Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4201

STATE OF MINNESOTA

 

Journal of the House

 

NINETY-FOURTH SESSION - 2025

 

_____________________

 

FORTY-SECOND LEGISLATIVE DAY

 

Saint Paul, Minnesota, Monday, May 19, 2025

 

 

      The House of Representatives convened at 11:00 a.m. and was called to order by Lisa Demuth, Speaker of the House.

 

      Prayer was offered by Deacon Patrick Kirsch, St. Boniface, St. Bonifacius and Immaculate Conception, Watertown, 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

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

Greenman

Hansen, R.

Hanson, J.

Harder

Heintzeman

Hemmingsen-Jaeger

Her

Hicks

Hill

Hollins

Hortman

Howard

Hudson

Huot

Hussein

Igo

Jacob

Johnson, P.

Johnson, W.

Jones

Jordan

Joy

Keeler

Klevorn

Knudsen

Koegel

Kotyza-Witthuhn

Kozlowski

Koznick

Kraft

Kresha

Lawrence

Lee, F.

Lee, K.

Liebling

Lillie

Long

Mahamoud

McDonald

Mekeland

Moller

Momanyi-Hiltsley

Mueller

Murphy

Myers

Nadeau

Nash

Nelson

Niska

Noor

Norris

Novotny

O'Driscoll

Olson

Pérez-Vega

Perryman

Pinto

Pursell

Quam

Rarick

Rehm

Rehrauer

Repinski

Reyer

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


 

      A quorum was present.

 

      Pursuant to Rule 10.05, relating to Remote House Operations, the DFL Caucus Leader permitted the following members to vote via remote means between the hours of 11:00 a.m. and 1:00 p.m.:  Her, Hill and Kotyza‑Witthuhn.


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       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 STANDING COMMITTEES AND DIVISIONS

 

 

Stephenson and Torkelson from the Committee on Ways and Means to which was referred:

 

S. F. No. 2884, A bill for an act relating to retirement; Minnesota State Retirement System, making administrative changes, increasing the formula multiplier and the postretirement adjustment for the general state employees retirement plan, and increasing the postretirement adjustment for the legislators and unclassified retirement plans; Public Employees Retirement Association, making administrative and conforming changes, increasing the cap on the postretirement adjustment for the general employees retirement plan, expanding the privatization requirements and revising the method for calculating withdrawal liability; implementing the recommendations of the MSRS correctional plan eligibility work group, the amortization work group, and the State Auditor's fire relief association working group; increasing the employer contribution maximum for the higher education supplemental retirement plan; increasing the maximum lump-sum benefit level for defined benefit firefighter relief associations; Minnesota Secure Choice Retirement Program, making administrative and policy changes, authorizing the commissioner of employment and economic development to disclose information to the executive director, and adding penalties for noncompliance; modifying the pension fund executive directors' authority to correct errors and modifying the annual reporting requirement; repealing the investment business recipient disclosure reporting requirement for firefighter relief associations; establishing a work group on pension plans for probation officers and 911 telecommunicators; modifying circumstances for terminating state and supplemental employer contributions; modifying certain public safety benefits; providing certain teacher retirement association benefit increases; modifying duty disability and health insurance continuation for peace officers and firefighters; making technical changes, clarifications, and corrections to the statutes governing the Legislative Commission on Pensions and Retirement, the statewide volunteer firefighter plan, IRAP to TRA transfers, fire state aid and police and firefighter retirement supplemental state aid, and the public employees defined contribution plan; modifying practices for reporting and repealing certain reporting requirements for the State Board of Investment; eliminating obsolete provisions; appropriating money; amending Minnesota Statutes 2024, sections 3.85, subdivisions 2, 3, 10; 11A.07, subdivisions 4, 4b; 124E.12, subdivisions 4, 6; 126C.10, subdivision 37; 181.101; 187.03, subdivisions 5, 7, 7a, by adding a subdivision; 187.05, subdivisions 4, 6, by adding a subdivision; 187.07, subdivisions 1, 2, 3, 6; 187.08, subdivisions 3, 7; 187.11; 268.19, subdivision 1; 299A.465, subdivision 1; 352.01, by adding a subdivision; 352.029, subdivision 3; 352.03, subdivision 5; 352.115, subdivision 3; 352.22, subdivisions 2b, 3; 352.90; 352.92, subdivision 2a; 352.93, subdivision 1; 352.955, subdivision 1; 352B.02, subdivision 1c; 353.01, subdivisions 2a, 2b, 2d; 353.028, subdivisions 2, 3; 353.032, subdivisions 3, 4, 5, 6, 7, 9, 10; 353.27, subdivision 3a; 353.34, subdivision 5; 353.65, subdivision 3b; 353D.01, subdivision 2; 353D.02, subdivisions 1, 2, 3, 4, 5, 6, 7; 353E.06, subdivision 1; 353F.01; 353F.02, subdivisions 3, 4b, 5a, 6, by adding subdivisions; 353F.025; 353F.03; 353F.04; 353F.05; 353F.051, subdivisions 1, 2; 353F.052; 353F.057; 353F.06; 353F.07; 353F.08; 353F.09; 353G.08, subdivision 1a; 353G.11, subdivisions 2, 2a, by adding a subdivision; 353G.17, subdivisions 4, 5; 353G.19, subdivisions 1, 2, 3, 4, 5; 354.42, subdivision 3; 354.44, subdivision 6; 354B.215, subdivisions 3, 4; 356.215, subdivisions 1, 4, 8, 11, 17; 356.24, subdivision 1; 356.415, subdivisions 1, 1b, 1c, 1d, 1e; 356.633, subdivisions 1, 2, by adding a subdivision; 356.636, subdivisions 2, 3; 423A.022, subdivisions 2, 3, 5; 424A.014, subdivisions 2, 5; 424A.015, subdivision 4; 424A.016, subdivisions 2, 6; 424A.02, subdivision 3; 424A.05, subdivision 3; 424A.06, subdivision 2; 424A.08; 424A.092, subdivisions 2, 3, 4; 424A.093, subdivision 5; 424B.22, subdivisions 1, 2, 3, by adding a subdivision; 477B.02, subdivisions 3, 8; 477B.03, subdivisions 5, 7; 477B.04, subdivisions 3, 4; 490.123, subdivision 5; proposing coding for new law in Minnesota Statutes, chapters 187; 352; 352B; 356; repealing Minnesota Statutes 2024, sections 11A.27; 352.91, subdivisions 1, 2, 2a, 3c, 3d, 3e, 3f, 3g, 3h, 3i, 3j, 4a, 4b, 4c, 6; 353F.02, subdivision 4a; 356.635, subdivision 9; 356A.06, subdivision 5; 424A.015, subdivision 5.

 

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

 

      The report was adopted.


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SECOND READING OF SENATE BILLS

 

 

      S. F. No. 2884 was read for the second time.

 

 

INTRODUCTION AND FIRST READING OF HOUSE BILLS

 

 

      The following House File was introduced:

 

 

      Kraft, Franson, Frederick, Gander, Jones and Coulter introduced:

 

H. F. No. 3347, A bill for an act relating to liquor; authorizing various municipalities to issue liquor licenses; modifying certain requirements of liquor licenses issued to the Board of Regents of the University of Minnesota; amending Minnesota Statutes 2024, sections 340A.404, subdivisions 2b, 4a; 340A.412, subdivision 4; Laws 2017, First Special Session chapter 4, article 5, section 12.

 

The bill was read for the first time and referred to the Committee on Commerce Finance and Policy.

 

 

      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.

 

 

      The following Conference Committee Report was received:

 

 

CONFERENCE COMMITTEE REPORT ON H. F. No. 2115

 

A bill for an act relating to human services; modifying policy provisions relating to aging and disability services, the Department of Health, Direct Care and Treatment, behavioral health, and the Department of Human Services Office of Inspector General; recodifying statutory language relating to assertive community treatment and intensive residential treatment services; modifying children's mental health terminology; codifying requirement for notification of federal approval; making conforming changes; amending Minnesota Statutes 2024, sections 3.757, subdivision 1; 13.46, subdivisions 3, 4; 15.471, subdivision 6; 43A.241; 62J.495, subdivision 2; 62Q.527, subdivisions 1, 2, 3; 97A.441, subdivision 3; 121A.61, subdivision 3; 128C.02, subdivision 5; 142E.51, subdivisions 5, 6, by adding a subdivision; 142G.02, subdivision 56; 142G.27, subdivision 4; 142G.42, subdivision 3; 144.0724, subdivisions 2, 3a, 4, 9; 144.53; 144.651, subdivisions 2, 4, 10a, 20, 31, 32; 144A.07; 144A.61, by adding subdivisions; 144A.70, subdivisions 3, 7, by adding subdivisions; 144G.10, subdivisions 1, 1a, 5; 144G.16, subdivision 3; 144G.19, by adding a subdivision; 144G.52, by adding a subdivision; 144G.53; 144G.70, subdivision 2; 144G.81, subdivision 1; 144G.91, by adding a subdivision; 146A.08, subdivision 4; 147.091, subdivision 6; 147A.13, subdivision 6; 148.10, subdivision 1; 148.235, subdivision 10; 148.261, subdivision 5; 148.754;


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148B.5905; 148F.09, subdivision 6; 148F.11, subdivision 1; 150A.08, subdivision 6; 151.071, subdivision 10; 153.21, subdivision 2; 153B.70; 169A.284; 244.052, subdivision 4; 245.462, subdivision 4; 245.4662, subdivision 1; 245.4682, subdivision 3; 245.469; 245.481; 245.4835, subdivision 2; 245.4863; 245.487, subdivision 2; 245.4871, subdivisions 3, 4, 6, 13, 15, 17, 19, 21, 22, 28, 29, 31, 32, 34, by adding a subdivision; 245.4873, subdivision 2; 245.4874, subdivision 1; 245.4875, subdivision 5; 245.4876, subdivisions 4, 5; 245.4877; 245.488, subdivisions 1, 3; 245.4881, subdivisions 1, 3, 4; 245.4882, subdivisions 1, 5; 245.4884; 245.4885, subdivision 1; 245.4889, subdivision 1; 245.4901, subdivision 3; 245.4906, subdivision 2; 245.4907, subdivisions 2, 3; 245.491, subdivision 2; 245.492, subdivision 3; 245.50, subdivision 2; 245.52; 245.697, subdivision 2a; 245.735, subdivision 3b; 245.814, subdivision 3; 245.826; 245.91, subdivisions 2, 4; 245.92; 245.94, subdivision 1; 245A.03, subdivision 2; 245A.04, subdivisions 1, 7; 245A.16, subdivision 1; 245A.242, subdivision 2; 245A.26, subdivisions 1, 2; 245C.05, by adding a subdivision; 245C.08, subdivision 3; 245C.22, subdivision 5; 245D.02, subdivision 4a; 245D.091, subdivision 3; 245F.06, subdivision 2; 245G.05, subdivision 1; 245G.06, subdivisions 1, 2a, 3a; 245G.07, subdivision 2; 245G.08, subdivision 6; 245G.09, subdivision 3; 245G.11, subdivisions 7, 11; 245G.18, subdivision 2; 245G.19, subdivision 4, by adding a subdivision; 245G.22, subdivisions 1, 14, 15; 245I.05, subdivisions 3, 5; 245I.06, subdivision 3; 245I.11, subdivision 5; 245I.12, subdivision 5; 246.585; 246C.06, subdivision 11; 246C.12, subdivisions 4, 6; 246C.20; 252.27, subdivision 1; 252.291, subdivision 3; 252.43; 252.46, subdivision 1a; 252.50, subdivision 5; 253B.07, subdivision 2b; 253B.09, subdivision 3a; 253B.10, subdivision 1; 253B.141, subdivision 2; 253B.18, subdivision 6; 253B.19, subdivision 2; 253D.14, subdivision 3; 253D.27, subdivision 2; 253D.28; 253D.29, subdivisions 1, 2, 3; 253D.30, subdivisions 3, 4, 5, 6; 253D.31; 254A.19, subdivision 6; 254B.04, subdivision 1a; 254B.05, subdivisions 1, 1a, 5; 256.01, subdivisions 2, 5, by adding a subdivision; 256.019, subdivision 1; 256.0281; 256.0451, subdivisions 1, 3, 6, 8, 9, 18, 22, 23, 24; 256.478, subdivision 2; 256.4825; 256.93, subdivision 1; 256.98, subdivisions 1, 7; 256B.02, subdivision 11; 256B.055, subdivision 12; 256B.0615, subdivisions 1, 3, 4; 256B.0616, subdivisions 1, 4, 5; 256B.0622, subdivisions 1, 3a, 7a, 8, 11, 12; 256B.064, subdivision 1a; 256B.0757, subdivision 2; 256B.092, subdivisions 1a, 10, 11a; 256B.0943, subdivisions 1, 3, 9, 12, 13; 256B.0945, subdivision 1; 256B.0946, subdivision 6; 256B.0947, subdivision 3a; 256B.49, subdivisions 13, 29; 256B.4911, subdivision 6; 256B.4914, subdivisions 10a, 10d; 256B.69, subdivision 23; 256B.77, subdivision 7a; 256B.82; 256D.44, subdivision 5; 256G.09, subdivisions 4, 5; 256I.04, subdivision 2c; 256L.03, subdivision 5; 256R.38; 256R.40, subdivision 5; 260B.157, subdivision 3; 260C.007, subdivisions 16, 26d, 27b; 260C.157, subdivision 3; 260C.201, subdivisions 1, 2; 260C.301, subdivision 4; 260D.01; 260D.02, subdivisions 5, 9; 260D.03, subdivision 1; 260D.04; 260D.06, subdivision 2; 260D.07; 260E.11, subdivision 3; 295.50, subdivision 9b; 299F.77, subdivision 2; 342.04; 352.91, subdivision 3f; 401.17, subdivision 1; 480.40, subdivision 1; 507.071, subdivision 1; 611.57, subdivisions 2, 4; 624.7131, subdivisions 1, 2; 624.7132, subdivisions 1, 2; 624.714, subdivisions 3, 4; 631.40, subdivision 3; Laws 2023, chapter 70, article 7, section 34; proposing coding for new law in Minnesota Statutes, chapters 245; 246C; 256B; 256G; 609; repealing Minnesota Statutes 2024, sections 144G.9999, subdivisions 1, 2, 3; 245.4862; 245A.042, subdivisions 2, 3, 4; 245A.11, subdivision 8; 246.015, subdivision 3; 246.50, subdivision 2; 246B.04, subdivision 1a; 256B.0622, subdivision 4; Laws 2024, chapter 79, article 1, sections 15; 16; 17; Minnesota Rules, part 9505.0250, subparts 1, 2, 3.

 

May 15, 2025

The Honorable Lisa M.  Demuth

Speaker of the House of Representatives

 

The Honorable Bobby Joe Champion

President of the Senate

 

We, the undersigned conferees for H. F. No. 2115 report that we have agreed upon the items in dispute and recommend as follows:

 

That the Senate recede from its amendments and that H. F. No. 2115 be further amended as follows:


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Delete everything after the enacting clause and insert:

 

"ARTICLE 1

AGING AND DISABILITY SERVICES

 

Section 1.  Minnesota Statutes 2024, section 144.0724, subdivision 2, is amended to read:

 

Subd. 2.  Definitions.  For purposes of this section, the following terms have the meanings given.

 

(a) "Assessment reference date" or "ARD" means the specific end point for look-back periods in the MDS assessment process.  This look-back period is also called the observation or assessment period.

 

(b) "Case mix index" means the weighting factors assigned to the case mix reimbursement classifications determined by an assessment.

 

(c) "Index maximization" means classifying a resident who could be assigned to more than one category, to the category with the highest case mix index.

 

(d) "Minimum Data Set" or "MDS" means a core set of screening, clinical assessment, and functional status elements, that include common definitions and coding categories specified by the Centers for Medicare and Medicaid Services and designated by the Department of Health.

 

(e) "Representative" means a person who is the resident's guardian or conservator, the person authorized to pay the nursing home expenses of the resident, a representative of the Office of Ombudsman for Long-Term Care whose assistance has been requested, or any other individual designated by the resident.

 

(f) "Activities of daily living" or "ADL" includes personal hygiene, dressing, bathing, transferring, bed mobility, locomotion, eating, and toileting.

 

(g) "Nursing facility level of care determination" means the assessment process that results in a determination of a resident's or prospective resident's need for nursing facility level of care as established in subdivision 11 for purposes of medical assistance payment of long-term care services for:

 

(1) nursing facility services under chapter 256R;

 

(2) elderly waiver services under chapter 256S;

 

(3) CADI and BI waiver services under section 256B.49; and

 

(4) state payment of alternative care services under section 256B.0913.

 

(h) "Patient Driven Payment Model" or "PDPM" means the case mix reimbursement classification system for residents in nursing facilities based on the resident's condition, diagnosis, and the care the resident received at the time of the MDS assessment with an ARD on or after October 1, 2025.

 

(i) "Resource utilization group" or "RUG" means the case mix reimbursement classification system for residents in nursing facilities according to the resident's clinical and functional status as reflected in data supplied by the facility's MDS with an ARD on or before September 30, 2025.

 

EFFECTIVE DATE.  This section is effective October 1, 2025, and applies to assessments conducted on or after that date.


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Sec. 2.  Minnesota Statutes 2024, section 144A.071, subdivision 4a, is amended to read:

 

Subd. 4a.  Exceptions for replacement beds.  It is in the best interest of the state to ensure that nursing homes and boarding care homes continue to meet the physical plant licensing and certification requirements by permitting certain construction projects.  Facilities should be maintained in condition to satisfy the physical and emotional needs of residents while allowing the state to maintain control over nursing home expenditure growth.

 

The commissioner of health in coordination with the commissioner of human services, may approve the renovation, replacement, upgrading, or relocation of a nursing home or boarding care home, under the following conditions:

 

(a) to license or certify beds in a new facility constructed to replace a facility or to make repairs in an existing facility that was destroyed or damaged after June 30, 1987, by fire, lightning, or other hazard provided:

 

(i) destruction was not caused by the intentional act of or at the direction of a controlling person of the facility;

 

(ii) at the time the facility was destroyed or damaged the controlling persons of the facility maintained insurance coverage for the type of hazard that occurred in an amount that a reasonable person would conclude was adequate;

 

(iii) the net proceeds from an insurance settlement for the damages caused by the hazard are applied to the cost of the new facility or repairs;

 

(iv) the number of licensed and certified beds in the new facility does not exceed the number of licensed and certified beds in the destroyed facility; and

 

(v) the commissioner determines that the replacement beds are needed to prevent an inadequate supply of beds.

 

Project construction costs incurred for repairs authorized under this clause shall not be considered in the dollar threshold amount defined in subdivision 2;

 

(b) to license or certify beds that are moved from one location to another within a nursing home facility, provided the total costs of remodeling performed in conjunction with the relocation of beds does not exceed $1,000,000;

 

(c) to license or certify beds in a project recommended for approval under section 144A.073;

 

(d) to license or certify beds that are moved from an existing state nursing home to a different state facility, provided there is no net increase in the number of state nursing home beds;

 

(e) to certify and license as nursing home beds boarding care beds in a certified boarding care facility if the beds meet the standards for nursing home licensure, or in a facility that was granted an exception to the moratorium under section 144A.073, and if the cost of any remodeling of the facility does not exceed $1,000,000.  If boarding care beds are licensed as nursing home beds, the number of boarding care beds in the facility must not increase beyond the number remaining at the time of the upgrade in licensure.  The provisions contained in section 144A.073 regarding the upgrading of the facilities do not apply to facilities that satisfy these requirements;

 

(f) to license and certify up to 40 beds transferred from an existing facility owned and operated by the Amherst H.  Wilder Foundation in the city of St. Paul to a new unit at the same location as the existing facility that will serve persons with Alzheimer's disease and other related disorders.  The transfer of beds may occur gradually or in stages, provided the total number of beds transferred does not exceed 40.  At the time of licensure and certification of a bed or beds in the new unit, the commissioner of health shall delicense and decertify the same number of beds in the


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existing facility.  As a condition of receiving a license or certification under this clause, the facility must make a written commitment to the commissioner of human services that it will not seek to receive an increase in its property-related payment rate as a result of the transfers allowed under this paragraph;

 

(g) (f) to license and certify nursing home beds to replace currently licensed and certified boarding care beds which may be located either in a remodeled or renovated boarding care or nursing home facility or in a remodeled, renovated, newly constructed, or replacement nursing home facility within the identifiable complex of health care facilities in which the currently licensed boarding care beds are presently located, provided that the number of boarding care beds in the facility or complex are decreased by the number to be licensed as nursing home beds and further provided that, if the total costs of new construction, replacement, remodeling, or renovation exceed ten percent of the appraised value of the facility or $200,000, whichever is less, the facility makes a written commitment to the commissioner of human services that it will not seek to receive an increase in its property-related payment rate by reason of the new construction, replacement, remodeling, or renovation.  The provisions contained in section 144A.073 regarding the upgrading of facilities do not apply to facilities that satisfy these requirements;

 

(h) (g) to license as a nursing home and certify as a nursing facility a facility that is licensed as a boarding care facility but not certified under the medical assistance program, but only if the commissioner of human services certifies to the commissioner of health that licensing the facility as a nursing home and certifying the facility as a nursing facility will result in a net annual savings to the state general fund of $200,000 or more;

 

(i) to certify, after September 30, 1992, and prior to July 1, 1993, existing nursing home beds in a facility that was licensed and in operation prior to January 1, 1992;

 

(j) to license and certify new nursing home beds to replace beds in a facility acquired by the Minneapolis Community Development Agency as part of redevelopment activities in a city of the first class, provided the new facility is located within three miles of the site of the old facility.  Operating and property costs for the new facility must be determined and allowed under section 256B.431 or 256B.434 or chapter 256R;

 

(k) to license and certify up to 20 new nursing home beds in a community-operated hospital and attached convalescent and nursing care facility with 40 beds on April 21, 1991, that suspended operation of the hospital in April 1986.  The commissioner of human services shall provide the facility with the same per diem property-related payment rate for each additional licensed and certified bed as it will receive for its existing 40 beds;

 

(l) (h) to license or certify beds in renovation, replacement, or upgrading projects as defined in section 144A.073, subdivision 1, so long as the cumulative total costs of the facility's remodeling projects do not exceed $1,000,000;

 

(m) to license and certify beds that are moved from one location to another for the purposes of converting up to five four-bed wards to single or double occupancy rooms in a nursing home that, as of January 1, 1993, was county‑owned and had a licensed capacity of 115 beds;

 

(n) to allow a facility that on April 16, 1993, was a 106-bed licensed and certified nursing facility located in Minneapolis to layaway all of its licensed and certified nursing home beds.  These beds may be relicensed and recertified in a newly constructed teaching nursing home facility affiliated with a teaching hospital upon approval by the legislature.  The proposal must be developed in consultation with the interagency committee on long-term care planning.  The beds on layaway status shall have the same status as voluntarily delicensed and decertified beds, except that beds on layaway status remain subject to the surcharge in section 256.9657.  This layaway provision expires July 1, 1998;


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(o) to allow a project which will be completed in conjunction with an approved moratorium exception project for a nursing home in southern Cass County and which is directly related to that portion of the facility that must be repaired, renovated, or replaced, to correct an emergency plumbing problem for which a state correction order has been issued and which must be corrected by August 31, 1993;

 

(p) (i) to allow a facility that on April 16, 1993, was a 368-bed licensed and certified nursing facility located in Minneapolis to layaway, upon 30 days prior written notice to the commissioner, up to 30 of the facility's licensed and certified beds by converting three-bed wards to single or double occupancy.  Beds on layaway status shall have the same status as voluntarily delicensed and decertified beds except that beds on layaway status remain subject to the surcharge in section 256.9657, remain subject to the license application and renewal fees under section 144A.07 and shall be subject to a $100 per bed reactivation fee.  In addition, at any time within three years of the effective date of the layaway, the beds on layaway status may be:;

 

(1) relicensed and recertified upon relocation and reactivation of some or all of the beds to an existing licensed and certified facility or facilities located in Pine River, Brainerd, or International Falls; provided that the total project construction costs related to the relocation of beds from layaway status for any facility receiving relocated beds may not exceed the dollar threshold provided in subdivision 2 unless the construction project has been approved through the moratorium exception process under section 144A.073;

 

(2) relicensed and recertified, upon reactivation of some or all of the beds within the facility which placed the beds in layaway status, if the commissioner has determined a need for the reactivation of the beds on layaway status.

 

The property-related payment rate of a facility placing beds on layaway status must be adjusted by the incremental change in its rental per diem after recalculating the rental per diem as provided in section 256B.431, subdivision 3a, paragraph (c).  The property-related payment rate for a facility relicensing and recertifying beds from layaway status must be adjusted by the incremental change in its rental per diem after recalculating its rental per diem using the number of beds after the relicensing to establish the facility's capacity day divisor, which shall be effective the first day of the month following the month in which the relicensing and recertification became effective.  Any beds remaining on layaway status more than three years after the date the layaway status became effective must be removed from layaway status and immediately delicensed and decertified;

 

(q) to license and certify beds in a renovation and remodeling project to convert 12 four-bed wards into 24 two‑bed rooms, expand space, and add improvements in a nursing home that, as of January 1, 1994, met the following conditions:  the nursing home was located in Ramsey County; had a licensed capacity of 154 beds; and had been ranked among the top 15 applicants by the 1993 moratorium exceptions advisory review panel.  The total project construction cost estimate for this project must not exceed the cost estimate submitted in connection with the 1993 moratorium exception process;

 

(r) to license and certify up to 117 beds that are relocated from a licensed and certified 138-bed nursing facility located in St. Paul to a hospital with 130 licensed hospital beds located in South St. Paul, provided that the nursing facility and hospital are owned by the same or a related organization and that prior to the date the relocation is completed the hospital ceases operation of its inpatient hospital services at that hospital.  After relocation, the nursing facility's status shall be the same as it was prior to relocation.  The nursing facility's property-related payment rate resulting from the project authorized in this paragraph shall become effective no earlier than April 1, 1996.  For purposes of calculating the incremental change in the facility's rental per diem resulting from this project, the allowable appraised value of the nursing facility portion of the existing health care facility physical plant prior to the renovation and relocation may not exceed $2,490,000;

 

(s) to license and certify two beds in a facility to replace beds that were voluntarily delicensed and decertified on June 28, 1991;


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(t)
(j) to allow 16 licensed and certified beds located on July 1, 1994, in a 142-bed nursing home and 21-bed boarding care home facility in Minneapolis, notwithstanding the licensure and certification after July 1, 1995, of the Minneapolis facility as a 147-bed nursing home facility after completion of a construction project approved in 1993 under section 144A.073, to be laid away upon 30 days' prior written notice to the commissioner.  Beds on layaway status shall have the same status as voluntarily delicensed or decertified beds except that they shall remain subject to the surcharge in section 256.9657.  The 16 beds on layaway status may be relicensed as nursing home beds and recertified at any time within five years of the effective date of the layaway upon relocation of some or all of the beds to a licensed and certified facility located in Watertown, provided that the total project construction costs related to the relocation of beds from layaway status for the Watertown facility may not exceed the dollar threshold provided in subdivision 2 unless the construction project has been approved through the moratorium exception process under section 144A.073.;

 

The property-related payment rate of the facility placing beds on layaway status must be adjusted by the incremental change in its rental per diem after recalculating the rental per diem as provided in section 256B.431, subdivision 3a, paragraph (c).  The property-related payment rate for the facility relicensing and recertifying beds from layaway status must be adjusted by the incremental change in its rental per diem after recalculating its rental per diem using the number of beds after the relicensing to establish the facility's capacity day divisor, which shall be effective the first day of the month following the month in which the relicensing and recertification became effective.  Any beds remaining on layaway status more than five years after the date the layaway status became effective must be removed from layaway status and immediately delicensed and decertified;

 

(u) to license and certify beds that are moved within an existing area of a facility or to a newly constructed addition which is built for the purpose of eliminating three- and four-bed rooms and adding space for dining, lounge areas, bathing rooms, and ancillary service areas in a nursing home that, as of January 1, 1995, was located in Fridley and had a licensed capacity of 129 beds;

 

(v) to relocate 36 beds in Crow Wing County and four beds from Hennepin County to a 160-bed facility in Crow Wing County, provided all the affected beds are under common ownership;

 

(w) to license and certify a total replacement project of up to 49 beds located in Norman County that are relocated from a nursing home destroyed by flood and whose residents were relocated to other nursing homes.  The operating cost payment rates for the new nursing facility shall be determined based on the interim and settle-up payment provisions of section 256R.27 and the reimbursement provisions of chapter 256R.  Property-related reimbursement rates shall be determined under section 256R.26, taking into account any federal or state flood‑related loans or grants provided to the facility;

 

(x) to license and certify to the licensee of a nursing home in Polk County that was destroyed by flood in 1997 replacement projects with a total of up to 129 beds, with at least 25 beds to be located in Polk County and up to 104 beds distributed among up to three other counties.  These beds may only be distributed to counties with fewer than the median number of age intensity adjusted beds per thousand, as most recently published by the commissioner of human services.  If the licensee chooses to distribute beds outside of Polk County under this paragraph, prior to distributing the beds, the commissioner of health must approve the location in which the licensee plans to distribute the beds.  The commissioner of health shall consult with the commissioner of human services prior to approving the location of the proposed beds.  The licensee may combine these beds with beds relocated from other nursing facilities as provided in section 144A.073, subdivision 3c.  The operating payment rates for the new nursing facilities shall be determined based on the interim and settle-up payment provisions of Minnesota Rules, parts 9549.0010 to 9549.0080.  Property-related reimbursement rates shall be determined under section 256R.26.  If the replacement beds permitted under this paragraph are combined with beds from other nursing facilities, the rates shall be calculated as the weighted average of rates determined as provided in this paragraph and section 256R.50;


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(y) to license and certify beds in a renovation and remodeling project to convert 13 three-bed wards into 13 two‑bed rooms and 13 single-bed rooms, expand space, and add improvements in a nursing home that, as of January 1, 1994, met the following conditions:  the nursing home was located in Ramsey County, was not owned by a hospital corporation, had a licensed capacity of 64 beds, and had been ranked among the top 15 applicants by the 1993 moratorium exceptions advisory review panel.  The total project construction cost estimate for this project must not exceed the cost estimate submitted in connection with the 1993 moratorium exception process;

 

(z) to license and certify up to 150 nursing home beds to replace an existing 285 bed nursing facility located in St. Paul.  The replacement project shall include both the renovation of existing buildings and the construction of new facilities at the existing site.  The reduction in the licensed capacity of the existing facility shall occur during the construction project as beds are taken out of service due to the construction process.  Prior to the start of the construction process, the facility shall provide written information to the commissioner of health describing the process for bed reduction, plans for the relocation of residents, and the estimated construction schedule.  The relocation of residents shall be in accordance with the provisions of law and rule;

 

(aa) to allow the commissioner of human services to license an additional 36 beds to provide residential services for the physically disabled under Minnesota Rules, parts 9570.2000 to 9570.3400, in a 198-bed nursing home located in Red Wing, provided that the total number of licensed and certified beds at the facility does not increase;

 

(bb) to license and certify a new facility in St. Louis County with 44 beds constructed to replace an existing facility in St. Louis County with 31 beds, which has resident rooms on two separate floors and an antiquated elevator that creates safety concerns for residents and prevents nonambulatory residents from residing on the second floor.  The project shall include the elimination of three- and four-bed rooms;

 

(cc) (k) to license and certify four beds in a 16-bed certified boarding care home in Minneapolis to replace beds that were voluntarily delicensed and decertified on or before March 31, 1992.  The licensure and certification is conditional upon the facility periodically assessing and adjusting its resident mix and other factors which may contribute to a potential institution for mental disease declaration.  The commissioner of human services shall retain the authority to audit the facility at any time and shall require the facility to comply with any requirements necessary to prevent an institution for mental disease declaration, including delicensure and decertification of beds, if necessary;

 

(dd) to license and certify 72 beds in an existing facility in Mille Lacs County with 80 beds as part of a renovation project.  The renovation must include construction of an addition to accommodate ten residents with beginning and midstage dementia in a self-contained living unit; creation of three resident households where dining, activities, and support spaces are located near resident living quarters; designation of four beds for rehabilitation in a self-contained area; designation of 30 private rooms; and other improvements;

 

(ee) (l) to license and certify beds in a facility that has undergone replacement or remodeling as part of a planned closure under section 256R.40; or

 

(ff) to license and certify a total replacement project of up to 124 beds located in Wilkin County that are in need of relocation from a nursing home significantly damaged by flood.  The operating cost payment rates for the new nursing facility shall be determined based on the interim and settle-up payment provisions of section 256R.27 and the reimbursement provisions of chapter 256R.  Property-related reimbursement rates shall be determined under section 256R.26, taking into account any federal or state flood-related loans or grants provided to the facility;

 

(gg) to allow the commissioner of human services to license an additional nine beds to provide residential services for the physically disabled under Minnesota Rules, parts 9570.2000 to 9570.3400, in a 240-bed nursing home located in Duluth, provided that the total number of licensed and certified beds at the facility does not increase;


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(hh) to license and certify up to 120 new nursing facility beds to replace beds in a facility in Anoka County, which was licensed for 98 beds as of July 1, 2000, provided the new facility is located within four miles of the existing facility and is in Anoka County.  Operating and property rates shall be determined and allowed under chapter 256R and Minnesota Rules, parts 9549.0010 to 9549.0080; or

 

(ii) to transfer up to 98 beds of a 129-licensed bed facility located in Anoka County that, as of March 25, 2001, is in the active process of closing, to a 122-licensed bed nonprofit nursing facility located in the city of Columbia Heights or its affiliate.  The transfer is effective when the receiving facility notifies the commissioner in writing of the number of beds accepted.  The commissioner shall place all transferred beds on layaway status held in the name of the receiving facility.  The layaway adjustment provisions of section 256B.431, subdivision 30, do not apply to this layaway.  The receiving facility may only remove the beds from layaway for recertification and relicensure at the receiving facility's current site, or at a newly constructed facility located in Anoka County.  The receiving facility must receive statutory authorization before removing these beds from layaway status, or may remove these beds from layaway status if removal from layaway status is part of a moratorium exception project approved by the commissioner under section 144A.073.

 

(m) to license or certify beds under the provisions previously coded as Minnesota Statutes 2024, section 144A.071, subdivision 4a, paragraphs (f), (i) to (k), (m) to (bb), and (dd) to (ii).

 

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

 

Sec. 3.  Minnesota Statutes 2024, section 144A.071, subdivision 4d, is amended to read:

 

Subd. 4d.  Consolidation of nursing facilities.  (a) The commissioner of health, in consultation with the commissioner of human services, may approve a request for net savings from a consolidation of nursing facilities which includes to be applied to reduce the costs of a moratorium exception project application under section 144A.073, subdivision 2.  For purposes of this subdivision, "consolidation" means the closure of one or more facilities and the upgrading of the physical plant of the remaining nursing facility or facilities, the costs of which exceed the threshold project limit under subdivision 2, clause (a).  The commissioners shall consider the criteria in this section, section 144A.073, and section 256R.40, in approving or rejecting a consolidation proposal.  In the event the commissioners approve the request, the commissioner of human services shall calculate an external fixed costs rate adjustment according to clauses (1) to (3):.

 

(1) the closure of beds shall not be eligible for a planned closure rate adjustment under section 256R.40, subdivision 5;

 

(2) the construction project permitted in this clause shall not be eligible for a threshold project rate adjustment under section 256B.434, subdivision 4f, or a moratorium exception adjustment under section 144A.073; and

 

(3) the payment rate for external fixed costs for a remaining facility or facilities shall be increased by an amount equal to 65 percent of the projected net cost savings to the state calculated in paragraph (b), divided by the state's medical assistance percentage of medical assistance dollars, and then divided by estimated medical assistance resident days, as determined in paragraph (c), of the remaining nursing facility or facilities in the request in this paragraph.  The rate adjustment is effective on the first day of the month of January or July, whichever date occurs first following both the completion of the construction upgrades in the consolidation plan and the complete closure of the facility or facilities designated for closure in the consolidation plan.  If more than one facility is receiving upgrades in the consolidation plan, each facility's date of construction completion must be evaluated separately.


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(b) For purposes of calculating the net cost savings to the state, the commissioner shall consider clauses (1) to (7) (6):

 

(1) the annual savings from estimated medical assistance payments from the net number of beds closed taking into consideration only beds that are in active service on the date of the request and that have been in active service for at least three years;

 

(2) the estimated annual cost of increased case load of individuals receiving services under the elderly waiver;

 

(3) the estimated annual cost of elderly waiver recipients receiving support under housing support under chapter 256I;

 

(4) the estimated annual cost of increased case load of individuals receiving services under the alternative care program;

 

(5) the annual loss of license surcharge payments on closed beds; and

 

(6) the savings from not paying planned closure rate adjustments that the facilities would otherwise be eligible for under section 256R.40; and

 

(7) (6) the savings from not paying external fixed costs payment rate adjustments providing a rate adjustment from submission of renovation costs that would otherwise be eligible as threshold projects under section 256B.434, subdivision 4f.

 

(c) For purposes of the calculation in paragraph (a), clause (3), the estimated medical assistance resident days of the remaining facility or facilities shall be computed assuming 95 percent occupancy multiplied by the historical percentage of medical assistance resident days of the remaining facility or facilities, as reported on the facility's or facilities' most recent nursing facility statistical and cost report filed before the plan of closure is submitted, multiplied by 365.

 

(d) (c) For purposes of calculating net cost of savings to the state in paragraph (b), the average occupancy percentages will be those reported on the facility's or facilities' most recent nursing facility statistical and cost report filed before the plan of closure is submitted, and the average payment rates shall be calculated based on the approved payment rates in effect at the time the consolidation request is submitted.

 

(e) To qualify for the external fixed costs payment rate adjustment under this subdivision, the closing facilities shall:

 

(1) submit an application for closure according to section 256R.40, subdivision 2; and

 

(2) follow the resident relocation provisions of section 144A.161.

 

(f) (d) The county or counties in which a facility or facilities are closed under this subdivision shall not be eligible for designation as a hardship area under subdivision 3 for five years from the date of the approval of the proposed consolidation.  The applicant shall notify the county of this limitation and the county shall acknowledge this in a letter of support.

 

(g) Projects approved on or after March 1, 2020, are not subject to paragraph (a), clauses (2) and (3), and paragraph (c).  The 65 (e) Sixty-five percent of the projected net cost savings to the state calculated in paragraph (b) must be applied to the moratorium cost of the project and the remainder must be added to the moratorium funding under section 144A.073, subdivision 11.


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(h)
(f) Consolidation project applications not approved by the commissioner prior to March 1, 2020, are subject to the moratorium process under section 144A.073, subdivision 2.  Upon request by the applicant, the commissioner may extend this deadline to August 1, 2020, so long as the facilities, bed numbers, and counties specified in the original application are not altered.  Proposals from facilities seeking approval for a consolidation project prior to March 1, 2020, must be received by the commissioner no later than January 1, 2020.  This paragraph expires August 1, 2020.

 

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

 

Sec. 4.  Minnesota Statutes 2024, section 144A.1888, is amended to read:

 

144A.1888 REUSE OF FACILITIES.

 

Notwithstanding any local ordinance related to development, planning, or zoning to the contrary, the conversion or reuse of a nursing home that closes or that curtails, reduces, or changes operations shall be considered a conforming use permitted under local law, provided that the facility is converted to another long-term care service approved by a regional planning group under section 256R.40 that serves a smaller number of persons than the number of persons served before the closure or curtailment, reduction, or change in operations.

 

Sec. 5.  Minnesota Statutes 2024, 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 have competencies in one of 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) 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; or

 

(3) be a board-certified behavior analyst or board-certified assistant behavior analyst by the Behavior Analyst Certification Board, Incorporated.

 

(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;


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(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

 

(v) eight hours of instruction on principles of person-centered thinking;

 

(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).

 

Sec. 6.  Minnesota Statutes 2024, section 245D.10, is amended by adding a subdivision to read:

 

Subd. 1a.  Prohibited condition of service provision.  A license holder is prohibited from requiring a person to have or obtain a guardian or conservator as a condition of receiving or continuing to receive services regulated under this chapter.

 

Sec. 7.  Minnesota Statutes 2024, section 252.28, subdivision 2, is amended to read:

 

Subd. 2.  Rules; program standards; licenses.  The commissioner of human services shall:

 

(1) Establish uniform rules and program standards for each type of residential and day facility or service for persons with developmental disabilities, including state hospitals under control of the executive board and serving persons with developmental disabilities, and excluding persons with developmental disabilities residing with their families.

 

(2) Grant licenses according to the provisions of Laws 1976, chapter 243, sections 2 to 13 chapter 245A.

 

Sec. 8.  Minnesota Statutes 2024, section 252.41, subdivision 3, is amended to read:

 

Subd. 3.  Day services for adults with disabilities.  (a) "Day services for adults with disabilities" or "day services" means services that:

 

(1) include supervision, training, assistance, support, facility-based work-related activities, or other community‑integrated activities designed and implemented in accordance with the support plan and support plan addendum required under sections 245D.02, subdivision 4, paragraphs (b) and (c), subdivisions 4b and 4c, and 256B.092, subdivision 1b, and Minnesota Rules, part 9525.0004, subpart 12, to help an adult reach and maintain the highest possible level of independence, productivity, and integration into the community;

 

(2) include day support services, prevocational services, day training and habilitation services, structured day services, and adult day services as defined in Minnesota's federally approved disability waiver plans; and

 

(3) include day training and habilitation services; and

 

(4) are provided by a vendor licensed under sections 245A.01 to 245A.16, 245D.27 to 245D.31, 252.28, subdivision 2, or 252.41 to 252.46, or Minnesota Rules, parts 9525.1200 to 9525.1330, to provide day services.


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(b) Day services reimbursable under this section do not include special education and related services as defined in the Education of the Individuals with Disabilities Act, United States Code, title 20, chapter 33, section 1401, clauses (6) and (17), or vocational services funded under section 110 of the Rehabilitation Act of 1973, United States Code, title 29, section 720, as amended.

 

(c) Day services do not include employment exploration, employment development, or employment support services as defined in the home and community-based services waivers for people with disabilities authorized under sections 256B.092 and 256B.49.

 

Sec. 9.  Minnesota Statutes 2024, section 252.42, is amended to read:

 

252.42 SERVICE PRINCIPLES.

 

The design and delivery of services eligible for reimbursement should reflect the following principles:

 

(1) services must suit a person's chronological age and be provided in the least restrictive environment possible, consistent with the needs identified in the person's support plan and support plan addendum required under sections 245D.02, subdivisions 4b and 4c, and 256B.092, subdivision 1b, and 245D.02, subdivision 4, paragraphs (b) and (c), and Minnesota Rules, part 9525.0004, subpart 12;

 

(2) a person with a disability whose individual support plans and support plan addendums authorize employment or employment-related activities shall be given the opportunity to participate in employment and employment‑related activities in which nondisabled persons participate;

 

(3) a person with a disability participating in work shall be paid wages commensurate with the rate for comparable work and productivity except as regional centers are governed by section 246.151;

 

(4) a person with a disability shall receive services which include services offered in settings used by the general public and designed to increase the person's active participation in ordinary community activities;

 

(5) a person with a disability shall participate in the patterns, conditions, and rhythms of everyday living and working that are consistent with the norms of the mainstream of society.

 

Sec. 10.  Minnesota Statutes 2024, section 252.43, is amended to read:

 

252.43 COMMISSIONER'S DUTIES.

 

(a) The commissioner shall supervise lead agencies' provision of day services to adults with disabilities.  The commissioner shall:

 

(1) determine the need for day programs services, except for adult day services, under sections 256B.4914 and 252.41 to 252.46 operated in a day services facility licensed under sections 245D.27 to 245D.31;

 

(2) establish payment rates as provided under section 256B.4914;

 

(3) (2) adopt rules for the administration and provision of day services under sections 245A.01 to 245A.16; 252.28, subdivision 2; or 252.41 to 252.46; or Minnesota Rules, parts 9525.1200 to 9525.1330;

 

(4) (3) enter into interagency agreements necessary to ensure effective coordination and provision of day services;


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(5)
(4) monitor and evaluate the costs and effectiveness of day services; and

 

(6) (5) provide information and technical help to lead agencies and vendors in their administration and provision of day services.

 

(b) A determination of need in paragraph (a), clause (1), shall not be required for a change in day service provider name or ownership.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 11.  Minnesota Statutes 2024, section 252.44, is amended to read:

 

252.44 LEAD AGENCY BOARD RESPONSIBILITIES.

 

When the need for day services in a county or tribe has been determined under section 252.28 252.43, the board of commissioners for that lead agency shall:

 

(1) authorize the delivery of day services according to the support plans and support plan addendums required as part of the lead agency's provision of case management services under sections 256B.0913, subdivision 8; 256B.092, subdivision 1b;, and 256B.49, subdivision 15;, and 256S.10 and Minnesota Rules, parts 9525.0004 to 9525.0036;

 

(2) ensure that transportation is provided or arranged by the vendor in the most efficient and reasonable way possible; and

 

(3) monitor and evaluate the cost and effectiveness of the services.

 

Sec. 12.  Minnesota Statutes 2024, section 252.45, is amended to read:

 

252.45 VENDOR'S DUTIES.

 

A day service vendor enrolled with the commissioner is responsible for items under clauses (1), (2), and (3), and extends only to the provision of services that are reimbursable under state and federal law.  A vendor providing day services shall:

 

(1) provide the amount and type of services authorized in the individual service plan under the support plan and support plan addendum required under sections 245D.02, subdivision 4, paragraphs (b) and (c) subdivisions 4b and 4c, and 256B.092, subdivision 1b, and Minnesota Rules, part 9525.0004, subpart 12;

 

(2) design the services to achieve the outcomes assigned to the vendor in the support plan and support plan addendum required under sections 245D.02, subdivision 4, paragraphs (a) and (b) subdivisions 4b and 4c, and 256B.092, subdivision 1b, and Minnesota Rules, part 9525.0004, subpart 12;

 

(3) provide or arrange for transportation of persons receiving services to and from service sites;

 

(4) enter into agreements with community-based intermediate care facilities for persons with developmental disabilities to ensure compliance with applicable federal regulations; and

 

(5) comply with state and federal law.


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Sec. 13.  Minnesota Statutes 2024, section 252.46, subdivision 1a, is amended to read:

 

Subd. 1a.  Day training and habilitation rates.  (a) The commissioner shall establish a statewide rate-setting methodology rates for all day training and habilitation services as provided under section 256B.4914.  The rate‑setting methodology must abide by the principles of transparency and equitability across the state.  The methodology must involve a uniform process of structuring rates for each service and must promote quality and participant choice and for transportation delivered as a part of day training and habilitation services.

 

(b) The commissioner shall consult with community partners prior to modifying rates under this subdivision.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.

 

Sec. 14.  Minnesota Statutes 2024, section 256.01, subdivision 29, is amended to read:

 

Subd. 29.  State medical review team.  (a) To ensure the timely processing of determinations of disability by the commissioner's state medical review team under sections 256B.055, subdivisions 7, paragraph (b), and 12, and 256B.057, subdivision 9, the commissioner shall review all medical evidence and seek information from providers, applicants, and enrollees to support the determination of disability where necessary.  Disability shall be determined according to the rules of title XVI and title XIX of the Social Security Act and pertinent rules and policies of the Social Security Administration.

 

(b) Medical assistance providers must grant the state medical review team access to electronic health records held by the medical assistance providers, when available, to support efficient and accurate disability determinations.

 

(c) Medical assistance providers shall accept electronically signed authorizations to release medical records provided by the state medical review team.

 

(b) (d) Prior to a denial or withdrawal of a requested determination of disability due to insufficient evidence, the commissioner shall (1) ensure that the missing evidence is necessary and appropriate to a determination of disability, and (2) assist applicants and enrollees to obtain the evidence, including, but not limited to, medical examinations and electronic medical records.

 

(c) (e) Any appeal made under section 256.045, subdivision 3, of a disability determination made by the state medical review team must be decided according to the timelines under section 256.0451, subdivision 22, paragraph (a).  If a written decision is not issued within the timelines under section 256.0451, subdivision 22, paragraph (a), the appeal must be immediately reviewed by the chief human services judge.

 

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

 

Sec. 15.  Minnesota Statutes 2024, section 256.9657, subdivision 7a, is amended to read:

 

Subd. 7a.  Withholding.  If any provider obligated to pay an annual surcharge under this section is more than two months delinquent in the timely payment of a monthly surcharge installment payment, the provisions in paragraphs (a) to (f) apply.

 

(a) The department may withhold some or all of the amount of the delinquent surcharge, together with any interest and penalties due and owing on those amounts, from any money the department owes to the provider.  The department may, at its discretion, also withhold future surcharge installment payments from any money the department owes the provider as those installments become due and owing.  The department may continue this withholding until the department determines there is no longer any need to do so.


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(b) The department shall give prior notice of the department's intention to withhold by mailing or emailing a written notice to the provider at the address to which remittance advices are mailed, placing the notice in the provider's MN-ITS mailbox, or faxing a copy of the notice to the provider at least ten business days before the date of the first payment period for which the withholding begins.  The notice may be sent by ordinary or certified mail, email, MN-ITS mailbox, or facsimile, and shall be deemed received as of the date of mailing or receipt issuance of the facsimile, email, MN-ITS mailbox, or distribution.  The notice shall:

 

(1) state the amount of the delinquent surcharge;

 

(2) state the amount of the withholding per payment period;

 

(3) state the date on which the withholding is to begin;

 

(4) state whether the department intends to withhold future installments of the provider's surcharge payments;

 

(5) inform the provider of their rights to informally object to the proposed withholding and to appeal the withholding as provided for in this subdivision;

 

(6) state that the provider may prevent the withholding during the pendency of their appeal by posting a bond; and

 

(7) state other contents as the department deems appropriate.

 

(c) The provider may informally object to the withholding in writing anytime before the withholding begins.  An informal objection shall not stay or delay the commencement of the withholding.  The department may postpone the commencement of the withholding as deemed appropriate and shall not be required to give another notice at the end of the postponement and before commencing the withholding.  The provider shall have the right to appeal any withholding from remittances by filing an appeal with Ramsey County District Court and serving notice of the appeal on the department within 30 days of the date of the written notice of the withholding.  Notice shall be given and the appeal shall be heard no later than 45 days after the appeal is filed.  In a hearing of the appeal, the department's action shall be sustained if the department proves the amount of the delinquent surcharges or overpayment the provider owes, plus any accrued interest and penalties, has not been repaid.  The department may continue withholding for delinquent and current surcharge installment payments during the pendency of an appeal unless the provider posts a bond from a surety company licensed to do business in Minnesota in favor of the department in an amount equal to two times the provider's total annual surcharge payment for the fiscal year in which the appeal is filed with the department.

 

(d) The department shall refund any amounts due to the provider under any final administrative or judicial order or decree which fully and finally resolves the appeal together with interest on those amounts at the rate of three percent per annum simple interest computed from the date of each withholding, as soon as practical after entry of the order or decree.

 

(e) The commissioner, or the commissioner's designee, may enter into written settlement agreements with a provider to resolve disputes and other matters involving unpaid surcharge installment payments or future surcharge installment payments.

 

(f) Notwithstanding any law to the contrary, all unpaid surcharges, plus any accrued interest and penalties, shall be overpayments for purposes of section 256B.0641.


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Sec. 16.  Minnesota Statutes 2024, section 256B.092, subdivision 1a, is amended to read:

 

Subd. 1a.  Case management services.  (a) Each recipient of a home and community-based waiver shall be provided case management services by qualified vendors as described in the federally approved waiver application.

 

(b) Case management service activities provided to or arranged for a person include:

 

(1) development of the person-centered support plan under subdivision 1b;

 

(2) informing the individual or the individual's legal guardian or conservator, or parent if the person is a minor, of service options, including all service options available under the waiver plan;

 

(3) consulting with relevant medical experts or service providers;

 

(4) assisting the person in the identification of potential providers of chosen services, including:

 

(i) providers of services provided in a non-disability-specific setting;

 

(ii) employment service providers;

 

(iii) providers of services provided in settings that are not controlled by a provider; and

 

(iv) providers of financial management services;

 

(5) assisting the person to access services and assisting in appeals under section 256.045;

 

(6) coordination of services, if coordination is not provided by another service provider;

 

(7) evaluation and monitoring of the services identified in the support plan, which must incorporate at least one annual face-to-face visit by the case manager with each person; and

 

(8) reviewing support plans and providing the lead agency with recommendations for service authorization based upon the individual's needs identified in the support plan.

 

(c) Case management service activities that are provided to the person with a developmental disability shall be provided directly by county agencies or under contract.  If a county agency contracts for case management services, the county agency must provide each recipient of home and community-based services who is receiving contracted case management services with the contact information the recipient may use to file a grievance with the county agency about the quality of the contracted services the recipient is receiving from a county-contracted case manager.  If a county agency provides case management under contracts with other individuals or agencies and the county agency utilizes a competitive proposal process for the procurement of contracted case management services, the competitive proposal process must include evaluation criteria to ensure that the county maintains a culturally responsive program for case management services adequate to meet the needs of the population of the county.  For the purposes of this section, "culturally responsive program" means a case management services program that:  (1) ensures effective, equitable, comprehensive, and respectful quality care services that are responsive to individuals within a specific population's values, beliefs, practices, health literacy, preferred language, and other communication needs; and (2) is designed to address the unique needs of individuals who share a common language or racial, ethnic, or social background.


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(d) Case management services must be provided by a public or private agency that is enrolled as a medical assistance provider determined by the commissioner to meet all of the requirements in the approved federal waiver plans.  Case management services must not be provided to a recipient by a private agency that has a financial interest in the provision of any other services included in the recipient's support plan.  For purposes of this section, "private agency" means any agency that is not identified as a lead agency under section 256B.0911, subdivision 10.

 

(e) Case managers are responsible for service provisions listed in paragraphs (a) and (b).  Case managers shall collaborate with consumers, families, legal representatives, and relevant medical experts and service providers in the development and annual review of the person-centered support plan and habilitation plan.

 

(f) For persons who need a positive support transition plan as required in chapter 245D, the case manager shall participate in the development and ongoing evaluation of the plan with the expanded support team.  At least quarterly, the case manager, in consultation with the expanded support team, shall evaluate the effectiveness of the plan based on progress evaluation data submitted by the licensed provider to the case manager.  The evaluation must identify whether the plan has been developed and implemented in a manner to achieve the following within the required timelines:

 

(1) phasing out the use of prohibited procedures;

 

(2) acquisition of skills needed to eliminate the prohibited procedures within the plan's timeline; and

 

(3) accomplishment of identified outcomes.

 

If adequate progress is not being made, the case manager shall consult with the person's expanded support team to identify needed modifications and whether additional professional support is required to provide consultation.

 

(g) The Department of Human Services shall offer ongoing education in case management to case managers.  Case managers shall receive no less than 20 hours of case management education and disability-related training each year.  The education and training must include person-centered planning, informed choice, informed decision making, cultural competency, employment planning, community living planning, self-direction options, and use of technology supports.  Case managers must annually complete an informed choice curriculum and pass a competency evaluation, in a form determined by the commissioner, on informed decision-making standards.  By August 1, 2024, all case managers must complete an employment support training course identified by the commissioner of human services.  For case managers hired after August 1, 2024, this training must be completed within the first six months of providing case management services.  For the purposes of this section, "person-centered planning" or "person‑centered" has the meaning given in section 256B.0911, subdivision 10.  Case managers must document completion of training in a system identified by the commissioner.

 

EFFECTIVE DATE.  This section is effective August 1, 2025.

 

Sec. 17.  Minnesota Statutes 2024, section 256B.092, subdivision 11a, is amended to read:

 

Subd. 11a.  Residential support services criteria.  (a) For the purposes of this subdivision, "residential support services" means the following residential support services reimbursed under section 256B.4914:  community residential services, customized living services, and 24-hour customized living services.

 

(b) In order to increase independent living options for people with disabilities and in accordance with section 256B.4905, subdivisions 3 and 4 7 and 8, and consistent with section 245A.03, subdivision 7, the commissioner must establish and implement criteria to access residential support services.  The criteria for accessing residential support services must prohibit the commissioner from authorizing residential support services unless at least all of the following conditions are met:

 

(1) the individual has complex behavioral health or complex medical needs; and


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(2) the individual's service planning team has considered all other available residential service options and determined that those options are inappropriate to meet the individual's support needs.

 

(c) Nothing in this subdivision shall be construed as permitting the commissioner to establish criteria prohibiting the authorization of residential support services for individuals described in the statewide priorities established in subdivision 12, the transition populations in subdivision 13, and the licensing moratorium exception criteria under section 245A.03, subdivision 7, paragraph (a).

 

(d) Individuals with active service agreements for residential support services on the date that the criteria for accessing residential support services become effective are exempt from the requirements of this subdivision, and the exemption from the criteria for accessing residential support services continues to apply for renewals of those service agreements.

 

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

 

Sec. 18.  Minnesota Statutes 2024, section 256B.49, subdivision 13, is amended to read:

 

Subd. 13.  Case management.  (a) Each recipient of a home and community-based waiver shall be provided case management services by qualified vendors as described in the federally approved waiver application.  The case management service activities provided must include:

 

(1) finalizing the person-centered written support plan within the timelines established by the commissioner and section 256B.0911, subdivision 29;

 

(2) informing the recipient or the recipient's legal guardian or conservator of service options, including all service options available under the waiver plans;

 

(3) assisting the recipient in the identification of potential service providers of chosen services, including:

 

(i) available options for case management service and providers;

 

(ii) providers of services provided in a non-disability-specific setting;

 

(iii) employment service providers;

 

(iv) providers of services provided in settings that are not community residential settings; and

 

(v) providers of financial management services;

 

(4) assisting the recipient to access services and assisting with appeals under section 256.045; and

 

(5) coordinating, evaluating, and monitoring of the services identified in the service plan.

 

(b) The case manager may delegate certain aspects of the case management service activities to another individual provided there is oversight by the case manager.  The case manager may not delegate those aspects which require professional judgment including:

 

(1) finalizing the person-centered support plan;

 

(2) ongoing assessment and monitoring of the person's needs and adequacy of the approved person-centered support plan; and


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(3) adjustments to the person-centered support plan.

 

(c) Case management services must be provided by a public or private agency that is enrolled as a medical assistance provider determined by the commissioner to meet all of the requirements in the approved federal waiver plans.  If a county agency provides case management under contracts with other individuals or agencies and the county agency utilizes a competitive proposal process for the procurement of contracted case management services, the competitive proposal process must include evaluation criteria to ensure that the county maintains a culturally responsive program for case management services adequate to meet the needs of the population of the county.  For the purposes of this section, "culturally responsive program" means a case management services program that:  (1) ensures effective, equitable, comprehensive, and respectful quality care services that are responsive to individuals within a specific population's values, beliefs, practices, health literacy, preferred language, and other communication needs; and (2) is designed to address the unique needs of individuals who share a common language or racial, ethnic, or social background.

 

(d) Case management services must not be provided to a recipient by a private agency that has any financial interest in the provision of any other services included in the recipient's support plan.  For purposes of this section, "private agency" means any agency that is not identified as a lead agency under section 256B.0911, subdivision 10.

 

(e) For persons who need a positive support transition plan as required in chapter 245D, the case manager shall participate in the development and ongoing evaluation of the plan with the expanded support team.  At least quarterly, the case manager, in consultation with the expanded support team, shall evaluate the effectiveness of the plan based on progress evaluation data submitted by the licensed provider to the case manager.  The evaluation must identify whether the plan has been developed and implemented in a manner to achieve the following within the required timelines:

 

(1) phasing out the use of prohibited procedures;

 

(2) acquisition of skills needed to eliminate the prohibited procedures within the plan's timeline; and

 

(3) accomplishment of identified outcomes.

 

If adequate progress is not being made, the case manager shall consult with the person's expanded support team to identify needed modifications and whether additional professional support is required to provide consultation.

 

(f) The Department of Human Services shall offer ongoing education in case management to case managers.  Case managers shall receive no less than 20 hours of case management education and disability-related training each year.  The education and training must include person-centered planning, informed choice, informed decision making, cultural competency, employment planning, community living planning, self-direction options, and use of technology supports.  Case managers must annually complete an informed choice curriculum and pass a competency evaluation, in a form determined by the commissioner, on informed decision-making standards.  By August 1, 2024, all case managers must complete an employment support training course identified by the commissioner of human services.  For case managers hired after August 1, 2024, this training must be completed within the first six months of providing case management services.  For the purposes of this section, "person-centered planning" or "person-centered" has the meaning given in section 256B.0911, subdivision 10.  Case managers shall document completion of training in a system identified by the commissioner.

 

EFFECTIVE DATE.  This section is effective August 1, 2025.


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Sec. 19.  Minnesota Statutes 2024, section 256B.49, subdivision 29, is amended to read:

 

Subd. 29.  Residential support services criteria.  (a) For the purposes of this subdivision, "residential support services" means the following residential support services reimbursed under section 256B.4914:  community residential services, customized living services, and 24-hour customized living services.

 

(b) In order to increase independent living options for people with disabilities and in accordance with section 256B.4905, subdivisions 3 and 4 7 and 8, and consistent with section 245A.03, subdivision 7, the commissioner must establish and implement criteria to access residential support services.  The criteria for accessing residential support services must prohibit the commissioner from authorizing residential support services unless at least all of the following conditions are met:

 

(1) the individual has complex behavioral health or complex medical needs; and

 

(2) the individual's service planning team has considered all other available residential service options and determined that those options are inappropriate to meet the individual's support needs.

 

(c) Nothing in this subdivision shall be construed as permitting the commissioner to establish criteria prohibiting the authorization of residential support services for individuals described in the statewide priorities established in subdivision 12 11a, the transition populations in subdivision 13 24, and the licensing moratorium exception criteria under section 245A.03, subdivision 7, paragraph (a).

 

(c) (d) Individuals with active service agreements for residential support services on the date that the criteria for accessing residential support services become effective are exempt from the requirements of this subdivision, and the exemption from the criteria for accessing residential support services continues to apply for renewals of those service agreements.

 

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

 

Sec. 20.  Minnesota Statutes 2024, section 256B.4911, subdivision 6, is amended to read:

 

Subd. 6.  Services provided by parents and spouses.  (a) This subdivision limits medical assistance payments under the consumer-directed community supports option for personal assistance services provided by a parent to the parent's minor child or by a participant's spouse.  This subdivision applies to the consumer-directed community supports option available under all of the following:

 

(1) alternative care program;

 

(2) brain injury waiver;

 

(3) community alternative care waiver;

 

(4) community access for disability inclusion waiver;

 

(5) developmental disabilities waiver; and

 

(6) elderly waiver.

 

(b) For the purposes of this subdivision, "parent" means a parent, stepparent, or legal guardian of a minor.


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(c) If multiple parents are providing personal assistance services to their minor child or children, each parent may provide up to 40 hours of personal assistance services in any seven-day period regardless of the number of children served.  The total number of hours of medical assistance home and community-based services provided by all of the parents must not exceed 80 hours in a seven-day period regardless of the number of children served.

 

(d) If only one parent is providing personal assistance services to a minor child or children, the parent may provide up to 60 hours of medical assistance home and community-based services in a seven-day period regardless of the number of children served.

 

(e) Subject to the hour limits in paragraphs (c) and (d), a parent may provide personal assistance services to a minor child while traveling temporarily out of state if the minor child has an assessed activity of daily living dependency requiring supervision, direction, cueing, or hands-on assistance.

 

(f) If a participant's spouse is providing personal assistance services, the spouse may provide up to 60 hours of medical assistance home and community-based services in a seven-day period.

 

(f) (g) This subdivision must not be construed to permit an increase in the total authorized consumer-directed community supports budget for an individual.

 

EFFECTIVE DATE.  This section is effective August 1, 2025, or upon federal approval, whichever is later.  The commissioner of human services shall notify the revisor of statutes when federal approval is obtained.

 

Sec. 21.  Minnesota Statutes 2024, 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 stakeholders community partners identified in subdivision 17, a provider enrolled to provide services with rates determined under this section must submit requested cost data to the commissioner to support research on the cost of providing services that have rates determined by the disability waiver rates system.  Requested cost data may include, but is 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) vacancy rates; and

 

(11) other data relating to costs required to provide services requested by the commissioner.


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(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.  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 by the commissioner.

 

(c) The commissioner shall conduct a random validation of data submitted under paragraph (a) to ensure data accuracy.  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 retroactively from January 1, 2025.

 

Sec. 22.  Minnesota Statutes 2024, section 256B.4914, subdivision 10d, is amended to read:

 

Subd. 10d.  Direct care staff; compensation.  (a) A provider paid with rates determined under subdivision 6 must use a minimum of 66 percent of the revenue generated by rates determined under that subdivision for direct care staff compensation.

 

(b) A provider paid with rates determined under subdivision 7 must use a minimum of 45 percent of the revenue generated by rates determined under that subdivision for direct care staff compensation.

 

(c) A provider paid with rates determined under subdivision 8 or 9 must use a minimum of 60 percent of the revenue generated by rates determined under those subdivisions for direct care staff compensation.

 

(d) Compensation under this subdivision includes:

 

(1) wages;

 

(2) taxes and workers' compensation;

 

(3) health insurance;

 

(4) dental insurance;

 

(5) vision insurance;

 

(6) life insurance;

 

(7) short-term disability insurance;


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(8) long-term disability insurance;

 

(9) retirement spending;

 

(10) tuition reimbursement;

 

(11) wellness programs;

 

(12) paid vacation time;

 

(13) paid sick time; or

 

(14) other items of monetary value provided to direct care staff.

 

(e) This subdivision does not apply to a provider licensed as an assisted living facility by the commissioner of health under chapter 144G.

 

(f) This subdivision is effective January 1, 2029, and applies to services provided on or after that date.

 

EFFECTIVE DATE.  This section is effective retroactively from January 1, 2025.

 

Sec. 23.  Minnesota Statutes 2024, section 256B.4914, subdivision 17, is amended to read:

 

Subd. 17.  Stakeholder Community consultation and county training.  (a) The commissioner shall continue consultation at regular intervals with the existing stakeholder group DWRS advisory committee established as part of the rate-setting methodology process and others other community partners, to gather input, concerns, and data, to assist in the implementation of the rate payment system, and to make pertinent information available to the public through the department's website.

 

(b) The commissioner shall offer training at least annually for county personnel responsible for administering the rate-setting framework in a manner consistent with this section.

 

(c) The commissioner shall maintain an online instruction manual explaining the rate-setting framework.  The manual shall must be consistent with this section, and shall must be accessible to all stakeholders including recipients, representatives of recipients, county or Tribal agencies, and license holders.

 

(d) The commissioner shall not defer to the county or Tribal agency on matters of technical application of the rate-setting framework, and a county or Tribal agency shall must not set rates in a manner that conflicts with this section.

 

(e) The commissioner must consult with the DWRS advisory committee and other community partners as required under this subdivision to periodically review, update, and revise the format by which initiators of rate exception requests and lead agencies collect and submit information about individuals with exceptional needs under subdivision 14.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.


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Sec. 24.  Minnesota Statutes 2024, section 256R.02, subdivision 18, is amended to read:

 

Subd. 18.  Employer health insurance costs.  "Employer health insurance costs" means:

 

(1) premium expenses for group coverage;

 

(2) actual expenses incurred for self-insured plans, including actual claims paid, stop-loss premiums, and plan fees.  Actual expenses incurred for self-insured plans does not include allowances for future funding unless the plan meets the Medicare provider reimbursement manual requirements for reporting on a premium basis when the Medicare provider reimbursement manual regulations define the actual costs; and

 

(3) employer contributions to employer-sponsored individual coverage health reimbursement arrangements as provided by Code of Federal Regulations, title 45, section 146.123, employee health reimbursement accounts, and health savings accounts.

 

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

 

Sec. 25.  Minnesota Statutes 2024, section 256R.02, subdivision 19, is amended to read:

 

Subd. 19.  External fixed costs.  "External fixed costs" means costs related to the nursing home surcharge under section 256.9657, subdivision 1; licensure fees under section 144.122; family advisory council fee under section 144A.33; scholarships under section 256R.37; planned closure rate adjustments under section 256R.40; consolidation rate adjustments under section 144A.071, subdivisions 4c, paragraph (a), clauses (5) and (6), and 4d; single-bed room incentives under section 256R.41; property taxes, special assessments, and payments in lieu of taxes; employer health insurance costs; quality improvement incentive payment rate adjustments under section 256R.39; performance-based incentive payments under section 256R.38; special dietary needs under section 256R.51; Public Employees Retirement Association employer costs; and border city rate adjustments under section 256R.481 the items described in section 256R.25.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.

 

Sec. 26.  Minnesota Statutes 2024, section 256R.02, subdivision 22, is amended to read:

 

Subd. 22.  Fringe benefit costs.  "Fringe benefit costs" means the costs for group life,; dental,; workers' compensation,; short- and long-term disability,; long-term care insurance,; accident insurance,; supplemental insurance,; legal assistance insurance,; profit sharing,; child care costs,; health insurance costs not covered under subdivision 18, including costs associated with eligible part-time employee family members or retirees,; and pension and retirement plan contributions, except for the Public Employees Retirement Association costs.

 

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

 

Sec. 27.  Minnesota Statutes 2024, section 256R.25, is amended to read:

 

256R.25 EXTERNAL FIXED COSTS PAYMENT RATE.

 

(a) The payment rate for external fixed costs is the sum of the amounts in paragraphs (b) to (p).

 

(b) For a facility licensed as a nursing home, the portion related to the provider surcharge under section 256.9657 is equal to $8.86 per resident day.  For a facility licensed as both a nursing home and a boarding care home, the portion related to the provider surcharge under section 256.9657 is equal to $8.86 per resident day multiplied by the result of its number of nursing home beds divided by its total number of licensed beds.


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(c) The portion related to the licensure fee under section 144.122, paragraph (d), is the amount of the fee divided by the sum of the facility's resident days.

 

(d) The portion related to development and education of resident and family advisory councils under section 144A.33 is $5 per resident day divided by 365.

 

(e) The portion related to scholarships is determined under section 256R.37.

 

(f) The portion related to planned closure rate adjustments is as determined under section 256R.40, subdivision 5, and Minnesota Statutes 2010, section 256B.436.

 

(g) The portion related to consolidation rate adjustments shall be as determined under section 144A.071, subdivisions 4c, paragraph (a), clauses (5) and (6), and 4d 256R.405.

 

(h) The portion related to single-bed room incentives is as determined under section 256R.41.

 

(i) The portions related to real estate taxes, special assessments, and payments made in lieu of real estate taxes directly identified or allocated to the nursing facility are the allowable amounts divided by the sum of the facility's resident days.  Allowable costs under this paragraph for payments made by a nonprofit nursing facility that are in lieu of real estate taxes shall not exceed the amount which the nursing facility would have paid to a city or township and county for fire, police, sanitation services, and road maintenance costs had real estate taxes been levied on that property for those purposes.

 

(j) The portion related to employer health insurance costs is the allowable costs divided by the sum of the facility's resident days.

 

(k) The portion related to the Public Employees Retirement Association is the allowable costs divided by the sum of the facility's resident days.

 

(l) The portion related to quality improvement incentive payment rate adjustments is the amount determined under section 256R.39.

 

(m) The portion related to performance-based incentive payments is the amount determined under section 256R.38.

 

(n) The portion related to special dietary needs is the amount determined under section 256R.51.

 

(o) The portion related to the rate adjustments for border city facilities is the amount determined under section 256R.481.

 

(p) The portion related to the rate adjustment for critical access nursing facilities is the amount determined under section 256R.47.

 

Sec. 28.  Minnesota Statutes 2024, section 256R.38, is amended to read:

 

256R.38 PERFORMANCE-BASED INCENTIVE PAYMENTS.

 

The commissioner shall develop additional incentive-based payments of up to five percent above a facility's operating payment rate for achieving outcomes specified in a contract.  The commissioner may solicit proposals and select those which, on a competitive basis, best meet the state's policy objectives.  The commissioner shall limit the amount of any incentive payment and the number of contract amendments under this section to operate the incentive


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payments within funds appropriated for this purpose.  The commissioner shall approve proposals through a memorandum of understanding which shall specify various levels of payment for various levels of performance.  Incentive payments to facilities under this section shall be in the form of time-limited rate adjustments which shall be included in the external fixed costs payment rate under section 256R.25.  In establishing the specified outcomes and related criteria, the commissioner shall consider the following state policy objectives:

 

(1) successful diversion or discharge of residents to the residents' prior home or other community-based alternatives;

 

(2) adoption of new technology to improve quality or efficiency;

 

(3) improved quality as measured in the Minnesota Nursing Home Report Card;

 

(4) reduced acute care costs; and

 

(5) any additional outcomes proposed by a nursing facility that the commissioner finds desirable.

