or the commissioner's designated data aggregator, as applicable;
(3) provide all information requested by the commissioner for enrollment, access, and data submission and ensure that such information remains accurate and up to date;
(4) maintain records for
each individual receiving services subject to electronic visit verification,
including but not limited to all required data elements;
(5) maintain a current
list of workers providing services subject to electronic visit verification to
individuals receiving services under medical assistance;
(6) provide the
commissioner and any managed care organization under contract with the
commissioner under section 256B.69 with immediate, direct, and on-site or
remote access to the electronic visit verification system;
(7) at the request of the
commissioner or a managed care organization, allow review or copying of
electronic visit verification documentation at no cost;
(8) ensure that
electronic visit verification systems and related processes meet accessibility
and confidentiality requirements under state and federal law;
(9) comply with all
policies, procedures, and technical specifications issued by the commissioner
under this section; and
(10) ensure that workers,
participants, and other individuals using electronic visit verification are
trained and comply with all documentation and data entry requirements
established by the commissioner.
Sec. 11. Minnesota Statutes 2024, section 256B.073, subdivision 5, is amended to read:
Subd. 5. Vendor requirements. (a) The vendor of the electronic visit verification system selected by the commissioner and the vendor's affiliate must comply with the requirements of this subdivision.
(b) The vendor of the state-selected state-provided
electronic visit verification system and the vendor's affiliate must:
(1) notify the provider of
services that the provider may choose the state-selected state-provided
electronic visit verification system at no cost to the provider;
(2) offer the state-selected
state-provided electronic visit verification system to the provider of
services prior to offering any fee-based electronic visit verification system;
(3) notify the provider of services that the provider may choose any fee-based electronic visit verification system prior to offering the vendor's or its affiliate's fee-based electronic visit verification system; and
(4) when offering the state-selected
state-provided electronic visit verification system, clearly
differentiate between the state-selected state-provided
electronic visit verification system and the vendor's or its affiliate's
alternative fee-based system.
(d) Upon request from the
provider, the vendor of the state-selected state-provided
electronic visit verification system must provide proof of compliance with the
requirements of paragraph (b).
(e) An agreement between the
vendor of the state-selected state-provided electronic visit
verification system or its affiliate and a provider of services for an
electronic visit verification system that is not the state-selected state‑provided
system entered into on or after July 1, 2023, is subject to immediate
termination by the provider if the vendor violates any of the requirements of
paragraph (b).
Sec. 12. Minnesota Statutes 2024, section 256B.073, is amended by adding a subdivision to read:
Subd. 6. Data
and documentation. (a) A
provider must submit electronic visit verification data to the commissioner or
the commissioner's designated data aggregator in accordance with the technical
standards, format, and frequency established under this section. The commissioner may use integrated
electronic visit verification data for oversight, quality assurance, and
program integrity purposes consistent with state and federal law.
(b) The commissioner and
managed care organizations must use electronic visit verification data to
validate claims for payment under medical assistance. Claims that cannot be validated in accordance
with electronic visit verification requirements may be subject to actions by
the commissioner as authorized under state and federal law, including actions
related to payment, program integrity, or provider compliance.
(c) A provider must record all required electronic visit verification data at the time of service delivery using an approved verification method. To be compliant with electronic visit verification requirements, a provider must document a visit with all required data elements recorded at the time of service delivery.
(d) A manual visit is a
visit:
(1) entered
administratively and not by the caregiver at the time of service delivery; or
(2) where data elements
are edited after the time of service delivery.
(e) A manual visit does not comply with electronic visit verification requirements. A manual visit must be confirmed and verified according to processes established by the commissioner before being used to validate or support a claim for payment.
(f) A worker providing
services subject to electronic visit verification must record the start and end
times of each visit at the time the service is delivered using an approved
verification method. A worker must
complete and verify all time documentation, including but not limited to
verification of service type, date, and duration, on the date the service
occurs and be consistent with documentation requirements under sections
256B.0625, subdivision 6a; 256B.0659, subdivision 12; 256B.49, subdivision 16; and
256B.85, subdivision 15. A provider of
services must maintain documentation demonstrating compliance with this
subdivision and make the documentation available to the commissioner or a
managed care organization under contract with the commissioner under section
256B.69 upon request.
Sec. 13. Minnesota Statutes 2024, section 256B.073, is amended by adding a subdivision to read:
Subd. 7. Third-party
system responsibilities. (a)
This section is effective for Early Intensive Developmental and Behavioral
Intervention services beginning July 1, 2027, or upon federal approval,
whichever is later. This section is
effective for all other services subject to this subdivision beginning January
1, 2027, or upon federal approval, whichever is later.
(b) A
provider that uses a third-party electronic visit verification system must
ensure that the system meets all technical, functional, and data-exchange
requirements established by the commissioner and transmits data to the
commissioner or the commissioner's designated data aggregator in the format and
frequency required by the commissioner.
(c) A third-party
electronic visit verification vendor must:
(1) comply with all
technical, contractual, privacy, and security standards established by the
commissioner;
(2) not use or disclose state data for any purpose other than fulfilling
the requirements of this section or federal law;
(3) provide the commissioner access to system documentation, data
mapping, and audit records upon request; and
(4) immediately report
to the commissioner any data transmission failure, breach, or interruption
affecting the state's ability to receive required electronic visit verification
data.
(d) A provider remains
responsible for ensuring compliance with this section even when using a
third-party electronic visit verification system.
(e) The third-party
vendor must ensure training on the system is available to providers.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 14. Minnesota Statutes 2025 Supplement, section 256B.0911, subdivision 14, is amended to read:
Subd. 14. Use of MnCHOICES certified assessors required. (a) Each lead agency shall use MnCHOICES certified assessors who have completed MnCHOICES training and the certification process determined by the commissioner in subdivision 13.
(b) Each lead agency must ensure that the lead agency has sufficient numbers of certified assessors to provide long-term consultation assessment and support planning within the timelines and parameters of the service.
(c) A lead agency may choose, according to departmental policies, to contract with a qualified, certified assessor to conduct assessments and reassessments on behalf of the lead agency.
(d) Tribes and health plans under contract with the commissioner must provide long-term care consultation services as specified in the contract.
(e) A lead agency must provide the commissioner with an administrative contact for communication purposes.
(f) A lead agency may contract under this subdivision with any hospital licensed under sections 144.50 to 144.56 to conduct assessments of patients in the hospital on behalf of the lead agency when the lead agency has failed to meet its obligations under subdivision 17. The contracted assessment must be conducted by a hospital employee who is a qualified, certified assessor. The hospital employees who perform assessments under the contract between the hospital and the lead agency may perform assessments in addition to other duties assigned to the employee by the hospital, except the hospital employees who perform the assessments under contract with the lead agency must not perform any waiver-related tasks other than assessments. Hospitals are not eligible for reimbursement under subdivision 33. The lead agency that enters into a contract with a hospital under this paragraph is responsible for oversight, compliance, and quality assurance for all assessments performed under the contract.
(g) The
commissioner must employ certified assessors within the department to conduct
assessments on behalf of lead agencies under conditions and circumstances
determined by the commissioner. Certified
assessors employed by the department may conduct assessments in addition to
other duties as assigned, except the certified assessors employed by the
department must not perform any responsibilities of a lead agency described in
this section other than assessments. Nothing
in this paragraph creates an obligation for the department to provide the
department's certified assessors to conduct assessments on behalf of a lead
agency.
Sec. 15. Minnesota Statutes 2024, section 256B.0911, subdivision 32, is amended to read:
Subd. 32. Administrative activity. (a) The commissioner shall:
(1) streamline the processes, including timelines for when assessments need to be completed;
(2) provide the services in
this section; and
(3) implement integrated
solutions to automate the business processes to the extent necessary for
support plan approval, reimbursement, program planning, evaluation, and policy
development.; and
(4) grant limited
role-based access to a person's support plan in the MnCHOICES system to home
and community-based service providers who have been designated as a provider
for that person by a lead agency for the purpose of signing the person's
support plan electronically and demonstrating that the provider has reviewed,
understood, and agrees to deliver services as outlined in the plan.
(b) The commissioner shall work with lead agencies responsible for conducting long-term care consultation services to:
(1) modify the MnCHOICES application and assessment policies to create efficiencies while ensuring federal compliance with medical assistance and long-term services and supports eligibility criteria; and
(2) develop a set of measurable benchmarks sufficient to demonstrate quarterly improvement in the average time per assessment and other mutually agreed upon measures of increasing efficiency.
(c) The commissioner shall collect data on the benchmarks developed under paragraph (b) and provide to the lead agencies an annual trend analysis of the data in order to demonstrate the commissioner's compliance with the requirements of this subdivision.
Sec. 16. Minnesota Statutes 2024, section 256B.0949, is amended by adding a subdivision to read:
Subd. 19. Billing
limits. (a) Effective July 1,
2027, or upon federal approval, whichever is later, the following billing
limits apply to early intensive developmental and behavioral intervention
services:
(1) intensive services: 40 hours per week per recipient;
(2) travel: two hours per day per recipient;
(3) observation and
direction: 20 hours per week per
recipient; and
(4) individual treatment
and planning: 300 units per year per
recipient.
(b) The commissioner must
grant exceptions to the billing limits under paragraph (a) when services in
excess of the billing limits are determined to be medically necessary. A provider must apply to the commissioner for
an exception on the forms and in the manner prescribed by the commissioner. A determination under this paragraph is final
and not subject to appeal.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Subd. 11. Informed choice in technology policy. It is the policy of this state that all adults who have disabilities and children who have disabilities:
(1) can use assistive technology, remote supports, or a combination of both to enhance the adult's or child's independence and quality of life; and
(2) have the right, at least annually, to make an informed choice about the adult's or child's use of assistive technology and remote supports when permitted under the individual's federally approved waiver plan, service authorization, and applicable service standards.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 18. Minnesota Statutes 2024, section 256B.4905, subdivision 12, is amended to read:
Subd. 12. Informed choice and technology prioritization in implementation for disability waiver services. (a) The commissioner of human services shall ensure that:
(1) disability waivers
under sections 256B.092 and 256B.49 support the presumption that all adults who
have disabilities and children who have disabilities may use assistive
technology, remote supports, or both to enhance the adult's or child's
independence and quality of life; and
(2) each individual
accessing waiver services is offered, after an informed decision-making process
and during a person-centered planning process, the opportunity to choose
assistive technology, remote support, or both prior to the commissioner
offering or reauthorizing services that utilize direct support staff to ensure
equitable access.; and
(3) policies and
procedures related to the use of technology, including but not limited to
remote support, promote informed choice and protect the health and safety of
individuals receiving services consistent with federal law and the terms of
approved waiver plans.
(b) Nothing in this
subdivision authorizes the use of remote support as a method of service
delivery unless expressly permitted under the applicable service definition,
waiver plan, and service standards approved by the Centers for Medicare and
Medicaid Services.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 19. Minnesota Statutes 2024, section 256B.4912, is amended by adding a subdivision to read:
Subd. 17. Billing
limits. (a) The limits in
this subdivision establish the maximum amounts of authorized units for each
service within a service day, week, or month.
(b) Effective January 1,
2027, or upon federal approval, whichever is later, the following billing
limits apply:
(1) adult companion
services: up to six hours per day per
recipient with a maximum of 963 hours annually;
(2) chore services: up to six hours per week per recipient for
15-minute units;
(3) homemaker services,
cleaning: up to 16 hours per week per
recipient;
(4) homemaker services, home management: up to 16 hours per week per recipient;
(5)
day support services: up to eight hours
per day per recipient;
(6) family training and counseling under a disability waiver: up to two hours per week per recipient or
family unit;
(7) community residential services one-to-one staffing: the maximum daily hours permitted under the applicable service tier under section 256B.4914, as published by the commissioner;
(8) independent living
skills: up to six hours per day per
recipient;
(9) home-delivered
meals: up to two meals per day per
recipient;
(10) individualized home
supports: up to 16 hours per day per
recipient, inclusive of all staffing ratios;
(11) personal emergency
response system: one unit per month per
recipient, inclusive of installation, monitoring, and maintenance;
(12) respite services
provided in the recipient's home: 30
consecutive days per occurrence;
(13) night supervision
services: ten hours per day per
recipient, with no more than eight hours asleep; and
(14) transportation
services: 28 one-way trips per week per
participant.