 

Sec. 29.  Minnesota Statutes 2024, section 256R.40, subdivision 5, is amended to read:

 

Subd. 5.  Planned closure rate adjustment.  (a) The commissioner shall calculate the amount of the planned closure rate adjustment available under subdivision 6 according to clauses (1) to (4):

 

(1) the amount available is the net reduction of nursing facility beds multiplied by $2,080;

 

(2) the total number of beds in the nursing facility or facilities receiving the planned closure rate adjustment must be identified;

 

(3) capacity days are determined by multiplying the number determined under clause (2) by 365; and

 

(4) the planned closure rate adjustment is the amount available in clause (1), divided by capacity days determined under clause (3).

 

(b) A planned closure rate adjustment under this section is effective on the first day of the month of January or July, whichever occurs immediately following completion of closure of the facility designated for closure in the application and becomes part of the nursing facility's external fixed costs payment rate.

 

(c) Upon the request of a closing facility, the commissioner must allow the facility a closure rate adjustment as provided under section 144A.161, subdivision 10.

 

(d) A facility that has received a planned closure rate adjustment may reassign it to another facility that is under the same ownership at any time within three years of its effective date.  The amount of the adjustment is computed according to paragraph (a).

 

(e) If the per bed dollar amount specified in paragraph (a), clause (1), is increased, the commissioner shall recalculate planned closure rate adjustments for facilities that delicense beds under this section on or after July 1, 2001, to reflect the increase in the per bed dollar amount.  The recalculated planned closure rate adjustment is effective from the date the per bed dollar amount is increased.


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Sec. 30.  [256R.405] CONSOLIDATION RATES.

 

Subdivision 1.  Consolidation rates; generally.  The external fixed costs payment rate for nursing facilities that have completed a state-approved consolidation project must include a consolidation rate adjustment.  A facility's consolidation rate adjustment expires upon transition to a fair rental value property payment rate under section 256R.26, subdivision 9.  The commissioner must inform the revisor of statutes when a facility's consolidation rate adjustment specified under this section expires.  This subdivision expires upon the expiration of all other subdivisions of this section.

 

Subd. 2.  Owatonna.  The consolidation rate for the nursing facility located at 2255 30th Street Northwest in Owatonna is $33.88.

 

Subd. 3.  Red Wing.  The consolidation rate for the nursing facility located at 213 Pioneer Road in Red Wing is $73.69.

 

Subd. 4.  White Bear Lake.  The consolidation rate for the nursing facility located at 1891 Florence Street in White Bear Lake is $25.56.

 

Subd. 5.  St. Paul.  The consolidation rate for the nursing facility located at 200 Earl Street in St. Paul is $68.01.

 

Subd. 6.  Cambridge.  The consolidation rate for the nursing facility located at 135 Fern Street North in Cambridge is $24.30.

 

Subd. 7.  Maple Plain.  The consolidation rate for the nursing facility located at 4848 Gateway Boulevard in Maple Plain is $38.76.

 

Subd. 8.  Maplewood.  The consolidation rate for the nursing facility located at 1438 County Road C East in Maplewood is $55.63. 

 

Subd. 9.  Apple Valley.  The consolidation rate for the nursing facility located at 14650 Garrett Avenue in Apple Valley is $26.99.

 

Sec. 31.  REPEALER.

 

Minnesota Statutes 2024, section 144A.071, subdivision 4c, is repealed.

 

ARTICLE 2

DEPARTMENT OF HEALTH POLICY

 

Section 1.  Minnesota Statutes 2024, section 144.0724, subdivision 3a, is amended to read:

 

Subd. 3a.  Resident case mix reimbursement classifications.  (a) Resident case mix reimbursement classifications shall be based on the Minimum Data Set, version 3.0 assessment instrument, or its successor version mandated by the Centers for Medicare and Medicaid Services that nursing facilities are required to complete for all residents.  Case mix reimbursement classifications shall also be based on assessments required under subdivision 4.  Assessments must be completed according to the Long Term Care Facility Resident Assessment Instrument User's Manual Version 3.0 or a successor manual issued by the Centers for Medicare and Medicaid Services.  The optional state assessment must be completed according to the OSA Manual Version 1.0 v.2.

 

(b) Each resident must be classified based on the information from the Minimum Data Set according to the general categories issued by the Minnesota Department of Health, utilized for reimbursement purposes.

 

EFFECTIVE DATE.  This section is effective October 1, 2025, and applies to assessments conducted on or after that date.


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Sec. 2.  Minnesota Statutes 2024, section 144.0724, subdivision 4, is amended to read:

 

Subd. 4.  Resident assessment schedule.  (a) A facility must conduct and electronically submit to the federal database MDS assessments that conform with the assessment schedule defined by the Long Term Care Facility Resident Assessment Instrument User's Manual, version 3.0, or its successor issued by the Centers for Medicare and Medicaid Services.  The commissioner of health may substitute successor manuals or question and answer documents published by the United States Department of Health and Human Services, Centers for Medicare and Medicaid Services, to replace or supplement the current version of the manual or document.

 

(b) The assessments required under the Omnibus Budget Reconciliation Act of 1987 (OBRA) used to determine a case mix reimbursement classification include:

 

(1) a new admission comprehensive assessment, which must have an assessment reference date (ARD) within 14 calendar days after admission, excluding readmissions;

 

(2) an annual comprehensive assessment, which must have an ARD within 92 days of a previous quarterly review assessment or a previous comprehensive assessment, which must occur at least once every 366 days;

 

(3) a significant change in status comprehensive assessment, which must have an ARD within 14 days after the facility determines, or should have determined, that there has been a significant change in the resident's physical or mental condition, whether an improvement or a decline, and regardless of the amount of time since the last comprehensive assessment or quarterly review assessment;

 

(4) a significant change in status comprehensive assessment when isolation for an infectious disease has ended.  If isolation was not coded on the most recent assessment completed prior to isolation ending, then the significant change in status comprehensive assessment under this clause is not required.  The ARD for assessments under this clause must be set on day 15 after isolation has ended;

 

(5) a quarterly review assessment must have an ARD within 92 days of the ARD of the previous quarterly review assessment or a previous comprehensive assessment;

 

(5) (6) any significant correction to a prior comprehensive assessment, if the assessment being corrected is the current one being used for reimbursement classification;

 

(6) (7) any significant correction to a prior quarterly review assessment, if the assessment being corrected is the current one being used for reimbursement classification; and

 

(7) (8) any modifications to the most recent assessments under clauses (1) to (6) (7).

 

(c) The optional state assessment must accompany all OBRA assessments.  The optional state assessment is also required to determine reimbursement when:

 

(1) all speech, occupational, and physical therapies have ended.  If the most recent optional state assessment completed does not result in a rehabilitation case mix reimbursement classification, then the optional state assessment is not required.  The ARD of this assessment must be set on day eight after all therapy services have ended; and

 

(2) isolation for an infectious disease has ended.  If isolation was not coded on the most recent optional state assessment completed, then the optional state assessment is not required.  The ARD of this assessment must be set on day 15 after isolation has ended.


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(d)
(c) In addition to the assessments listed in paragraphs paragraph (b) and (c), the assessments used to determine nursing facility level of care include the following:

 

(1) preadmission screening completed under section 256.975, subdivisions 7a to 7c, by the Senior LinkAge Line or other organization under contract with the Minnesota Board on Aging; and

 

(2) a nursing facility level of care determination as provided for under section 256B.0911, subdivision 26, as part of a face-to-face long-term care consultation assessment completed under section 256B.0911, by a county, tribe, or managed care organization under contract with the Department of Human Services.

 

EFFECTIVE DATE.  This section is effective October 1, 2025, and applies to assessments conducted on or after that date.

 

Sec. 3.  Minnesota Statutes 2024, section 144.0724, subdivision 8, is amended to read:

 

Subd. 8.  Request for reconsideration of resident classifications.  (a) The resident, the resident's representative, the nursing facility, or the boarding care home may request that the commissioner of health reconsider the assigned case mix reimbursement classification and any item or items changed during the audit process.  The request for reconsideration must be submitted in writing to the commissioner of health.

 

(b) For reconsideration requests initiated by the resident or the resident's representative:

 

(1) The resident or the resident's representative must submit in writing a reconsideration request to the facility administrator within 30 days of receipt of the resident classification notice.  The written request must include the reasons for the reconsideration request.

 

(2) Within three business days of receiving the reconsideration request, the nursing facility must submit to the commissioner of health a completed reconsideration request form, a copy of the resident's or resident's representative's written request, and all supporting documentation used to complete the assessment being reconsidered.  If the facility fails to provide the required information, the reconsideration will be completed with the information submitted and the facility cannot make further reconsideration requests on this classification.

 

(3) Upon written request and within three business days, the nursing facility must give the resident or the resident's representative a copy of the assessment being reconsidered and all supporting documentation used to complete the assessment.  Notwithstanding any law to the contrary, the facility may not charge a fee for providing copies of the requested documentation.  If a facility fails to provide the required documents within this time, it is subject to the issuance of a correction order and penalty assessment under sections 144.653 and 144A.10.  Notwithstanding those sections, any correction order issued under this subdivision must require that the nursing facility immediately comply with the request for information, and as of the date of the issuance of the correction order, the facility shall forfeit to the state a $100 fine for the first day of noncompliance, and an increase in the $100 fine by $50 increments for each day the noncompliance continues.

 

(c) For reconsideration requests initiated by the facility:

 

(1) The facility is required to inform the resident or the resident's representative in writing that a reconsideration of the resident's case mix reimbursement classification is being requested.  The notice must inform the resident or the resident's representative:

 

(i) of the date and reason for the reconsideration request;

 

(ii) of the potential for a case mix reimbursement classification change and subsequent rate change;


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(iii) of the extent of the potential rate change;

 

(iv) that copies of the request and supporting documentation are available for review; and

 

(v) that the resident or the resident's representative has the right to request a reconsideration also.

 

(2) Within 30 days of receipt of the audit exit report or resident classification notice, the facility must submit to the commissioner of health a completed reconsideration request form, all supporting documentation used to complete the assessment being reconsidered, and a copy of the notice informing the resident or the resident's representative that a reconsideration of the resident's classification is being requested.

 

(3) If the facility fails to provide the required information, the reconsideration request may be denied and the facility may not make further reconsideration requests on this classification.

 

(d) Reconsideration by the commissioner must be made by individuals not involved in reviewing the assessment, audit, or reconsideration that established the disputed classification.  The reconsideration must be based upon the assessment that determined the classification and upon the information provided to the commissioner of health under paragraphs (a) to (c).  If necessary for evaluating the reconsideration request, the commissioner may conduct on-site reviews.  Within 15 business days of receiving the request for reconsideration, the commissioner shall affirm or modify the original resident classification.  The original classification must be modified if the commissioner determines that the assessment resulting in the classification did not accurately reflect characteristics of the resident at the time of the assessment.  The commissioner must transmit the reconsideration classification notice by electronic means to the nursing facility.  The nursing facility is responsible for the distribution of the notice to the resident or the resident's representative.  The notice must be distributed by the nursing facility within three business days after receipt.  A decision by the commissioner under this subdivision is the final administrative decision of the agency for the party requesting reconsideration.

 

(e) The case mix reimbursement classification established by the commissioner shall be the classification which applies to the resident while the request for reconsideration is pending.  If a request for reconsideration applies to an assessment used to determine nursing facility level of care under subdivision 4, paragraph (d) (c), the resident shall continue to be eligible for nursing facility level of care while the request for reconsideration is pending.

 

(f) The commissioner may request additional documentation regarding a reconsideration necessary to make an accurate reconsideration determination.

 

(g) Data collected as part of the reconsideration process under this section is classified as private data on individuals and nonpublic data pursuant to section 13.02.  Notwithstanding the classification of these data as private or nonpublic, the commissioner is authorized to share these data with the U.S. Centers for Medicare and Medicaid Services and the commissioner of human services as necessary for reimbursement purposes.

 

EFFECTIVE DATE.  This section is effective October 1, 2025, and applies to assessments conducted on or after that date.

 

Sec. 4.  Minnesota Statutes 2024, section 144.0724, subdivision 9, is amended to read:

 

Subd. 9.  Audit authority.  (a) The commissioner shall audit the accuracy of resident assessments performed under section 256R.17 through any of the following:  desk audits; on-site review of residents and their records; and interviews with staff, residents, or residents' families.  The commissioner shall reclassify a resident if the commissioner determines that the resident was incorrectly classified.

 

(b) The commissioner is authorized to conduct on-site audits on an unannounced basis.


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(c) A facility must grant the commissioner access to examine the medical records relating to the resident assessments selected for audit under this subdivision.  The commissioner may also observe and speak to facility staff and residents.

 

(d) The commissioner shall consider documentation under the time frames for coding items on the minimum data set as set out in the Long-Term Care Facility Resident Assessment Instrument User's Manual or OSA Manual version 1.0 v.2 published by the Centers for Medicare and Medicaid Services.

 

(e) The commissioner shall develop an audit selection procedure that includes the following factors:

 

(1) Each facility shall be audited annually.  If a facility has two successive audits in which the percentage of change is five percent or less and the facility has not been the subject of a special audit in the past 36 months, the facility may be audited biannually.  A stratified sample of 15 percent, with a minimum of ten assessments, of the most current assessments shall be selected for audit.  If more than 20 percent of the case mix reimbursement classifications are changed as a result of the audit, the audit shall be expanded to a second 15 percent sample, with a minimum of ten assessments.  If the total change between the first and second samples is 35 percent or greater, the commissioner may expand the audit to all of the remaining assessments.

 

(2) If a facility qualifies for an expanded audit, the commissioner may audit the facility again within six months.  If a facility has two expanded audits within a 24-month period, that facility will be audited at least every six months for the next 18 months.

 

(3) The commissioner may conduct special audits if the commissioner determines that circumstances exist that could alter or affect the validity of case mix reimbursement classifications of residents.  These circumstances include, but are not limited to, the following:

 

(i) frequent changes in the administration or management of the facility;

 

(ii) an unusually high percentage of residents in a specific case mix reimbursement classification;

 

(iii) a high frequency in the number of reconsideration requests received from a facility;

 

(iv) frequent adjustments of case mix reimbursement classifications as the result of reconsiderations or audits;

 

(v) a criminal indictment alleging provider fraud;

 

(vi) other similar factors that relate to a facility's ability to conduct accurate assessments;

 

(vii) an atypical pattern of scoring minimum data set items;

 

(viii) nonsubmission of assessments;

 

(ix) late submission of assessments; or

 

(x) a previous history of audit changes of 35 percent or greater.

 

(f) If the audit results in a case mix reimbursement classification change, the commissioner must transmit the audit classification notice by electronic means to the nursing facility within 15 business days of completing an audit.  The nursing facility is responsible for distribution of the notice to each resident or the resident's representative.  This notice must be distributed by the nursing facility within three business days after receipt.  The notice must inform the resident of the case mix reimbursement classification assigned, the opportunity to review the documentation


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supporting the classification, the opportunity to obtain clarification from the commissioner, the opportunity to request a reconsideration of the classification, and the address and telephone number of the Office of Ombudsman for Long-Term Care.

 

EFFECTIVE DATE.  This section is effective October 1, 2025, and applies to assessments conducted on or after that date.

 

Sec. 5.  Minnesota Statutes 2024, 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, paragraphs paragraph (b) and (c), 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.


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(c) The assessment used to establish medical assistance payment for long-term care services provided under chapter 256S and section 256B.49 and alternative care payment for services provided under section 256B.0913 must be the most recent face-to-face assessment performed under section 256B.0911, subdivisions 17 to 21, 23, 24, 27, or 28, that occurred no more than 60 calendar days before the effective date of medical assistance eligibility for payment of long-term care services.

 

EFFECTIVE DATE.  This section is effective October 1, 2025, and applies to assessments conducted on or after that date.

 

Sec. 6.  Minnesota Statutes 2024, section 144.651, subdivision 10a, is amended to read:

 

Subd. 10a.  Designated support person for pregnant patient or other patient.  (a) Subject to paragraph (c), a health care provider and a health care facility must allow, at a minimum, one designated support person chosen by a patient, including but not limited to a pregnant patient, to be physically present while the patient is receiving health care services including during a hospital stay.  Subject to paragraph (c), a facility must allow, at a minimum, one designated support person chosen by the resident to be physically present with the resident at times of the resident's choosing while the resident resides at the facility.

 

(b) For purposes of this subdivision, "designated support person" means any person chosen by the patient or resident to provide comfort to the patient or resident, including but not limited to the patient's or resident's spouse, partner, family member, or another person related by affinity.  Certified doulas and traditional midwives may not be counted toward the limit of one designated support person.

 

(c) A facility may restrict or prohibit the presence of a designated support person in treatment rooms, procedure rooms, and operating rooms when such a restriction or prohibition is strictly necessary to meet the appropriate standard of care.  A facility may also restrict or prohibit the presence of a designated support person if the designated support person is acting in a violent or threatening manner toward others.  A facility may restrict the presence of a resident's designated support person to the extent necessary to ensure a designated support person who is not a facility resident is not living at the facility on a short-term or long-term basis.  Any restriction or prohibition of a designated support person by the facility is subject to the facility's written internal grievance procedure required by subdivision 20.

 

(d) This subdivision does not apply to a patient or resident at a state-operated treatment program as defined in section 253B.02, subdivision 18d.

 

Sec. 7.  Minnesota Statutes 2024, section 144A.61, is amended by adding a subdivision to read:

 

Subd. 3b.  Commissioner approval of curricula for medication administration.  The commissioner of health must review and approve curricula that meet the requirements in Minnesota Rules, part 4658.1360, subpart 2, item B, to train unlicensed personnel in medication administration.  Significant updates or amendments, including but not limited to changes to the standards of practice to the curricula, must be approved by the commissioner.

 

Sec. 8.  Minnesota Statutes 2024, section 144A.61, is amended by adding a subdivision to read:

 

Subd. 3c.  Approved curricula.  The commissioner must maintain a current list of acceptable medication administration curricula to be used for medication aide training programs for employees of nursing homes and certified boarding care homes on the department's website that are based on current best practice standards and meet the requirements of Minnesota Rules, part 4658.1360, subpart 2, item B.


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Sec. 9.  Minnesota Statutes 2024, section 144A.70, subdivision 3, is amended to read:

 

Subd. 3.  Controlling person.  "Controlling person" means a business entity or entities, officer, program administrator, or director, whose responsibilities include the management and decision-making authority to establish or control business policy and all other policies of a supplemental nursing services agency.  Controlling person also means an individual who, directly or indirectly, beneficially owns an has a direct ownership interest or indirect ownership interest in a corporation, partnership, or other business association that is a controlling person the registrant.

 

Sec. 10.  Minnesota Statutes 2024, section 144A.70, is amended by adding a subdivision to read:

 

Subd. 3a.  Direct ownership interest.  "Direct ownership interest" means an individual or legal entity with at least five percent equity in capital, stock, or profits of the registrant or who is a member of a limited liability company of the registrant.

 

Sec. 11.  Minnesota Statutes 2024, section 144A.70, is amended by adding a subdivision to read:

 

Subd. 4b.  Indirect ownership interest.  "Indirect ownership interest" means an individual or legal entity with a direct ownership interest in an entity that has a direct or indirect ownership interest of at least five percent in an entity that is a registrant.

 

Sec. 12.  Minnesota Statutes 2024, section 144A.70, subdivision 7, is amended to read:

 

Subd. 7.  Oversight.  The commissioner is responsible for the oversight of supplemental nursing services agencies through semiannual unannounced surveys every two years and follow-up surveys, complaint investigations under sections 144A.51 to 144A.53, and other actions necessary to ensure compliance with sections 144A.70 to 144A.74.

 

Sec. 13.  Minnesota Statutes 2024, section 144A.751, subdivision 1, is amended to read:

 

Subdivision 1.  Statement of rights.  An individual who receives hospice care has the right to:

 

(1) receive written information about rights in advance of receiving hospice care or during the initial evaluation visit before the initiation of hospice care, including what to do if rights are violated;

 

(2) receive care and services according to a suitable hospice plan of care and subject to accepted hospice care standards and to take an active part in creating and changing the plan and evaluating care and services;

 

(3) be told in advance of receiving care about the services that will be provided, the disciplines that will furnish care, the frequency of visits proposed to be furnished, other choices that are available, and the consequence of these choices, including the consequences of refusing these services;

 

(4) be told in advance, whenever possible, of any change in the hospice plan of care and to take an active part in any change;

 

(5) refuse services or treatment;

 

(6) know, in advance, any limits to the services available from a provider, and the provider's grounds for a termination of services;


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(7) know in advance of receiving care whether the hospice services may be covered by health insurance, medical assistance, Medicare, or other health programs in which the individual is enrolled;

 

(8) receive, upon request, a good faith estimate of the reimbursement the provider expects to receive from the health plan company in which the individual is enrolled.  A good faith estimate must also be made available at the request of an individual who is not enrolled in a health plan company.  This payment information does not constitute a legally binding estimate of the cost of services;

 

(9) know that there may be other services available in the community, including other end of life services and other hospice providers, and know where to go for information about these services;

 

(10) choose freely among available providers and change providers after services have begun, within the limits of health insurance, medical assistance, Medicare, or other health programs;

 

(11) have personal, financial, and medical information kept private and be advised of the provider's policies and procedures regarding disclosure of such information;

 

(12) be allowed access to records and written information from records according to sections 144.291 to 144.298;

 

(13) be served by people who are properly trained and competent to perform their duties;

 

(14) be treated with courtesy and respect and to have the patient's property treated with respect;

 

(15) voice grievances regarding treatment or care that is, or fails to be, furnished or regarding the lack of courtesy or respect to the patient or the patient's property;

 

(16) be free from physical and verbal abuse;

 

(17) reasonable, advance notice of changes in services or charges, including at least ten days' advance notice of the termination of a service by a provider, except in cases where:

 

(i) the recipient of services engages in conduct that alters the conditions of employment between the hospice provider and the individual providing hospice services, or creates an abusive or unsafe work environment for the individual providing hospice services;

 

(ii) an emergency for the informal caregiver or a significant change in the recipient's condition has resulted in service needs that exceed the current service provider agreement and that cannot be safely met by the hospice provider; or

 

(iii) the recipient is no longer certified as terminally ill;

 

(18) a coordinated transfer when there will be a change in the provider of services;

 

(19) know how to contact an individual associated with the provider who is responsible for handling problems and to have the provider investigate and attempt to resolve the grievance or complaint;

 

(20) know the name and address of the state or county agency to contact for additional information or assistance;

 

(21) assert these rights personally, or have them asserted by the hospice patient's family when the patient has been judged incompetent, without retaliation; and


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(22) have pain and symptoms managed to the patient's desired level of comfort, including ensuring appropriate medications are readily available to the patient;

 

(23) revoke hospice election at any time; and

 

(24) receive curative treatment for any condition unrelated to the condition that qualified the individual for hospice, in collaboration with the hospice provider if possible, while remaining on hospice election.

 

Sec. 14.  Minnesota Statutes 2024, section 144G.08, is amended by adding a subdivision to read:

 

Subd. 55a.  Registered nurse.  "Registered nurse" has the meaning given in section 148.171, subdivision 20.

 

Sec. 15.  Minnesota Statutes 2024, section 144G.10, subdivision 1, is amended to read:

 

Subdivision 1.  License required.  (a)(1) Beginning August 1, 2021, no assisted living facility may operate in Minnesota unless it is licensed under this chapter.

 

(2) No facility or building on a campus may provide assisted living services until obtaining the required license under paragraphs (c) to (e).

 

(b) The licensee is legally responsible for the management, control, and operation of the facility, regardless of the existence of a management agreement or subcontract.  Nothing in this chapter shall in any way affect the rights and remedies available under other law.

 

(c) Upon approving an application for an assisted living facility license, the commissioner shall issue a single license for each building that is operated by the licensee as an assisted living facility and is located at a separate address, except as provided under paragraph (d) or (e).  If a portion of a licensed assisted living facility building is utilized by an unlicensed entity or an entity with a license type not granted under this chapter, the licensed assisted living facility must ensure there is at least a vertical two-hour fire barrier as defined by the National Fire Protection Association Standard 101, Life Safety Code, between any licensed assisted living facility areas and unlicensed entity areas of the building and between the licensed assisted living facility areas and any licensed areas subject to another license type.

 

(d) Upon approving an application for an assisted living facility license, the commissioner may issue a single license for two or more buildings on a campus that are operated by the same licensee as an assisted living facility.  An assisted living facility license for a campus must identify the address and licensed resident capacity of each building located on the campus in which assisted living services are provided.

 

(e) Upon approving an application for an assisted living facility license, the commissioner may:

 

(1) issue a single license for two or more buildings on a campus that are operated by the same licensee as an assisted living facility with dementia care, provided the assisted living facility for dementia care license for a campus identifies the buildings operating as assisted living facilities with dementia care; or

 

(2) issue a separate assisted living facility with dementia care license for a building that is on a campus and that is operating as an assisted living facility with dementia care.


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Sec. 16.  Minnesota Statutes 2024, section 144G.10, subdivision 1a, is amended to read:

 

Subd. 1a.  Assisted living director license required.  Each assisted living facility must employ an assisted living director who is licensed or permitted by the Board of Executives for Long Term Services and Supports and affiliated as the director of record with the board.

 

Sec. 17.  Minnesota Statutes 2024, section 144G.10, subdivision 5, is amended to read:

 

Subd. 5.  Protected title; restriction on use.  (a) Effective January 1, 2026 2027, no person or entity may use the phrase "assisted living," whether alone or in combination with other words and whether orally or in writing, to:  advertise; market; or otherwise describe, offer, or promote itself, or any housing, service, service package, or program that it provides within this state, unless the person or entity is a licensed assisted living facility that meets the requirements of this chapter.  A person or entity entitled to use the phrase "assisted living" shall use the phrase only in the context of its participation that meets the requirements of this chapter.

 

(b) Effective January 1, 2026 2027, the licensee's name for a new an assisted living facility may not include the terms "home care" or "nursing home."

 

Sec. 18.  Minnesota Statutes 2024, section 144G.16, subdivision 3, is amended to read:

 

Subd. 3.  Licensure; termination or extension of provisional licenses.  (a) If the provisional licensee is in substantial compliance with the survey, the commissioner shall issue a facility license.

 

(b) If the provisional licensee is not in substantial compliance with the initial survey, the commissioner shall either:  (1) not issue the facility license and terminate the provisional license; or (2) extend the provisional license for a period not to exceed 90 calendar days and apply conditions necessary to bring the facility into substantial compliance.  If the provisional licensee is not in substantial compliance with the survey within the time period of the extension or if the provisional licensee does not satisfy the license conditions, the commissioner may deny the license.

 

(c) The owners and managerial officials of a provisional licensee whose license is denied are ineligible to apply for an assisted living facility license under this chapter for one year following the facility's closure date.

 

Sec. 19.  Minnesota Statutes 2024, section 144G.19, is amended by adding a subdivision to read:

 

Subd. 5.  Change of ownership; existing contracts.  Following a change of ownership, the new licensee must honor the terms of an assisted living contract in effect at the time of the change of ownership until the end of the contract term.

 

EFFECTIVE DATE.  This section is effective January 1, 2026, and applies to all assisted living contracts executed on or after January 1, 2026.

 

Sec. 20.  Minnesota Statutes 2024, section 144G.45, is amended by adding a subdivision to read:

 

Subd. 8.  Exceptions.  To accommodate the needs of an aging population in Otter Tail County, a three-story building with Type IIIB construction located in Otter Tail County may apply for an assisted living license under section 144G.191.  This subdivision expires December 31, 2025.


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Sec. 21.  Minnesota Statutes 2024, section 144G.51, is amended to read:

 

144G.51 ARBITRATION.

 

(a) An assisted living facility must clearly and conspicuously disclose, in writing in an assisted living contract, any arbitration provision in the contract that precludes, limits, or delays the ability of a resident from taking a civil action.

 

(b) An arbitration requirement provision must not include a choice of law or choice of venue provision.  Assisted living contracts must adhere to Minnesota law and any other applicable federal or local law.

 

(c) An assisted living facility must not require any resident or the resident's representative to sign an agreement for binding arbitration as a condition of admission to, or as a requirement to continue to receive care at, the facility.

 

Sec. 22.  Minnesota Statutes 2024, section 144G.52, is amended by adding a subdivision to read:

 

Subd. 5a.  Impermissible ground for termination.  (a) A facility must not terminate an assisted living contract on the ground that the resident changes from using private funds to using public funds to pay for housing or services if the facility has represented or advertised that the facility accepts public funds to cover the costs of housing or services or makes any similar representation regarding the ability of the resident to remain in the facility when the resident's private funds are exhausted.

 

(b) A resident must notify the facility of the resident's intention to apply for public assistance to pay for housing or services, or both, and must make a timely application to the appropriate government agency or agencies.  The facility must inform the resident at the time the resident moves into the facility and once annually of the facility's policy regarding converting from using private funds to public funds to pay for housing or services, or both, and of the resident's obligation to notify the facility of the resident's intent to apply for public assistance and to make a timely application for public assistance.

 

(c) This subdivision does not prohibit a facility from terminating an assisted living contract for nonpayment according to subdivision 3, or for a violation of the assisted living contract according to subdivision 4.

 

(d) If a resident's application for public funds is not processed within 30 days, the resident may contact the Office of Ombudsman for Long-Term Care to facilitate timely completion of enrollment with the appropriate lead agency.

 

EFFECTIVE DATE.  This section is effective January 1, 2026, and applies to all assisted living contracts executed on or after January 1, 2026.

 

Sec. 23.  Minnesota Statutes 2024, section 144G.53, is amended to read:

 

144G.53 NONRENEWAL OF HOUSING.

 

Subdivision 1.  Notice or termination procedure.  (a) If a facility decides to not renew a resident's housing under a contract, the facility must either (1) provide the resident with 60 calendar days' notice of the nonrenewal and assistance with relocation planning, or (2) follow the termination procedure under section 144G.52.

 

(b) The notice must include the reason for the nonrenewal and contact information of the Office of Ombudsman for Long-Term Care and the Office of Ombudsman for Mental Health and Developmental Disabilities.


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(c) A facility must:

 

(1) provide notice of the nonrenewal to the Office of Ombudsman for Long-Term Care; and

 

(2) for residents who receive home and community-based waiver services under chapter 256S and section 256B.49, provide notice to the resident's case manager;.

 

Subd. 2.  Prohibited ground for nonrenewal.  (a) A facility must not decline to renew a resident's housing under an assisted living contract on the ground that the resident changes from using private funds to using public funds to pay for housing if the facility has represented or advertised that the facility accepts public funds to cover the costs of housing or makes any similar representation regarding the ability of the resident to remain in the facility when the resident's private funds are exhausted.

 

(b) A resident must notify the facility of the resident's intention to apply for public assistance to pay for housing or services, or both, and must make a timely application to the appropriate government agency or agencies.  The facility must inform the resident at the time the resident moves into the facility and once annually of the facility's policy regarding converting from using private funds to public funds to pay for housing or services, or both, and of the resident's obligation to notify the facility of the resident's intent to apply for public assistance and to make a timely application for public assistance.

 

(c) This subdivision does not prohibit a facility from terminating an assisted living contract for nonpayment according to section 144G.52, subdivision 3, or for a violation of the assisted living contract according to section 144G.52, subdivision 4.

 

(d) If a resident's application for public funds is not processed within 30 days, the resident may contact the Office of Ombudsman for Long-Term Care to facilitate timely completion of enrollment with the appropriate lead agency.

 

Subd. 3.  Requirements following notice.  If a facility provides notice of nonrenewal according to subdivision 1, the facility must:

 

(3) (1) ensure a coordinated move to a safe location, as defined in section 144G.55, subdivision 2, that is appropriate for the resident;

 

(4) (2) ensure a coordinated move to an appropriate service provider identified by the facility, if services are still needed and desired by the resident;

 

(5) (3) consult and cooperate with the resident, legal representative, designated representative, case manager for a resident who receives home and community-based waiver services under chapter 256S and section 256B.49, relevant health professionals, and any other persons of the resident's choosing to make arrangements to move the resident, including consideration of the resident's goals; and

 

(6) (4) prepare a written plan to prepare for the move.

 

Subd. 4.  Right to move to location of resident's choosing or to use provider of resident's choosing.  (d) A resident may decline to move to the location the facility identifies or to accept services from a service provider the facility identifies, and may instead choose to move to a location of the resident's choosing or receive services from a service provider of the resident's choosing within the timeline prescribed in the nonrenewal notice.

 

EFFECTIVE DATE.  This section is effective January 1, 2026, and applies to all assisted living contracts executed on or after January 1, 2026.


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Sec. 24.  Minnesota Statutes 2024, section 144G.70, subdivision 2, is amended to read:

 

Subd. 2.  Initial reviews, assessments, and monitoring.  (a) Residents who are not receiving any assisted living services shall not be required to undergo an initial nursing assessment.

 

(b) An assisted living facility shall conduct a nursing assessment by a registered nurse of the physical and cognitive needs of the prospective resident and propose a temporary service plan prior to the date on which a prospective resident executes a contract with a facility or the date on which a prospective resident moves in, whichever is earlier.  If necessitated by either the geographic distance between the prospective resident and the facility, or urgent or unexpected circumstances, the assessment may be conducted using telecommunication methods based on practice standards that meet the resident's needs and reflect person-centered planning and care delivery.

 

(c) Resident reassessment and monitoring must be conducted no more than 14 calendar days after initiation of services.  Ongoing resident reassessment and monitoring must be conducted as needed based on changes in the needs of the resident and cannot exceed 90 calendar days from the last date of the assessment.  by a registered nurse:

 

(1) no more than 14 calendar days after initiation of services;

 

(2) as needed based on changes in the resident's needs; and

 

(3) at least every 90 calendar days.

 

(d) Sections of the reassessment and monitoring in paragraph (c) may be completed by a licensed practical nurse as allowed under the Nurse Practice Act in sections 148.171 to 148.285.  A registered nurse must review the findings as part of the resident's reassessment.

 

(d) (e) For residents only receiving assisted living services specified in section 144G.08, subdivision 9, clauses (1) to (5), the facility shall complete an individualized initial review of the resident's needs and preferences.  The initial review must be completed within 30 calendar days of the start of services.  Resident monitoring and review must be conducted as needed based on changes in the needs of the resident and cannot exceed 90 calendar days from the date of the last review.

 

(e) (f) A facility must inform the prospective resident of the availability of and contact information for long-term care consultation services under section 256B.0911, prior to the date on which a prospective resident executes a contract with a facility or the date on which a prospective resident moves in, whichever is earlier.

 

Sec. 25.  Minnesota Statutes 2024, section 144G.71, subdivision 3, is amended to read:

 

Subd. 3.  Individualized medication monitoring and reassessment.  The assisted living facility A registered nurse, advanced practice registered nurse, or qualified staff delegated the task by a registered nurse must monitor and reassess the resident's medication management services as needed under subdivision 2 when the resident presents with symptoms or other issues that may be medication-related and, at a minimum, annually.

 

Sec. 26.  Minnesota Statutes 2024, section 144G.71, subdivision 5, is amended to read:

 

Subd. 5.  Individualized medication management plan.  (a) For each resident receiving medication management services, the assisted living facility a registered nurse, advanced practice registered nurse, or qualified staff delegated the task by a registered nurse must prepare and include in the service plan a written statement of the medication management services that will be provided to the resident.  The facility must develop and maintain a current individualized medication management record for each resident based on the resident's assessment that must contain the following:

 

(1) a statement describing the medication management services that will be provided;


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(2) a description of storage of medications based on the resident's needs and preferences, risk of diversion, and consistent with the manufacturer's directions;

 

(3) documentation of specific resident instructions relating to the administration of medications;

 

(4) identification of persons responsible for monitoring medication supplies and ensuring that medication refills are ordered on a timely basis;

 

(5) identification of medication management tasks that may be delegated to unlicensed personnel;

 

(6) procedures for staff notifying a registered nurse or appropriate licensed health professional when a problem arises with medication management services; and

 

(7) any resident-specific requirements relating to documenting medication administration, verifications that all medications are administered as prescribed, and monitoring of medication use to prevent possible complications or adverse reactions.

 

(b) The medication management record must be current and updated when there are any changes.

 

(c) Medication reconciliation must be completed when a licensed nurse, licensed health professional, or authorized prescriber is providing medication management.

 

Sec. 27.  Minnesota Statutes 2024, section 144G.81, subdivision 1, is amended to read:

 

Subdivision 1.  Fire protection and physical environment.  An assisted living facility with dementia care that has a secured dementia care unit must meet the requirements of section 144G.45 and the following additional requirements:

 

(1) a hazard vulnerability an assessment or of safety risk risks must be performed on and around the property.  The hazards indicated safety risks identified by the facility on the assessment must be assessed and mitigated to protect the residents from harm.  The mitigation efforts must be documented in the facility's records; and

 

(2) the facility shall be protected throughout by an approved supervised automatic sprinkler system by August 1, 2029.

 

Sec. 28.  Minnesota Statutes 2024, section 144G.91, is amended by adding a subdivision to read:

 

Subd. 6a.  Designated support person.  (a) Subject to paragraph (c), an assisted living facility must allow, at a minimum, one designated support person chosen by the resident to be physically present with the resident at times of the resident's choosing while the resident resides at the facility.

 

(b) For purposes of this subdivision, "designated support person" means any person chosen by the resident to provide comfort to the resident, including but not limited to the resident's spouse, partner, family member, or another person related by affinity.

 

(c) A facility may restrict or prohibit the presence of a designated support person if the designated support person is acting in a violent or threatening manner toward others.  A facility may restrict the presence of a resident's designated support person to the extent necessary to ensure a designated support person who is not a facility resident is not living at the facility on a short-term or long-term basis.  If the facility restricts or prohibits a resident's designated support person from being present, the resident may file a complaint or inquiry with the facility according to subdivision 20, the Office of Ombudsman for Long-Term Care, or the Office of Ombudsman for Mental Health and Developmental Disabilities.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.


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Sec. 29.  Minnesota Statutes 2024, section 148.235, subdivision 10, is amended to read:

 

Subd. 10.  Administration of medications by unlicensed personnel in nursing facilities.  Notwithstanding the provisions of Minnesota Rules, part 4658.1360, subpart 2, a graduate of a foreign nursing school who has successfully completed an approved competency evaluation under the provisions of section 144A.61 is eligible to administer medications in a nursing facility upon completion of a any medication training program for unlicensed personnel approved by the commissioner of health under section 144A.61, subdivision 3b, or offered through a postsecondary educational institution, which meets the requirements specified in Minnesota Rules, part 4658.1360, subpart 2, item B.

 

Sec. 30.  REVISOR INSTRUCTION.

 

The revisor of statutes must modify the section headnote for Minnesota Statutes, section 144G.81, to read "ADDITIONAL REQUIREMENTS FOR ASSISTED LIVING FACILITIES WITH DEMENTIA CARE AND ASSISTED LIVING FACILITIES WITH SECURED DEMENTIA CARE UNITS."

 

Sec. 31.  REVISOR INSTRUCTION.

 

(a) The revisor of statutes shall renumber Minnesota Statutes, section 144A.70, subdivision 4a, as Minnesota Statutes, section 144A.70, subdivision 4c, and correct all cross-references.

 

(b) The revisor of statutes shall renumber Minnesota Statutes, section 144A.70, subdivision 7, as Minnesota Statutes, section 144A.714, and correct all cross-references.

 

Sec. 32.  REPEALER.

 

Minnesota Statutes 2024, section 144G.9999, subdivisions 1, 2, and 3, are repealed.

 

ARTICLE 3

DIRECT CARE AND TREATMENT

 

Section 1.  Minnesota Statutes 2024, section 13.46, subdivision 3, is amended to read:

 

Subd. 3.  Investigative data.  (a) Data on persons, including data on vendors of services, licensees, and applicants that is collected, maintained, used, or disseminated by the welfare system in an investigation, authorized by statute, and relating to the enforcement of rules or law are confidential data on individuals pursuant to section 13.02, subdivision 3, or protected nonpublic data not on individuals pursuant to section 13.02, subdivision 13, and shall not be disclosed except:

 

(1) pursuant to section 13.05;

 

(2) pursuant to statute or valid court order;

 

(3) to a party named in a civil or criminal proceeding, administrative or judicial, for preparation of defense;

 

(4) to an agent of the welfare system or an investigator acting on behalf of a county, state, or federal government, including a law enforcement officer or attorney in the investigation or prosecution of a criminal, civil, or administrative proceeding, unless the commissioner of human services or; the commissioner of children, youth, and families; or the Direct Care and Treatment executive board determines that disclosure may compromise a Department of Human Services or; Department of Children, Youth, and Families; or Direct Care and Treatment ongoing investigation; or


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(5) to provide notices required or permitted by statute.

 

The data referred to in this subdivision shall be classified as public data upon submission to an administrative law judge or court in an administrative or judicial proceeding.  Inactive welfare investigative data shall be treated as provided in section 13.39, subdivision 3.

 

(b) Notwithstanding any other provision in law, the commissioner of human services shall provide all active and inactive investigative data, including the name of the reporter of alleged maltreatment under section 626.557 or chapter 260E, to the ombudsman for mental health and developmental disabilities upon the request of the ombudsman.

 

(c) Notwithstanding paragraph (a) and section 13.39, the existence of an investigation by the commissioner of human services of possible overpayments of public funds to a service provider or recipient may be disclosed if the commissioner determines that it will not compromise the investigation.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 2.  Minnesota Statutes 2024, section 13.46, subdivision 4, is amended to read:

 

Subd. 4.  Licensing data.  (a) As used in this subdivision:

 

(1) "licensing data" are all data collected, maintained, used, or disseminated by the welfare system pertaining to persons licensed or registered or who apply for licensure or registration or who formerly were licensed or registered under the authority of the commissioner of human services;

 

(2) "client" means a person who is receiving services from a licensee or from an applicant for licensure; and

 

(3) "personal and personal financial data" are Social Security numbers, identity of and letters of reference, insurance information, reports from the Bureau of Criminal Apprehension, health examination reports, and social/home studies.

 

(b)(1)(i) Except as provided in paragraph (c), the following data on applicants, license holders, certification holders, and former licensees are public:  name, address, telephone number of licensees, email addresses except for family child foster care, date of receipt of a completed application, dates of licensure, licensed capacity, type of client preferred, variances granted, record of training and education in child care and child development, type of dwelling, name and relationship of other family members, previous license history, class of license, the existence and status of complaints, and the number of serious injuries to or deaths of individuals in the licensed program as reported to the commissioner of human services; the commissioner of children, youth, and families; the local social services agency; or any other county welfare agency.  For purposes of this clause, a serious injury is one that is treated by a physician.

 

(ii) Except as provided in item (v), when a correction order, an order to forfeit a fine, an order of license suspension, an order of temporary immediate suspension, an order of license revocation, an order of license denial, or an order of conditional license has been issued, or a complaint is resolved, the following data on current and former licensees and applicants are public:  the general nature of the complaint or allegations leading to the temporary immediate suspension; the substance and investigative findings of the licensing or maltreatment complaint, licensing violation, or substantiated maltreatment; the existence of settlement negotiations; the record of informal resolution of a licensing violation; orders of hearing; findings of fact; conclusions of law; specifications of the final correction order, fine, suspension, temporary immediate suspension, revocation, denial, or conditional license contained in the record of licensing action; whether a fine has been paid; and the status of any appeal of these actions.


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(iii) When a license denial under section 142A.15 or 245A.05 or a sanction under section 142B.18 or 245A.07 is based on a determination that a license holder, applicant, or controlling individual is responsible for maltreatment under section 626.557 or chapter 260E, the identity of the applicant, license holder, or controlling individual as the individual responsible for maltreatment is public data at the time of the issuance of the license denial or sanction.

 

(iv) When a license denial under section 142A.15 or 245A.05 or a sanction under section 142B.18 or 245A.07 is based on a determination that a license holder, applicant, or controlling individual is disqualified under chapter 245C, the identity of the license holder, applicant, or controlling individual as the disqualified individual is public data at the time of the issuance of the licensing sanction or denial.  If the applicant, license holder, or controlling individual requests reconsideration of the disqualification and the disqualification is affirmed, the reason for the disqualification and the reason to not set aside the disqualification are private data.

 

(v) A correction order or fine issued to a child care provider for a licensing violation is private data on individuals under section 13.02, subdivision 12, or nonpublic data under section 13.02, subdivision 9, if the correction order or fine is seven years old or older.

 

(2) For applicants who withdraw their application prior to licensure or denial of a license, the following data are public:  the name of the applicant, the city and county in which the applicant was seeking licensure, the dates of the commissioner's receipt of the initial application and completed application, the type of license sought, and the date of withdrawal of the application.

 

(3) For applicants who are denied a license, the following data are public:  the name and address of the applicant, the city and county in which the applicant was seeking licensure, the dates of the commissioner's receipt of the initial application and completed application, the type of license sought, the date of denial of the application, the nature of the basis for the denial, the existence of settlement negotiations, the record of informal resolution of a denial, orders of hearings, findings of fact, conclusions of law, specifications of the final order of denial, and the status of any appeal of the denial.

 

(4) When maltreatment is substantiated under section 626.557 or chapter 260E and the victim and the substantiated perpetrator are affiliated with a program licensed under chapter 142B or 245A; the commissioner of human services; commissioner of children, youth, and families; local social services agency; or county welfare agency may inform the license holder where the maltreatment occurred of the identity of the substantiated perpetrator and the victim.

 

(5) Notwithstanding clause (1), for child foster care, only the name of the license holder and the status of the license are public if the county attorney has requested that data otherwise classified as public data under clause (1) be considered private data based on the best interests of a child in placement in a licensed program.

 

(c) The following are private data on individuals under section 13.02, subdivision 12, or nonpublic data under section 13.02, subdivision 9:  personal and personal financial data on family day care program and family foster care program applicants and licensees and their family members who provide services under the license.

 

(d) The following are private data on individuals:  the identity of persons who have made reports concerning licensees or applicants that appear in inactive investigative data, and the records of clients or employees of the licensee or applicant for licensure whose records are received by the licensing agency for purposes of review or in anticipation of a contested matter.  The names of reporters of complaints or alleged violations of licensing standards under chapters 142B, 245A, 245B, 245C, and 245D, and applicable rules and alleged maltreatment under section 626.557 and chapter 260E, are confidential data and may be disclosed only as provided in section 260E.21, subdivision 4; 260E.35; or 626.557, subdivision 12b.


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(e) Data classified as private, confidential, nonpublic, or protected nonpublic under this subdivision become public data if submitted to a court or administrative law judge as part of a disciplinary proceeding in which there is a public hearing concerning a license which has been suspended, immediately suspended, revoked, or denied.

 

(f) Data generated in the course of licensing investigations that relate to an alleged violation of law are investigative data under subdivision 3.

 

(g) Data that are not public data collected, maintained, used, or disseminated under this subdivision that relate to or are derived from a report as defined in section 260E.03, or 626.5572, subdivision 18, are subject to the destruction provisions of sections 260E.35, subdivision 6, and 626.557, subdivision 12b.

 

(h) Upon request, not public data collected, maintained, used, or disseminated under this subdivision that relate to or are derived from a report of substantiated maltreatment as defined in section 626.557 or chapter 260E may be exchanged with the Department of Health for purposes of completing background studies pursuant to section 144.057 and with the Department of Corrections for purposes of completing background studies pursuant to section 241.021.

 

(i) Data on individuals collected according to licensing activities under chapters 142B, 245A, and 245C, data on individuals collected by the commissioner of human services according to investigations under section 626.557 and chapters 142B, 245A, 245B, 245C, 245D, and 260E may be shared with the Department of Human Rights, the Department of Health, the Department of Corrections, the ombudsman for mental health and developmental disabilities, and the individual's professional regulatory board when there is reason to believe that laws or standards under the jurisdiction of those agencies may have been violated or the information may otherwise be relevant to the board's regulatory jurisdiction.  Background study data on an individual who is the subject of a background study under chapter 245C for a licensed service for which the commissioner of human services or; the commissioner of children, youth, and families; or the Direct Care and Treatment executive board is the license holder may be shared with the commissioner and the commissioner's delegate by the licensing division.  Unless otherwise specified in this chapter, the identity of a reporter of alleged maltreatment or licensing violations may not be disclosed.

 

(j) In addition to the notice of determinations required under sections 260E.24, subdivisions 5 and 7, and 260E.30, subdivision 6, paragraphs (b), (c), (d), (e), and (f), if the commissioner of children, youth, and families or the local social services agency has determined that an individual is a substantiated perpetrator of maltreatment of a child based on sexual abuse, as defined in section 260E.03, and the commissioner or local social services agency knows that the individual is a person responsible for a child's care in another facility, the commissioner or local social services agency shall notify the head of that facility of this determination.  The notification must include an explanation of the individual's available appeal rights and the status of any appeal.  If a notice is given under this paragraph, the government entity making the notification shall provide a copy of the notice to the individual who is the subject of the notice.

 

(k) All not public data collected, maintained, used, or disseminated under this subdivision and subdivision 3 may be exchanged between the Department of Human Services, Licensing Division, and the Department of Corrections for purposes of regulating services for which the Department of Human Services and the Department of Corrections have regulatory authority.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 3.  Minnesota Statutes 2024, 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


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(2) an unincorporated business, partnership, corporation, association, or organization whose annual revenues did not exceed $7,000,000 at the time the civil action was filed or the contested case proceeding was initiated.

 

(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 or, 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.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 4.  Minnesota Statutes 2024, section 43A.241, is amended to read:

 

43A.241 INSURANCE CONTRIBUTIONS; FORMER EMPLOYEES.

 

(a) This section applies to a person who:

 

(1) was employed by the commissioner of corrections, the commissioner of human services, or the Direct Care and Treatment executive board;

 

(2) was covered by the correctional employee retirement plan under section 352.91 or the general state employees retirement plan of the Minnesota State Retirement System as defined in section 352.021;

 

(3) while employed under clause (1), was assaulted by:

 

(i) a person under correctional supervision for a criminal offense; or

 

(ii) a client or patient at the Minnesota Sex Offender Program, or at a state-operated forensic services program as defined in section 352.91, subdivision 3j; and

 

(4) as a direct result of the assault under clause (3), was determined to be totally and permanently physically disabled under laws governing the Minnesota State Retirement System.

 

(b) For a person to whom this section applies, the commissioner of corrections, the commissioner of human services, or the Direct Care and Treatment executive board, using existing budget resources, must continue to make the employer contribution for medical and dental benefits under the State Employee Group Insurance Program after the person terminates state service.  If the person had dependent coverage at the time of terminating state service, employer contributions for dependent coverage also must continue under this section.  The employer contributions must be in the amount of the employer contribution for active state employees at the time each payment is made.  The employer contributions must continue until the person reaches age 65, provided the person makes the required employee contributions, in the amount required of an active state employee, at the time and in the manner specified by the commissioner or executive board.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 5.  Minnesota Statutes 2024, section 62J.495, subdivision 2, is amended to read:

 

Subd. 2.  E-Health Advisory Committee.  (a) The commissioner shall establish an e-Health Advisory Committee governed by section 15.059 to advise the commissioner on the following matters:

 

(1) assessment of the adoption and effective use of health information technology by the state, licensed health care providers and facilities, and local public health agencies;


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(2) recommendations for implementing a statewide interoperable health information infrastructure, to include estimates of necessary resources, and for determining standards for clinical data exchange, clinical support programs, patient privacy requirements, and maintenance of the security and confidentiality of individual patient data;

 

(3) recommendations for encouraging use of innovative health care applications using information technology and systems to improve patient care and reduce the cost of care, including applications relating to disease management and personal health management that enable remote monitoring of patients' conditions, especially those with chronic conditions; and

 

(4) other related issues as requested by the commissioner.

 

(b) The members of the e-Health Advisory Committee shall include the commissioners, or commissioners' designees, of health, human services, administration, and commerce; a representative of the Direct Care and Treatment executive board; and additional members to be appointed by the commissioner to include persons representing Minnesota's local public health agencies, licensed hospitals and other licensed facilities and providers, private purchasers, the medical and nursing professions, health insurers and health plans, the state quality improvement organization, academic and research institutions, consumer advisory organizations with an interest and expertise in health information technology, and other stakeholders as identified by the commissioner to fulfill the requirements of section 3013, paragraph (g), of the HITECH Act.

 

(c) This subdivision expires June 30, 2031.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 6.  Minnesota Statutes 2024, section 97A.441, subdivision 3, is amended to read:

 

Subd. 3.  Angling; residents of state institutions.  The commissioner may issue a license, without a fee, to take fish by angling to a person that is a ward of the commissioner of human services and a resident of a state institution under the control of the Direct Care and Treatment executive board upon application by the commissioner of human services.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 7.  Minnesota Statutes 2024, section 144.53, is amended to read:

 

144.53 FEES.

 

Each application for a license, or renewal thereof, to operate a hospital, sanitarium or other institution for the hospitalization or care of human beings, within the meaning of sections 144.50 to 144.56, except applications by the Minnesota Veterans Home, the commissioner of human services Direct Care and Treatment executive board for the licensing of state institutions, or by the administrator for the licensing of the University of Minnesota hospitals, shall be accompanied by a fee to be prescribed by the state commissioner of health pursuant to section 144.122.  No fee shall be refunded.  Licenses shall expire and shall be renewed as prescribed by the commissioner of health pursuant to section 144.122.

 

No license granted hereunder shall be assignable or transferable.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.


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Sec. 8.  Minnesota Statutes 2024, section 144.651, subdivision 2, is amended to read:

 

Subd. 2.  Definitions.  (a) For the purposes of this section, "patient" means a person who is admitted to an acute care inpatient facility for a continuous period longer than 24 hours, for the purpose of diagnosis or treatment bearing on the physical or mental health of that person.  For purposes of subdivisions 4 to 9, 12, 13, 15, 16, and 18 to 20, "patient" also means a person who receives health care services at an outpatient surgical center or at a birth center licensed under section 144.615.  "Patient" also means a minor who is admitted to a residential program as defined in section 253C.01 paragraph (c).  For purposes of subdivisions 1, 3 to 16, 18, 20 and 30, "patient" also means any person who is receiving mental health treatment on an outpatient basis or in a community support program or other community-based program. 

 

(b) "Resident" means a person who is admitted to a nonacute care facility including extended care facilities, nursing homes, and boarding care homes for care required because of prolonged mental or physical illness or disability, recovery from injury or disease, or advancing age.  For purposes of all subdivisions except subdivisions 28 and 29, "resident" also means a person who is admitted to a facility licensed as a board and lodging facility under Minnesota Rules, parts 4625.0100 to 4625.2355, a boarding care home under sections 144.50 to 144.56, or a supervised living facility under Minnesota Rules, parts 4665.0100 to 4665.9900, and which operates a rehabilitation program licensed under chapter 245G or 245I, or Minnesota Rules, parts 9530.6510 to 9530.6590.

 

(c) "Residential program" means (1) a hospital-based primary treatment program that provides residential treatment to minors with emotional disturbance as defined by the Comprehensive Children's Mental Health Act in sections 245.487 to 245.4889, or (2) a facility licensed by the state under Minnesota Rules, parts 2960.0580 to 2960.0700, to provide services to minors on a 24-hour basis.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 9.  Minnesota Statutes 2024, section 144.651, subdivision 4, is amended to read:

 

Subd. 4.  Information about rights.  Patients and residents shall, at admission, be told that there are legal rights for their protection during their stay at the facility or throughout their course of treatment and maintenance in the community and that these are described in an accompanying written statement of the applicable rights and responsibilities set forth in this section.  In the case of patients admitted to residential programs as defined in section 253C.01, the written statement shall also describe the right of a person 16 years old or older to request release as provided in section 253B.04, subdivision 2, and shall list the names and telephone numbers of individuals and organizations that provide advocacy and legal services for patients in residential programs.  Reasonable accommodations shall be made for people who have communication disabilities and those who speak a language other than English.  Current facility policies, inspection findings of state and local health authorities, and further explanation of the written statement of rights shall be available to patients, residents, their guardians or their chosen representatives upon reasonable request to the administrator or other designated staff person, consistent with chapter 13, the Data Practices Act, and section 626.557, relating to vulnerable adults.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 10.  Minnesota Statutes 2024, section 144.651, subdivision 20, is amended to read:

 

Subd. 20.  Grievances.  Patients and residents shall be encouraged and assisted, throughout their stay in a facility or their course of treatment, to understand and exercise their rights as patients, residents, and citizens.  Patients and residents may voice grievances and recommend changes in policies and services to facility staff and others of their choice, free from restraint, interference, coercion, discrimination, or reprisal, including threat of discharge.  Notice of the grievance procedure of the facility or program, as well as addresses and telephone numbers for the Office of Health Facility Complaints and the area nursing home ombudsman pursuant to the Older Americans Act, section 307(a)(12) shall be posted in a conspicuous place.


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Every acute care inpatient facility, every residential program as defined in section 253C.01, every nonacute care facility, and every facility employing more than two people that provides outpatient mental health services shall have a written internal grievance procedure that, at a minimum, sets forth the process to be followed; specifies time limits, including time limits for facility response; provides for the patient or resident to have the assistance of an advocate; requires a written response to written grievances; and provides for a timely decision by an impartial decision maker if the grievance is not otherwise resolved.  Compliance by hospitals, residential programs as defined in section 253C.01 which are hospital-based primary treatment programs, and outpatient surgery centers with section 144.691 and compliance by health maintenance organizations with section 62D.11 is deemed to be compliance with the requirement for a written internal grievance procedure.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 11.  Minnesota Statutes 2024, section 144.651, subdivision 31, is amended to read:

 

Subd. 31.  Isolation and restraints.  A minor patient who has been admitted to a residential program as defined in section 253C.01 has the right to be free from physical restraint and isolation except in emergency situations involving a likelihood that the patient will physically harm the patient's self or others.  These procedures may not be used for disciplinary purposes, to enforce program rules, or for the convenience of staff.  Isolation or restraint may be used only upon the prior authorization of a physician, advanced practice registered nurse, physician assistant, psychiatrist, or licensed psychologist, only when less restrictive measures are ineffective or not feasible and only for the shortest time necessary.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 12.  Minnesota Statutes 2024, section 144.651, subdivision 32, is amended to read:

 

Subd. 32.  Treatment plan.  A minor patient who has been admitted to a residential program as defined in section 253C.01 has the right to a written treatment plan that describes in behavioral terms the case problems, the precise goals of the plan, and the procedures that will be utilized to minimize the length of time that the minor requires inpatient treatment.  The plan shall also state goals for release to a less restrictive facility and follow-up treatment measures and services, if appropriate.  To the degree possible, the minor patient and the minor patient's parents or guardian shall be involved in the development of the treatment and discharge plan.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 13.  Minnesota Statutes 2024, section 144A.07, is amended to read:

 

144A.07 FEES.

 

Each application for a license to operate a nursing home, or for a renewal of license, except an application by the Minnesota Veterans Home or the commissioner of human services Direct Care and Treatment executive board for the licensing of state institutions, shall be accompanied by a fee to be prescribed by the commissioner of health pursuant to section 144.122.  No fee shall be refunded.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 14.  Minnesota Statutes 2024, section 146A.08, subdivision 4, is amended to read:

 

Subd. 4.  Examination; access to medical data.  (a) If the commissioner has probable cause to believe that an unlicensed complementary and alternative health care practitioner has engaged in conduct prohibited by subdivision 1, paragraph (h), (i), (j), or (k), the commissioner may issue an order directing the practitioner to submit to a mental


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or physical examination or substance use disorder evaluation.  For the purpose of this subdivision, every unlicensed complementary and alternative health care practitioner is deemed to have consented to submit to a mental or physical examination or substance use disorder evaluation when ordered to do so in writing by the commissioner and further to have waived all objections to the admissibility of the testimony or examination reports of the health care provider performing the examination or evaluation on the grounds that the same constitute a privileged communication.  Failure of an unlicensed complementary and alternative health care practitioner to submit to an examination or evaluation when ordered, unless the failure was due to circumstances beyond the practitioner's control, constitutes an admission that the unlicensed complementary and alternative health care practitioner violated subdivision 1, paragraph (h), (i), (j), or (k), based on the factual specifications in the examination or evaluation order and may result in a default and final disciplinary order being entered after a contested case hearing.  An unlicensed complementary and alternative health care practitioner affected under this paragraph shall at reasonable intervals be given an opportunity to demonstrate that the practitioner can resume the provision of complementary and alternative health care practices with reasonable safety to clients.  In any proceeding under this paragraph, neither the record of proceedings nor the orders entered by the commissioner shall be used against an unlicensed complementary and alternative health care practitioner in any other proceeding.

 

(b) In addition to ordering a physical or mental examination or substance use disorder evaluation, the commissioner may, notwithstanding section 13.384; 144.651; 595.02; or any other law limiting access to medical or other health data, obtain medical data and health records relating to an unlicensed complementary and alternative health care practitioner without the practitioner's consent if the commissioner has probable cause to believe that a practitioner has engaged in conduct prohibited by subdivision 1, paragraph (h), (i), (j), or (k).  The medical data may be requested from a provider as defined in section 144.291, subdivision 2, paragraph (i), an insurance company, or a government agency, including the Department of Human Services and Direct Care and Treatment.  A provider, insurance company, or government agency shall comply with any written request of the commissioner under this subdivision and is not liable in any action for damages for releasing the data requested by the commissioner if the data are released pursuant to a written request under this subdivision, unless the information is false and the person or organization giving the information knew or had reason to believe the information was false.  Information obtained under this subdivision is private data under section 13.41.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 15.  Minnesota Statutes 2024, section 147.091, subdivision 6, is amended to read:

 

Subd. 6.  Mental examination; access to medical data.  (a) If the board has probable cause to believe that a regulated person comes under subdivision 1, paragraph (1), it may direct the person to submit to a mental or physical examination.  For the purpose of this subdivision every regulated person is deemed to have consented to submit to a mental or physical examination when directed in writing by the board and further to have waived all objections to the admissibility of the examining physicians' testimony or examination reports on the ground that the same constitute a privileged communication.  Failure of a regulated person to submit to an examination when directed constitutes an admission of the allegations against the person, unless the failure was due to circumstance beyond the person's control, in which case a default and final order may be entered without the taking of testimony or presentation of evidence.  A regulated person affected under this paragraph shall at reasonable intervals be given an opportunity to demonstrate that the person can resume the competent practice of the regulated profession with reasonable skill and safety to the public.

 

In any proceeding under this paragraph, neither the record of proceedings nor the orders entered by the board shall be used against a regulated person in any other proceeding.

 

(b) In addition to ordering a physical or mental examination, the board may, notwithstanding section 13.384, 144.651, or any other law limiting access to medical or other health data, obtain medical data and health records relating to a regulated person or applicant without the person's or applicant's consent if the board has probable cause


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to believe that a regulated person comes under subdivision 1, paragraph (1).  The medical data may be requested from a provider, as defined in section 144.291, subdivision 2, paragraph (i), an insurance company, or a government agency, including the Department of Human Services and Direct Care and Treatment.  A provider, insurance company, or government agency shall comply with any written request of the board under this subdivision and is not liable in any action for damages for releasing the data requested by the board if the data are released pursuant to a written request under this subdivision, unless the information is false and the provider giving the information knew, or had reason to believe, the information was false.  Information obtained under this subdivision is classified as private under sections 13.01 to 13.87.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 16.  Minnesota Statutes 2024, section 147A.13, subdivision 6, is amended to read:

 

Subd. 6.  Mental examination; access to medical data.  (a) If the board has probable cause to believe that a physician assistant comes under subdivision 1, clause (1), it may direct the physician assistant to submit to a mental or physical examination.  For the purpose of this subdivision, every physician assistant licensed under this chapter is deemed to have consented to submit to a mental or physical examination when directed in writing by the board and further to have waived all objections to the admissibility of the examining physicians' testimony or examination reports on the ground that the same constitute a privileged communication.  Failure of a physician assistant to submit to an examination when directed constitutes an admission of the allegations against the physician assistant, unless the failure was due to circumstance beyond the physician assistant's control, in which case a default and final order may be entered without the taking of testimony or presentation of evidence.  A physician assistant affected under this subdivision shall at reasonable intervals be given an opportunity to demonstrate that the physician assistant can resume competent practice with reasonable skill and safety to patients.  In any proceeding under this subdivision, neither the record of proceedings nor the orders entered by the board shall be used against a physician assistant in any other proceeding.

 

(b) In addition to ordering a physical or mental examination, the board may, notwithstanding sections 13.384, 144.651, or any other law limiting access to medical or other health data, obtain medical data and health records relating to a licensee or applicant without the licensee's or applicant's consent if the board has probable cause to believe that a physician assistant comes under subdivision 1, clause (1).

 

The medical data may be requested from a provider, as defined in section 144.291, subdivision 2, paragraph (i), an insurance company, or a government agency, including the Department of Human Services and Direct Care and Treatment.  A provider, insurance company, or government agency shall comply with any written request of the board under this subdivision and is not liable in any action for damages for releasing the data requested by the board if the data are released pursuant to a written request under this subdivision, unless the information is false and the provider giving the information knew, or had reason to believe, the information was false.  Information obtained under this subdivision is classified as private under chapter 13.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 17.  Minnesota Statutes 2024, section 148.10, subdivision 1, is amended to read:

 

Subdivision 1.  Grounds.  (a) The state Board of Chiropractic Examiners may refuse to grant, or may revoke, suspend, condition, limit, restrict or qualify a license to practice chiropractic, or may cause the name of a person licensed to be removed from the records in the office of the court administrator of the district court for:

 

(1) advertising that is false or misleading; that violates a rule of the board; or that claims the cure of any condition or disease;


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(2) the employment of fraud or deception in applying for a license or in passing the examination provided for in section 148.06 or conduct which subverts or attempts to subvert the licensing examination process;

 

(3) the practice of chiropractic under a false or assumed name or the impersonation of another practitioner of like or different name;

 

(4) the conviction of a crime involving moral turpitude;

 

(5) the conviction, during the previous five years, of a felony reasonably related to the practice of chiropractic;

 

(6) habitual intemperance in the use of alcohol or drugs;

 

(7) practicing under a license which has not been renewed;

 

(8) advanced physical or mental disability;

 

(9) the revocation or suspension of a license to practice chiropractic; or other disciplinary action against the licensee; or the denial of an application for a license by the proper licensing authority of another state, territory or country; or failure to report to the board that charges regarding the person's license have been brought in another state or jurisdiction;

 

(10) the violation of, or failure to comply with, the provisions of sections 148.01 to 148.105, the rules of the state Board of Chiropractic Examiners, or a lawful order of the board;

 

(11) unprofessional conduct;

 

(12) being unable to practice chiropractic with reasonable skill and safety to patients by reason of illness, professional incompetence, senility, drunkenness, use of drugs, narcotics, chemicals or any other type of material, or as a result of any mental or physical condition, including deterioration through the aging process or loss of motor skills.  If the board has probable cause to believe that a person comes within this clause, it shall direct the person to submit to a mental or physical examination.  For the purpose of this clause, every person licensed under this chapter shall be deemed to have given consent to submit to a mental or physical examination when directed in writing by the board and further to have waived all objections to the admissibility of the examining physicians' testimony or examination reports on the ground that the same constitute a privileged communication.  Failure of a person to submit to such examination when directed shall constitute an admission of the allegations, unless the failure was due to circumstances beyond the person's control, in which case a default and final order may be entered without the taking of testimony or presentation of evidence.  A person affected under this clause shall at reasonable intervals be afforded an opportunity to demonstrate that the person can resume the competent practice of chiropractic with reasonable skill and safety to patients.

 

In addition to ordering a physical or mental examination, the board may, notwithstanding section 13.384, 144.651, or any other law limiting access to health data, obtain health data and health records relating to a licensee or applicant without the licensee's or applicant's consent if the board has probable cause to believe that a doctor of chiropractic comes under this clause.  The health data may be requested from a provider, as defined in section 144.291, subdivision 2, paragraph (i), an insurance company, or a government agency, including the Department of Human Services and Direct Care and Treatment.  A provider, insurance company, or government agency shall comply with any written request of the board under this subdivision and is not liable in any action for damages for releasing the data requested by the board if the data are released pursuant to a written request under this subdivision, unless the information is false and the provider or entity giving the information knew, or had reason to believe, the information was false.  Information obtained under this subdivision is classified as private under sections 13.01 to 13.87.


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In any proceeding under this clause, neither the record of proceedings nor the orders entered by the board shall be used against a person in any other proceeding;

 

(13) aiding or abetting an unlicensed person in the practice of chiropractic, except that it is not a violation of this clause for a doctor of chiropractic to employ, supervise, or delegate functions to a qualified person who may or may not be required to obtain a license or registration to provide health services if that person is practicing within the scope of the license or registration or delegated authority;

 

(14) improper management of health records, including failure to maintain adequate health records as described in clause (18), to comply with a patient's request made under sections 144.291 to 144.298 or to furnish a health record or report required by law;

 

(15) failure to make reports required by section 148.102, subdivisions 2 and 5, or to cooperate with an investigation of the board as required by section 148.104, or the submission of a knowingly false report against another doctor of chiropractic under section 148.10, subdivision 3;

 

(16) splitting fees, or promising to pay a portion of a fee or a commission, or accepting a rebate;

 

(17) revealing a privileged communication from or relating to a patient, except when otherwise required or permitted by law;

 

(18) failing to keep written chiropractic records justifying the course of treatment of the patient, including, but not limited to, patient histories, examination results, test results, and x-rays.  Unless otherwise required by law, written records need not be retained for more than seven years and x-rays need not be retained for more than four years;

 

(19) exercising influence on the patient or client in such a manner as to exploit the patient or client for financial gain of the licensee or of a third party which shall include, but not be limited to, the promotion or sale of services, goods, or appliances;

 

(20) gross or repeated malpractice or the failure to practice chiropractic at a level of care, skill, and treatment which is recognized by a reasonably prudent chiropractor as being acceptable under similar conditions and circumstances; or

 

(21) delegating professional responsibilities to a person when the licensee delegating such responsibilities knows or has reason to know that the person is not qualified by training, experience, or licensure to perform them.

 

(b) For the purposes of paragraph (a), clause (2), conduct that subverts or attempts to subvert the licensing examination process includes, but is not limited to:  (1) conduct that violates the security of the examination materials, such as removing examination materials from the examination room or having unauthorized possession of any portion of a future, current, or previously administered licensing examination; (2) conduct that violates the standard of test administration, such as communicating with another examinee during administration of the examination, copying another examinee's answers, permitting another examinee to copy one's answers, or possessing unauthorized materials; or (3) impersonating an examinee or permitting an impersonator to take the examination on one's own behalf.

 

(c) For the purposes of paragraph (a), clauses (4) and (5), conviction as used in these subdivisions includes a conviction of an offense that if committed in this state would be deemed a felony without regard to its designation elsewhere, or a criminal proceeding where a finding or verdict of guilt is made or returned but the adjudication of guilt is either withheld or not entered.


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(d) For the purposes of paragraph (a), clauses (4), (5), and (6), a copy of the judgment or proceeding under seal of the administrator of the court or of the administrative agency which entered the same shall be admissible into evidence without further authentication and shall constitute prima facie evidence of its contents.

 

(e) For the purposes of paragraph (a), clause (11), unprofessional conduct means any unethical, deceptive or deleterious conduct or practice harmful to the public, any departure from or the failure to conform to the minimal standards of acceptable chiropractic practice, or a willful or careless disregard for the health, welfare or safety of patients, in any of which cases proof of actual injury need not be established.  Unprofessional conduct shall include, but not be limited to, the following acts of a chiropractor:

 

(1) gross ignorance of, or incompetence in, the practice of chiropractic;

 

(2) engaging in conduct with a patient that is sexual or may reasonably be interpreted by the patient as sexual, or in any verbal behavior that is seductive or sexually demeaning to a patient;

 

(3) performing unnecessary services;

 

(4) charging a patient an unconscionable fee or charging for services not rendered;

 

(5) directly or indirectly engaging in threatening, dishonest, or misleading fee collection techniques;

 

(6) perpetrating fraud upon patients, third-party payors, or others, relating to the practice of chiropractic, including violations of the Medicare or Medicaid laws or state medical assistance laws;

 

(7) advertising that the licensee will accept for services rendered assigned payments from any third-party payer as payment in full, if the effect is to give the impression of eliminating the need of payment by the patient of any required deductible or co-payment applicable in the patient's health benefit plan.  As used in this clause, "advertise" means solicitation by the licensee by means of handbills, posters, circulars, motion pictures, radio, newspapers, television, or in any other manner.  In addition to the board's power to punish for violations of this clause, violation of this clause is also a misdemeanor;

 

(8) accepting for services rendered assigned payments from any third-party payer as payment in full, if the effect is to eliminate the need of payment by the patient of any required deductible or co-payment applicable in the patient's health benefit plan, except as hereinafter provided; and

 

(9) any other act that the board by rule may define.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 18.  Minnesota Statutes 2024, section 148.261, subdivision 5, is amended to read:

 

Subd. 5.  Examination; access to medical data.  The board may take the following actions if it has probable cause to believe that grounds for disciplinary action exist under subdivision 1, clause (9) or (10):

 

(a) It may direct the applicant or nurse to submit to a mental or physical examination or substance use disorder evaluation.  For the purpose of this subdivision, when a nurse licensed under sections 148.171 to 148.285 is directed in writing by the board to submit to a mental or physical examination or substance use disorder evaluation, that person is considered to have consented and to have waived all objections to admissibility on the grounds of privilege.  Failure of the applicant or nurse to submit to an examination when directed constitutes an admission of the allegations against the applicant or nurse, unless the failure was due to circumstances beyond the person's control, and the board may enter a default and final order without taking testimony or allowing evidence to be


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presented.  A nurse affected under this paragraph shall, at reasonable intervals, be given an opportunity to demonstrate that the competent practice of professional, advanced practice registered, or practical nursing can be resumed with reasonable skill and safety to patients.  Neither the record of proceedings nor the orders entered by the board in a proceeding under this paragraph, may be used against a nurse in any other proceeding.