(c) For personal
emergency response system billing units under paragraph (b), clause (11), lead
agency staff must end service lines for any inactive providers to prevent
duplicate billing.
(d) The limits in this
subdivision do not limit a person's use of other waiver services. Billing limits under this subdivision apply
only to the individual service listed and do not prohibit the recipient from
accessing other services for which they are eligible on the same day, week, or
month, subject to other applicable requirements.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 20. Minnesota Statutes 2024, section 256B.4914, subdivision 6d, is amended to read:
Subd. 6d. Payment for customized living. (a) The payment methodology for customized living and 24-hour customized living must be the customized living tool. The commissioner shall revise the customized living tool to reflect the services and activities unique to disability-related recipient needs and adjust for regional differences in the cost of providing services.
(b) The rate adjustments described in section 256S.205 do not apply to rates paid under this section.
(c) Customized living and 24-hour customized living rates determined under this section shall not include more than 24 hours of support in a daily unit.
(d) The commissioner shall establish the following acuity-based customized living tool input limits, based on case mix, for customized living and 24-hour customized living rates determined under this section:
(1) no more than two hours of mental health management per day for
people assessed for case mixes A, D, and G;
(2) no more than four hours of activities of daily living assistance per
day for people assessed for case mix B; and
(3) no more than six hours of activities of daily living assistance per day for people assessed for case mix D.
(e)
Customized living monthly service rate limits must align with monthly service
rate limits determined under section 256S.202, subdivisions 1 and 2.
Sec. 21. Minnesota Statutes 2025 Supplement, section 256B.4914, subdivision 8, is amended to read:
Subd. 8. Unit-based services with programming; component values and calculation of payment rates. (a) For the purpose of this section, unit-based services with programming include employment exploration services, employment development services, employment support services, individualized home supports with family training, individualized home supports with training, and positive support services provided to an individual outside of any service plan for a day program or residential support service.
(b) Component values for unit-based services with programming are:
(1) competitive workforce factor: 6.7 percent;
(2) supervisory span of control ratio: 11 percent;
(3) employee vacation, sick, and training allowance ratio: 8.71 percent;
(4) employee-related cost ratio: 23.6 percent;
(5) program plan support ratio: 15.5 percent;
(6) client programming and support ratio: 4.7 percent, updated as specified in subdivision 5b;
(7) general administrative support ratio: 13.25 percent;
(8) program-related expense ratio: 6.1 percent; and
(9) absence and utilization factor ratio: 3.9 percent.
(c) A unit of service for unit-based services with programming is 15 minutes.
(d) Payments for unit-based services with programming must be calculated as follows, unless the services are reimbursed separately as part of a residential support services or day program payment rate:
(1) determine the number of units of service to meet a recipient's needs;
(2) determine the appropriate hourly staff wage rates derived by the commissioner as provided in subdivisions 5 and 5a;
(3) except for subdivision 5a, clauses (1) to (4), multiply the result of clause (2) by the product of one plus the competitive workforce factor;
(4) for a recipient requiring customization for deaf and hard-of-hearing language accessibility under subdivision 12, add the customization rate provided in subdivision 12 to the result of clause (3);
(5) multiply the number of direct staffing hours by the appropriate staff wage;
(6) multiply the number of direct staffing hours by the product of the supervisory span of control ratio and the appropriate supervisory staff wage in subdivision 5a, clause (1);
(8) for program plan support, multiply the result of clause (7) by one plus the program plan support ratio;
(9) for employee-related expenses, multiply the result of clause (8) by one plus the employee-related cost ratio;
(10) for client programming and supports, multiply the result of clause (9) by one plus the client programming and support ratio;
(11) this is the subtotal rate;
(12) sum the standard general administrative support ratio, the program-related expense ratio, and the absence and utilization factor ratio;
(13) divide the result of clause (11) by one minus the result of clause (12). This is the total payment amount;
(14) for services provided in a shared manner, divide the total payment in clause (13) as follows:
(i) for employment exploration services, divide by the number of service recipients, not to exceed five;
(ii) for employment support services, divide by the number of service recipients, not to exceed six;
(iii) for individualized home supports with training and individualized home supports with family training, divide by the number of service recipients, not to exceed three; and
(iv) for night supervision, divide by the number of service recipients, not to exceed two; and
(15) adjust the result of clause (14) by a factor to be determined by the commissioner to adjust for regional differences in the cost of providing services.
(e) Effective January 1,
2026, or upon federal approval, whichever is later, a provider must not bill
more than three consecutive hours and not more than six total hours per day for
individualized home supports with training and individualized home supports
with family training. This daily limit
does not limit a person's use of other disability waiver services, including
individualized home supports, which may be provided on the same day by the same
provider providing individualized home supports with training or individualized
home supports with family training. This
paragraph expires upon the effective date of paragraph (f).
(f) Effective January 1,
2027, or upon federal approval, whichever is later, a provider must not bill
more than:
(1) for individualized
home supports with training, a monthly service limit of 182.5 hours; and
(2) for individualized
home supports with family training, not more than six total hours per day.
(g) The limits in
paragraph (f), clauses (1) and (2), do not limit a person's use of other
disability waiver services, including individualized home supports, which may
be provided on the same day by the same provider providing individualized home
supports with training or individualized home supports with family training or
apply to individuals who meet the residential support services criteria under
sections 256B.092, subdivision 11a, and 256B.49, subdivision 29.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Subd. 10e. Documentation
of staffing; auditing and rate review.
(a) Effective for services provided on or after January 1, 2029,
a provider enrolled to provide residential support services under subdivision 6
must maintain documentation of direct staffing hours provided to each person
receiving services, including but not limited to documentation identifying:
(1) the name, role, and
unique identifier for each staff person who provided services to match records
to payroll, time and attendance systems, and any other source documentation;
(2) the date services
were provided;
(3) the total number of
hours of direct support provided;
(4) awake overnight
staffing hours provided, if applicable;
(5) asleep overnight
staffing hours provided, if applicable; and
(6) any other staffing
information required by the commissioner.
(b) A provider must
maintain documentation in a manner and format determined by the commissioner
for at least six years. If a provider
changes payroll vendors, merges operations, or changes staffing identifiers,
the provider must maintain a documented link between prior and current staffing
identifiers sufficient to allow tracking of hours worked, turnover, and role
classification for each staff person.
(c) A provider must
submit the documentation required under paragraph (a) to the commissioner
annually, in a manner and format determined by the commissioner. The commissioner must establish multiple
submission windows throughout the calendar year and may assign providers to a
submission window for administrative efficiency and system capacity. Documentation must reflect staffing provided
during the prior calendar year and must be submitted no later than the final
business day of the provider's assigned submission window. The commissioner may conduct random or
targeted validations and audits of submitted data and may require supplemental
documentation as necessary to verify accuracy and compliance.
(d) The commissioner
must conduct periodic analysis of documentation submitted under this
subdivision and may validate staffing data through random audits or other
verification methods.
(e) Based on the
analysis under paragraph (d), the commissioner may provide recommendations to
lead agencies regarding modifications to the rate of a person receiving
services, including increases or decreases necessary to align the rate with
staffing provided to the person as demonstrated by the submitted historical
staffing documentation. Recommendations
must be based on the requirements of this section and applicable federal and
state requirements governing rate setting.
(f) If a provider fails
to submit documentation requested within the submission window in paragraph
(c), the commissioner must issue a written notice of noncompliance. If documentation is not received within 60
days following the notice of noncompliance, the commissioner may temporarily
suspend payments to the provider until the required documentation is submitted. The commissioner must make withheld payments
to the provider once the required documentation is received. If the noncompliance persists, the commissioner
may adjust future rate payments, require the provider to submit a corrective
action plan, or pursue other enforcement actions as authorized by law.
(g)
The commissioner must publish annual aggregate reports summarizing audit
findings and trends related to staffing provided under this section.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 23. Minnesota Statutes 2024, section 256B.492, is amended by adding a subdivision to read:
Subd. 4. Integrated
community supports setting approval moratorium and exception. (a) For purposes of this subdivision,
"integrated community supports setting" means a multifamily housing
building where a provider delivers integrated community supports under section
245D.03, subdivision 1, paragraph (c), clause (8), and for which a provider has
a provider-controlled or provider-associated financial interest as defined
under section 245A.02, subdivision 10b.
(b) The commissioner
must not approve a new integrated community supports setting or approve an
expansion of an existing integrated community supports setting except as
provided in this subdivision.
(c) The commissioner may
approve an exception to the moratorium only when the applicant demonstrates
indirect control of the setting and compliance with:
(1) the federal home and
community-based services requirements under Code of Federal Regulations, title
42, section 441.301(c);
(2) the prohibition on
the use of medical assistance money for room and board under United States
Code, title 42, section 1396n(c);
(3) independent lease
requirements consistent with chapter 504B; and
(4) all documentation
requirements under section 245D.12.
(d) To approve an
exception, the commissioner must determine that the lead agency has requested
the additional capacity to meet the specific disability-related needs of the
person. Priority must be given to
geographic regions with insufficient integrated community supports capacity
based on statewide or regional needs determination processes.
(e) A determination
under this subdivision is final and not subject to appeal.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 24. Minnesota Statutes 2024, section 256S.20, is amended by adding a subdivision to read:
Subd. 6. Customized
living and 24-hour customized living moratorium. (a) Except as permitted in this
subdivision, the commissioner must not authorize:
(1) a new customized
living setting or 24-hour customized living setting; or
(2) a new provider
enrollment to deliver customized living services or 24-hour customized living
services.
(b) The commissioner may
approve an exception to the moratorium only when the commissioner determines
the exception is necessary for:
(1) a change of ownership at the same
address;
(2)
continuity of care due to a provider closure, decertification, licensing
action, or other service disruption; or
(3) compliance with
federal law.
(c) In determining
whether to approve an exception to the moratorium, the commissioner must
consider the availability of services in the geographic area, a person's
assessed needs and informed choice, whether a less restrictive alternative is
available, and the recommendation of the lead agency.
(d) A determination
under this subdivision is final and not subject to appeal.
EFFECTIVE DATE. This
section is effective January 1, 2027.
Sec. 25. Minnesota Statutes 2024, section 256S.21, is amended by adding a subdivision to read:
Subd. 4. Documentation
of staffing; auditing and rate review for residential support services. (a) For purposes of this subdivision,
residential support services include 24-hour customized living services,
customized living services, family adult foster care, and corporate adult
foster care.
(b) Effective January 1,
2029, a provider enrolled to provide residential support services under this
subdivision must maintain documentation of direct staffing hours provided to
each person receiving services, including but not limited to documentation identifying:
(1) the name, role, and
unique identifier for each staff person who provided services to match records
to payroll, time and attendance systems, and any other source documentation;
(2) the date services
were provided;
(3) the total number of
hours of direct support provided;
(4) awake overnight
staffing hours provided, if applicable;
(5) asleep overnight
staffing hours provided, if applicable; and
(6) any other staffing
information required by the commissioner.
(c) A provider must
maintain documentation in a manner and format determined by the commissioner
for at least six years. If a provider
changes payroll vendors, merges operations, or changes staffing identifiers,
the provider must maintain a documented link between prior and current staffing
identifiers sufficient to allow tracking of hours worked, turnover, and role
classification for each staff person.
(d) A provider must
submit the documentation required under paragraph (b) to the commissioner
annually, in a manner and format determined by the commissioner. The commissioner must establish multiple
submission windows throughout the calendar year and may assign providers to a
submission window for administrative efficiency and system capacity. Documentation must reflect staffing provided
during the prior calendar year and must be submitted no later than the final
business day of the provider's assigned submission window. The commissioner may conduct random or
targeted validations and audits of submitted data and may require supplemental
documentation as necessary to verify accuracy and compliance.
(e) The commissioner
must conduct periodic analysis of documentation submitted under this
subdivision and may validate staffing data through random audits or other
verification methods.
(f)
Based on the analysis under paragraph (e), the commissioner may provide
recommendations to lead agencies regarding modifications to the rate of the
person receiving services, including increases or decreases necessary to align
the rate with staffing provided to the person as demonstrated by the submitted
historical staffing documentation. Recommendations
must be based on the requirements of this section and applicable federal and
state requirements governing rate setting.
(g) If a provider fails
to submit documentation requested within the submission window under paragraph
(d), the commissioner must issue a written notice of noncompliance. If documentation is not received within 60
days following the notice of noncompliance, the commissioner may temporarily
suspend payments to the provider until the required documentation is submitted. The commissioner must make withheld payments
to the provider once the required documentation is received. If the noncompliance persists, the
commissioner may adjust future rate payments, require the provider to submit a
corrective action plan, or pursue other enforcement actions as authorized by
law.
(h) The commissioner
must publish annual aggregate reports summarizing audit findings and trends
related to staffing provided under this section.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 26. MARKET
RATE STUDY FOR HOME AND COMMUNITY-BASED SERVICES.
(a) The commissioner of
human services must conduct a market rate study to evaluate the adequacy,
sustainability, and equity of payment rates for specific home and
community-based services under the home and community-based services waivers
authorized under Minnesota Statutes, sections 256B.092 and 256B.49.
(b) The study must
include, at a minimum, an analysis of the following:
(1) employment support
services delivered in remote or virtual settings;
(2) 24-hour emergency
assistance;
(3) assistive
technology;
(4) environmental
accessibility adaptations;
(5) chore services;
(6) transitional
services;
(7) independent living
skills training;
(8) specialist services,
including positive support services and orientation and mobility services; and
(9) administrative fees
charged by enrolled providers or vendors for services or purchased goods.
(c) In planning and
conducting the market rate study, the commissioner must consult with interested
parties, including but not limited to service providers, people with
disabilities, lead agencies, Tribal Nations, culturally specific and
community-based providers, and disability advocacy organizations. The consultation process must be designed to
ensure meaningful participation from providers in greater Minnesota and from
providers serving communities of color and Tribal Nations.
(d) In
conducting the study, the commissioner must analyze provider costs, workforce
availability, wage competitiveness, regional market conditions, inflationary
impacts, and access issues. The
commissioner must also evaluate whether current reimbursement methodologies
reflect actual costs of providing services and support long‑term access to
qualified providers.
(e) By February 15,
2027, the commissioner must submit a report with findings and recommendations,
including but not limited to any proposed statutory changes, to the chairs and
ranking minority members of the legislative committees with jurisdiction over
health and human services policy and finance.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 27. WAIVER
CASE MANAGEMENT ADVISORY WORKING GROUP.
Subdivision 1. Establishment;
purpose. The commissioner of
human services shall convene a waiver case management advisory working group. The purpose of the working group is to
evaluate and make recommendations regarding the quality, workforce
sustainability, accountability, and long-term stability of home and community‑based
waiver case management services provided under Minnesota Statutes, sections
256B.0913, 256B.092, 256B.0922, and 256B.49, and chapter 256S.
Subd. 2. Membership. The commissioner shall appoint members
representing diverse geographic regions of the state, including metropolitan
and greater Minnesota areas, with at least 30 percent of the members living or
working outside the seven-county metropolitan area and including:
(1) representatives of
the Department of Human Services;
(2) lead agencies, as
defined in Minnesota Statutes, section 256B.0911, subdivision 10;
(3) contracted waiver
case management providers;
(4) waiver case managers
with current direct service responsibilities;
(5) individuals
receiving waiver services or their family members or advocates;
(6) representatives of
disability advocacy organizations;
(7) representatives of
the Minnesota Disability Law Center;
(8) representatives of
culturally specific or Tribal communities; and
(9) workforce
representatives with experience in human services.
Subd. 3. Compensation;
expenses. Members of the
working group may receive compensation and expense reimbursement as provided in
Minnesota Statutes, section 15.059, subdivision 3.
Subd. 4. Meetings;
administrative support. (a)
The first meeting of the working group must be convened no later than August 1,
2026. The working group must meet at
least monthly. Meetings are subject to
Minnesota Statutes, chapter 13D. The
working group may meet by telephone or interactive technology consistent with
Minnesota Statutes, section 13D.015.
(b) The Department of
Human Services shall provide staff and administrative support to convene the
working group, facilitate working group meetings, and prepare the final report.
Subd. 5. Duties. The working group shall:
(1) evaluate the impact
of current funding levels, workforce capacity, administrative requirements, and
caseload expectations on service delivery and quality outcomes;
(2) examine
accountability and oversight mechanisms and grievance processes across delivery
models;
(3) review available
data related to workforce vacancies, turnover, compensation, and service
access;
(4) identify barriers to
maintaining high-quality and culturally responsive case management services;
(5) examine case
management training requirements and core competencies;
(6) evaluate client
transfer and service continuity processes; and
(7) develop
recommendations, including potential legislative or administrative changes, to
ensure a stable, accountable, and high-quality waiver case management system
that supports person-centered planning and informed choice.
Subd. 6. Report. By September 1, 2027, the commissioner
shall submit a report summarizing the working group's findings and
recommendations to the chairs and ranking minority members of the legislative
committees with jurisdiction over human services policy and finance.
Subd. 7. Expiration. The working group expires upon
submission of the report required under subdivision 6.
EFFECTIVE DATE. This
section is effective July 1, 2026.
Sec. 28. DIRECTION
TO COMMISSIONER; HCBS WAIVER CASE MANAGEMENT EVALUATION AND REPORT.
(a) The commissioner of
human services must evaluate reimbursement rates and lead agency duties
associated with home and community-based services (HCBS) case management under
Minnesota Statutes, sections 256B.092 and 256B.49, and chapter 256S. The commissioner must develop an updated
payment methodology for waiver case management that reasonably covers the cost
to provide high-quality, person-centered, and culturally responsive case
management services. The report must, at
a minimum, include:
(1) an evaluation of
costs and workforce pressures that impact the delivery of case management
services;
(2) an evaluation of
costs to provide culturally responsive case management services;
(3) an evaluation of
current reimbursement rates, methodologies, and the extent to which rates cover
costs to provide services and attract and retain case managers;
(4) an evaluation of
current caseload sizes and recommended best practices for caseload and case
mix;
(5) identification and
evaluation of the required professional qualifications, experience, and
training of case management professionals; and
(6) recommended HCBS
waiver rate methodology, specified cost components, weighted values, and
modeled rate frameworks.
(b) The
commissioner must consult with interested parties, including but not limited to
lead agencies, contracted case management services providers, individuals
receiving services and their families, advocacy organizations, and relevant
experts. The commissioner must consider
the recommendations of the waiver case management advisory working group under
section 27 when developing recommendations under this section.
(c) The commissioner may
contract with rate experts to develop and model recommended rates.
(d) By December 15, 2028,
the commissioner of human services must submit a report to the chairs and
ranking minority members of the legislative committees with jurisdiction over
health and human services with the findings and recommendations of the evaluation.
EFFECTIVE DATE. This
section is effective July 1, 2027.
Sec. 29. INTEGRATED
COMMUNITY SUPPORTS REFORM STUDY.
Subdivision 1. Review
and evaluation. The
commissioner of human services must review the medical assistance integrated
community supports (ICS) service provided under the home and community-based
waivers authorized under Minnesota Statutes, sections 256B.092 and 256B.49, and
evaluate the need for statutory, regulatory, and programmatic reforms. At a minimum, the evaluation must include:
(1) an examination of
current provider standards, service delivery models, and oversight mechanisms
applicable to ICS providers;
(2) an assessment of the
effectiveness of ICS in supporting individuals to live independently in
community settings, including outcomes related to service utilization and
health and safety;
(3) a review of payment
methodologies, including rate structures, administrative components, and
alignment with federal Medicaid requirements under home and community-based
services waivers and state plan authorities;
(4) an environmental scan
of comparable supportive housing and community-based service models in other
states, including best practices for program integrity, quality assurance, and
service coordination;
(5) an assessment of
program integrity risks, including billing practices and service verification;
and
(6) identification of
opportunities to improve coordination between ICS providers and lead agencies.
Subd. 2. Stakeholder
consultation. The
commissioner must consult with stakeholders in conducting the review under this
section. Stakeholders must include, at a
minimum:
(1) individuals who
receive ICS services and self-advocates;
(2) family members and
caregivers of individuals who receive ICS services;
(3) ICS providers;
(4) counties and Tribal
Nations serving as lead agencies; and
(5) advocacy
organizations representing people with disabilities.
Subd. 3. Report. (a) The commissioner must develop
recommendations for legislative and administrative changes to strengthen the
ICS program. Recommendations may include
but are not limited to:
(1) establishing
risk-based provider oversight and program integrity requirements;
(2)
clarifying allowable services and service limits consistent with federal
Medicaid requirements, including prohibitions on payment for room and board;
(3) improving service
verification, documentation, and accountability measures;
(4) enhancing recipient
protections, including person-centered planning and grievance processes; and
(5) aligning ICS with
home and community-based services settings requirements under Code of Federal
Regulations, title 42, section 441.301.
(b) The commissioner must
submit a report to the chairs and ranking minority members of the legislative
committees with jurisdiction over health and human services policy and finance
by September 1, 2027. The report must
include findings, stakeholder feedback, and specific legislative proposals
related to ICS reform.
Sec. 30. MNCHOICES
REDESIGN WORKING GROUP.
Subdivision 1. Establishment. The commissioner of human services shall convene a MnCHOICES redesign working group to develop recommendations related to state provision of MnCHOICES assessments under Minnesota Statutes, section 256B.0911, subdivision 14, paragraph (g).
Subd. 2. Membership. At a minimum, the working group must
include the following members:
(1) two individuals
receiving waiver services or the individuals' family members or advocates,
appointed by the commissioner in consultation with organizations representing
individuals with lived experience of disability and waiver services;
(2) three county
representatives, appointed by the Minnesota Association of County Social
Service Administrators, including;
(i) at least one
representative of a lead agency located in a metropolitan county, as defined in
Minnesota Statutes, section 473.121, subdivision 4; and
(ii) at least two
representatives of lead agencies located outside of a metropolitan county, as
defined in Minnesota Statutes, section 473.121, subdivision 4;
(3) one staff member from
the Minnesota Social Service Association, appointed by the Minnesota Social
Service Association;
(4) at least three
representatives from Tribal Nations, appointed by the commissioner;
(5) two representatives
of disability advocacy organizations, appointed by the commissioner;
(6) one representative of
aging services organizations, appointed by LeadingAge Minnesota;
(7) one representative of
aging services organizations, appointed by Care Providers of Minnesota; and
(8) additional nonvoting
participants as determined by the commissioner, which may include staff from
the Department of Human Services and other interested parties.
Subd. 3. Duties. The working group shall make recommendations to shift the responsibility and administration of conducting MnCHOICES assessments to the state. Recommendations must include:
(1) defined roles and responsibilities
between county, Tribal Nation, and state functions;
(2)
revised payment methodologies and financing of duties;
(3) efficient workflows
between local and state functions;
(4) service continuity
for people seeking and receiving long-term services and supports; and
(5) methods for
gathering public feedback and providing public awareness.
Subd. 4. Terms,
compensation, and removal. The
terms, compensation, and removal of the working group members are governed by
Minnesota Statutes, section 15.059.
Subd. 5. Meetings;
administrative support. (a)
The first meeting of the working group must be convened no later than August 1,
2026. The working group must meet at
least monthly. The working group may
meet by telephone or interactive technology consistent with Minnesota Statutes,
section 13D.015.
(b) The Department of
Human Services shall provide staff and administrative support to convene the
working group, facilitate working group meetings, and prepare the final report.
Subd. 6. Report. By September 1, 2027, the commissioner
must submit a report of the working group's findings and recommendations,
including but not limited to any legislative changes necessary to implement the
recommendations, to the chairs and ranking minority members of the legislative
committees with jurisdiction over human services policy and finance.
Subd. 7. Expiration. The working group expires upon
submission of the report required under subdivision 6.
Sec. 31. REPEALER.
Subdivision 1. Electronic
visit verification provider requirements.
Minnesota Statutes 2024, section 256B.073, subdivision 4, is
repealed.
Subd. 2. MnCHOICES
exceptions following an institutional stay.
Minnesota Statutes 2024, section 256B.0911, subdivision 21, is
repealed.
EFFECTIVE DATE. Subdivision
1 is effective July 1, 2026. Subdivision
2 is effective January 1, 2027.