 

(b) It may, notwithstanding sections 13.384, 144.651, 595.02, or any other law limiting access to medical or other health data, obtain medical data and health records relating to a registered nurse, advanced practice registered nurse, licensed practical nurse, or applicant for a license without that person's consent.  The medical data may be requested from a provider, as defined in section 144.291, subdivision 2, paragraph (i), an insurance company, or a government agency, including the Department of Human Services and Direct Care and Treatment.  A provider, insurance company, or government agency shall comply with any written request of the board under this subdivision and is not liable in any action for damages for releasing the data requested by the board if the data are released pursuant to a written request under this subdivision unless the information is false and the provider giving the information knew, or had reason to believe, the information was false.  Information obtained under this subdivision is classified as private data on individuals as defined in section 13.02.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 19.  Minnesota Statutes 2024, section 148.754, is amended to read:

 

148.754 EXAMINATION; ACCESS TO MEDICAL DATA.

 

(a) If the board has probable cause to believe that a licensee comes under section 148.75, paragraph (a), clause (2), it may direct the licensee to submit to a mental or physical examination.  For the purpose of this paragraph, every licensee is deemed to have consented to submit to a mental or physical examination when directed in writing by the board and further to have waived all objections to the admissibility of the examining physicians' testimony or examination reports on the ground that they constitute a privileged communication.  Failure of the licensee to submit to an examination when directed constitutes an admission of the allegations against the person, unless the failure was due to circumstances beyond the person's control, in which case a default and final order may be entered without the taking of testimony or presentation of evidence.  A licensee affected under this paragraph shall, at reasonable intervals, be given an opportunity to demonstrate that the person can resume the competent practice of physical therapy with reasonable skill and safety to the public.

 

(b) In any proceeding under paragraph (a), neither the record of proceedings nor the orders entered by the board shall be used against a licensee in any other proceeding.

 

(c) In addition to ordering a physical or mental examination, the board may, notwithstanding section 13.384, 144.651, or any other law limiting access to medical or other health data, obtain medical data and health records relating to a licensee or applicant without the person's or applicant's consent if the board has probable cause to believe that the person comes under paragraph (a).  The medical data may be requested from a provider, as defined in section 144.291, subdivision 2, paragraph (i), an insurance company, or a government agency, including the Department of Human Services and Direct Care and Treatment.  A provider, insurance company, or government agency shall comply with any written request of the board under this paragraph and is not liable in any action for damages for releasing the data requested by the board if the data are released pursuant to a written request under this paragraph, unless the information is false and the provider giving the information knew, or had reason to believe, the information was false.  Information obtained under this paragraph is classified as private under sections 13.01 to 13.87.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.


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Sec. 20.  Minnesota Statutes 2024, section 148B.5905, is amended to read:

 

148B.5905 MENTAL, PHYSICAL, OR SUBSTANCE USE DISORDER EXAMINATION OR EVALUATION; ACCESS TO MEDICAL DATA.

 

(a) If the board has probable cause to believe section 148B.59, paragraph (a), clause (9), applies to a licensee or applicant, the board may direct the person to submit to a mental, physical, or substance use disorder examination or evaluation.  For the purpose of this section, every licensee and applicant is deemed to have consented to submit to a mental, physical, or substance use disorder examination or evaluation when directed in writing by the board and to have waived all objections to the admissibility of the examining professionals' testimony or examination reports on the grounds that the testimony or examination reports constitute a privileged communication.  Failure of a licensee or applicant to submit to an examination when directed by the board constitutes an admission of the allegations against the person, unless the failure was due to circumstances beyond the person's control, in which case a default and final order may be entered without the taking of testimony or presentation of evidence.  A licensee or applicant affected under this paragraph shall at reasonable intervals be given an opportunity to demonstrate that the person can resume the competent practice of licensed professional counseling with reasonable skill and safety to the public.  In any proceeding under this paragraph, neither the record of proceedings nor the orders entered by the board shall be used against a licensee or applicant in any other proceeding.

 

(b) In addition to ordering a physical or mental examination, the board may, notwithstanding section 13.384, 144.651, or any other law limiting access to medical or other health data, obtain medical data and health records relating to a licensee or applicant without the licensee's or applicant's consent if the board has probable cause to believe that section 148B.59, paragraph (a), clause (9), applies to the licensee or applicant.  The medical data may be requested from a provider, as defined in section 144.291, subdivision 2, paragraph (i); an insurance company; or a government agency, including the Department of Human Services and Direct Care and Treatment.  A provider, insurance company, or government agency shall comply with any written request of the board under this subdivision and is not liable in any action for damages for releasing the data requested by the board if the data are released pursuant to a written request under this subdivision, unless the information is false and the provider giving the information knew, or had reason to believe, the information was false.  Information obtained under this subdivision is classified as private under sections 13.01 to 13.87.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 21.  Minnesota Statutes 2024, section 148F.09, subdivision 6, is amended to read:

 

Subd. 6.  Mental, physical, or chemical health evaluation.  (a) If the board has probable cause to believe that an applicant or licensee is unable to practice alcohol and drug counseling with reasonable skill and safety due to a mental or physical illness or condition, the board may direct the individual to submit to a mental, physical, or chemical dependency examination or evaluation.

 

(1) For the purposes of this section, every licensee and applicant is deemed to have consented to submit to a mental, physical, or chemical dependency examination or evaluation when directed in writing by the board and to have waived all objections to the admissibility of the examining professionals' testimony or examination reports on the grounds that the testimony or examination reports constitute a privileged communication.

 

(2) Failure of a licensee or applicant to submit to an examination when directed by the board constitutes an admission of the allegations against the person, unless the failure was due to circumstances beyond the person's control, in which case a default and final order may be entered without the taking of testimony or presentation of evidence.


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(3) A licensee or applicant affected under this subdivision shall at reasonable intervals be given an opportunity to demonstrate that the licensee or applicant can resume the competent practice of licensed alcohol and drug counseling with reasonable skill and safety to the public.

 

(4) In any proceeding under this subdivision, neither the record of proceedings nor the orders entered by the board shall be used against the licensee or applicant in any other proceeding.

 

(b) In addition to ordering a physical or mental examination, the board may, notwithstanding section 13.384 or sections 144.291 to 144.298, or any other law limiting access to medical or other health data, obtain medical data and health records relating to a licensee or applicant without the licensee's or applicant's consent if the board has probable cause to believe that subdivision 1, clause (9), applies to the licensee or applicant.  The medical data may be requested from:

 

(1) a provider, as defined in section 144.291, subdivision 2, paragraph (i);

 

(2) an insurance company; or

 

(3) a government agency, including the Department of Human Services and Direct Care and Treatment.

 

(c) A provider, insurance company, or government agency must comply with any written request of the board under this subdivision and is not liable in any action for damages for releasing the data requested by the board if the data are released pursuant to a written request under this subdivision, unless the information is false and the provider giving the information knew, or had reason to believe, the information was false.

 

(d) Information obtained under this subdivision is private data on individuals as defined in section 13.02, subdivision 12.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 22.  Minnesota Statutes 2024, section 150A.08, subdivision 6, is amended to read:

 

Subd. 6.  Medical records.  Notwithstanding contrary provisions of sections 13.384 and 144.651 or any other statute limiting access to medical or other health data, the board may obtain medical data and health records of a licensee or applicant without the licensee's or applicant's consent if the information is requested by the board as part of the process specified in subdivision 5.  The medical data may be requested from a provider, as defined in section 144.291, subdivision 2, paragraph (h), an insurance company, or a government agency, including the Department of Human Services and Direct Care and Treatment.  A provider, insurance company, or government agency shall comply with any written request of the board under this subdivision and shall not be liable in any action for damages for releasing the data requested by the board if the data are released pursuant to a written request under this subdivision, unless the information is false and the provider giving the information knew, or had reason to believe, the information was false.  Information obtained under this subdivision shall be classified as private under the Minnesota Government Data Practices Act.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 23.  Minnesota Statutes 2024, section 151.071, subdivision 10, is amended to read:

 

Subd. 10.  Mental examination; access to medical data.  (a) If the board receives a complaint and has probable cause to believe that an individual licensed or registered by the board falls under subdivision 2, clause (14), it may direct the individual to submit to a mental or physical examination.  For the purpose of this subdivision, every licensed or registered individual is deemed to have consented to submit to a mental or physical examination when


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directed in writing by the board and further to have waived all objections to the admissibility of the examining practitioner's testimony or examination reports on the grounds that the same constitute a privileged communication.  Failure of a licensed or registered individual to submit to an examination when directed constitutes an admission of the allegations against the individual, unless the failure was due to circumstances beyond the individual's control, in which case a default and final order may be entered without the taking of testimony or presentation of evidence.  Pharmacists affected under this paragraph shall at reasonable intervals be given an opportunity to demonstrate that they can resume the competent practice of the profession of pharmacy with reasonable skill and safety to the public.  Pharmacist interns, pharmacy technicians, or controlled substance researchers affected under this paragraph shall at reasonable intervals be given an opportunity to demonstrate that they can competently resume the duties that can be performed, under this chapter or the rules of the board, by similarly registered persons with reasonable skill and safety to the public.  In any proceeding under this paragraph, neither the record of proceedings nor the orders entered by the board shall be used against a licensed or registered individual in any other proceeding.

 

(b) Notwithstanding section 13.384, 144.651, or any other law limiting access to medical or other health data, the board may obtain medical data and health records relating to an individual licensed or registered by the board, or to an applicant for licensure or registration, without the individual's consent when the board receives a complaint and has probable cause to believe that the individual is practicing in violation of subdivision 2, clause (14), and the data and health records are limited to the complaint.  The medical data may be requested from a provider, as defined in section 144.291, subdivision 2, paragraph (i), an insurance company, or a government agency, including the Department of Human Services and Direct Care and Treatment.  A provider, insurance company, or government agency shall comply with any written request of the board under this subdivision and is not liable in any action for damages for releasing the data requested by the board if the data are released pursuant to a written request under this subdivision, unless the information is false and the provider giving the information knew, or had reason to believe, the information was false.  Information obtained under this subdivision is classified as private under sections 13.01 to 13.87.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 24.  Minnesota Statutes 2024, section 153.21, subdivision 2, is amended to read:

 

Subd. 2.  Access to medical data.  In addition to ordering a physical or mental examination or substance use disorder evaluation, the board may, notwithstanding section 13.384, 144.651, or any other law limiting access to medical or other health data, obtain medical data and health records relating to a licensee or applicant without the licensee's or applicant's consent if the board has probable cause to believe that a doctor of podiatric medicine falls within the provisions of section 153.19, subdivision 1, clause (12).  The medical data may be requested from a provider, as defined in section 144.291, subdivision 2, paragraph (h), an insurance company, or a government agency, including the Department of Human Services and Direct Care and Treatment.  A provider, insurance company, or government agency shall comply with any written request of the board under this section and is not liable in any action for damages for releasing the data requested by the board if the data are released in accordance with a written request under this section, unless the information is false and the provider giving the information knew, or had reason to believe, the information was false.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 25.  Minnesota Statutes 2024, section 153B.70, is amended to read:

 

153B.70 GROUNDS FOR DISCIPLINARY ACTION.

 

(a) The board may refuse to issue or renew a license, revoke or suspend a license, or place on probation or reprimand a licensee for one or any combination of the following:

 

(1) making a material misstatement in furnishing information to the board;


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(2) violating or intentionally disregarding the requirements of this chapter;

 

(3) conviction of a crime, including a finding or verdict of guilt, an admission of guilt, or a no-contest plea, in this state or elsewhere, reasonably related to the practice of the profession.  Conviction, as used in this clause, includes a conviction of an offense which, if committed in this state, would be deemed a felony, gross misdemeanor, or misdemeanor, without regard to its designation elsewhere, or a criminal proceeding where a finding or verdict of guilty is made or returned but the adjudication of guilt is either withheld or not entered;

 

(4) making a misrepresentation in order to obtain or renew a license;

 

(5) displaying a pattern of practice or other behavior that demonstrates incapacity or incompetence to practice;

 

(6) aiding or assisting another person in violating the provisions of this chapter;

 

(7) failing to provide information within 60 days in response to a written request from the board, including documentation of completion of continuing education requirements;

 

(8) engaging in dishonorable, unethical, or unprofessional conduct;

 

(9) engaging in conduct of a character likely to deceive, defraud, or harm the public;

 

(10) inability to practice due to habitual intoxication, addiction to drugs, or mental or physical illness;

 

(11) being disciplined by another state or territory of the United States, the federal government, a national certification organization, or foreign nation, if at least one of the grounds for the discipline is the same or substantially equivalent to one of the grounds in this section;

 

(12) directly or indirectly giving to or receiving from a person, firm, corporation, partnership, or association a fee, commission, rebate, or other form of compensation for professional services not actually or personally rendered;

 

(13) incurring a finding by the board that the licensee, after the licensee has been placed on probationary status, has violated the conditions of the probation;

 

(14) abandoning a patient or client;

 

(15) willfully making or filing false records or reports in the course of the licensee's practice including, but not limited to, false records or reports filed with state or federal agencies;

 

(16) willfully failing to report child maltreatment as required under the Maltreatment of Minors Act, chapter 260E; or

 

(17) soliciting professional services using false or misleading advertising.

 

(b) A license to practice is automatically suspended if (1) a guardian of a licensee is appointed by order of a court pursuant to sections 524.5-101 to 524.5-502, for reasons other than the minority of the licensee, or (2) the licensee is committed by order of a court pursuant to chapter 253B.  The license remains suspended until the licensee is restored to capacity by a court and, upon petition by the licensee, the suspension is terminated by the board after a hearing.  The licensee may be reinstated to practice, either with or without restrictions, by demonstrating clear and convincing evidence of rehabilitation.  The regulated person is not required to prove rehabilitation if the subsequent court decision overturns previous court findings of public risk.


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(c) If the board has probable cause to believe that a licensee or applicant has violated paragraph (a), clause (10), it may direct the person to submit to a mental or physical examination.  For the purpose of this section, every person is deemed to have consented to submit to a mental or physical examination when directed in writing by the board and to have waived all objections to the admissibility of the examining physician's testimony or examination report on the grounds that the testimony or report constitutes a privileged communication.  Failure of a regulated person to submit to an examination when directed constitutes an admission of the allegations against the person, unless the failure was due to circumstances beyond the person's control, in which case a default and final order may be entered without the taking of testimony or presentation of evidence.  A regulated person affected under this paragraph shall at reasonable intervals be given an opportunity to demonstrate that the person can resume the competent practice of the regulated profession with reasonable skill and safety to the public.  In any proceeding under this paragraph, neither the record of proceedings nor the orders entered by the board shall be used against a regulated person in any other proceeding.

 

(d) In addition to ordering a physical or mental examination, the board may, notwithstanding section 13.384 or 144.293, or any other law limiting access to medical or other health data, obtain medical data and health records relating to a licensee or applicant without the person's or applicant's consent if the board has probable cause to believe that a licensee is subject to paragraph (a), clause (10).  The medical data may be requested from a provider as defined in section 144.291, subdivision 2, paragraph (i), an insurance company, or a government agency, including the Department of Human Services and Direct Care and Treatment.  A provider, insurance company, or government agency shall comply with any written request of the board under this section and is not liable in any action for damages for releasing the data requested by the board if the data are released pursuant to a written request under this section, unless the information is false and the provider giving the information knew, or had reason to know, the information was false.  Information obtained under this section is private data on individuals as defined in section 13.02.

 

(e) If the board issues an order of immediate suspension of a license, a hearing must be held within 30 days of the suspension and completed without delay.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 26.  Minnesota Statutes 2024, section 168.012, subdivision 1, is amended to read:

 

Subdivision 1.  Vehicles exempt from tax, fees, or plate display.  (a) The following vehicles are exempt from the provisions of this chapter requiring payment of tax and registration fees, except as provided in subdivision 1c:

 

(1) vehicles owned and used solely in the transaction of official business by the federal government, the state, or any political subdivision;

 

(2) vehicles owned and used exclusively by educational institutions and used solely in the transportation of pupils to and from those institutions;

 

(3) vehicles used solely in driver education programs at nonpublic high schools;

 

(4) vehicles owned by nonprofit charities and used exclusively to transport disabled persons for charitable, religious, or educational purposes;

 

(5) vehicles owned by nonprofit charities and used exclusively for disaster response and related activities;

 

(6) vehicles owned by ambulance services licensed under section 144E.10 that are equipped and specifically intended for emergency response or providing ambulance services; and


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(7) vehicles owned by a commercial driving school licensed under section 171.34, or an employee of a commercial driving school licensed under section 171.34, and the vehicle is used exclusively for driver education and training.

 

(b) Provided the general appearance of the vehicle is unmistakable, the following vehicles are not required to register or display number plates:

 

(1) vehicles owned by the federal government;

 

(2) fire apparatuses, including fire-suppression support vehicles, owned or leased by the state or a political subdivision;

 

(3) police patrols owned or leased by the state or a political subdivision; and

 

(4) ambulances owned or leased by the state or a political subdivision.

 

(c) Unmarked vehicles used in general police work, liquor investigations, or arson investigations, and passenger automobiles, pickup trucks, and buses owned or operated by the Department of Corrections or by conservation officers of the Division of Enforcement and Field Service of the Department of Natural Resources, must be registered and must display appropriate license number plates, furnished by the registrar at cost.  Original and renewal applications for these license plates authorized for use in general police work and for use by the Department of Corrections or by conservation officers must be accompanied by a certification signed by the appropriate chief of police if issued to a police vehicle, the appropriate sheriff if issued to a sheriff's vehicle, the commissioner of corrections if issued to a Department of Corrections vehicle, or the appropriate officer in charge if issued to a vehicle of any other law enforcement agency.  The certification must be on a form prescribed by the commissioner and state that the vehicle will be used exclusively for a purpose authorized by this section.

 

(d) Unmarked vehicles used by the Departments of Revenue and Labor and Industry, fraud unit, in conducting seizures or criminal investigations must be registered and must display passenger vehicle classification license number plates, furnished at cost by the registrar.  Original and renewal applications for these passenger vehicle license plates must be accompanied by a certification signed by the commissioner of revenue or the commissioner of labor and industry.  The certification must be on a form prescribed by the commissioner and state that the vehicles will be used exclusively for the purposes authorized by this section.

 

(e) Unmarked vehicles used by the Division of Disease Prevention and Control of the Department of Health must be registered and must display passenger vehicle classification license number plates.  These plates must be furnished at cost by the registrar.  Original and renewal applications for these passenger vehicle license plates must be accompanied by a certification signed by the commissioner of health.  The certification must be on a form prescribed by the commissioner and state that the vehicles will be used exclusively for the official duties of the Division of Disease Prevention and Control.

 

(f) Unmarked vehicles used by staff of the Gambling Control Board in gambling investigations and reviews must be registered and must display passenger vehicle classification license number plates.  These plates must be furnished at cost by the registrar.  Original and renewal applications for these passenger vehicle license plates must be accompanied by a certification signed by the board chair.  The certification must be on a form prescribed by the commissioner and state that the vehicles will be used exclusively for the official duties of the Gambling Control Board.

 

(g) Unmarked vehicles used in general investigation, surveillance, supervision, and monitoring by the Department of Human Services' Office of Special Investigations' staff; the Minnesota Sex Offender Program's executive director and the executive director's staff; and the Office of Inspector General's staff, including, but not


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limited to, county fraud prevention investigators, must be registered and must display passenger vehicle classification license number plates, furnished by the registrar at cost.  Original and renewal applications for passenger vehicle license plates must be accompanied by a certification signed by the commissioner of human services.  The certification must be on a form prescribed by the commissioner and state that the vehicles must be used exclusively for the official duties of the Office of Special Investigations' staff; the Minnesota Sex Offender Program's executive director and the executive director's staff; and the Office of the Inspector General's staff, including, but not limited to, contract and county fraud prevention investigators.

 

(h) Unmarked vehicles used in general investigation, surveillance, supervision, and monitoring by the Direct Care and Treatment Office of Special Investigations' staff and unmarked vehicles used by the Minnesota Sex Offender Program's executive director and the executive director's staff must be registered and must display passenger vehicle classification license number plates, furnished by the registrar at cost.  Original and renewal applications for passenger vehicle license plates must be accompanied by a certification signed by the Direct Care and Treatment executive board.  The certification must be on a form prescribed by the commissioner and state that the vehicles must be used exclusively for the official duties of the Minnesota Sex Offender Program's executive director and the executive director's staff, including but not limited to contract and county fraud prevention investigators.

 

(h) (i) Each state hospital and institution for persons who are mentally ill and developmentally disabled may have one vehicle without the required identification on the sides of the vehicle.  The vehicle must be registered and must display passenger vehicle classification license number plates.  These plates must be furnished at cost by the registrar.  Original and renewal applications for these passenger vehicle license plates must be accompanied by a certification signed by the hospital administrator.  The certification must be on a form prescribed by the commissioner Direct Care and Treatment executive board and state that the vehicles will be used exclusively for the official duties of the state hospital or institution.

 

(i) (j) Each county social service agency may have vehicles used for child and vulnerable adult protective services without the required identification on the sides of the vehicle.  The vehicles must be registered and must display passenger vehicle classification license number plates.  These plates must be furnished at cost by the registrar.  Original and renewal applications for these passenger vehicle license plates must be accompanied by a certification signed by the agency administrator.  The certification must be on a form prescribed by the commissioner and state that the vehicles will be used exclusively for the official duties of the social service agency.

 

(j) (k) Unmarked vehicles used in general investigation, surveillance, supervision, and monitoring by tobacco inspector staff of the Department of Human Services' Alcohol and Drug Abuse Division for the purposes of tobacco inspections, investigations, and reviews must be registered and must display passenger vehicle classification license number plates, furnished at cost by the registrar.  Original and renewal applications for passenger vehicle license plates must be accompanied by a certification signed by the commissioner of human services.  The certification must be on a form prescribed by the commissioner and state that the vehicles will be used exclusively by tobacco inspector staff for the duties specified in this paragraph.

 

(k) (l) All other motor vehicles must be registered and display tax-exempt number plates, furnished by the registrar at cost, except as provided in subdivision 1c.  All vehicles required to display tax-exempt number plates must have the name of the state department or political subdivision, nonpublic high school operating a driver education program, licensed commercial driving school, or other qualifying organization or entity, plainly displayed on both sides of the vehicle.  This identification must be in a color giving contrast with that of the part of the vehicle on which it is placed and must endure throughout the term of the registration.  The identification must not be on a removable plate or placard and must be kept clean and visible at all times; except that a removable plate or placard may be utilized on vehicles leased or loaned to a political subdivision or to a nonpublic high school driver education program.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.


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Sec. 27.  Minnesota Statutes 2024, section 244.052, subdivision 4, is amended to read:

 

Subd. 4.  Law enforcement agency; disclosure of information to public.  (a) The law enforcement agency in the area where the predatory offender resides, expects to reside, is employed, or is regularly found, shall disclose to the public any information regarding the offender contained in the report forwarded to the agency under subdivision 3, paragraph (f), that is relevant and necessary to protect the public and to counteract the offender's dangerousness, consistent with the guidelines in paragraph (b).  The extent of the information disclosed and the community to whom disclosure is made must relate to the level of danger posed by the offender, to the offender's pattern of offending behavior, and to the need of community members for information to enhance their individual and collective safety.

 

(b) The law enforcement agency shall employ the following guidelines in determining the scope of disclosure made under this subdivision:

 

(1) if the offender is assigned to risk level I, the agency may maintain information regarding the offender within the agency and may disclose it to other law enforcement agencies.  Additionally, the agency may disclose the information to any victims of or witnesses to the offense committed by the offender.  The agency shall disclose the information to victims of the offense committed by the offender who have requested disclosure and to adult members of the offender's immediate household;

 

(2) if the offender is assigned to risk level II, the agency also may disclose the information to agencies and groups that the offender is likely to encounter for the purpose of securing those institutions and protecting individuals in their care while they are on or near the premises of the institution.  These agencies and groups include the staff members of public and private educational institutions, day care establishments, and establishments and organizations that primarily serve individuals likely to be victimized by the offender.  The agency also may disclose the information to individuals the agency believes are likely to be victimized by the offender.  The agency's belief shall be based on the offender's pattern of offending or victim preference as documented in the information provided by the Department of Corrections or, the Department of Human Services, or Direct Care and Treatment.  The agency may disclose the information to property assessors, property inspectors, code enforcement officials, and child protection officials who are likely to visit the offender's home in the course of their duties;

 

(3) if the offender is assigned to risk level III, the agency shall disclose the information to the persons and entities described in clauses (1) and (2) and to other members of the community whom the offender is likely to encounter, unless the law enforcement agency determines that public safety would be compromised by the disclosure or that a more limited disclosure is necessary to protect the identity of the victim.

 

Notwithstanding the assignment of a predatory offender to risk level II or III, a law enforcement agency may not make the disclosures permitted or required by clause (2) or (3), if:  the offender is placed or resides in a residential facility.  However, if an offender is placed or resides in a residential facility, the offender and the head of the facility shall designate the offender's likely residence upon release from the facility and the head of the facility shall notify the commissioner of corrections or, the commissioner of human services, or the Direct Care and Treatment executive board of the offender's likely residence at least 14 days before the offender's scheduled release date.  The commissioner shall give this information to the law enforcement agency having jurisdiction over the offender's likely residence.  The head of the residential facility also shall notify the commissioner of corrections or, the commissioner of human services, or the Direct Care and Treatment executive board within 48 hours after finalizing the offender's approved relocation plan to a permanent residence.  Within five days after receiving this notification, the appropriate commissioner shall give to the appropriate law enforcement agency all relevant information the commissioner has concerning the offender, including information on the risk factors in the offender's history and the risk level to which the offender was assigned.  After receiving this information, the law enforcement agency shall make the disclosures permitted or required by clause (2) or (3), as appropriate.


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(c) As used in paragraph (b), clauses (2) and (3), "likely to encounter" means that:

 

(1) the organizations or community members are in a location or in close proximity to a location where the offender lives or is employed, or which the offender visits or is likely to visit on a regular basis, other than the location of the offender's outpatient treatment program; and

 

(2) the types of interaction which ordinarily occur at that location and other circumstances indicate that contact with the offender is reasonably certain.

 

(d) A law enforcement agency or official who discloses information under this subdivision shall make a good faith effort to make the notification within 14 days of receipt of a confirmed address from the Department of Corrections indicating that the offender will be, or has been, released from confinement, or accepted for supervision, or has moved to a new address and will reside at the address indicated.  If a change occurs in the release plan, this notification provision does not require an extension of the release date.

 

(e) A law enforcement agency or official who discloses information under this subdivision shall not disclose the identity or any identifying characteristics of the victims of or witnesses to the offender's offenses.

 

(f) A law enforcement agency shall continue to disclose information on an offender as required by this subdivision for as long as the offender is required to register under section 243.166.  This requirement on a law enforcement agency to continue to disclose information also applies to an offender who lacks a primary address and is registering under section 243.166, subdivision 3a.

 

(g) A law enforcement agency that is disclosing information on an offender assigned to risk level III to the public under this subdivision shall inform the commissioner of corrections what information is being disclosed and forward this information to the commissioner within two days of the agency's determination.  The commissioner shall post this information on the Internet as required in subdivision 4b.

 

(h) A city council may adopt a policy that addresses when information disclosed under this subdivision must be presented in languages in addition to English.  The policy may address when information must be presented orally, in writing, or both in additional languages by the law enforcement agency disclosing the information.  The policy may provide for different approaches based on the prevalence of non-English languages in different neighborhoods.

 

(i) An offender who is the subject of a community notification meeting held pursuant to this section may not attend the meeting.

 

(j) When a school, day care facility, or other entity or program that primarily educates or serves children receives notice under paragraph (b), clause (3), that a level III predatory offender resides or works in the surrounding community, notice to parents must be made as provided in this paragraph.  If the predatory offender identified in the notice is participating in programs offered by the facility that require or allow the person to interact with children other than the person's children, the principal or head of the entity must notify parents with children at the facility of the contents of the notice received pursuant to this section.  The immunity provisions of subdivision 7 apply to persons disclosing information under this paragraph.

 

(k) When an offender for whom notification was made under this subdivision no longer resides, is employed, or is regularly found in the area, and the law enforcement agency that made the notification is aware of this, the agency shall inform the entities and individuals initially notified of the change in the offender's status.  If notification was made under paragraph (b), clause (3), the agency shall provide the updated information required under this paragraph in a manner designed to ensure a similar scope of dissemination.  However, the agency is not required to hold a public meeting to do so.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.


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Sec. 28.  Minnesota Statutes 2024, section 245.50, subdivision 2, is amended to read:

 

Subd. 2.  Purpose and authority.  (a) The purpose of this section is to enable appropriate treatment or detoxification services to be provided to individuals, across state lines from the individual's state of residence, in qualified facilities that are closer to the homes of individuals than are facilities available in the individual's home state.

 

(b) Unless prohibited by another law and subject to the exceptions listed in subdivision 3, a county board or, the commissioner of human services, or the Direct Care and Treatment executive board may contract with an agency or facility in a bordering state for mental health, chemical health, or detoxification services for residents of Minnesota, and a Minnesota mental health, chemical health, or detoxification agency or facility may contract to provide services to residents of bordering states.  Except as provided in subdivision 5, a person who receives services in another state under this section is subject to the laws of the state in which services are provided.  A person who will receive services in another state under this section must be informed of the consequences of receiving services in another state, including the implications of the differences in state laws, to the extent the individual will be subject to the laws of the receiving state.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 29.  Minnesota Statutes 2024, section 245.52, is amended to read:

 

245.52 COMMISSIONER OF HUMAN SERVICES CHIEF EXECUTIVE OFFICER OF DIRECT CARE AND TREATMENT AS COMPACT ADMINISTRATOR.

 

The commissioner of human services chief executive officer of Direct Care and Treatment is hereby designated as "compact administrator."  The commissioner chief executive officer shall have the powers and duties specified in the compact, and may, in the name of the state of Minnesota, subject to the approval of the attorney general as to form and legality, enter into such agreements authorized by the compact as the commissioner chief executive officer deems appropriate to effecting the purpose of the compact.  The commissioner chief executive officer shall, within the limits of the appropriations for the care of persons with mental illness or developmental disabilities, authorize such payments as are necessary to discharge any financial obligations imposed upon this state by the compact or any agreement entered into under the compact.

 

If the patient has no established residence in a Minnesota county, the commissioner of human services shall designate the county of financial responsibility for the purposes of carrying out the provisions of the Interstate Compact on Mental Health as it pertains to patients being transferred to Minnesota.  The commissioner of human services shall designate the county which is the residence of the person in Minnesota who initiates the earliest written request for the patient's transfer.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 30.  Minnesota Statutes 2024, section 245.91, subdivision 2, is amended to read:

 

Subd. 2.  Agency.  "Agency" means the divisions, officials, or employees of the state Departments of Human Services, Direct Care and Treatment, Health, and Education,; of Direct Care and Treatment; and of local school districts and designated county social service agencies as defined in section 256G.02, subdivision 7, that are engaged in monitoring, providing, or regulating services or treatment for mental illness, developmental disability, substance use disorder, or emotional disturbance.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.


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Sec. 31.  Minnesota Statutes 2024, section 246.585, is amended to read:

 

246.585 CRISIS SERVICES.

 

Within the limits of appropriations, state-operated regional technical assistance must be available in each region to assist counties, Tribal Nations, residential and day programming staff vocational service providers, and families, and persons with disabilities to prevent or resolve crises that could lead to a change in placement person moving to a less integrated setting.  Crisis capacity must be provided on all regional treatment center campuses serving persons with developmental disabilities.  In addition, crisis capacity may be developed to serve 16 persons in the Twin Cities metropolitan area.  Technical assistance and consultation must also be available in each region to providers and counties.  Staff must be available to provide:

 

(1) individual assessments;

 

(2) program plan development and implementation assistance;

 

(3) analysis of service delivery problems; and

 

(4) assistance with transition planning, including technical assistance to counties, Tribal Nations, and service providers to develop new services, site the new services, and assist with community acceptance.

 

Sec. 32.  Minnesota Statutes 2024, section 246C.06, subdivision 11, is amended to read:

 

Subd. 11.  Rulemaking.  (a) The executive board is authorized to adopt, amend, and repeal rules in accordance with chapter 14 to the extent necessary to implement this chapter or any responsibilities of Direct Care and Treatment specified in state law.  The 18-month time limit under section 14.125 does not apply to the rulemaking authority under this subdivision.

 

(b) Until July 1, 2027, the executive board may adopt rules using the expedited rulemaking process in section 14.389.

 

(c) In accordance with section 15.039, all orders, rules, delegations, permits, and other privileges issued or granted by the Department of Human Services with respect to any function of Direct Care and Treatment and in effect at the time of the establishment of Direct Care and Treatment shall continue in effect as if such establishment had not occurred.  The executive board may amend or repeal rules applicable to Direct Care and Treatment that were established by the Department of Human Services in accordance with chapter 14.

 

(d) The executive board must not adopt rules that go into effect or enforce rules prior to July 1, 2025.

 

EFFECTIVE DATE.  This section is effective retroactively from July 1, 2024.

 

Sec. 33.  Minnesota Statutes 2024, section 246C.12, subdivision 6, is amended to read:

 

Subd. 6.  Dissemination of Admission and stay criteria; dissemination.  (a) The executive board shall establish standard admission and continued-stay criteria for state-operated services facilities to ensure that appropriate services are provided in the least restrictive setting.

 

(b) The executive board shall periodically disseminate criteria for admission and continued stay in a state‑operated services facility.  The executive board shall disseminate the criteria to the courts of the state and counties.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.


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Sec. 34.  Minnesota Statutes 2024, section 246C.20, is amended to read:

 

246C.20 CONTRACT WITH DEPARTMENT OF HUMAN SERVICES FOR ADMINISTRATIVE SERVICES.

 

(a) Direct Care and Treatment shall contract with the Department of Human Services to provide determinations on issues of county of financial responsibility under chapter 256G and to provide administrative and judicial review of direct care and treatment matters according to section 256.045.

 

(b) The executive board may prescribe rules necessary to carry out this subdivision section, except that the executive board must not create any rule purporting to control the decision making or processes of state human services judges under section 256.045, subdivision 4, or the decision making or processes of the commissioner of human services issuing an advisory opinion or recommended order to the executive board under section 256G.09, subdivision 3.  The executive board must not create any rule purporting to control processes for determinations of financial responsibility under chapter 256G or administrative and judicial review under section 256.045 on matters outside of the jurisdiction of Direct Care and Treatment.

 

(c) The executive board and commissioner of human services may adopt joint rules necessary to accomplish the purposes of this section.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 35.  [246C.21] INTERVIEW EXPENSES.

 

Job applicants for professional, administrative, or highly technical positions recruited by the Direct Care and Treatment executive board may be reimbursed for necessary travel expenses to and from interviews arranged by the Direct Care and Treatment executive board.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 36.  [246C.211] FEDERAL GRANTS FOR MINNESOTA INDIANS.

 

The Direct Care and Treatment executive board is authorized to enter into contracts with the United States Departments of Health and Human Services; Education; and Interior, Bureau of Indian Affairs, for the purposes of receiving federal grants for the welfare and relief of Minnesota Indians.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 37.  Minnesota Statutes 2024, section 252.291, subdivision 3, is amended to read:

 

Subd. 3.  Duties of commissioner of human services.  The commissioner shall:

 

(1) establish standard admission criteria for state hospitals and county utilization targets to limit and reduce the number of intermediate care beds in state hospitals and community facilities in accordance with approved waivers under United States Code, title 42, sections 1396 to 1396p, as amended through December 31, 1987, to assure ensure that appropriate services are provided in the least restrictive setting;

 

(2) define services, including respite care, that may be needed in meeting individual service plan objectives;

 

(3) provide technical assistance so that county boards may establish a request for proposal system for meeting individual service plan objectives through home and community-based services; alternative community services; or, if no other alternative will meet the needs of identifiable individuals for whom the county is financially responsible, a new intermediate care facility for persons with developmental disabilities;


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(4) establish a client tracking and evaluation system as required under applicable federal waiver regulations, Code of Federal Regulations, title 42, sections 431, 435, 440, and 441, as amended through December 31, 1987; and

 

(5) develop a state plan for the delivery and funding of residential day and support services to persons with developmental disabilities in Minnesota.  The biennial developmental disability plan shall include but not be limited to:

 

(i) county by county maximum intermediate care bed utilization quotas;

 

(ii) plans for the development of the number and types of services alternative to intermediate care beds;

 

(iii) procedures for the administration and management of the plan;

 

(iv) procedures for the evaluation of the implementation of the plan; and

 

(v) the number, type, and location of intermediate care beds targeted for decertification.

 

The commissioner shall modify the plan to ensure conformance with the medical assistance home and community-based services waiver.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 38.  Minnesota Statutes 2024, section 252.50, subdivision 5, is amended to read:

 

Subd. 5.  Location of programs.  (a) In determining the location of state-operated, community-based programs, the needs of the individual client shall be paramount.  The executive board shall also take into account:

 

(1) prioritization of beds services in state-operated, community-based programs for individuals with complex behavioral needs that cannot be met by private community-based providers;

 

(2) choices made by individuals who chose to move to a more integrated setting, and shall coordinate with the lead agency to ensure that appropriate person-centered transition plans are created;

 

(3) the personal preferences of the persons being served and their families as determined by Minnesota Rules, parts 9525.0004 to 9525.0036;

 

(4) the location of the support services established by the individual service plans of the persons being served;

 

(5) the appropriate grouping of the persons served;

 

(6) the availability of qualified staff;

 

(7) the need for state-operated, community-based programs in the geographical region of the state; and

 

(8) a reasonable commuting distance from a regional treatment center or the residences of the program staff.

 

(b) The executive board must locate state-operated, community-based programs in coordination with the commissioner of human services according to section 252.28.


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Sec. 39.  Minnesota Statutes 2024, section 253B.07, subdivision 2b, is amended to read:

 

Subd. 2b.  Apprehend and hold orders.  (a) The court may order the treatment facility or state-operated treatment program to hold the proposed patient or direct a health officer, peace officer, or other person to take the proposed patient into custody and transport the proposed patient to a treatment facility or state-operated treatment program for observation, evaluation, diagnosis, care, treatment, and, if necessary, confinement, when:

 

(1) there has been a particularized showing by the petitioner that serious physical harm to the proposed patient or others is likely unless the proposed patient is immediately apprehended;

 

(2) the proposed patient has not voluntarily appeared for the examination or the commitment hearing pursuant to the summons; or

 

(3) a person is held pursuant to section 253B.051 and a request for a petition for commitment has been filed.

 

(b) The order of the court may be executed on any day and at any time by the use of all necessary means including the imposition of necessary restraint upon the proposed patient.  Where possible, a peace officer taking the proposed patient into custody pursuant to this subdivision shall not be in uniform and shall not use a vehicle visibly marked as a law enforcement vehicle.  Except as provided in section 253D.10, subdivision 2, in the case of an individual on a judicial hold due to a petition for civil commitment under chapter 253D, assignment of custody during the hold is to the commissioner executive board.  The commissioner executive board is responsible for determining the appropriate placement within a secure treatment facility under the authority of the commissioner executive board.

 

(c) A proposed patient must not be allowed or required to consent to nor participate in a clinical drug trial while an order is in effect under this subdivision.  A consent given while an order is in effect is void and unenforceable.  This paragraph does not prohibit a patient from continuing participation in a clinical drug trial if the patient was participating in the clinical drug trial at the time the order was issued under this subdivision.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 40.  Minnesota Statutes 2024, section 253B.09, subdivision 3a, is amended to read:

 

Subd. 3a.  Reporting judicial commitments; private treatment program or facility.  Notwithstanding section 253B.23, subdivision 9, when a court commits a patient to a non-state-operated treatment facility or program, the court shall report the commitment to the commissioner executive board through the supreme court information system for purposes of providing commitment information for firearm background checks under section 246C.15.  If the patient is committed to a state-operated treatment program, the court shall send a copy of the commitment order to the commissioner and the executive board.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 41.  Minnesota Statutes 2024, section 253B.10, subdivision 1, is amended to read:

 

Subdivision 1.  Administrative requirements.  (a) When a person is committed, the court shall issue a warrant or an order committing the patient to the custody of the head of the treatment facility, state-operated treatment program, or community-based treatment program.  The warrant or order shall state that the patient meets the statutory criteria for civil commitment.

 

(b) The executive board shall prioritize civilly committed patients being admitted from jail or a correctional institution or who are referred to a state-operated treatment facility for competency attainment or a competency examination under sections 611.40 to 611.59 for admission to a medically appropriate state-operated direct care and


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treatment bed based on the decisions of physicians in the executive medical director's office, using a priority admissions framework.  The framework must account for a range of factors for priority admission, including but not limited to:

 

(1) the length of time the person has been on a waiting list for admission to a state-operated direct care and treatment program since the date of the order under paragraph (a), or the date of an order issued under sections 611.40 to 611.59;

 

(2) the intensity of the treatment the person needs, based on medical acuity;

 

(3) the person's revoked provisional discharge status;

 

(4) the person's safety and safety of others in the person's current environment;

 

(5) whether the person has access to necessary or court-ordered treatment;

 

(6) distinct and articulable negative impacts of an admission delay on the facility referring the individual for treatment; and

 

(7) any relevant federal prioritization requirements.

 

Patients described in this paragraph must be admitted to a state-operated treatment program within 48 hours the timelines specified in section 253B.1005.  The commitment must be ordered by the court as provided in section 253B.09, subdivision 1, paragraph (d).  Patients committed to a secure treatment facility or less restrictive setting as ordered by the court under section 253B.18, subdivisions 1 and 2, must be prioritized for admission to a state‑operated treatment program using the priority admissions framework in this paragraph.

 

(c) Upon the arrival of a patient at the designated treatment facility, state-operated treatment program, or community-based treatment program, the head of the facility or program shall retain the duplicate of the warrant and endorse receipt upon the original warrant or acknowledge receipt of the order.  The endorsed receipt or acknowledgment must be filed in the court of commitment.  After arrival, the patient shall be under the control and custody of the head of the facility or program.

 

(d) Copies of the petition for commitment, the court's findings of fact and conclusions of law, the court order committing the patient, the report of the court examiners, and the prepetition report, and any medical and behavioral information available shall be provided at the time of admission of a patient to the designated treatment facility or program to which the patient is committed.  Upon a patient's referral to the executive board for admission pursuant to subdivision 1, paragraph (b), any inpatient hospital, treatment facility, jail, or correctional facility that has provided care or supervision to the patient in the previous two years shall, when requested by the treatment facility or executive board, provide copies of the patient's medical and behavioral records to the executive board for purposes of preadmission planning.  This information shall be provided by the head of the treatment facility to treatment facility staff in a consistent and timely manner and pursuant to all applicable laws.

 

(e) Patients described in paragraph (b) must be admitted to a state-operated treatment program within 48 hours of the Office of Executive Medical Director, under section 246C.09, or a designee determining that a medically appropriate bed is available.  This paragraph expires on June 30, 2025.

 

(f) Within four business days of determining which state-operated direct care and treatment program or programs are appropriate for an individual, the executive medical director's office or a designee must notify the source of the referral and the responsible county human services agency, the individual being ordered to direct care and treatment, and the district court that issued the order of the determination.  The notice shall include which program or programs


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are appropriate for the person's priority status.  Any interested person may provide additional information or request updated priority status about the individual to the executive medical director's office or a designee while the individual is awaiting admission.  Updated Priority status of an individual will only be disclosed to interested persons who are legally authorized to receive private information about the individual.  When an available bed has been identified, the executive medical director's office or a designee must notify the designated agency and the facility where the individual is awaiting admission that the individual has been accepted for admission to a particular state-operated direct care and treatment program and the earliest possible date the admission can occur.  The designated agency or facility where the individual is awaiting admission must transport the individual to the admitting state-operated direct care and treatment program no more than 48 hours after the offered admission date.

 

Sec. 42.  [253B.1005] ADMISSION TIMELINES.

 

Subdivision 1.  Admission required within 48 hours.  Unless required otherwise under this section, patients described in section 253B.10, subdivision 1, paragraph (b), must be admitted to a state-operated treatment program within 48 hours. 

 

Subd. 2.  Temporary alternative admission timeline.  Patients described in section 253B.10, subdivision 1, paragraph (b), must be admitted to a state-operated treatment program within 48 hours of the Office of Executive Medical Director, under section 246C.09, or a designee determining that a medically appropriate bed is available.  This subdivision expires on June 30, 2027.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 43.  Minnesota Statutes 2024, section 253B.141, subdivision 2, is amended to read:

 

Subd. 2.  Apprehension; return to facility or program.  (a) Upon receiving the report of absence from the head of the treatment facility, state-operated treatment program, or community-based treatment program or the committing court, a patient may be apprehended and held by a peace officer in any jurisdiction pending return to the facility or program from which the patient is absent without authorization.  A patient may also be returned to any state-operated treatment program or any other treatment facility or community-based treatment program willing to accept the person.  A person who has a mental illness and is dangerous to the public and detained under this subdivision may be held in a jail or lockup only if:

 

(1) there is no other feasible place of detention for the patient;

 

(2) the detention is for less than 24 hours; and

 

(3) there are protections in place, including segregation of the patient, to ensure the safety of the patient.

 

(b) If a patient is detained under this subdivision, the head of the facility or program from which the patient is absent shall arrange to pick up the patient within 24 hours of the time detention was begun and shall be responsible for securing transportation for the patient to the facility or program.  The expense of detaining and transporting a patient shall be the responsibility of the facility or program from which the patient is absent.  The expense of detaining and transporting a patient to a state-operated treatment program shall be paid by the commissioner executive board unless paid by the patient or persons on behalf of the patient.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.


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Sec. 44.  Minnesota Statutes 2024, section 253B.18, subdivision 6, is amended to read:

 

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.

 

(d) If the committed person is not returned to the original, nonsecure transfer facility within 60 days of being readmitted to a secure treatment facility, 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 commissioner 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.

 

(h) Upon the revocation of the transfer, the committed person must be immediately returned to a secure treatment facility.  A report documenting the reasons for revocation must be issued by the head of the treatment facility within seven days after the committed person is returned to the secure treatment facility.  Advance notice to the committed person of the revocation is not required.


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(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 commissioner 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, 2025.

 

Sec. 45.  Minnesota Statutes 2024, section 253B.19, subdivision 2, is amended to read:

 

Subd. 2.  Petition; hearing.  (a) A patient committed as a person who has a mental illness and is dangerous to the public under section 253B.18, or the county attorney of the county from which the patient was committed or the county of financial responsibility, may petition the judicial appeal panel for a rehearing and reconsideration of a decision by the commissioner executive board under section 253B.18, subdivision 5.  The judicial appeal panel must not consider petitions for relief other than those considered by the executive board from which the appeal is taken.  The petition must be filed with the supreme court within 30 days after the decision of the executive board is signed.  The hearing must be held within 45 days of the filing of the petition unless an extension is granted for good cause.

 

(b) For an appeal under paragraph (a), the supreme court shall refer the petition to the chief judge of the judicial appeal panel.  The chief judge shall notify the patient, the county attorney of the county of commitment, the designated agency, the executive board, the head of the facility or program to which the patient was committed, any interested person, and other persons the chief judge designates, of the time and place of the hearing on the petition.  The notice shall be given at least 14 days prior to the date of the hearing.

 

(c) Any person may oppose the petition.  The patient, the patient's counsel, the county attorney of the committing county or the county of financial responsibility, and the executive board shall participate as parties to the proceeding pending before the judicial appeal panel and shall, except when the patient is committed solely as a person who has a mental illness and is dangerous to the public, no later than 20 days before the hearing on the petition, inform the judicial appeal panel and the opposing party in writing whether they support or oppose the petition and provide a summary of facts in support of their position.  The judicial appeal panel may appoint court examiners and may adjourn the hearing from time to time.  It shall hear and receive all relevant testimony and evidence and make a record of all proceedings.  The patient, the patient's counsel, and the county attorney of the committing county or the county of financial responsibility have the right to be present and may present and cross-examine all witnesses and offer a factual and legal basis in support of their positions.  The petitioning party seeking discharge or provisional discharge bears the burden of going forward with the evidence, which means presenting a prima facie case with competent evidence to show that the person is entitled to the requested relief.  If the petitioning party has met this burden, the party opposing discharge or provisional discharge bears the burden of proof by clear and convincing evidence that the discharge or provisional discharge should be denied.  A party seeking transfer under section 253B.18, subdivision 6, must establish by a preponderance of the evidence that the transfer is appropriate.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.


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Sec. 46.  Minnesota Statutes 2024, section 253D.29, subdivision 1, is amended to read:

 

Subdivision 1.  Factors.  (a) A person who is committed as a sexually dangerous person or a person with a sexual psychopathic personality shall not be transferred out of a secure treatment facility unless the transfer is appropriate.  Transfer may be to other treatment programs a facility under the control of the executive board.

 

(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 other treatment program facility can best meet the person's needs; and

 

(5) whether transfer can be accomplished with a reasonable degree of safety for the public.

 

Sec. 47.  Minnesota Statutes 2024, section 253D.29, subdivision 2, is amended to read:

 

Subd. 2.  Voluntary readmission to a secure treatment facility.  (a) After a committed person has been transferred out of a secure treatment facility pursuant to subdivision 1 and with the consent of the executive director, a committed person may voluntarily return to a secure treatment facility for a period of up to 60 days.

 

(b) If the committed person is not returned to the other treatment program secure treatment facility to which the person was originally transferred pursuant to subdivision 1 within 60 days of being readmitted to a secure treatment facility under this subdivision, the transfer to the other treatment program secure treatment facility under subdivision 1 is revoked and the committed person shall remain in a secure treatment facility.  The committed person shall immediately be notified in writing of the revocation.

 

(c) 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 judicial appeal panel whether or not the revocation shall be upheld.  The special review board may also recommend a new transfer at the time of the revocation hearing.

 

(d) If the transfer has not been revoked and the committed person is to be returned to the other treatment program facility to which the committed person was originally transferred pursuant to subdivision 1 with no substantive change to the conditions of the transfer ordered pursuant to subdivision 1, no action by the special review board or judicial appeal panel is required.

 

Sec. 48.  Minnesota Statutes 2024, section 253D.29, subdivision 3, is amended to read:

 

Subd. 3.  Revocation.  (a) The executive director may revoke a transfer made pursuant to subdivision 1 and require a committed person to return to a secure treatment facility if:

 

(1) remaining in a nonsecure setting will not provide a reasonable degree of safety to the committed person or others; or

 

(2) the committed person has regressed in clinical progress so that the other treatment program facility to which the committed person was transferred is no longer sufficient to meet the committed person's needs.


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(b) Upon the revocation of the transfer, the committed person shall be immediately returned to a secure treatment facility.  A report documenting reasons for revocation shall be issued by the executive director within seven days after the committed person is returned to the secure treatment facility.  Advance notice to the committed person of the revocation is not required.

 

(c) 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 shall be served upon the committed person and the committed person's counsel.  The report shall outline the specific reasons for the revocation including, but not limited to, the specific facts upon which the revocation is based.

 

(d) If a committed person's transfer is revoked, the committed person may re-petition for transfer according to section 253D.27.

 

(e) Any committed person aggrieved by a transfer revocation decision may petition the special review board within seven days, exclusive of Saturdays, Sundays, and legal holidays, after receipt of the revocation report for a review of the revocation.  The matter shall be scheduled within 30 days.  The special review board shall review the circumstances leading to the revocation and, after considering the factors in subdivision 1, paragraph (b), shall recommend to the judicial appeal panel 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.

 

Sec. 49.  Minnesota Statutes 2024, section 253D.30, subdivision 4, is amended to read:

 

Subd. 4.  Voluntary readmission.  (a) With the consent of the executive director, a committed person may voluntarily return to the Minnesota Sex Offender Program a secure treatment facility from provisional discharge for a period of up to 60 days.

 

(b) If the committed person is not returned to provisional discharge status within 60 days of being readmitted to the Minnesota Sex Offender Program a secure treatment facility, the provisional discharge is revoked.  The committed person shall immediately be notified of the revocation in writing.  Within 15 days of receiving notice of the revocation, the committed person may request a review of the matter before the special review board.  The special review board shall review the circumstances of the revocation and, after applying the standards in subdivision 5, paragraph (a), shall recommend to the judicial appeal panel whether or not the revocation shall be upheld.  The board may recommend a return to provisional discharge status.

 

(c) If the provisional discharge has not been revoked and the committed person is to be returned to provisional discharge, the Minnesota Sex Offender Program is not required to petition for a further review by the special review board no action by the special review board or judicial appeal panel is required unless the committed person's return to the community results in substantive change to the existing provisional discharge plan.

 

Sec. 50.  Minnesota Statutes 2024, section 253D.30, subdivision 5, is amended to read:

 

Subd. 5.  Revocation.  (a) The executive director may revoke a provisional discharge if either of the following grounds exist:

 

(1) the committed person has departed from the conditions of the provisional discharge plan; or

 

(2) the committed person is exhibiting behavior which may be dangerous to self or others.

 

(b) The executive director may revoke the provisional discharge and, either orally or in writing, order that the committed person be immediately returned to a secure treatment facility or other treatment program.  A report documenting reasons for revocation shall be issued by the executive director within seven days after the committed person is returned to the secure treatment facility or other treatment program.  Advance notice to the committed person of the revocation is not required.


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(c) 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 shall be served upon the committed person, the committed person's counsel, and the county attorneys of the county of commitment and the county of financial responsibility.  The report shall outline the specific reasons for the revocation, including but not limited to the specific facts upon which the revocation is based.

 

(d) An individual who is revoked from provisional discharge must successfully re-petition the special review board and judicial appeal panel prior to being placed back on provisional discharge.

 

Sec. 51.  Minnesota Statutes 2024, section 256.01, subdivision 2, is amended to read:

 

Subd. 2.  Specific powers.  Subject to the provisions of section 241.021, subdivision 2, the commissioner of human services shall carry out the specific duties in paragraphs (a) through (bb):

 

(a) Administer and supervise the forms of public assistance provided for by state law and other welfare activities or services that are vested in the commissioner.  Administration and supervision of human services activities or services includes, but is not limited to, assuring timely and accurate distribution of benefits, completeness of service, and quality program management.  In addition to administering and supervising human services activities vested by law in the department, the commissioner shall have the authority to:

 

(1) require county agency participation in training and technical assistance programs to promote compliance with statutes, rules, federal laws, regulations, and policies governing human services;

 

(2) monitor, on an ongoing basis, the performance of county agencies in the operation and administration of human services, enforce compliance with statutes, rules, federal laws, regulations, and policies governing welfare services and promote excellence of administration and program operation;

 

(3) develop a quality control program or other monitoring program to review county performance and accuracy of benefit determinations;

 

(4) require county agencies to make an adjustment to the public assistance benefits issued to any individual consistent with federal law and regulation and state law and rule and to issue or recover benefits as appropriate;

 

(5) delay or deny payment of all or part of the state and federal share of benefits and administrative reimbursement according to the procedures set forth in section 256.017;

 

(6) make contracts with and grants to public and private agencies and organizations, both profit and nonprofit, and individuals, using appropriated funds; and

 

(7) enter into contractual agreements with federally recognized Indian Tribes with a reservation in Minnesota to the extent necessary for the Tribe to operate a federally approved family assistance program or any other program under the supervision of the commissioner.  The commissioner shall consult with the affected county or counties in the contractual agreement negotiations, if the county or counties wish to be included, in order to avoid the duplication of county and Tribal assistance program services.  The commissioner may establish necessary accounts for the purposes of receiving and disbursing funds as necessary for the operation of the programs.

 

The commissioner shall work in conjunction with the commissioner of children, youth, and families to carry out the duties of this paragraph when necessary and feasible.

 

(b) Inform county agencies, on a timely basis, of changes in statute, rule, federal law, regulation, and policy necessary to county agency administration of the programs.


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(c) Administer and supervise all noninstitutional service to persons with disabilities, including persons who have vision impairments, and persons who are deaf, deafblind, and hard-of-hearing or with other disabilities.  The commissioner may provide and contract for the care and treatment of qualified indigent children in facilities other than those located and available at state hospitals operated by the executive board when it is not feasible to provide the service in state hospitals operated by the executive board.

 

(d) Assist and actively cooperate with other departments, agencies and institutions, local, state, and federal, by performing services in conformity with the purposes of Laws 1939, chapter 431.

 

(e) Act as the agent of and cooperate with the federal government in matters of mutual concern relative to and in conformity with the provisions of Laws 1939, chapter 431, including the administration of any federal funds granted to the state to aid in the performance of any functions of the commissioner as specified in Laws 1939, chapter 431, and including the promulgation of rules making uniformly available medical care benefits to all recipients of public assistance, at such times as the federal government increases its participation in assistance expenditures for medical care to recipients of public assistance, the cost thereof to be borne in the same proportion as are grants of aid to said recipients.

 

(f) Establish and maintain any administrative units reasonably necessary for the performance of administrative functions common to all divisions of the department.

 

(g) Act as designated guardian of both the estate and the person of all the wards of the state of Minnesota, whether by operation of law or by an order of court, without any further act or proceeding whatever, except as to persons committed as developmentally disabled.

 

(h) Act as coordinating referral and informational center on requests for service for newly arrived immigrants coming to Minnesota.

 

(i) The specific enumeration of powers and duties as hereinabove set forth shall in no way be construed to be a limitation upon the general transfer of powers herein contained.

 

(j) Establish county, regional, or statewide schedules of maximum fees and charges which may be paid by county agencies for medical, dental, surgical, hospital, nursing and nursing home care and medicine and medical supplies under all programs of medical care provided by the state and for congregate living care under the income maintenance programs.

 

(k) Have the authority to conduct and administer experimental projects to test methods and procedures of administering assistance and services to recipients or potential recipients of public welfare.  To carry out such experimental projects, it is further provided that the commissioner of human services is authorized to waive the enforcement of existing specific statutory program requirements, rules, and standards in one or more counties.  The order establishing the waiver shall provide alternative methods and procedures of administration, shall not be in conflict with the basic purposes, coverage, or benefits provided by law, and in no event shall the duration of a project exceed four years.  It is further provided that no order establishing an experimental project as authorized by the provisions of this section shall become effective until the following conditions have been met:

 

(1) the United States Secretary of Health and Human Services has agreed, for the same project, to waive state plan requirements relative to statewide uniformity; and

 

(2) a comprehensive plan, including estimated project costs, shall be approved by the Legislative Advisory Commission and filed with the commissioner of administration.


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(l) According to federal requirements and in coordination with the commissioner of children, youth, and families, establish procedures to be followed by local welfare boards in creating citizen advisory committees, including procedures for selection of committee members.

 

(m) Allocate federal fiscal disallowances or sanctions which are based on quality control error rates for medical assistance in the following manner:

 

(1) one-half of the total amount of the disallowance shall be borne by the county boards responsible for administering the programs.  Disallowances shall be shared by each county board in the same proportion as that county's expenditures for the sanctioned program are to the total of all counties' expenditures for medical assistance.  Each county shall pay its share of the disallowance to the state of Minnesota.  When a county fails to pay the amount due hereunder, the commissioner may deduct the amount from reimbursement otherwise due the county, or the attorney general, upon the request of the commissioner, may institute civil action to recover the amount due; and

 

(2) notwithstanding the provisions of clause (1), if the disallowance results from knowing noncompliance by one or more counties with a specific program instruction, and that knowing noncompliance is a matter of official county board record, the commissioner may require payment or recover from the county or counties, in the manner prescribed in clause (1), an amount equal to the portion of the total disallowance which resulted from the noncompliance, and may distribute the balance of the disallowance according to clause (1).

 

(n) Develop and implement special projects that maximize reimbursements and result in the recovery of money to the state.  For the purpose of recovering state money, the commissioner may enter into contracts with third parties.  Any recoveries that result from projects or contracts entered into under this paragraph shall be deposited in the state treasury and credited to a special account until the balance in the account reaches $1,000,000.  When the balance in the account exceeds $1,000,000, the excess shall be transferred and credited to the general fund.  All money in the account is appropriated to the commissioner for the purposes of this paragraph.

 

(o) Have the authority to establish and enforce the following county reporting requirements:

 

(1) the commissioner shall establish fiscal and statistical reporting requirements necessary to account for the expenditure of funds allocated to counties for human services programs.  When establishing financial and statistical reporting requirements, the commissioner shall evaluate all reports, in consultation with the counties, to determine if the reports can be simplified or the number of reports can be reduced;

 

(2) the county board shall submit monthly or quarterly reports to the department as required by the commissioner.  Monthly reports are due no later than 15 working days after the end of the month.  Quarterly reports are due no later than 30 calendar days after the end of the quarter, unless the commissioner determines that the deadline must be shortened to 20 calendar days to avoid jeopardizing compliance with federal deadlines or risking a loss of federal funding.  Only reports that are complete, legible, and in the required format shall be accepted by the commissioner;

 

(3) if the required reports are not received by the deadlines established in clause (2), the commissioner may delay payments and withhold funds from the county board until the next reporting period.  When the report is needed to account for the use of federal funds and the late report results in a reduction in federal funding, the commissioner shall withhold from the county boards with late reports an amount equal to the reduction in federal funding until full federal funding is received;

 

(4) a county board that submits reports that are late, illegible, incomplete, or not in the required format for two out of three consecutive reporting periods is considered noncompliant.  When a county board is found to be noncompliant, the commissioner shall notify the county board of the reason the county board is considered noncompliant and request that the county board develop a corrective action plan stating how the county board plans to correct the problem.  The corrective action plan must be submitted to the commissioner within 45 days after the date the county board received notice of noncompliance;


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(5) the final deadline for fiscal reports or amendments to fiscal reports is one year after the date the report was originally due.  If the commissioner does not receive a report by the final deadline, the county board forfeits the funding associated with the report for that reporting period and the county board must repay any funds associated with the report received for that reporting period;

 

(6) the commissioner may not delay payments, withhold funds, or require repayment under clause (3) or (5) if the county demonstrates that the commissioner failed to provide appropriate forms, guidelines, and technical assistance to enable the county to comply with the requirements.  If the county board disagrees with an action taken by the commissioner under clause (3) or (5), the county board may appeal the action according to sections 14.57 to 14.69; and

 

(7) counties subject to withholding of funds under clause (3) or forfeiture or repayment of funds under clause (5) shall not reduce or withhold benefits or services to clients to cover costs incurred due to actions taken by the commissioner under clause (3) or (5).

 

(p) Allocate federal fiscal disallowances or sanctions for audit exceptions when federal fiscal disallowances or sanctions are based on a statewide random sample in direct proportion to each county's claim for that period.

 

(q) Be responsible for ensuring the detection, prevention, investigation, and resolution of fraudulent activities or behavior by applicants, recipients, and other participants in the human services programs administered by the department.

 

(r) Require county agencies to identify overpayments, establish claims, and utilize all available and cost‑beneficial methodologies to collect and recover these overpayments in the human services programs administered by the department.

 

(s) Have the authority to administer the federal drug rebate program for drugs purchased under the medical assistance program as allowed by section 1927 of title XIX of the Social Security Act and according to the terms and conditions of section 1927.  Rebates shall be collected for all drugs that have been dispensed or administered in an outpatient setting and that are from manufacturers who have signed a rebate agreement with the United States Department of Health and Human Services.

 

(t) Have the authority to administer a supplemental drug rebate program for drugs purchased under the medical assistance program.  The commissioner may enter into supplemental rebate contracts with pharmaceutical manufacturers and may require prior authorization for drugs that are from manufacturers that have not signed a supplemental rebate contract.  Prior authorization of drugs shall be subject to the provisions of section 256B.0625, subdivision 13.

 

(u) Operate the department's communication systems account established in Laws 1993, First Special Session chapter 1, article 1, section 2, subdivision 2, to manage shared communication costs necessary for the operation of the programs the commissioner supervises.  Each account must be used to manage shared communication costs necessary for the operations of the programs the commissioner supervises.  The commissioner may distribute the costs of operating and maintaining communication systems to participants in a manner that reflects actual usage.  Costs may include acquisition, licensing, insurance, maintenance, repair, staff time and other costs as determined by the commissioner.  Nonprofit organizations and state, county, and local government agencies involved in the operation of programs the commissioner supervises may participate in the use of the department's communications technology and share in the cost of operation.  The commissioner may accept on behalf of the state any gift, bequest, devise or personal property of any kind, or money tendered to the state for any lawful purpose pertaining to the communication activities of the department.  Any money received for this purpose must be deposited in the department's communication systems accounts.  Money collected by the commissioner for the use of communication systems must be deposited in the state communication systems account and is appropriated to the commissioner for purposes of this section.


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(v) Receive any federal matching money that is made available through the medical assistance program for the consumer satisfaction survey.  Any federal money received for the survey is appropriated to the commissioner for this purpose.  The commissioner may expend the federal money received for the consumer satisfaction survey in either year of the biennium.

 

(w) Designate community information and referral call centers and incorporate cost reimbursement claims from the designated community information and referral call centers into the federal cost reimbursement claiming processes of the department according to federal law, rule, and regulations.  Existing information and referral centers provided by Greater Twin Cities United Way or existing call centers for which Greater Twin Cities United Way has legal authority to represent, shall be included in these designations upon review by the commissioner and assurance that these services are accredited and in compliance with national standards.  Any reimbursement is appropriated to the commissioner and all designated information and referral centers shall receive payments according to normal department schedules established by the commissioner upon final approval of allocation methodologies from the United States Department of Health and Human Services Division of Cost Allocation or other appropriate authorities.

 

(x) Develop recommended standards for adult foster care homes that address the components of specialized therapeutic services to be provided by adult foster care homes with those services.

 

(y) Authorize the method of payment to or from the department as part of the human services programs administered by the department.  This authorization includes the receipt or disbursement of funds held by the department in a fiduciary capacity as part of the human services programs administered by the department.

 

(z) Designate the agencies that operate the Senior LinkAge Line under section 256.975, subdivision 7, and the Disability Hub under subdivision 24 as the state of Minnesota Aging and Disability Resource Center under United States Code, title 42, section 3001, the Older Americans Act Amendments of 2006, and incorporate cost reimbursement claims from the designated centers into the federal cost reimbursement claiming processes of the department according to federal law, rule, and regulations.  Any reimbursement must be appropriated to the commissioner and treated consistent with section 256.011.  All Aging and Disability Resource Center designated agencies shall receive payments of grant funding that supports the activity and generates the federal financial participation according to Board on Aging administrative granting mechanisms.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 52.  Minnesota Statutes 2024, section 256.01, subdivision 5, is amended to read:

 

Subd. 5.  Gifts, contributions, pensions and benefits; acceptance.  The commissioner may receive and accept on behalf of patients and residents at the several state hospitals for persons with mental illness or developmental disabilities during the period of their hospitalization and while on provisional discharge therefrom, money due and payable to them as old age and survivors insurance benefits, veterans benefits, pensions or other such monetary benefits.  Such gifts, contributions, pensions and benefits shall be deposited in and disbursed from the social welfare fund provided for in sections 256.88 to 256.92.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 53.  Minnesota Statutes 2024, section 256.019, subdivision 1, is amended to read:

 

Subdivision 1.  Retention rates.  When an assistance recovery amount is collected and posted by a county agency under the provisions governing public assistance programs including general assistance medical care formerly codified in chapter 256D, general assistance, and Minnesota supplemental aid, the county may keep one‑half of the recovery made by the county agency using any method other than recoupment.  For medical


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assistance, if the recovery is made by a county agency using any method other than recoupment, the county may keep one-half of the nonfederal share of the recovery.  For MinnesotaCare, if the recovery is collected and posted by the county agency, the county may keep one-half of the nonfederal share of the recovery.

 

This does not apply to recoveries from medical providers or to recoveries begun by the Department of Human Services' Surveillance and Utilization Review Division, State Hospital Collections Unit, and the Benefit Recoveries Division or, by the Direct Care and Treatment State Hospital Collections Unit, the attorney general's office, or child support collections.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 54.  Minnesota Statutes 2024, section 256.0281, is amended to read:

 

256.0281 INTERAGENCY DATA EXCHANGE.

 

(a) The Department of Human Services, the Department of Health, Direct Care and Treatment, and the Office of the Ombudsman for Mental Health and Developmental Disabilities may establish interagency agreements governing the electronic exchange of data on providers and individuals collected, maintained, or used by each agency when such exchange is outlined by each agency in an interagency agreement to accomplish the purposes in clauses (1) to (4):

 

(1) to improve provider enrollment processes for home and community-based services and state plan home care services;

 

(2) to improve quality management of providers between state agencies;

 

(3) to establish and maintain provider eligibility to participate as providers under Minnesota health care programs; or

 

(4) to meet the quality assurance reporting requirements under federal law under section 1915(c) of the Social Security Act related to home and community-based waiver programs.

 

(b) Each interagency agreement must include provisions to ensure anonymity of individuals, including mandated reporters, and must outline the specific uses of and access to shared data within each agency.  Electronic interfaces between source data systems developed under these interagency agreements must incorporate these provisions as well as other HIPAA provisions related to individual data.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 55.  Minnesota Statutes 2024, section 256.0451, subdivision 1, is amended to read:

 

Subdivision 1.  Scope.  (a) The requirements in this section apply to all fair hearings and appeals under sections 142A.20, subdivision 2, and 256.045, subdivision 3, paragraph (a), clauses (1), (2), (3), (5), (6), (7), (10), and (12).  Except as provided in subdivisions 3 and 19, the requirements under this section apply to fair hearings and appeals under section 256.045, subdivision 3, paragraph (a), clauses (4), (8), (9), and (11).

 

(b) For purposes of this section, "person" means an individual who, on behalf of themselves or their household, is appealing or disputing or challenging an action, a decision, or a failure to act, by an agency in the human services system subject to this section.  When a person involved in a proceeding under this section is represented by an attorney or by an authorized representative, the term "person" also means the person's attorney or authorized representative.  Any notice sent to the person involved in the hearing must also be sent to the person's attorney or authorized representative.


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(c) For purposes of this section, "agency" means the a county human services agency, the a state human services agency, and, where applicable, any entity involved under a contract, subcontract, grant, or subgrant with the state agency or with a county agency, that provides or operates programs or services in which appeals are governed by section 256.045.

 

(d) For purposes of this section, "state agency" means the Department of Human Services; the Department of Health; the Department of Education; the Department of Children, Youth, and Families; or Direct Care and Treatment.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 56.  Minnesota Statutes 2024, section 256.0451, subdivision 3, is amended to read:

 

Subd. 3.  Agency appeal summary.  (a) Except in fair hearings and appeals under section 256.045, subdivision 3, paragraph (a), clauses (4), (9), and (10), the agency involved in an appeal must prepare a state agency appeal summary for each fair hearing appeal.  The state agency appeal summary shall be mailed or otherwise delivered to the person who is involved in the appeal at least three working days before the date of the hearing.  The state agency appeal summary must also be mailed or otherwise delivered to the department's Department of Human Services' Appeals Office at least three working days before the date of the fair hearing appeal.

 

(b) In addition, the human services judge shall confirm that the state agency appeal summary is mailed or otherwise delivered to the person involved in the appeal as required under paragraph (a).  The person involved in the fair hearing should be provided, through the state agency appeal summary or other reasonable methods, appropriate information about the procedures for the fair hearing and an adequate opportunity to prepare.  These requirements apply equally to the state agency or an entity under contract when involved in the appeal.

 

(c) The contents of the state agency appeal summary must be adequate to inform the person involved in the appeal of the evidence on which the agency relies and the legal basis for the agency's action or determination.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 57.  Minnesota Statutes 2024, section 256.0451, subdivision 6, is amended to read:

 

Subd. 6.  Appeal request for emergency assistance or urgent matter.  (a) When an appeal involves an application for emergency assistance, the agency involved shall mail or otherwise deliver the state agency appeal summary to the department's Department of Human Services' Appeals Office within two working days of receiving the request for an appeal.  A person may also request that a fair hearing be held on an emergency basis when the issue requires an immediate resolution.  The human services judge shall schedule the fair hearing on the earliest available date according to the urgency of the issue involved.  Issuance of the recommended decision after an emergency hearing shall be expedited.

 

(b) The applicable commissioner or executive board shall issue a written decision within five working days of receiving the recommended decision, shall immediately inform the parties of the outcome by telephone, and shall mail the decision no later than two working days following the date of the decision.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 58.  Minnesota Statutes 2024, section 256.0451, subdivision 8, is amended to read:

 

Subd. 8.  Subpoenas.  A person involved in a fair hearing or the agency may request a subpoena for a witness, for evidence, or for both.  A reasonable number of subpoenas shall be issued to require the attendance and the testimony of witnesses, and the production of evidence relating to any issue of fact in the appeal hearing.  The


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request for a subpoena must show a need for the subpoena and the general relevance to the issues involved.  The subpoena shall be issued in the name of the Department of Human Services and shall be served and enforced as provided in section 357.22 and the Minnesota Rules of Civil Procedure.

 

An individual or entity served with a subpoena may petition the human services judge in writing to vacate or modify a subpoena.  The human services judge shall resolve such a petition in a prehearing conference involving all parties and shall make a written decision.  A subpoena may be vacated or modified if the human services judge determines that the testimony or evidence sought does not relate with reasonable directness to the issues of the fair hearing appeal; that the subpoena is unreasonable, over broad, or oppressive; that the evidence sought is repetitious or cumulative; or that the subpoena has not been served reasonably in advance of the time when the appeal hearing will be held.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 59.  Minnesota Statutes 2024, section 256.0451, subdivision 9, is amended to read:

 

Subd. 9.  No ex parte contact.  The human services judge shall not have ex parte contact on substantive issues with the agency or with any person or witness in a fair hearing appeal.  No employee of the Department or an agency shall review, interfere with, change, or attempt to influence the recommended decision of the human services judge in any fair hearing appeal, except through the procedure allowed in subdivision 18.  The limitations in this subdivision do not affect the applicable commissioner's or executive board's authority to review or reconsider decisions or make final decisions.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 60.  Minnesota Statutes 2024, section 256.0451, subdivision 18, is amended to read:

 

Subd. 18.  Inviting comment by department state agency.  The human services judge or the applicable commissioner or executive board may determine that a written comment by the department state agency about the policy implications of a specific legal issue could help resolve a pending appeal.  Such a written policy comment from the department state agency shall be obtained only by a written request that is also sent to the person involved and to the agency or its representative.  When such a written comment is received, both the person involved in the hearing and the agency shall have adequate opportunity to review, evaluate, and respond to the written comment, including submission of additional testimony or evidence, and cross-examination concerning the written comment.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 61.  Minnesota Statutes 2024, section 256.0451, subdivision 22, is amended to read:

 

Subd. 22.  Decisions.  A timely, written decision must be issued in every appeal.  Each decision must contain a clear ruling on the issues presented in the appeal hearing and should contain a ruling only on questions directly presented by the appeal and the arguments raised in the appeal.

 

(a) A written decision must be issued within 90 days of the date the person involved requested the appeal unless a shorter time is required by law.  An additional 30 days is provided in those cases where the applicable commissioner or executive board refuses to accept the recommended decision.  In appeals of maltreatment determinations or disqualifications filed pursuant to section 256.045, subdivision 3, paragraph (a), clause (4), (8), or (9), that also give rise to possible licensing actions, the 90-day period for issuing final decisions does not begin until the later of the date that the licensing authority provides notice to the appeals division that the authority has made the final determination in the matter or the date the appellant files the last appeal in the consolidated matters.


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(b) The decision must contain both findings of fact and conclusions of law, clearly separated and identified.  The findings of fact must be based on the entire record.  Each finding of fact made by the human services judge shall be supported by a preponderance of the evidence unless a different standard is required under the regulations of a particular program.  The "preponderance of the evidence" means, in light of the record as a whole, the evidence leads the human services judge to believe that the finding of fact is more likely to be true than not true.  The legal claims or arguments of a participant do not constitute either a finding of fact or a conclusion of law, except to the extent the human services judge adopts an argument as a finding of fact or conclusion of law.

 

The decision shall contain at least the following:

 

(1) a listing of the date and place of the hearing and the participants at the hearing;

 

(2) a clear and precise statement of the issues, including the dispute under consideration and the specific points which must be resolved in order to decide the case;

 

(3) a listing of the material, including exhibits, records, reports, placed into evidence at the hearing, and upon which the hearing decision is based;

 

(4) the findings of fact based upon the entire hearing record.  The findings of fact must be adequate to inform the participants and any interested person in the public of the basis of the decision.  If the evidence is in conflict on an issue which must be resolved, the findings of fact must state the reasoning used in resolving the conflict;

 

(5) conclusions of law that address the legal authority for the hearing and the ruling, and which give appropriate attention to the claims of the participants to the hearing;

 

(6) a clear and precise statement of the decision made resolving the dispute under consideration in the hearing; and

 

(7) written notice of the right to appeal to district court or to request reconsideration, and of the actions required and the time limits for taking appropriate action to appeal to district court or to request a reconsideration.

 

(c) The human services judge shall not independently investigate facts or otherwise rely on information not presented at the hearing.  The human services judge may not contact other agency personnel, except as provided in subdivision 18.  The human services judge's recommended decision must be based exclusively on the testimony and evidence presented at the hearing, and legal arguments presented, and the human services judge's research and knowledge of the law.

 

(d) The applicable commissioner will or executive board must review the recommended decision and accept or refuse to accept the decision according to section 142A.20, subdivision 3, or 256.045, subdivision 5 or 5a.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 62.  Minnesota Statutes 2024, section 256.0451, subdivision 23, is amended to read:

 

Subd. 23.  Refusal to accept recommended orders.  (a) If the applicable commissioner or executive board refuses to accept the recommended order from the human services judge, the person involved, the person's attorney or authorized representative, and the agency shall be sent a copy of the recommended order, a detailed explanation of the basis for refusing to accept the recommended order, and the proposed modified order.

 

(b) The person involved and the agency shall have at least ten business days to respond to the proposed modification of the recommended order.  The person involved and the agency may submit a legal argument concerning the proposed modification, and may propose to submit additional evidence that relates to the proposed modified order.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.


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Sec. 63.  Minnesota Statutes 2024, section 256.0451, subdivision 24, is amended to read:

 

Subd. 24.  Reconsideration.  (a) Reconsideration may be requested within 30 days of the date of the applicable commissioner's or executive board's final order.  If reconsideration is requested under section 142A.20, subdivision 3, or 256.045, subdivision 5 or 5a, the other participants in the appeal shall be informed of the request.  The person seeking reconsideration has the burden to demonstrate why the matter should be reconsidered.  The request for reconsideration may include legal argument and may include proposed additional evidence supporting the request.  The other participants shall be sent a copy of all material submitted in support of the request for reconsideration and must be given ten days to respond.

 

(b) When the requesting party raises a question as to the appropriateness of the findings of fact, the applicable commissioner or executive board shall review the entire record.

 

(c) When the requesting party questions the appropriateness of a conclusion of law, the applicable commissioner or executive board shall consider the recommended decision, the decision under reconsideration, and the material submitted in connection with the reconsideration.  The applicable commissioner or executive board shall review the remaining record as necessary to issue a reconsidered decision.

 

(d) The applicable commissioner or executive board shall issue a written decision on reconsideration in a timely fashion.  The decision must clearly inform the parties that this constitutes the final administrative decision, advise the participants of the right to seek judicial review, and the deadline for doing so.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 64.  Minnesota Statutes 2024, section 256.4825, is amended to read:

 

256.4825 REPORT REGARDING PROGRAMS AND SERVICES FOR PEOPLE WITH DISABILITIES.

 

The Minnesota State Council on Disability, the Minnesota Consortium for Citizens with Disabilities, and the Arc of Minnesota may submit an annual report by January 15 of each year, beginning in 2012, to the chairs and ranking minority members of the legislative committees with jurisdiction over programs serving people with disabilities as provided in this section.  The report must describe the existing state policies and goals for programs serving people with disabilities including, but not limited to, programs for employment, transportation, housing, education, quality assurance, consumer direction, physical and programmatic access, and health.  The report must provide data and measurements to assess the extent to which the policies and goals are being met.  The commissioner of human services, the Direct Care and Treatment executive board, and the commissioners of other state agencies administering programs for people with disabilities shall cooperate with the Minnesota State Council on Disability, the Minnesota Consortium for Citizens with Disabilities, and the Arc of Minnesota and provide those organizations with existing published information and reports that will assist in the preparation of the report.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 65.  Minnesota Statutes 2024, section 256.93, subdivision 1, is amended to read:

 

Subdivision 1.  Limitations.  In any case where the guardianship of any child with a developmental disability or who is disabled, dependent, neglected or delinquent, or a child born to a mother who was not married to the child's father when the child was conceived nor when the child was born, has been committed appointed to the commissioner of human services, and in any case where the guardianship of any person with a developmental disability has been committed appointed to the commissioner of human services, the court having jurisdiction of the estate may on such notice as the court may direct, authorize the commissioner to take possession of the personal property in the estate, liquidate it, and hold the proceeds in trust for the ward, to be invested, expended and accounted for as provided by sections 256.88 to 256.92.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.


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Sec. 66.  Minnesota Statutes 2024, section 256.98, subdivision 7, is amended to read:

 

Subd. 7.  Division of recovered amounts.  Except for recoveries under chapter 142E, if the state is responsible for the recovery, the amounts recovered shall be paid to the appropriate units of government.  If the recovery is directly attributable to a county, the county may retain one-half of the nonfederal share of any recovery from a recipient or the recipient's estate.

 

This subdivision does not apply to recoveries from medical providers or to recoveries involving the Department of Human services, Services' Surveillance and Utilization Review Division, state hospital collections unit, and the Benefit Recoveries Division or the Direct Care and Treatment State Hospital Collections Unit.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 67.  Minnesota Statutes 2024, section 256B.092, subdivision 10, is amended to read:

 

Subd. 10.  Admission of persons to and discharge of persons from regional treatment centers.  (a) Prior to the admission of a person to a regional treatment center program for persons with developmental disabilities, the case manager shall make efforts to secure community-based alternatives.  If these alternatives are rejected by the person, the person's legal guardian or conservator, or the county agency in favor of a regional treatment center placement, the case manager shall document the reasons why the alternatives were rejected.

 

(b) Assessment and support planning must be completed in accordance with requirements identified in section 256B.0911.

 

(c) No discharge shall take place until disputes are resolved under section 256.045, subdivision 4a, or until a review by the commissioner Direct Care and Treatment executive board is completed upon request of the chief executive officer or program director of the regional treatment center, or the county agency.  For persons under public guardianship, the ombudsman may request a review or hearing under section 256.045.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 68.  Minnesota Statutes 2024, section 256G.09, subdivision 4, is amended to read:

 

Subd. 4.  Appeals.  A local agency that is aggrieved by the order of the a department or the executive board may appeal the opinion to the district court of the county responsible for furnishing assistance or services by serving a written copy of a notice of appeal on the a commissioner or the executive board and any adverse party of record within 30 days after the date the department issued the opinion, and by filing the original notice and proof of service with the court administrator of district court.  Service may be made personally or by mail.  Service by mail is complete upon mailing.

 

The A commissioner or the executive board may elect to become a party to the proceedings in district court.  The court may consider the matter in or out of chambers and shall take no new or additional evidence.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 69.  Minnesota Statutes 2024, section 256G.09, subdivision 5, is amended to read:

 

Subd. 5.  Payment pending appeal.  After the a department or the executive board issues an opinion in any submission under this section, the service or assistance covered by the submission must be provided or paid pending or during an appeal to the district court.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.


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Sec. 70.  Minnesota Statutes 2024, section 299F.77, subdivision 2, is amended to read:

 

Subd. 2.  Background check.  (a) For licenses issued by the commissioner under section 299F.73, the applicant for licensure must provide the commissioner with all of the information required by Code of Federal Regulations, title 28, section 25.7.  The commissioner shall forward the information to the superintendent of the Bureau of Criminal Apprehension so that criminal records, histories, and warrant information on the applicant can be retrieved from the Minnesota Crime Information System and the National Instant Criminal Background Check System, as well as the civil commitment records maintained by the Department of Human Services Direct Care and Treatment.  The results must be returned to the commissioner to determine if the individual applicant is qualified to receive a license.

 

(b) For permits issued by a county sheriff or chief of police under section 299F.75, the applicant for a permit must provide the county sheriff or chief of police with all of the information required by Code of Federal Regulations, title 28, section 25.7.  The county sheriff or chief of police must check, by means of electronic data transfer, criminal records, histories, and warrant information on each applicant through the Minnesota Crime Information System and the National Instant Criminal Background Check System, as well as the civil commitment records maintained by the Department of Human Services Direct Care and Treatment.  The county sheriff or chief of police shall use the results of the query to determine if the individual applicant is qualified to receive a permit.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 71.  Minnesota Statutes 2024, section 342.04, is amended to read:

 

342.04 STUDIES; REPORTS.

 

(a) The office shall conduct a study to determine the expected size and growth of the regulated cannabis industry and hemp consumer industry, including an estimate of the demand for cannabis flower and cannabis products, the number and geographic distribution of cannabis businesses needed to meet that demand, and the anticipated business from residents of other states.

 

(b) The office shall conduct a study to determine the size of the illicit cannabis market, the sources of illicit cannabis flower and illicit cannabis products in the state, the locations of citations issued and arrests made for cannabis offenses, and the subareas, such as census tracts or neighborhoods, that experience a disproportionately large amount of cannabis enforcement.

 

(c) The office shall conduct a study on impaired driving to determine:

 

(1) the number of accidents involving one or more drivers who admitted to using cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products, or who tested positive for cannabis or tetrahydrocannabinol;

 

(2) the number of arrests of individuals for impaired driving in which the individual tested positive for cannabis or tetrahydrocannabinol; and

 

(3) the number of convictions for driving under the influence of cannabis flower, cannabis products, lower‑potency hemp edibles, hemp-derived consumer products, or tetrahydrocannabinol.

 

(d) The office shall provide preliminary reports on the studies conducted pursuant to paragraphs (a) to (c) to the legislature by January 15, 2024, and shall provide final reports to the legislature by January 15, 2025.  The reports may be consolidated into a single report by the office.


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(e) The office shall collect existing data from the Department of Human Services, Department of Health, Direct Care and Treatment, Minnesota state courts, and hospitals licensed under chapter 144 on the utilization of mental health and substance use disorder services, emergency room visits, and commitments to identify any increase in the services provided or any increase in the number of visits or commitments.  The office shall also obtain summary data from existing first episode psychosis programs on the number of persons served by the programs and number of persons on the waiting list.  All information collected by the office under this paragraph shall be included in the report required under paragraph (f).

 

(f) The office shall conduct an annual market analysis on the status of the regulated cannabis industry and submit a report of the findings.  The office shall submit the report by January 15, 2025, and each January 15 thereafter and the report may be combined with the annual report submitted by the office.  The process of completing the market analysis must include holding public meetings to solicit the input of consumers, market stakeholders, and potential new applicants and must include an assessment as to whether the office has issued the necessary number of licenses in order to:

 

(1) ensure the sufficient supply of cannabis flower and cannabis products to meet demand;

 

(2) provide market stability;

 

(3) ensure a competitive market; and

 

(4) limit the sale of unregulated cannabis flower and cannabis products.

 

(g) The office shall submit an annual report to the legislature by January 15, 2024, and each January 15 thereafter.  The annual report shall include but not be limited to the following:

 

(1) the status of the regulated cannabis industry;

 

(2) the status of the illicit cannabis market and hemp consumer industry;

 

(3) the number of accidents, arrests, and convictions involving drivers who admitted to using cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products or who tested positive for cannabis or tetrahydrocannabinol;

 

(4) the change in potency, if any, of cannabis flower and cannabis products available through the regulated market;

 

(5) progress on providing opportunities to individuals and communities that experienced a disproportionate, negative impact from cannabis prohibition, including but not limited to providing relief from criminal convictions and increasing economic opportunities;

 

(6) the status of racial and geographic diversity in the cannabis industry;

 

(7) proposed legislative changes, including but not limited to recommendations to streamline licensing systems and related administrative processes;

 

(8) information on the adverse effects of second-hand smoke from any cannabis flower, cannabis products, and hemp-derived consumer products that are consumed by the combustion or vaporization of the product and the inhalation of smoke, aerosol, or vapor from the product; and


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(9) recommendations for the levels of funding for:

 

(i) a coordinated education program to address and raise public awareness about the top three adverse health effects, as determined by the commissioner of health, associated with the use of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products by individuals under 21 years of age;

 

(ii) a coordinated education program to educate pregnant individuals, breastfeeding individuals, and individuals who may become pregnant on the adverse health effects of cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products;

 

(iii) training, technical assistance, and educational materials for home visiting programs, Tribal home visiting programs, and child welfare workers regarding safe and unsafe use of cannabis flower, cannabis products, lower‑potency hemp edibles, and hemp-derived consumer products in homes with infants and young children;

 

(iv) model programs to educate middle school and high school students on the health effects on children and adolescents of the use of cannabis flower, cannabis products, lower-potency hemp edibles, hemp-derived consumer products, and other intoxicating or controlled substances;

 

(v) grants issued through the CanTrain, CanNavigate, CanStartup, and CanGrow programs;

 

(vi) grants to organizations for community development in social equity communities through the CanRenew program;

 

(vii) training of peace officers and law enforcement agencies on changes to laws involving cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products and the law's impact on searches and seizures;

 

(viii) training of peace officers to increase the number of drug recognition experts;

 

(ix) training of peace officers on the cultural uses of sage and distinguishing use of sage from the use of cannabis flower, including whether the Board of Peace Officer Standards and Training should approve or develop training materials;

 

(x) the retirement and replacement of drug detection canines; and

 

(xi) the Department of Human Services and county social service agencies to address any increase in demand for services.

 

(g) In developing the recommended funding levels under paragraph (f), clause (9), items (vii) to (xi), the office shall consult with local law enforcement agencies, the Minnesota Chiefs of Police Association, the Minnesota Sheriff's Association, the League of Minnesota Cities, the Association of Minnesota Counties, and county social services agencies.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 72.  Minnesota Statutes 2024, section 352.91, subdivision 3f, is amended to read:

 

Subd. 3f.  Additional Direct Care and Treatment personnel.  (a) "Covered correctional service" means service by a state employee in one of the employment positions specified in paragraph (b) in the state-operated forensic services program or the Minnesota Sex Offender Program if at least 75 percent of the employee's working time is spent in direct contact with patients and the determination of this direct contact is certified to the executive director by the commissioner of human services or Direct Care and Treatment executive board.


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(b) The employment positions are:

 

(1) baker;

 

(2) behavior analyst 2;

 

(3) behavior analyst 3;

 

(4) certified occupational therapy assistant 1;

 

(5) certified occupational therapy assistant 2;

 

(6) client advocate;

 

(7) clinical program therapist 2;

 

(8) clinical program therapist 3;

 

(9) clinical program therapist 4;

 

(10) cook;

 

(11) culinary supervisor;

 

(12) customer services specialist principal;

 

(13) dental assistant registered;

 

(14) dental hygienist;

 

(15) food service worker;

 

(16) food services supervisor;

 

(17) group supervisor;

 

(18) group supervisor assistant;

 

(19) human services support specialist;

 

(20) licensed alcohol and drug counselor;

 

(21) licensed practical nurse;

 

(22) management analyst 3;

 

(23) music therapist;

 

(24) occupational therapist;

 

(25) occupational therapist, senior;


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(26) physical therapist;

 

(27) psychologist 1;

 

(28) psychologist 2;

 

(29) psychologist 3;

 

(30) recreation program assistant;

 

(31) recreation therapist lead;

 

(32) recreation therapist senior;

 

(33) rehabilitation counselor senior;

 

(34) residential program lead;

 

(35) security supervisor;

 

(36) skills development specialist;

 

(37) social worker senior;

 

(38) social worker specialist;

 

(39) social worker specialist, senior;

 

(40) special education program assistant;

 

(41) speech pathology clinician;

 

(42) substance use disorder counselor senior;

 

(43) work therapy assistant; and

 

(44) work therapy program coordinator.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 73.  Minnesota Statutes 2024, section 401.17, subdivision 1, is amended to read:

 

Subdivision 1.  Establishment; members.  (a) The commissioner must establish a Community Supervision Advisory Committee to develop and make recommendations to the commissioner on standards for probation, supervised release, and community supervision.  The committee consists of 19 members as follows:

 

(1) two directors appointed by the Minnesota Association of Community Corrections Act Counties;

 

(2) two probation directors appointed by the Minnesota Association of County Probation Officers;

 

(3) three county commissioner representatives appointed by the Association of Minnesota Counties;


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(4) two behavioral health, treatment, or programming providers who work directly with individuals on correctional supervision, one appointed by the Department of Human Services Department of Corrections and one appointed by the Minnesota Association of County Social Service Administrators;

 

(5) two representatives appointed by the Minnesota Indian Affairs Council;

 

(6) two commissioner-appointed representatives from the Department of Corrections;

 

(7) the chair of the statewide Evidence-Based Practice Advisory Committee;

 

(8) three individuals who have been supervised, either individually or collectively, under each of the state's three community supervision delivery systems appointed by the commissioner in consultation with the Minnesota Association of County Probation Officers and the Minnesota Association of Community Corrections Act Counties;

 

(9) an advocate for victims of crime appointed by the commissioner; and

 

(10) a representative from a community-based research and advocacy entity appointed by the commissioner.

 

(b) When an appointing authority selects an individual for membership on the committee, the authority must make reasonable efforts to reflect geographic diversity and to appoint qualified members of protected groups, as defined under section 43A.02, subdivision 33.

 

(c) Chapter 15 applies to the extent consistent with this section.

 

(d) The commissioner must convene the first meeting of the committee on or before October 1, 2023.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 74.  Minnesota Statutes 2024, section 507.071, subdivision 1, is amended to read:

 

Subdivision 1.  Definitions.  For the purposes of this section the following terms have the meanings given:

 

(a) "Beneficiary" or "grantee beneficiary" means a person or entity named as a grantee beneficiary in a transfer on death deed, including a successor grantee beneficiary.

 

(b) "County agency" means the county department or office designated to recover medical assistance benefits from the estates of decedents.

 

(c) "Grantor owner" means an owner, whether individually, as a joint tenant, or as a tenant in common, named as a grantor in a transfer on death deed upon whose death the conveyance or transfer of the described real property is conditioned.  Grantor owner does not include a spouse who joins in a transfer on death deed solely for the purpose of conveying or releasing statutory or other marital interests in the real property to be conveyed or transferred by the transfer on death deed.

 

(d) "Owner" means a person having an ownership or other interest in all or part of the real property to be conveyed or transferred by a transfer on death deed either at the time the deed is executed or at the time the transfer becomes effective.  Owner does not include a spouse who joins in a transfer on death deed solely for the purpose of conveying or releasing statutory or other marital interests in the real property to be conveyed or transferred by the transfer on death deed.


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(e) "Property" and "interest in real property" mean any interest in real property located in this state which is transferable on the death of the owner and includes, without limitation, an interest in real property defined in chapter 500, a mortgage, a deed of trust, a security interest in, or a security pledge of, an interest in real property, including the rights to payments of the indebtedness secured by the security instrument, a judgment, a tax lien, both the seller's and purchaser's interest in a contract for deed, land contract, purchase agreement, or earnest money contract for the sale and purchase of real property, including the rights to payments under such contracts, or any other lien on, or interest in, real property.

 

(f) "Recorded" means recorded in the office of the county recorder or registrar of titles, as appropriate for the real property described in the instrument to be recorded.

 

(g) "State agency" means the Department of Human Services or any successor agency or Direct Care and Treatment or any successor agency.

 

(h) "Transfer on death deed" means a deed authorized under this section.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 75.  Minnesota Statutes 2024, section 611.46, subdivision 1, is amended to read:

 

Subdivision 1.  Order to competency attainment program.  (a) If the court finds the defendant incompetent and the charges have not been dismissed, the court shall order the defendant to participate in a program to assist the defendant in attaining competency.  The court may order participation in a competency attainment program provided outside of a jail, a jail-based competency attainment program, or an alternative program.  The court must determine the least-restrictive program appropriate to meet the defendant's needs and public safety.  In making this determination, the court must consult with the forensic navigator and consider any recommendations of the court examiner.  The court shall not order a defendant to participate in a jail-based program or a state-operated treatment program if the highest criminal charge is a targeted misdemeanor.

 

(b) If the court orders the defendant to a locked treatment facility or jail-based program, the court must calculate the defendant's custody credit and cannot order the defendant to a locked treatment facility or jail-based program for a period that would cause the defendant's custody credit to exceed the maximum sentence for the underlying charge.

 

(c) The court may only order the defendant to participate in competency attainment at an inpatient or residential treatment program under this section if the head of the treatment program determines that admission to the program is clinically appropriate and consents to the defendant's admission.  The court may only order the defendant to participate in competency attainment at a state-operated treatment facility under this section if the Direct Care and Treatment executive board or a designee determines that admission of the defendant is clinically appropriate and consents to the defendant's admission.  The court may require a competency program that qualifies as a locked facility or a state-operated treatment program to notify the court in writing of the basis for refusing consent for admission of the defendant in order to ensure transparency and maintain an accurate record.  The court may not require personal appearance of any representative of a competency program.  The court shall send a written request for notification to the locked facility or state-operated treatment program and the locked facility or state-operated treatment program shall provide a written response to the court within ten days of receipt of the court's request.

 

(d) If the defendant is confined in jail and has not received competency attainment services within 30 days of the finding of incompetency, the court shall review the case with input from the prosecutor and defense counsel and may:

 

(1) order the defendant to participate in an appropriate competency attainment program that takes place outside of a jail;


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(2) order a conditional release of the defendant with conditions that include but are not limited to a requirement that the defendant participate in a competency attainment program when one becomes available and accessible;

 

(3) make a determination as to whether the defendant is likely to attain competency in the reasonably foreseeable future and proceed under section 611.49; or

 

(4) upon a motion, dismiss the charges in the interest of justice.

 

(e) The court may order any hospital, treatment facility, or correctional facility that has provided care or supervision to a defendant in the previous two years to provide copies of the defendant's medical records to the competency attainment program or alternative program in which the defendant was ordered to participate.  This information shall be provided in a consistent and timely manner and pursuant to all applicable laws.

 

(f) If at any time the defendant refuses to participate in a competency attainment program or an alternative program, the head of the program shall notify the court and any entity responsible for supervision of the defendant.

 

(g) At any time, the head of the program may discharge the defendant from the program or facility.  The head of the program must notify the court, prosecutor, defense counsel, and any entity responsible for the supervision of the defendant prior to any planned discharge.  Absent emergency circumstances, this notification shall be made five days prior to the discharge if the defendant is not being discharged to jail or a correctional facility.  Upon the receipt of notification of discharge or upon the request of either party in response to notification of discharge, the court may order that a defendant who is subject to bail or unmet conditions of release be returned to jail upon being discharged from the program or facility.  If the court orders a defendant returned to jail, the court shall notify the parties and head of the program at least one day before the defendant's planned discharge, except in the event of an emergency discharge where one day notice is not possible.  The court must hold a review hearing within seven days of the defendant's return to jail.  The forensic navigator must be given notice of the hearing and be allowed to participate.

 

(h) If the defendant is discharged from the program or facility under emergency circumstances, notification of emergency discharge shall include a description of the emergency circumstances and may include a request for emergency transportation.  The court shall make a determination on a request for emergency transportation within 24 hours.  Nothing in this section prohibits a law enforcement agency from transporting a defendant pursuant to any other authority.

 

(i) If the defendant is ordered to participate in an inpatient or residential competency attainment or alternative program, the program or facility must notify the court, prosecutor, defense counsel, forensic navigator, and any entity responsible for the supervision of the defendant if the defendant is placed on a leave or elopement status from the program and if the defendant returns to the program from a leave or elopement status.

 

(j) Defense counsel, prosecutors, and forensic navigators must have access to information relevant to a defendant's participation and treatment in a competency attainment program or alternative program, including but not limited to discharge planning.

 

Sec. 76.  Minnesota Statutes 2024, section 611.55, is amended by adding a subdivision to read:

 

Subd. 5.  Data access.  Forensic navigators must have access to all data collected, created, or maintained by a competency attainment program or an alternative program regarding a defendant in order for navigators to carry out their duties under this section.  A competency attainment program or alternative program may request a copy of the court order appointing the forensic navigator before disclosing any private information about a defendant.

 

EFFECTIVE DATE.  This section is effective July 1, 2027.


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Sec. 77.  Minnesota Statutes 2024, section 611.57, subdivision 2, is amended to read:

 

Subd. 2.  Membership.  (a) The Certification Advisory Committee consists of the following members:

 

(1) a mental health professional, as defined in section 245I.02, subdivision 27, with community behavioral health experience, appointed by the governor;

 

(2) a board-certified forensic psychiatrist with experience in competency evaluations, providing competency attainment services, or both, appointed by the governor;

 

(3) a board-certified forensic psychologist with experience in competency evaluations, providing competency attainment services, or both, appointed by the governor;

 

(4) the president of the Minnesota Corrections Association or a designee;

 

(5) the Direct Care and Treatment deputy commissioner chief executive officer or a designee;

 

(6) the president of the Minnesota Association of County Social Service Administrators or a designee;

 

(7) the president of the Minnesota Association of Community Mental Health Providers or a designee;

 

(8) the president of the Minnesota Sheriffs' Association or a designee; and

 

(9) the executive director of the National Alliance on Mental Illness Minnesota or a designee.

 

(b) Members of the advisory committee serve without compensation and at the pleasure of the appointing authority.  Vacancies shall be filled by the appointing authority consistent with the qualifications of the vacating member required by this subdivision.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 78.  Minnesota Statutes 2024, section 611.57, subdivision 4, is amended to read:

 

Subd. 4.  Duties.  The Certification Advisory Committee shall consult with the Department of Human Services, the Department of Health, and the Department of Corrections, and Direct Care and Treatment; make recommendations to the Minnesota Competency Attainment Board regarding competency attainment curriculum, certification requirements for competency attainment programs including jail-based programs, and certification of individuals to provide competency attainment services; and provide information and recommendations on other issues relevant to competency attainment as requested by the board.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 79.  Minnesota Statutes 2024, section 624.7131, subdivision 1, is amended to read:

 

Subdivision 1.  Information.  Any person may apply for a transferee permit by providing the following information in writing to the chief of police of an organized full time police department of the municipality in which the person resides or to the county sheriff if there is no such local chief of police:

 

(1) the name, residence, telephone number, and driver's license number or nonqualification certificate number, if any, of the proposed transferee;


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(2) the sex, date of birth, height, weight, and color of eyes, and distinguishing physical characteristics, if any, of the proposed transferee;

 

(3) a statement that the proposed transferee authorizes the release to the local police authority of commitment information about the proposed transferee maintained by the commissioner of human services Direct Care and Treatment executive board, to the extent that the information relates to the proposed transferee's eligibility to possess a pistol or semiautomatic military-style assault weapon under section 624.713, subdivision 1; and

 

(4) a statement by the proposed transferee that the proposed transferee is not prohibited by section 624.713 from possessing a pistol or semiautomatic military-style assault weapon.

 

The statements shall be signed and dated by the person applying for a permit.  At the time of application, the local police authority shall provide the applicant with a dated receipt for the application.  The statement under clause (3) must comply with any applicable requirements of Code of Federal Regulations, title 42, sections 2.31 to 2.35, with respect to consent to disclosure of alcohol or drug abuse patient records.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 80.  Minnesota Statutes 2024, section 624.7131, subdivision 2, is amended to read:

 

Subd. 2.  Investigation.  The chief of police or sheriff shall check criminal histories, records and warrant information relating to the applicant through the Minnesota Crime Information System, the national criminal record repository, and the National Instant Criminal Background Check System.  The chief of police or sheriff shall also make a reasonable effort to check other available state and local record-keeping systems.  The chief of police or sheriff shall obtain commitment information from the commissioner of human services Direct Care and Treatment executive board as provided in section 246C.15.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 81.  Minnesota Statutes 2024, section 624.7132, subdivision 1, is amended to read:

 

Subdivision 1.  Required information.  Except as provided in this section and section 624.7131, every person who agrees to transfer a pistol or semiautomatic military-style assault weapon shall report the following information in writing to the chief of police of the organized full-time police department of the municipality where the proposed transferee resides or to the appropriate county sheriff if there is no such local chief of police:

 

(1) the name, residence, telephone number, and driver's license number or nonqualification certificate number, if any, of the proposed transferee;

 

(2) the sex, date of birth, height, weight, and color of eyes, and distinguishing physical characteristics, if any, of the proposed transferee;

 

(3) a statement that the proposed transferee authorizes the release to the local police authority of commitment information about the proposed transferee maintained by the commissioner of human services Direct Care and Treatment executive board, to the extent that the information relates to the proposed transferee's eligibility to possess a pistol or semiautomatic military-style assault weapon under section 624.713, subdivision 1;

 

(4) a statement by the proposed transferee that the transferee is not prohibited by section 624.713 from possessing a pistol or semiautomatic military-style assault weapon; and

 

(5) the address of the place of business of the transferor.


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The report shall be signed and dated by the transferor and the proposed transferee.  The report shall be delivered by the transferor to the chief of police or sheriff no later than three days after the date of the agreement to transfer, excluding weekends and legal holidays.  The statement under clause (3) must comply with any applicable requirements of Code of Federal Regulations, title 42, sections 2.31 to 2.35, with respect to consent to disclosure of alcohol or drug abuse patient records.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 82.  Minnesota Statutes 2024, section 624.7132, subdivision 2, is amended to read:

 

Subd. 2.  Investigation.  Upon receipt of a transfer report, the chief of police or sheriff shall check criminal histories, records and warrant information relating to the proposed transferee through the Minnesota Crime Information System, the national criminal record repository, and the National Instant Criminal Background Check System.  The chief of police or sheriff shall also make a reasonable effort to check other available state and local record-keeping systems.  The chief of police or sheriff shall obtain commitment information from the commissioner of human services Direct Care and Treatment executive board as provided in section 246C.15.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 83.  Minnesota Statutes 2024, section 624.714, subdivision 3, is amended to read:

 

Subd. 3.  Form and contents of application.  (a) Applications for permits to carry must be an official, standardized application form, adopted under section 624.7151, and must set forth in writing only the following information:

 

(1) the applicant's name, residence, telephone number, if any, and driver's license number or state identification card number;

 

(2) the applicant's sex, date of birth, height, weight, and color of eyes and hair, and distinguishing physical characteristics, if any;

 

(3) the township or statutory city or home rule charter city, and county, of all Minnesota residences of the applicant in the last five years, though not including specific addresses;

 

(4) the township or city, county, and state of all non-Minnesota residences of the applicant in the last five years, though not including specific addresses;

 

(5) a statement that the applicant authorizes the release to the sheriff of commitment information about the applicant maintained by the commissioner of human services Direct Care and Treatment executive board or any similar agency or department of another state where the applicant has resided, to the extent that the information relates to the applicant's eligibility to possess a firearm; and

 

(6) a statement by the applicant that, to the best of the applicant's knowledge and belief, the applicant is not prohibited by law from possessing a firearm.

 

(b) The statement under paragraph (a), clause (5), must comply with any applicable requirements of Code of Federal Regulations, title 42, sections 2.31 to 2.35, with respect to consent to disclosure of alcohol or drug abuse patient records.

 

(c) An applicant must submit to the sheriff an application packet consisting only of the following items:

 

(1) a completed application form, signed and dated by the applicant;


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(2) an accurate photocopy of the certificate described in subdivision 2a, paragraph (c), that is submitted as the applicant's evidence of training in the safe use of a pistol; and

 

(3) an accurate photocopy of the applicant's current driver's license, state identification card, or the photo page of the applicant's passport.

 

(d) In addition to the other application materials, a person who is otherwise ineligible for a permit due to a criminal conviction but who has obtained a pardon or expungement setting aside the conviction, sealing the conviction, or otherwise restoring applicable rights, must submit a copy of the relevant order.

 

(e) Applications must be submitted in person.

 

(f) The sheriff may charge a new application processing fee in an amount not to exceed the actual and reasonable direct cost of processing the application or $100, whichever is less.  Of this amount, $10 must be submitted to the commissioner and deposited into the general fund.

 

(g) This subdivision prescribes the complete and exclusive set of items an applicant is required to submit in order to apply for a new or renewal permit to carry.  The applicant must not be asked or required to submit, voluntarily or involuntarily, any information, fees, or documentation beyond that specifically required by this subdivision.  This paragraph does not apply to alternate training evidence accepted by the sheriff under subdivision 2a, paragraph (d).

 

(h) Forms for new and renewal applications must be available at all sheriffs' offices and the commissioner must make the forms available on the Internet.

 

(i) Application forms must clearly display a notice that a permit, if granted, is void and must be immediately returned to the sheriff if the permit holder is or becomes prohibited by law from possessing a firearm.  The notice must list the applicable state criminal offenses and civil categories that prohibit a person from possessing a firearm.

 

(j) Upon receipt of an application packet and any required fee, the sheriff must provide a signed receipt indicating the date of submission.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 84.  Minnesota Statutes 2024, section 624.714, subdivision 4, is amended to read:

 

Subd. 4.  Investigation.  (a) The sheriff must check, by means of electronic data transfer, criminal records, histories, and warrant information on each applicant through the Minnesota Crime Information System and the National Instant Criminal Background Check System.  The sheriff shall also make a reasonable effort to check other available and relevant federal, state, or local record-keeping systems.  The sheriff must obtain commitment information from the commissioner of human services Direct Care and Treatment executive board as provided in section 246C.15 or, if the information is reasonably available, as provided by a similar statute from another state.

 

(b) When an application for a permit is filed under this section, the sheriff must notify the chief of police, if any, of the municipality where the applicant resides.  The police chief may provide the sheriff with any information relevant to the issuance of the permit.

 

(c) The sheriff must conduct a background check by means of electronic data transfer on a permit holder through the Minnesota Crime Information System and the National Instant Criminal Background Check System at least yearly to ensure continuing eligibility.  The sheriff may also conduct additional background checks by means of electronic data transfer on a permit holder at any time during the period that a permit is in effect.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.


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Sec. 85.  Minnesota Statutes 2024, section 631.40, subdivision 3, is amended to read:

 

Subd. 3.  Direct Care and Treatment and Departments of Human Services; Children, Youth, and Families; and Health licensees.  When a person who is affiliated with a program or facility governed or licensed by Direct Care and Treatment; the Department of Human Services,; the Department of Children, Youth, and Families,; or the Department of Health is convicted of a disqualifying crime, the probation officer or corrections agent shall notify the commissioner of the conviction, as provided in chapter 245C.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 86.  REVISOR INSTRUCTION.

 

(a) The revisor of statutes shall renumber Minnesota Statutes, section 252.50, subdivision 5, as Minnesota Statutes, section 246C.11, subdivision 4a.

 

(b) The revisor of statutes shall renumber Minnesota Statutes, section 252.52, as Minnesota Statutes, section 246C.191.

 

(c) The revisor of statutes shall make necessary cross-reference changes consistent with the renumbering in this section.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 87.  REPEALER.

 

(a) Minnesota Statutes 2024, sections 245.4862; 246.015, subdivision 3; 246.50, subdivision 2; and 246B.04, subdivision 1a, are repealed.

 

(b) Laws 2024, chapter 79, article 1, sections 15; 16; and 17, are repealed.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

ARTICLE 4

BEHAVIORAL HEALTH

 

Section 1.  Minnesota Statutes 2024, section 3.757, subdivision 1, is amended to read:

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the following terms have the meanings given.

 

(b) "Municipality" has the meaning provided in section 466.01, subdivision 1.

 

(c) "Opioid litigation" means any civil litigation, demand, or settlement in lieu of litigation alleging unlawful conduct related to the marketing, sale, or distribution of opioids in this state or other alleged illegal actions that contributed to the excessive use of opioids.

 

(d) "Released claim" means any cause of action or other claim that has been released in a statewide opioid settlement agreement, including matters identified as a released claim as that term or a comparable term is defined in a statewide opioid settlement agreement.

 

(e) "Settling defendant" means an entity that engages in, has engaged in, or has provided consultation services regarding the manufacture, marketing, promotion, sale, distribution, or dispensing of opioids, and that has been the subject of a statewide opioid settlement agreement or bankruptcy plan, including but not limited to Johnson &


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Johnson, AmerisourceBergen Corporation, Cardinal Health, Inc., McKesson Corporation, Teva Pharmaceuticals, Allergan plc, CVS Health Corporation, Walgreens Boots Alliance, Inc., and Walmart, Inc., and Purdue Pharma L. P., as well as related subsidiaries, affiliates, officers, directors, and other related entities specifically named as a released entity in a statewide opioid settlement agreement.

 

(f) "Statewide opioid settlement agreement" means an agreement, including consent judgments, assurances of discontinuance, and related agreements or documents, between the attorney general, on behalf of the state, and a settling defendant, to provide or allocate remuneration for conduct related to the manufacture, marketing, promotion, sale, dispensing, or distribution of opioids in this state or other alleged illegal actions that contributed to the excessive use of opioids.  A statewide opioid settlement agreement includes consent judgments, assurances of discontinuance, and related agreements or documents, that contain structural or payment provisions requiring or anticipating the participation of municipalities and allowing for the allocation of settlement funds between the state and municipalities to be set through a state-specific agreement.

 

Sec. 2.  Minnesota Statutes 2024, section 4.046, subdivision 2, is amended to read:

 

Subd. 2.  Subcabinet membership.  The subcabinet consists of the following members:

 

(1) the commissioner of human services;

 

(2) the commissioner of health;

 

(3) the commissioner of education;

 

(4) the commissioner of public safety;

 

(5) the commissioner of corrections;

 

(6) the commissioner of management and budget;

 

(7) the commissioner of higher education;

 

(8) the commissioner of children, youth, and families;

 

(9) the chief executive officer of direct care and treatment;

 

(10) the commissioner of commerce;

 

(11) the director of the Office of Cannabis Management;

 

(8) (12) the chair of the Interagency Council on Homelessness; and

 

(9) (13) the governor's director of addiction and recovery, who shall serve as chair of the subcabinet.

 

Sec. 3.  Minnesota Statutes 2024, section 4.046, subdivision 3, is amended to read:

 

Subd. 3.  Policy and strategy development.  The subcabinet must engage in the following duties related to the development of opioid use, substance use, and addiction policy and strategy:

 

(1) identify challenges and opportunities that exist relating to accessing treatment and support services and develop recommendations to overcome these barriers for all Minnesotans;


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(2) with input from affected communities, develop policies and strategies that will reduce barriers and gaps in service for all Minnesotans seeking treatment for opioid or substance use disorder, particularly for those Minnesotans who are members of communities disproportionately impacted by substance use and addiction;

 

(3) develop policies and strategies that the state may adopt to expand Minnesota's recovery infrastructure, including detoxification or withdrawal management facilities, treatment facilities, and sober housing;

 

(4) identify innovative services and strategies for effective treatment and support;

 

(5) develop policies and strategies to expand services and support for people in Minnesota suffering from opioid or substance use disorder through partnership with the Opioid Epidemic Response Advisory Council and other relevant partnerships;

 

(6) develop policies and strategies for agencies to manage addiction and the relationship it has with co-occurring conditions;

 

(7) identify policies and strategies to address opioid or substance use disorder among Minnesotans experiencing homelessness; and

 

(8) submit recommendations to the legislature addressing opioid use, substance use, and addiction in Minnesota.; and

 

(9) develop and publish a comprehensive substance use and addiction plan for the state.  The plan must establish goals and priorities for a comprehensive continuum of care for substance misuse and substance use disorder for Minnesota.  All state agencies' operating programs related to substance use prevention, harm reduction, treatment, or recovery or that are administering state or federal funds for those programs shall set program goals and priorities in accordance with the state plan.  Each state agency shall submit its relevant plans and budgets to the subcabinet for review upon request.

 

Sec. 4.  Minnesota Statutes 2024, section 144.651, subdivision 2, is amended to read:

 

Subd. 2.  Definitions.  For the purposes of this section, "patient" means a person who is admitted to an acute care inpatient facility for a continuous period longer than 24 hours, for the purpose of diagnosis or treatment bearing on the physical or mental health of that person.  For purposes of subdivisions 4 to 9, 12, 13, 15, 16, and 18 to 20, "patient" also means a person who receives health care services at an outpatient surgical center or at a birth center licensed under section 144.615.  "Patient" also means a minor who is admitted to a residential program as defined in section 253C.01.  For purposes of subdivisions 1, 3 to 16, 18, 20 and 30, "patient" also means any person who is receiving mental health treatment on an outpatient basis or in a community support program or other community‑based program.  "Resident" means a person who is admitted to a nonacute care facility including extended care facilities, nursing homes, and boarding care homes for care required because of prolonged mental or physical illness or disability, recovery from injury or disease, or advancing age.  For purposes of all subdivisions except subdivisions 28 and 29, "resident" also means a person who is admitted to a facility licensed as a board and lodging facility under Minnesota Rules, parts 4625.0100 to 4625.2355, a boarding care home under sections 144.50 to 144.56, or a supervised living facility under Minnesota Rules, parts 4665.0100 to 4665.9900, and which operates a rehabilitation program licensed under chapter 245G or 245I, or Minnesota Rules, parts 9530.6510 to 9530.6590.  For purposes of all subdivisions except subdivisions 20, 28, 29, 32, and 33, "resident" also means a person who is admitted to a facility licensed to provide intensive residential treatment services or residential crisis stabilization under section 245I.23.


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Sec. 5.  Minnesota Statutes 2024, section 169A.284, is amended to read:

 

169A.284 CHEMICAL DEPENDENCY COMPREHENSIVE ASSESSMENT CHARGE; SURCHARGE.

 

Subdivision 1.  When required.  (a) When a court sentences a person convicted of an offense enumerated in section 169A.70, subdivision 2 (chemical use substance use disorder assessment; requirement; form), except as provided in paragraph (c), it shall order the person to pay the cost of the substance use disorder assessment directly to the entity conducting the assessment or providing the assessment services in an amount determined by the entity conducting or providing the service and shall impose a chemical dependency substance use disorder assessment charge of $25.  The court may waive the $25 substance use disorder assessment charge, but may not waive the cost for the assessment paid directly to the entity conducting the assessment or providing assessment services.  A person shall pay an additional surcharge of $5 if the person is convicted of a violation of section 169A.20 (driving while impaired) within five years of a prior impaired driving conviction or a prior conviction for an offense arising out of an arrest for a violation of section 169A.20 or Minnesota Statutes 1998, section 169.121 (driver under influence of alcohol or controlled substance) or 169.129 (aggravated DWI-related violations; penalty).  This section applies when the sentence is executed, stayed, or suspended.  The court may not waive payment of or authorize payment in installments of the substance use disorder assessment charge and surcharge in installments unless it makes written findings on the record that the convicted person is indigent or that the substance use disorder assessment charge and surcharge would create undue hardship for the convicted person or that person's immediate family.

 

(b) The chemical dependency substance use disorder assessment charge and surcharge required under this section are in addition to the surcharge required by section 357.021, subdivision 6 (surcharges on criminal and traffic offenders).

 

(c) The court must not order the person convicted of an offense enumerated in section 169A.70, subdivision 2, to pay the cost of the substance use disorder assessment if the individual is eligible for payment of the assessment under chapter 254B or 256B.

 

Subd. 2.  Distribution of money.  The court administrator shall collect and forward the chemical dependency substance use disorder assessment charge and the $5 surcharge, if any, to the commissioner of management and budget to be deposited in the state treasury and credited to the general fund.

 

Sec. 6.  Minnesota Statutes 2024, section 245.462, 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 section 245.4711.

 

(b) A case manager must:

 

(1) be skilled in the process of identifying and assessing a wide range of client needs;

 

(2) be knowledgeable about local community resources and how to use those resources for the benefit of the client;

 

(3) be a mental health practitioner as defined in section 245I.04, subdivision 4, or have a bachelor's degree in one of the behavioral sciences or related fields including, but not limited to, social work, psychology, or nursing from an accredited college or university.  A case manager who is not a mental health practitioner and or who does not have a bachelor's degree in one of the behavioral sciences or related fields must meet the requirements of paragraph (c); and


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(4) meet the supervision and continuing education requirements described in paragraphs (d), (e), and (f), as applicable.

 

(c) Case managers without a bachelor's degree or with 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 (3) (5):

 

(1) have three or four years of experience as a case manager associate as defined in this section;

 

(2) be a registered nurse without a bachelor's degree and have 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; or

 

(3) be a person who qualified as a case manager under the 1998 Department of Human Service waiver provision and meet the continuing education 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 adults with serious and persistent mental illness that is consistent with national practice standards; or

 

(5) prior to direct service delivery, demonstrate competency in practice and knowledge of the characteristics and needs of adults with serious and persistent mental illness, consistent with national practice standards.

 

(d) A case manager with at least 2,000 hours of supervised experience in the delivery of services to adults with mental illness 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 remaining 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.  Clinical supervision must be documented in the client record.

 

(e) A case manager without 2,000 hours of supervised experience in the delivery of services to adults with mental illness must:

 

(1) receive clinical supervision regarding individual service delivery from a mental health professional at least one hour per week until the requirement of 2,000 hours of experience is met; and

 

(2) complete 40 hours of training approved by the commissioner in case management skills and the characteristics and needs of adults with serious and persistent mental illness.

 

(f) 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 mental illness and mental health services every two years.

 

(g) 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;


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(ii) be a certified peer specialist under section 256B.0615;

 

(iii) be a registered nurse without a bachelor's degree;

 

(iv) within the previous ten years, have three years of life experience with serious and persistent mental illness as defined in subdivision 20; or as a child had severe emotional disturbance as defined in section 245.4871, subdivision 6; or have three years life experience as a primary caregiver to an adult with serious and persistent mental illness within the previous ten years;

 

(v) have 6,000 hours work experience as a nondegreed state hospital technician; or

 

(vi) have at least 6,000 hours of supervised experience in the delivery of services to persons with mental illness.

 

Individuals meeting one of the criteria in items (i) to (v) may qualify as a case manager after four years of supervised work experience as a case manager associate.  Individuals meeting the criteria in item (vi) may qualify as a case manager after three years of supervised experience as a case manager associate.

 

(h) A case management associate must meet the following supervision, mentoring, and continuing education requirements:

 

(1) have 40 hours of preservice training described under paragraph (e), clause (2);

 

(2) receive at least 40 hours of annual continuing education in mental illness and mental health services annually; and according to the following schedule, based on years of service as a case management associate:

 

(i) at least 40 hours in the first year;

 

(ii) at least 30 hours in the second year;

 

(iii) at least 20 hours in the third year; and

 

(iv) at least 20 hours in the fourth year; and

 

(3) receive at least five four hours of mentoring supervision per week month from a case management mentor supervisor.

 

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.

 

(i) A case management supervisor must meet the criteria for mental health professionals, as specified in subdivision 18.

 

(j) An immigrant who does not have the qualifications specified in this subdivision may provide case management services to adult immigrants with serious and persistent mental illness who are members of the same ethnic group as the case manager if the person:


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(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 a related field including, but not limited to, social work, psychology, or nursing from 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 this subdivision are met.

 

Sec. 7.  Minnesota Statutes 2024, section 245.4661, subdivision 9, is amended to read:

 

Subd. 9.  Services and programs.  (a) The following three distinct grant programs are funded 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 are eligible for grant funds:

 

(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);


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(16) adult day treatment;

 

(17) partial hospitalization;

 

(18) adult residential treatment;

 

(19) adult mental health targeted case management; and

 

(20) transportation.

 

Sec. 8.  Minnesota Statutes 2024, section 245.469, is amended to read:

 

245.469 EMERGENCY SERVICES.

 

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.  Emergency service providers must not delay the timely provision of emergency services to a client because of the unwillingness or inability of the client to pay for services 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.

 

Subd. 2.  Specific requirements.  (a) The county board shall require that all service providers of emergency services to adults or children with mental illness provide immediate direct access to a mental health professional during regular business hours.  For evenings, weekends, and holidays, the service may be by direct toll-free telephone access to a mental health professional, clinical trainee, or mental health practitioner.

 

(b) The commissioner may waive the requirement in paragraph (a) that the evening, weekend, and holiday service be provided by a mental health professional, clinical trainee, or mental health practitioner if the county documents that:

 

(1) mental health professionals, clinical trainees, or mental health practitioners are unavailable to provide this service;

 

(2) services are provided by a designated person with training in human services who receives treatment supervision from a mental health professional; and


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(3) the service provider is not also the provider of fire and public safety emergency services.

 

(c) The commissioner may waive the requirement in paragraph (b), clause (3), that the evening, weekend, and holiday service not be provided by the provider of fire and public safety emergency services if:

 

(1) every person who will be providing the first telephone contact has received at least eight hours of training on emergency mental health services approved by the commissioner;

 

(2) every person who will be providing the first telephone contact will annually receive at least four hours of continued training on emergency mental health services approved by the commissioner;

 

(3) the local social service agency has provided public education about available emergency mental health services and can assure potential users of emergency services that their calls will be handled appropriately;

 

(4) the local social service agency agrees to provide the commissioner with accurate data on the number of emergency mental health service calls received;

 

(5) the local social service agency agrees to monitor the frequency and quality of emergency services; and

 

(6) the local social service agency describes how it will comply with paragraph (d).

 

(d) Whenever emergency service during nonbusiness hours is provided by anyone other than a mental health professional, a mental health professional must be available on call for an emergency assessment and crisis intervention services, and must be available for at least telephone consultation within 30 minutes.

 

Subd. 3.  Mental health crisis services.  The commissioner of human services shall increase access to mental health crisis services for children and adults.  In order to increase access, the commissioner must:

 

(1) develop a central phone number where calls can be routed to the appropriate crisis services promote the 988 Lifeline;

 

(2) provide telephone consultation 24 hours a day to mobile crisis teams who are serving people with traumatic brain injury or intellectual disabilities who are experiencing a mental health crisis;

 

(3) expand crisis services across the state, including rural areas of the state and examining access per population;

 

(4) establish and implement state standards and requirements for crisis services as outlined in section 256B.0624; and

 

(5) provide grants to adult mental health initiatives, counties, tribes, or community mental health providers to establish new mental health crisis residential service capacity.

 

Priority will be given to regions that do not have a mental health crisis residential services program, do not have an inpatient psychiatric unit within the region, do not have an inpatient psychiatric unit within 90 miles, or have a demonstrated need based on the number of crisis residential or intensive residential treatment beds available to meet the needs of the residents in the region.  At least 50 percent of the funds must be distributed to programs in rural Minnesota.  Grant funds may be used for start-up costs, including but not limited to renovations, furnishings, and staff training.  Grant applications shall provide details on how the intended service will address identified needs and shall demonstrate collaboration with crisis teams, other mental health providers, hospitals, and police.


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Sec. 9.  Minnesota Statutes 2024, section 245.481, is amended to read:

 

245.481 FEES FOR MENTAL HEALTH SERVICES.

 

A client or, in the case of a child, the child or the child's parent may be required to pay a fee for mental health services provided under sections 245.461 to 245.4682, 245.470 to 245.486, and 245.487 to 245.4889.  The fee must be based on the person's ability to pay according to the fee schedule adopted by the county board.  In adopting the fee schedule for mental health services, the county board may adopt the fee schedule provided by the commissioner or adopt a fee schedule recommended by the county board and approved by the commissioner.  Agencies or individuals under contract with a county board to provide mental health services under sections 245.461 to 245.486 and 245.487 to 245.4889 must not charge clients whose mental health services are paid wholly or in part from public funds fees which exceed the county board's adopted fee schedule.  This section does not apply to regional treatment center fees, which are governed by sections 246.50 to 246.55.

 

Sec. 10.  Minnesota Statutes 2024, 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 severe emotional disturbance 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 without 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 (3) (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; or

 

(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.;


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(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.

 

(f) A case manager without 2,000 hours of supervised experience in the delivery of mental health services to children with emotional disturbance must:

 

(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 severe emotional disturbance 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 severe emotional disturbance 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 emotional disturbance as defined in subdivision 6 within the previous ten years;

 

(iv) have 6,000 hours work experience as a nondegreed state hospital technician; or


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(v) have 6,000 hours of supervised work experience in the delivery of mental health services to children with emotional disturbances; hours worked as a mental health behavioral aide I or II under section 256B.0943, subdivision 7, 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 severe emotional disturbance 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 severe emotional disturbance 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.

 

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

 

Sec. 11.  Minnesota Statutes 2024, section 245.4871, is amended by adding a subdivision to read:

 

Subd. 7a.  Clinical supervision.  "Clinical supervision" means the oversight responsibility for individual treatment plans and individual mental health service delivery, including oversight provided by the case manager.  Clinical supervision must be provided by a mental health professional.  The supervising mental health professional must cosign an individual treatment plan and the mental health professional's name must be documented in the client's record.

 

Sec. 12.  Minnesota Statutes 2024, section 245.4871, subdivision 31, is amended to read:

 

Subd. 31.  Professional home-based family treatment.  (a) "Professional home-based family treatment" means intensive mental health services provided to children because of an emotional disturbance mental illness:  (1) who are at risk of out-of-home placement residential treatment or therapeutic foster care; (2) who are in out-of-home placement residential treatment or therapeutic foster care; or (3) who are returning from out-of-home placement residential treatment or therapeutic foster care.


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(b)
Services are provided to the child and the child's family primarily in the child's home environment.  Services may also be provided in the child's school, child care setting, or other community setting appropriate to the child.  Services must be provided on an individual family basis, must be child-oriented and family-oriented, and must be designed using information from diagnostic and functional assessments to meet the specific mental health needs of the child and the child's family.  Services must be coordinated with other services provided to the child and the child's family.

 

(c) Examples of services are:  (1) individual therapy; (2) family therapy; (3) client outreach; (4) assistance in developing individual living skills; (5) assistance in developing parenting skills necessary to address the needs of the child; (6) assistance with leisure and recreational services; (7) crisis planning, including crisis respite care and arranging for crisis placement; and (8) assistance in locating respite and child care.  Services must be coordinated with other services provided to the child and family.

 

Sec. 13.  Minnesota Statutes 2024, section 245.4874, subdivision 1, is amended to read:

 

Subdivision 1.  Duties of county board.  (a) The county board must:

 

(1) develop a system of affordable and locally available children's mental health services according to sections 245.487 to 245.4889;

 

(2) consider the assessment of unmet needs in the county as reported by the local children's mental health advisory council under section 245.4875, subdivision 5, paragraph (b), clause (3).  The county shall provide, upon request of the local children's mental health advisory council, readily available data to assist in the determination of unmet needs;

 

(3) assure that parents and providers in the county receive information about how to gain access to services provided according to sections 245.487 to 245.4889;

 

(4) coordinate the delivery of children's mental health services with services provided by social services, education, corrections, health, and vocational agencies to improve the availability of mental health services to children and the cost-effectiveness of their delivery;

 

(5) assure that mental health services delivered according to sections 245.487 to 245.4889 are delivered expeditiously and are appropriate to the child's diagnostic assessment and individual treatment plan;

 

(6) provide for case management services to each child with severe emotional disturbance serious mental illness according to sections 245.486; 245.4871, subdivisions 3 and 4; and 245.4881, subdivisions 1, 3, and 5;

 

(7) provide for screening of each child under section 245.4885 upon admission to a residential treatment facility, acute care hospital inpatient treatment, or informal admission to a regional treatment center;

 

(8) prudently administer grants and purchase-of-service contracts that the county board determines are necessary to fulfill its responsibilities under sections 245.487 to 245.4889;

 

(9) assure that mental health professionals, mental health practitioners, and case managers employed by or under contract to the county to provide mental health services are qualified under section 245.4871;

 

(10) assure that children's mental health services are coordinated with adult mental health services specified in sections 245.461 to 245.486 so that a continuum of mental health services is available to serve persons with mental illness, regardless of the person's age;


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(11) assure that culturally competent mental health consultants are used as necessary to assist the county board in assessing and providing appropriate treatment for children of cultural or racial minority heritage; and

 

(12) consistent with section 245.486, arrange for or provide a children's mental health screening for:

 

(i) a child receiving child protective services;

 

(ii) a child in out-of-home placement residential treatment or therapeutic foster care;

 

(iii) a child for whom parental rights have been terminated;

 

(iv) a child found to be delinquent; or

 

(v) a child found to have committed a juvenile petty offense for the third or subsequent time.

 

A children's mental health screening is not required when a screening or diagnostic assessment has been performed within the previous 180 days, or the child is currently under the care of a mental health professional.

 

(b) When a child is receiving protective services or is in out-of-home placement residential treatment or foster care, the court or county agency must notify a parent or guardian whose parental rights have not been terminated of the potential mental health screening and the option to prevent the screening by notifying the court or county agency in writing.

 

(c) When a child is found to be delinquent or a child is found to have committed a juvenile petty offense for the third or subsequent time, the court or county agency must obtain written informed consent from the parent or legal guardian before a screening is conducted unless the court, notwithstanding the parent's failure to consent, determines that the screening is in the child's best interest.

 

(d) The screening shall be conducted with a screening instrument approved by the commissioner of human services according to criteria that are updated and issued annually to ensure that approved screening instruments are valid and useful for child welfare and juvenile justice populations.  Screenings shall be conducted by a mental health practitioner as defined in section 245.4871, subdivision 26, or a probation officer or local social services agency staff person who is trained in the use of the screening instrument.  Training in the use of the instrument shall include:

 

(1) training in the administration of the instrument;

 

(2) the interpretation of its validity given the child's current circumstances;

 

(3) the state and federal data practices laws and confidentiality standards;

 

(4) the parental consent requirement; and

 

(5) providing respect for families and cultural values.

 

If the screen indicates a need for assessment, the child's family, or if the family lacks mental health insurance, the local social services agency, in consultation with the child's family, shall have conducted a diagnostic assessment, including a functional assessment.  The administration of the screening shall safeguard the privacy of children receiving the screening and their families and shall comply with the Minnesota Government Data Practices Act, chapter 13, and the federal Health Insurance Portability and Accountability Act of 1996, Public Law 104-191. 


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Screening results are classified as private data on individuals, as defined by section 13.02, subdivision 12.  The county board or Tribal nation may provide the commissioner with access to the screening results for the purposes of program evaluation and improvement.

 

(e) When the county board refers clients to providers of children's therapeutic services and supports under section 256B.0943, the county board must clearly identify the desired services components not covered under section 256B.0943 and identify the reimbursement source for those requested services, the method of payment, and the payment rate to the provider.

 

Sec. 14.  Minnesota Statutes 2024, section 245.4881, subdivision 3, is amended to read:

 

Subd. 3.  Duties of case manager.  (a) Upon a determination of eligibility for case management services, the case manager shall develop an individual family community support plan for a child as specified in subdivision 4, review the child's progress, and monitor the provision of services, and, if the child and the child's parent or legal guardian consent, complete a written functional assessment as defined in section 245.4871, subdivision 18a.  If services are to be provided in a host county that is not the county of financial responsibility, the case manager shall consult with the host county and obtain a letter demonstrating the concurrence of the host county regarding the provision of services.

 

(b) The case manager shall note in the child's record the services needed by the child and the child's family, the services requested by the family, services that are not available, and the unmet needs of the child and child's family.  The case manager shall note this provision in the child's record.

 

Sec. 15.  Minnesota Statutes 2024, section 245.4901, subdivision 3, is amended to read:

 

Subd. 3.  Allowable grant activities and related expenses.  (a) Allowable grant activities and related expenses may include but are not limited to:

 

(1) identifying and diagnosing mental health conditions and substance use disorders of students;

 

(2) delivering mental health and substance use disorder treatment and services to students and their families, including via telehealth consistent with section 256B.0625, subdivision 3b;

 

(3) supporting families in meeting their child's needs, including accessing needed mental health services to support the child's parent in caregiving and navigating health care, social service, and juvenile justice systems;

 

(4) providing transportation for students receiving school-linked behavioral health services when school is not in session;

 

(5) building the capacity of schools to meet the needs of students with mental health and substance use disorder concerns, including school staff development activities for licensed and nonlicensed staff; and

 

(6) purchasing equipment, connection charges, on-site coordination, set-up fees, and site fees in order to deliver school-linked behavioral health services via telehealth.

 

(b) Grantees shall obtain all available third-party reimbursement sources as a condition of receiving a grant.  For purposes of this grant program, a third-party reimbursement source excludes a public school as defined in section 120A.20, subdivision 1.  Grantees shall serve students regardless of health coverage status or ability to pay.


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Sec. 16.  [245.4904] INTERMEDIATE SCHOOL DISTRICT BEHAVIORAL HEALTH GRANT PROGRAM.

 

Subdivision 1.  Establishment.  The commissioner of human services must establish a grant program to improve behavioral health outcomes for youth attending a qualifying school unit and to build the capacity of schools to support student and teacher needs in the classroom.  For purposes of this section, "qualifying school unit" means an intermediate school district organized under section 136D.01.

 

Subd. 2.  Eligible applicants.  An eligible applicant is an intermediate school district organized under section 136D.01, and a partner entity or provider that has demonstrated capacity to serve the youth identified in subdivision 1 that 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;

 

(5) enrolled in medical assistance as a mental health or substance use disorder provider agency and employs at least two full-time equivalent mental health professionals qualified according to section 245I.04, subdivision 2, or two alcohol and drug counselors licensed or exempt from licensure under chapter 148F who are qualified to provide clinical services to children and families;

 

(6) licensed under chapter 245G and in compliance with the applicable requirements in chapters 245A, 245C, and 260E; section 626.557; and Minnesota Rules, chapter 9544; or

 

(7) a licensed professional in private practice as defined in section 245G.01, subdivision 17, who meets the requirements of section 254B.05, subdivision 1, paragraph (b).

 

Subd. 3.  Allowable grant activities and related expenses.  (a) Allowable grant activities and related expenses include but are not limited to:

 

(1) identifying mental health conditions and substance use disorders of students;

 

(2) delivering mental health and substance use disorder treatment and supportive services to students and their families within the classroom, including via telehealth consistent with section 256B.0625, subdivision 3b;

 

(3) delivering therapeutic interventions and customizing an array of supplementary learning experiences for students;

 

(4) supporting families in meeting their child's needs, including navigating health care, social service, and juvenile justice systems;

 

(5) providing transportation for students receiving behavioral health services when school is not in session;

 

(6) building the capacity of schools to meet the needs of students with mental health and substance use disorder concerns, including school staff development activities for licensed and nonlicensed staff; and


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(7) purchasing equipment, connection charges, on-site coordination, set-up fees, and site fees in order to deliver school-linked behavioral health services via telehealth.

 

(b) Grantees must obtain all available third-party reimbursement sources as a condition of receiving grant funds.  For purposes of this grant program, a third-party reimbursement source does not include a public school as defined in section 120A.20, subdivision 1.  Grantees shall serve students regardless of health coverage status or ability to pay.

 

Subd. 4.  Calculating the share of the appropriation.  (a) Grants must be awarded to qualifying school units proportionately.

 

(b) The commissioner must calculate the share of the appropriation to be used in each qualifying school unit by multiplying the total appropriation going to the grantees by the qualifying school unit's average daily membership in a setting of federal instructional level 4 or higher and then dividing by the total average daily membership in a setting of federal instructional level 4 or higher for the same year for all qualifying school units.

 

Subd. 5.  Data collection and outcome measurement.  Grantees must provide data to the commissioner for the purpose of evaluating the Intermediate School District Behavioral Health Innovation grant program.  The commissioner must consult with grantees to develop outcome measures for program capacity and performance.

 

Sec. 17.  Minnesota Statutes 2024, section 245.4907, subdivision 3, is amended to read:

 

Subd. 3.  Allowable grant activities.  Grantees must use grant funding to provide training for mental health certified family peer specialists specialist candidates and continuing education to certified family peer specialists as specified in section 256B.0616, subdivision 5.

 

Sec. 18.  Minnesota Statutes 2024, section 245.50, subdivision 3, is amended to read:

 

Subd. 3.  Exceptions.  A contract may not be entered into under this section for services to persons who:

 

(1) are serving a sentence after conviction of a criminal offense;

 

(2) are on probation or parole;

 

(3) (2) are the subject of a presentence investigation; or

 

(4) (3) have been committed involuntarily in Minnesota under chapter 253B for treatment of mental illness or chemical dependency, except as provided under subdivision 5.

 

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

 

Sec. 19.  Minnesota Statutes 2024, section 245.50, is amended by adding a subdivision to read:

 

Subd. 6.  Contract notice.  A Minnesota mental health, chemical health, or detoxification agency or facility entering into a contract with a bordering state under this section must, within 30 days of the contract's effective date, provide the commissioner of human services with a copy of the contract.  If the contract is amended, the agency or facility must provide the commissioner with a copy of each amendment within 30 days of the amendment's effective date.

 

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


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Sec. 20.  Minnesota Statutes 2024, section 245F.06, subdivision 2, is amended to read:

 

Subd. 2.  Comprehensive assessment.  (a) Prior to a medically stable discharge, but not later than 72 hours following admission, a license holder must provide a comprehensive assessment according to sections 245.4863, paragraph (a), and 245G.05, for each patient who has a positive screening for a substance use disorder.  If a patient's medical condition prevents a comprehensive assessment from being completed within 72 hours, the license holder must document why the assessment was not completed.  The comprehensive assessment must include documentation of the appropriateness of an involuntary referral through the civil commitment process.

 

(b) If available to the program, a patient's previous comprehensive assessment may be used in the patient record.  If a previously completed comprehensive assessment is used, its contents must be reviewed to ensure the assessment is accurate and current and complies with the requirements of this chapter.  The review must be completed by a staff person qualified according to section 245G.11, subdivision 5 245G.05, subdivision 1.  The license holder must document that the review was completed and that the previously completed assessment is accurate and current, or the license holder must complete an updated or new assessment.

 

Sec. 21.  Minnesota Statutes 2024, section 245G.05, subdivision 1, is amended to read:

 

Subdivision 1.  Comprehensive assessment.  (a) A comprehensive assessment of the client's substance use disorder must be administered face-to-face by an alcohol and drug counselor within five calendar days from the day of service initiation for a residential program or by the end of the fifth day on which a treatment service is provided in a nonresidential program.  The number of days to complete the comprehensive assessment excludes the day of service initiation.

 

(b) A comprehensive assessment must be administered by:

 

(1) an alcohol and drug counselor;

 

(2) a mental health professional who meets the qualifications under section 245I.04, subdivision 2, practices within the scope of their professional licensure, and has at least 12 hours of training in substance use disorder and treatment;

 

(3) a clinical trainee who meets the qualifications under section 245I.04, subdivision 6, practicing under the supervision of a mental health professional who meets the requirements of clause (2); or

 

(4) an advanced practice registered nurse as defined in section 148.171, subdivision 3, who practices within the scope of their professional licensure and has at least 12 hours of training in substance use disorder and treatment.

 

(c) If the comprehensive assessment is not completed within the required time frame, the person-centered reason for the delay and the planned completion date must be documented in the client's file.  The comprehensive assessment is complete upon a qualified staff member's dated signature.  If the client received a comprehensive assessment that authorized the treatment service, an alcohol and drug counselor a staff member qualified under paragraph (b) may use the comprehensive assessment for requirements of this subdivision but must document a review of the comprehensive assessment and update the comprehensive assessment as clinically necessary to ensure compliance with this subdivision within applicable timelines.  An alcohol and drug counselor A staff member qualified under paragraph (b) must sign and date the comprehensive assessment review and update.


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Sec. 22.  Minnesota Statutes 2024, 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;

 

(2) is knowledgeable about local community resources and how to use those resources for the benefit of the client;

 

(3) has successfully completed 30 15 hours of classroom instruction on treatment education or training on substance use disorder, co-occurring conditions, and care coordination for an individual individuals with substance use disorder or co-occurring conditions that is consistent with national evidence-based standards;

 

(4) has either meets one of the following criteria:

 

(i) has a bachelor's degree in one of the behavioral sciences or related fields; or

 

(ii) current certification as an alcohol and drug counselor, level I, by the Upper Midwest Indian Council on Addictive Disorders; and has a high school diploma or equivalent; or

 

(iii) 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.

 

(5) has at least 2,000 hours of supervised experience working with individuals with substance use disorder.

 

(b) A treatment coordinator must receive at least one hour of supervision regarding individual service delivery from an alcohol and drug counselor, or a mental health professional who has substance use treatment and assessments within the scope of their practice, on a monthly basis.  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.

 

Sec. 23.  Minnesota Statutes 2024, section 245I.05, subdivision 3, is amended to read:

 

Subd. 3.  Initial training.  (a) A staff person must receive training about:

 

(1) vulnerable adult maltreatment under section 245A.65, subdivision 3; and

 

(2) the maltreatment of minor reporting requirements and definitions in chapter 260E within 72 hours of first providing direct contact services to a client.