ARTICLE 8
MISCELLANEOUS
Section 1. Minnesota Statutes 2025 Supplement, section 15.471, subdivision 6, is amended to read:
Subd. 6. Party. (a) Except as modified by paragraph (b), "party" means a person named or admitted as a party, or seeking and entitled to be admitted as a party, in a court action or contested case proceeding, or a person admitted by an administrative law judge for limited purposes, and who is:
(1) an unincorporated business, partnership, corporation, association, or organization, having not more than 500 employees at the time the civil action was filed or the contested case proceeding was initiated; and
(2) an unincorporated
business, partnership, corporation, association, or organization whose annual
revenues did not exceed $7,000,000 $13,500,000 at the time the
civil action was filed or the contested case proceeding was initiated.
(c) " Party"
does not include a person providing services pursuant to licensure or
reimbursement on a cost basis by the Department of Health, the
Department of Human Services, or Direct Care and Treatment when that
person is named or admitted or seeking to be admitted as a party in a matter
which involves the licensing or reimbursement rates, procedures, or methodology
applicable to those services.
Sec. 2. Minnesota Statutes 2024, section 144G.41, subdivision 1, is amended to read:
Subdivision 1. Minimum requirements. All assisted living facilities shall:
(1) distribute to residents the assisted living bill of rights;
(2) provide services in a manner that complies with the Nurse Practice Act in sections 148.171 to 148.285;
(3) utilize a person-centered planning and service delivery process;
(4) have and maintain a system for delegation of health care activities to unlicensed personnel by a registered nurse, including supervision and evaluation of the delegated activities as required by the Nurse Practice Act in sections 148.171 to 148.285;
(5) except as specified in subdivision 1c, provide a means for residents to request assistance for health and safety needs 24 hours per day, seven days per week. A facility may use person-centered strategies to provide a means for residents to request assistance and, if effective, may allow residents to use technological devices to request assistance;
(6) allow residents the ability to furnish and decorate the resident's unit within the terms of the assisted living contract;
(7) permit residents access to food at any time;
(8) allow residents to choose the resident's visitors and times of visits;
(9) allow the resident the right to choose a roommate if sharing a unit;
(10) notify the resident of the resident's right to have and use a lockable door to the resident's unit. The licensee shall provide the locks on the unit. Only a staff member with a specific need to enter the unit shall have keys, and advance notice must be given to the resident before entrance, when possible. An assisted living facility must not lock a resident in the resident's unit;
(11) develop and implement a staffing plan for determining its staffing level that:
(i) includes an evaluation, to be conducted at least twice a year, of the appropriateness of staffing levels in the facility;
(ii) ensures sufficient staffing at all times to meet the scheduled and reasonably foreseeable unscheduled needs of each resident as required by the residents' assessments and service plans on a 24-hour per day basis; and
(iii) ensures that the facility can respond promptly and effectively to individual resident emergencies and to emergency, life safety, and disaster situations affecting staff or residents in the facility;
(i) awake;
(ii) located in the same building, in an attached building, or on a contiguous campus with the facility in order to respond within a reasonable amount of time;
(iii) capable of communicating with residents;
(iv) capable of providing or summoning the appropriate assistance; and
(v) capable of following directions; and
(13) provide staff access to an on-call registered nurse 24 hours per day, seven days per week.
Sec. 3. Minnesota Statutes 2024, section 144G.41, is amended by adding a subdivision to read:
Subd. 1c. Alternative
to summoning device to request assistance.
For a resident who, based on an individualized nursing assessment
under section 144G.70, subdivision 2, cannot reliably use a summoning device
such as a phone, bell, call light, pull cord, or pendant to request assistance
for health and safety needs, a facility:
(1) is not required to have a resident use a summoning device to request
assistance for health and safety needs; and
(2) must use
person-centered strategies to meet the resident's assessed needs.
Sec. 4. Minnesota Statutes 2024, section 295.50, subdivision 4, is amended to read:
Subd. 4. Health care provider. (a) "Health care provider" means:
(1) a person whose health care occupation is regulated or required to be regulated by the state of Minnesota furnishing any or all of the following goods or services directly to a patient or consumer: medical, surgical, optical, visual, dental, hearing, nursing services, drugs, laboratory, diagnostic or therapeutic services;
(2) a person who provides goods and services not listed in clause (1) that qualify for reimbursement under the medical assistance program provided under chapter 256B;
(3) a staff model health plan company;
(4) an ambulance service required to be licensed;
(5) a person who sells or repairs hearing aids and related equipment or prescription eyewear; or
(6) a person providing patient
services, who does not otherwise meet the definition of health care provider
and is not specifically excluded in clause paragraph (b), who
employs or contracts with a health care provider as defined in clauses (1) to
(5) to perform, supervise, otherwise oversee, or consult with regarding patient
services.
(b) Health care provider does not include:
(1) hospitals; medical supplies distributors, except as specified under paragraph (a), clause (5); nursing homes licensed under chapter 144A or licensed in any other jurisdiction; wholesale drug distributors; pharmacies; surgical centers; bus and taxicab transportation, or any other providers of transportation services other than ambulance
(2) home health agencies as
defined in Minnesota Rules, part 9505.0175, subpart 15; a person providing
personal care assistance services and supervision of personal care assistance
services as defined in Minnesota Rules, part 9505.0335 section
256B.0625, subdivision 19a; a person providing home care nursing services
as defined in Minnesota Rules, part 9505.0360; and home care providers required
to be licensed under chapter 144A for home care services provided under chapter
144A;
(3) a person who employs health care providers solely for the purpose of providing patient services to its employees;
(4) an educational institution that employs health care providers solely for the purpose of providing patient services to its students if the institution does not receive fee for service payments or payments for extended coverage; and
(5) a person who receives all payments for patient services from health care providers, surgical centers, or hospitals for goods and services that are taxable to the paying health care providers, surgical centers, or hospitals, as provided under section 295.53, subdivision 1, paragraph (b), clause (3) or (4), or from a source of funds that is excluded or exempt from tax under sections 295.50 to 295.59.
Sec. 5. Minnesota Statutes 2025 Supplement, section 295.50, subdivision 9b, is amended to read:
Subd. 9b. Patient services. (a) "Patient services" means inpatient and outpatient services and other goods and services provided by hospitals, surgical centers, or health care providers. They include the following health care goods and services provided to a patient or consumer:
(1) bed and board;
(2) nursing services and other related services;
(3) use of hospitals, surgical centers, or health care provider facilities;
(4) medical social services;
(5) drugs, biologicals, supplies, appliances, and equipment;
(6) other diagnostic or therapeutic items or services;
(7) medical or surgical services;
(8) items and services furnished to ambulatory patients not requiring emergency care; and
(9) emergency services.
(b) " Patient
services" does not include:
(2) examinations for purposes of utilization reviews, insurance claims or eligibility, litigation, and employment, including reviews of medical records for those purposes;
(3) services provided to and by community residential mental health facilities licensed under section 245I.23 or Minnesota Rules, parts 9520.0500 to 9520.0670, and to and by residential treatment programs for children with a serious mental illness licensed or certified under chapter 245A;
(4) services provided under the following programs: day treatment services as defined in section 245.462, subdivision 8; assertive community treatment as described in section 256B.0622; adult rehabilitative mental health services as described in section 256B.0623; crisis response services as described in section 256B.0624; and children's therapeutic services and supports as described in section 256B.0943;
(5) services provided to and by community mental health centers as defined in section 245.62, subdivision 2;
(6) services provided to and
by assisted living programs and congregate housing programs;
(7) hospice care services;
(8) home and community-based waivered services under chapter 256S and sections 256B.49 and 256B.501;
(9) targeted case management services under sections 256B.0621; 256B.0625, subdivisions 20, 20a, 33, and 44; and 256B.094; and
(10) services provided to
the following: supervised living
facilities for persons with developmental disabilities licensed under Minnesota
Rules, parts 4665.0100 to 4665.9900; housing with services establishments
required to be registered under chapter 144D assisted living
facilities licensed under chapter 144G; board and lodging establishments
providing only custodial services that are licensed under chapter 157 and
registered under section 157.17 to provide supportive services or health
supervision services; adult foster homes as defined in Minnesota Rules, part
9555.5105; day training and habilitation services for adults with developmental
disabilities as defined in section 252.41, subdivision 3; boarding care homes
as defined in Minnesota Rules, part 4655.0100; adult day care services as
defined in section 245A.02, subdivision 2a; and home health agencies as defined
in Minnesota Rules, part 9505.0175, subpart 15, or licensed under chapter 144A.
Sec. 6. DIRECTION
TO COMMISSIONER; ASSESSMENT OF ADMINISTRATION ROLES.
(a) The commissioner of
human services, in consultation with Tribal Nations and counties, must conduct
a study to assess and recommend improvements to the roles and responsibilities
of the state agency, counties, and Tribal Nations in administering human
services programs.
(b) The study must
include a comprehensive review of programs administered by the department,
including but not limited to medical assistance, MinnesotaCare, behavioral
health services, long-term services and supports, housing and homelessness
programs, Minnesota supplemental aid, general assistance, and licensing and
oversight functions.
(c) The study must
evaluate the:
(1) current roles and
responsibilities held by the state agency, counties, and Tribal Nations in
administering human services programs, including but not limited to the
challenges and benefits of the current delegation of roles and
responsibilities;
(2) lived experience of
people accessing human services programs related to the delegation of
administrative duties;
(3)
financing of human services program administration across the state agency,
counties, and Tribal Nations;
(4) variations in service
delivery between different geographical regions of the state; and
(5) administration of
human services programs in other states, focusing on the roles and
responsibilities of the local governments versus the state Medicaid or human
services agency, and identifying the benefits, challenges, and financing of the
delegation of duties.
(d) The study must focus
on the goals of transforming the human services system to ensure a transparent,
accessible, accountable, equitable, and effective human services system.
(e) The study must
provide recommendations for the optimal delegation of duties between the state
agency, counties, and Tribal Nations in the delivery of human services. Recommendations must include:
(1) how the delegation of
duties will improve the experience of people accessing human services;
(2) implementation and
timing considerations to ensure continuity of services;
(3) systems technology
adaptations required;
(4) workforce
considerations; and
(5) financing strategies
and the estimated fiscal impact to the state budget.
(f) By October 1, 2028,
the commissioner must submit a report on the study and recommendations to the
chairs and ranking minority members of the legislative committees with
jurisdiction over health and human services policy and finance.
ARTICLE 9
DEPARTMENT OF HUMAN SERVICES APPROPRIATIONS
|
Section 1. HUMAN
SERVICES APPROPRIATIONS. |
The dollar amounts shown
in the columns marked "Appropriations" are added to or, if shown in
parentheses, are subtracted from the appropriations in Laws 2025, First Special
Session chapter 9, article 12, from the general fund or any fund named for the
purposes specified in this article, to be available for the fiscal year
indicated for each purpose. The figures
"2026" and "2027" used in this article mean that the
appropriations listed under them are available for the fiscal years ending June
30, 2026, or June 30, 2027, respectively.
"The first year" is fiscal year 2026. "The second year" is fiscal year
2027. "The biennium" is fiscal
years 2026 and 2027.
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
Available for the
Year |
|
|
|
|
|
Ending June 30 |
|
|
|
|
|
2026 |
2027 |
|
Sec. 2. TOTAL
APPROPRIATION |
|
$-0- |
|
$35,862,000 |
|
Subdivision 1. Evaluation
of DHS Structure and Processes |
|
|
|
|
$500,000 in fiscal year
2027 is for a comprehensive evaluation of the Department of Human Services
structure and processes. This is a
onetime appropriation and is available until June 30, 2028.
|
Subd. 2. Assessment
of State, County, and Tribal Nation Roles in Administering Human Services
Programs |
|
|
|
|
$3,000,000 in fiscal year
2027 is for an assessment of state, county, and Tribal Nation roles in
administering human services programs. This
is a onetime appropriation and is available until June 30, 2029.
|
Subd. 3. Base
Level Adjustment |
|
|
|
|
The general fund base is
increased by $18,756,000 in fiscal year 2028 and increased by $16,639,000 in
fiscal year 2029.
|
Sec. 4. CENTRAL
OFFICE; HEALTH CARE |
|
$-0- |
|
$24,795,000 |
Base Level Adjustment The general fund base is increased
by $45,195,000 in fiscal year 2028 and increased by $45,160,000 in fiscal year
2029.
|
Sec. 5. CENTRAL
OFFICE; AGING AND DISABILITY SERVICES |
$-0- |
|
$17,745,000 |
|
Subdivision 1. Market
Rate and Homemaker Services Rate Study |
|
|
|
|
$500,000 in fiscal year
2027 is for a study on rate setting methodologies for services currently
offered under market rate methodologies and homemaker services. This is onetime appropriation and is
available until June 30, 2028.
|
Subd. 2. Waiver
Case Management Study |
|
|
|
|
$300,000 in fiscal year
2027 is for a study on waiver case management services. This is a onetime appropriation and is
available until June 30, 2028.
|
Subd. 3. Base
Level Adjustment |
|
|
|
|
The general fund base is
increased by $28,665,000 in fiscal year 2028 and increased by $29,405,000 in
fiscal year 2029.
|
Sec. 6. CENTRAL OFFICE; BEHAVIORAL HEALTH |
$-0- |
|
$1,634,000 |
|
Subdivision 1. Access
to Services for Incarcerated Individuals Evaluation |
|
|
|
|
$150,000 in fiscal year 2027
is for community engagement and evaluation related reentry services.
|
Subd. 2. Base
Level Adjustment |
|
|
|
|
The general fund base is
increased by $2,094,000 in fiscal year 2028 and increased by $2,077,000 in
fiscal year 2029.
|
Sec. 7. CENTRAL
OFFICE; OFFICE OF INSPECTOR GENERAL |
$-0- |
|
$39,721,000 |
|
Subdivision 1. Appropriations
by Fund |
|
|
|
|
|
Appropriations by Fund |
||
|
|
2026 |
2027 |
|
General Fund |
-0- |
37,708,000 |
|
Special
Government Revenue Fund |
-0- |
2,013,000 |
|
Subd. 2. Base
Level Adjustment |
|
|
|
|
The general fund base is
increased by $38,457,000 in fiscal year 2028 and increased by $38,457,000 in
fiscal year 2029. The special revenue
government fund base is increased by $2,352,000 in fiscal year 2028 and increased by $2,352,000 in fiscal year 2029.
|
Sec. 8. FORECASTED
PROGRAMS; HOUSING SUPPORT |
$-0- |
|
$10,057,000 |
|
Sec. 9. FORECASTED
PROGRAMS; MEDICAL ASSISTANCE |
$-0- |
|
$(64,971,000) |
|
Sec. 10. FORECASTED
PROGRAMS; ALTERNATIVE CARE |
$-0- |
|
$(141,000) |
|
Sec. 11. FORECASTED
PROGRAMS; BEHAVIORAL HEALTH FUND |
$-0- |
|
$(19,248,000) |
|
Sec. 12. GRANT
PROGRAMS; HOUSING GRANTS |
|
$-0- |
|
$192,000 |
|
Sec. 13. GRANT
PROGRAMS; ADULT MENTAL HEALTH GRANTS |
$-0- |
|
$(1,317,000) |
|
Sec. 14. GRANT
PROGRAMS; CHILD MENTAL HEALTH GRANTS |
$-0- |
|
$361,000 |
|
Sec. 15. GRANT
PROGRAMS; SUBSTANCE USE DISORDER GRANTS |
$-0- |
|
$(361,000) |
|
Subd. 4. Central
Office; Aging and Disability Services |
|
(2,664,000) |
|
4,164,000 |
(a) Tribal Vulnerable Adult and Developmental Disabilities Targeted Case Management Medical Assistance Benefit. $200,000 in fiscal year 2025 is for a contract to develop a Tribal vulnerable adult and developmental disabilities targeted case management medical assistance benefit under Minnesota Statutes, section 256B.0924. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2027.
(b) Disability Services Person-Centered Engagement and Navigation Study. $600,000 in fiscal year 2025 is for the disability services person-centered engagement and navigation study. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2026.
(c) Pediatric Hospital-to-Home Transition Pilot Program Administration. $300,000 in fiscal year 2025 is for a
contract related to the pediatric hospital-to-home transition pilot program. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section
16A.28, subdivision 3, this appropriation is available until June 30, 2027
2028.
(d) Reimbursement for Community-First Services and Supports Workers Report. $250,000 in fiscal year 2025 is for a contract related to the reimbursement for community-first services and supports workers report. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2026.
(e) Carryforward Authority. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, $758,000 in fiscal year 2025 is available until June 30, 2026, and $2,687,000 in fiscal year 2025 is available until June 30, 2027.
(f) Base Level Adjustment. The general fund base is increased by $340,000 in fiscal year 2026 and increased by $340,000 in fiscal year 2027.
Sec. 17. Laws 2024, chapter 125, article 8, section 2, subdivision 14, as amended by Laws 2025, First Special Session chapter 9, article 12, section 29, is amended to read:
|
Subd. 14. Grant
Programs; Disabilities Grants |
|
1,650,000 |
|
9,574,000 |
(a) Capital Improvement for Accessibility. $400,000 in fiscal year 2025 is for a payment to Anoka County to make capital improvements to existing space in the Anoka County Human Services building in the city of Blaine, including making
(b) Dakota County Disability Services Workforce Shortage Pilot Project. $500,000 in fiscal year 2025 is for a grant to Dakota County for innovative solutions to the disability services workforce shortage. Up to $250,000 of this amount must be used to develop and test an online application for matching requests for services from people with disabilities to available staff, and up to $250,000 of this amount must be used to develop a communities‑for-all program that engages businesses, community organizations, neighbors, and informal support systems to promote community inclusion of people with disabilities. By October 1, 2026, the commissioner shall report the outcomes and recommendations of these pilot projects to the chairs and ranking minority members of the legislative committees with jurisdiction over human services finance and policy. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2027.
(c) Pediatric Hospital-to-Home Transition Pilot Program. $1,040,000 in fiscal year 2025 is for the
pediatric hospital-to-home pilot program.
This is a onetime appropriation. Notwithstanding
Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is
available until June 30, 2027 2028.
(d) Artists With Disabilities Support. $690,000 in fiscal year 2025 is for a payment to a nonprofit organization licensed under Minnesota Statutes, chapter 245D, located on Minnehaha Avenue West in Saint Paul, and that supports artists with disabilities in creating visual and performing art that challenges society's views of persons with disabilities. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2027.
(e) Emergency Relief Grants for Rural EIDBI Providers. $600,000 in fiscal year 2025 is for emergency relief grants for EIDBI providers. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2027.
(f) Self-Advocacy Grants for Persons with Intellectual and Developmental Disabilities. $250,000 in fiscal year 2025 is for self-advocacy grants under Minnesota Statutes, section 256.477, subdivision 1, paragraph (a), clauses (5) to (7), and for administrative costs. This is a onetime appropriation and is available until June 30, 2027.
(h) Aging and Disability Services for Immigrant and Refugee Communities. $250,000 in fiscal year 2025 is for a payment to SEWA-AIFW to address aging, disability, and mental health needs for immigrant and refugee communities. This is a onetime appropriation and is available until June 30, 2027.
(i) License Transition Support for Small Disability Waiver Providers. $3,150,000 in fiscal year 2025 is for license transition payments to small disability waiver providers. This is a onetime appropriation. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2027.
(j) Own home services provider capacity-building grants. $1,519,000 in fiscal year 2025 is for the own home services provider capacity-building grant program. Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, this appropriation is available until June 30, 2027. This is a onetime appropriation.
(k) Continuation of Centers for Independent Living HCBS Access Grants. $311,000 in fiscal year 2024 is for continued funding of grants awarded under Laws 2021, First Special Session chapter 7, article 17, section 19, as amended by Laws 2022, chapter 98, article 15, section 15. This is a onetime appropriation and is available until June 30, 2025.
(l) Base Level Adjustment. The general fund base is increased by $811,000 in fiscal year 2026 and increased by $811,000 in fiscal year 2027.
Sec. 18. APPROPRIATIONS
GIVEN EFFECT ONCE.
If an appropriation or
transfer in this article is enacted more than once during the 2026 regular
session, the appropriation or transfer must be given effect once.
Sec. 19. EXPIRATION
OF UNCODIFIED LANGUAGE.
All uncodified language
contained in this article expires on June 30, 2027, unless a different
expiration date is explicit.
ARTICLE 10
OTHER AGENCY APPROPRIATIONS
|
Section 1. OTHER
AGENCY APPROPRIATIONS. |
The dollar amounts shown
in the columns marked "Appropriations" are added to or, if shown in
parentheses, are subtracted from the appropriations in Laws 2025, First Special
Session chapter 9, article 14, from the general fund or any fund named for the
purposes specified in this article, to be available for the fiscal year
indicated for each
purpose.
The figures "2026" and "2027" used in this article
mean that the appropriations listed under them are available for the fiscal
years ending June 30, 2026, or June 30, 2027, respectively. "The first year" is fiscal year
2026. "The second year" is
fiscal year 2027. "The
biennium" is fiscal years 2026 and 2027.
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
Available for the
Year |
|
|
|
|
|
Ending June 30 |
|
|
|
|
|
2026 |
2027 |
|
Sec. 2. COMMISSIONER
OF HEALTH; TOTAL APPROPRIATION |
$-0- |
|
$1,125,000 |
The
amounts that may be spent for each purpose are specified in the following
sections.
|
Sec. 3. HEALTH
IMPROVEMENT |
|
$-0- |
|
$1,125,000 |
|
Sec. 4. DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES |
|
|
|
|
Subdivision
1. Operations and Administration:
Agency‑wide Supports |
$-0- |
|
$3,304,000 |
|
Subd. 2. Assessment of State, County, and Tribal Nation Roles in Administering Human Services Programs |
|
|
|
$2,500,000 in fiscal year
2027 is for an assessment of state, county, and Tribal Nation roles in
administering human services programs. This
is a onetime appropriation and is available until June 30, 2029.
Sec. 5. APPROPRIATIONS
GIVEN EFFECT ONCE.
If an appropriation or
transfer in this article is enacted more than once during the 2026 regular
session, the appropriation or transfer must be given effect once.
Sec. 6. EXPIRATION
OF UNCODIFIED LANGUAGE.
All uncodified language contained in this article expires on June 30, 2027, unless a different expiration date is explicit."
Delete the title and insert:
"A bill for an act relating to state government; modifying provisions relating to human services health care, the Department of Human Services Office of Inspector General, background studies, behavioral health services, uniform service standards, aging and disability services, and assisted living facilities; establishing working groups; making technical corrections; requiring reports; appropriating money; amending Minnesota Statutes 2024, sections 13.46, subdivision 7; 13A.03, by adding a subdivision; 142B.01, subdivision 8; 144.292, subdivision 6; 144.294, subdivision 2; 144G.41, subdivision 1, by adding a subdivision; 245.095, subdivisions 2, 5, by adding a subdivision; 245.4661, subdivision 10, by adding subdivisions; 245.4711, subdivision 5; 245.4881, subdivision 5; 245.4882, subdivision 6; 245.735, subdivision 6; 245A.02, subdivision 5a; 245A.07, subdivision 2a; 245A.10, by adding a
The
motion prevailed and the amendment was adopted.
Schomacker moved to amend S. F. No. 4476, the third engrossment, as amended, as follows:
Page 32, line 16, after "of" insert "all"
Page 32, delete subdivision 2
Page 33, delete subdivision 3
Renumber the subdivisions in sequence
Page 33, delete lines 21 to 32
Page 34, line 23, delete everything before "the" and before "report" insert "biannual"
Page 34, line 25, before the period, insert "on activities related to enhanced prepayment review. Each year, the first report is due by June 30 and the second report is due by December 31"
Page 34, delete lines 26 and 27
Page 34, line 28, delete "(2)" and insert "(1)" and delete "the" and delete "the" and before the semicolon, insert "by provider type"
Page 34, line 29, delete "(3)" and insert "(2)"
Page 34, line 31, delete "(4)" and insert "(3)"
Page 276, line 16, delete "35,862,000" and insert "(123,014,000)"
Page 276, line 19, delete "33,849,000" and insert "(125,027,000)"
Page 276, line 22, delete "27,395,000" and insert "28,189,000"
Page 277, line 5, delete "$18,756,000" and insert "$18,600,000"
Page 277, line 6, delete "$16,639,000" and insert "$16,483,000"
Page 278, line 29, delete "(64,971,000)" and insert "(224,641,000)"
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
The
motion prevailed and the amendment was adopted.