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(b) Before providing direct contact services to a client, a staff person must receive training about:

 

(1) client rights and protections under section 245I.12;

 

(2) the Minnesota Health Records Act, including client confidentiality, family engagement under section 144.294, and client privacy;

 

(3) emergency procedures that the staff person must follow when responding to a fire, inclement weather, a report of a missing person, and a behavioral or medical emergency;

 

(4) specific activities and job functions for which the staff person is responsible, including the license holder's program policies and procedures applicable to the staff person's position;

 

(5) professional boundaries that the staff person must maintain; and

 

(6) specific needs of each client to whom the staff person will be providing direct contact services, including each client's developmental status, cognitive functioning, and physical and mental abilities.

 

(c) Before providing direct contact services to a client, a mental health rehabilitation worker, mental health behavioral aide, or mental health practitioner required to receive the training according to section 245I.04, subdivision 4, must receive 30 hours of training about:

 

(1) mental illnesses;

 

(2) client recovery and resiliency;

 

(3) mental health de-escalation techniques;

 

(4) co-occurring mental illness and substance use disorders; and

 

(5) psychotropic medications and medication side effects, including tardive dyskinesia.

 

(d) Within 90 days of first providing direct contact services to an adult client, mental health practitioner, mental health certified peer specialist, or mental health rehabilitation worker must receive training about:

 

(1) trauma-informed care and secondary trauma;

 

(2) person-centered individual treatment plans, including seeking partnerships with family and other natural supports;

 

(3) co-occurring substance use disorders; and

 

(4) culturally responsive treatment practices.

 

(e) Within 90 days of first providing direct contact services to a child client, mental health practitioner, mental health certified family peer specialist, mental health certified peer specialist, or mental health behavioral aide must receive training about the topics in clauses (1) to (5).  This training must address the developmental characteristics of each child served by the license holder and address the needs of each child in the context of the child's family, support system, and culture.  Training topics must include:

 

(1) trauma-informed care and secondary trauma, including adverse childhood experiences (ACEs);


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(2) family-centered treatment plan development, including seeking partnership with a child client's family and other natural supports;

 

(3) mental illness and co-occurring substance use disorders in family systems;

 

(4) culturally responsive treatment practices; and

 

(5) child development, including cognitive functioning, and physical and mental abilities.

 

(f) For a mental health behavioral aide, the training under paragraph (e) must include parent team training using a curriculum approved by the commissioner.

 

Sec. 24.  Minnesota Statutes 2024, section 245I.05, subdivision 5, is amended to read:

 

Subd. 5.  Additional training for medication administration.  (a) Prior to administering medications to a client under delegated authority or observing a client self-administer medications, a staff person who is not a licensed prescriber, registered nurse, or licensed practical nurse qualified under section 148.171, subdivision 8, must receive training about psychotropic medications, side effects including tardive dyskinesia, and medication management.

 

(b) Prior to administering medications to a client under delegated authority, a staff person must successfully complete a:

 

(1) medication administration training program for unlicensed personnel through an accredited Minnesota postsecondary educational institution with completion of the course documented in writing and placed in the staff person's personnel file; or

 

(2) formalized training program taught by a registered nurse or licensed prescriber that is offered by the license holder.  A staff person's successful completion of the formalized training program must include direct observation of the staff person to determine the staff person's areas of competency.

 

Sec. 25.  Minnesota Statutes 2024, section 245I.06, subdivision 3, is amended to read:

 

Subd. 3.  Treatment supervision and direct observation of mental health rehabilitation workers and mental health behavioral aides.  (a) A mental health behavioral aide or a mental health rehabilitation worker must receive direct observation from a mental health professional, clinical trainee, certified rehabilitation specialist, or mental health practitioner while the mental health behavioral aide or mental health rehabilitation worker provides treatment services to clients, no less than twice per month for the first six months of employment and once per month thereafter.  The staff person performing the direct observation must approve of the progress note for the observed treatment service twice per month for the first six months of employment and as needed and identified in a supervision plan thereafter.  Approval may be given through an attestation that is stored in the employee file.

 

(b) For a mental health rehabilitation worker qualified under section 245I.04, subdivision 14, paragraph (a), clause (2), item (i), treatment supervision in the first 2,000 hours of work must at a minimum consist of:

 

(1) monthly individual supervision; and

 

(2) direct observation twice per month.


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Sec. 26.  Minnesota Statutes 2024, section 245I.11, subdivision 5, is amended to read:

 

Subd. 5.  Medication administration in residential programs.  If a license holder is licensed as a residential program, the license holder must:

 

(1) assess and document each client's ability to self-administer medication.  In the assessment, the license holder must evaluate the client's ability to:  (i) comply with prescribed medication regimens; and (ii) store the client's medications safely and in a manner that protects other individuals in the facility.  Through the assessment process, the license holder must assist the client in developing the skills necessary to safely self-administer medication;

 

(2) monitor the effectiveness of medications, side effects of medications, and adverse reactions to medications, including symptoms and signs of tardive dyskinesia, for each client.  The license holder must address and document any concerns about a client's medications;

 

(3) ensure that no staff person or client gives a legend drug supply for one client to another client;

 

(4) have policies and procedures for:  (i) keeping a record of each client's medication orders; (ii) keeping a record of any incident of deferring a client's medications; (iii) documenting any incident when a client's medication is omitted; and (iv) documenting when a client refuses to take medications as prescribed; and

 

(5) document and track medication errors, document whether the license holder notified anyone about the medication error, determine if the license holder must take any follow-up actions, and identify the staff persons who are responsible for taking follow-up actions.

 

Sec. 27.  Minnesota Statutes 2024, section 245I.12, subdivision 5, is amended to read:

 

Subd. 5.  Client grievances.  (a) The license holder must have a grievance procedure that:

 

(1) describes to clients how the license holder will meet the requirements in this subdivision; and

 

(2) contains the current public contact information of the Department of Human Services, Licensing Division; the Office of Ombudsman for Mental Health and Developmental Disabilities; the Department of Health, Office of Health Facilities Complaints; and all applicable health-related licensing boards.

 

(b) On the day of each client's admission, the license holder must explain the grievance procedure to the client.

 

(c) The license holder must:

 

(1) post the grievance procedure in a place visible to clients and provide a copy of the grievance procedure upon request;

 

(2) allow clients, former clients, and their authorized representatives to submit a grievance to the license holder;

 

(3) within three business days of receiving a client's grievance, acknowledge in writing that the license holder received the client's grievance.  If applicable, the license holder must include a notice of the client's separate appeal rights for a managed care organization's reduction, termination, or denial of a covered service;

 

(4) within 15 business days of receiving a client's grievance, provide a written final response to the client's grievance containing the license holder's official response to the grievance; and

 

(5) allow the client to bring a grievance to the person with the highest level of authority in the program.

 

(d) Clients may voice grievances and recommend changes in policies and services to staff and others of their choice, free from restraint, interference, coercion, discrimination, or reprisal, including threat of discharge.


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Sec. 28.  Minnesota Statutes 2024, section 254A.03, subdivision 1, is amended to read:

 

Subdivision 1.  Alcohol and Other Drug Abuse Section.  There is hereby created an Alcohol and Other Drug Abuse Section in the Department of Human Services.  This section shall be headed by a director.  The commissioner may place the director's position in the unclassified service if the position meets the criteria established in section 43A.08, subdivision 1a.  The section shall:

 

(1) conduct and foster basic research relating to the cause, prevention and methods of diagnosis, treatment and recovery of persons with substance misuse and substance use disorder;

 

(2) coordinate and review all activities and programs of all the various state departments as they relate to problems associated with substance misuse and substance use disorder;

 

(3) (2) develop, demonstrate, and disseminate new methods and techniques for prevention, early intervention, treatment and recovery support for substance misuse and substance use disorder;

 

(4) (3) gather facts and information about substance misuse and substance use disorder, and about the efficiency and effectiveness of prevention, treatment, and recovery support services from all comprehensive programs, including programs approved or licensed by the commissioner of human services or the commissioner of health or accredited by the Joint Commission on Accreditation of Hospitals.  The state authority is authorized to require information from comprehensive programs which is reasonable and necessary to fulfill these duties.  When required information has been previously furnished to a state or local governmental agency, the state authority shall collect the information from the governmental agency.  The state authority shall disseminate facts and summary information about problems associated with substance misuse and substance use disorder to public and private agencies, local governments, local and regional planning agencies, and the courts for guidance to and assistance in prevention, treatment and recovery support;

 

(5) (4) inform and educate the general public on substance misuse and substance use disorder;

 

(6) (5) serve as the state authority concerning substance misuse and substance use disorder by monitoring the conduct of diagnosis and referral services, research and comprehensive programs.  The state authority shall submit a biennial report to the governor containing a description of public services delivery and recommendations concerning increase of coordination and quality of services, and decrease of service duplication and cost;

 

(7) establish a state plan which shall set forth goals and priorities for a comprehensive continuum of care for substance misuse and substance use disorder for Minnesota.  All state agencies operating substance misuse or substance use disorder programs or administering state or federal funds for such programs shall annually set their program goals and priorities in accordance with the state plan.  Each state agency shall annually submit its plans and budgets to the state authority for review.  The state authority shall certify whether proposed services comply with the comprehensive state plan and advise each state agency of review findings;

 

(8) (6) make contracts with and grants to public and private agencies and organizations, both profit and nonprofit, and individuals, using federal funds, and state funds as authorized to pay for costs of state administration, including evaluation, statewide programs and services, research and demonstration projects, and American Indian programs;

 

(9) (7) receive and administer money available for substance misuse and substance use disorder programs under the alcohol, drug abuse, and mental health services block grant, United States Code, title 42, sections 300X to 300X‑9;


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(10)
(8) solicit and accept any gift of money or property for purposes of Laws 1973, chapter 572, and any grant of money, services, or property from the federal government, the state, any political subdivision thereof, or any private source; and

 

(11) (9) with respect to substance misuse and substance use disorder programs serving the American Indian community, establish guidelines for the employment of personnel with considerable practical experience in substance misuse and substance use disorder, and understanding of social and cultural problems related to substance misuse and substance use disorder, in the American Indian community.

 

Sec. 29.  Minnesota Statutes 2024, section 254A.19, subdivision 6, is amended to read:

 

Subd. 6.  Assessments for detoxification programs.  For detoxification programs licensed under chapter 245A according to Minnesota Rules, parts 9530.6510 to 9530.6590, a "chemical use assessment" is a comprehensive assessment completed according to the requirements of section 245G.05 and a "chemical dependency assessor" or "assessor" is an individual who meets the qualifications of section 245G.11, subdivisions 1 and 5.

 

Sec. 30.  Minnesota Statutes 2024, section 254A.19, subdivision 7, is amended to read:

 

Subd. 7.  Assessments for children's residential facilities.  For children's residential facilities licensed under chapter 245A according to Minnesota Rules, parts 2960.0010 to 2960.0220 and 2960.0430 to 2960.0490, a "chemical use assessment" is a comprehensive assessment completed according to the requirements of section 245G.05 and must be completed by an individual who meets the qualifications of section 245G.11, subdivisions 1 and 5.

 

Sec. 31.  Minnesota Statutes 2024, section 254B.05, subdivision 1, is amended to read:

 

Subdivision 1.  Licensure or certification required.  (a) Programs licensed by the commissioner are eligible vendors.  Hospitals may apply for and receive licenses to be eligible vendors, notwithstanding the provisions of section 245A.03.  American Indian programs that provide substance use disorder treatment, extended care, transitional residence, or outpatient treatment services, and are licensed by tribal government are eligible vendors.

 

(b) A licensed professional in private practice as defined in section 245G.01, subdivision 17, who meets the requirements of section 245G.11, subdivisions 1 and 4, is an eligible vendor of a comprehensive assessment provided according to section 254A.19, subdivision 3, and treatment services provided according to sections 245G.06 and 245G.07, subdivision 1, paragraphs (a), clauses (1) to (5), and (b); and subdivision 2, clauses (1) to (6).

 

(c) A county is an eligible vendor for a comprehensive assessment when provided by an individual who meets the staffing credentials of section 245G.11, subdivisions 1 and 5, and completed according to the requirements of section 254A.19, subdivision 3.  A county is an eligible vendor of care coordination services when provided by an individual who meets the staffing credentials of section 245G.11, subdivisions 1 and 7, and provided according to the requirements of section 245G.07, subdivision 1, paragraph (a), clause (5).  A county is an eligible vendor of peer recovery services when the services are provided by an individual who meets the requirements of section 245G.11, subdivision 8.

 

(d) A recovery community organization that meets the requirements of clauses (1) to (14) (15) and meets certification or accreditation requirements of the Alliance for Recovery Centered Organizations, the Council on Accreditation of Peer Recovery Support Services, Minnesota Alliance of Recovery Community Organizations or a 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


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vendor of peer recovery support services.
  A Minnesota statewide recovery organization identified by the commissioner must update recovery community organization applicants for certification or accreditation 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;

 

(8) maintain organizational practices to meet the needs of Black, Indigenous, and people of color communities, LGBTQ+ communities, and other underrepresented or marginalized communities.  Organizational practices may include board and staff training, service offerings, advocacy efforts, and culturally informed outreach and services;

 

(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; and


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(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.

 

(e) 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 (d) by September 1, 2024, in order to be considered as an eligible vendor of peer recovery support services.

 

(f) A recovery community organization that is aggrieved by an accreditation, a certification, or membership determination and believes it meets the requirements under paragraph (d) 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 (d), 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 (d) to continue to be an eligible vendor of peer recovery support services.

 

(g) All recovery community organizations must be certified or accredited by an entity listed in paragraph (d) by June 30, 2025 2027.

 

(h) Detoxification programs licensed under Minnesota Rules, parts 9530.6510 to 9530.6590, are not eligible vendors.  Programs that are not licensed as a residential or nonresidential substance use disorder treatment or withdrawal management program by the commissioner or by tribal government or do not meet the requirements of subdivisions 1a and 1b are not eligible vendors.

 

(i) Hospitals, federally qualified health centers, and rural health clinics are eligible vendors of a comprehensive assessment when the comprehensive assessment is completed according to section 254A.19, subdivision 3, and by an individual who meets the criteria of an alcohol and drug counselor according to section 245G.11, subdivision 5.  The alcohol and drug counselor must be individually enrolled with the commissioner and reported on the claim as the individual who provided the service.

 

(j) Any complaints about a recovery community organization or peer recovery support services may be made to and reviewed or investigated by the ombudsperson for behavioral health and developmental disabilities under sections 245.91 and 245.94.


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Sec. 32.  Minnesota Statutes 2024, section 254B.05, subdivision 5, is amended to read:

 

Subd. 5.  Rate requirements.  (a) The commissioner shall establish rates for substance use disorder services and service enhancements funded under this chapter.

 

(b) Eligible substance use disorder treatment services include:

 

(1) those licensed, as applicable, according to chapter 245G or applicable Tribal license and provided according to the following ASAM levels of care:

 

(i) ASAM level 0.5 early intervention services provided according to section 254B.19, subdivision 1, clause (1);

 

(ii) ASAM level 1.0 outpatient services provided according to section 254B.19, subdivision 1, clause (2);

 

(iii) ASAM level 2.1 intensive outpatient services provided according to section 254B.19, subdivision 1, clause (3);

 

(iv) ASAM level 2.5 partial hospitalization services provided according to section 254B.19, subdivision 1, clause (4);

 

(v) ASAM level 3.1 clinically managed low-intensity residential services provided according to section 254B.19, subdivision 1, clause (5).  The commissioner shall use the base payment rate of $79.84 per day for services provided under this item;

 

(vi) ASAM level 3.1 clinically managed low-intensity residential services provided according to section 254B.19, subdivision 1, clause (5), at 15 or more hours of skilled treatment services each week.  The commissioner shall use the base payment rate of $166.13 per day for services provided under this item;

 

(vii) ASAM level 3.3 clinically managed population-specific high-intensity residential services provided according to section 254B.19, subdivision 1, clause (6).  The commissioner shall use the specified base payment rate of $224.06 per day for services provided under this item; and

 

(viii) ASAM level 3.5 clinically managed high-intensity residential services provided according to section 254B.19, subdivision 1, clause (7).  The commissioner shall use the specified base payment rate of $224.06 per day for services provided under this item;

 

(2) comprehensive assessments provided according to section 254A.19, subdivision 3;

 

(3) treatment coordination services provided according to section 245G.07, subdivision 1, paragraph (a), clause (5);

 

(4) peer recovery support services provided according to section 245G.07, subdivision 2, clause (8);

 

(5) withdrawal management services provided according to chapter 245F;

 

(6) hospital-based treatment services that are licensed according to sections 245G.01 to 245G.17 or applicable Tribal license and licensed as a hospital under sections 144.50 to 144.56;

 

(7) substance use disorder treatment services with medications for opioid use disorder provided in an opioid treatment program licensed according to sections 245G.01 to 245G.17 and 245G.22, or under an applicable Tribal license;


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(8) medium-intensity residential treatment services that provide 15 hours of skilled treatment services each week and are licensed according to sections 245G.01 to 245G.17 and 245G.21 or applicable Tribal license;

 

(9) adolescent treatment programs that are licensed as outpatient treatment programs according to sections 245G.01 to 245G.18 or as residential treatment programs according to Minnesota Rules, parts 2960.0010 to 2960.0220, and 2960.0430 to 2960.0490, or applicable Tribal license;

 

(10) ASAM 3.5 clinically managed high-intensity residential services that are licensed according to sections 245G.01 to 245G.17 and 245G.21 or applicable Tribal license, which provide ASAM level of care 3.5 according to section 254B.19, subdivision 1, clause (7), and are provided by a state-operated vendor or to clients who have been civilly committed to the commissioner, present the most complex and difficult care needs, and are a potential threat to the community; and

 

(11) room and board facilities that meet the requirements of subdivision 1a.

 

(c) The commissioner shall establish higher rates for programs that meet the requirements of paragraph (b) and one of the following additional requirements:

 

(1) programs that serve parents with their children if the program:

 

(i) provides on-site child care during the hours of treatment activity that:

 

(A) is licensed under chapter 245A as a child care center under Minnesota Rules, chapter 9503; or

 

(B) is licensed under chapter 245A and sections 245G.01 to 245G.19; or

 

(ii) arranges for off-site child care during hours of treatment activity at a facility that is licensed under chapter 245A as:

 

(A) a child care center under Minnesota Rules, chapter 9503; or

 

(B) a family child care home under Minnesota Rules, chapter 9502;

 

(2) culturally specific or culturally responsive programs as defined in section 254B.01, subdivision 4a;

 

(3) disability responsive programs as defined in section 254B.01, subdivision 4b;

 

(4) programs that offer medical services delivered by appropriately credentialed health care staff in an amount equal to one hour per client per week if the medical needs of the client and the nature and provision of any medical services provided are documented in the client file; or

 

(5) programs that offer services to individuals with co-occurring mental health and substance use disorder problems if:

 

(i) the program meets the co-occurring requirements in section 245G.20;

 

(ii) the program employs a mental health professional as defined in section 245I.04, subdivision 2;

 

(iii) clients scoring positive on a standardized mental health screen receive a mental health diagnostic assessment within ten days of admission, excluding weekends and holidays;


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(iv) the program has standards for multidisciplinary case review that include a monthly review for each client that, at a minimum, includes a licensed mental health professional and licensed alcohol and drug counselor, and their involvement in the review is documented;

 

(v) family education is offered that addresses mental health and substance use disorder and the interaction between the two; and

 

(vi) co-occurring counseling staff shall receive eight hours of co-occurring disorder training annually.

 

(d) In order to be eligible for a higher rate under paragraph (c), clause (1), a program that provides arrangements for off-site child care must maintain current documentation at the substance use disorder facility of the child care provider's current licensure to provide child care services.

 

(e) Adolescent residential programs that meet the requirements of Minnesota Rules, parts 2960.0430 to 2960.0490 and 2960.0580 to 2960.0690, are exempt from the requirements in paragraph (c), clause (5), items (i) to (iv).

 

(f) Substance use disorder services that are otherwise covered as direct face-to-face services may be provided via telehealth as defined in section 256B.0625, subdivision 3b.  The use of telehealth to deliver services must be medically appropriate to the condition and needs of the person being served.  Reimbursement shall be at the same rates and under the same conditions that would otherwise apply to direct face-to-face services.

 

(g) For the purpose of reimbursement under this section, substance use disorder treatment services provided in a group setting without a group participant maximum or maximum client to staff ratio under chapter 245G shall not exceed a client to staff ratio of 48 to one.  At least one of the attending staff must meet the qualifications as established under this chapter for the type of treatment service provided.  A recovery peer may not be included as part of the staff ratio.

 

(h) Payment for outpatient substance use disorder services that are licensed according to sections 245G.01 to 245G.17 is limited to six hours per day or 30 hours per week unless prior authorization of a greater number of hours is obtained from the commissioner.

 

(i) Payment for substance use disorder services under this section must start from the day of service initiation, when the comprehensive assessment is completed within the required timelines.

 

(j) A license holder that is unable to provide all residential treatment services because a client missed services remains eligible to bill for the client's intensity level of services under this paragraph if the license holder can document the reason the client missed services and the interventions done to address the client's absence.

 

(k) Hours in a treatment week may be reduced in observance of federally recognized holidays.

 

(l) 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.

 

(m) Peer recovery support services not provided in accordance with section 254B.052 are subject to monetary recovery under section 256B.064 as money improperly paid.


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Sec. 33.  Minnesota Statutes 2024, section 254B.06, is amended by adding a subdivision to read:

 

Subd. 5.  Prohibition of duplicative claim submission.  (a) For time-based claims, submissions must follow the guidelines in the Centers for Medicare and Medicaid Services' Healthcare Common Procedure Coding System and the American Medical Association's Current Procedural Terminology to determine the appropriate units of time to report.

 

(b) More than half the duration of a time-based code must be spent performing the service to be eligible under this section.  Any other claim submission for service provided during the remaining balance of the unit of time is duplicative and ineligible.

 

(c) A provider may only round up to the next whole number of service units on a submitted claim when more than one and one-half times the defined value of the code has occurred and no additional time increment code exists.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 34.  Minnesota Statutes 2024, section 256.01, subdivision 34, is amended to read:

 

Subd. 34.  Federal administrative reimbursement dedicated.  Federal administrative reimbursement resulting from the following activities is appropriated to the commissioner for the designated purposes:

 

(1) reimbursement for the Minnesota senior health options project; and

 

(2) reimbursement related to prior authorization, review of medical necessity, and inpatient admission certification by a professional review organization.  A portion of these funds must be used for activities to decrease unnecessary pharmaceutical costs in medical assistance.; and

 

(3) reimbursement for capacity building and implementation grant expenditures for the medical assistance reentry demonstration waiver under section 256B.0761.

 

Sec. 35.  Minnesota Statutes 2024, section 256B.0616, subdivision 4, is amended to read:

 

Subd. 4.  Family peer support specialist program providers.  The commissioner shall develop a process to certify family peer support specialist programs, in accordance with the federal guidelines, in order for the program to bill for reimbursable services.  Family peer support programs must operate within an existing mental health community provider or center.

 

Sec. 36.  Minnesota Statutes 2024, section 256B.0616, subdivision 5, is amended to read:

 

Subd. 5.  Certified family peer specialist training and certification.  (a) The commissioner shall develop a or approve the use of an existing training and certification process for certified certifying family peer specialists.  The Family peer specialist candidates must have raised or be currently raising a child with a mental illness,; have had experience navigating the children's mental health system,; and must demonstrate leadership and advocacy skills and a strong dedication to family-driven and family-focused services.  The training curriculum must teach participating family peer specialists specialist candidates specific skills relevant to providing peer support to other parents and youth. 


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(b)
In addition to initial training and certification, the commissioner shall develop ongoing continuing educational workshops on pertinent issues related to family peer support counseling.

 

(c) Initial training leading to certification as a family peer specialist and continuing education for certified family peer specialists must be delivered by the commissioner or a third-party organization approved by the commissioner.  An approved third-party organization may also provide continuing education of certified family peer specialists.

 

Sec. 37.  Minnesota Statutes 2024, section 256B.0622, subdivision 3a, is amended to read:

 

Subd. 3a.  Provider certification and contract requirements for assertive community treatment.  (a) The assertive community treatment provider must have each ACT team be certified by the state following the certification process and procedures developed by the commissioner.  The certification process determines whether the ACT team meets the standards for assertive community treatment under this section, the standards in chapter 245I as required in section 245I.011, subdivision 5, and minimum program fidelity standards as measured by a nationally recognized fidelity tool approved by the commissioner.  Recertification must occur at least every three years.

 

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

 

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

 

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

 

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

 

(4) keep all necessary records required by law;

 

(5) be an enrolled Medicaid provider; and

 

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

 

(7) ensure that overall treatment supervision to the ACT team is provided by a qualified member of the ACT team and is available during and after regular business hours and on weekends and holidays.

 

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

 

Sec. 38.  Minnesota Statutes 2024, section 256B.0622, subdivision 7a, is amended to read:

 

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

 

(1) the team leader:

 

(i) shall must be a mental health professional.  Individuals who are not licensed but who are eligible for licensure and are otherwise qualified may also fulfill this role, clinical trainee, or mental health practitioner;


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

 

(iii) must be a single full-time staff member, dedicated to the ACT team, who is responsible for overseeing the administrative operations of the team and supervising team members to ensure delivery of best and ethical practices; and

 

(iv) must be available to ensure that overall treatment supervision to the ACT team is available after regular business hours and on weekends and holidays and is provided by a qualified member of the ACT team;

 

(2) the psychiatric care provider:

 

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

 

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

 

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

 

(iv) shall serve as the point of contact for psychiatric treatment if a client is hospitalized for mental health treatment and shall communicate directly with the client's inpatient psychiatric care providers to ensure continuity of care;

 

(v) shall have a minimum full-time equivalency that is prorated at a rate of 16 hours per 50 clients.  Part-time psychiatric care providers shall have designated hours to work on the team, with sufficient blocks of time on consistent days to carry out the provider's clinical, supervisory, and administrative responsibilities.  No more than two psychiatric care providers may share this role; and

 

(vi) shall provide psychiatric backup to the program after regular business hours and on weekends and holidays.  The psychiatric care provider may delegate this duty to another qualified psychiatric provider;

 

(3) the nursing staff:

 

(i) shall consist of one to three registered nurses or advanced practice registered nurses, of whom at least one has a minimum of one-year experience working with adults with serious mental illness and a working knowledge of psychiatric medications.  No more than two individuals can share a full-time equivalent position;

 

(ii) are responsible for managing medication, administering and documenting medication treatment, and managing a secure medication room; and

 

(iii) shall develop strategies, in collaboration with clients, to maximize taking medications as prescribed; screen and monitor clients' mental and physical health conditions and medication side effects; engage in health promotion, prevention, and education activities; communicate and coordinate services with other medical providers; facilitate the development of the individual treatment plan for clients assigned; and educate the ACT team in monitoring psychiatric and physical health symptoms and medication side effects;


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(4) the co-occurring disorder specialist:

 

(i) shall be a full-time equivalent co-occurring disorder specialist who has received specific training on co‑occurring disorders that is consistent with national evidence-based practices.  The training must include practical knowledge of common substances and how they affect mental illnesses, the ability to assess substance use disorders and the client's stage of treatment, motivational interviewing, and skills necessary to provide counseling to clients at all different stages of change and treatment.  The co-occurring disorder specialist may also be an individual who is a licensed alcohol and drug counselor as described in section 148F.01, subdivision 5, or a counselor who otherwise meets the training, experience, and other requirements in section 245G.11, subdivision 5.  No more than two co‑occurring disorder specialists may occupy this role; and

 

(ii) shall provide or facilitate the provision of co-occurring disorder treatment to clients.  The co-occurring disorder specialist shall serve as a consultant and educator to fellow ACT team members on co-occurring disorders;

 

(5) the vocational specialist:

 

(i) shall be a full-time vocational specialist who has at least one-year experience providing employment services or advanced education that involved field training in vocational services to individuals with mental illness.  An individual who does not meet these qualifications may also serve as the vocational specialist upon completing a training plan approved by the commissioner;

 

(ii) shall provide or facilitate the provision of vocational services to clients.  The vocational specialist serves as a consultant and educator to fellow ACT team members on these services; and

 

(iii) must not refer individuals to receive any type of vocational services or linkage by providers outside of the ACT team;

 

(6) the mental health certified peer specialist:

 

(i) shall be a full-time equivalent.  No more than two individuals can share this position.  The mental health certified peer specialist is a fully integrated team member who provides highly individualized services in the community and promotes the self-determination and shared decision-making abilities of clients.  This requirement may be waived due to workforce shortages upon approval of the commissioner;

 

(ii) must provide coaching, mentoring, and consultation to the clients to promote recovery, self-advocacy, and self-direction, promote wellness management strategies, and assist clients in developing advance directives; and

 

(iii) must model recovery values, attitudes, beliefs, and personal action to encourage wellness and resilience, provide consultation to team members, promote a culture where the clients' points of view and preferences are recognized, understood, respected, and integrated into treatment, and serve in a manner equivalent to other team members;

 

(7) the program administrative assistant shall be a full-time office-based program administrative assistant position assigned to solely work with the ACT team, providing a range of supports to the team, clients, and families; and

 

(8) additional staff:

 

(i) shall be based on team size.  Additional treatment team staff may include mental health professionals; clinical trainees; certified rehabilitation specialists; mental health practitioners; or mental health rehabilitation workers.  These individuals shall have the knowledge, skills, and abilities required by the population served to carry out rehabilitation and support functions; and


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(ii) shall be selected based on specific program needs or the population served.

 

(b) Each ACT team must clearly document schedules for all ACT team members.

 

(c) Each ACT team member must serve as a primary team member for clients assigned by the team leader and are responsible for facilitating the individual treatment plan process for those clients.  The primary team member for a client is the responsible team member knowledgeable about the client's life and circumstances and writes the individual treatment plan.  The primary team member provides individual supportive therapy or counseling, and provides primary support and education to the client's family and support system.

 

(d) Members of the ACT team must have strong clinical skills, professional qualifications, experience, and competency to provide a full breadth of rehabilitation services.  Each staff member shall be proficient in their respective discipline and be able to work collaboratively as a member of a multidisciplinary team to deliver the majority of the treatment, rehabilitation, and support services clients require to fully benefit from receiving assertive community treatment.

 

(e) Each ACT team member must fulfill training requirements established by the commissioner.

 

EFFECTIVE DATE.  This section is effective upon federal approval.  The commissioner of human services shall notify the revisor of statutes when federal approval is obtained.

 

Sec. 39.  Minnesota Statutes 2024, section 256B.0761, subdivision 4, is amended to read:

 

Subd. 4.  Services and duration.  (a) Services must be provided 90 days prior to an individual's release date or, if an individual's confinement is less than 90 days, during the time period between a medical assistance eligibility determination and the release to the community.

 

(b) Facilities must offer the following services using either community-based or corrections-based providers:

 

(1) case management activities to address physical and behavioral health needs, including a comprehensive assessment of individual needs, development of a person-centered care plan, referrals and other activities to address assessed needs, and monitoring and follow-up activities;

 

(2) drug coverage in accordance with section 256B.0625, subdivision 13, including up to a 30-day supply of drugs upon release;

 

(3) substance use disorder comprehensive assessments according to section 254B.05, subdivision 5, paragraph (b), clause (2);

 

(4) treatment coordination services according to section 254B.05, subdivision 5, paragraph (b), clause (3);

 

(5) peer recovery support services according to sections 245I.04, subdivisions 18 and 19, and 254B.05, subdivision 5, paragraph (b), clause (4);

 

(6) substance use disorder individual and group counseling provided according to sections 245G.07, subdivision 1, paragraph (a), clause (1), and 254B.05;

 

(7) mental health diagnostic assessments as required under section 245I.10;

 

(8) group and individual psychotherapy as required under section 256B.0671;


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(9) peer specialist services as required under sections 245I.04 and 256B.0615;

 

(10) family planning and obstetrics and gynecology services; and

 

(11) physical health well-being and screenings and care for adults and youth.; and

 

(12) medications used for the treatment of opioid use disorder and nonmedication treatment services for opioid use disorder under section 245G.22.

 

(c) Services outlined in this subdivision must only be authorized when an individual demonstrates medical necessity or other eligibility as required under this chapter or applicable state and federal laws.

 

Sec. 40.  Minnesota Statutes 2024, 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.

 

(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 or crisis assessment as defined in section 256B.0624, subdivision 2.

 

EFFECTIVE DATE.  This section is effective January 1, 2026, or upon federal approval, whichever is later.  The commissioner of human services shall notify the revisor of statutes when federal approval is obtained.

 

Sec. 41.  REVISOR INSTRUCTION.

 

The revisor of statutes shall substitute the term "substance use disorder assessment" or similar terms for "chemical dependency assessment" or similar terms, for "chemical use assessment" or similar terms, and for "comprehensive substance use disorder assessment" or similar terms wherever they appear in Minnesota Statutes, chapter 169A, and Minnesota Rules, chapter 7503, when referring to the assessments required under Minnesota Statutes, section 169A.70, or the charges or surcharges associated with those assessments.


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Sec. 42.  REVISOR INSTRUCTION.

 

The revisor of statutes shall change the terms "sober home" and "sober homes" to "recovery residence" or "recovery residences" wherever they appear in Minnesota Statutes.

 

ARTICLE 5

DEPARTMENT OF HUMAN SERVICES OFFICE OF INSPECTOR GENERAL

 

Section 1.  Minnesota Statutes 2024, section 142E.51, subdivision 5, is amended to read:

 

Subd. 5.  Administrative disqualification of child care providers caring for children receiving child care assistance.  (a) The department shall pursue an administrative disqualification, if the child care provider is accused of committing an intentional program violation, in lieu of a criminal action when it has not been pursued.  Intentional program violations include intentionally making false or misleading statements; intentionally offering, providing, soliciting, or receiving illegal remuneration as described in subdivision 6a or in violation of section 609.542, subdivision 2; intentionally misrepresenting, concealing, or withholding facts; and repeatedly and intentionally violating program regulations under this chapter.  Intent may be proven by demonstrating a pattern of conduct that violates program rules under this chapter.

 

(b) To initiate an administrative disqualification, the commissioner must send written notice using a signature‑verified confirmed delivery method to the provider against whom the action is being taken.  Unless otherwise specified under this chapter or Minnesota Rules, chapter 3400, the commissioner must send the written notice at least 15 calendar days before the adverse action's effective date.  The notice shall state (1) the factual basis for the agency's determination, (2) the action the agency intends to take, (3) the dollar amount of the monetary recovery or recoupment, if known, and (4) the provider's right to appeal the agency's proposed action.

 

(c) The provider may appeal an administrative disqualification by submitting a written request to the state agency.  A provider's request must be received by the state agency no later than 30 days after the date the commissioner mails the notice.

 

(d) The provider's appeal request must contain the following:

 

(1) each disputed item, the reason for the dispute, and, if applicable, an estimate of the dollar amount involved for each disputed item;

 

(2) the computation the provider believes to be correct, if applicable;

 

(3) the statute or rule relied on for each disputed item; and

 

(4) the name, address, and telephone number of the person at the provider's place of business with whom contact may be made regarding the appeal.

 

(e) On appeal, the issuing agency bears the burden of proof to demonstrate by a preponderance of the evidence that the provider committed an intentional program violation.

 

(f) The hearing is subject to the requirements of section 142A.20.  The human services judge may combine a fair hearing and administrative disqualification hearing into a single hearing if the factual issues arise out of the same or related circumstances and the provider receives prior notice that the hearings will be combined.


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(g) A provider found to have committed an intentional program violation and is administratively disqualified must be disqualified, for a period of three years for the first offense and permanently for any subsequent offense, from receiving any payments from any child care program under this chapter.

 

(h) Unless a timely and proper appeal made under this section is received by the department, the administrative determination of the department is final and binding.

 

Sec. 2.  Minnesota Statutes 2024, section 142E.51, subdivision 6, is amended to read:

 

Subd. 6.  Prohibited hiring practice practices.  It is prohibited to A person must not hire a child care center employee when, as a condition of employment, the employee is required to have one or more children who are eligible for or receive child care assistance, if:

 

(1) the individual hiring the employee is, or is acting at the direction of or in cooperation with, a child care center provider, center owner, director, manager, license holder, or other controlling individual; and

 

(2) the individual hiring the employee knows or has reason to know the purpose in hiring the employee is to obtain child care assistance program funds.

 

Sec. 3.  Minnesota Statutes 2024, section 142E.51, is amended by adding a subdivision to read:

 

Subd. 6a.  Illegal remuneration.  (a) Except as provided in paragraph (b), program applicants, participants, and providers must not offer, provide, solicit, or receive money, a discount, a credit, a waiver, a rebate, a good, a service, employment, or anything else of value in exchange for:

 

(1) obtaining or attempting to obtain child care assistance program benefits; or

 

(2) directing a person's child care assistance program benefits to a particular provider.

 

(b) The prohibition in paragraph (a) does not apply to:

 

(1) marketing or promotional offerings that directly benefit an applicant or recipient's child or dependent for whom the child care provider is providing child care services; or

 

(2) child care provider discounts, scholarships, or other financial assistance allowed under section 142E.17, subdivision 7.

 

(c) An attempt to buy or sell access to a family's child care assistance program benefits to an unauthorized person by an applicant, a participant, or a provider is an intentional program violation under subdivision 5 and wrongfully obtaining assistance under section 256.98.

 

Sec. 4.  Minnesota Statutes 2024, section 144.651, subdivision 2, is amended to read:

 

Subd. 2.  Definitions.  For the purposes of this section, "patient" means a person who is admitted to an acute care inpatient facility for a continuous period longer than 24 hours, for the purpose of diagnosis or treatment bearing on the physical or mental health of that person.  For purposes of subdivisions 4 to 9, 12, 13, 15, 16, and 18 to 20, "patient" also means a person who receives health care services at an outpatient surgical center or at a birth center licensed under section 144.615.  "Patient" also means a minor person who is admitted to a residential program as defined in section 253C.01.  "Patient" also means a person who is admitted to a residential substance use disorder treatment program licensed according to Minnesota Rules, parts 2960.0430 to 2960.0490.  For purposes of subdivisions 1, 3 to 16, 18, 20 and 30, "patient" also means any person who is receiving mental health treatment or


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substance use disorder treatment
on an outpatient basis or in a community support program or other community‑based program.  "Resident" means a person who is admitted to a nonacute care facility including extended care facilities, nursing homes, and boarding care homes for care required because of prolonged mental or physical illness or disability, recovery from injury or disease, or advancing age.  For purposes of all subdivisions except subdivisions 28 and 29, "resident" also means a person who is admitted to a facility licensed as a board and lodging facility under Minnesota Rules, parts 4625.0100 to 4625.2355, a boarding care home under sections 144.50 to 144.56, or a supervised living facility under Minnesota Rules, parts 4665.0100 to 4665.9900, and which that operates a rehabilitation withdrawal management program licensed under chapter 245F, a residential substance use disorder treatment program licensed under chapter 245G or, an intensive residential treatment services or residential crisis stabilization program licensed under chapter 245I, or a detoxification program licensed under Minnesota Rules, parts 9530.6510 to 9530.6590.

 

Sec. 5.  Minnesota Statutes 2024, 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.

 

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 designate one authorized agent for all licenses issued under this chapter or may designate a different authorized agent for each license.  Service on the authorized agent is service on all of the controlling individuals.  It is not a defense to any action arising under this chapter that service was not made on each controlling individual.  The designation of a controlling individual as the authorized agent under this paragraph does not affect the legal responsibility of any other controlling individual under this chapter.

 

(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


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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;

 

(4) if applicable, the applicant's NPI number and UMPI number;

 

(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


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(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.

 

Sec. 6.  Minnesota Statutes 2024, 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;


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(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), after being requested by the commissioner.

 

When a license issued under this chapter or chapter 142B is revoked, the license holder and each affiliated controlling individual with a revoked license may not hold any license under chapter 245A for five years following the revocation, and other licenses held by the applicant or license holder or licenses affiliated with each controlling individual shall also be revoked.

 

(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.


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(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 apply for and be granted 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.

 

(m) The commissioner of human services may coordinate and share data with the commissioner of children, youth, and families to enforce this section.

 

Sec. 7.  Minnesota Statutes 2024, section 245A.16, subdivision 1, is amended to read:

 

Subdivision 1.  Delegation of authority to agencies.  (a) County agencies that have been designated by the commissioner to perform licensing functions and activities under section 245A.04; to recommend denial of applicants under section 245A.05; to issue correction orders, to issue variances, and recommend a conditional license under section 245A.06; or to recommend suspending or revoking a license or issuing a fine under section 245A.07, shall comply with rules and directives of the commissioner governing those functions and with this section.  The following variances are excluded from the delegation of variance authority and may be issued only by the commissioner:

 

(1) dual licensure of child foster residence setting and community residential setting;

 

(2) until the responsibility for family child foster care transfers to the commissioner of children, youth, and families under Laws 2023, chapter 70, article 12, section 30, dual licensure of family child foster care and family adult foster care;

 

(3) until the responsibility for family child care transfers to the commissioner of children, youth, and families under Laws 2023, chapter 70, article 12, section 30, dual licensure of family adult foster care and family child care;


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(4) adult foster care or community residential setting maximum capacity;

 

(5) adult foster care or community residential setting minimum age requirement;

 

(6) child foster care maximum age requirement;

 

(7) variances regarding disqualified individuals;

 

(8) the required presence of a caregiver in the adult foster care residence during normal sleeping hours;

 

(9) variances to requirements relating to chemical use problems of a license holder or a household member of a license holder; and

 

(10) variances to section 142B.46 for the use of a cradleboard for a cultural accommodation.

 

(b) Once the respective responsibilities transfer from the commissioner of human services to the commissioner of children, youth, and families, under Laws 2023, chapter 70, article 12, section 30, the commissioners of human services and children, youth, and families must both approve a variance for dual licensure of family child foster care and family adult foster care or family adult foster care and family child care.  Variances under this paragraph are excluded from the delegation of variance authority and may be issued only by both commissioners.

 

(c) For family adult day services programs, the commissioner may authorize licensing reviews every two years after a licensee has had at least one annual review.

 

(d) A (c) An adult foster care, family adult day services, child foster residence setting, or community residential services license issued under this section may be issued for up to two years until implementation of the provider licensing and reporting hub.  Upon implementation of the provider licensing and reporting hub, licenses may be issued each calendar year.

 

(e) (d) During implementation of chapter 245D, the commissioner shall consider:

 

(1) the role of counties in quality assurance;

 

(2) the duties of county licensing staff; and

 

(3) the possible use of joint powers agreements, according to section 471.59, with counties through which some licensing duties under chapter 245D may be delegated by the commissioner to the counties.

 

Any consideration related to this paragraph must meet all of the requirements of the corrective action plan ordered by the federal Centers for Medicare and Medicaid Services.

 

(f) (e) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or successor provisions; and section 245D.061 or successor provisions, for family child foster care programs providing out-of-home respite, as identified in section 245D.03, subdivision 1, paragraph (b), clause (1), is excluded from the delegation of authority to county agencies.

 

Sec. 8.  Minnesota Statutes 2024, 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 must have a written standing order protocol by a physician who is licensed under chapter 147, advanced practice registered nurse


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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 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.05, is amended by adding a subdivision to read:

 

Subd. 9.  Electronic signature.  For documentation requiring a signature under this chapter, use of an electronic signature as defined under section 325L.02, paragraph (h), is allowed.

 

Sec. 10.  Minnesota Statutes 2024, section 245C.08, subdivision 3, is amended to read:

 

Subd. 3.  Arrest and investigative information.  (a) For any background study completed under this section, if the commissioner has reasonable cause to believe the information is pertinent to the disqualification of an individual, the commissioner also may review arrest and investigative information from:

 

(1) the Bureau of Criminal Apprehension;

 

(2) the commissioners of children, youth, and families; health; and human services;

 

(3) a county attorney prosecutor;

 

(4) a county sheriff;

 

(5) (4) a county agency;

 

(6) (5) a local chief of police law enforcement agency;

 

(7) (6) other states;

 

(8) (7) the courts;

 

(9) (8) the Federal Bureau of Investigation;

 

(10) (9) the National Criminal Records Repository; and

 

(11) (10) criminal records from other states.


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(b) Except when specifically required by law, the commissioner is not required to conduct more than one review of a subject's records from the Federal Bureau of Investigation if a review of the subject's criminal history with the Federal Bureau of Investigation has already been completed by the commissioner and there has been no break in the subject's affiliation with the entity that initiated the background study.

 

(c) If the commissioner conducts a national criminal history record check when required by law and uses the information from the national criminal history record check to make a disqualification determination, the data obtained is private data and cannot be shared with private agencies or prospective employers of the background study subject.

 

(d) If the commissioner conducts a national criminal history record check when required by law and uses the information from the national criminal history record check to make a disqualification determination, the license holder or entity that submitted the study is not required to obtain a copy of the background study subject's disqualification letter under section 245C.17, subdivision 3.

 

Sec. 11.  Minnesota Statutes 2024, 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), 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

 

(4) the previous set-aside was not limited to a specific person receiving services.

 

(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


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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. 12.  Minnesota Statutes 2024, section 245D.02, subdivision 4a, is amended to read:

 

Subd. 4a.  Community residential setting.  "Community residential setting" means a residential program as identified in section 245A.11, subdivision 8, where residential supports and services identified in section 245D.03, subdivision 1, paragraph (c), clause (3), items (i) and (ii), are provided to adults, as defined in section 245A.02, subdivision 2, and the license holder is the owner, lessor, or tenant of the facility licensed according to this chapter, and the license holder does not reside in the facility.

 

EFFECTIVE DATE.  This section is effective August 1, 2025.

 

Sec. 13.  Minnesota Statutes 2024, section 245G.05, subdivision 1, is amended to read:

 

Subdivision 1.  Comprehensive assessment.  A comprehensive assessment of the client's substance use disorder must be administered face-to-face by an alcohol and drug counselor within five calendar days from the day of service initiation for a residential program or by the end of the fifth day on which a treatment service is provided in a nonresidential program.  The number of days to complete the comprehensive assessment excludes the day of service initiation.  If the comprehensive assessment is not completed within the required time frame, the person-centered reason for the delay and the planned completion date must be documented in the client's file.  The comprehensive assessment is complete upon a qualified staff member's dated signature.  If the client previously received a comprehensive assessment that authorized the treatment service, an alcohol and drug counselor may use the comprehensive assessment for requirements of this subdivision but must document a review of the comprehensive assessment and update the comprehensive assessment as clinically necessary to ensure compliance with this subdivision within applicable timelines.  An alcohol and drug counselor must sign and date the comprehensive assessment review and update.

 

Sec. 14.  Minnesota Statutes 2024, section 245G.06, subdivision 1, is amended to read:

 

Subdivision 1.  General.  Each client must have a person-centered individual treatment plan developed by an alcohol and drug counselor within ten days from the day of service initiation for a residential program, by the end of the tenth day on which a treatment session has been provided from the day of service initiation for a client in a nonresidential program, not to exceed 30 days.  Opioid treatment programs must complete the individual treatment plan within 21 14 days from the day of service initiation.  The number of days to complete the individual treatment plan excludes the day of service initiation.  The individual treatment plan must be signed by the client and the alcohol and drug counselor and document the client's involvement in the development of the plan.  The individual treatment plan is developed upon the qualified staff member's dated signature.  Treatment planning must include ongoing assessment of client needs.  An individual treatment plan must be updated based on new information gathered about the client's condition, the client's level of participation, and on whether methods identified have the intended effect.  A change to the plan must be signed by the client and the alcohol and drug counselor.  If the client chooses to have family or others involved in treatment services, the client's individual treatment plan must include how the family or others will be involved in the client's treatment.  If a client is receiving treatment services or an assessment via telehealth and the alcohol and drug counselor documents the reason the client's signature cannot be obtained, the alcohol and drug counselor may document the client's verbal approval or electronic written approval of the treatment plan or change to the treatment plan in lieu of the client's signature.


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Sec. 15.  Minnesota Statutes 2024, section 245G.06, subdivision 2a, is amended to read:

 

Subd. 2a.  Documentation of treatment services.  The license holder must ensure that the staff member who provides the treatment service documents in the client record the date, type, and amount of each treatment service provided to a client and the client's response to each treatment service within seven days of providing the treatment service.  In addition to the other requirements of this subdivision, if a guest speaker presents information during a treatment service, the alcohol and drug counselor who provided the service and is responsible for the information presented by the guest speaker must document the name of the guest speaker, date of service, time the presentation began, time the presentation ended, and a summary of the topic presentation.

 

Sec. 16.  Minnesota Statutes 2024, section 245G.06, subdivision 3a, is amended to read:

 

Subd. 3a.  Frequency of treatment plan reviews.  (a) A license holder must ensure that the alcohol and drug counselor responsible for a client's treatment plan completes and documents a treatment plan review that meets the requirements of subdivision 3 in each client's file, according to the frequencies required in this subdivision.  All ASAM levels referred to in this chapter are those described in section 254B.19, subdivision 1.

 

(b) For a client receiving residential ASAM level 3.3 or 3.5 high-intensity services or residential hospital-based services, a treatment plan review must be completed once every 14 days.

 

(c) For a client receiving residential ASAM level 3.1 low-intensity services or any other residential level not listed in paragraph (b), a treatment plan review must be completed once every 30 days.

 

(d) For a client receiving nonresidential ASAM level 2.5 partial hospitalization services, a treatment plan review must be completed once every 14 days.

 

(e) For a client receiving nonresidential ASAM level 1.0 outpatient or 2.1 intensive outpatient services or any other nonresidential level not included in paragraph (d), a treatment plan review must be completed once every 30 days.

 

(f) For a client receiving nonresidential opioid treatment program services according to section 245G.22, a treatment plan review must be completed:

 

(1) weekly for the ten weeks following completion of the treatment plan; and

 

(2) monthly thereafter.

 

Treatment plan reviews must be completed more frequently when clinical needs warrant.

 

(g) The ten-week time frame in paragraph (f), clause (1), may include a client's previous time at another opioid treatment program licensed in Minnesota under section 245G.22 if:

 

(1) the client was enrolled in the other opioid treatment program immediately prior to admission to the license holder's program;

 

(2) the client did not miss taking a daily dose of medication to treat an opioid use disorder; and

 

(3) the license holder obtains from the previous opioid treatment program the client's number of days in comprehensive treatment, discharge summary, amount of daily milligram dose of medication for opioid use disorder, and previous three drug abuse test results.


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(g)
(h) Notwithstanding paragraphs (e) and (f), clause (2), for a client in a nonresidential program with a treatment plan that clearly indicates less than five hours of skilled treatment services will be provided to the client each month, a treatment plan review must be completed once every 90 days.  Treatment plan reviews must be completed more frequently when clinical needs warrant.

 

Sec. 17.  Minnesota Statutes 2024, section 245G.07, subdivision 2, is amended to read:

 

Subd. 2.  Additional treatment service.  A license holder may provide or arrange the following additional treatment service as a part of the client's individual treatment plan:

 

(1) relationship counseling provided by a qualified professional to help the client identify the impact of the client's substance use disorder on others and to help the client and persons in the client's support structure identify and change behaviors that contribute to the client's substance use disorder;

 

(2) therapeutic recreation to allow the client to participate in recreational activities without the use of mood‑altering chemicals and to plan and select leisure activities that do not involve the inappropriate use of chemicals;

 

(3) stress management and physical well-being to help the client reach and maintain an appropriate level of health, physical fitness, and well-being;

 

(4) living skills development to help the client learn basic skills necessary for independent living;

 

(5) employment or educational services to help the client become financially independent;

 

(6) socialization skills development to help the client live and interact with others in a positive and productive manner;

 

(7) room, board, and supervision at the treatment site to provide the client with a safe and appropriate environment to gain and practice new skills; and

 

(8) peer recovery support services must be provided one-to-one and face-to-face, by a recovery peer qualified according to section 245I.04, subdivision 18.  Peer recovery support services must be provided according to sections 254B.05, subdivision 5, and 254B.052, and may be provided through telehealth according to section 256B.0625, subdivision 3b.

 

Sec. 18.  Minnesota Statutes 2024, section 245G.08, subdivision 6, is amended to read:

 

Subd. 6.  Control of drugs.  A license holder must have and implement written policies and procedures developed by a registered nurse that contain:

 

(1) a requirement that each drug must be stored in a locked compartment.  A Schedule II drug, as defined by section 152.02, subdivision 3, must be stored in a separately locked compartment, permanently affixed to the physical plant or medication cart;

 

(2) a documentation system which that accounts for all scheduled drugs each shift schedule II to V drugs listed in section 152.02, subdivisions 3 to 6;

 

(3) a procedure for recording the client's use of medication, including the signature of the staff member who completed the administration of the medication with the time and date;


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(4) a procedure to destroy a discontinued, outdated, or deteriorated medication;

 

(5) a statement that only authorized personnel are permitted access to the keys to a locked compartment;

 

(6) a statement that no legend drug supply for one client shall be given to another client; and

 

(7) a procedure for monitoring the available supply of an opiate antagonist as defined in section 604A.04, subdivision 1, on site and replenishing the supply when needed.

 

Sec. 19.  Minnesota Statutes 2024, 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, and that the client was provided 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).  If the client has an opioid use disorder, the record must contain documentation that the client was provided, within 24 hours of admission or, for clients who would benefit from a later orientation, 72 hours; and

 

(iv) opioid educational information material according to section 245G.04, subdivision 3, 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.

 

Sec. 20.  Minnesota Statutes 2024, section 245G.11, subdivision 11, is amended to read:

 

Subd. 11.  Individuals with temporary permit.  An individual with a temporary permit from the Board of Behavioral Health and Therapy may provide substance use disorder treatment service services and complete comprehensive assessments, individual treatment plans, treatment plan reviews, and service discharge summaries according to this subdivision if they meet the requirements of either paragraph (a) or (b).


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(a) An individual with a temporary permit must be supervised by a licensed alcohol and drug counselor assigned by the license holder.  The supervising licensed alcohol and drug counselor must document the amount and type of supervision provided at least on a weekly basis.  The supervision must relate to the clinical practice.

 

(b) An individual with a temporary permit must be supervised by a clinical supervisor approved by the Board of Behavioral Health and Therapy.  The supervision must be documented and meet the requirements of section 148F.04, subdivision 4.

 

Sec. 21.  Minnesota Statutes 2024, section 245G.18, subdivision 2, is amended to read:

 

Subd. 2.  Alcohol and drug counselor qualifications.  In addition to the requirements specified in section 245G.11, subdivisions 1 and 5, an alcohol and drug counselor providing treatment service to an adolescent must have:

 

(1) an additional 30 hours of training or classroom instruction or one three-credit semester college course in adolescent development.  This The training, classroom instruction, or college course must be completed no later than six months after the counselor first provides treatment services to adolescents and need only be completed one time; and.  The training must be interactive and must not consist only of reading information.  An alcohol and drug counselor who is also qualified as a mental health professional under section 245I.04, subdivision 2, is exempt from the requirement in this subdivision.

 

(2) at least 150 hours of supervised experience as an adolescent counselor, either as a student or as a staff member.

 

Sec. 22.  Minnesota Statutes 2024, section 245G.19, subdivision 4, is amended to read:

 

Subd. 4.  Additional licensing requirements.  During the times the license holder is responsible for the supervision of a child, except for license holders described in subdivision 5, the license holder must meet the following standards:

 

(1) child and adult ratios in Minnesota Rules, part 9502.0367;

 

(2) day care training in section 142B.70;

 

(3) behavior guidance in Minnesota Rules, part 9502.0395;

 

(4) activities and equipment in Minnesota Rules, part 9502.0415;

 

(5) physical environment in Minnesota Rules, part 9502.0425;

 

(6) physical space requirements in section 142B.72; and

 

(7) water, food, and nutrition in Minnesota Rules, part 9502.0445, unless the license holder has a license from the Department of Health.

 

Sec. 23.  Minnesota Statutes 2024, section 245G.19, is amended by adding a subdivision to read:

 

Subd. 5.  Child care license exemption.  (a) License holders that only provide supervision of children for less than three hours a day while the child's parent is in the same building or contiguous building as allowed by the exclusion from licensure in section 245A.03, subdivision 2, paragraph (a), clause (6), are exempt from the requirements of subdivision 4 if the requirements of this subdivision are met.


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(b) During the times the license holder is responsible for the supervision of the child, there must always be a staff member present who is responsible for supervising the child who is trained in cardiopulmonary resuscitation (CPR) and first aid.  This staff person must be able to immediately contact the child's parent at all times.

 

Sec. 24.  Minnesota Statutes 2024, section 245G.22, subdivision 1, is amended to read:

 

Subdivision 1.  Additional requirements.  (a) An opioid treatment program licensed under this chapter must also:  (1) comply with the requirements of this section and Code of Federal Regulations, title 42, part 8; (2) be registered as a narcotic treatment program with the Drug Enforcement Administration; (3) be accredited through an accreditation body approved by the Division of Pharmacologic Therapy of the Center for Substance Abuse Treatment; (4) be certified through the Division of Pharmacologic Therapy of the Center for Substance Abuse Treatment; and (5) hold a license from the Minnesota Board of Pharmacy or equivalent agency meet the requirements for dispensing by a practitioner in section 151.37, subdivision 2, and Minnesota Rules, parts 6800.9950 to 6800.9954.

 

(b) A license holder operating under the dispensing by practitioner requirements in section 151.37, subdivision 2, and Minnesota Rules, parts 6800.9950 to 6800.9954, must maintain documentation that the practitioner responsible for complying with the above statute and rules has signed a statement attesting that they are the practitioner responsible for complying with the applicable statutes and rules.  If more than one person is responsible for compliance, all practitioners must sign a statement.

 

(b) (c) Where a standard in this section differs from a standard in an otherwise applicable administrative rule or statute, the standard of this section applies.

 

Sec. 25.  Minnesota Statutes 2024, section 245G.22, subdivision 14, is amended to read:

 

Subd. 14.  Central registry.  (a) A license holder must comply with requirements to submit information and necessary consents to the state central registry for each client admitted, as specified by the commissioner.  The license holder must submit data concerning medication used for the treatment of opioid use disorder.  The data must be submitted in a method determined by the commissioner and the original information must be kept in the client's record.  The information must be submitted for each client at admission and discharge.  The program must document the date the information was submitted.  The client's failure to provide the information shall prohibit participation in an opioid treatment program.  The information submitted must include the client's:

 

(1) full name and all aliases;

 

(2) date of admission;

 

(3) date of birth;

 

(4) Social Security number or Alien Registration Number, if any; and

 

(5) current or previous enrollment status in another opioid treatment program;.

 

(6) government-issued photo identification card number; and

 

(7) driver's license number, if any.

 

(b) The requirements in paragraph (a) are effective upon the commissioner's implementation of changes to the drug and alcohol abuse normative evaluation system or development of an electronic system by which to submit the data.


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Sec. 26.  Minnesota Statutes 2024, section 245G.22, subdivision 15, is amended to read:

 

Subd. 15.  Nonmedication treatment services; documentation.  (a) The program must offer at least 50 consecutive minutes of individual or group therapy treatment services as defined in section 245G.07, subdivision 1, paragraph (a), clause (1), per week, for the first ten weeks following the day of service initiation, and at least 50 consecutive minutes per month thereafter.  As clinically appropriate, the program may offer these services cumulatively and not consecutively in increments of no less than 15 minutes over the required time period, and for a total of 60 minutes of treatment services over the time period, and must document the reason for providing services cumulatively in the client's record.  The program may offer additional levels of service when deemed clinically necessary.

 

(b) The ten-week time frame may include a client's previous time at another opioid treatment program licensed in Minnesota under this section if:

 

(1) the client was enrolled in the other opioid treatment program immediately prior to admission to the license holder's program;

 

(2) the client did not miss taking a daily dose of medication to treat an opioid use disorder; and

 

(3) the license holder obtains from the previous opioid treatment program the client's number of days in comprehensive maintenance treatment, discharge summary, amount of daily milligram dose of medication for opioid use disorder, and previous three drug abuse test results.

 

(b) (c) Notwithstanding the requirements of comprehensive assessments in section 245G.05, the assessment must be completed within 21 days from the day of service initiation.

 

Sec. 27.  Minnesota Statutes 2024, section 256.98, subdivision 1, is amended to read:

 

Subdivision 1.  Wrongfully obtaining assistance.  (a) A person who commits any of the following acts or omissions with intent to defeat the purposes of sections 145.891 to 145.897, the MFIP program formerly codified in sections 256.031 to 256.0361, the AFDC program formerly codified in sections 256.72 to 256.871, chapter 142G, 256B, 256D, 256I, 256K, or 256L, child care assistance programs, and emergency assistance programs under section 256D.06, is guilty of theft and shall be sentenced under section 609.52, subdivision 3, clauses (1) to (5):

 

(1) obtains or attempts to obtain, or aids or abets any person to obtain by means of a willfully false statement or representation, by intentional concealment of any material fact, or by impersonation or other fraudulent device, assistance or the continued receipt of assistance, to include child care assistance or food benefits produced according to sections 145.891 to 145.897 and MinnesotaCare services according to sections 256.9365, 256.94, and 256L.01 to 256L.15, to which the person is not entitled or assistance greater than that to which the person is entitled;

 

(2) knowingly aids or abets in buying or in any way disposing of the property of a recipient or applicant of assistance without the consent of the county agency; or

 

(3) obtains or attempts to obtain, alone or in collusion with others, the receipt of payments to which the individual is not entitled as a provider of subsidized child care, or; by furnishing or concurring in offering, providing, soliciting, or receiving illegal remuneration as described in section 142E.51, subdivision 6a, or in violation of section 609.542, subdivision 2; or by submitting or aiding and abetting the submission of a willfully false claim for child care assistance.


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(b) The continued receipt of assistance to which the person is not entitled or greater than that to which the person is entitled as a result of any of the acts, failure to act, or concealment described in this subdivision shall be deemed to be continuing offenses from the date that the first act or failure to act occurred.

 

Sec. 28.  Minnesota Statutes 2024, section 256B.064, subdivision 1a, is amended to read:

 

Subd. 1a.  Grounds for sanctions.  (a) The commissioner may impose sanctions against any individual or entity that receives payments from medical assistance or provides goods or services for which payment is made from medical assistance for any of the following: 

 

(1) fraud, theft, or abuse in connection with the provision of goods and services to recipients of public assistance for which payment is made from medical assistance;

 

(2) a pattern of presentment of false or duplicate claims or claims for services not medically necessary;

 

(3) a pattern of making false statements of material facts for the purpose of obtaining greater compensation than that to which the individual or entity is legally entitled;

 

(4) suspension or termination as a Medicare vendor;

 

(5) refusal to grant the state agency access during regular business hours to examine all records necessary to disclose the extent of services provided to program recipients and appropriateness of claims for payment;

 

(6) failure to repay an overpayment or a fine finally established under this section;

 

(7) failure to correct errors in the maintenance of health service or financial records for which a fine was imposed or after issuance of a warning by the commissioner; and

 

(8) any reason for which an individual or entity could be excluded from participation in the Medicare program under section 1128, 1128A, or 1866(b)(2) of the Social Security Act. 

 

(b) For the purposes of this section, goods or services for which payment is made from medical assistance includes but is not limited to care and services identified in section 256B.0625 or provided pursuant to any federally approved waiver.

 

(c) Regardless of the source of payment or other item of value, the commissioner may impose sanctions against any individual or entity that solicits, receives, pays, or offers to pay any illegal remuneration as described in section 142E.51, subdivision 6a, in violation of section 609.542, subdivision 2, or in violation of United States Code, title 42, section 1320a-7b(b)(1) or (2).  No conviction is required before the commissioner can impose sanctions under this paragraph.

 

(b) (d) The commissioner may impose sanctions against a pharmacy provider for failure to respond to a cost of dispensing survey under section 256B.0625, subdivision 13e, paragraph (h).

 

Sec. 29.  Minnesota Statutes 2024, section 256B.092, subdivision 11, is amended to read:

 

Subd. 11.  Residential support services.  (a) Upon federal approval, there is established a new service called residential support that is available on the community alternative care, community access for disability inclusion, developmental disabilities, and brain injury waivers.  Existing waiver service descriptions must be modified to the extent necessary to ensure there is no duplication between other services.  Residential support services must be provided by vendors licensed as a community residential setting as defined in section 245A.11, subdivision 8, a foster care setting licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, or an adult foster care setting licensed under Minnesota Rules, parts 9555.5105 to 9555.6265.


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(b) Residential support services must meet the following criteria:

 

(1) the residential site must have a designated person responsible for program management, oversight, development, and implementation of policies and procedures;

 

(2) the provider of residential support services must provide supervision, training, and assistance as described in the person's support plan; and

 

(3) the provider of residential support services must meet the requirements of licensure and additional requirements of the person's support plan.

 

(c) Providers of residential support services that meet the definition in paragraph (a) must be licensed according to chapter 245D.  Providers licensed to provide child foster care under Minnesota Rules, parts 2960.3000 to 2960.3340, or adult foster care licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, and that meet the requirements in section 245A.03, subdivision 7, paragraph (f), are considered registered under this section.

 

Sec. 30.  Minnesota Statutes 2024, section 256B.12, is amended to read:

 

256B.12 LEGAL REPRESENTATION.

 

The attorney general or the appropriate county attorney appearing at the direction of the attorney general shall be the attorney for the state agency, and the county attorney of the appropriate county shall be the attorney for the local county agency in all matters pertaining hereto.  To prosecute under this chapter or sections 609.466 and; 609.52, subdivision 2,; and 609.542 or to recover payments wrongfully made under this chapter, the attorney general or the appropriate county attorney, acting independently or at the direction of the attorney general may institute a criminal or civil action.

 

Sec. 31.  Minnesota Statutes 2024, section 256I.04, subdivision 2c, is amended to read:

 

Subd. 2c.  Background study requirements.  (a) Effective July 1, 2016, A provider of housing support must initiate background studies in accordance with chapter 245C of the following individuals:  section 245C.03, subdivision 10.

 

(1) controlling individuals as defined in section 245A.02;

 

(2) managerial officials as defined in section 245A.02; and

 

(3) all employees and volunteers of the establishment who have direct contact with recipients, or who have unsupervised access to recipients, their personal property, or their private data.

 

(b) The provider of housing support must maintain compliance with all requirements established for entities initiating background studies under chapter 245C A provider initiating a background study pursuant to chapter 245C is not required to initiate a background study in accordance with sections 299C.66 to 299C.71 or chapter 364.

 

(c) Effective July 1, 2017, a provider of housing support must demonstrate that all individuals required to have a background study according to paragraph (a) have a notice stating either that:

 

(1) the individual is not disqualified under section 245C.14; or

 

(2) the individual is disqualified, but the individual has been issued a set-aside of the disqualification for that setting under section 245C.22.


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Sec. 32.  [609.542] ILLEGAL REMUNERATIONS.

 

Subdivision 1.  Definition.  For purposes of this section, "federal health care program" has the meaning given in United States Code, title 42, section 1320a-7b(f).

 

Subd. 2.  Human services program; unauthorized remuneration.  (a) A person who intentionally solicits or receives money, a discount, a credit, a waiver, a rebate, a good, a service, employment, or anything else of value in return for doing any of the following is guilty of a crime and may be sentenced as provided in subdivision 4:

 

(1) referring an individual to a person for the furnishing or arranging for the furnishing of any item or service for which payment may be made in whole or in part under a federal health care program, behavioral health program under chapter 254B, or program under chapter 142E;

 

(2) purchasing, leasing, ordering, or arranging for or recommending purchasing, leasing, or ordering any good, facility, service, or item for which payment may be made in whole or in part under a federal health care program, behavioral health program under chapter 254B, or program under chapter 142E; or

 

(3) applying for or receiving any item or service for which payment may be made in whole or in part under a federal health care program, behavioral health program under chapter 254B, or program under chapter 142E.

 

(b) A person who intentionally offers or provides money, a discount, a credit, a waiver, a rebate, a good, a service, employment, or anything else of value to induce a person to do any of the following is guilty of a crime and may be sentenced as provided in subdivision 4:

 

(1) refer an individual to a person for the furnishing or arranging for the furnishing of any item or service for which payment may be made in whole or in part under a federal health care program, behavioral health program under chapter 254B, or program under chapter 142E;

 

(2) purchase, lease, order, or arrange for or recommend purchasing, leasing, or ordering any good, facility, service, or item for which payment may be made in whole or in part under a federal health care program, behavioral health program under chapter 254B, or program under chapter 142E; or

 

(3) apply for or receive any item or service for which payment may be made in whole or in part under a federal health care program, behavioral health program under chapter 254B, or program under chapter 142E.

 

Subd. 3.  Exceptions.  (a) Subdivision 2 does not apply to any payment, discount, waiver, or other remuneration exempted under United States Code, title 42, section 1320a-7b(b)(3), or payment made under a federal health care program that is exempt from liability by United States Code, title 42, section 1001.952.

 

(b) For actions involving a program under chapter 142E, subdivision 2 does not apply to:

 

(1) any amount paid by an employer to a bona fide employee for providing covered items or services under chapter 142E while acting in the course and scope of employment; or

 

(2) child care provider discounts, scholarships, or other financial assistance to families allowed under section 142E.17, subdivision 7.


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Subd. 4.
  Penalties.  An individual who violates subdivision 2 may be sentenced as follows:

 

(1) imprisonment of not more than 20 years or payment of a fine of not more than $100,000, or both, if the value of any money, discount, credit, waiver, rebate, good, service, employment, or other thing of value solicited, received, offered, or provided exceeds $35,000;

 

(2) imprisonment of not more than ten years or payment of a fine of not more than $20,000, or both, if the value of any money, discount, credit, waiver, rebate, good, service, employment, or other item of value solicited, received, offered, or provided is more than $5,000 but not more than $35,000; or

 

(3) imprisonment for not more than five years or payment of a fine of not more than $10,000, or both, if the value of any money, discount, credit, waiver, rebate, good, service, employment, or other item of value solicited, received, offered, or provided is not more than $5,000.

 

Subd. 5.  Aggregation.  In a prosecution under this section, the value of any money, discount, credit, waiver, rebate, good, service, employment, or other item of value solicited, received, offered, or provided within a six-month period may be aggregated and the defendant charged accordingly.  When two or more offenses are committed by the same person in two or more counties, the accused may be prosecuted in any county in which one of the offenses was committed for all of the offenses aggregated under this subdivision.

 

Subd. 6.  False claims.  In addition to the penalties provided in this section, a claim, as defined in section 15C.01, subdivision 2, that includes items or services resulting from a violation of this section constitutes a false or fraudulent claim for purposes of section 15C.02.

 

EFFECTIVE DATE.  This section is effective August 1, 2025, and applies to crimes committed on or after that date.

 

Sec. 33.  Laws 2023, chapter 70, article 7, section 34, the effective date, is amended to read:

 

EFFECTIVE DATE.  This section is effective for background studies requested on or after August 1, 2024 the day following final enactment.

 

Sec. 34.  REPEALER.

 

(a) Minnesota Statutes 2024, section 245A.11, subdivision 8, is repealed.

 

(b) Minnesota Statutes 2024, section 245A.042, subdivisions 2, 3, and 4, are repealed.

 

EFFECTIVE DATE.  Paragraph (a) is effective August 1, 2025.

 

ARTICLE 6

ASSERTIVE COMMUNITY TREATMENT AND INTENSIVE RESIDENTIAL TREATMENT SERVICES RECODIFICATION

 

Section 1.  Minnesota Statutes 2024, section 256B.0622, subdivision 1, is amended to read:

 

Subdivision 1.  Scope.  (a) Subject to federal approval, medical assistance covers medically necessary, assertive community treatment when the services are provided by an entity certified under and meeting the standards in this section.


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(b) Subject to federal approval, medical assistance covers medically necessary, intensive residential treatment services when the services are provided by an entity licensed under and meeting the standards in section 245I.23.

 

(c) (b) 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.

 

Sec. 2.  Minnesota Statutes 2024, section 256B.0622, subdivision 8, is amended to read:

 

Subd. 8.  Medical assistance payment for assertive community treatment and intensive residential treatment services.  (a) Payment for intensive residential treatment services and assertive community treatment in this section shall be based on one daily rate per provider inclusive of the following services received by an eligible client in a given calendar day:  all rehabilitative services under this section, staff travel time to provide rehabilitative services under this section, and nonresidential crisis stabilization services under section 256B.0624.

 

(b) Except as indicated in paragraph (d), payment will not be made to more than one entity for each client for services provided under this section on a given day.  If services under this section are provided by a team that includes staff from more than one entity, the team must determine how to distribute the payment among the members.

 

(c) Payment must not be made based solely on a court order to participate in intensive residential treatment services.  If a client has a court order to participate in the program or to obtain assessment for treatment and follow treatment recommendations, payment under this section must only be provided if the client is eligible for the service and the service is determined to be medically necessary.