Schultz moved to amend S. F. No. 4476, the third engrossment, as amended, as follows:
Page 40, after line 8, insert:
"Sec. 29. Minnesota Statutes 2024, section 256B.0561, subdivision 4, is amended to read:
Subd. 4. Report. (a) By September 1, 2019, and of
each September 1 thereafter year, the commissioner shall submit a
report to the chairs and ranking minority members of the house and senate
committees with jurisdiction over human services finance that includes the
number of cases affected by periodic data matching under this section, the
number of recipients identified as possibly ineligible as a result of a
periodic data match, and the number of recipients whose eligibility was
terminated as a result of a periodic data match. The report must also specify, for recipients
whose eligibility was terminated, how many cases were closed due to failure to
cooperate.
(b) This subdivision expires January 1,
2027 Notwithstanding section 256.01, subdivision 42, this subdivision
does not expire."
Amend the title accordingly
A roll call was requested and properly
seconded.
The question was taken on the Schultz
amendment and the roll was called. There
were 63 yeas and 67 nays as follows:
Those who voted in the affirmative were:
Allen
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bakeberg
Baker
Bennett
Bliss
Burkel
Davids
Davis
Dippel
Dotseth
Duran
Engen
Fogelman
Franson
Gander
Gillman
Gordon
Harder
Heintzeman
Hudson
Igo
Jacob
Joy
Knudsen
Koznick
Kresha
Lawrence
McDonald
Mekeland
Mueller
Murphy
Myers
Nadeau
Nash
Nelson
Niska
Novotny
O'Driscoll
Olson
Quam
Rarick
Repinski
Roach
Robbins
Rymer
Schultz
Scott
Sexton
Skraba
Stier
Swedzinski
Torkelson
Van Binsbergen
Warwas
West
Wiener
Witte
Zeleznikar
Spk. Demuth
Those who voted in the negative were:
Acomb
Agbaje
Bahner
Berg
Bierman
Buck
Carroll
Cha
Clardy
Coulter
Curran
Elkins
Falconer
Feist
Finke
Fischer
Frazier
Frederick
Freiberg
Gomez
Gottfried
Greene
Greenman
Hansen, R.
Hanson, J.
Hicks
Hill
Hollins
Howard
Huot
Hussein
Johnson, P.
Jones
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kozlowski
Kraft
Lee, F.
Lee, K.
Lee, X.
Liebling
Lillie
Long
Luger-Nikolai
Mahamoud
Moller
Momanyi-Hiltsley
Noor
Norris
Pérez-Vega
Pinto
Pursell
Rehm
Rehrauer
Reyer
Sencer-Mura
Smith
Stephenson
Tabke
Vang
Virnig
Wolgamott
Xiong
Youakim
The
motion did not prevail and the amendment was not adopted.
Dippel and Perryman were excused for the
remainder of today's session.
Schultz moved to amend S. F. No. 4476, the third engrossment, as amended, as follows:
Page 271, after line 23, insert:
"Sec. 4. [256K.36]
HOMELESSNESS PROGRAM OUTCOMES.
Subdivision 1. Requirements. The commissioner of human services
must develop and implement a uniform outcome measurement and reporting system
for programs providing shelter or supportive services for persons experiencing
homelessness funded in whole or in part by state funds, including emergency
services grants under section 256E.36, long-term homeless supportive services
under section 256K.26, and Homeless Youth Act grants under section 256K.45.
Subd. 2. Definition. (a) For the purposes of this section,
the terms defined in this subdivision have the meanings given.
(b) "Person experiencing
homelessness" means a person or family lacking a fixed, regular, and
adequate nighttime residence; homeless youth as defined in section 256K.45,
subdivision 1a; households experiencing long-term homelessness as described in
section 256K.26; or a homeless person as the term is used in section 256K.49.
Subd. 3. Uniform
outcome report card; reporting by commissioner. (a) By December 31 of each even‑numbered
year, the commissioner must submit a report to the chairs and ranking minority
members of the legislative committees with jurisdiction over homelessness
policy and finance. The report must
contain the following information by year for each program subject to the
requirements of subdivision 1:
(1) the total number of clients served;
(2) the total cost of the program;
(3) an analysis of the change in the
number of persons experiencing homelessness in Minnesota;
(4) an analysis of the change in
housing opportunities with supportive services;
(5) an analysis of the change in
employability, self-sufficiency, and other social outcomes for persons
experiencing homelessness;
(6) an analysis of the change in the
use of emergency health care, shelter, child protection, corrections, and
similar services used by persons experiencing homelessness;
(7) the total cost of the program per
client; and
(8) the administrative cost of the
program.
(b) The report to the legislature must
contain client information by education level, race and ethnicity, gender, and
geography and a comparison of clients who were in stable housing 90 days
following the last day of receiving shelter or supportive services and those
who were not.
(c) The requirements of this section
apply to programs administered directly by the commissioner of human services
or administered by other organizations under a grant made by the Department of
Human Services.
Subd. 4. Data
to commissioner; uniform report card.
(a) A recipient of a grant or direct appropriation made by or
through the Department of Human Services must report data to the commissioner
of human services by September 1 of each even-numbered year on each of the
items in subdivision 3 for each program it administers. The data must be in a format prescribed by
the commissioner.
(b) Beginning July 1, 2026, the
commissioner of human services shall provide notice to grant applicants and
recipients regarding the data collection and reporting requirements under this
subdivision and must provide technical assistance to applicants and recipients
to assist in complying with the requirements of this section.
Subd. 5. Information. (a) The commissioner of human services
must make the information collected and reported under subdivisions 3 and 4
available on the Department of Human Services' website.
(b) The commissioner must provide analysis of the data
required under subdivision 3.
(c) The analysis under
paragraph (b) must also include an executive summary of program outcomes,
including but not limited to the number of clients served, the cost per client,
whether or not there has been a decrease in the number of persons experiencing
homelessness in Minnesota, and a comparison of program outcomes by client
characteristics.
(d) The data required in the comparative
analysis under paragraph (c) must be presented in both written and graphic
formats.
Subd. 6. Limitations
on appropriations. (a) Except
as provided in paragraph (b), a program that is a recipient of state funds as
of September 1 of an even-numbered year and subject to the requirements of this
section, is not eligible for additional state funds for programs providing
shelter or supportive services for any fiscal year beginning after June 30 of
the following odd-numbered year, unless all of the reporting requirements under
subdivision 4 have been satisfied.
(b) A program with an initial request for funds on or after July 1 in an even-numbered year may be considered for receipt of state funds for programs providing shelter or supportive services for two years only if the program submits a plan that is approved by the commissioner of human services demonstrating how the program will meet the data collection and reporting requirements under subdivision 4. Any subsequent request for funds after an initial request is subject to the requirements of paragraph (a)."
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
A roll call was requested and properly
seconded.
The question was taken on the Schultz
amendment and the roll was called. There
were 62 yeas and 67 nays as follows:
Those who voted in the affirmative were:
Allen
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bakeberg
Baker
Bennett
Bliss
Burkel
Davids
Davis
Dotseth
Duran
Engen
Fogelman
Franson
Gander
Gillman
Gordon
Harder
Heintzeman
Hudson
Igo
Jacob
Joy
Knudsen
Koznick
Kresha
Lawrence
McDonald
Mekeland
Mueller
Murphy
Myers
Nadeau
Nash
Nelson
Niska
Novotny
O'Driscoll
Olson
Quam
Rarick
Repinski
Roach
Robbins
Rymer
Schultz
Scott
Sexton
Skraba
Stier
Swedzinski
Torkelson
Van Binsbergen
Warwas
West
Wiener
Witte
Zeleznikar
Spk. Demuth
Those who voted in the negative were:
Acomb
Agbaje
Bahner
Berg
Bierman
Buck
Carroll
Cha
Clardy
Coulter
Curran
Elkins
Falconer
Feist
Finke
Fischer
Frazier
Frederick
Freiberg
Gomez
Gottfried
Greene
Greenman
Hansen, R.
Hanson, J.
Hicks
Hill
Hollins
Howard
Huot
Hussein
Johnson, P.
Jones
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kozlowski
Kraft
Lee, F.
Lee, K.
Lee, X.
Liebling
Lillie
Long
Luger-Nikolai
Mahamoud
Moller
Momanyi-Hiltsley
Noor
Norris
Pérez-Vega
Pinto
Pursell
Rehm
Rehrauer
Reyer
Sencer-Mura
Smith
Stephenson
Tabke
Vang
Virnig
Wolgamott
Xiong
Youakim
The
motion did not prevail and the amendment was not adopted.
Schultz moved to amend S. F. No. 4476, the third engrossment, as amended, as follows:
Page 40, after line 8, insert:
"Sec. 29. Minnesota Statutes 2024, section 256B.055, subdivision 14, is amended to read:
Subd. 14. Persons detained by law. (a) Medical assistance may be paid for an inmate of a correctional facility who is conditionally released as authorized under section 241.26, 244.065, or 631.425, if the individual does not require the security of a public detention facility and is housed in a halfway house or community correction center, or under house arrest and monitored by electronic surveillance in a residence approved by the commissioner of corrections, and if the individual meets the other eligibility requirements of this chapter.
(b) An individual who is enrolled in medical assistance, and who is charged with a crime and incarcerated for less than 12 months shall be suspended from eligibility at the time of incarceration until the individual is released. Upon release, medical assistance eligibility is reinstated without reapplication using a reinstatement process and form, if the individual is otherwise eligible.
(c) An individual, regardless of age, who is considered an inmate of a public institution as defined in Code of Federal Regulations, title 42, section 435.1010, and who meets the eligibility requirements in section 256B.056, is not eligible for medical assistance, except for covered services received while an inpatient in a medical institution as defined in Code of Federal Regulations, title 42, section 435.1010. Security issues, including costs, related to the inpatient treatment of an inmate are the responsibility of the entity with jurisdiction over the inmate.
(d) Notwithstanding paragraph (a), (b),
or (c), medical assistance does not cover an individual convicted of a crime of
violence as defined in section 624.712, subdivision 5, or a statute from
another state or the United States in conformity with any of those sections.
Sec. 30. Minnesota Statutes 2024, section 256B.055, is amended by adding a subdivision to read:
Subd. 18. Persons convicted of a crime of violence. Notwithstanding any law to the contrary, a person convicted of a crime of violence as defined in section 624.712, subdivision 5, or a statute from another state or the United States in conformity with any of those sections is ineligible to receive medical assistance."
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
A roll call was requested and properly
seconded.
The question was taken on the Schultz
amendment and the roll was called. There
were 53 yeas and 70 nays as follows:
Those who voted in the affirmative were:
Allen
Altendorf
Anderson, P. E.
Backer
Bakeberg
Baker
Bliss
Burkel
Davis
Dotseth
Duran
Engen
Fogelman
Franson
Gander
Gillman
Gordon
Harder
Heintzeman
Hudson
Igo
Jacob
Joy
Koznick
Kresha
Lawrence
McDonald
Mekeland
Murphy
Myers
Nash
Nelson
Niska
Novotny
O'Driscoll
Olson
Rarick
Repinski
Roach
Robbins
Rymer
Schultz
Scott
Sexton
Skraba
Swedzinski
Torkelson
Van Binsbergen
Warwas
West
Wiener
Witte
Spk. Demuth
Those who voted in the negative were:
Acomb
Agbaje
Anderson, P. H.
Bahner
Bennett
Berg
Bierman
Buck
Carroll
Cha
Clardy
Coulter
Curran
Davids
Elkins
Falconer
Feist
Finke
Fischer
Frazier
Frederick
Freiberg
Gomez
Gottfried
Greene
Greenman
Hansen, R.
Hanson, J.
Hicks
Hill
Hollins
Howard
Huot
Hussein
Johnson, P.
Jones
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kozlowski
Kraft
Lee, F.
Lee, K.
Lee, X.