 

(d) The commissioner shall determine one rate for each provider that will bill medical assistance for residential services under this section and one rate for each assertive community treatment provider under this section.  If a single entity provides both services intensive residential treatment services under section 256B.0632 and assertive community treatment under this section, one rate is established for the entity's intensive residential treatment services under section 256B.0632 and another rate for the entity's nonresidential assertive community treatment services under this section.  A provider is not eligible for payment under this section without authorization from the commissioner.  The commissioner shall develop rates using the following criteria:

 

(1) the provider's cost for services shall include direct services costs, other program costs, and other costs determined as follows:

 

(i) the direct services costs must be determined using actual costs of salaries, benefits, payroll taxes, and training of direct service staff and service-related transportation;

 

(ii) other program costs not included in item (i) must be determined as a specified percentage of the direct services costs as determined by item (i).  The percentage used shall be determined by the commissioner based upon the average of percentages that represent the relationship of other program costs to direct services costs among the entities that provide similar services;

 

(iii) physical plant costs calculated based on the percentage of space within the program that is entirely devoted to treatment and programming.  This does not include administrative or residential space;

 

(iv) assertive community treatment physical plant costs must be reimbursed as part of the costs described in item (ii); and

 

(v) subject to federal approval, up to an additional five percent of the total rate may be added to the program rate as a quality incentive based upon the entity meeting performance criteria specified by the commissioner;


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(2) actual cost is costs are defined as costs which are allowable, allocable, and reasonable, and consistent with federal reimbursement requirements under Code of Federal Regulations, title 48, chapter 1, part 31, relating to for‑profit entities, and Office of Management and Budget Circular Number A-122 Uniform Guidance under Code of Federal Regulations, title 2, section 200, relating to nonprofit entities;

 

(3) the number of service units;

 

(4) the degree to which clients will receive services other than services under this section or section 256B.0632; and

 

(5) the costs of other services that will be separately reimbursed.

 

(e) The rate for intensive residential treatment services and assertive community treatment must exclude the medical assistance room and board rate, as defined in section 256B.056, subdivision 5d, and services not covered under this section, such as partial hospitalization, home care, and inpatient services.

 

(f) Physician services that are not separately billed may be included in the rate to the extent that a psychiatrist, or other health care professional providing physician services within their scope of practice, is a member of the intensive residential treatment services treatment team.  Physician services, whether billed separately or included in the rate, may be delivered by telehealth.  For purposes of this paragraph, "telehealth" has the meaning given to "mental health telehealth" in section 256B.0625, subdivision 46, when telehealth is used to provide intensive residential treatment services.

 

(g) (f) When services under this section are provided by an assertive community treatment provider, case management functions must be an integral part of the team.

 

(h) (g) The rate for a provider must not exceed the rate charged by that provider for the same service to other payors.

 

(i) (h) The rates for existing programs must be established prospectively based upon the expenditures and utilization over a prior 12-month period using the criteria established in paragraph (d).  The rates for new programs must be established based upon estimated expenditures and estimated utilization using the criteria established in paragraph (d).

 

(j) (i) Effective for the rate years beginning on and after January 1, 2024, rates for assertive community treatment, adult residential crisis stabilization services, and intensive residential treatment services must be annually adjusted for inflation using the Centers for Medicare and Medicaid Services Medicare Economic Index, as forecasted in the third quarter of the calendar year before the rate year.  The inflation adjustment must be based on the 12-month period from the midpoint of the previous rate year to the midpoint of the rate year for which the rate is being determined.  This paragraph expires upon federal approval.

 

(j) Effective upon the expiration of paragraph (i), and effective for the rate years beginning on and after January 1, 2024, rates for assertive community treatment services must be annually adjusted for inflation using the Centers for Medicare and Medicaid Services Medicare Economic Index, as forecasted in the third quarter of the calendar year before the rate year.  The inflation adjustment must be based on the 12-month period from the midpoint of the previous rate year to the midpoint of the rate year for which the rate is being determined.

 

(k) Entities who discontinue providing services must be subject to a settle-up process whereby actual costs and reimbursement for the previous 12 months are compared.  In the event that the entity was paid more than the entity's actual costs plus any applicable performance-related funding due the provider, the excess payment must be reimbursed to the department.  If a provider's revenue is less than actual allowed costs due to lower utilization than projected, the commissioner may reimburse the provider to recover its actual allowable costs.  The resulting adjustments by the commissioner must be proportional to the percent of total units of service reimbursed by the commissioner and must reflect a difference of greater than five percent.


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(l) A provider may request of the commissioner a review of any rate-setting decision made under this subdivision.

 

Sec. 3.  Minnesota Statutes 2024, section 256B.0622, subdivision 11, is amended to read:

 

Subd. 11.  Sustainability grants.  The commissioner may disburse grant funds directly to intensive residential treatment services providers and assertive community treatment providers to maintain access to these services.

 

Sec. 4.  Minnesota Statutes 2024, section 256B.0622, subdivision 12, is amended to read:

 

Subd. 12.  Start-up grants.  The commissioner may, within available appropriations, disburse grant funding to counties, Indian tribes, or mental health service providers to establish additional assertive community treatment teams, intensive residential treatment services, or crisis residential services.

 

Sec. 5.  [256B.0632] INTENSIVE RESIDENTIAL TREATMENT SERVICES.

 

Subdivision 1.  Scope.  (a) Subject to federal approval, medical assistance covers medically necessary, intensive residential treatment services when the services are provided by an entity licensed under and meeting the standards in section 245I.23.

 

(b) 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.

 

Subd. 2.  Provider entity licensure and contract requirements for intensive residential treatment services.  (a) The commissioner shall develop procedures for counties and providers to submit other documentation as needed to allow the commissioner to determine whether the standards in this section are met.

 

(b) A provider entity must specify in the provider entity's application what geographic area and populations will be served by the proposed program.  A provider entity must document that the capacity or program specialties of existing programs are not sufficient to meet the service needs of the target population.  A provider entity must submit evidence of ongoing relationships with other providers and levels of care to facilitate referrals to and from the proposed program.

 

(c) A provider entity must submit documentation that the provider entity requested a statement of need from each county board and Tribal authority that serves as a local mental health authority in the proposed service area.  The statement of need must specify if the local mental health authority supports or does not support the need for the proposed program and the basis for this determination.  If a local mental health authority does not respond within 60 days of the receipt of the request, the commissioner shall determine the need for the program based on the documentation submitted by the provider entity.

 

Subd. 3.  Medical assistance payment for intensive residential treatment services.  (a) Payment for intensive residential treatment services in this section shall be based on one daily rate per provider inclusive of the following services received by an eligible client in a given calendar day:  all rehabilitative services under this section, staff travel time to provide rehabilitative services under this section, and nonresidential crisis stabilization services under section 256B.0624.

 

(b) Except as indicated in paragraph (d), payment will not be made to more than one entity for each client for services provided under this section on a given day.  If services under this section are provided by a team that includes staff from more than one entity, the team must determine how to distribute the payment among the members.


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(c) Payment must not be made based solely on a court order to participate in intensive residential treatment services.  If a client has a court order to participate in the program or to obtain assessment for treatment and follow treatment recommendations, payment under this section must only be provided if the client is eligible for the service and the service is determined to be medically necessary.

 

(d) The commissioner shall determine one rate for each provider that will bill medical assistance for intensive residential treatment services under this section.  If a single entity provides both intensive residential treatment services under this section and assertive community treatment under section 256B.0622, one rate is established for the entity's intensive residential treatment services under this section and another rate for the entity's assertive community treatment services under section 256B.0622.  A provider is not eligible for payment under this section without authorization from the commissioner.  The commissioner shall develop rates using the following criteria:

 

(1) the provider's cost for services shall include direct services costs, other program costs, and other costs determined as follows:

 

(i) the direct services costs must be determined using actual costs of salaries, benefits, payroll taxes, and training of direct service staff and service-related transportation;

 

(ii) other program costs not included in item (i) must be determined as a specified percentage of the direct services costs as determined by item (i).  The percentage used shall be determined by the commissioner based upon the average of percentages that represent the relationship of other program costs to direct services costs among the entities that provide similar services;

 

(iii) physical plant costs calculated based on the percentage of space within the program that is entirely devoted to treatment and programming.  This does not include administrative or residential space; and

 

(iv) subject to federal approval, up to an additional five percent of the total rate may be added to the program rate as a quality incentive based upon the entity meeting performance criteria specified by the commissioner;

 

(2) actual costs are defined as costs which are allowable, allocable, and reasonable, and consistent with federal reimbursement requirements under Code of Federal Regulations, title 48, chapter 1, part 31, relating to for-profit entities, and Office of Management and Budget Uniform Guidance under Code of Federal Regulations, title 2, section 200, relating to nonprofit entities;

 

(3) the number of services units;

 

(4) the degree to which clients will receive services other than services under this section or section 256B.0622; and

 

(5) the costs of other services that will be separately reimbursed.

 

(e) The rate for intensive residential treatment services must exclude the medical assistance room and board rate, as defined in section 256B.056, subdivision 5d, and services not covered under this section, such as partial hospitalization, home care, and inpatient services.

 

(f) Physician services that are not separately billed may be included in the rate to the extent that a psychiatrist, or other health care professional providing physician services within their scope of practice, is a member of the intensive residential treatment services treatment team.  Physician services, whether billed separately or included in the rate, may be delivered by telehealth.  For purposes of this paragraph, "telehealth" has the meaning given to "mental health telehealth" in section 256B.0625, subdivision 46, when telehealth is used to provide intensive residential treatment services.


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(g) The rate for a provider must not exceed the rate charged by that provider for the same service to other payors.

 

(h) The rates for existing programs must be established prospectively based upon the expenditures and utilization over a prior 12-month period using the criteria established in paragraph (d).  The rates for new programs must be established based upon estimated expenditures and estimated utilization using the criteria established in paragraph (d).

 

(i) Effective upon the expiration of section 256B.0622, subdivision 8, paragraph (h), and effective for rate years beginning on and after January 1, 2024, rates for intensive residential treatment services and adult residential crisis stabilization services must be annually adjusted for inflation using the Centers for Medicare and Medicaid Services Medicare Economic Index, as forecasted in the third quarter of the calendar year before the rate year.  The inflation adjustment must be based on the 12-month period from the midpoint of the previous rate year to the midpoint of the rate year for which the rate is being determined.

 

(j) Entities who discontinue providing services must be subject to a settle-up process whereby actual costs and reimbursement for the previous 12 months are compared.  In the event that the entity was paid more than the entity's actual costs plus any applicable performance-related funding due the provider, the excess payment must be reimbursed to the department.  If a provider's revenue is less than actual allowed costs due to lower utilization than projected, the commissioner may reimburse the provider to recover its actual allowable costs.  The resulting adjustments by the commissioner must be proportional to the percent of total units of service reimbursed by the commissioner and must reflect a difference of greater than five percent.

 

(k) A provider may request of the commissioner a review of any rate-setting decision made under this subdivision.

 

Subd. 4.  Provider enrollment; rate setting for county-operated entities.  Counties that employ their own staff to provide services under this section shall apply directly to the commissioner for enrollment and rate setting.  In this case, a county contract is not required.

 

Subd. 5.  Provider enrollment; rate setting for specialized program.  A county contract is not required for a provider proposing to serve a subpopulation of eligible clients under the following circumstances:

 

(1) the provider demonstrates that the subpopulation to be served requires a specialized program which is not available from county-approved entities; and

 

(2) the subpopulation to be served is of such a low incidence that it is not feasible to develop a program serving a single county or regional group of counties.

 

Subd. 6.  Sustainability grants.  The commissioner may disburse grant funds directly to intensive residential treatment services providers to maintain access to these services.

 

Subd. 7.  Start-up grants.  The commissioner may, within available appropriations, disburse grant funding to counties, Indian Tribes, or mental health service providers to establish additional intensive residential treatment services and residential crisis services.

 

Sec. 6.  REPEALER.

 

Minnesota Statutes 2024, section 256B.0622, subdivision 4, is repealed.


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ARTICLE 7

ASSERTIVE COMMUNITY TREATMENT AND INTENSIVE RESIDENTIAL TREATMENT SERVICES RECODIFICATION CONFORMING CHANGES

 

Section 1.  Minnesota Statutes 2024, section 148F.11, subdivision 1, is amended to read:

 

Subdivision 1.  Other professionals.  (a) Nothing in this chapter prevents members of other professions or occupations from performing functions for which they are qualified or licensed.  This exception includes, but is not limited to:  licensed physicians; registered nurses; licensed practical nurses; licensed psychologists and licensed psychological practitioners; members of the clergy provided such services are provided within the scope of regular ministries; American Indian medicine men and women; licensed attorneys; probation officers; licensed marriage and family therapists; licensed social workers; social workers employed by city, county, or state agencies; licensed professional counselors; licensed professional clinical counselors; licensed school counselors; registered occupational therapists or occupational therapy assistants; Upper Midwest Indian Council on Addictive Disorders (UMICAD) certified counselors when providing services to Native American people; city, county, or state employees when providing assessments or case management under Minnesota Rules, chapter 9530; and staff persons providing co-occurring substance use disorder treatment in adult mental health rehabilitative programs certified or licensed by the Department of Human Services under section 245I.23, 256B.0622, or 256B.0623, or 256B.0632.

 

(b) Nothing in this chapter prohibits technicians and resident managers in programs licensed by the Department of Human Services from discharging their duties as provided in Minnesota Rules, chapter 9530.

 

(c) Any person who is exempt from licensure under this section must not use a title incorporating the words "alcohol and drug counselor" or "licensed alcohol and drug counselor" or otherwise hold himself or herself out to the public by any title or description stating or implying that he or she is engaged in the practice of alcohol and drug counseling, or that he or she is licensed to engage in the practice of alcohol and drug counseling, unless that person is also licensed as an alcohol and drug counselor.  Persons engaged in the practice of alcohol and drug counseling are not exempt from the board's jurisdiction solely by the use of one of the titles in paragraph (a).

 

Sec. 2.  Minnesota Statutes 2024, section 245.4662, subdivision 1, is amended to read:

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the following terms have the meanings given them.

 

(b) "Community partnership" means a project involving the collaboration of two or more eligible applicants.

 

(c) "Eligible applicant" means an eligible county, Indian tribe, mental health service provider, hospital, or community partnership.  Eligible applicant does not include a state-operated direct care and treatment facility or program under chapters 246 and 246C.

 

(d) "Intensive residential treatment services" has the meaning given in section 256B.0622 256B.0632.

 

(e) "Metropolitan area" means the seven-county metropolitan area, as defined in section 473.121, subdivision 2.

 

Sec. 3.  Minnesota Statutes 2024, section 245.4906, subdivision 2, is amended to read:

 

Subd. 2.  Eligible applicants.  An eligible applicant is a licensed entity or provider that employs a mental health certified peer specialist qualified under section 245I.04, subdivision 10, and that provides services to individuals receiving assertive community treatment or intensive residential treatment services under section 256B.0622, intensive residential treatment services under section 256B.0632, adult rehabilitative mental health services under section 256B.0623, or crisis response services under section 256B.0624.


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Sec. 4.  Minnesota Statutes 2024, section 254B.04, subdivision 1a, is amended to read:

 

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 local agency 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.05, subdivision 5, paragraph (b), 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 9505.0150;

 

(3) is eligible for general assistance, general assistance medical care, or work readiness as determined under Minnesota Rules, parts 9500.1200 to 9500.1318; 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 a local agency under section 254B.04.


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(h) When a county commits a client under chapter 253B to a regional treatment center for substance use disorder services and the client is ineligible for the behavioral health fund, the county is responsible for the payment to the regional treatment center according to section 254B.05, subdivision 4.

 

(i) Persons enrolled in MinnesotaCare are eligible for room and board services when provided through intensive residential treatment services and residential crisis services under section 256B.0622 256B.0632.

 

Sec. 5.  Minnesota Statutes 2024, section 254B.05, subdivision 1a, is amended to read:

 

Subd. 1a.  Room and board provider 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;

 

(8) has staff who are at least 18 years of age and meet the requirements of section 245G.11, subdivision 1, paragraph (b);

 

(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 licensed according to Minnesota Rules, chapter 2960, are exempt from paragraph (a), clauses (5) to (15).


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(c) Programs providing children's mental health crisis admissions and stabilization under section 245.4882, subdivision 6, are eligible vendors of room and board.

 

(d) 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.

 

(e) Licensed programs providing intensive residential treatment services or residential crisis stabilization services pursuant to section 256B.0622 or 256B.0624 or 256B.0632 are eligible vendors of room and board and are exempt from paragraph (a), clauses (6) to (15).

 

(f) 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.

 

Sec. 6.  Minnesota Statutes 2024, section 256.478, subdivision 2, is amended to read:

 

Subd. 2.  Eligibility.  An individual is eligible for the transition to community initiative if the individual can demonstrate that current services are not capable of meeting individual treatment and service needs that can be met in the community with support, and the individual meets at least one of the following criteria:

 

(1) the person meets the criteria under section 256B.092, subdivision 13, or 256B.49, subdivision 24;

 

(2) the person has met treatment objectives and no longer requires a hospital-level care, residential-level care, or a secure treatment setting, but the person's discharge from the Anoka Metro Regional Treatment Center, the Minnesota Forensic Mental Health Program, the Child and Adolescent Behavioral Health Hospital program, a psychiatric residential treatment facility under section 256B.0941, intensive residential treatment services under section 256B.0622 256B.0632, children's residential services under section 245.4882, juvenile detention facility, county supervised building, or a hospital would be substantially delayed without additional resources available through the transitions to community initiative;

 

(3) the person (i) is receiving customized living services reimbursed under section 256B.4914, 24-hour customized living services reimbursed under section 256B.4914, or community residential services reimbursed under section 256B.4914; (ii) expresses a desire to move; and (iii) has received approval from the commissioner; or

 

(4) the person can demonstrate that the person's needs are beyond the scope of current service designs and grant funding can support the inclusion of additional supports for the person to access appropriate treatment and services in the least restrictive environment.

 

Sec. 7.  Minnesota Statutes 2024, section 256B.0615, subdivision 1, is amended to read:

 

Subdivision 1.  Scope.  Medical assistance covers mental health certified peer specialist services, as established in subdivision 2, if provided to recipients who are eligible for services under sections 256B.0622, 256B.0623, and 256B.0624, and 256B.0632 and are provided by a mental health certified peer specialist who has completed the training under subdivision 5 and is qualified according to section 245I.04, subdivision 10.

 

Sec. 8.  Minnesota Statutes 2024, section 256B.0615, subdivision 3, is amended to read:

 

Subd. 3.  Eligibility.  Peer support services may be made available to consumers of (1) intensive residential treatment services under section 256B.0622 256B.0632; (2) adult rehabilitative mental health services under section 256B.0623; and (3) crisis stabilization and mental health mobile crisis intervention services under section 256B.0624.


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Sec. 9.  Minnesota Statutes 2024, section 256B.82, is amended to read:

 

256B.82 PREPAID PLANS AND MENTAL HEALTH REHABILITATIVE SERVICES.

 

Medical assistance and MinnesotaCare prepaid health plans may include coverage for adult mental health rehabilitative services under section 256B.0623, intensive rehabilitative services under section 256B.0622 256B.0632, and adult mental health crisis response services under section 256B.0624, beginning January 1, 2005.

 

By January 15, 2004, the commissioner shall report to the legislature how these services should be included in prepaid plans.  The commissioner shall consult with mental health advocates, health plans, and counties in developing this report.  The report recommendations must include a plan to ensure coordination of these services between health plans and counties, assure recipient access to essential community providers, and monitor the health plans' delivery of services through utilization review and quality standards.

 

Sec. 10.  Minnesota Statutes 2024, section 256D.44, subdivision 5, is amended to read:

 

Subd. 5.  Special needs.  (a) In addition to the state standards of assistance established in subdivisions 1 to 4, payments are allowed for the following special needs of recipients of Minnesota supplemental aid who are not residents of a nursing home, a regional treatment center, or a setting authorized to receive housing support payments under chapter 256I.

 

(b) The county agency shall pay a monthly allowance for medically prescribed diets if the cost of those additional dietary needs cannot be met through some other maintenance benefit.  The need for special diets or dietary items must be prescribed by a licensed physician, advanced practice registered nurse, or physician assistant.  Costs for special diets shall be determined as percentages of the allotment for a one-person household under the thrifty food plan as defined by the United States Department of Agriculture.  The types of diets and the percentages of the thrifty food plan that are covered are as follows:

 

(1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan;

 

(2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent of thrifty food plan;

 

(3) controlled protein diet, less than 40 grams and requires special products, 125 percent of thrifty food plan;

 

(4) low cholesterol diet, 25 percent of thrifty food plan;

 

(5) high residue diet, 20 percent of thrifty food plan;

 

(6) pregnancy and lactation diet, 35 percent of thrifty food plan;

 

(7) gluten-free diet, 25 percent of thrifty food plan;

 

(8) lactose-free diet, 25 percent of thrifty food plan;

 

(9) antidumping diet, 15 percent of thrifty food plan;

 

(10) hypoglycemic diet, 15 percent of thrifty food plan; or

 

(11) ketogenic diet, 25 percent of thrifty food plan.


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(c) Payment for nonrecurring special needs must be allowed for necessary home repairs or necessary repairs or replacement of household furniture and appliances using the payment standard of the AFDC program in effect on July 16, 1996, for these expenses, as long as other funding sources are not available.

 

(d) A fee for guardian or conservator service is allowed at a reasonable rate negotiated by the county or approved by the court.  This rate shall not exceed five percent of the assistance unit's gross monthly income up to a maximum of $100 per month.  If the guardian or conservator is a member of the county agency staff, no fee is allowed.

 

(e) The county agency shall continue to pay a monthly allowance of $68 for restaurant meals for a person who was receiving a restaurant meal allowance on June 1, 1990, and who eats two or more meals in a restaurant daily.  The allowance must continue until the person has not received Minnesota supplemental aid for one full calendar month or until the person's living arrangement changes and the person no longer meets the criteria for the restaurant meal allowance, whichever occurs first.

 

(f) A fee equal to the maximum monthly amount allowed by the Social Security Administration is allowed for representative payee services provided by an agency that meets the requirements under SSI regulations to charge a fee for representative payee services.  This special need is available to all recipients of Minnesota supplemental aid regardless of their living arrangement.

 

(g)(1) Notwithstanding the language in this subdivision, an amount equal to one-half of the maximum federal Supplemental Security Income payment amount for a single individual which is in effect on the first day of July of each year will be added to the standards of assistance established in subdivisions 1 to 4 for adults under the age of 65 who qualify as in need of housing assistance and are:

 

(i) relocating from an institution, a setting authorized to receive housing support under chapter 256I, or an adult mental health residential treatment program under section 256B.0622 256B.0632;

 

(ii) eligible for personal care assistance under section 256B.0659; or

 

(iii) home and community-based waiver recipients living in their own home or rented or leased apartment.

 

(2) Notwithstanding subdivision 3, paragraph (c), an individual eligible for the shelter needy benefit under this paragraph is considered a household of one.  An eligible individual who receives this benefit prior to age 65 may continue to receive the benefit after the age of 65.

 

(3) "Housing assistance" means that the assistance unit incurs monthly shelter costs that exceed 40 percent of the assistance unit's gross income before the application of this special needs standard.  "Gross income" for the purposes of this section is the applicant's or recipient's income as defined in section 256D.35, subdivision 10, or the standard specified in subdivision 3, paragraph (a) or (b), whichever is greater.  A recipient of a federal or state housing subsidy, that limits shelter costs to a percentage of gross income, shall not be considered in need of housing assistance for purposes of this paragraph.

 

ARTICLE 8

CHILDREN'S MENTAL HEALTH TERMINOLOGY

 

Section 1.  Minnesota Statutes 2024, section 62Q.527, subdivision 1, is amended to read:

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the following terms have the meanings given them.

 

(b) "Emotional disturbance" has the meaning given in section 245.4871, subdivision 15.


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(c)
(b) "Mental illness" has the meaning given in section sections 245.462, subdivision 20, paragraph (a), and 245.4871, subdivision 15.

 

(d) (c) "Health plan" has the meaning given in section 62Q.01, subdivision 3, but includes the coverages described in section 62A.011, subdivision 3, clauses (7) and (10).

 

Sec. 2.  Minnesota Statutes 2024, section 62Q.527, subdivision 2, is amended to read:

 

Subd. 2.  Required coverage for antipsychotic drugs.  (a) A health plan that provides prescription drug coverage must provide coverage for an antipsychotic drug prescribed to treat emotional disturbance or mental illness regardless of whether the drug is in the health plan's drug formulary, if the health care provider prescribing the drug:

 

(1) indicates to the dispensing pharmacist, orally or in writing according to section 151.21, that the prescription must be dispensed as communicated; and

 

(2) certifies in writing to the health plan company that the health care provider has considered all equivalent drugs in the health plan's drug formulary and has determined that the drug prescribed will best treat the patient's condition.

 

(b) The health plan is not required to provide coverage for a drug if the drug was removed from the health plan's drug formulary for safety reasons.

 

(c) For drugs covered under this section, no health plan company that has received a certification from the health care provider as described in paragraph (a) may:

 

(1) impose a special deductible, co-payment, coinsurance, or other special payment requirement that the health plan does not apply to drugs that are in the health plan's drug formulary; or

 

(2) require written certification from the prescribing provider each time a prescription is refilled or renewed that the drug prescribed will best treat the patient's condition.

 

Sec. 3.  Minnesota Statutes 2024, section 62Q.527, subdivision 3, is amended to read:

 

Subd. 3.  Continuing care.  (a) Enrollees receiving a prescribed drug to treat a diagnosed mental illness or emotional disturbance may continue to receive the prescribed drug for up to one year without the imposition of a special deductible, co-payment, coinsurance, or other special payment requirements, when a health plan's drug formulary changes or an enrollee changes health plans and the medication has been shown to effectively treat the patient's condition.  In order to be eligible for this continuing care benefit:

 

(1) the patient must have been treated with the drug for 90 days prior to a change in a health plan's drug formulary or a change in the enrollee's health plan;

 

(2) the health care provider prescribing the drug indicates to the dispensing pharmacist, orally or in writing according to section 151.21, that the prescription must be dispensed as communicated; and

 

(3) the health care provider prescribing the drug certifies in writing to the health plan company that the drug prescribed will best treat the patient's condition.

 

(b) The continuing care benefit shall be extended annually when the health care provider prescribing the drug:

 

(1) indicates to the dispensing pharmacist, orally or in writing according to section 151.21, that the prescription must be dispensed as communicated; and


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(2) certifies in writing to the health plan company that the drug prescribed will best treat the patient's condition.

 

(c) The health plan company is not required to provide coverage for a drug if the drug was removed from the health plan's drug formulary for safety reasons.

 

Sec. 4.  Minnesota Statutes 2024, section 121A.61, subdivision 3, is amended to read:

 

Subd. 3.  Policy components.  The policy must include at least the following components:

 

(a) rules governing student conduct and procedures for informing students of the rules;

 

(b) the grounds for removal of a student from a class;

 

(c) the authority of the classroom teacher to remove students from the classroom pursuant to procedures and rules established in the district's policy;

 

(d) the procedures for removal of a student from a class by a teacher, school administrator, or other school district employee;

 

(e) the period of time for which a student may be removed from a class, which may not exceed five class periods for a violation of a rule of conduct;

 

(f) provisions relating to the responsibility for and custody of a student removed from a class;

 

(g) the procedures for return of a student to the specified class from which the student has been removed;

 

(h) the procedures for notifying a student and the student's parents or guardian of violations of the rules of conduct and of resulting disciplinary actions;

 

(i) any procedures determined appropriate for encouraging early involvement of parents or guardians in attempts to improve a student's behavior;

 

(j) any procedures determined appropriate for encouraging early detection of behavioral problems;

 

(k) any procedures determined appropriate for referring a student in need of special education services to those services;

 

(l) any procedures determined appropriate for ensuring victims of bullying who respond with behavior not allowed under the school's behavior policies have access to a remedial response, consistent with section 121A.031;

 

(m) the procedures for consideration of whether there is a need for a further assessment or of whether there is a need for a review of the adequacy of a current individualized education program of a student with a disability who is removed from class;

 

(n) procedures for detecting and addressing chemical abuse problems of a student while on the school premises;

 

(o) the minimum consequences for violations of the code of conduct;

 

(p) procedures for immediate and appropriate interventions tied to violations of the code;


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(q) a provision that states that a teacher, school employee, school bus driver, or other agent of a district may use reasonable force in compliance with section 121A.582 and other laws;

 

(r) an agreement regarding procedures to coordinate crisis services to the extent funds are available with the county board responsible for implementing sections 245.487 to 245.4889 for students with a serious emotional disturbance mental illness or other students who have an individualized education program whose behavior may be addressed by crisis intervention;

 

(s) a provision that states a student must be removed from class immediately if the student engages in assault or violent behavior.  For purposes of this paragraph, "assault" has the meaning given it in section 609.02, subdivision 10.  The removal shall be for a period of time deemed appropriate by the principal, in consultation with the teacher;

 

(t) a prohibition on the use of exclusionary practices for early learners as defined in section 121A.425; and

 

(u) a prohibition on the use of exclusionary practices to address attendance and truancy issues.

 

Sec. 5.  Minnesota Statutes 2024, section 128C.02, subdivision 5, is amended to read:

 

Subd. 5.  Rules for open enrollees.  (a) The league shall adopt league rules and regulations governing the athletic participation of pupils attending school in a nonresident district under section 124D.03.

 

(b) Notwithstanding other law or league rule or regulation to the contrary, when a student enrolls in or is readmitted to a recovery-focused high school after successfully completing a licensed program for treatment of alcohol or substance abuse, or mental illness, or emotional disturbance, the student is immediately eligible to participate on the same basis as other district students in the league-sponsored activities of the student's resident school district.  Nothing in this paragraph prohibits the league or school district from enforcing a league or district penalty resulting from the student violating a league or district rule.

 

(c) The league shall adopt league rules making a student with an individualized education program who transfers from one public school to another public school as a reasonable accommodation to reduce barriers to educational access immediately eligible to participate in league-sponsored varsity competition on the same basis as other students in the school to which the student transfers.  The league also must establish guidelines, consistent with this paragraph, for reviewing the 504 plan of a student who transfers between public schools to determine whether the student is immediately eligible to participate in league-sponsored varsity competition on the same basis as other students in the school to which the student transfers.

 

Sec. 6.  Minnesota Statutes 2024, section 142G.02, subdivision 56, is amended to read:

 

Subd. 56.  Learning disabled.  "Learning disabled," for purposes of an extension to the 60-month time limit under section 142G.42, subdivision 4, clause (3), means the person has a disorder in one or more of the psychological processes involved in perceiving, understanding, or using concepts through verbal language or nonverbal means.  Learning disabled does not include learning problems that are primarily the result of visual, hearing, or motor disabilities; developmental disability; emotional disturbance; or mental illness or due to environmental, cultural, or economic disadvantage.

 

Sec. 7.  Minnesota Statutes 2024, section 142G.27, subdivision 4, is amended to read:

 

Subd. 4.  Good cause exemptions for not attending orientation.  (a) The county agency shall not impose the sanction under section 142G.70 if it determines that the participant has good cause for failing to attend orientation.  Good cause exists when:

 

(1) appropriate child care is not available;


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(2) the participant is ill or injured;

 

(3) a family member is ill and needs care by the participant that prevents the participant from attending orientation.  For a caregiver with a child or adult in the household who meets the disability or medical criteria for home care services under section 256B.0659, or a home and community-based waiver services program under chapter 256B, or meets the criteria for severe emotional disturbance serious mental illness under section 245.4871, subdivision 6, or for serious and persistent mental illness under section 245.462, subdivision 20, paragraph (c), good cause also exists when an interruption in the provision of those services occurs which prevents the participant from attending orientation;

 

(4) the caregiver is unable to secure necessary transportation;

 

(5) the caregiver is in an emergency situation that prevents orientation attendance;

 

(6) the orientation conflicts with the caregiver's work, training, or school schedule; or

 

(7) the caregiver documents other verifiable impediments to orientation attendance beyond the caregiver's control.

 

(b) Counties must work with clients to provide child care and transportation necessary to ensure a caregiver has every opportunity to attend orientation.

 

Sec. 8.  Minnesota Statutes 2024, section 142G.42, subdivision 3, is amended to read:

 

Subd. 3.  Ill or incapacitated.  (a) An assistance unit subject to the time limit in section 142G.40, subdivision 1, is eligible to receive months of assistance under a hardship extension if the participant who reached the time limit belongs to any of the following groups:

 

(1) participants who are suffering from an illness, injury, or incapacity which has been certified by a qualified professional when the illness, injury, or incapacity is expected to continue for more than 30 days and severely limits the person's ability to obtain or maintain suitable employment.  These participants must follow the treatment recommendations of the qualified professional certifying the illness, injury, or incapacity;

 

(2) participants whose presence in the home is required as a caregiver because of the illness, injury, or incapacity of another member in the assistance unit, a relative in the household, or a foster child in the household when the illness or incapacity and the need for a person to provide assistance in the home has been certified by a qualified professional and is expected to continue for more than 30 days; or

 

(3) caregivers with a child or an adult in the household who meets the disability or medical criteria for home care services under section 256B.0651, subdivision 1, paragraph (c), or a home and community-based waiver services program under chapter 256B, or meets the criteria for severe emotional disturbance serious mental illness under section 245.4871, subdivision 6, or for serious and persistent mental illness under section 245.462, subdivision 20, paragraph (c).  Caregivers in this category are presumed to be prevented from obtaining or maintaining suitable employment.

 

(b) An assistance unit receiving assistance under a hardship extension under this subdivision may continue to receive assistance as long as the participant meets the criteria in paragraph (a), clause (1), (2), or (3).


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Sec. 9.  Minnesota Statutes 2024, section 245.462, 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 section 245.4711.

 

(b) A case manager must:

 

(1) be skilled in the process of identifying and assessing a wide range of client needs;

 

(2) be knowledgeable about local community resources and how to use those resources for the benefit of the client;

 

(3) be a mental health practitioner as defined in section 245I.04, subdivision 4, or have a bachelor's degree in one of the behavioral sciences or related fields including, but not limited to, social work, psychology, or nursing from an accredited college or university.  A case manager who is not a mental health practitioner and who does not have a bachelor's degree in one of the behavioral sciences or related fields must meet the requirements of paragraph (c); and

 

(4) meet the supervision and continuing education requirements described in paragraphs (d), (e), and (f), as applicable.

 

(c) Case managers without a bachelor's degree must meet one of the requirements in clauses (1) to (3):

 

(1) have three or four years of experience as a case manager associate as defined in this section;

 

(2) be a registered nurse without a bachelor's degree and have 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; or

 

(3) be a person who qualified as a case manager under the 1998 Department of Human Service waiver provision and meet the continuing education and mentoring requirements in this section.

 

(d) A case manager with at least 2,000 hours of supervised experience in the delivery of services to adults with mental illness 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 remaining 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.  Clinical supervision must be documented in the client record.

 

(e) A case manager without 2,000 hours of supervised experience in the delivery of services to adults with mental illness must:

 

(1) receive clinical supervision regarding individual service delivery from a mental health professional at least one hour per week until the requirement of 2,000 hours of experience is met; and

 

(2) complete 40 hours of training approved by the commissioner in case management skills and the characteristics and needs of adults with serious and persistent mental illness.

 

(f) 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 mental illness and mental health services every two years.


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(g) 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 certified peer specialist under section 256B.0615;

 

(iii) be a registered nurse without a bachelor's degree;

 

(iv) within the previous ten years, have three years of life experience with serious and persistent mental illness as defined in subdivision 20; or as a child had severe emotional disturbance a serious mental illness as defined in section 245.4871, subdivision 6; or have three years life experience as a primary caregiver to an adult with serious and persistent mental illness within the previous ten years;

 

(v) have 6,000 hours work experience as a nondegreed state hospital technician; or

 

(vi) have at least 6,000 hours of supervised experience in the delivery of services to persons with mental illness.

 

Individuals meeting one of the criteria in items (i) to (v) may qualify as a case manager after four years of supervised work experience as a case manager associate.  Individuals meeting the criteria in item (vi) may qualify as a case manager after three years of supervised experience as a case manager associate.

 

(h) A case management associate must meet the following supervision, mentoring, and continuing education requirements:

 

(1) have 40 hours of preservice training described under paragraph (e), clause (2);

 

(2) receive at least 40 hours of continuing education in mental illness and mental health services 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.

 

(i) A case management supervisor must meet the criteria for mental health professionals, as specified in subdivision 18.

 

(j) An immigrant who does not have the qualifications specified in this subdivision may provide case management services to adult immigrants with serious and persistent mental illness who are members of the same ethnic group as the case manager if the person:


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(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 a related field including, but not limited to, social work, psychology, or nursing from 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 this subdivision are met.

 

Sec. 10.  Minnesota Statutes 2024, section 245.4682, subdivision 3, is amended to read:

 

Subd. 3.  Projects for coordination of care.  (a) Consistent with section 256B.69 and chapter 256L, the commissioner is authorized to solicit, approve, and implement up to three projects to demonstrate the integration of physical and mental health services within prepaid health plans and their coordination with social services.  The commissioner shall require that each project be based on locally defined partnerships that include at least one health maintenance organization, community integrated service network, or accountable provider network authorized and operating under chapter 62D, 62N, or 62T, or county-based purchasing entity under section 256B.692 that is eligible to contract with the commissioner as a prepaid health plan, and the county or counties within the service area.  Counties shall retain responsibility and authority for social services in these locally defined partnerships.

 

(b) The commissioner, in consultation with consumers, families, and their representatives, shall:

 

(1) determine criteria for approving the projects and use those criteria to solicit proposals for preferred integrated networks.  The commissioner must develop criteria to evaluate the partnership proposed by the county and prepaid health plan to coordinate access and delivery of services.  The proposal must at a minimum address how the partnership will coordinate the provision of:

 

(i) client outreach and identification of health and social service needs paired with expedited access to appropriate resources;

 

(ii) activities to maintain continuity of health care coverage;

 

(iii) children's residential mental health treatment and treatment foster care;

 

(iv) court-ordered assessments and treatments;

 

(v) prepetition screening and commitments under chapter 253B;

 

(vi) assessment and treatment of children identified through mental health screening of child welfare and juvenile corrections cases;

 

(vii) home and community-based waiver services;

 

(viii) assistance with finding and maintaining employment;

 

(ix) housing; and

 

(x) transportation;

 

(2) determine specifications for contracts with prepaid health plans to improve the plan's ability to serve persons with mental health conditions, including specifications addressing:

 

(i) early identification and intervention of physical and behavioral health problems;


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(ii) communication between the enrollee and the health plan;

 

(iii) facilitation of enrollment for persons who are also eligible for a Medicare special needs plan offered by the health plan;

 

(iv) risk screening procedures;

 

(v) health care coordination;

 

(vi) member services and access to applicable protections and appeal processes;

 

(vii) specialty provider networks;

 

(viii) transportation services;

 

(ix) treatment planning; and

 

(x) administrative simplification for providers;

 

(3) begin implementation of the projects no earlier than January 1, 2009, with not more than 40 percent of the statewide population included during calendar year 2009 and additional counties included in subsequent years;

 

(4) waive any administrative rule not consistent with the implementation of the projects;

 

(5) allow potential bidders at least 90 days to respond to the request for proposals; and

 

(6) conduct an independent evaluation to determine if mental health outcomes have improved in that county or counties according to measurable standards designed in consultation with the advisory body established under this subdivision and reviewed by the State Advisory Council on Mental Health.

 

(c) Notwithstanding any statute or administrative rule to the contrary, the commissioner may enroll all persons eligible for medical assistance with serious mental illness or emotional disturbance in the prepaid plan of their choice within the project service area unless:

 

(1) the individual is eligible for home and community-based services for persons with developmental disabilities and related conditions under section 256B.092; or

 

(2) the individual has a basis for exclusion from the prepaid plan under section 256B.69, subdivision 4, other than disability, or mental illness, or emotional disturbance.

 

(d) The commissioner shall involve organizations representing persons with mental illness and their families in the development and distribution of information used to educate potential enrollees regarding their options for health care and mental health service delivery under this subdivision.

 

(e) If the person described in paragraph (c) does not elect to remain in fee-for-service medical assistance, or declines to choose a plan, the commissioner may preferentially assign that person to the prepaid plan participating in the preferred integrated network.  The commissioner shall implement the enrollment changes within a project's service area on the timeline specified in that project's approved application.

 

(f) A person enrolled in a prepaid health plan under paragraphs (c) and (d) may disenroll from the plan at any time.


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(g) The commissioner, in consultation with consumers, families, and their representatives, shall evaluate the projects begun in 2009, and shall refine the design of the service integration projects before expanding the projects.  The commissioner shall report to the chairs of the legislative committees with jurisdiction over mental health services by March 1, 2008, on plans for evaluation of preferred integrated networks established under this subdivision.

 

(h) The commissioner shall apply for any federal waivers necessary to implement these changes.

 

(i) Payment for Medicaid service providers under this subdivision for the months of May and June will be made no earlier than July 1 of the same calendar year.

 

Sec. 11.  Minnesota Statutes 2024, 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 with emotional disturbance 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, and 256B.0623, subdivision 5.

 

(c) Additional county expenditures to make up for the prior year's underspending may be spread out over a two‑year period.

 

Sec. 12.  Minnesota Statutes 2024, section 245.4863, is amended to read:

 

245.4863 INTEGRATED CO-OCCURRING DISORDER TREATMENT.

 

(a) The commissioner shall require individuals who perform substance use disorder assessments to screen clients for co-occurring mental health disorders, and staff who perform mental health diagnostic assessments to screen for co-occurring substance use disorders.  Screening tools must be approved by the commissioner.  If a client screens positive for a co-occurring mental health or substance use disorder, the individual performing the screening must document what actions will be taken in response to the results and whether further assessments must be performed.


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(b) Notwithstanding paragraph (a), screening is not required when:

 

(1) the presence of co-occurring disorders was documented for the client in the past 12 months;

 

(2) the client is currently receiving co-occurring disorders treatment;

 

(3) the client is being referred for co-occurring disorders treatment; or

 

(4) a mental health professional who is competent to perform diagnostic assessments of co-occurring disorders is performing a diagnostic assessment to identify whether the client may have co-occurring mental health and substance use disorders.  If an individual is identified to have co-occurring mental health and substance use disorders, the assessing mental health professional must document what actions will be taken to address the client's co-occurring disorders.

 

(c) The commissioner shall adopt rules as necessary to implement this section.  The commissioner shall ensure that the rules are effective on July 1, 2013, thereby establishing a certification process for integrated dual disorder treatment providers and a system through which individuals receive integrated dual diagnosis treatment if assessed as having both a substance use disorder and either a serious mental illness or emotional disturbance.

 

(d) The commissioner shall apply for any federal waivers necessary to secure, to the extent allowed by law, federal financial participation for the provision of integrated dual diagnosis treatment to persons with co-occurring disorders.

 

Sec. 13.  Minnesota Statutes 2024, section 245.487, subdivision 2, is amended to read:

 

Subd. 2.  Findings.  The legislature finds there is a need for further development of existing clinical services for emotionally disturbed children with mental illness and their families and the creation of new services for this population.  Although the services specified in sections 245.487 to 245.4889 are mental health services, sections 245.487 to 245.4889 emphasize the need for a child-oriented and family-oriented approach of therapeutic programming and the need for continuity of care with other community agencies.  At the same time, sections 245.487 to 245.4889 emphasize the importance of developing special mental health expertise in children's mental health services because of the unique needs of this population.

 

Nothing in sections 245.487 to 245.4889 shall be construed to abridge the authority of the court to make dispositions under chapter 260, but the mental health services due any child with serious and persistent mental illness, as defined in section 245.462, subdivision 20, or with severe emotional disturbance a serious mental illness, as defined in section 245.4871, subdivision 6, shall be made a part of any disposition affecting that child.

 

Sec. 14.  Minnesota Statutes 2024, section 245.4871, subdivision 3, is amended to read:

 

Subd. 3.  Case management services.  "Case management services" means activities that are coordinated with the family community support services and are designed to help the child with severe emotional disturbance serious mental illness and the child's family obtain needed mental health services, social services, educational services, health services, vocational services, recreational services, and related services in the areas of volunteer services, advocacy, transportation, and legal services.  Case management services include assisting in obtaining a comprehensive diagnostic assessment, developing an individual family community support plan, and assisting the child and the child's family in obtaining needed services by coordination with other agencies and assuring continuity of care.  Case managers must assess and reassess the delivery, appropriateness, and effectiveness of services over time.


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Sec. 15.  Minnesota Statutes 2024, 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 severe emotional disturbance serious mental illness and the child's family.

 

(b) A case manager must:

 

(1) have experience and training in working with children;

 

(2) 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 without a bachelor's degree must meet one of the requirements in clauses (1) to (3):

 

(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; or

 

(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.

 

(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.

 

(f) A case manager without 2,000 hours of supervised experience in the delivery of mental health services to children with emotional disturbance mental illness must:

 

(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 severe emotional disturbance 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.


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(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 severe emotional disturbance 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 emotional disturbance 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 emotional disturbances mental illness; hours worked as a mental health behavioral aide I or II under section 256B.0943, subdivision 7, 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 severe emotional disturbance 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.


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(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 severe emotional disturbance 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. 16.  Minnesota Statutes 2024, section 245.4871, subdivision 6, is amended to read:

 

Subd. 6.  Child with severe emotional disturbance serious mental illness.  For purposes of eligibility for case management and family community support services, "child with severe emotional disturbance serious mental illness" means a child who has an emotional disturbance a mental illness and who meets one of the following criteria:

 

(1) the child has been admitted within the last three years or is at risk of being admitted to inpatient treatment or residential treatment for an emotional disturbance a mental illness; or

 

(2) the child is a Minnesota resident and is receiving inpatient treatment or residential treatment for an emotional disturbance a mental illness through the interstate compact; or

 

(3) the child has one of the following as determined by a mental health professional:

 

(i) psychosis or a clinical depression; or

 

(ii) risk of harming self or others as a result of an emotional disturbance a mental illness; or

 

(iii) psychopathological symptoms as a result of being a victim of physical or sexual abuse or of psychic trauma within the past year; or

 

(4) the child, as a result of an emotional disturbance a mental illness, has significantly impaired home, school, or community functioning that has lasted at least one year or that, in the written opinion of a mental health professional, presents substantial risk of lasting at least one year.

 

Sec. 17.  Minnesota Statutes 2024, section 245.4871, subdivision 13, is amended to read:

 

Subd. 13.  Education and prevention services.  (a) "Education and prevention services" means services designed to:

 

(1) educate the general public;

 

(2) increase the understanding and acceptance of problems associated with emotional disturbances children's mental illnesses;


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(3) improve people's skills in dealing with high-risk situations known to affect children's mental health and functioning; and

 

(4) refer specific children or their families with mental health needs to mental health services.

 

(b) The services include distribution to individuals and agencies identified by the county board and the local children's mental health advisory council of information on predictors and symptoms of emotional disturbances mental illnesses, where mental health services are available in the county, and how to access the services.

 

Sec. 18.  Minnesota Statutes 2024, section 245.4871, subdivision 15, is amended to read:

 

Subd. 15.  Emotional disturbance Mental illness.  "Emotional disturbance" "Mental illness" means an organic disorder of the brain or a clinically significant disorder of thought, mood, perception, orientation, memory, or behavior that:

 

(1) is detailed in a diagnostic codes list published by the commissioner; and

 

(2) seriously limits a child's capacity to function in primary aspects of daily living such as personal relations, living arrangements, work, school, and recreation.

 

"Emotional disturbance" Mental illness is a generic term and is intended to reflect all categories of disorder described in the clinical code list published by the commissioner as "usually first evident in childhood or adolescence."

 

Sec. 19.  Minnesota Statutes 2024, section 245.4871, subdivision 17, is amended to read:

 

Subd. 17.  Family community support services.  "Family community support services" means services provided under the treatment supervision of a mental health professional and designed to help each child with severe emotional disturbance serious mental illness to function and remain with the child's family in the community.  Family community support services do not include acute care hospital inpatient treatment, residential treatment services, or regional treatment center services.  Family community support services include:

 

(1) client outreach to each child with severe emotional disturbance serious mental illness and the child's family;

 

(2) medication monitoring where necessary;

 

(3) assistance in developing independent living skills;

 

(4) assistance in developing parenting skills necessary to address the needs of the child with severe emotional disturbance serious mental illness;

 

(5) assistance with leisure and recreational activities;

 

(6) crisis planning, including crisis placement and respite care;

 

(7) professional home-based family treatment;

 

(8) foster care with therapeutic supports;

 

(9) day treatment;


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(10) assistance in locating respite care and special needs day care; and

 

(11) assistance in obtaining potential financial resources, including those benefits listed in section 245.4884, subdivision 5.

 

Sec. 20.  Minnesota Statutes 2024, section 245.4871, subdivision 19, is amended to read:

 

Subd. 19.  Individual family community support plan.  "Individual family community support plan" means a written plan developed by a case manager in conjunction with the family and the child with severe emotional disturbance serious mental illness on the basis of a diagnostic assessment and a functional assessment.  The plan identifies specific services needed by a child and the child's family to:

 

(1) treat the symptoms and dysfunctions determined in the diagnostic assessment;

 

(2) relieve conditions leading to emotional disturbance mental illness and improve the personal well-being of the child;

 

(3) improve family functioning;

 

(4) enhance daily living skills;

 

(5) improve functioning in education and recreation settings;

 

(6) improve interpersonal and family relationships;

 

(7) enhance vocational development; and

 

(8) assist in obtaining transportation, housing, health services, and employment.

 

Sec. 21.  Minnesota Statutes 2024, section 245.4871, subdivision 21, is amended to read:

 

Subd. 21.  Individual treatment plan.  (a) "Individual treatment plan" means the formulation of planned services that are responsive to the needs and goals of a client.  An individual treatment plan must be completed according to section 245I.10, subdivisions 7 and 8.

 

(b) A children's residential facility licensed under Minnesota Rules, chapter 2960, is exempt from the requirements of section 245I.10, subdivisions 7 and 8.  Instead, the individual treatment plan must:

 

(1) include a written plan of intervention, treatment, and services for a child with an emotional disturbance a mental illness that the service provider develops under the clinical supervision of a mental health professional on the basis of a diagnostic assessment;

 

(2) be developed in conjunction with the family unless clinically inappropriate; and

 

(3) identify goals and objectives of treatment, treatment strategy, a schedule for accomplishing treatment goals and objectives, and the individuals responsible for providing treatment to the child with an emotional disturbance a mental illness.


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Sec. 22.  Minnesota Statutes 2024, section 245.4871, subdivision 22, is amended to read:

 

Subd. 22.  Legal representative.  "Legal representative" means a guardian, conservator, or guardian ad litem of a child with an emotional disturbance a mental illness authorized by the court to make decisions about mental health services for the child.

 

Sec. 23.  Minnesota Statutes 2024, section 245.4871, subdivision 28, is amended to read:

 

Subd. 28.  Mental health services.  "Mental health services" means at least all of the treatment services and case management activities that are provided to children with emotional disturbances mental illnesses and are described in sections 245.487 to 245.4889.

 

Sec. 24.  Minnesota Statutes 2024, section 245.4871, subdivision 29, is amended to read:

 

Subd. 29.  Outpatient services.  "Outpatient services" means mental health services, excluding day treatment and community support services programs, provided by or under the treatment supervision of a mental health professional to children with emotional disturbances mental illnesses who live outside a hospital.  Outpatient services include clinical activities such as individual, group, and family therapy; individual treatment planning; diagnostic assessments; medication management; and psychological testing.

 

Sec. 25.  Minnesota Statutes 2024, section 245.4871, subdivision 32, is amended to read:

 

Subd. 32.  Residential treatment.  "Residential treatment" means a 24-hour-a-day program under the treatment supervision of a mental health professional, in a community residential setting other than an acute care hospital or regional treatment center inpatient unit, that must be licensed as a residential treatment program for children with emotional disturbances mental illnesses under Minnesota Rules, parts 2960.0580 to 2960.0700, or other rules adopted by the commissioner.

 

Sec. 26.  Minnesota Statutes 2024, section 245.4871, subdivision 34, is amended to read:

 

Subd. 34.  Therapeutic support of foster care.  "Therapeutic support of foster care" means the mental health training and mental health support services and treatment supervision provided by a mental health professional to foster families caring for children with severe emotional disturbance serious mental illnesses to provide a therapeutic family environment and support for the child's improved functioning.  Therapeutic support of foster care includes services provided under section 256B.0946.

 

Sec. 27.  Minnesota Statutes 2024, section 245.4873, subdivision 2, is amended to read:

 

Subd. 2.  State level; coordination.  The Children's Cabinet, under section 4.045, in consultation with a representative of the Minnesota District Judges Association Juvenile Committee, shall:

 

(1) educate each agency about the policies, procedures, funding, and services for children with emotional disturbances mental illnesses of all agencies represented;

 

(2) develop mechanisms for interagency coordination on behalf of children with emotional disturbances mental illnesses;

 

(3) identify barriers including policies and procedures within all agencies represented that interfere with delivery of mental health services for children;


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(4) recommend policy and procedural changes needed to improve development and delivery of mental health services for children in the agency or agencies they represent; and

 

(5) identify mechanisms for better use of federal and state funding in the delivery of mental health services for children.

 

Sec. 28.  Minnesota Statutes 2024, section 245.4875, subdivision 5, is amended to read:

 

Subd. 5.  Local children's advisory council.  (a) By October 1, 1989, the county board, individually or in conjunction with other county boards, shall establish a local children's mental health advisory council or children's mental health subcommittee of the existing local mental health advisory council or shall include persons on its existing mental health advisory council who are representatives of children's mental health interests.  The following individuals must serve on the local children's mental health advisory council, the children's mental health subcommittee of an existing local mental health advisory council, or be included on an existing mental health advisory council:  (1) at least one person who was in a mental health program as a child or adolescent; (2) at least one parent of a child or adolescent with severe emotional disturbance serious mental illness; (3) one children's mental health professional; (4) representatives of minority populations of significant size residing in the county; (5) a representative of the children's mental health local coordinating council; and (6) one family community support services program representative.

 

(b) The local children's mental health advisory council or children's mental health subcommittee of an existing advisory council shall seek input from parents, former consumers, providers, and others about the needs of children with emotional disturbance mental illness in the local area and services needed by families of these children, and shall meet monthly, unless otherwise determined by the council or subcommittee, but not less than quarterly, to review, evaluate, and make recommendations regarding the local children's mental health system.  Annually, the local children's mental health advisory council or children's mental health subcommittee of the existing local mental health advisory council shall:

 

(1) arrange for input from the local system of care providers regarding coordination of care between the services;

 

(2) identify for the county board the individuals, providers, agencies, and associations as specified in section 245.4877, clause (2); and

 

(3) provide to the county board a report of unmet mental health needs of children residing in the county.

 

(c) The county board shall consider the advice of its local children's mental health advisory council or children's mental health subcommittee of the existing local mental health advisory council in carrying out its authorities and responsibilities.

 

Sec. 29.  Minnesota Statutes 2024, section 245.4876, subdivision 4, is amended to read:

 

Subd. 4.  Referral for case management.  Each provider of emergency services, outpatient treatment, community support services, family community support services, day treatment services, screening under section 245.4885, professional home-based family treatment services, residential treatment facilities, acute care hospital inpatient treatment facilities, or regional treatment center services must inform each child with severe emotional disturbance serious mental illness, and the child's parent or legal representative, of the availability and potential benefits to the child of case management.  The information shall be provided as specified in subdivision 5.  If consent is obtained according to subdivision 5, the provider must refer the child by notifying the county employee designated by the county board to coordinate case management activities of the child's name and address and by informing the child's family of whom to contact to request case management.  The provider must document compliance with this subdivision in the child's record.  The parent or child may directly request case management even if there has been no referral.


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Sec. 30.  Minnesota Statutes 2024, section 245.4876, subdivision 5, is amended to read:

 

Subd. 5.  Consent for services or for release of information.  (a) Although sections 245.487 to 245.4889 require each county board, within the limits of available resources, to make the mental health services listed in those sections available to each child residing in the county who needs them, the county board shall not provide any services, either directly or by contract, unless consent to the services is obtained under this subdivision.  The case manager assigned to a child with a severe emotional disturbance serious mental illness shall not disclose to any person other than the case manager's immediate supervisor and the mental health professional providing clinical supervision of the case manager information on the child, the child's family, or services provided to the child or the child's family without informed written consent unless required to do so by statute or under the Minnesota Government Data Practices Act.  Informed written consent must comply with section 13.05, subdivision 4, paragraph (d), and specify the purpose and use for which the case manager may disclose the information.

 

(b) The consent or authorization must be obtained from the child's parent unless:  (1) the parental rights are terminated; or (2) consent is otherwise provided under sections 144.341 to 144.347; 253B.04, subdivision 1; 260C.148; 260C.151; and 260C.201, subdivision 1, the terms of appointment of a court-appointed guardian or conservator, or federal regulations governing substance use disorder services.

 

Sec. 31.  Minnesota Statutes 2024, section 245.4877, is amended to read:

 

245.4877 EDUCATION AND PREVENTION SERVICES.

 

Education and prevention services must be available to all children residing in the county.  Education and prevention services must be designed to:

 

(1) convey information regarding emotional disturbances mental illnesses, mental health needs, and treatment resources to the general public;

 

(2) at least annually, distribute to individuals and agencies identified by the county board and the local children's mental health advisory council information on predictors and symptoms of emotional disturbances mental illnesses, where mental health services are available in the county, and how to access the services;

 

(3) increase understanding and acceptance of problems associated with emotional disturbances mental illnesses;

 

(4) improve people's skills in dealing with high-risk situations known to affect children's mental health and functioning;

 

(5) prevent development or deepening of emotional disturbances mental illnesses; and

 

(6) refer each child with emotional disturbance mental illness or the child's family with additional mental health needs to appropriate mental health services.

 

Sec. 32.  Minnesota Statutes 2024, section 245.488, subdivision 1, is amended to read:

 

Subdivision 1.  Availability of outpatient services.  (a) County boards must provide or contract for enough outpatient services within the county to meet the needs of each child with emotional disturbance mental illness residing in the county and the child's family.  Services may be provided directly by the county through county‑operated mental health clinics meeting the standards of chapter 245I; by contract with privately operated mental health clinics meeting the standards of chapter 245I; by contract with hospital mental health outpatient


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programs certified by the Joint Commission on Accreditation of Hospital Organizations; or by contract with a mental health professional.  A child or a child's parent may be required to pay a fee based in accordance with section 245.481.  Outpatient services include:

 

(1) conducting diagnostic assessments;

 

(2) conducting psychological testing;

 

(3) developing or modifying individual treatment plans;

 

(4) making referrals and recommending placements as appropriate;

 

(5) treating the child's mental health needs through therapy; and

 

(6) prescribing and managing medication and evaluating the effectiveness of prescribed medication.

 

(b) County boards may request a waiver allowing outpatient services to be provided in a nearby trade area if it is determined that the child requires necessary and appropriate services that are only available outside the county.

 

(c) Outpatient services offered by the county board to prevent placement must be at the level of treatment appropriate to the child's diagnostic assessment.

 

Sec. 33.  Minnesota Statutes 2024, section 245.488, subdivision 3, is amended to read:

 

Subd. 3.  Mental health crisis services.  County boards must provide or contract for mental health crisis services within the county to meet the needs of children with emotional disturbance mental illness residing in the county who are determined, through an assessment by a mental health professional, to be experiencing a mental health crisis or mental health emergency.  The mental health crisis services provided must be medically necessary, as defined in section 62Q.53, subdivision 2, and necessary for the safety of the child or others regardless of the setting.

 

Sec. 34.  Minnesota Statutes 2024, section 245.4881, subdivision 1, is amended to read:

 

Subdivision 1.  Availability of case management services.  (a) The county board shall provide case management services for each child with severe emotional disturbance serious mental illness who is a resident of the county and the child's family who request or consent to the services.  Case management services must be offered to a child with a serious emotional disturbance mental illness who is over the age of 18 consistent with section 245.4875, subdivision 8, or the child's legal representative, provided the child's service needs can be met within the children's service system.  Before discontinuing case management services under this subdivision for children between the ages of 17 and 21, a transition plan must be developed.  The transition plan must be developed with the child and, with the consent of a child age 18 or over, the child's parent, guardian, or legal representative.  The transition plan should include plans for health insurance, housing, education, employment, and treatment.  Staffing ratios must be sufficient to serve the needs of the clients.  The case manager must meet the requirements in section 245.4871, subdivision 4.

 

(b) Except as permitted by law and the commissioner under demonstration projects, case management services provided to children with severe emotional disturbance serious mental illness eligible for medical assistance must be billed to the medical assistance program under sections 256B.02, subdivision 8, and 256B.0625.


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(c) Case management services are eligible for reimbursement under the medical assistance program.  Costs of mentoring, supervision, and continuing education may be included in the reimbursement rate methodology used for case management services under the medical assistance program.

 

Sec. 35.  Minnesota Statutes 2024, section 245.4881, subdivision 4, is amended to read:

 

Subd. 4.  Individual family community support plan.  (a) For each child, the case manager must develop an individual family community support plan that incorporates the child's individual treatment plan.  The individual treatment plan may not be a substitute for the development of an individual family community support plan.  The case manager is responsible for developing the individual family community support plan within 30 days of intake based on a diagnostic assessment and for implementing and monitoring the delivery of services according to the individual family community support plan.  The case manager must review the plan at least every 180 calendar days after it is developed, unless the case manager has received a written request from the child's family or an advocate for the child for a review of the plan every 90 days after it is developed.  To the extent appropriate, the child with severe emotional disturbance serious mental illness, the child's family, advocates, service providers, and significant others must be involved in all phases of development and implementation of the individual family community support plan.  Notwithstanding the lack of an individual family community support plan, the case manager shall assist the child and child's family in accessing the needed services listed in section 245.4884, subdivision 1.

 

(b) The child's individual family community support plan must state:

 

(1) the goals and expected outcomes of each service and criteria for evaluating the effectiveness and appropriateness of the service;

 

(2) the activities for accomplishing each goal;

 

(3) a schedule for each activity; and

 

(4) the frequency of face-to-face contacts by the case manager, as appropriate to client need and the implementation of the individual family community support plan.

 

Sec. 36.  Minnesota Statutes 2024, section 245.4882, subdivision 1, is amended to read:

 

Subdivision 1.  Availability of residential treatment services.  County boards must provide or contract for enough residential treatment services to meet the needs of each child with severe emotional disturbance serious mental illness residing in the county and needing this level of care.  Length of stay is based on the child's residential treatment need and shall be reviewed every 90 days.  Services must be appropriate to the child's age and treatment needs and must be made available as close to the county as possible.  Residential treatment must be designed to:

 

(1) help the child improve family living and social interaction skills;

 

(2) help the child gain the necessary skills to return to the community;

 

(3) stabilize crisis admissions; and

 

(4) work with families throughout the placement to improve the ability of the families to care for children with severe emotional disturbance serious mental illness in the home.


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Sec. 37.  Minnesota Statutes 2024, section 245.4882, subdivision 5, is amended to read:

 

Subd. 5.  Specialized residential treatment services.  The commissioner of human services shall continue efforts to further interagency collaboration to develop a comprehensive system of services, including family community support and specialized residential treatment services for children.  The services shall be designed for children with emotional disturbance mental illness who exhibit violent or destructive behavior and for whom local treatment services are not feasible due to the small number of children statewide who need the services and the specialized nature of the services required.  The services shall be located in community settings.

 

Sec. 38.  Minnesota Statutes 2024, section 245.4884, is amended to read:

 

245.4884 FAMILY COMMUNITY SUPPORT SERVICES.

 

Subdivision 1.  Availability of family community support services.  By July 1, 1991, county boards must provide or contract for sufficient family community support services within the county to meet the needs of each child with severe emotional disturbance serious mental illness who resides in the county and the child's family.  Children or their parents may be required to pay a fee in accordance with section 245.481.

 

Family community support services must be designed to improve the ability of children with severe emotional disturbance serious mental illness to:

 

(1) manage basic activities of daily living;

 

(2) function appropriately in home, school, and community settings;

 

(3) participate in leisure time or community youth activities;

 

(4) set goals and plans;

 

(5) reside with the family in the community;

 

(6) participate in after-school and summer activities;

 

(7) make a smooth transition among mental health and education services provided to children; and

 

(8) make a smooth transition into the adult mental health system as appropriate.

 

In addition, family community support services must be designed to improve overall family functioning if clinically appropriate to the child's needs, and to reduce the need for and use of placements more intensive, costly, or restrictive both in the number of admissions and lengths of stay than indicated by the child's diagnostic assessment.

 

The commissioner of human services shall work with mental health professionals to develop standards for clinical supervision of family community support services.  These standards shall be incorporated in rule and in guidelines for grants for family community support services.

 

Subd. 2.  Day treatment services provided.  (a) Day treatment services must be part of the family community support services available to each child with severe emotional disturbance serious mental illness residing in the county.  A child or the child's parent may be required to pay a fee according to section 245.481.  Day treatment services must be designed to:

 

(1) provide a structured environment for treatment;

 

(2) provide support for residing in the community;


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(3) prevent placements that are more intensive, costly, or restrictive than necessary to meet the child's need;

 

(4) coordinate with or be offered in conjunction with the child's education program;

 

(5) provide therapy and family intervention for children that are coordinated with education services provided and funded by schools; and

 

(6) operate during all 12 months of the year.

 

(b) County boards may request a waiver from including day treatment services if they can document that:

 

(1) alternative services exist through the county's family community support services for each child who would otherwise need day treatment services; and

 

(2) county demographics and geography make the provision of day treatment services cost ineffective and unfeasible.

 

Subd. 3.  Professional home-based family treatment provided.  (a) By January 1, 1991, county boards must provide or contract for sufficient professional home-based family treatment within the county to meet the needs of each child with severe emotional disturbance serious mental illness who is at risk of out-of-home placement residential treatment or therapeutic foster care due to the child's emotional disturbance mental illness or who is returning to the home from out-of-home placement residential treatment or therapeutic foster care.  The child or the child's parent may be required to pay a fee according to section 245.481.  The county board shall require that all service providers of professional home-based family treatment set fee schedules approved by the county board that are based on the child's or family's ability to pay.  The professional home-based family treatment must be designed to assist each child with severe emotional disturbance serious mental illness who is at risk of or who is returning from out-of-home placement residential treatment or therapeutic foster care and the child's family to:

 

(1) improve overall family functioning in all areas of life;

 

(2) treat the child's symptoms of emotional disturbance mental illness that contribute to a risk of out-of-home placement residential treatment or therapeutic foster care;

 

(3) provide a positive change in the emotional, behavioral, and mental well-being of children and their families; and

 

(4) reduce risk of out-of-home placement residential treatment or therapeutic foster care for the identified child with severe emotional disturbance serious mental illness and other siblings or successfully reunify and reintegrate into the family a child returning from out-of-home placement residential treatment or therapeutic foster care due to emotional disturbance mental illness.

 

(b) Professional home-based family treatment must be provided by a team consisting of a mental health professional and others who are skilled in the delivery of mental health services to children and families in conjunction with other human service providers.  The professional home-based family treatment team must maintain flexible hours of service availability and must provide or arrange for crisis services for each family, 24 hours a day, seven days a week.  Case loads for each professional home-based family treatment team must be small enough to permit the delivery of intensive services and to meet the needs of the family.  Professional home-based family treatment providers shall coordinate services and service needs with case managers assigned to children and their families.  The treatment team must develop an individual treatment plan that identifies the specific treatment objectives for both the child and the family.


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Subd. 4.  Therapeutic support of foster care.  By January 1, 1992, county boards must provide or contract for foster care with therapeutic support as defined in section 245.4871, subdivision 34.  Foster families caring for children with severe emotional disturbance serious mental illness must receive training and supportive services, as necessary, at no cost to the foster families within the limits of available resources.

 

Subd. 5.  Benefits assistance.  The county board must offer help to a child with severe emotional disturbance serious mental illness and the child's family in applying for federal benefits, including Supplemental Security Income, medical assistance, and Medicare.

 

Sec. 39.  Minnesota Statutes 2024, section 245.4885, subdivision 1, is amended to read:

 

Subdivision 1.  Admission criteria.  (a) Prior to admission or placement, except in the case of an emergency, all children referred for treatment of severe emotional disturbance serious mental illness in a treatment foster care setting, residential treatment facility, or informally admitted to a regional treatment center shall undergo an assessment to determine the appropriate level of care if county funds are used to pay for the child's services.  An emergency includes when a child is in need of and has been referred for crisis stabilization services under section 245.4882, subdivision 6.  A child who has been referred to residential treatment for crisis stabilization services in a residential treatment center is not required to undergo an assessment under this section.

 

(b) The county board shall determine the appropriate level of care for a child when county-controlled funds are used to pay for the child's residential treatment under this chapter, including residential treatment provided in a qualified residential treatment program as defined in section 260C.007, subdivision 26d.  When a county board does not have responsibility for a child's placement and the child is enrolled in a prepaid health program under section 256B.69, the enrolled child's contracted health plan must determine the appropriate level of care for the child.  When Indian Health Services funds or funds of a tribally owned facility funded under the Indian Self-Determination and Education Assistance Act, Public Law 93-638, are used for the child, the Indian Health Services or 638 tribal health facility must determine the appropriate level of care for the child.  When more than one entity bears responsibility for a child's coverage, the entities shall coordinate level of care determination activities for the child to the extent possible.

 

(c) The child's level of care determination shall determine whether the proposed treatment:

 

(1) is necessary;

 

(2) is appropriate to the child's individual treatment needs;

 

(3) cannot be effectively provided in the child's home; and

 

(4) provides a length of stay as short as possible consistent with the individual child's needs.

 

(d) When a level of care determination is conducted, the county board or other entity may not determine that a screening of a child, referral, or admission to a residential treatment facility is not appropriate solely because services were not first provided to the child in a less restrictive setting and the child failed to make progress toward or meet treatment goals in the less restrictive setting.  The level of care determination must be based on a diagnostic assessment of a child that evaluates the child's family, school, and community living situations; and an assessment of the child's need for care out of the home using a validated tool which assesses a child's functional status and assigns an appropriate level of care to the child.  The validated tool must be approved by the commissioner of human services and may be the validated tool approved for the child's assessment under section 260C.704 if the juvenile treatment screening team recommended placement of the child in a qualified residential treatment program.  If a diagnostic assessment has been completed by a mental health professional within the past 180 days, a new diagnostic assessment need not be completed unless in the opinion of the current treating mental health professional


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the child's mental health status has changed markedly since the assessment was completed.  The child's parent shall be notified if an assessment will not be completed and of the reasons.  A copy of the notice shall be placed in the child's file.  Recommendations developed as part of the level of care determination process shall include specific community services needed by the child and, if appropriate, the child's family, and shall indicate whether these services are available and accessible to the child and the child's family.  The child and the child's family must be invited to any meeting where the level of care determination is discussed and decisions regarding residential treatment are made.  The child and the child's family may invite other relatives, friends, or advocates to attend these meetings.

 

(e) During the level of care determination process, the child, child's family, or child's legal representative, as appropriate, must be informed of the child's eligibility for case management services and family community support services and that an individual family community support plan is being developed by the case manager, if assigned.

 

(f) The level of care determination, placement decision, and recommendations for mental health services must be documented in the child's record and made available to the child's family, as appropriate.

 

Sec. 40.  Minnesota Statutes 2024, 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 emotional disturbances 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;

 

(3) respite care services for children with emotional disturbances mental illness or severe emotional disturbances serious mental illness who are at risk of residential treatment or hospitalization,; who are already in out-of-home placement residential treatment, therapeutic foster care, or in family foster settings as defined in chapter 142B and at risk of change in out-of-home placement foster care or placement in a residential facility or other higher level of care,; who have utilized crisis services or emergency room services,; or who have experienced a loss of in-home staffing support.  Allowable activities and expenses for respite care services are defined under subdivision 4.  A child is not required to have case management services to receive respite care services.  Counties must work to provide access to regularly scheduled respite care;

 

(4) children's mental health crisis services;

 

(5) child-, youth-, and family-specific mobile response and stabilization services models;

 

(6) mental health services for people from cultural and ethnic minorities, including supervision of clinical trainees who are Black, indigenous, or people of color;


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(7) children's mental health screening and follow-up diagnostic assessment and treatment;

 

(8) services to promote and develop the capacity of providers to use evidence-based practices in providing children's mental health services;

 

(9) school-linked mental health services under section 245.4901;

 

(10) building evidence-based mental health intervention capacity for children birth to age five;

 

(11) suicide prevention and counseling services that use text messaging statewide;

 

(12) mental health first aid training;

 

(13) training for parents, collaborative partners, and mental health providers on the impact of adverse childhood experiences and trauma and development of an interactive website to share information and strategies to promote resilience and prevent trauma;

 

(14) transition age services to develop or expand mental health treatment and supports for adolescents and young adults 26 years of age or younger;

 

(15) early childhood mental health consultation;

 

(16) evidence-based interventions for youth at risk of developing or experiencing a first episode of psychosis, and a public awareness campaign on the signs and symptoms of psychosis;

 

(17) psychiatric consultation for primary care practitioners; and

 

(18) providers to begin operations and meet program requirements when establishing a new children's mental health program.  These may be start-up grants.

 

(c) Services under paragraph (b) must be designed to help each child to function and remain with the child's family in the community and delivered consistent with the child's treatment plan.  Transition services to eligible young adults under this paragraph must be designed to foster independent living in the community.

 

(d) As a condition of receiving grant funds, a grantee shall obtain all available third-party reimbursement sources, if applicable.

 

(e) The commissioner may establish and design a pilot program to expand the mobile response and stabilization services model for children, youth, and families.  The commissioner may use grant funding to consult with a qualified expert entity to assist in the formulation of measurable outcomes and explore and position the state to submit a Medicaid state plan amendment to scale the model statewide.

 

Sec. 41.  Minnesota Statutes 2024, section 245.4907, subdivision 2, is amended to read:

 

Subd. 2.  Eligible applicants.  An eligible applicant is a licensed entity or provider that employs a mental health certified peer family specialist qualified under section 245I.04, subdivision 12, and that provides services to families who have a child:

 

(1) with an emotional disturbance a mental illness or severe emotional disturbance serious mental illness under chapter 245;


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(2) receiving inpatient hospitalization under section 256B.0625, subdivision 1;

 

(3) admitted to a residential treatment facility under section 245.4882;

 

(4) receiving children's intensive behavioral health services under section 256B.0946;

 

(5) receiving day treatment or children's therapeutic services and supports under section 256B.0943; or

 

(6) receiving crisis response services under section 256B.0624.

 

Sec. 42.  Minnesota Statutes 2024, section 245.491, subdivision 2, is amended to read:

 

Subd. 2.  Purpose.  The legislature finds that children with mental illnesses or emotional or behavioral disturbances or who are at risk of suffering such disturbances often require services from multiple service systems including mental health, social services, education, corrections, juvenile court, health, and employment and economic development.  In order to better meet the needs of these children, it is the intent of the legislature to establish an integrated children's mental health service system that:

 

(1) allows local service decision makers to draw funding from a single local source so that funds follow clients and eliminates the need to match clients, funds, services, and provider eligibilities;

 

(2) creates a local pool of state, local, and private funds to procure a greater medical assistance federal financial participation;

 

(3) improves the efficiency of use of existing resources;

 

(4) minimizes or eliminates the incentives for cost and risk shifting; and

 

(5) increases the incentives for earlier identification and intervention.

 

The children's mental health integrated fund established under sections 245.491 to 245.495 must be used to develop and support this integrated mental health service system.  In developing this integrated service system, it is not the intent of the legislature to limit any rights available to children and their families through existing federal and state laws.

 

Sec. 43.  Minnesota Statutes 2024, section 245.492, subdivision 3, is amended to read:

 

Subd. 3.  Children with emotional or behavioral disturbances.  "Children with emotional or behavioral disturbances" includes children with emotional disturbances mental illnesses as defined in section 245.4871, subdivision 15, and children with emotional or behavioral disorders as defined in Minnesota Rules, part 3525.1329, subpart 1.

 

Sec. 44.  Minnesota Statutes 2024, section 245.697, subdivision 2a, is amended to read:

 

Subd. 2a.  Subcommittee on Children's Mental Health.  The State Advisory Council on Mental Health (the "advisory council") must have a Subcommittee on Children's Mental Health.  The subcommittee must make recommendations to the advisory council on policies, laws, regulations, and services relating to children's mental health.  Members of the subcommittee must include:

 

(1) the commissioners or designees of the commissioners of the Departments of Human Services, Health, Education, State Planning, and Corrections;


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(2) a designee of the Direct Care and Treatment executive board;

 

(3) the commissioner of commerce or a designee of the commissioner who is knowledgeable about medical insurance issues;

 

(4) at least one representative of an advocacy group for children with emotional disturbances mental illnesses;

 

(5) providers of children's mental health services, including at least one provider of services to preadolescent children, one provider of services to adolescents, and one hospital-based provider;

 

(6) parents of children who have emotional disturbances mental illnesses;

 

(7) a present or former consumer of adolescent mental health services;

 

(8) educators currently working with emotionally disturbed children with mental illnesses;

 

(9) people knowledgeable about the needs of emotionally disturbed children with mental illnesses of minority races and cultures;

 

(10) people experienced in working with emotionally disturbed children with mental illnesses who have committed status offenses;

 

(11) members of the advisory council;

 

(12) one person from the local corrections department and one representative of the Minnesota District Judges Association Juvenile Committee; and

 

(13) county commissioners and social services agency representatives.

 

The chair of the advisory council shall appoint subcommittee members described in clauses (4) to (12) through the process established in section 15.0597.  The chair shall appoint members to ensure a geographical balance on the subcommittee.  Terms, compensation, removal, and filling of vacancies are governed by subdivision 1, except that terms of subcommittee members who are also members of the advisory council are coterminous with their terms on the advisory council.  The subcommittee shall meet at the call of the subcommittee chair who is elected by the subcommittee from among its members.  The subcommittee expires with the expiration of the advisory council.

 

Sec. 45.  Minnesota Statutes 2024, section 245.814, subdivision 3, is amended to read:

 

Subd. 3.  Compensation provisions.  (a) If the commissioner of human services is unable to obtain insurance through ordinary methods for coverage of foster home providers, the appropriation shall be returned to the general fund and the state shall pay claims subject to the following limitations.

 

(a) (b) Compensation shall be provided only for injuries, damage, or actions set forth in subdivision 1.

 

(b) (c) Compensation shall be subject to the conditions and exclusions set forth in subdivision 2.

 

(c) (d) The state shall provide compensation for bodily injury, property damage, or personal injury resulting from the foster home providers activities as a foster home provider while the foster child or adult is in the care, custody, and control of the foster home provider in an amount not to exceed $250,000 for each occurrence.


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(d)
(e) The state shall provide compensation for damage or destruction of property caused or sustained by a foster child or adult in an amount not to exceed $250 for each occurrence.

 

(e) (f) The compensation in paragraphs (c) and (d) and (e) is the total obligation for all damages because of each occurrence regardless of the number of claims made in connection with the same occurrence, but compensation applies separately to each foster home.  The state shall have no other responsibility to provide compensation for any injury or loss caused or sustained by any foster home provider or foster child or foster adult.

 

(g) This coverage is extended as a benefit to foster home providers to encourage care of persons who need out‑of-home the providers' care.  Nothing in this section shall be construed to mean that foster home providers are agents or employees of the state nor does the state accept any responsibility for the selection, monitoring, supervision, or control of foster home providers which is exclusively the responsibility of the counties which shall regulate foster home providers in the manner set forth in the rules of the commissioner of human services.

 

Sec. 46.  Minnesota Statutes 2024, section 245.826, is amended to read:

 

245.826 USE OF RESTRICTIVE TECHNIQUES AND PROCEDURES IN FACILITIES SERVING EMOTIONALLY DISTURBED CHILDREN WITH MENTAL ILLNESSES.

 

When amending rules governing facilities serving emotionally disturbed children with mental illnesses that are licensed under section 245A.09 and Minnesota Rules, parts 2960.0510 to 2960.0530 and 2960.0580 to 2960.0700, the commissioner of human services shall include provisions governing the use of restrictive techniques and procedures.  No provision of these rules may encourage or require the use of restrictive techniques and procedures.  The rules must prohibit:  (1) the application of certain restrictive techniques or procedures in facilities, except as authorized in the child's case plan and monitored by the county caseworker responsible for the child; (2) the use of restrictive techniques or procedures that restrict the clients' normal access to nutritious diet, drinking water, adequate ventilation, necessary medical care, ordinary hygiene facilities, normal sleeping conditions, and necessary clothing; and (3) the use of corporal punishment.  The rule may specify other restrictive techniques and procedures and the specific conditions under which permitted techniques and procedures are to be carried out.

 

Sec. 47.  Minnesota Statutes 2024, section 245.91, subdivision 2, is amended to read:

 

Subd. 2.  Agency.  "Agency" means the divisions, officials, or employees of the state Departments of Human Services, Direct Care and Treatment, Health, and Education, and of local school districts and designated county social service agencies as defined in section 256G.02, subdivision 7, that are engaged in monitoring, providing, or regulating services or treatment for mental illness, developmental disability, or substance use disorder, or emotional disturbance.

 

Sec. 48.  Minnesota Statutes 2024, section 245.91, subdivision 4, is amended to read:

 

Subd. 4.  Facility or program.  "Facility" or "program" means a nonresidential or residential program as defined in section 245A.02, subdivisions 10 and 14, and any agency, facility, or program that provides services or treatment for mental illness, developmental disability, or substance use disorder, or emotional disturbance that is required to be licensed, certified, or registered by the commissioner of human services, health, or education; a sober home as defined in section 254B.01, subdivision 11; peer recovery support services provided by a recovery community organization as defined in section 254B.01, subdivision 8; and an acute care inpatient facility that provides services or treatment for mental illness, developmental disability, or substance use disorder, or emotional disturbance.


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Sec. 49.  Minnesota Statutes 2024, section 245.92, is amended to read:

 

245.92 OFFICE OF OMBUDSMAN; CREATION; QUALIFICATIONS; FUNCTION.

 

The ombudsman for persons receiving services or treatment for mental illness, developmental disability, or substance use disorder, or emotional disturbance shall promote the highest attainable standards of treatment, competence, efficiency, and justice.  The ombudsman may gather information and data about decisions, acts, and other matters of an agency, facility, or program, and shall monitor the treatment of individuals participating in a University of Minnesota Department of Psychiatry clinical drug trial.  The ombudsman is appointed by the governor, serves in the unclassified service, and may be removed only for just cause.  The ombudsman must be selected without regard to political affiliation and must be a person who has knowledge and experience concerning the treatment, needs, and rights of clients, and who is highly competent and qualified.  No person may serve as ombudsman while holding another public office.

 

Sec. 50.  Minnesota Statutes 2024, section 245.94, subdivision 1, is amended to read:

 

Subdivision 1.  Powers.  (a) The ombudsman may prescribe the methods by which complaints to the office are to be made, reviewed, and acted upon.  The ombudsman may not levy a complaint fee.

 

(b) The ombudsman is a health oversight agency as defined in Code of Federal Regulations, title 45, section 164.501.  The ombudsman may access patient records according to Code of Federal Regulations, title 42, section 2.53.  For purposes of this paragraph, "records" has the meaning given in Code of Federal Regulations, title 42, section 2.53(a)(1)(i).

 

(c) The ombudsman may mediate or advocate on behalf of a client.

 

(d) The ombudsman may investigate the quality of services provided to clients and determine the extent to which quality assurance mechanisms within state and county government work to promote the health, safety, and welfare of clients.

 

(e) At the request of a client, or upon receiving a complaint or other information affording reasonable grounds to believe that the rights of one or more clients who may not be capable of requesting assistance have been adversely affected, the ombudsman may gather information and data about and analyze, on behalf of the client, the actions of an agency, facility, or program.

 

(f) The ombudsman may gather, on behalf of one or more clients, records of an agency, facility, or program, or records related to clinical drug trials from the University of Minnesota Department of Psychiatry, if the records relate to a matter that is within the scope of the ombudsman's authority.  If the records are private and the client is capable of providing consent, the ombudsman shall first obtain the client's consent.  The ombudsman is not required to obtain consent for access to private data on clients with developmental disabilities and individuals served by the Minnesota Sex Offender Program.  The ombudsman may also take photographic or videographic evidence while reviewing the actions of an agency, facility, or program, with the consent of the client.  The ombudsman is not required to obtain consent for access to private data on decedents who were receiving services for mental illness, developmental disability, or substance use disorder, or emotional disturbance.  All data collected, created, received, or maintained by the ombudsman are governed by chapter 13 and other applicable law.

 

(g) Notwithstanding any law to the contrary, the ombudsman may subpoena a person to appear, give testimony, or produce documents or other evidence that the ombudsman considers relevant to a matter under inquiry.  The ombudsman may petition the appropriate court in Ramsey County to enforce the subpoena.  A witness who is at a hearing or is part of an investigation possesses the same privileges that a witness possesses in the courts or under the law of this state.  Data obtained from a person under this paragraph are private data as defined in section 13.02, subdivision 12.


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(h) The ombudsman may, at reasonable times in the course of conducting a review, enter and view premises within the control of an agency, facility, or program.

 

(i) The ombudsman may attend Direct Care and Treatment Review Board and Special Review Board proceedings; proceedings regarding the transfer of clients, as defined in section 246.50, subdivision 4, between institutions operated by the Direct Care and Treatment executive board; and, subject to the consent of the affected client, other proceedings affecting the rights of clients.  The ombudsman is not required to obtain consent to attend meetings or proceedings and have access to private data on clients with developmental disabilities and individuals served by the Minnesota Sex Offender Program.

 

(j) The ombudsman shall gather data of agencies, facilities, or programs classified as private or confidential as defined in section 13.02, subdivisions 3 and 12, regarding services provided to clients with developmental disabilities and individuals served by the Minnesota Sex Offender Program.

 

(k) To avoid duplication and preserve evidence, the ombudsman shall inform relevant licensing or regulatory officials before undertaking a review of an action of the facility or program.

 

(l) The Office of Ombudsman shall provide the services of the Civil Commitment Training and Resource Center.

 

(m) The ombudsman shall monitor the treatment of individuals participating in a University of Minnesota Department of Psychiatry clinical drug trial and ensure that all protections for human subjects required by federal law and the Institutional Review Board are provided.

 

(n) Sections 245.91 to 245.97 are in addition to other provisions of law under which any other remedy or right is provided.

 

Sec. 51.  Minnesota Statutes 2024, 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;

 

(8) board and lodge facilities licensed by the commissioner of health that do not provide children's residential services under Minnesota Rules, chapter 2960, mental health or substance use disorder treatment;


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(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 emotional disturbance mental illness;

 

(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.05 to provide care coordination and comprehensive assessment services;

 

(22) a recovery community organization that is an eligible vendor under section 254B.05 to provide peer recovery support services; or

 

(23) programs licensed by the commissioner of children, youth, and families in chapter 142B.

 

(b) For purposes of paragraph (a), clause (6), a building is directly contiguous to a building in which a nonresidential program is located if it shares a common wall with the building in which the nonresidential program is located or is attached to that building by skyway, tunnel, atrium, or common roof.


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(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.

 

Sec. 52.  Minnesota Statutes 2024, section 245A.26, 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) "Clinical trainee" means a staff person who is qualified under section 245I.04, subdivision 6.

 

(c) "License holder" means an individual, organization, or government entity that was issued a license by the commissioner of human services under this chapter for residential mental health treatment for children with emotional disturbance mental illness according to Minnesota Rules, parts 2960.0010 to 2960.0220 and 2960.0580 to 2960.0700, or shelter care services according to Minnesota Rules, parts 2960.0010 to 2960.0120 and 2960.0510 to 2960.0530.

 

(d) "Mental health professional" means an individual who is qualified under section 245I.04, subdivision 2.

 

Sec. 53.  Minnesota Statutes 2024, section 245A.26, subdivision 2, is amended to read:

 

Subd. 2.  Scope and applicability.  (a) This section establishes additional licensing requirements for a children's residential facility to provide children's residential crisis stabilization services to a client who is experiencing a mental health crisis and is in need of residential treatment services.

 

(b) A children's residential facility may provide residential crisis stabilization services only if the facility is licensed to provide:

 

(1) residential mental health treatment for children with emotional disturbance mental illness according to Minnesota Rules, parts 2960.0010 to 2960.0220 and 2960.0580 to 2960.0700; or

 

(2) shelter care services according to Minnesota Rules, parts 2960.0010 to 2960.0120 and 2960.0510 to 2960.0530.

 

(c) If a client receives residential crisis stabilization services for 35 days or fewer in a facility licensed according to paragraph (b), clause (1), the facility is not required to complete a diagnostic assessment or treatment plan under Minnesota Rules, part 2960.0180, subpart 2, and part 2960.0600.

 

(d) If a client receives residential crisis stabilization services for 35 days or fewer in a facility licensed according to paragraph (b), clause (2), the facility is not required to develop a plan for meeting the client's immediate needs under Minnesota Rules, part 2960.0520, subpart 3.

 

Sec. 54.  Minnesota Statutes 2024, section 246C.12, subdivision 4, is amended to read:

 

Subd. 4.  Staff safety training.  The executive board shall require all staff in mental health and support units at regional treatment centers who have contact with persons children or adults with mental illness or severe emotional disturbance to be appropriately trained in violence reduction and violence prevention and shall establish criteria for such training.  Training programs shall be developed with input from consumer advocacy organizations and shall employ violence prevention techniques as preferable to physical interaction.


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Sec. 55.  Minnesota Statutes 2024, section 252.27, subdivision 1, is amended to read:

 

Subdivision 1.  County of financial responsibility.  Whenever any child who has a developmental disability, or a physical disability or emotional disturbance mental illness is in 24-hour care outside the home including respite care, in a facility licensed by the commissioner of human services, the cost of services shall be paid by the county of financial responsibility determined pursuant to chapter 256G.  If the child's parents or guardians do not reside in this state, the cost shall be paid by the responsible governmental agency in the state from which the child came, by the parents or guardians of the child if they are financially able, or, if no other payment source is available, by the commissioner of human services.

 

Sec. 56.  Minnesota Statutes 2024, section 256B.02, subdivision 11, is amended to read:

 

Subd. 11.  Related condition.  "Related condition" means a condition:

 

(1) that is found to be closely related to a developmental disability, including but not limited to cerebral palsy, epilepsy, autism, fetal alcohol spectrum disorder, and Prader-Willi syndrome; and

 

(2) that meets all of the following criteria:

 

(i) is severe and chronic;

 

(ii) results in impairment of general intellectual functioning or adaptive behavior similar to that of persons with developmental disabilities;

 

(iii) requires treatment or services similar to those required for persons with developmental disabilities;

 

(iv) is manifested before the person reaches 22 years of age;

 

(v) is likely to continue indefinitely;

 

(vi) results in substantial functional limitations in three or more of the following areas of major life activity:

 

(A) self-care;

 

(B) understanding and use of language;

 

(C) learning;

 

(D) mobility;

 

(E) self-direction; or

 

(F) capacity for independent living; and

 

(vii) is not attributable to mental illness as defined in section 245.462, subdivision 20, or an emotional disturbance as defined in section 245.4871, subdivision 15.  For purposes of this item, notwithstanding section 245.462, subdivision 20, or 245.4871, subdivision 15, "mental illness" does not include autism or other pervasive developmental disorders.


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Sec. 57.  Minnesota Statutes 2024, section 256B.055, subdivision 12, is amended to read:

 

Subd. 12.  Children with disabilities.  (a) A person is eligible for medical assistance if the person is under age 19 and qualifies as a disabled individual under United States Code, title 42, section 1382c(a), and would be eligible for medical assistance under the state plan if residing in a medical institution, and the child requires a level of care provided in a hospital, nursing facility, or intermediate care facility for persons with developmental disabilities, for whom home care is appropriate, provided that the cost to medical assistance under this section is not more than the amount that medical assistance would pay for if the child resides in an institution.  After the child is determined to be eligible under this section, the commissioner shall review the child's disability under United States Code, title 42, section 1382c(a) and level of care defined under this section no more often than annually and may elect, based on the recommendation of health care professionals under contract with the state medical review team, to extend the review of disability and level of care up to a maximum of four years.  The commissioner's decision on the frequency of continuing review of disability and level of care is not subject to administrative appeal under section 256.045.  The county agency shall send a notice of disability review to the enrollee six months prior to the date the recertification of disability is due.  Nothing in this subdivision shall be construed as affecting other redeterminations of medical assistance eligibility under this chapter and annual cost-effective reviews under this section.

 

(b) For purposes of this subdivision, "hospital" means an institution as defined in section 144.696, subdivision 3, 144.55, subdivision 3, or Minnesota Rules, part 4640.3600, and licensed pursuant to sections 144.50 to 144.58.  For purposes of this subdivision, a child requires a level of care provided in a hospital if the child is determined by the commissioner to need an extensive array of health services, including mental health services, for an undetermined period of time, whose health condition requires frequent monitoring and treatment by a health care professional or by a person supervised by a health care professional, who would reside in a hospital or require frequent hospitalization if these services were not provided, and the daily care needs are more complex than a nursing facility level of care.

 

A child with serious emotional disturbance mental illness requires a level of care provided in a hospital if the commissioner determines that the individual requires 24-hour supervision because the person exhibits recurrent or frequent suicidal or homicidal ideation or behavior, recurrent or frequent psychosomatic disorders or somatopsychic disorders that may become life threatening, recurrent or frequent severe socially unacceptable behavior associated with psychiatric disorder, ongoing and chronic psychosis or severe, ongoing and chronic developmental problems requiring continuous skilled observation, or severe disabling symptoms for which office-centered outpatient treatment is not adequate, and which overall severely impact the individual's ability to function.

 

(c) For purposes of this subdivision, "nursing facility" means a facility which provides nursing care as defined in section 144A.01, subdivision 5, licensed pursuant to sections 144A.02 to 144A.10, which is appropriate if a person is in active restorative treatment; is in need of special treatments provided or supervised by a licensed nurse; or has unpredictable episodes of active disease processes requiring immediate judgment by a licensed nurse.  For purposes of this subdivision, a child requires the level of care provided in a nursing facility if the child is determined by the commissioner to meet the requirements of the preadmission screening assessment document under section 256B.0911, adjusted to address age-appropriate standards for children age 18 and under.

 

(d) For purposes of this subdivision, "intermediate care facility for persons with developmental disabilities" or "ICF/DD" means a program licensed to provide services to persons with developmental disabilities under section 252.28, and chapter 245A, and a physical plant licensed as a supervised living facility under chapter 144, which together are certified by the Minnesota Department of Health as meeting the standards in Code of Federal Regulations, title 42, part 483, for an intermediate care facility which provides services for persons with developmental disabilities who require 24-hour supervision and active treatment for medical, behavioral, or habilitation needs.  For purposes of this subdivision, a child requires a level of care provided in an ICF/DD if the commissioner finds that the child has a developmental disability in accordance with section 256B.092, is in need of a 24-hour plan of care and active treatment similar to persons with developmental disabilities, and there is a reasonable indication that the child will need ICF/DD services.


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(e) For purposes of this subdivision, a person requires the level of care provided in a nursing facility if the person requires 24-hour monitoring or supervision and a plan of mental health treatment because of specific symptoms or functional impairments associated with a serious mental illness or disorder diagnosis, which meet severity criteria for mental health established by the commissioner and published in March 1997 as the Minnesota Mental Health Level of Care for Children and Adolescents with Severe Emotional Disorders.

 

(f) The determination of the level of care needed by the child shall be made by the commissioner based on information supplied to the commissioner by (1) the parent or guardian, (2) the child's physician or physicians, advanced practice registered nurse or advanced practice registered nurses, or physician assistant or physician assistants, and (3) other professionals as requested by the commissioner.  The commissioner shall establish a screening team to conduct the level of care determinations according to this subdivision.

 

(g) If a child meets the conditions in paragraph (b), (c), (d), or (e), the commissioner must assess the case to determine whether:

 

(1) the child qualifies as a disabled individual under United States Code, title 42, section 1382c(a), and would be eligible for medical assistance if residing in a medical institution; and

 

(2) the cost of medical assistance services for the child, if eligible under this subdivision, would not be more than the cost to medical assistance if the child resides in a medical institution to be determined as follows:

 

(i) for a child who requires a level of care provided in an ICF/DD, the cost of care for the child in an institution shall be determined using the average payment rate established for the regional treatment centers that are certified as ICF's/DD;

 

(ii) for a child who requires a level of care provided in an inpatient hospital setting according to paragraph (b), cost-effectiveness shall be determined according to Minnesota Rules, part 9505.3520, items F and G; and

 

(iii) for a child who requires a level of care provided in a nursing facility according to paragraph (c) or (e), cost‑effectiveness shall be determined according to Minnesota Rules, part 9505.3040, except that the nursing facility average rate shall be adjusted to reflect rates which would be paid for children under age 16.  The commissioner may authorize an amount up to the amount medical assistance would pay for a child referred to the commissioner by the preadmission screening team under section 256B.0911.

 

Sec. 58.  Minnesota Statutes 2024, section 256B.0616, subdivision 1, is amended to read:

 

Subdivision 1.  Scope.  Medical assistance covers mental health certified family peer specialists services, as established in subdivision 2, subject to federal approval, if provided to recipients who have an emotional disturbance a mental illness or severe emotional disturbance serious mental illness under chapter 245, and are provided by a mental health certified family peer specialist who has completed the training under subdivision 5 and is qualified according to section 245I.04, subdivision 12.  A family peer specialist cannot provide services to the peer specialist's family.

 

Sec. 59.  Minnesota Statutes 2024, section 256B.0757, subdivision 2, is amended to read:

 

Subd. 2.  Eligible individual.  (a) The commissioner may elect to develop health home models in accordance with United States Code, title 42, section 1396w-4.

 

(b) An individual is eligible for health home services under this section if the individual is eligible for medical assistance under this chapter and has a condition that meets the definition of mental illness as described in section 245.462, subdivision 20, paragraph (a), or emotional disturbance as defined in section 245.4871, subdivision 15, clause (2).  The commissioner shall establish criteria for determining continued eligibility.


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Sec. 60.  Minnesota Statutes 2024, 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 emotional disturbance, as defined in section 245.4871, subdivision 15, or 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.

 

(f) "Day treatment program" for children means a site-based structured mental health program consisting of psychotherapy for three or more individuals and individual or group skills training provided by a team, under the treatment supervision of a mental health professional.

 

(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) "Emotional disturbance" has the meaning given in section 245.4871, subdivision 15.

 

(j) (i) "Individual treatment plan" means the plan described in section 245I.10, subdivisions 7 and 8.

 

(k) (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).

 

(l) (k) "Mental health certified family peer specialist" means a staff person who is qualified according to section 245I.04, subdivision 12.


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(m)
(l) "Mental health practitioner" means a staff person who is qualified according to section 245I.04, subdivision 4.

 

(n) (m) "Mental health professional" means a staff person who is qualified according to section 245I.04, subdivision 2.

 

(o) (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.

 

(p) (o) "Mental illness, " for persons at least age 18 but under age 21, 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.

 

(q) (p) "Psychotherapy" means the treatment described in section 256B.0671, subdivision 11.

 

(r) (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) (r) "Skills training" means individual, family, or group training, delivered by or under the supervision of a mental health professional, designed to facilitate the acquisition of psychosocial skills that are medically necessary to rehabilitate the child to an age-appropriate developmental trajectory heretofore disrupted by a psychiatric illness or to enable the child to self-monitor, compensate for, cope with, counteract, or replace skills deficits or maladaptive skills acquired over the course of a psychiatric illness.  Skills training is subject to the service delivery requirements under subdivision 9, paragraph (b), clause (2).

 

(t) (s) "Standard diagnostic assessment" means the assessment described in section 245I.10, subdivision 6.

 

(u) (t) "Treatment supervision" means the supervision described in section 245I.06.

 

Sec. 61.  Minnesota Statutes 2024, 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 emotional disturbance mental illness or, if the person is between the ages of 18 and 21, whether the person has a mental illness;

 

(2) document children's therapeutic services and supports as medically necessary to address an identified disability, functional impairment, and the individual client's needs and goals; and


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(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. 62.  Minnesota Statutes 2024, section 256B.0943, subdivision 9, is amended to read:

 

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 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;


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(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 to eight clients; or

 

(B) any combination of two mental health professionals, clinical trainees, or mental health practitioners must work with a group of nine to 12 clients;

 

(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 an emotional disturbance or 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.


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Sec. 63.  Minnesota Statutes 2024, section 256B.0943, subdivision 12, is amended to read:

 

Subd. 12.  Excluded services.  The following services are not eligible for medical assistance payment as children's therapeutic services and supports:

 

(1) service components of children's therapeutic services and supports simultaneously provided by more than one provider entity unless prior authorization is obtained;

 

(2) treatment by multiple providers within the same agency at the same clock time, 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;

 

(ii) a social or educational service that does not have or cannot reasonably be expected to have a therapeutic outcome related to the client's emotional disturbance mental illness;

 

(iii) prevention or education programs provided to the community; and

 

(iv) treatment for clients with primary diagnoses of alcohol or other drug abuse.

 

Sec. 64.  Minnesota Statutes 2024, section 256B.0943, subdivision 13, is amended to read:

 

Subd. 13.  Exception to excluded services.  Notwithstanding subdivision 12, up to 15 hours of children's therapeutic services and supports provided within a six-month period to a child with severe emotional disturbance serious mental illness who is residing in a hospital; a residential treatment facility licensed under Minnesota Rules, parts 2960.0580 to 2960.0690; a psychiatric residential treatment facility under section 256B.0625, subdivision 45a; a regional treatment center; or other institutional group setting or who is participating in a program of partial hospitalization are eligible for medical assistance payment if part of the discharge plan.

 

Sec. 65.  Minnesota Statutes 2024, section 256B.0945, subdivision 1, is amended to read:

 

Subdivision 1.  Residential services; provider qualifications.  (a) Counties must arrange to provide residential services for children with severe emotional disturbance serious mental illness according to sections 245.4882, 245.4885, and this section.


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(b) Services must be provided by a facility that is licensed according to section 245.4882 and administrative rules promulgated thereunder, and under contract with the county.

 

(c) Eligible service costs may be claimed for a facility that is located in a state that borders Minnesota if:

 

(1) the facility is the closest facility to the child's home, providing the appropriate level of care; and

 

(2) the commissioner of human services has completed an inspection of the out-of-state program according to the interagency agreement with the commissioner of corrections under section 260B.198, subdivision 11, paragraph (b), and the program has been certified by the commissioner of corrections under section 260B.198, subdivision 11, paragraph (a), to substantially meet the standards applicable to children's residential mental health treatment programs under Minnesota Rules, chapter 2960.  Nothing in this section requires the commissioner of human services to enforce the background study requirements under chapter 245C or the requirements related to prevention and investigation of alleged maltreatment under section 626.557 or chapter 260E.  Complaints received by the commissioner of human services must be referred to the out-of-state licensing authority for possible follow-up.

 

(d) Notwithstanding paragraph (b), eligible service costs may be claimed for an out-of-state inpatient treatment facility if:

 

(1) the facility specializes in providing mental health services to children who are deaf, deafblind, or hard‑of‑hearing and who use American Sign Language as their first language;

 

(2) the facility is licensed by the state in which it is located; and

 

(3) the state in which the facility is located is a member state of the Interstate Compact on Mental Health.

 

Sec. 66.  Minnesota Statutes 2024, section 256B.0946, subdivision 6, is amended to read:

 

Subd. 6.  Excluded services.  (a) Services in clauses (1) to (7) are not covered under this section and are not eligible for medical assistance payment as components of children's intensive behavioral health services, but may be billed separately:

 

(1) inpatient psychiatric hospital treatment;

 

(2) mental health targeted case management;

 

(3) partial hospitalization;

 

(4) medication management;

 

(5) children's mental health day treatment services;

 

(6) crisis response services under section 256B.0624;

 

(7) transportation; and

 

(8) mental health certified family peer specialist services under section 256B.0616.

 

(b) Children receiving intensive behavioral health services are not eligible for medical assistance reimbursement for the following services while receiving children's intensive behavioral health services:

 

(1) psychotherapy and skills training components of children's therapeutic services and supports under section 256B.0943;


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(2) mental health behavioral aide services as defined in section 256B.0943, subdivision 1, paragraph (l) (j);

 

(3) home and community-based waiver services;

 

(4) mental health residential treatment; and

 

(5) medical assistance room and board rate, as defined in section 256B.056, subdivision 5d.

 

Sec. 67.  Minnesota Statutes 2024, 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 (u) (r);

 

(3) crisis planning as defined in section 245.4871, subdivision 9a;

 

(4) medication management provided by a physician, an advanced practice registered nurse with certification in psychiatric and mental health care, or a physician assistant;

 

(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.


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Sec. 68.  Minnesota Statutes 2024, section 256B.69, subdivision 23, is amended to read:

 

Subd. 23.  Alternative services; elderly persons and persons with a disability.  (a) The commissioner may implement demonstration projects to create alternative integrated delivery systems for acute and long-term care services to elderly persons and persons with disabilities as defined in section 256B.77, subdivision 7a, that provide increased coordination, improve access to quality services, and mitigate future cost increases.  The commissioner may seek federal authority to combine Medicare and Medicaid capitation payments for the purpose of such demonstrations and may contract with Medicare-approved special needs plans that are offered by a demonstration provider or by an entity that is directly or indirectly wholly owned or controlled by a demonstration provider to provide Medicaid services.  Medicare funds and services shall be administered according to the terms and conditions of the federal contract and demonstration provisions.  For the purpose of administering medical assistance funds, demonstrations under this subdivision are subject to subdivisions 1 to 22.  The provisions of Minnesota Rules, parts 9500.1450 to 9500.1464, apply to these demonstrations, with the exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, subpart 1, items B and C, which do not apply to persons enrolling in demonstrations under this section.  All enforcement and rulemaking powers available under chapters 62D, 62M, and 62Q are hereby granted to the commissioner of health with respect to Medicare-approved special needs plans with which the commissioner contracts to provide Medicaid services under this section.  An initial open enrollment period may be provided.  Persons who disenroll from demonstrations under this subdivision remain subject to Minnesota Rules, parts 9500.1450 to 9500.1464.  When a person is enrolled in a health plan under these demonstrations and the health plan's participation is subsequently terminated for any reason, the person shall be provided an opportunity to select a new health plan and shall have the right to change health plans within the first 60 days of enrollment in the second health plan.  Persons required to participate in health plans under this section who fail to make a choice of health plan shall not be randomly assigned to health plans under these demonstrations.  Notwithstanding section 256L.12, subdivision 5, and Minnesota Rules, part 9505.5220, subpart 1, item A, if adopted, for the purpose of demonstrations under this subdivision, the commissioner may contract with managed care organizations, including counties, to serve only elderly persons eligible for medical assistance, elderly persons with a disability, or persons with a disability only.  For persons with a primary diagnosis of developmental disability, serious and persistent mental illness, or serious emotional disturbance mental illness in children, the commissioner must ensure that the county authority has approved the demonstration and contracting design.  Enrollment in these projects for persons with disabilities shall be voluntary.  The commissioner shall not implement any demonstration project under this subdivision for persons with a primary diagnosis of developmental disabilities, serious and persistent mental illness, or serious emotional disturbance, mental illness in children without approval of the county board of the county in which the demonstration is being implemented.

 

(b) MS 2009 Supplement [Expired, 2003 c 47 s 4; 2007 c 147 art 7 s 60]

 

(c) Before implementation of a demonstration project for persons with a disability, the commissioner must provide information to appropriate committees of the house of representatives and senate and must involve representatives of affected disability groups in the design of the demonstration projects.

 

(d) A nursing facility reimbursed under the alternative reimbursement methodology in section 256B.434 may, in collaboration with a hospital, clinic, or other health care entity provide services under paragraph (a).  The commissioner shall amend the state plan and seek any federal waivers necessary to implement this paragraph.

 

(e) The commissioner, in consultation with the commissioners of commerce and health, may approve and implement programs for all-inclusive care for the elderly (PACE) according to federal laws and regulations governing that program and state laws or rules applicable to participating providers.  A PACE provider is not required to be licensed or certified as a health plan company as defined in section 62Q.01, subdivision 4.  Persons age 55 and older who have been screened by the county and found to be eligible for services under the elderly waiver or community access for disability inclusion or who are already eligible for Medicaid but meet level of care criteria for receipt of waiver services may choose to enroll in the PACE program.  Medicare and Medicaid services


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will be provided according to this subdivision and federal Medicare and Medicaid requirements governing PACE providers and programs.  PACE enrollees will receive Medicaid home and community-based services through the PACE provider as an alternative to services for which they would otherwise be eligible through home and community-based waiver programs and Medicaid State Plan Services.  The commissioner shall establish Medicaid rates for PACE providers that do not exceed costs that would have been incurred under fee-for-service or other relevant managed care programs operated by the state.

 

(f) The commissioner shall seek federal approval to expand the Minnesota disability health options (MnDHO) program established under this subdivision in stages, first to regional population centers outside the seven-county metro area and then to all areas of the state.  Until July 1, 2009, expansion for MnDHO projects that include home and community-based services is limited to the two projects and service areas in effect on March 1, 2006.  Enrollment in integrated MnDHO programs that include home and community-based services shall remain voluntary.  Costs for home and community-based services included under MnDHO must not exceed costs that would have been incurred under the fee-for-service program.  Notwithstanding whether expansion occurs under this paragraph, in determining MnDHO payment rates and risk adjustment methods, the commissioner must consider the methods used to determine county allocations for home and community-based program participants.  If necessary to reduce MnDHO rates to comply with the provision regarding MnDHO costs for home and community-based services, the commissioner shall achieve the reduction by maintaining the base rate for contract year 2010 for services provided under the community access for disability inclusion waiver at the same level as for contract year 2009.  The commissioner may apply other reductions to MnDHO rates to implement decreases in provider payment rates required by state law.  Effective January 1, 2011, enrollment and operation of the MnDHO program in effect during 2010 shall cease.  The commissioner may reopen the program provided all applicable conditions of this section are met.  In developing program specifications for expansion of integrated programs, the commissioner shall involve and consult the state-level stakeholder group established in subdivision 28, paragraph (d), including consultation on whether and how to include home and community-based waiver programs.  Plans to reopen MnDHO projects shall be presented to the chairs of the house of representatives and senate committees with jurisdiction over health and human services policy and finance prior to implementation.

 

(g) Notwithstanding section 256B.0621, health plans providing services under this section are responsible for home care targeted case management and relocation targeted case management.  Services must be provided according to the terms of the waivers and contracts approved by the federal government.

 

Sec. 69.  Minnesota Statutes 2024, section 256B.77, subdivision 7a, is amended to read:

 

Subd. 7a.  Eligible individuals.  (a) Persons are eligible for the demonstration project as provided in this subdivision.

 

(b) "Eligible individuals" means those persons living in the demonstration site who are eligible for medical assistance and are disabled based on a disability determination under section 256B.055, subdivisions 7 and 12, or who are eligible for medical assistance and have been diagnosed as having:

 

(1) serious and persistent mental illness as defined in section 245.462, subdivision 20;

 

(2) severe emotional disturbance serious mental illness as defined in section 245.4871, subdivision 6; or

 

(3) developmental disability, or being a person with a developmental disability as defined in section 252A.02, or a related condition as defined in section 256B.02, subdivision 11.

 

Other individuals may be included at the option of the county authority based on agreement with the commissioner.


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(c) Eligible individuals include individuals in excluded time status, as defined in chapter 256G.  Enrollees in excluded time at the time of enrollment shall remain in excluded time status as long as they live in the demonstration site and shall be eligible for 90 days after placement outside the demonstration site if they move to excluded time status in a county within Minnesota other than their county of financial responsibility.

 

(d) A person who is a sexual psychopathic personality as defined in section 253D.02, subdivision 15, or a sexually dangerous person as defined in section 253D.02, subdivision 16, is excluded from enrollment in the demonstration project.

 

Sec. 70.  Minnesota Statutes 2024, section 260B.157, subdivision 3, is amended to read:

 

Subd. 3.  Juvenile treatment screening team.  (a) The local social services agency shall establish a juvenile treatment screening team to conduct screenings and prepare case plans under this subdivision.  The team, which may be the team constituted under section 245.4885 or 256B.092 or chapter 254B, shall consist of social workers, juvenile justice professionals, and persons with expertise in the treatment of juveniles who are emotionally disabled, chemically dependent, or have a developmental disability.  The team shall involve parents or guardians in the screening process as appropriate.  The team may be the same team as defined in section 260C.157, subdivision 3.

 

(b) If the court, prior to, or as part of, a final disposition, proposes to place a child:

 

(1) for the primary purpose of treatment for an emotional disturbance mental illness, and residential placement is consistent with section 260.012, a developmental disability, or chemical dependency in a residential treatment facility out of state or in one which is within the state and licensed by the commissioner of human services under chapter 245A; or

 

(2) in any out-of-home setting potentially exceeding 30 days in duration, including a post-dispositional placement in a facility licensed by the commissioner of corrections or human services, the court shall notify the county welfare agency.  The county's juvenile treatment screening team must either:

 

(i) screen and evaluate the child and file its recommendations with the court within 14 days of receipt of the notice; or

 

(ii) elect not to screen a given case, and notify the court of that decision within three working days.

 

(c) If the screening team has elected to screen and evaluate the child, the child may not be placed for the primary purpose of treatment for an emotional disturbance mental illness, a developmental disability, or chemical dependency, in a residential treatment facility out of state nor in a residential treatment facility within the state that is licensed under chapter 245A, unless one of the following conditions applies:

 

(1) a treatment professional certifies that an emergency requires the placement of the child in a facility within the state;

 

(2) the screening team has evaluated the child and recommended that a residential placement is necessary to meet the child's treatment needs and the safety needs of the community, that it is a cost-effective means of meeting the treatment needs, and that it will be of therapeutic value to the child; or

 

(3) the court, having reviewed a screening team recommendation against placement, determines to the contrary that a residential placement is necessary.  The court shall state the reasons for its determination in writing, on the record, and shall respond specifically to the findings and recommendation of the screening team in explaining why the recommendation was rejected.  The attorney representing the child and the prosecuting attorney shall be afforded an opportunity to be heard on the matter.


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Sec. 71.  Minnesota Statutes 2024, section 260C.007, subdivision 16, is amended to read:

 

Subd. 16.  Emotionally disturbed Mental illness.  "Emotionally disturbed Mental illness" means emotional disturbance as described has the meaning given in section 245.4871, subdivision 15.

 

Sec. 72.  Minnesota Statutes 2024, section 260C.007, subdivision 26d, is amended to read:

 

Subd. 26d.  Qualified residential treatment program.  "Qualified residential treatment program" means a children's residential treatment program licensed under chapter 245A or licensed or approved by a tribe that is approved to receive foster care maintenance payments under section 142A.418 that:

 

(1) has a trauma-informed treatment model designed to address the needs of children with serious emotional or behavioral disorders or disturbances or mental illnesses;

 

(2) has registered or licensed nursing staff and other licensed clinical staff who:

 

(i) provide care within the scope of their practice; and

 

(ii) are available 24 hours per day and seven days per week;

 

(3) is accredited by any of the following independent, nonprofit organizations:  the Commission on Accreditation of Rehabilitation Facilities (CARF), the Joint Commission on Accreditation of Healthcare Organizations (JCAHO), and the Council on Accreditation (COA), or any other nonprofit accrediting organization approved by the United States Department of Health and Human Services;

 

(4) if it is in the child's best interests, facilitates participation of the child's family members in the child's treatment programming consistent with the child's out-of-home placement plan under sections 260C.212, subdivision 1, and 260C.708;

 

(5) facilitates outreach to family members of the child, including siblings;

 

(6) documents how the facility facilitates outreach to the child's parents and relatives, as well as documents the child's parents' and other relatives' contact information;

 

(7) documents how the facility includes family members in the child's treatment process, including after the child's discharge, and how the facility maintains the child's sibling connections; and

 

(8) provides the child and child's family with discharge planning and family-based aftercare support for at least six months after the child's discharge.  Aftercare support may include clinical care consultation under section 256B.0671, subdivision 7, and mental health certified family peer specialist services under section 256B.0616.

 

Sec. 73.  Minnesota Statutes 2024, section 260C.007, subdivision 27b, is amended to read:

 

Subd. 27b.  Residential treatment facility.  "Residential treatment facility" means a 24-hour-a-day program that provides treatment for children with emotional disturbance mental illness, consistent with section 245.4871, subdivision 32, and includes a licensed residential program specializing in caring 24 hours a day for children with a developmental delay or related condition.  A residential treatment facility does not include a psychiatric residential treatment facility under section 256B.0941 or a family foster home as defined in section 260C.007, subdivision 16b.


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Sec. 74.  Minnesota Statutes 2024, section 260C.157, subdivision 3, is amended to read:

 

Subd. 3.  Juvenile treatment screening team.  (a) The responsible social services agency shall establish a juvenile treatment screening team to conduct screenings under this chapter and chapter 260D, for a child to receive treatment for an emotional disturbance a mental illness, a developmental disability, or related condition in a residential treatment facility licensed by the commissioner of human services under chapter 245A, or licensed or approved by a tribe.  A screening team is not required for a child to be in:  (1) a residential facility specializing in prenatal, postpartum, or parenting support; (2) a facility specializing in high-quality residential care and supportive services to children and youth who have been or are at risk of becoming victims of sex trafficking or commercial sexual exploitation; (3) supervised settings for youth who are 18 years of age or older and living independently; or (4) a licensed residential family-based treatment facility for substance abuse consistent with section 260C.190.  Screenings are also not required when a child must be placed in a facility due to an emotional crisis or other mental health emergency.

 

(b) The responsible social services agency shall conduct screenings within 15 days of a request for a screening, unless the screening is for the purpose of residential treatment and the child is enrolled in a prepaid health program under section 256B.69, in which case the agency shall conduct the screening within ten working days of a request.  The responsible social services agency shall convene the juvenile treatment screening team, which may be constituted under section 245.4885, 254B.05, or 256B.092.  The team shall consist of social workers; persons with expertise in the treatment of juveniles who are emotionally disturbed, chemically dependent, or have a developmental disability; and the child's parent, guardian, or permanent legal custodian.  The team may include the child's relatives as defined in section 260C.007, subdivisions 26b and 27, the child's foster care provider, and professionals who are a resource to the child's family such as teachers, medical or mental health providers, and clergy, as appropriate, consistent with the family and permanency team as defined in section 260C.007, subdivision 16a.  Prior to forming the team, the responsible social services agency must consult with the child's parents, the child if the child is age 14 or older, and, if applicable, the child's tribe to obtain recommendations regarding which individuals to include on the team and to ensure that the team is family-centered and will act in the child's best interests.  If the child, child's parents, or legal guardians raise concerns about specific relatives or professionals, the team should not include those individuals.  This provision does not apply to paragraph (c).

 

(c) If the agency provides notice to tribes under section 260.761, and the child screened is an Indian child, the responsible social services agency must make a rigorous and concerted effort to include a designated representative of the Indian child's tribe on the juvenile treatment screening team, unless the child's tribal authority declines to appoint a representative.  The Indian child's tribe may delegate its authority to represent the child to any other federally recognized Indian tribe, as defined in section 260.755, subdivision 12.  The provisions of the Indian Child Welfare Act of 1978, United States Code, title 25, sections 1901 to 1963, and the Minnesota Indian Family Preservation Act, sections 260.751 to 260.835, apply to this section.

 

(d) If the court, prior to, or as part of, a final disposition or other court order, proposes to place a child with an emotional disturbance or a mental illness, developmental disability, or related condition in residential treatment, the responsible social services agency must conduct a screening.  If the team recommends treating the child in a qualified residential treatment program, the agency must follow the requirements of sections 260C.70 to 260C.714.

 

The court shall ascertain whether the child is an Indian child and shall notify the responsible social services agency and, if the child is an Indian child, shall notify the Indian child's tribe as paragraph (c) requires.

 

(e) When the responsible social services agency is responsible for placing and caring for the child and the screening team recommends placing a child in a qualified residential treatment program as defined in section 260C.007, subdivision 26d, the agency must:  (1) begin the assessment and processes required in section 260C.704 without delay; and (2) conduct a relative search according to section 260C.221 to assemble the child's family and permanency team under section 260C.706.  Prior to notifying relatives regarding the family and permanency team,


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the responsible social services agency must consult with the child's parent or legal guardian, the child if the child is age 14 or older, and, if applicable, the child's tribe to ensure that the agency is providing notice to individuals who will act in the child's best interests.  The child and the child's parents may identify a culturally competent qualified individual to complete the child's assessment.  The agency shall make efforts to refer the assessment to the identified qualified individual.  The assessment may not be delayed for the purpose of having the assessment completed by a specific qualified individual.

 

(f) When a screening team determines that a child does not need treatment in a qualified residential treatment program, the screening team must:

 

(1) document the services and supports that will prevent the child's foster care placement and will support the child remaining at home;

 

(2) document the services and supports that the agency will arrange to place the child in a family foster home; or

 

(3) document the services and supports that the agency has provided in any other setting.

 

(g) When the Indian child's tribe or tribal health care services provider or Indian Health Services provider proposes to place a child for the primary purpose of treatment for an emotional disturbance a mental illness, a developmental disability, or co-occurring emotional disturbance mental illness and chemical dependency, the Indian child's tribe or the tribe delegated by the child's tribe shall submit necessary documentation to the county juvenile treatment screening team, which must invite the Indian child's tribe to designate a representative to the screening team.

 

(h) The responsible social services agency must conduct and document the screening in a format approved by the commissioner of human services.

 

Sec. 75.  Minnesota Statutes 2024, section 260C.201, subdivision 1, is amended to read:

 

Subdivision 1.  Dispositions.  (a) If the court finds that the child is in need of protection or services or neglected and in foster care, the court shall enter an order making any of the following dispositions of the case:

 

(1) place the child under the protective supervision of the responsible social services agency or child-placing agency in the home of a parent of the child under conditions prescribed by the court directed to the correction of the child's need for protection or services:

 

(i) the court may order the child into the home of a parent who does not otherwise have legal custody of the child, however, an order under this section does not confer legal custody on that parent;

 

(ii) if the court orders the child into the home of a father who is not adjudicated, the father must cooperate with paternity establishment proceedings regarding the child in the appropriate jurisdiction as one of the conditions prescribed by the court for the child to continue in the father's home; and

 

(iii) the court may order the child into the home of a noncustodial parent with conditions and may also order both the noncustodial and the custodial parent to comply with the requirements of a case plan under subdivision 2; or

 

(2) transfer legal custody to one of the following:

 

(i) a child-placing agency; or


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(ii) the responsible social services agency.  In making a foster care placement of a child whose custody has been transferred under this subdivision, the agency shall make an individualized determination of how the placement is in the child's best interests using the placement consideration order for relatives and the best interest factors in section 260C.212, subdivision 2, and may include a child colocated with a parent in a licensed residential family-based substance use disorder treatment program under section 260C.190; or

 

(3) order a trial home visit without modifying the transfer of legal custody to the responsible social services agency under clause (2).  Trial home visit means the child is returned to the care of the parent or guardian from whom the child was removed for a period not to exceed six months.  During the period of the trial home visit, the responsible social services agency:

 

(i) shall continue to have legal custody of the child, which means that the agency may see the child in the parent's home, at school, in a child care facility, or other setting as the agency deems necessary and appropriate;

 

(ii) shall continue to have the ability to access information under section 260C.208;

 

(iii) shall continue to provide appropriate services to both the parent and the child during the period of the trial home visit;

 

(iv) without previous court order or authorization, may terminate the trial home visit in order to protect the child's health, safety, or welfare and may remove the child to foster care;

 

(v) shall advise the court and parties within three days of the termination of the trial home visit when a visit is terminated by the responsible social services agency without a court order; and

 

(vi) shall prepare a report for the court when the trial home visit is terminated whether by the agency or court order that describes the child's circumstances during the trial home visit and recommends appropriate orders, if any, for the court to enter to provide for the child's safety and stability.  In the event a trial home visit is terminated by the agency by removing the child to foster care without prior court order or authorization, the court shall conduct a hearing within ten days of receiving notice of the termination of the trial home visit by the agency and shall order disposition under this subdivision or commence permanency proceedings under sections 260C.503 to 260C.515.  The time period for the hearing may be extended by the court for good cause shown and if it is in the best interests of the child as long as the total time the child spends in foster care without a permanency hearing does not exceed 12 months;

 

(4) if the child has been adjudicated as a child in need of protection or services because the child is in need of special services or care to treat or ameliorate a physical or mental disability or emotional disturbance a mental illness as defined in section 245.4871, subdivision 15, the court may order the child's parent, guardian, or custodian to provide it.  The court may order the child's health plan company to provide mental health services to the child.  Section 62Q.535 applies to an order for mental health services directed to the child's health plan company.  If the health plan, parent, guardian, or custodian fails or is unable to provide this treatment or care, the court may order it provided.  Absent specific written findings by the court that the child's disability is the result of abuse or neglect by the child's parent or guardian, the court shall not transfer legal custody of the child for the purpose of obtaining special treatment or care solely because the parent is unable to provide the treatment or care.  If the court's order for mental health treatment is based on a diagnosis made by a treatment professional, the court may order that the diagnosing professional not provide the treatment to the child if it finds that such an order is in the child's best interests; or

 

(5) if the court believes that the child has sufficient maturity and judgment and that it is in the best interests of the child, the court may order a child 16 years old or older to be allowed to live independently, either alone or with others as approved by the court under supervision the court considers appropriate, if the county board, after consultation with the court, has specifically authorized this dispositional alternative for a child.


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(b) If the child was adjudicated in need of protection or services because the child is a runaway or habitual truant, the court may order any of the following dispositions in addition to or as alternatives to the dispositions authorized under paragraph (a):

 

(1) counsel the child or the child's parents, guardian, or custodian;

 

(2) place the child under the supervision of a probation officer or other suitable person in the child's own home under conditions prescribed by the court, including reasonable rules for the child's conduct and the conduct of the parents, guardian, or custodian, designed for the physical, mental, and moral well-being and behavior of the child;

 

(3) subject to the court's supervision, transfer legal custody of the child to one of the following:

 

(i) a reputable person of good moral character.  No person may receive custody of two or more unrelated children unless licensed to operate a residential program under sections 245A.01 to 245A.16; or

 

(ii) a county probation officer for placement in a group foster home established under the direction of the juvenile court and licensed pursuant to section 241.021;

 

(4) require the child to pay a fine of up to $100.  The court shall order payment of the fine in a manner that will not impose undue financial hardship upon the child;

 

(5) require the child to participate in a community service project;

 

(6) order the child to undergo a chemical dependency evaluation and, if warranted by the evaluation, order participation by the child in a drug awareness program or an inpatient or outpatient chemical dependency treatment program;

 

(7) if the court believes that it is in the best interests of the child or of public safety that the child's driver's license or instruction permit be canceled, the court may order the commissioner of public safety to cancel the child's license or permit for any period up to the child's 18th birthday.  If the child does not have a driver's license or permit, the court may order a denial of driving privileges for any period up to the child's 18th birthday.  The court shall forward an order issued under this clause to the commissioner, who shall cancel the license or permit or deny driving privileges without a hearing for the period specified by the court.  At any time before the expiration of the period of cancellation or denial, the court may, for good cause, order the commissioner of public safety to allow the child to apply for a license or permit, and the commissioner shall so authorize;

 

(8) order that the child's parent or legal guardian deliver the child to school at the beginning of each school day for a period of time specified by the court; or

 

(9) require the child to perform any other activities or participate in any other treatment programs deemed appropriate by the court.

 

To the extent practicable, the court shall enter a disposition order the same day it makes a finding that a child is in need of protection or services or neglected and in foster care, but in no event more than 15 days after the finding unless the court finds that the best interests of the child will be served by granting a delay.  If the child was under eight years of age at the time the petition was filed, the disposition order must be entered within ten days of the finding and the court may not grant a delay unless good cause is shown and the court finds the best interests of the child will be served by the delay.

 

(c) If a child who is 14 years of age or older is adjudicated in need of protection or services because the child is a habitual truant and truancy procedures involving the child were previously dealt with by a school attendance review board or county attorney mediation program under section 260A.06 or 260A.07, the court shall order a cancellation or denial of driving privileges under paragraph (b), clause (7), for any period up to the child's 18th birthday.


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(d) In the case of a child adjudicated in need of protection or services because the child has committed domestic abuse and been ordered excluded from the child's parent's home, the court shall dismiss jurisdiction if the court, at any time, finds the parent is able or willing to provide an alternative safe living arrangement for the child as defined in paragraph (f).

 

(e) When a parent has complied with a case plan ordered under subdivision 6 and the child is in the care of the parent, the court may order the responsible social services agency to monitor the parent's continued ability to maintain the child safely in the home under such terms and conditions as the court determines appropriate under the circumstances.

 

(f) For the purposes of this subdivision, "alternative safe living arrangement" means a living arrangement for a child proposed by a petitioning parent or guardian if a court excludes the minor from the parent's or guardian's home that is separate from the victim of domestic abuse and safe for the child respondent.  A living arrangement proposed by a petitioning parent or guardian is presumed to be an alternative safe living arrangement absent information to the contrary presented to the court.  In evaluating any proposed living arrangement, the court shall consider whether the arrangement provides the child with necessary food, clothing, shelter, and education in a safe environment.  Any proposed living arrangement that would place the child in the care of an adult who has been physically or sexually violent is presumed unsafe.

 

Sec. 76.  Minnesota Statutes 2024, section 260C.201, subdivision 2, is amended to read:

 

Subd. 2.  Written findings.  (a) Any order for a disposition authorized under this section shall contain written findings of fact to support the disposition and case plan ordered and shall also set forth in writing the following information:

 

(1) why the best interests and safety of the child are served by the disposition and case plan ordered;

 

(2) what alternative dispositions or services under the case plan were considered by the court and why such dispositions or services were not appropriate in the instant case;

 

(3) when legal custody of the child is transferred, the appropriateness of the particular placement made or to be made by the placing agency using the relative and sibling placement considerations and best interest factors in section 260C.212, subdivision 2, or the appropriateness of a child colocated with a parent in a licensed residential family-based substance use disorder treatment program under section 260C.190;

 

(4) whether reasonable efforts to finalize the permanent plan for the child consistent with section 260.012 were made including reasonable efforts:

 

(i) to prevent the child's placement and to reunify the child with the parent or guardian from whom the child was removed at the earliest time consistent with the child's safety.  The court's findings must include a brief description of what preventive and reunification efforts were made and why further efforts could not have prevented or eliminated the necessity of removal or that reasonable efforts were not required under section 260.012 or 260C.178, subdivision 1;

 

(ii) to identify and locate any noncustodial or nonresident parent of the child and to assess such parent's ability to provide day-to-day care of the child, and, where appropriate, provide services necessary to enable the noncustodial or nonresident parent to safely provide day-to-day care of the child as required under section 260C.219, unless such services are not required under section 260.012 or 260C.178, subdivision 1.  The court's findings must include a description of the agency's efforts to:

 

(A) identify and locate the child's noncustodial or nonresident parent;


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(B) assess the noncustodial or nonresident parent's ability to provide day-to-day care of the child; and

 

(C) if appropriate, provide services necessary to enable the noncustodial or nonresident parent to safely provide the child's day-to-day care, including efforts to engage the noncustodial or nonresident parent in assuming care and responsibility of the child;

 

(iii) to make the diligent search for relatives and provide the notices required under section 260C.221; a finding made pursuant to a hearing under section 260C.202 that the agency has made diligent efforts to conduct a relative search and has appropriately engaged relatives who responded to the notice under section 260C.221 and other relatives, who came to the attention of the agency after notice under section 260C.221 was sent, in placement and case planning decisions fulfills the requirement of this item;

 

(iv) to identify and make a foster care placement of the child, considering the order in section 260C.212, subdivision 2, paragraph (a), in the home of an unlicensed relative, according to the requirements of section 142B.06, a licensed relative, or other licensed foster care provider, who will commit to being the permanent legal parent or custodian for the child in the event reunification cannot occur, but who will actively support the reunification plan for the child.  If the court finds that the agency has not appropriately considered relatives for placement of the child, the court shall order the agency to comply with section 260C.212, subdivision 2, paragraph (a).  The court may order the agency to continue considering relatives for placement of the child regardless of the child's current placement setting; and

 

(v) to place siblings together in the same home or to ensure visitation is occurring when siblings are separated in foster care placement and visitation is in the siblings' best interests under section 260C.212, subdivision 2, paragraph (d); and

 

(5) if the child has been adjudicated as a child in need of protection or services because the child is in need of special services or care to treat or ameliorate a mental disability or emotional disturbance a mental illness as defined in section 245.4871, subdivision 15, the written findings shall also set forth:

 

(i) whether the child has mental health needs that must be addressed by the case plan;

 

(ii) what consideration was given to the diagnostic and functional assessments performed by the child's mental health professional and to health and mental health care professionals' treatment recommendations;

 

(iii) what consideration was given to the requests or preferences of the child's parent or guardian with regard to the child's interventions, services, or treatment; and

 

(iv) what consideration was given to the cultural appropriateness of the child's treatment or services.

 

(b) If the court finds that the social services agency's preventive or reunification efforts have not been reasonable but that further preventive or reunification efforts could not permit the child to safely remain at home, the court may nevertheless authorize or continue the removal of the child.

 

(c) If the child has been identified by the responsible social services agency as the subject of concurrent permanency planning, the court shall review the reasonable efforts of the agency to develop a permanency plan for the child that includes a primary plan that is for reunification with the child's parent or guardian and a secondary plan that is for an alternative, legally permanent home for the child in the event reunification cannot be achieved in a timely manner.


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Sec. 77.  Minnesota Statutes 2024, section 260C.301, subdivision 4, is amended to read:

 

Subd. 4.  Current foster care children.  Except for cases where the child is in placement due solely to the child's developmental disability or emotional disturbance a mental illness, where custody has not been transferred to the responsible social services agency, and where the court finds compelling reasons to continue placement, the county attorney shall file a termination of parental rights petition or a petition to transfer permanent legal and physical custody to a relative under section 260C.515, subdivision 4, for all children who have been in out-of-home care for 15 of the most recent 22 months.  This requirement does not apply if there is a compelling reason approved by the court for determining that filing a termination of parental rights petition or other permanency petition would not be in the best interests of the child or if the responsible social services agency has not provided reasonable efforts necessary for the safe return of the child, if reasonable efforts are required.

 

Sec. 78.  Minnesota Statutes 2024, section 260D.01, is amended to read:

 

260D.01 CHILD IN VOLUNTARY FOSTER CARE FOR TREATMENT.

 

(a) Sections 260D.01 to 260D.10, may be cited as the "child in voluntary foster care for treatment" provisions of the Juvenile Court Act.

 

(b) The juvenile court has original and exclusive jurisdiction over a child in voluntary foster care for treatment upon the filing of a report or petition required under this chapter.  All obligations of the responsible social services agency to a child and family in foster care contained in chapter 260C not inconsistent with this chapter are also obligations of the agency with regard to a child in foster care for treatment under this chapter.

 

(c) This chapter shall be construed consistently with the mission of the children's mental health service system as set out in section 245.487, subdivision 3, and the duties of an agency under sections 256B.092 and 260C.157 and Minnesota Rules, parts 9525.0004 to 9525.0016, to meet the needs of a child with a developmental disability or related condition.  This chapter:

 

(1) establishes voluntary foster care through a voluntary foster care agreement as the means for an agency and a parent to provide needed treatment when the child must be in foster care to receive necessary treatment for an emotional disturbance or a mental illness, developmental disability, or related condition;

 

(2) establishes court review requirements for a child in voluntary foster care for treatment due to emotional disturbance or a mental illness, developmental disability, or a related condition;

 

(3) establishes the ongoing responsibility of the parent as legal custodian to visit the child, to plan together with the agency for the child's treatment needs, to be available and accessible to the agency to make treatment decisions, and to obtain necessary medical, dental, and other care for the child;

 

(4) applies to voluntary foster care when the child's parent and the agency agree that the child's treatment needs require foster care either:

 

(i) due to a level of care determination by the agency's screening team informed by the child's diagnostic and functional assessment under section 245.4885; or

 

(ii) due to a determination regarding the level of services needed by the child by the responsible social services agency's screening team under section 256B.092, and Minnesota Rules, parts 9525.0004 to 9525.0016; and


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(5) includes the requirements for a child's placement in sections 260C.70 to 260C.714, when the juvenile treatment screening team recommends placing a child in a qualified residential treatment program, except as modified by this chapter.

 

(d) This chapter does not apply when there is a current determination under chapter 260E that the child requires child protective services or when the child is in foster care for any reason other than treatment for the child's emotional disturbance or mental illness, developmental disability, or related condition.  When there is a determination under chapter 260E that the child requires child protective services based on an assessment that there are safety and risk issues for the child that have not been mitigated through the parent's engagement in services or otherwise, or when the child is in foster care for any reason other than the child's emotional disturbance or mental illness, developmental disability, or related condition, the provisions of chapter 260C apply.

 

(e) The paramount consideration in all proceedings concerning a child in voluntary foster care for treatment is the safety, health, and the best interests of the child.  The purpose of this chapter is:

 

(1) to ensure that a child with a disability is provided the services necessary to treat or ameliorate the symptoms of the child's disability;

 

(2) to preserve and strengthen the child's family ties whenever possible and in the child's best interests, approving the child's placement away from the child's parents only when the child's need for care or treatment requires out-of-home placement and the child cannot be maintained in the home of the parent; and

 

(3) to ensure that the child's parent retains legal custody of the child and associated decision-making authority unless the child's parent willfully fails or is unable to make decisions that meet the child's safety, health, and best interests.  The court may not find that the parent willfully fails or is unable to make decisions that meet the child's needs solely because the parent disagrees with the agency's choice of foster care facility, unless the agency files a petition under chapter 260C, and establishes by clear and convincing evidence that the child is in need of protection or services.

 

(f) The legal parent-child relationship shall be supported under this chapter by maintaining the parent's legal authority and responsibility for ongoing planning for the child and by the agency's assisting the parent, when necessary, to exercise the parent's ongoing right and obligation to visit or to have reasonable contact with the child.  Ongoing planning means:

 

(1) actively participating in the planning and provision of educational services, medical, and dental care for the child;

 

(2) actively planning and participating with the agency and the foster care facility for the child's treatment needs;

 

(3) planning to meet the child's need for safety, stability, and permanency, and the child's need to stay connected to the child's family and community;

 

(4) engaging with the responsible social services agency to ensure that the family and permanency team under section 260C.706 consists of appropriate family members.  For purposes of voluntary placement of a child in foster care for treatment under chapter 260D, prior to forming the child's family and permanency team, the responsible social services agency must consult with the child's parent or legal guardian, the child if the child is 14 years of age or older, and, if applicable, the child's Tribe to obtain recommendations regarding which individuals to include on the team and to ensure that the team is family-centered and will act in the child's best interests.  If the child, child's parents, or legal guardians raise concerns about specific relatives or professionals, the team should not include those individuals unless the individual is a treating professional or an important connection to the youth as outlined in the case or crisis plan; and


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(5) for a voluntary placement under this chapter in a qualified residential treatment program, as defined in section 260C.007, subdivision 26d, for purposes of engaging in a relative search as provided in section 260C.221, the county agency must consult with the child's parent or legal guardian, the child if the child is 14 years of age or older, and, if applicable, the child's Tribe to obtain recommendations regarding which adult relatives the county agency should notify.  If the child, child's parents, or legal guardians raise concerns about specific relatives, the county agency should not notify those relatives.

 

(g) The provisions of section 260.012 to ensure placement prevention, family reunification, and all active and reasonable effort requirements of that section apply.

 

Sec. 79.  Minnesota Statutes 2024, section 260D.02, subdivision 5, is amended to read:

 

Subd. 5.  Child in voluntary foster care for treatment.  "Child in voluntary foster care for treatment" means a child with emotional disturbance a mental illness or developmental disability, or who has a related condition and is in foster care under a voluntary foster care agreement between the child's parent and the agency due to concurrence between the agency and the parent when it is determined that foster care is medically necessary:

 

(1) due to a determination by the agency's screening team based on its review of the diagnostic and functional assessment under section 245.4885; or

 

(2) due to a determination by the agency's screening team under section 256B.092 and Minnesota Rules, parts 9525.0004 to 9525.0016.

 

A child is not in voluntary foster care for treatment under this chapter when there is a current determination under chapter 260E that the child requires child protective services or when the child is in foster care for any reason other than the child's emotional or mental illness, developmental disability, or related condition.

 

Sec. 80.  Minnesota Statutes 2024, section 260D.02, subdivision 9, is amended to read:

 

Subd. 9.  Emotional disturbance Mental illness.  "Emotional disturbance Mental illness" means emotional disturbance as described has the meaning given in section 245.4871, subdivision 15.

 

Sec. 81.  Minnesota Statutes 2024, section 260D.03, subdivision 1, is amended to read:

 

Subdivision 1.  Voluntary foster care.  When the agency's screening team, based upon the diagnostic and functional assessment under section 245.4885 or medical necessity screenings under section 256B.092, subdivision 7, determines the child's need for treatment due to emotional disturbance or a mental illness, developmental disability, or related condition requires foster care placement of the child, a voluntary foster care agreement between the child's parent and the agency gives the agency legal authority to place the child in foster care.

 

Sec. 82.  Minnesota Statutes 2024, section 260D.04, is amended to read:

 

260D.04 REQUIRED INFORMATION FOR A CHILD IN VOLUNTARY FOSTER CARE FOR TREATMENT.

 

An agency with authority to place a child in voluntary foster care for treatment due to emotional disturbance or a mental illness, developmental disability, or related condition, shall inform the child, age 12 or older, of the following:

 

(1) the child has the right to be consulted in the preparation of the out-of-home placement plan required under section 260C.212, subdivision 1, and the administrative review required under section 260C.203;


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(2) the child has the right to visit the parent and the right to visit the child's siblings as determined safe and appropriate by the parent and the agency;

 

(3) if the child disagrees with the foster care facility or services provided under the out-of-home placement plan required under section 260C.212, subdivision 1, the agency shall include information about the nature of the child's disagreement and, to the extent possible, the agency's understanding of the basis of the child's disagreement in the information provided to the court in the report required under section 260D.06; and

 

(4) the child has the rights established under Minnesota Rules, part 2960.0050, as a resident of a facility licensed by the state.

 

Sec. 83.  Minnesota Statutes 2024, section 260D.06, subdivision 2, is amended to read:

 

Subd. 2.  Agency report to court; court review.  The agency shall obtain judicial review by reporting to the court according to the following procedures:

 

(a) A written report shall be forwarded to the court within 165 days of the date of the voluntary placement agreement.  The written report shall contain or have attached:

 

(1) a statement of facts that necessitate the child's foster care placement;

 

(2) the child's name, date of birth, race, gender, and current address;

 

(3) the names, race, date of birth, residence, and post office addresses of the child's parents or legal custodian;

 

(4) a statement regarding the child's eligibility for membership or enrollment in an Indian tribe and the agency's compliance with applicable provisions of sections 260.751 to 260.835;

 

(5) the names and addresses of the foster parents or chief administrator of the facility in which the child is placed, if the child is not in a family foster home or group home;

 

(6) a copy of the out-of-home placement plan required under section 260C.212, subdivision 1;

 

(7) a written summary of the proceedings of any administrative review required under section 260C.203;

 

(8) evidence as specified in section 260C.712 when a child is placed in a qualified residential treatment program as defined in section 260C.007, subdivision 26d; and

 

(9) any other information the agency, parent or legal custodian, the child or the foster parent, or other residential facility wants the court to consider.

 

(b) In the case of a child in placement due to emotional disturbance a mental illness, the written report shall include as an attachment, the child's individual treatment plan developed by the child's treatment professional, as provided in section 245.4871, subdivision 21, or the child's standard written plan, as provided in section 125A.023, subdivision 3, paragraph (e).

 

(c) In the case of a child in placement due to developmental disability or a related condition, the written report shall include as an attachment, the child's individual service plan, as provided in section 256B.092, subdivision 1b; the child's individual program plan, as provided in Minnesota Rules, part 9525.0004, subpart 11; the child's waiver care plan; or the child's standard written plan, as provided in section 125A.023, subdivision 3, paragraph (e).


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(d) The agency must inform the child, age 12 or older, the child's parent, and the foster parent or foster care facility of the reporting and court review requirements of this section and of their right to submit information to the court:

 

(1) if the child or the child's parent or the foster care provider wants to send information to the court, the agency shall advise those persons of the reporting date and the date by which the agency must receive the information they want forwarded to the court so the agency is timely able submit it with the agency's report required under this subdivision;

 

(2) the agency must also inform the child, age 12 or older, the child's parent, and the foster care facility that they have the right to be heard in person by the court and how to exercise that right;

 

(3) the agency must also inform the child, age 12 or older, the child's parent, and the foster care provider that an in-court hearing will be held if requested by the child, the parent, or the foster care provider; and

 

(4) if, at the time required for the report under this section, a child, age 12 or older, disagrees about the foster care facility or services provided under the out-of-home placement plan required under section 260C.212, subdivision 1, the agency shall include information regarding the child's disagreement, and to the extent possible, the basis for the child's disagreement in the report required under this section.