Liebling
Lillie
Long
Luger-Nikolai
Mahamoud
Moller
Momanyi-Hiltsley
Noor
Norris
Pérez-Vega
Pinto
Pursell
Rehm
Rehrauer
Reyer
Sencer-Mura
Smith
Stephenson
Tabke
Vang
Virnig
Wolgamott
Xiong
Youakim
The motion did
not prevail and the amendment was not adopted.
Frederick moved to amend S. F. No. 4476, the third engrossment, as amended, as follows:
Page 128, line 31, delete the comma and insert "or"
Page 128, line 32, delete everything after "provider"
Page 129, line 1, delete "receiving peer recovery support services"
A roll call was requested and properly
seconded.
The question was taken on the Frederick
amendment and the roll was called. There
were 127 yeas and 0 nays as follows:
Those who voted in the affirmative were:
Acomb
Agbaje
Allen
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bahner
Bakeberg
Baker
Bennett
Berg
Bierman
Bliss
Buck
Burkel
Carroll
Cha
Clardy
Coulter
Curran
Davids
Davis
Dotseth
Duran
Elkins
Engen
Falconer
Feist
Finke
Fischer
Fogelman
Franson
Frazier
Frederick
Freiberg
Gander
Gillman
Gomez
Gordon
Gottfried
Greene
Greenman
Hansen, R.
Hanson, J.
Harder
Heintzeman
Hicks
Hill
Hollins
Howard
Hudson
Huot
Hussein
Igo
Jacob
Johnson, P.
Jones
Jordan
Joy
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kozlowski
Koznick
Kraft
Kresha
Lawrence
Lee, F.
Lee, K.
Lee, X.
Liebling
Lillie
Long
Luger-Nikolai
Mahamoud
McDonald
Mekeland
Moller
Momanyi-Hiltsley
Mueller
Murphy
Myers
Nadeau
Nash
Nelson
Niska
Noor
Norris
Novotny
O'Driscoll
Olson
Pérez-Vega
Pinto
Pursell
Quam
Rarick
Rehm
Rehrauer
Repinski
Reyer
Roach
Robbins
Rymer
Schultz
Scott
Sencer-Mura
Sexton
Skraba
Smith
Stephenson
Stier
Swedzinski
Tabke
Torkelson
Van Binsbergen
Vang
Virnig
Warwas
West
Wiener
Witte
Wolgamott
Xiong
Youakim
Spk. Demuth
The
motion prevailed and the amendment was adopted.
Schultz moved to amend S. F. No. 4476, the third engrossment, as amended, as follows:
Page 271, after line 23, insert:
"Sec. 2. [245.0953]
ELIGIBILITY TO RECEIVE PUBLIC MONEY; FINANCIAL SCREENING.
(a) Any provider, vendor, or individual
seeking to enroll, become licensed, receive grant money, or register in any
program administered by the commissioner must provide:
(1) proof that the provider, vendor, or
individual has performed services during the most recent three-year period that
are substantially similar to those for which the provider, vendor, or
individual is seeking to receive public money;
(2) financial records for the most
recent three-year period; and
(3) for a provider, vendor, or
individual that is a business or nonprofit organization, evidence of
registration and good standing with the secretary of state for the most recent
three-year period.
(b) For purposes of providing financial
records pursuant to this section:
(1) a nonprofit organization must
provide the Form 990 or Form 990-EZ filed with the Internal Revenue Service in
the three most recent years; and
(2) any other provider, vendor, or individual must provide audit reports of its financial statements from the three most recent years performed by an independent third party in accordance with generally accepted accounting principles."
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
A roll call was requested and properly
seconded.
The question was taken on the Schultz
amendment and the roll was called. There were 62 yeas and 67 nays as
follows:
Those who voted in the affirmative were:
Allen
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bakeberg
Baker
Bennett
Bliss
Burkel
Davids
Davis
Dotseth
Duran
Engen
Fogelman
Franson
Gander
Gillman
Gordon
Harder
Heintzeman
Hudson
Igo
Jacob
Joy
Knudsen
Koznick
Kresha
Lawrence
McDonald
Mekeland
Mueller
Murphy
Myers
Nadeau
Nash
Nelson
Niska
Novotny
O'Driscoll
Olson
Quam
Rarick
Repinski
Roach
Robbins
Rymer
Schultz
Scott
Sexton
Skraba
Stier
Swedzinski
Torkelson
Van Binsbergen
Warwas
West
Wiener
Witte
Zeleznikar
Spk. Demuth
Those who voted in the negative were:
Acomb
Agbaje
Bahner
Berg
Bierman
Buck
Carroll
Cha
Clardy
Coulter
Curran
Elkins
Falconer
Feist
Finke
Fischer
Frazier
Frederick
Freiberg
Gomez
Gottfried
Greene
Greenman
Hansen, R.
Hanson, J.
Hicks
Hill
Hollins
Howard
Huot
Hussein
Johnson, P.
Jones
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kozlowski
Kraft
Lee, F.
Lee, K.
Lee, X.
Liebling
Lillie
Long
Luger-Nikolai
Mahamoud
Moller
Momanyi-Hiltsley
Noor
Norris
Pérez-Vega
Pinto
Pursell
Rehm
Rehrauer
Reyer
Sencer-Mura
Smith
Stephenson
Tabke
Vang
Virnig
Wolgamott
Xiong
Youakim
The
motion did not prevail and the amendment was not adopted.
Schultz moved to amend S. F. No. 4476, the third engrossment, as amended, as follows:
Page 274, after line 27, insert:
"Sec. 6. Minnesota Statutes 2024, section 609.456, subdivision 2, is amended to read:
Subd. 2. Legislative auditor. (a) Whenever an employee or officer of the state, University of Minnesota, or other organization listed in section 3.971, subdivision 6, discovers evidence of theft, embezzlement, or unlawful use of public funds or property, the employee or officer shall, except when to do so would knowingly impede or otherwise interfere with an ongoing criminal investigation, promptly report in writing to the legislative auditor a detailed description of the alleged incident or incidents.
(b) A person who violates paragraph (a)
is guilty of a gross misdemeanor.
EFFECTIVE DATE. This section is effective August 1, 2026, and applies to crimes committed on or after that date."
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
A roll call was requested and properly
seconded.
The question was taken on the Schultz
amendment and the roll was called. There
were 61 yeas and 67 nays as follows:
Those who voted in the affirmative were:
Allen
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bakeberg
Baker
Bennett
Bliss
Burkel
Davids
Davis
Dotseth
Duran
Engen
Fogelman
Franson
Gander
Gillman
Gordon
Harder
Heintzeman
Hudson
Igo
Jacob
Joy
Knudsen
Koznick
Kresha
Lawrence
Mekeland
Mueller
Murphy
Myers
Nadeau
Nash
Nelson
Niska
Novotny
O'Driscoll
Olson
Quam
Rarick
Repinski
Roach
Robbins
Rymer
Schultz
Scott
Sexton
Skraba
Stier
Swedzinski
Torkelson
Van Binsbergen
Warwas
West
Wiener
Witte
Zeleznikar
Spk. Demuth
Those who voted in the negative were:
Acomb
Agbaje
Bahner
Berg
Bierman
Buck
Carroll
Cha
Clardy
Coulter
Curran
Elkins
Falconer
Feist
Finke
Fischer
Frazier
Frederick
Freiberg
Gomez
Gottfried
Greene
Greenman
Hansen, R.
Hanson, J.
Hicks
Hill
Hollins
Howard
Huot
Hussein
Johnson, P.
Jones
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kozlowski
Kraft
Lee, F.
Lee, K.
Lee, X.
Liebling
Lillie
Long
Luger-Nikolai
Mahamoud
Moller
Momanyi-Hiltsley
Noor
Norris
Pérez-Vega
Pinto
Pursell
Rehm
Rehrauer
Reyer
Sencer-Mura
Smith
Stephenson
Tabke
Vang
Virnig
Wolgamott
Xiong
Youakim
The
motion did not prevail and the amendment was not adopted.
Roach offered an amendment to
S. F. No. 4476, the third engrossment, as amended.
POINT OF
ORDER
West raised a point of order pursuant to
rule 3.21 that the Roach amendment was not in order. Speaker pro tempore Olson ruled the point of
order well taken and the Roach amendment out of order.
Engen moved to amend S. F. No. 4476, the third engrossment, as amended, as follows:
Page 10, line 29, strike "may" and insert "shall"
The
motion prevailed and the amendment was adopted.
Page 77, line 10, strike "may" and insert "shall"
The
motion prevailed and the amendment was adopted.
Engen moved to amend S. F. No. 4476, the third engrossment, as amended, as follows:
Page 83, after line 29, insert:
"Sec. 6. Minnesota Statutes 2024, section 245A.07, is amended by adding a subdivision to read:
Subd. 8. Statewide
payment prohibition following fraud conviction. (a) Notwithstanding any other
provision of law, no state agency, department, board, commission, or other
entity of the executive branch of state government may make any payment, grant,
contract award, reimbursement, or other transfer of state funds, including
funds administered through medical assistance, human services programs, or any
other program, to any individual, entity, organization, or controlling
individual who has been convicted of fraud, including but not limited to fraud
under section 609.52; health care fraud; or any federal or state offense
involving false claims, theft by swindle, or deception in connection with a
government program or contract.
(b) This prohibition applies to:
(1) any simultaneous or future payments
after the date of conviction;
(2) any direct or indirect payments,
including through subcontractors, affiliates, or related entities where the
convicted party exercises control or ownership; and
(3) payments under any program administered by any state agency.
(c) For purposes of this subdivision:
(1) "convicted" includes a
guilty plea, verdict of guilty, finding of guilt by a court or jury, or any
equivalent disposition, including a stay of adjudication or diversion program
where fraud is admitted or found, whether in Minnesota or another jurisdiction;
(2) "controlling individual"
has the meaning given in section 142B.01, subdivision 8, or analogous
definitions in other chapters; and
(3) the commissioner of human services, or the head of the relevant agency, shall maintain and publish a list of prohibited individuals and entities, which all state agencies must consult before making payments. Agencies must check this list, or equivalent exclusion lists, on a monthly basis.
(d) This prohibition does not apply to
payments required by federal law that cannot be withheld without loss of
federal funding, or to payments for services already rendered prior to the
conviction where withholding would violate due process, subject to recovery
rights under subdivision 1c. The agency
head may petition the court for authority to withhold disputed payments.
EFFECTIVE DATE. This section is effective the day following final enactment and applies to convictions entered on or after January 1, 1984."
Amend the title accordingly
A roll call was requested and properly
seconded.
The question was taken on the Engen
amendment and the roll was called. There
were 61 yeas and 68 nays as follows:
Those who voted in the affirmative were:
Allen
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bakeberg
Baker
Bennett
Bliss
Burkel
Davids
Davis
Dotseth
Duran
Engen
Fogelman
Franson
Gander
Gillman
Gordon
Harder
Heintzeman
Hudson
Igo
Jacob
Joy
Knudsen
Koznick
Lawrence
McDonald
Mekeland
Mueller
Murphy
Myers
Nadeau
Nash
Nelson
Niska
Novotny
O'Driscoll
Olson
Quam
Rarick
Repinski
Roach
Robbins
Rymer
Schultz
Scott
Sexton
Skraba
Stier
Swedzinski
Torkelson
Van Binsbergen
Warwas
West
Wiener
Witte
Zeleznikar
Spk. Demuth
Those who voted in the negative were:
Acomb
Agbaje
Bahner
Berg
Bierman
Buck
Carroll
Cha
Clardy
Coulter
Curran
Elkins
Falconer
Feist
Finke
Fischer
Frazier
Frederick
Freiberg
Gomez
Gottfried
Greene
Greenman
Hansen, R.
Hanson, J.
Hicks
Hill
Hollins
Howard
Huot
Hussein
Johnson, P.
Jones
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kozlowski
Kraft
Kresha
Lee, F.
Lee, K.
Lee, X.
Liebling
Lillie
Long
Luger-Nikolai
Mahamoud
Moller
Momanyi-Hiltsley
Noor
Norris
Pérez-Vega
Pinto
Pursell
Rehm
Rehrauer
Reyer
Sencer-Mura
Smith
Stephenson
Tabke
Vang
Virnig
Wolgamott
Xiong
Youakim
The
motion did not prevail and the amendment was not adopted.
Engen moved to amend S. F. No. 4476, the third engrossment, as amended, as follows:
Page 83, after line 29, insert:
"Sec. 6. [245A.073]
WHISTLEBLOWER INCENTIVES AND PROTECTIONS.
(a) The commissioner shall establish an internal employee fraud reward program paying up to five percent of recovered funds to whistleblowers providing original information leading to recovery, consistent with federal False Claims Act models. Strong antiretaliation protections apply.
(b) The Office of the
Inspector General shall publish annual anonymized case summaries of significant
fraud cases and recoveries the internal employee fraud reward program led to. "
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
A roll call was requested and properly
seconded.
The question was taken on the Engen
amendment and the roll was called. There
were 60 yeas and 68 nays as follows:
Those who voted in the affirmative were:
Allen
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bakeberg
Baker
Bennett
Bliss
Burkel
Davids
Davis
Dotseth
Duran
Engen
Fogelman
Franson
Gander
Gillman
Gordon
Harder
Heintzeman
Hudson
Igo
Jacob
Joy
Knudsen
Koznick
Lawrence
McDonald
Mekeland
Mueller
Murphy
Myers
Nadeau
Nash
Nelson
Niska
Novotny
O'Driscoll
Olson
Quam
Rarick
Repinski
Robbins
Rymer
Schultz
Scott
Sexton
Skraba
Stier
Swedzinski
Torkelson
Van Binsbergen
Warwas
West
Wiener
Witte
Zeleznikar
Spk. Demuth
Those who voted in the negative were:
Acomb
Agbaje
Bahner
Berg
Bierman
Buck
Carroll
Cha
Clardy
Coulter
Curran
Elkins
Falconer
Feist
Finke
Fischer
Frazier
Frederick
Freiberg
Gomez
Gottfried
Greene
Greenman
Hansen, R.
Hanson, J.
Hicks
Hill
Hollins
Howard
Huot
Hussein
Johnson, P.
Jones
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kozlowski
Kraft
Kresha
Lee, F.
Lee, K.
Lee, X.
Liebling
Lillie
Long
Luger-Nikolai
Mahamoud
Moller
Momanyi-Hiltsley
Noor
Norris
Pérez-Vega
Pinto
Pursell
Rehm
Rehrauer
Reyer
Sencer-Mura
Smith
Stephenson
Tabke
Vang
Virnig
Wolgamott
Xiong
Youakim
The
motion did not prevail and the amendment was not adopted.
S. F. No. 4476, A bill for an act relating to state government; modifying provisions relating to human services continuity of care, aging and disability services, and behavioral health services; modifying provisions relating to health regulation of certain long-term care facilities and agencies; modifying provisions relating to Direct Care and Treatment; requiring reports; establishing working groups; providing for civil penalties; permitting retrieval fee for records; providing for transfers and cancellation of money; appropriating money; amending Minnesota Statutes 2024, sections 15.43, subdivision 3; 62A.135, subdivision 1; 62A.46, subdivision 2; 72A.13, subdivision 1; 144.0724, by adding a subdivision; 144.121, subdivision 9; 144.1503, subdivision 7; 144.292, subdivision 6; 144A.291, subdivision 2; 144A.471, subdivision 8; 144G.09, subdivision 2; 144G.15; 144G.16, by adding a subdivision; 144G.195, subdivision 1; 144G.31, subdivision 7; 144G.40, by adding a subdivision; 144G.41, subdivisions 1, 2, by adding a subdivision; 144G.45, subdivision 3; 144G.60, subdivision 4; 144G.61, subdivision 2; 144G.63, subdivisions 2, 5, by adding a subdivision; 245A.04, subdivisions 2, 2a; 245A.042, by adding a
The bill was read for the third time, as
amended, and placed upon its final passage.
The question was taken on the passage of
the bill and the roll was called. There
were 107 yeas and 21 nays as follows:
Those who voted in the affirmative were:
Acomb
Agbaje
Allen
Anderson, P. H.
Backer
Bahner
Baker
Berg
Bierman
Bliss
Buck
Carroll
Cha
Clardy
Coulter
Curran
Davids
Dotseth
Duran
Elkins
Falconer
Feist
Finke
Fischer
Franson
Frazier
Frederick
Freiberg
Gander
Gillman
Gomez
Gordon
Gottfried
Greene
Greenman
Hansen, R.
Hanson, J.
Heintzeman
Hicks
Hill
Hollins
Howard
Hudson
Huot
Hussein
Igo
Johnson, P.
Jones
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kozlowski
Koznick
Kraft
Kresha
Lee, F.
Lee, K.
Lee, X.
Liebling
Lillie
Long
Luger-Nikolai
Mahamoud
McDonald
Moller
Momanyi-Hiltsley
Mueller
Myers
Nadeau
Nash
Nelson
Niska
Noor
Norris
Novotny
O'Driscoll
Pérez-Vega
Pinto
Pursell
Rarick
Rehm
Rehrauer
Repinski
Reyer
Robbins
Schomacker
Scott
Sencer-Mura
Sexton
Skraba
Smith
Stephenson
Swedzinski
Tabke
Torkelson
Vang
Virnig
Warwas
West
Witte
Wolgamott
Xiong
Youakim
Zeleznikar
Spk. Demuth
Those who voted in the negative were:
Altendorf
Anderson, P. E.
Bakeberg
Bennett
Burkel
Davis
Fogelman
Harder
Jacob
Joy
Knudsen
Lawrence
Mekeland
Murphy
Olson
Quam
Roach
Rymer
Schultz
Stier
Wiener
The
bill was passed, as amended, and its title agreed to.
MOTIONS
AND RESOLUTIONS, Continued
MOTION FOR
CALENDAR FOR THE DAY
Pursuant to House Rule 1.21
and the notice given on Monday, May 4, 2026, Frazier moved that H. F. No. 3658
be placed on and be considered first on the Calendar for the Day for Tuesday,
May 12, 2026.
A roll call was requested and
properly seconded.
The question was taken on the
Frazier motion and the roll was called.
There were 67 yeas and 61 nays as follows:
Those who voted in the
affirmative were:
Acomb
Agbaje
Bahner
Berg
Bierman
Buck
Carroll
Cha
Clardy
Coulter
Curran
Elkins
Falconer
Feist
Finke
Fischer
Frazier
Frederick
Freiberg
Gomez
Gottfried
Greene
Greenman
Hansen, R.
Hanson, J.
Hicks
Hill
Hollins
Howard
Huot
Hussein
Johnson, P.
Jones
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kozlowski
Kraft
Lee, F.
Lee, K.
Lee, X.
Liebling
Lillie
Long
Luger-Nikolai
Mahamoud
Moller
Momanyi-Hiltsley
Noor
Norris
Pérez-Vega
Pinto
Pursell
Rehm
Rehrauer
Reyer
Sencer-Mura
Smith
Stephenson
Tabke
Vang
Virnig
Wolgamott
Xiong
Youakim
Those who voted in the
negative were:
Allen
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bakeberg
Baker
Bennett
Bliss
Burkel
Davids
Davis
Dotseth
Duran
Engen
Fogelman
Franson
Gander
Gillman
Gordon
Harder
Heintzeman
Hudson
Igo
Jacob
Joy
Knudsen
Koznick
Kresha
Lawrence
McDonald
Mekeland
Mueller
Murphy
Nash
Nelson
Niska
Novotny
O'Driscoll
Olson
Quam
Rarick
Repinski
Roach
Robbins
Rymer
Schomacker
Schultz
Scott
Sexton
Skraba
Stier
Swedzinski
Torkelson
Van Binsbergen
Warwas
West
Wiener
Witte
Zeleznikar
Spk. Demuth
Pursuant to House Rule 1.21,
paragraph 4, relating to the Calendar for the Day, not having received the
required 68 votes, the motion did not prevail.
MOTION FOR
CALENDAR FOR THE DAY
Pursuant to House Rule 1.21
and the notice given on Monday, May 4, 2026, Hicks moved that S. F. No. 3210 be
placed on and be considered first on the Calendar for the Day for Tuesday, May
12, 2026.
A roll call
was requested and properly seconded.
The question was taken on the
Hicks motion and the roll was called.
There were 68 yeas and 57 nays as follows:
Those who voted in the
affirmative were:
Acomb
Agbaje
Bahner
Berg
Bierman
Buck
Carroll
Cha
Clardy
Coulter
Curran
Elkins
Engen
Falconer
Feist
Finke
Fischer
Frazier
Frederick
Freiberg
Gomez
Gottfried
Greene
Greenman
Hansen, R.
Hanson, J.
Hicks
Hill
Hollins
Howard
Huot
Hussein
Johnson, P.
Jones
Jordan
Keeler
Klevorn
Koegel
Kotyza-Witthuhn
Kozlowski
Kraft
Lee, F.
Lee, K.
Lee, X.
Liebling
Lillie
Long
Luger-Nikolai
Mahamoud
Moller
Momanyi-Hiltsley
Noor
Norris
Pérez-Vega
Pinto
Pursell
Rehm
Rehrauer
Reyer
Sencer-Mura
Smith
Stephenson
Tabke
Vang
Virnig
Wolgamott
Xiong
Youakim
Those who voted in the
negative were:
Allen
Altendorf
Anderson, P. E.
Anderson, P. H.
Backer
Bakeberg
Baker
Bennett
Bliss
Burkel
Davids
Davis
Dotseth
Duran
Fogelman
Franson
Gander
Gillman
Gordon
Harder
Heintzeman
Hudson
Igo
Jacob
Joy
Knudsen
Koznick
Kresha
Lawrence
McDonald
Mekeland
Murphy
Nash
Nelson
Niska
Novotny
O'Driscoll
Olson
Rarick
Repinski
Roach
Robbins
Rymer
Schomacker
Schultz
Scott
Sexton
Skraba
Stier
Swedzinski
Torkelson
Van Binsbergen
Warwas
West
Wiener
Witte
Spk. Demuth
The
motion prevailed.
Moller introduced:
House Resolution No. 11, A House resolution expressing the sense of the House condemning the practice of extrajudicial, summary, or arbitrary killings and upholding the principles contained within the Minnesota Protocol.
The resolution was referred to the Committee on Rules and Legislative Administration.
Nadeau introduced:
House
Resolution No. 12, A House resolution designating May 3 to 9, 2026, as
Tardive Dyskinesia Awareness Week.
The resolution was referred to the Committee on Rules and Legislative Administration.
There being no objection, the
order of business reverted to Messages from the Senate.
MESSAGES
FROM THE SENATE
The
following messages were received from the Senate:
Madam Speaker:
I hereby announce the passage by the Senate of the following House File, herewith returned:
H. F. No. 4987, A bill for an act relating to transportation; providing for certain local highway designations; designating a portion of Ramsey County State-Aid Highway 96 as "Master Sergeant Nicole Amor Memorial Highway"; proposing coding for new law in Minnesota Statutes, chapter 160.
Thomas S. Bottern, Secretary of the Senate
Madam Speaker:
I hereby announce the passage by the Senate of the following Senate File, herewith transmitted:
S. F. No. 3720.
Thomas S. Bottern, Secretary of the Senate
FIRST READING OF SENATE BILLS
S. F. No. 3720, A bill for an act relating to workers' compensation; adopting 2026 recommendations of the Workers' Compensation Advisory Council; amending Minnesota Statutes 2024, sections 79.34, subdivisions 3, 4; 79.35; 79.36; 79.362; 79.38, subdivision 1; 175A.05, by adding a subdivision; 176.011, subdivision 15; 176.081, subdivision 9; 176.101, subdivision 2a; 176.155, subdivision 1; 176.221, subdivision 1; 176.322; repealing Minnesota Statutes 2024, sections 79.34, subdivision 2a; 79.361; 79.363.
The bill was read for the first time.
Baker moved that S. F. No. 3720 and H. F. No. 4598, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
ADJOURNMENT
Niska moved that when the
House adjourns today it adjourn until 11:00 a.m., Tuesday, May 12, 2026. The motion prevailed.
Niska moved that the House
adjourn. The motion prevailed, and
Speaker pro tempore Olson declared the House stands adjourned until 11:00 a.m.,
Tuesday, May 12, 2026.
Patrick Duffy Murphy, Chief Clerk, House of Representatives