 

(e) After receiving the required report, the court has jurisdiction to make the following determinations and must do so within ten days of receiving the forwarded report, whether a hearing is requested:

 

(1) whether the voluntary foster care arrangement is in the child's best interests;

 

(2) whether the parent and agency are appropriately planning for the child; and

 

(3) in the case of a child age 12 or older, who disagrees with the foster care facility or services provided under the out-of-home placement plan, whether it is appropriate to appoint counsel and a guardian ad litem for the child using standards and procedures under section 260C.163.

 

(f) Unless requested by a parent, representative of the foster care facility, or the child, no in-court hearing is required in order for the court to make findings and issue an order as required in paragraph (e).

 

(g) If the court finds the voluntary foster care arrangement is in the child's best interests and that the agency and parent are appropriately planning for the child, the court shall issue an order containing explicit, individualized findings to support its determination.  The individualized findings shall be based on the agency's written report and other materials submitted to the court.  The court may make this determination notwithstanding the child's disagreement, if any, reported under paragraph (d).

 

(h) The court shall send a copy of the order to the county attorney, the agency, parent, child, age 12 or older, and the foster parent or foster care facility.

 

(i) The court shall also send the parent, the child, age 12 or older, the foster parent, or representative of the foster care facility notice of the permanency review hearing required under section 260D.07, paragraph (e).

 

(j) If the court finds continuing the voluntary foster care arrangement is not in the child's best interests or that the agency or the parent are not appropriately planning for the child, the court shall notify the agency, the parent, the foster parent or foster care facility, the child, age 12 or older, and the county attorney of the court's determinations and the basis for the court's determinations.  In this case, the court shall set the matter for hearing and appoint a guardian ad litem for the child under section 260C.163, subdivision 5.


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Sec. 84.  Minnesota Statutes 2024, section 260D.07, is amended to read:

 

260D.07 REQUIRED PERMANENCY REVIEW HEARING.

 

(a) When the court has found that the voluntary arrangement is in the child's best interests and that the agency and parent are appropriately planning for the child pursuant to the report submitted under section 260D.06, and the child continues in voluntary foster care as defined in section 260D.02, subdivision 10, for 13 months from the date of the voluntary foster care agreement, or has been in placement for 15 of the last 22 months, the agency must:

 

(1) terminate the voluntary foster care agreement and return the child home; or

 

(2) determine whether there are compelling reasons to continue the voluntary foster care arrangement and, if the agency determines there are compelling reasons, seek judicial approval of its determination; or

 

(3) file a petition for the termination of parental rights.

 

(b) When the agency is asking for the court's approval of its determination that there are compelling reasons to continue the child in the voluntary foster care arrangement, the agency shall file a "Petition for Permanency Review Regarding a Child in Voluntary Foster Care for Treatment" and ask the court to proceed under this section.

 

(c) The "Petition for Permanency Review Regarding a Child in Voluntary Foster Care for Treatment" shall be drafted or approved by the county attorney and be under oath.  The petition shall include:

 

(1) the date of the voluntary placement agreement;

 

(2) whether the petition is due to the child's developmental disability or emotional disturbance mental illness;

 

(3) the plan for the ongoing care of the child and the parent's participation in the plan;

 

(4) a description of the parent's visitation and contact with the child;

 

(5) the date of the court finding that the foster care placement was in the best interests of the child, if required under section 260D.06, or the date the agency filed the motion under section 260D.09, paragraph (b);

 

(6) the agency's reasonable efforts to finalize the permanent plan for the child, including returning the child to the care of the child's family;

 

(7) a citation to this chapter as the basis for the petition; and

 

(8) evidence as specified in section 260C.712 when a child is placed in a qualified residential treatment program as defined in section 260C.007, subdivision 26d.

 

(d) An updated copy of the out-of-home placement plan required under section 260C.212, subdivision 1, shall be filed with the petition.

 

(e) The court shall set the date for the permanency review hearing no later than 14 months after the child has been in placement or within 30 days of the petition filing date when the child has been in placement 15 of the last 22 months.  The court shall serve the petition together with a notice of hearing by United States mail on the parent, the child age 12 or older, the child's guardian ad litem, if one has been appointed, the agency, the county attorney, and counsel for any party.


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(f) The court shall conduct the permanency review hearing on the petition no later than 14 months after the date of the voluntary placement agreement, within 30 days of the filing of the petition when the child has been in placement 15 of the last 22 months, or within 15 days of a motion to terminate jurisdiction and to dismiss an order for foster care under chapter 260C, as provided in section 260D.09, paragraph (b).

 

(g) At the permanency review hearing, the court shall:

 

(1) inquire of the parent if the parent has reviewed the "Petition for Permanency Review Regarding a Child in Voluntary Foster Care for Treatment," whether the petition is accurate, and whether the parent agrees to the continued voluntary foster care arrangement as being in the child's best interests;

 

(2) inquire of the parent if the parent is satisfied with the agency's reasonable efforts to finalize the permanent plan for the child, including whether there are services available and accessible to the parent that might allow the child to safely be with the child's family;

 

(3) inquire of the parent if the parent consents to the court entering an order that:

 

(i) approves the responsible agency's reasonable efforts to finalize the permanent plan for the child, which includes ongoing future planning for the safety, health, and best interests of the child; and

 

(ii) approves the responsible agency's determination that there are compelling reasons why the continued voluntary foster care arrangement is in the child's best interests; and

 

(4) inquire of the child's guardian ad litem and any other party whether the guardian or the party agrees that:

 

(i) the court should approve the responsible agency's reasonable efforts to finalize the permanent plan for the child, which includes ongoing and future planning for the safety, health, and best interests of the child; and

 

(ii) the court should approve of the responsible agency's determination that there are compelling reasons why the continued voluntary foster care arrangement is in the child's best interests.

 

(h) At a permanency review hearing under this section, the court may take the following actions based on the contents of the sworn petition and the consent of the parent:

 

(1) approve the agency's compelling reasons that the voluntary foster care arrangement is in the best interests of the child; and

 

(2) find that the agency has made reasonable efforts to finalize the permanent plan for the child.

 

(i) A child, age 12 or older, may object to the agency's request that the court approve its compelling reasons for the continued voluntary arrangement and may be heard on the reasons for the objection.  Notwithstanding the child's objection, the court may approve the agency's compelling reasons and the voluntary arrangement.

 

(j) If the court does not approve the voluntary arrangement after hearing from the child or the child's guardian ad litem, the court shall dismiss the petition.  In this case, either:

 

(1) the child must be returned to the care of the parent; or

 

(2) the agency must file a petition under section 260C.141, asking for appropriate relief under sections 260C.301 or 260C.503 to 260C.521.


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(k) When the court approves the agency's compelling reasons for the child to continue in voluntary foster care for treatment, and finds that the agency has made reasonable efforts to finalize a permanent plan for the child, the court shall approve the continued voluntary foster care arrangement, and continue the matter under the court's jurisdiction for the purposes of reviewing the child's placement every 12 months while the child is in foster care.

 

(l) A finding that the court approves the continued voluntary placement means the agency has continued legal authority to place the child while a voluntary placement agreement remains in effect.  The parent or the agency may terminate a voluntary agreement as provided in section 260D.10.  Termination of a voluntary foster care placement of an Indian child is governed by section 260.765, subdivision 4.

 

Sec. 85.  Minnesota Statutes 2024, section 260E.11, subdivision 3, is amended to read:

 

Subd. 3.  Report to medical examiner or coroner; notification to local agency and law enforcement; report ombudsman.  (a) A person mandated to report maltreatment who knows or has reason to believe a child has died as a result of maltreatment shall report that information to the appropriate medical examiner or coroner instead of the local welfare agency, police department, or county sheriff.

 

(b) The medical examiner or coroner shall notify the local welfare agency, police department, or county sheriff in instances in which the medical examiner or coroner believes that the child has died as a result of maltreatment.  The medical examiner or coroner shall complete an investigation as soon as feasible and report the findings to the police department or county sheriff and the local welfare agency.

 

(c) If the child was receiving services or treatment for mental illness, developmental disability, or substance use disorder, or emotional disturbance from an agency, facility, or program as defined in section 245.91, the medical examiner or coroner shall also notify and report findings to the ombudsman established under sections 245.91 to 245.97.

 

Sec. 86.  Minnesota Statutes 2024, 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.


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(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 severe emotional disturbance 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; 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.

 

ARTICLE 9

MISCELLANEOUS

 

Section 1.  Minnesota Statutes 2024, section 62Q.75, subdivision 3, is amended to read:

 

Subd. 3.  Claims filing.  (a) Unless otherwise provided by contract, by section 16A.124, subdivision 4a, or by federal law, the health care providers and facilities specified in subdivision 2 must submit their charges to a health plan company or third-party administrator within six months from the date of service or the date the health care provider knew or was informed of the correct name and address of the responsible health plan company or third‑party administrator, whichever is later. 

 

(b) A health care provider or facility that does not make an initial submission of charges within the six-month period in paragraph (a), the 12-month period in paragraph (c), or the additional six-month period in paragraph (d) shall not be reimbursed for the charge and may not collect the charge from the recipient of the service or any other payer. 


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(c)
The six-month submission requirement in paragraph (a) may be extended to 12 months in cases where a health care provider or facility specified in subdivision 2 has determined and can substantiate that it has experienced a significant disruption to normal operations that materially affects the ability to conduct business in a normal manner and to submit claims on a timely basis. 

 

(d) The six-month submission requirement in paragraph (a) must be extended an additional six months if a health plan company or third-party administrator makes any adjustment or recoupment of payment.  The additional six months begins on the date the health plan company or third-party administrator adjusts or recoups the payment.

 

(e) Any request by a health care provider or facility under paragraph (c) or (d) must reference that the submission is pursuant to this subdivision.

 

(f) Any request by a health care provider or facility specified in subdivision 2 for an exception to a contractually defined claims submission timeline must be reviewed and acted upon by the health plan company within the same time frame as the contractually agreed upon claims filing timeline. 

 

(g) This subdivision also applies to all health care providers and facilities that submit charges to workers' compensation payers for treatment of a workers' compensation injury compensable under chapter 176, or to reparation obligors for treatment of an injury compensable under chapter 65B.

 

Sec. 2.  Minnesota Statutes 2024, section 256.01, is amended by adding a subdivision to read:

 

Subd. 44.  Notification of federal approval; report.  (a) For any provision over which the commissioner has jurisdiction and that has an effective date contingent upon federal approval, whether the contingency is expressed in an effective date, in the text of a statutory provision, or in the text of an uncodified section of session law, the commissioner must establish and maintain a public list, according to paragraph (b), of which enacted provisions contain such contingent federal approval and when federal approval is obtained for any such provision.

 

(b) The commissioner must post, in a single location on the department's public website, regular status updates on all provisions of Minnesota Statutes and Laws of Minnesota enacted with an effective date contingent on federal approval.  The commissioner must update the list monthly to identify:

 

(1) provisions of Minnesota Statutes and Laws of Minnesota the commissioner has requested federal authority to effectuate;

 

(2) the status of the commissioner's request for federal approval;

 

(3) the date of federal approval, denial, or an alternative outcome; and

 

(4) the effective dates for approved provisions.

 

EFFECTIVE DATE.  This section is effective December 1, 2025.

 

Sec. 3.  REPEALER.

 

Minnesota Rules, part 9505.0250, subparts 1, 2, and 3, are repealed.

 

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


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Delete the title and insert:

 

"A bill for an act relating to human services; modifying policy provisions relating to aging and disability services, the Department of Health, Direct Care and Treatment, substance use disorder and behavioral health, the Department of Human Services Office of Inspector General, and certain health insurance claims; recodifying statutory language relating to assertive community treatment and intensive residential treatment services; modifying children's mental health terminology; requiring certain notifications regarding federal approval; making conforming changes; amending Minnesota Statutes 2024, sections 3.757, subdivision 1; 4.046, subdivisions 2, 3; 13.46, subdivisions 3, 4; 15.471, subdivision 6; 43A.241; 62J.495, subdivision 2; 62Q.527, subdivisions 1, 2, 3; 62Q.75, subdivision 3; 97A.441, subdivision 3; 121A.61, subdivision 3; 128C.02, subdivision 5; 142E.51, subdivisions 5, 6, by adding a subdivision; 142G.02, subdivision 56; 142G.27, subdivision 4; 142G.42, subdivision 3; 144.0724, subdivisions 2, 3a, 4, 8, 9, 11; 144.53; 144.651, subdivisions 2, 4, 10a, 20, 31, 32; 144A.07; 144A.071, subdivisions 4a, 4d; 144A.1888; 144A.61, by adding subdivisions; 144A.70, subdivisions 3, 7, by adding subdivisions; 144A.751, subdivision 1; 144G.08, by adding a subdivision; 144G.10, subdivisions 1, 1a, 5; 144G.16, subdivision 3; 144G.19, by adding a subdivision; 144G.45, by adding a subdivision; 144G.51; 144G.52, by adding a subdivision; 144G.53; 144G.70, subdivision 2; 144G.71, subdivisions 3, 5; 144G.81, subdivision 1; 144G.91, by adding a subdivision; 146A.08, subdivision 4; 147.091, subdivision 6; 147A.13, subdivision 6; 148.10, subdivision 1; 148.235, subdivision 10; 148.261, subdivision 5; 148.754; 148B.5905; 148F.09, subdivision 6; 148F.11, subdivision 1; 150A.08, subdivision 6; 151.071, subdivision 10; 153.21, subdivision 2; 153B.70; 168.012, subdivision 1; 169A.284; 244.052, subdivision 4; 245.462, subdivision 4; 245.4661, subdivision 9; 245.4662, subdivision 1; 245.4682, subdivision 3; 245.469; 245.481; 245.4835, subdivision 2; 245.4863; 245.487, subdivision 2; 245.4871, subdivisions 3, 4, 6, 13, 15, 17, 19, 21, 22, 28, 29, 31, 32, 34, by adding a subdivision; 245.4873, subdivision 2; 245.4874, subdivision 1; 245.4875, subdivision 5; 245.4876, subdivisions 4, 5; 245.4877; 245.488, subdivisions 1, 3; 245.4881, subdivisions 1, 3, 4; 245.4882, subdivisions 1, 5; 245.4884; 245.4885, subdivision 1; 245.4889, subdivision 1; 245.4901, subdivision 3; 245.4906, subdivision 2; 245.4907, subdivisions 2, 3; 245.491, subdivision 2; 245.492, subdivision 3; 245.50, subdivisions 2, 3, by adding a subdivision; 245.52; 245.697, subdivision 2a; 245.814, subdivision 3; 245.826; 245.91, subdivisions 2, 4; 245.92; 245.94, subdivision 1; 245A.03, subdivision 2; 245A.04, subdivisions 1, 7; 245A.16, subdivision 1; 245A.242, subdivision 2; 245A.26, subdivisions 1, 2; 245C.05, by adding a subdivision; 245C.08, subdivision 3; 245C.22, subdivision 5; 245D.02, subdivision 4a; 245D.091, subdivision 3; 245D.10, by adding a subdivision; 245F.06, subdivision 2; 245G.05, subdivision 1; 245G.06, subdivisions 1, 2a, 3a; 245G.07, subdivision 2; 245G.08, subdivision 6; 245G.09, subdivision 3; 245G.11, subdivisions 7, 11; 245G.18, subdivision 2; 245G.19, subdivision 4, by adding a subdivision; 245G.22, subdivisions 1, 14, 15; 245I.05, subdivisions 3, 5; 245I.06, subdivision 3; 245I.11, subdivision 5; 245I.12, subdivision 5; 246.585; 246C.06, subdivision 11; 246C.12, subdivisions 4, 6; 246C.20; 252.27, subdivision 1; 252.28, subdivision 2; 252.291, subdivision 3; 252.41, subdivision 3; 252.42; 252.43; 252.44; 252.45; 252.46, subdivision 1a; 252.50, subdivision 5; 253B.07, subdivision 2b; 253B.09, subdivision 3a; 253B.10, subdivision 1; 253B.141, subdivision 2; 253B.18, subdivision 6; 253B.19, subdivision 2; 253D.29, subdivisions 1, 2, 3; 253D.30, subdivisions 4, 5; 254A.03, subdivision 1; 254A.19, subdivisions 6, 7; 254B.04, subdivision 1a; 254B.05, subdivisions 1, 1a, 5; 254B.06, by adding a subdivision; 256.01, subdivisions 2, 5, 29, 34, by adding a subdivision; 256.019, subdivision 1; 256.0281; 256.0451, subdivisions 1, 3, 6, 8, 9, 18, 22, 23, 24; 256.478, subdivision 2; 256.4825; 256.93, subdivision 1; 256.9657, subdivision 7a; 256.98, subdivisions 1, 7; 256B.02, subdivision 11; 256B.055, subdivision 12; 256B.0615, subdivisions 1, 3; 256B.0616, subdivisions 1, 4, 5; 256B.0622, subdivisions 1, 3a, 7a, 8, 11, 12; 256B.064, subdivision 1a; 256B.0757, subdivision 2; 256B.0761, subdivision 4; 256B.092, subdivisions 1a, 10, 11, 11a; 256B.0943, subdivisions 1, 3, 9, 12, 13; 256B.0945, subdivision 1; 256B.0946, subdivision 6; 256B.0947, subdivision 3a; 256B.12; 256B.49, subdivisions 13, 29; 256B.4911, subdivision 6; 256B.4914, subdivisions 10a, 10d, 17; 256B.69, subdivision 23; 256B.77, subdivision 7a; 256B.82; 256D.44, subdivision 5; 256G.09, subdivisions 4, 5; 256I.04, subdivision 2c; 256L.03, subdivision 5; 256R.02, subdivisions 18, 19, 22; 256R.25; 256R.38; 256R.40, subdivision 5; 260B.157, subdivision 3; 260C.007, subdivisions 16, 26d, 27b; 260C.157, subdivision 3; 260C.201, subdivisions 1, 2; 260C.301, subdivision 4; 260D.01; 260D.02, subdivisions 5, 9; 260D.03, subdivision 1; 260D.04; 260D.06, subdivision 2; 260D.07; 260E.11, subdivision 3; 295.50, subdivision 9b; 299F.77, subdivision 2; 342.04; 352.91, subdivision 3f; 401.17, subdivision 1; 507.071, subdivision 1; 611.46,


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4432

subdivision 1; 611.55, by adding a subdivision; 611.57, subdivisions 2, 4; 624.7131, subdivisions 1, 2; 624.7132, subdivisions 1, 2; 624.714, subdivisions 3, 4; 631.40, subdivision 3; Laws 2023, chapter 70, article 7, section 34; proposing coding for new law in Minnesota Statutes, chapters 245; 246C; 253B; 256B; 256R; 609; repealing Minnesota Statutes 2024, sections 144A.071, subdivision 4c; 144G.9999, subdivisions 1, 2, 3; 245.4862; 245A.042, subdivisions 2, 3, 4; 245A.11, subdivision 8; 246.015, subdivision 3; 246.50, subdivision 2; 246B.04, subdivision 1a; 256B.0622, subdivision 4; Laws 2024, chapter 79, article 1, sections 15; 16; 17; Minnesota Rules, part 9505.0250, subparts 1, 2, 3."

 

      We request the adoption of this report and repassage of the bill. 

 

      House Conferees:  Joe Schomacker, Steve Gander, Mohamud Noor and Luke Frederick.

 

      Senate Conferees:  John Hoffman, Omar Fateh, Erin Maye Quade, Jordan Rasmusson and Jim Abeler.

 

 

      Schomacker moved that the report of the Conference Committee on H. F. No. 2115 be adopted and that the bill be repassed as amended by the Conference Committee.  The motion prevailed.

 

 

H. F. No. 2115, A bill for an act relating to human services; modifying policy provisions relating to aging and disability services, the Department of Health, Direct Care and Treatment, behavioral health, and the Department of Human Services Office of Inspector General; recodifying statutory language relating to assertive community treatment and intensive residential treatment services; modifying children's mental health terminology; codifying requirement for notification of federal approval; making conforming changes; amending Minnesota Statutes 2024, sections 3.757, subdivision 1; 13.46, subdivisions 3, 4; 15.471, subdivision 6; 43A.241; 62J.495, subdivision 2; 62Q.527, subdivisions 1, 2, 3; 97A.441, subdivision 3; 121A.61, subdivision 3; 128C.02, subdivision 5; 142E.51, subdivisions 5, 6, by adding a subdivision; 142G.02, subdivision 56; 142G.27, subdivision 4; 142G.42, subdivision 3; 144.0724, subdivisions 2, 3a, 4, 9; 144.53; 144.651, subdivisions 2, 4, 10a, 20, 31, 32; 144A.07; 144A.61, by adding subdivisions; 144A.70, subdivisions 3, 7, by adding subdivisions; 144G.10, subdivisions 1, 1a, 5; 144G.16, subdivision 3; 144G.19, by adding a subdivision; 144G.52, by adding a subdivision; 144G.53; 144G.70, subdivision 2; 144G.81, subdivision 1; 144G.91, by adding a subdivision; 146A.08, subdivision 4; 147.091, subdivision 6; 147A.13, subdivision 6; 148.10, subdivision 1; 148.235, subdivision 10; 148.261, subdivision 5; 148.754; 148B.5905; 148F.09, subdivision 6; 148F.11, subdivision 1; 150A.08, subdivision 6; 151.071, subdivision 10; 153.21, subdivision 2; 153B.70; 169A.284; 244.052, subdivision 4; 245.462, subdivision 4; 245.4662, subdivision 1; 245.4682, subdivision 3; 245.469; 245.481; 245.4835, subdivision 2; 245.4863; 245.487, subdivision 2; 245.4871, subdivisions 3, 4, 6, 13, 15, 17, 19, 21, 22, 28, 29, 31, 32, 34, by adding a subdivision; 245.4873, subdivision 2; 245.4874, subdivision 1; 245.4875, subdivision 5; 245.4876, subdivisions 4, 5; 245.4877; 245.488, subdivisions 1, 3; 245.4881, subdivisions 1, 3, 4; 245.4882, subdivisions 1, 5; 245.4884; 245.4885, subdivision 1; 245.4889, subdivision 1; 245.4901, subdivision 3; 245.4906, subdivision 2; 245.4907, subdivisions 2, 3; 245.491, subdivision 2; 245.492, subdivision 3; 245.50, subdivision 2; 245.52; 245.697, subdivision 2a; 245.735, subdivision 3b; 245.814, subdivision 3; 245.826; 245.91, subdivisions 2, 4; 245.92; 245.94, subdivision 1; 245A.03, subdivision 2; 245A.04, subdivisions 1, 7; 245A.16, subdivision 1; 245A.242, subdivision 2; 245A.26, subdivisions 1, 2; 245C.05, by adding a subdivision; 245C.08, subdivision 3; 245C.22, subdivision 5; 245D.02, subdivision 4a; 245D.091, subdivision 3; 245F.06, subdivision 2; 245G.05, subdivision 1; 245G.06, subdivisions 1, 2a, 3a; 245G.07, subdivision 2; 245G.08, subdivision 6; 245G.09, subdivision 3; 245G.11, subdivisions 7, 11; 245G.18, subdivision 2; 245G.19, subdivision 4, by adding a subdivision; 245G.22, subdivisions 1, 14, 15; 245I.05, subdivisions 3, 5; 245I.06, subdivision 3; 245I.11, subdivision 5; 245I.12, subdivision 5; 246.585; 246C.06, subdivision 11; 246C.12, subdivisions 4, 6; 246C.20; 252.27, subdivision 1; 252.291, subdivision 3; 252.43; 252.46, subdivision 1a; 252.50, subdivision 5; 253B.07, subdivision 2b; 253B.09, subdivision 3a; 253B.10, subdivision 1; 253B.141, subdivision 2; 253B.18, subdivision 6; 253B.19, subdivision 2; 253D.14, subdivision 3; 253D.27, subdivision 2; 253D.28; 253D.29, subdivisions 1, 2, 3; 253D.30, subdivisions 3, 4, 5, 6; 253D.31; 254A.19, subdivision 6; 254B.04,


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4433

subdivision 1a; 254B.05, subdivisions 1, 1a, 5; 256.01, subdivisions 2, 5, by adding a subdivision; 256.019, subdivision 1; 256.0281; 256.0451, subdivisions 1, 3, 6, 8, 9, 18, 22, 23, 24; 256.478, subdivision 2; 256.4825; 256.93, subdivision 1; 256.98, subdivisions 1, 7; 256B.02, subdivision 11; 256B.055, subdivision 12; 256B.0615, subdivisions 1, 3, 4; 256B.0616, subdivisions 1, 4, 5; 256B.0622, subdivisions 1, 3a, 7a, 8, 11, 12; 256B.064, subdivision 1a; 256B.0757, subdivision 2; 256B.092, subdivisions 1a, 10, 11a; 256B.0943, subdivisions 1, 3, 9, 12, 13; 256B.0945, subdivision 1; 256B.0946, subdivision 6; 256B.0947, subdivision 3a; 256B.49, subdivisions 13, 29; 256B.4911, subdivision 6; 256B.4914, subdivisions 10a, 10d; 256B.69, subdivision 23; 256B.77, subdivision 7a; 256B.82; 256D.44, subdivision 5; 256G.09, subdivisions 4, 5; 256I.04, subdivision 2c; 256L.03, subdivision 5; 256R.38; 256R.40, subdivision 5; 260B.157, subdivision 3; 260C.007, subdivisions 16, 26d, 27b; 260C.157, subdivision 3; 260C.201, subdivisions 1, 2; 260C.301, subdivision 4; 260D.01; 260D.02, subdivisions 5, 9; 260D.03, subdivision 1; 260D.04; 260D.06, subdivision 2; 260D.07; 260E.11, subdivision 3; 295.50, subdivision 9b; 299F.77, subdivision 2; 342.04; 352.91, subdivision 3f; 401.17, subdivision 1; 480.40, subdivision 1; 507.071, subdivision 1; 611.57, subdivisions 2, 4; 624.7131, subdivisions 1, 2; 624.7132, subdivisions 1, 2; 624.714, subdivisions 3, 4; 631.40, subdivision 3; Laws 2023, chapter 70, article 7, section 34; proposing coding for new law in Minnesota Statutes, chapters 245; 246C; 256B; 256G; 609; repealing Minnesota Statutes 2024, sections 144G.9999, subdivisions 1, 2, 3; 245.4862; 245A.042, subdivisions 2, 3, 4; 245A.11, subdivision 8; 246.015, subdivision 3; 246.50, subdivision 2; 246B.04, subdivision 1a; 256B.0622, subdivision 4; Laws 2024, chapter 79, article 1, sections 15; 16; 17; Minnesota Rules, part 9505.0250, subparts 1, 2, 3.

 

 

      The bill was read for the third time, as amended by Conference, and placed upon its repassage.

 

      The question was taken on the repassage of the bill and the roll was called.  There were 124 yeas and 10 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

Burkel

Carroll

Cha

Clardy

Coulter

Curran

Davids

Dotseth

Duran

Elkins

Engen

Falconer

Feist

Finke

Fischer

Franson

Frazier

Frederick

Freiberg

Gander

Gillman

Gomez

Gottfried

Greene

Greenman

Hansen, R.

Hanson, J.

Harder

Heintzeman

Hemmingsen-Jaeger

Her

Hicks

Hill

Hollins

Hortman

Howard

Hudson

Huot

Hussein

Igo

Jacob

Johnson, P.

Johnson, W.

Jones

Jordan

Keeler

Klevorn

Knudsen

Koegel

Kotyza-Witthuhn

Kozlowski

Koznick

Kraft

Kresha

Lawrence

Lee, F.

Lee, K.

Liebling

Lillie

Long

Mahamoud

McDonald

Moller

Momanyi-Hiltsley

Mueller

Myers

Nadeau

Nash

Nelson

Niska

Noor

Norris

Novotny

O'Driscoll

Olson

Pérez-Vega

Perryman

Pinto

Pursell

Quam

Rarick

Rehm

Rehrauer

Repinski

Reyer

Robbins

Rymer

Schomacker

Schultz

Schwartz

Scott

Sencer-Mura

Sexton

Skraba

Smith

Stephenson

Stier

Swedzinski

Tabke

Torkelson

Vang

Virnig

Warwas

West

Witte

Wolgamott

Xiong

Youakim

Zeleznikar

Spk. Demuth


 

      Those who voted in the negative were:

 


Davis

Dippel

Fogelman

Gordon

Joy

Mekeland

Murphy

Roach

Van Binsbergen

Wiener


 

 

      The bill was repassed, as amended by Conference, and its title agreed to.


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4434

MOTIONS AND RESOLUTIONS

 

 

DECLARATION OF URGENCY

 

      Pursuant to Article IV, Section 19, of the Constitution of the state of Minnesota, Niska 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. 2884 be given its third reading and be placed upon its final passage.  The motion prevailed.

 

 

      The Speaker called Olson to the Chair.

 

 

S. F. No. 2884, A bill for an act relating to retirement; Minnesota State Retirement System, making administrative changes, increasing the formula multiplier and the postretirement adjustment for the general state employees retirement plan, and increasing the postretirement adjustment for the legislators and unclassified retirement plans; Public Employees Retirement Association, making administrative and conforming changes, increasing the cap on the postretirement adjustment for the general employees retirement plan, expanding the privatization requirements and revising the method for calculating withdrawal liability; implementing the recommendations of the MSRS correctional plan eligibility work group, the amortization work group, and the State Auditor's fire relief association working group; increasing the employer contribution maximum for the higher education supplemental retirement plan; increasing the maximum lump-sum benefit level for defined benefit firefighter relief associations; Minnesota Secure Choice Retirement Program, making administrative and policy changes, authorizing the commissioner of employment and economic development to disclose information to the executive director, and adding penalties for noncompliance; modifying the pension fund executive directors' authority to correct errors and modifying the annual reporting requirement; repealing the investment business recipient disclosure reporting requirement for firefighter relief associations; establishing a work group on pension plans for probation officers and 911 telecommunicators; modifying circumstances for terminating state and supplemental employer contributions; modifying certain public safety benefits; providing certain teacher retirement association benefit increases; modifying duty disability and health insurance continuation for peace officers and firefighters; making technical changes, clarifications, and corrections to the statutes governing the Legislative Commission on Pensions and Retirement, the statewide volunteer firefighter plan, IRAP to TRA transfers, fire state aid and police and firefighter retirement supplemental state aid, and the public employees defined contribution plan; modifying practices for reporting and repealing certain reporting requirements for the State Board of Investment; eliminating obsolete provisions; appropriating money; amending Minnesota Statutes 2024, sections 3.85, subdivisions 2, 3, 10; 11A.07, subdivisions 4, 4b; 124E.12, subdivisions 4, 6; 126C.10, subdivision 37; 181.101; 187.03, subdivisions 5, 7, 7a, by adding a subdivision; 187.05, subdivisions 4, 6, by adding a subdivision; 187.07, subdivisions 1, 2, 3, 6; 187.08, subdivisions 3, 7; 187.11; 268.19, subdivision 1; 299A.465, subdivision 1; 352.01, by adding a subdivision; 352.029, subdivision 3; 352.03, subdivision 5; 352.115, subdivision 3; 352.22, subdivisions 2b, 3; 352.90; 352.92, subdivision 2a; 352.93, subdivision 1; 352.955, subdivision 1; 352B.02, subdivision 1c; 353.01, subdivisions 2a, 2b, 2d; 353.028, subdivisions 2, 3; 353.032, subdivisions 3, 4, 5, 6, 7, 9, 10; 353.27, subdivision 3a; 353.34, subdivision 5; 353.65, subdivision 3b; 353D.01, subdivision 2; 353D.02, subdivisions 1, 2, 3, 4, 5, 6, 7; 353E.06, subdivision 1; 353F.01; 353F.02, subdivisions 3, 4b, 5a, 6, by adding subdivisions; 353F.025; 353F.03; 353F.04; 353F.05; 353F.051, subdivisions 1, 2; 353F.052; 353F.057; 353F.06; 353F.07; 353F.08; 353F.09; 353G.08, subdivision 1a; 353G.11, subdivisions 2, 2a, by adding a subdivision; 353G.17, subdivisions 4, 5; 353G.19, subdivisions 1, 2, 3, 4, 5; 354.42, subdivision 3; 354.44, subdivision 6; 354B.215, subdivisions 3, 4; 356.215, subdivisions 1, 4, 8, 11, 17; 356.24, subdivision 1; 356.415, subdivisions 1, 1b, 1c, 1d, 1e; 356.633, subdivisions 1, 2, by adding a subdivision; 356.636, subdivisions 2, 3; 423A.022, subdivisions 2, 3, 5; 424A.014, subdivisions 2, 5; 424A.015, subdivision 4; 424A.016, subdivisions 2, 6; 424A.02, subdivision 3; 424A.05, subdivision 3; 424A.06, subdivision 2; 424A.08; 424A.092, subdivisions 2, 3, 4; 424A.093, subdivision 5; 424B.22, subdivisions 1, 2, 3, by adding a subdivision; 477B.02, subdivisions 3, 8; 477B.03, subdivisions 5, 7; 477B.04,


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4435

subdivisions 3, 4; 490.123, subdivision 5; proposing coding for new law in Minnesota Statutes, chapters 187; 352; 352B; 356; repealing Minnesota Statutes 2024, sections 11A.27; 352.91, subdivisions 1, 2, 2a, 3c, 3d, 3e, 3f, 3g, 3h, 3i, 3j, 4a, 4b, 4c, 6; 353F.02, subdivision 4a; 356.635, subdivision 9; 356A.06, subdivision 5; 424A.015, subdivision 5.

 

 

      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 133 yeas and 1 nay 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

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

Greenman

Hansen, R.

Hanson, J.

Harder

Heintzeman

Hemmingsen-Jaeger

Her

Hicks

Hill

Hollins

Hortman

Howard

Hudson

Huot

Hussein

Igo

Jacob

Johnson, P.

Johnson, W.

Jones

Jordan

Joy

Keeler

Klevorn

Knudsen

Koegel

Kotyza-Witthuhn

Kozlowski

Koznick

Kraft

Kresha

Lawrence

Lee, F.

Lee, K.

Liebling

Lillie

Long

Mahamoud

McDonald

Mekeland

Moller

Momanyi-Hiltsley

Mueller

Murphy

Myers

Nadeau

Nash

Nelson

Niska

Noor

Norris

Novotny

O'Driscoll

Olson

Pérez-Vega

Perryman

Pinto

Pursell

Quam

Rarick

Rehm

Rehrauer

Repinski

Reyer

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:

 


Roach


 

 

      The bill was passed and its title agreed to.

 

 

REPORTS FROM THE COMMITTEE ON RULES

AND LEGISLATIVE ADMINISTRATION

 

      Niska and Long for the Committee on Rules and Legislative Administration offered the following resolution and moved its adoption:

 

      Be It Resolved, by the House of Representatives of the State of Minnesota, that the Chief Clerk is directed to correct and approve the Journal of the House for the last day of the 2025 Regular Session.


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4436

       Be It Further Resolved that the Chief Clerk is authorized to include in the Journal for the last day of the 2025 Regular Session any proceedings, including subsequent proceedings and any legislative interim committees or commissions created or appointments made to them by legislative action or by law.

 

      The motion prevailed and the resolution was adopted.

 

 

      Niska and Long for the Committee on Rules and Legislative Administration offered the following resolution and moved its adoption:

 

      Be It Resolved, by the House of Representatives of the State of Minnesota, that during the time between adjournment in 2025 and the convening of the House of Representatives in 2026, the Chief Clerk and Chief Sergeant at Arms under the direction of the Speaker and the Speaker Emerita shall maintain House facilities in the Capitol Complex. The House chamber, retiring room, hearing and conference rooms, and offices shall be set up and made ready for legislative use and reserved for the House and its committees. Those rooms may be reserved for use by others that are not in conflict with use by the House. The House chamber, retiring room, and hearing rooms may be used by House Educational Programs, YMCA Youth in Government, Girls' State, Young Leaders Organization, and 4-H Leadership Conference.

 

      Facilities in the Capitol Complex accessed and utilized by the House of Representatives pursuant to agreements with the Department of Administration of the Minnesota Senate shall be maintained in accordance with those agreements.

 

      The motion prevailed and the resolution was adopted.

 

 

      Niska and Long for the Committee on Rules and Legislative Administration offered the following resolution and moved its adoption:

 

      Be It Resolved, by the House of Representatives of the State of Minnesota, that it retains parking for members and employees of the House of Representatives during the time between adjournment in 2025 and the convening of the House of Representatives in 2026. The Sergeant at Arms is directed to manage the use of parking while the House of Representatives is adjourned. The Controller of the House may continue to deduct from the check of any legislator or legislative employee a sum adequate to cover the exercise of the parking privilege.

 

      Parking in the Capitol Complex accessed and utilized by the House of Representatives pursuant to agreements with the Department of Administration shall be maintained in accordance with those agreements.

 

      The motion prevailed and the resolution was adopted.

 

 

      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.


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4437

       Pursuant to Rule 10.05, relating to Remote House Operations, the DFL Caucus Leader permitted the following member to vote via remote means for the remainder of today’s session:  Her.

 

 

MOTIONS AND RESOLUTIONS, Continued

 

 

DECLARATION OF URGENCY

 

      Pursuant to Article IV, Section 19, of the Constitution of the state of Minnesota, Igo and Johnson, P., 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. 3023 be given its third reading and be placed upon its final passage.  The motion prevailed.

 

 

H. F. No. 3023, A bill for an act relating to unemployment insurance; adopting additional benefits for certain iron ore mining employees.

 

 

      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 132 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

Burkel

Carroll

Cha

Clardy

Coulter

Curran

Davids

Davis

Dippel

Dotseth

Duran

Elkins

Engen

Falconer

Feist

Finke

Fischer

Franson

Frazier

Frederick

Freiberg

Gander

Gillman

Gomez

Gordon

Gottfried

Greene

Greenman

Hansen, R.

Hanson, J.

Harder

Heintzeman

Hemmingsen-Jaeger

Her

Hicks

Hill

Hollins

Hortman

Howard

Hudson

Huot

Hussein

Igo

Jacob

Johnson, P.

Johnson, W.

Jones

Jordan

Joy

Keeler

Klevorn

Knudsen

Koegel

Kotyza-Witthuhn

Kozlowski

Kraft

Kresha

Lawrence

Lee, F.

Lee, K.

Liebling

Lillie

Long

Mahamoud

McDonald

Mekeland

Moller

Momanyi-Hiltsley

Mueller

Murphy

Myers

Nadeau

Nash

Nelson

Niska

Noor

Norris

Novotny

O'Driscoll

Olson

Pérez-Vega

Perryman

Pinto

Pursell

Quam

Rarick

Rehm

Rehrauer

Repinski

Reyer

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


 

 

      The bill was passed and its title agreed to.


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4438

       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.

 

 

MOTION TO FIX TIME TO CONVENE

 

      Niska moved that when the House adjourns today it adjourn until 12:00 noon, Tuesday, February 17, 2026.  The motion prevailed.

 

 

MOTIONS AND RESOLUTIONS, Continued

 

 

      Niska and Long moved to amend the Temporary Rules of the House for the 94th Session as adopted by the House on February 6, 2025, as modified by the Agreement for House Organization dated February 5, 2025 and the Supplemental Agreement for House Organization dated April 3, 2025, as follows:

 

Rule 10.05 is amended to read:

 

"10.05 REMOTE HOUSE OPERATIONS.  (a) The Minnesota House of Representatives may allow floor and committee procedures related to member debate and voting to occur by means of distance voting, remote electronic voting, or voting by other means designed to allow legislative operations in urgent or pressing situations.

 

(b) A member may attend and vote during floor sessions or committee meetings via remote means if practicable, for reasons related to the health or safety of the member or the member's family, and with advance permission of the Speaker of the House of Representatives.

 

(c) Witnesses may participate in committee hearings via remote means as far as is practicable.

 

(d) An entirely remote hearing or floor session may not be held without prior approval of the Speaker of the House of Representatives.

 

(e) A member who is ordered to active military service may attend and vote during floor sessions via remote means if practical, if the member submits a copy of the orders compelling the member's military service to the Speaker.  If the circumstances of the member's service make it impractical to attend a floor session in real time, the member may submit, in advance, the member's votes, limited to items of business that have been posted for that day's agenda, as practical.  Votes submitted in advance must be authenticated and delivered to the Chief Clerk through the member's official House email address, prior to the time the floor session is scheduled to convene, and in a manner that allows the authentication to be verified by all members of the House."

 

      The motion prevailed and the amendment to the Temporary Rules of the House for the 94th Session was adopted.


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4439

       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 that the Senate has concurred in and adopted the report of the Conference Committee on: 

 

H. F. No. 2115, A bill for an act relating to human services; modifying policy provisions relating to aging and disability services, the Department of Health, Direct Care and Treatment, behavioral health, and the Department of Human Services Office of Inspector General; recodifying statutory language relating to assertive community treatment and intensive residential treatment services; modifying children's mental health terminology; codifying requirement for notification of federal approval; making conforming changes; amending Minnesota Statutes 2024, sections 3.757, subdivision 1; 13.46, subdivisions 3, 4; 15.471, subdivision 6; 43A.241; 62J.495, subdivision 2; 62Q.527, subdivisions 1, 2, 3; 97A.441, subdivision 3; 121A.61, subdivision 3; 128C.02, subdivision 5; 142E.51, subdivisions 5, 6, by adding a subdivision; 142G.02, subdivision 56; 142G.27, subdivision 4; 142G.42, subdivision 3; 144.0724, subdivisions 2, 3a, 4, 9; 144.53; 144.651, subdivisions 2, 4, 10a, 20, 31, 32; 144A.07; 144A.61, by adding subdivisions; 144A.70, subdivisions 3, 7, by adding subdivisions; 144G.10, subdivisions 1, 1a, 5; 144G.16, subdivision 3; 144G.19, by adding a subdivision; 144G.52, by adding a subdivision; 144G.53; 144G.70, subdivision 2; 144G.81, subdivision 1; 144G.91, by adding a subdivision; 146A.08, subdivision 4; 147.091, subdivision 6; 147A.13, subdivision 6; 148.10, subdivision 1; 148.235, subdivision 10; 148.261, subdivision 5; 148.754; 148B.5905; 148F.09, subdivision 6; 148F.11, subdivision 1; 150A.08, subdivision 6; 151.071, subdivision 10; 153.21, subdivision 2; 153B.70; 169A.284; 244.052, subdivision 4; 245.462, subdivision 4; 245.4662, subdivision 1; 245.4682, subdivision 3; 245.469; 245.481; 245.4835, subdivision 2; 245.4863; 245.487, subdivision 2; 245.4871, subdivisions 3, 4, 6, 13, 15, 17, 19, 21, 22, 28, 29, 31, 32, 34, by adding a subdivision; 245.4873, subdivision 2; 245.4874, subdivision 1; 245.4875, subdivision 5; 245.4876, subdivisions 4, 5; 245.4877; 245.488, subdivisions 1, 3; 245.4881, subdivisions 1, 3, 4; 245.4882, subdivisions 1, 5; 245.4884; 245.4885, subdivision 1; 245.4889, subdivision 1; 245.4901, subdivision 3; 245.4906, subdivision 2; 245.4907, subdivisions 2, 3; 245.491, subdivision 2; 245.492, subdivision 3; 245.50, subdivision 2; 245.52; 245.697, subdivision 2a; 245.735, subdivision 3b; 245.814, subdivision 3; 245.826; 245.91, subdivisions 2, 4; 245.92; 245.94, subdivision 1; 245A.03, subdivision 2; 245A.04, subdivisions 1, 7; 245A.16, subdivision 1; 245A.242, subdivision 2; 245A.26, subdivisions 1, 2; 245C.05, by adding a subdivision; 245C.08, subdivision 3; 245C.22, subdivision 5; 245D.02, subdivision 4a; 245D.091, subdivision 3; 245F.06, subdivision 2; 245G.05, subdivision 1; 245G.06, subdivisions 1, 2a, 3a; 245G.07, subdivision 2; 245G.08, subdivision 6; 245G.09, subdivision 3; 245G.11, subdivisions 7, 11; 245G.18, subdivision 2; 245G.19, subdivision 4, by adding a subdivision; 245G.22, subdivisions 1, 14, 15; 245I.05, subdivisions 3, 5; 245I.06, subdivision 3; 245I.11, subdivision 5; 245I.12, subdivision 5; 246.585; 246C.06, subdivision 11; 246C.12, subdivisions 4, 6; 246C.20; 252.27, subdivision 1; 252.291, subdivision 3; 252.43; 252.46, subdivision 1a; 252.50, subdivision 5; 253B.07, subdivision 2b; 253B.09, subdivision 3a; 253B.10, subdivision 1; 253B.141, subdivision 2; 253B.18, subdivision 6; 253B.19, subdivision 2; 253D.14, subdivision 3; 253D.27, subdivision 2; 253D.28; 253D.29, subdivisions 1, 2, 3; 253D.30, subdivisions 3, 4, 5, 6; 253D.31; 254A.19, subdivision 6; 254B.04, subdivision 1a; 254B.05, subdivisions 1, 1a, 5; 256.01, subdivisions 2, 5, by adding a subdivision; 256.019, subdivision 1; 256.0281; 256.0451, subdivisions 1, 3, 6, 8, 9, 18, 22, 23, 24; 256.478, subdivision 2; 256.4825; 256.93, subdivision 1; 256.98, subdivisions 1, 7; 256B.02, subdivision 11; 256B.055, subdivision 12; 256B.0615, subdivisions 1, 3, 4; 256B.0616, subdivisions 1, 4, 5; 256B.0622, subdivisions 1, 3a, 7a, 8, 11, 12; 256B.064, subdivision 1a; 256B.0757, subdivision 2; 256B.092, subdivisions 1a, 10, 11a; 256B.0943, subdivisions 1, 3, 9, 12, 13; 256B.0945, subdivision 1; 256B.0946, subdivision 6; 256B.0947, subdivision 3a; 256B.49, subdivisions 13, 29; 256B.4911, subdivision 6; 256B.4914, subdivisions 10a, 10d; 256B.69, subdivision 23; 256B.77, subdivision 7a; 256B.82; 256D.44, subdivision 5; 256G.09, subdivisions 4, 5; 256I.04, subdivision 2c; 256L.03, subdivision 5;


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4440

256R.38; 256R.40, subdivision 5; 260B.157, subdivision 3; 260C.007, subdivisions 16, 26d, 27b; 260C.157, subdivision 3; 260C.201, subdivisions 1, 2; 260C.301, subdivision 4; 260D.01; 260D.02, subdivisions 5, 9; 260D.03, subdivision 1; 260D.04; 260D.06, subdivision 2; 260D.07; 260E.11, subdivision 3; 295.50, subdivision 9b; 299F.77, subdivision 2; 342.04; 352.91, subdivision 3f; 401.17, subdivision 1; 480.40, subdivision 1; 507.071, subdivision 1; 611.57, subdivisions 2, 4; 624.7131, subdivisions 1, 2; 624.7132, subdivisions 1, 2; 624.714, subdivisions 3, 4; 631.40, subdivision 3; Laws 2023, chapter 70, article 7, section 34; proposing coding for new law in Minnesota Statutes, chapters 245; 246C; 256B; 256G; 609; repealing Minnesota Statutes 2024, sections 144G.9999, subdivisions 1, 2, 3; 245.4862; 245A.042, subdivisions 2, 3, 4; 245A.11, subdivision 8; 246.015, subdivision 3; 246.50, subdivision 2; 246B.04, subdivision 1a; 256B.0622, subdivision 4; Laws 2024, chapter 79, article 1, sections 15; 16; 17; Minnesota Rules, part 9505.0250, subparts 1, 2, 3.

 

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee.  Said House File is herewith returned to the House.

 

Thomas S. Bottern, Secretary of the Senate

 

 

Madam Speaker:

 

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on: 

 

H. F. No. 2432, A bill for an act relating to state government; providing for judiciary, public safety, corrections, and government data practices policy; establishing Minnesota victims of crime account; modifying certain fees; establishing monetary assessments for certain corporate and individual offender convictions; transferring financial crimes and fraud investigations to the Financial Crimes and Fraud Section in the Bureau of Criminal Apprehension; clarifying Tribal Nation access and use of community services subsidy; amending real property judicial foreclosure law; providing for reports; transferring funds to the Minnesota victims of crime account; reducing certain appropriations; appropriating money for the supreme court, court of appeals, district courts, Board of Civil Legal Aid, State Guardian ad Litem Board, tax court, Uniform Laws Commission, Board on Judicial Standards, Board of Public Defense, Human Rights, Office of Appellate Counsel and Training, Competency Attainment Board, Cannabis Expungement Board, Secretary of State, Sentencing Guidelines Commission, public safety, Peace Officer Standards and Training (POST) Board, Private Detective Board, corrections, ombudsperson for corrections, Clemency Review Commission, children, youth, and families, and the Office of Higher Education; amending Minnesota Statutes 2024, sections 13.03, subdivision 3; 13.32, subdivisions 2, 5; 13.43, subdivision 2; 13.82, subdivision 1; 13.991; 43A.17, subdivision 13; 45.0135, subdivisions 2b, 6, 7, 8, 9, by adding a subdivision; 60A.951, subdivision 2; 60A.952, subdivisions 2, 4, 5; 60A.954, subdivision 2; 60A.956; 65B.84; 142A.76, subdivision 8; 144E.123, subdivision 3; 152.137, subdivisions 1, 2; 171.187, subdivisions 1, 3; 244.18, subdivisions 1, 7, 9; 244.19, subdivisions 1c, 1d, 5, 5a; 244.20; 260C.419, subdivisions 2, 3, 4; 268.19, subdivision 1; 268B.30; 297I.11, subdivision 2; 299A.01, by adding a subdivision; 299C.40, subdivision 1; 299F.47, subdivision 2; 401.03; 401.10, subdivision 1, by adding a subdivision; 401.11, subdivision 1; 401.14; 401.15, subdivision 2; 480.243, by adding a subdivision; 480.35, by adding a subdivision; 480.40, subdivisions 1, 3; 480.45, subdivision 2; 484.44; 484.51; 517.08, subdivisions 1b, 1c; 518.68, subdivision 1; 518B.01, subdivision 2; 524.5-420; 580.07, subdivisions 1, 2; 581.02; 595.02, by adding a subdivision; 609.2232; 609.322, subdivision 1; 609.531, subdivision 1; 609.78, subdivision 2c; 611.45, subdivision 3; 611.46, subdivision 2; 611.49, subdivisions 2, 3; 611.55, subdivision 3; 611.56, subdivision 1; 611.59, subdivisions 1, 4; 626.05, subdivision 2; 626.84, subdivision 1; 626.8516, subdivisions 4, 5, 6; 628.26; 629.344; Laws 2023, chapter 52, article 2, section 3, subdivision 3; article 11, section 31; proposing coding for new law in Minnesota Statutes, chapters 13; 241; 299A; 299C; 401; 480; 609; repealing Minnesota Statutes 2024, sections 45.0135, subdivisions 2a, 2c, 2d, 2e, 2f, 3, 4, 5; 325E.21, subdivision 2b.

 

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee.  Said House File is herewith returned to the House.

 

Thomas S. Bottern, Secretary of the Senate


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4441

Madam Speaker:

 

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on: 

 

H. F. No. 2446, A bill for an act relating to state government; establishing a budget for the Department of Agriculture, the Board of Animal Health, the Agricultural Utilization Research Institute, and the Office of Broadband Development; making policy and technical changes to agricultural provisions; requiring reports; transferring money; appropriating money; amending Minnesota Statutes 2024, sections 17.133, subdivision 2; 18B.01, subdivision 1d, by adding a subdivision; 18B.30; Laws 2023, chapter 43, article 1, section 2, subdivision 4, as amended; proposing coding for new law in Minnesota Statutes, chapter 18C.

 

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee.  Said House File is herewith returned to the House.

 

Thomas S. Bottern, Secretary of the Senate

 

 

Madam Speaker:

 

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on: 

 

H. F. No. 2563, A bill for an act relating to legacy; appropriating money from outdoor heritage, clean water, parks and trails, and arts and cultural heritage funds; extending prior appropriations; providing for leveraging federal grant money; modifying reporting requirements; modifying accountability provisions; amending Minnesota Statutes 2024, sections 97A.056, by adding a subdivision; 114D.30, subdivision 7; 129D.17, subdivision 2, by adding a subdivision; Laws 2023, chapter 40, article 4, section 2, subdivision 6.

 

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee.  Said House File is herewith returned to the House.

 

Thomas S. Bottern, Secretary of the Senate

 

 

Madam Speaker:

 

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on: 

 

S. F. No. 3045.

 

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee.  Said Senate File is herewith transmitted to the House.

 

Thomas S. Bottern, Secretary of the Senate

 

 

CONFERENCE COMMITTEE REPORT ON S. F. No. 3045

 

A bill for an act relating to state government operations; establishing a biennial budget; appropriating money for the legislature, certain constitutional offices and state agencies, the Minnesota Historical Society, the Minnesota Humanities Center, certain retirement accounts, certain offices, departments, boards, commissions, councils, general contingent account, and tort claims; transferring money; raising fees; making changes to policy provisions for state


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4442

government operations and local government policy; modifying state personnel management policies; modifying business filing and fraud policies; creating a task force; repealing provisions; modifying various laws related to election administration; modifying voting and absentee voting requirements and procedures; formalizing the election reporting system; clarifying terminology; expanding laws relating to reprisals for political activity; expanding election-related bribery and solicitation prohibitions; amending fair campaign practices laws; requiring the Campaign Finance and Public Disclosure Board to study campaign spending limits; modifying campaign finance definitions; establishing and modifying disclaimer requirements; amending standards for coordinated and noncoordinated expenditures and disbursements; modifying laws on transition expenses; modifying campaign finance definitions; modifying statement of economic interest requirements; modifying payment for the presidential nomination primary; providing for civil causes of action and civil enforcement; providing criminal and civil penalties; authorizing rulemaking; repealing the voting equipment grant account; requiring reports and publications; amending Minnesota Statutes 2024, sections 3.06; 3.084, subdivision 2; 3.971, subdivisions 2, 8a, 9; 10A.01, subdivisions 16a, 18, 21, 22, 24, 26, 26b, 35, by adding a subdivision; 10A.04, subdivisions 4, 6; 10A.06; 10A.07, subdivisions 1, 2; 10A.08, subdivision 1; 10A.09, subdivisions 1, 5, 5a, 6a; 10A.175, by adding a subdivision; 10A.176; 10A.177; 10A.20, by adding a subdivision; 10A.201, subdivision 6; 10A.202, subdivision 4; 10A.36; 11A.24, by adding a subdivision; 13.485, subdivision 1, by adding a subdivision; 13D.02, subdivisions 1, 4; 14.48, subdivisions 1, 2; 14.62, subdivisions 1, 2a, by adding a subdivision; 15B.06, subdivision 1; 16A.152, subdivision 8; 16B.055, subdivision 1; 16B.335, subdivision 2; 16B.48, subdivision 4; 16B.54, subdivision 2; 16B.97, subdivision 1, by adding a subdivision; 16B.98, subdivisions 1, 4; 16B.981, subdivision 4; 16B.991, subdivision 2; 16C.05, by adding a subdivision; 16C.137, subdivision 2; 16C.16, subdivisions 2, 6, 6a, 7; 16D.09, subdivision 1; 43A.01, subdivision 3; 43A.02, subdivision 14; 43A.04, subdivisions 1, 4, 8; 43A.05, subdivision 3; 43A.08, subdivisions 1a, 4; 43A.11, subdivision 9; 43A.121; 43A.15, subdivisions 4, 7, 12, 14; 43A.17, subdivision 5; 43A.181, subdivision 1; 43A.1815; 43A.19, subdivision 1; 43A.23, subdivisions 1, 2; 43A.231, subdivisions 3, 4, 6; 43A.24, subdivisions 1a, 2; 43A.27, subdivisions 2, 3; 43A.33, subdivision 3; 43A.346, subdivisions 2, 6; 43A.36, subdivision 1; 43A.421; 124E.03, by adding a subdivision; 155A.23, by adding a subdivision; 155A.27, subdivision 2; 155A.2705, subdivision 3; 155A.30, subdivision 2; 201.054, subdivisions 1, 2; 201.056; 201.061, subdivisions 1, 3, 3a, 4, 5, 7; 201.071, subdivisions 1, 4; 201.091, subdivisions 5, 8; 201.121, subdivisions 1, 3; 201.13, subdivision 3; 201.14; 201.161, subdivisions 4, 5, 8; 201.162; 201.225, subdivisions 2, 5; 201.275; 202A.20, subdivision 2; 203B.04, subdivisions 1, 4; 203B.05, subdivision 1; 203B.06, subdivision 4; 203B.07, subdivisions 1, 3; 203B.08, subdivisions 1, 3; 203B.081, subdivision 4; 203B.11, subdivision 1; 203B.121, subdivisions 2, 4, 5; 203B.17, subdivision 3; 203B.23, subdivision 2; 203B.29, subdivisions 1, 2; 203B.30, subdivisions 2, 3; 204B.06, subdivisions 1, 1b; 204B.07, subdivision 2; 204B.09, subdivisions 1a, 2, 3; 204B.14, subdivisions 2, 4a; 204B.16, subdivision 1a; 204B.175, subdivision 3; 204B.21, subdivisions 1, 2, by adding a subdivision; 204B.24; 204B.25, subdivision 3; 204B.28, subdivision 2; 204B.44; 204B.45, subdivision 2; 204C.05, subdivision 2; 204C.06, subdivisions 1, 2, 6; 204C.08, subdivision 1d; 204C.09, subdivision 1; 204C.10; 204C.15, subdivisions 2, 3; 204C.24, subdivision 1; 204C.32, subdivision 1; 204C.33, subdivision 1; 205.07, by adding a subdivision; 205.075, subdivision 4; 205.13, subdivisions 1, 1a; 205.185, subdivision 3; 205A.06, subdivisions 1, 1a; 205A.10, subdivisions 2, 3; 205A.11, subdivision 2; 206.83; 207A.11; 211A.02, subdivisions 1, 2; 211B.04, subdivisions 1, 2, 3, 5, by adding a subdivision; 211B.13; 211B.32, subdivisions 1, 4; 211B.35, subdivision 2; 222.37, subdivision 1; 240.131, subdivision 7; 302A.153; 303.06, by adding a subdivision; 303.21; 308A.131, subdivision 2; 308B.215, subdivision 2; 317A.151, subdivision 2; 321.0206; 322C.0201, subdivision 4; 322C.0802; 323A.0101; 326.05; 326.10, subdivisions 1, 2, 10; 326.111, subdivisions 3, 4, 5, by adding a subdivision; 326A.03, subdivision 6, by adding subdivisions; 326A.14; 331A.10, subdivision 2; 349A.01, by adding a subdivision; 349A.06, subdivisions 2, 4, 11; 367.36, subdivision 1; 368.47; 375.20; 383B.041, subdivision 5; 383C.035; 412.02, subdivision 3; 412.591, subdivision 3; 414.09, subdivision 3; 447.32, subdivision 4; 466.01, subdivision 1; 477A.017, subdivision 3; 609.48, subdivision 1; Laws 2023, chapter 62, article 1, sections 11, subdivision 2; 13; proposing coding for new law in Minnesota Statutes, chapters 1; 5; 6; 8; 10A; 15; 16B; 16C; 204B; 207A; 211B; 300; 383A; 471; repealing Minnesota Statutes 2024, sections 16B.328, subdivision 2; 16B.45; 16B.98, subdivision 14; 16C.36; 43A.315; 43A.317, subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 10, 12; 43A.318, subdivisions 1, 2, 4, 5; 206.57, subdivision 5b; 206.95; 209.06; 211B.04, subdivision 4; 211B.06; 211B.08; 383C.07; 383C.74, subdivisions 1, 2, 3, 4; 471.9998; Laws 2023, chapter 53, article 17, section 2; Laws 2024, chapter 120, article 3, section 2; Minnesota Rules, parts 1105.7900, item D; 4503.2000, subpart 2; 4511.1100.


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4443

May 19, 2025

The Honorable Bobby Joe Champion

President of the Senate

 

The Honorable Lisa M.  Demuth

Speaker of the House of Representatives

 

We, the undersigned conferees for S. F. No. 3045 report that we have agreed upon the items in dispute and recommend as follows:

 

That the House recede from its amendments and that S. F. No. 3045 be further amended as follows:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

STATE GOVERNMENT AND ELECTIONS APPROPRIATIONS

 

      Section 1.  STATE GOVERNMENT AND ELECTIONS APPROPRIATIONS. 

 

The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article.  The appropriations are from the general fund, or another named fund, and are available for the fiscal years 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 year 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.  LEGISLATURE

 

 

 

 

 

      Subdivision 1.  Total Appropriation

 

$112,970,000

 

$114,534,000

 

The amounts that may be spent for each purpose are specified in the following subdivisions.  The base for this appropriation is $112,818,000 in fiscal year 2028 and each fiscal year thereafter.

 

      Subd. 2.  Senate

 

38,238,000

 

39,690,000

 

      Subd. 3.  House of Representatives

 

42,375,000

 

41,163,000

 

The base for this appropriation is $39,437,000 in fiscal year 2028 and each fiscal year thereafter.

 

      Subd. 4.  Legislative Coordinating Commission

 

 32,357,000

 

33,681,000

 

The base for this appropriation is $33,691,000 in fiscal year 2028 and each fiscal year thereafter.


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4444

Legislative Auditor.
 
$12,365,000 the first year and $12,857,000 the second year are for the Office of the Legislative Auditor.  The base for this appropriation is $12,867,000 in fiscal year 2028 and each fiscal year thereafter.

 

Revisor of Statutes.  $9,094,000 the first year and $9,466,000 the second year are for the Office of the Revisor of Statutes.

 

Legislative Reference Library.  $2,278,000 the first year and $2,369,000 the second year are for the Legislative Reference Library.

 

Legislative Budget Office.  $2,800,000 the first year and $2,965,000 the second year are for the Legislative Budget Office.

 

      Sec. 3.  GOVERNOR AND LIEUTENANT GOVERNOR

$9,231,000

 

$9,231,000

 

(a) $19,000 each year is for necessary expenses in the normal performance of the governor's and lieutenant governor's duties for which no other reimbursement is provided.

 

(b) By September 1 of each year, the commissioner of management and budget shall report to the chairs and ranking minority members of the legislative committees with jurisdiction over state government finance any personnel costs incurred by the Offices of the Governor and Lieutenant Governor that were supported by appropriations to other agencies during the previous fiscal year.  The Office of the Governor shall inform the chairs and ranking minority members of the committees before initiating any interagency agreements.

 

      Sec. 4.  STATE AUDITOR

 

$15,634,000

 

$16,247,000

 

The base for this appropriation is $16,163,000 in fiscal year 2028 and each fiscal year thereafter.

 

      Sec. 5.  ATTORNEY GENERAL

 

$48,875,000

 

$47,684,000

 

Appropriations by Fund

 

 

2026

 

2027

General

 45,459,000

44,268,000

State Government

 Special Revenue

 

3,021,000

 

3,021,000

Environmental

145,000

145,000

Remediation

250,000

250,000

 

The general fund base for this appropriation is $43,909,000 in fiscal year 2029 and each fiscal year thereafter.


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4445

       Sec. 6.  SECRETARY OF STATE

 

$10,045,000

 

$9,929,000

 

The base for this appropriation is $9,859,000 in fiscal year 2028 and $9,929,000 in fiscal year 2029.

 

      Sec. 7.  CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD

 

$2,579,000

 

 

$1,846,000

 

$760,000 the first year is to pay fees and expenses if an order granting plaintiff's motion for them is filed in Minnesota Chamber of Commerce v. Choi (23-CV-02015).  The board must pay, on behalf of all defendants, all fees and expenses awarded to the plaintiff.

 

      Sec. 8.  STATE BOARD OF INVESTMENT

 

$139,000

 

$139,000

 

      Sec. 9.  ADMINISTRATIVE HEARINGS

 

$11,110,000

 

$11,709,000

 

Appropriations by Fund

 

 

2026

 

2027

General

705,000

715,000

Workers' Compensation

10,405,000

10,994,000

 

      Sec. 10.  INFORMATION TECHNOLOGY SERVICES

$10,939,000

 

$11,150,000

 

During the biennium ending June 30, 2027, the Department of Information Technology Services must not charge fees to a public noncommercial educational television broadcast station eligible for funding under Minnesota Statutes, chapter 129D, for access to the state broadcast infrastructure.  If the access fees not charged to public noncommercial educational television broadcast stations total more than $400,000 for the biennium, the office may charge for access fees in excess of these amounts.

 

      Sec. 11.  ADMINISTRATION

 

 

 

 

 

      Subdivision 1.  Total Appropriation

 

$36,849,000

 

$37,166,000

 

The base for this appropriation is $36,666,000 in fiscal year 2028 and each fiscal year thereafter.  The amounts that may be spent for each purpose are specified in the following subdivisions.

 

      Subd. 2.  Government and Citizen Services

 

 17,367,000

 

17,644,000

 

The base for this appropriation is $17,646,000 in fiscal year 2028 and each fiscal year thereafter.

 

Council on Developmental Disabilities.  $222,000 each year is for the Council on Developmental Disabilities.


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4446

State Agency Accommodation Reimbursement.
 
$200,000 each year may be transferred to the accommodation account established in Minnesota Statutes, section 16B.4805.

 

Office of Enterprise Translations.  $1,010,000 each year is for the Office of Enterprise Translations.  Of this amount, $100,000 each year may be transferred to the language access service account established in Minnesota Statutes, section 16B.373.

 

      Subd. 3.  Strategic Management Services

 

2,676,000

 

2,716,000

 

      Subd. 4.  Fiscal Agent

 

16,806,000

 

16,806,000

 

The base for this appropriation is $16,304,000 in fiscal year 2028 and each fiscal year thereafter.  The appropriations under this subdivision are to the commissioner of administration for the purposes specified.

 

In Lieu of Rent.  $12,102,000 each year is for space costs of the legislature and veterans organizations, ceremonial space, and statutorily free space.  The base for this appropriation is $11,600,000 in fiscal year 2028 and each fiscal year thereafter.

 

Public Television.  (a) $1,550,000 each year is for matching grants for public television.

 

(b) $250,000 each year is for public television equipment grants under Minnesota Statutes, section 129D.13.

 

(c) $500,000 each year is for block grants to public television under Minnesota Statutes, section 129D.13.  Of this amount, up to three percent is for the commissioner of administration to administer the grants.

 

(d) The commissioner of administration must consider the recommendations of the Minnesota Public Television Association before allocating the amounts appropriated in paragraphs (a) and (b) for equipment or matching grants.

 

Public Radio.  (a) $1,242,000 each year is for community service grants to public educational radio stations.  This appropriation may be used to disseminate emergency information in foreign languages.  Any unencumbered balance does not cancel at the end of the first year and is available for the second year.  The Association of Minnesota Public Educational Radio Stations may use up to four percent of this appropriation for costs that are directly related to and necessary for the administration of these grants.

 

(b) $142,000 each year is for equipment grants to public educational radio stations.  This appropriation may be used for the repair, rental, purchase, upgrades of equipment and software, including computer software, applications, firmware, and equipment under $500.


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(c) $1,020,000 each year is for equipment grants to Minnesota Public Radio, Inc., including upgrades to Minnesota's Emergency Alert and AMBER Alert Systems.

 

(d) The appropriations in paragraphs (a) to (c) may not be used for indirect costs claimed by an institution or governing body.

 

(e) The commissioner of administration must consider the recommendations of the Association of Minnesota Public Educational Radio Stations before awarding grants under Minnesota Statutes, section 129D.14, using the appropriations in paragraphs (a) and (b).  No grantee is eligible for a grant unless they are a member of the Association of Minnesota Public Educational Radio Stations on or before July 1, 2025.

 

(f) Any unencumbered balance remaining the first year for grants to public television or public radio stations does not cancel and is available for the second year.

 

      Sec. 12.  CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD

 

$464,000

 

 

$472,000

 

      Sec. 13.  MINNESOTA MANAGEMENT AND BUDGET

$52,114,000

 

$52,312,000

 

      Sec. 14.  REVENUE

 

 

 

 

 

      Subdivision 1.  Total Appropriation

 

$215,661,000

 

$216,973,000

 

Appropriations by Fund

 

 

2026

 

2027

General

 211,401,000

 212,713,000

Health Care Access

1,760,000

1,760,000

Highway User Tax

 Distribution

 

2,195,000

 

2,195,000

Environmental

305,000

305,000

 

The general fund base for this appropriation is $212,651,000 in fiscal year 2028 and each fiscal year thereafter.

 

      Subd. 2.  Tax System Management

 

 179,876,000

 

 180,453,000

 

Appropriations by Fund

 

General

 175,616,000

 176,193,000

Health Care Access

1,760,000

1,760,000

Highway User Tax

 Distribution

 

2,195,000

 

2,195,000

Environmental

305,000

305,000

 

The general fund base for this appropriation is $176,131,000 in fiscal year 2028 and each fiscal year thereafter.


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Taxpayer Assistance and Tax Credit Outreach Grants.
 
(a) $1,250,000 each year is for taxpayer assistance grants under Minnesota Statutes, section 270C.21, subdivision 3.  The unencumbered balance in the first year does not cancel but is available for the second year.

 

(b) $1,500,000 each year is for tax credit outreach grants under Minnesota Statutes, section 270C.21, subdivision 4.

 

      Subd. 3.  Debt Collection Management

 

35,785,000

 

36,520,000

 

      Sec. 15.  GAMBLING CONTROL

 

$6,334,000

 

$6,334,000

 

These appropriations are from the lawful gambling regulation account in the special revenue fund.

 

      Sec. 16.  RACING COMMISSION

 

$954,000

 

$954,000

 

These appropriations are from the racing and card playing regulation accounts in the special revenue fund.

 

      Sec. 17.  STATE LOTTERY

 

 

 

 

 

Notwithstanding Minnesota Statutes, section 349A.10, subdivision 3, the State Lottery's operating budget must not exceed $45,000,000 in fiscal year 2026 and $45,000,000 in fiscal year 2027.

 

      Sec. 18.  AMATEUR SPORTS COMMISSION

 

$401,000

 

$411,000

 

      Sec. 19.  COUNCIL FOR MINNESOTANS OF AFRICAN HERITAGE

 

$828,000

 

 

$840,000

 

      Sec. 20.  COUNCIL ON LATINO AFFAIRS

 

$743,000

 

$755,000

 

      Sec. 21.  COUNCIL ON ASIAN-PACIFIC MINNESOTANS

 

$655,000

 

 

$665,000

 

      Sec. 22.  COUNCIL ON LGBTQIA2S+ MINNESOTANS

$557,000

 

$565,000

 

      Sec. 23.  INDIAN AFFAIRS COUNCIL

 

$1,381,000

 

$1,402,000

 

      Sec. 24.  MINNESOTA HISTORICAL SOCIETY

 

 

 

 

 

      Subdivision 1.  Total Appropriation

 

$26,763,000

 

$27,076,000

 

The amounts that may be spent for each purpose are specified in the following subdivisions.


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       Subd. 2.  Operations and Programs

 

26,442,000

 

26,755,000

 

Notwithstanding Minnesota Statutes, section 138.668, the Minnesota Historical Society may not charge a fee for its general tours at the Capitol, but may charge fees for special programs other than general tours.

 

Subd. 3.  Fiscal Agent

 

321,000

 

321,000

 

(a) Global Minnesota

 

39,000

 

39,000

 

(b) Minnesota Air National Guard Museum

 

17,000

 

17,000

 

(c) Hockey Hall of Fame

 

100,000

 

100,000

 

(d) Farmamerica

 

115,000

 

115,000

 

(e) Minnesota Military Museum

 

50,000

 

50,000

 

Any unencumbered balance remaining in this subdivision the first year does not cancel but is available for the second year of the biennium.

 

      Sec. 25.  BOARD OF THE ARTS

 

 

 

 

 

      Subdivision 1.  Total Appropriation

 

$7,798,000

 

$7,808,000

 

The amounts that may be spent for each purpose are specified in the following subdivisions.

 

      Subd. 2.  Operations and Services

 

859,000

 

869,000

 

      Subd. 3.  Grants Program

 

4,800,000

 

4,800,000

 

      Subd. 4.  Regional Arts Councils

 

2,139,000

 

2,139,000

 

Any unencumbered balance remaining in this section the first year does not cancel, but is available for the second year.

 

Money appropriated in this section and distributed as grants may only be spent on projects located in Minnesota.  A recipient of a grant funded by an appropriation in this section must not use more than ten percent of the total grant for costs related to travel outside the state of Minnesota.

 

      Sec. 26.  MINNESOTA HUMANITIES CENTER

 

$970,000

 

$970,000

 

$500,000 each year is for Healthy Eating, Here at Home grants under Minnesota Statutes, section 138.912.  No more than three percent of the appropriation may be used for the nonprofit administration of the program.


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       Sec. 27.  BOARD OF ACCOUNTANCY

 

$873,000

 

$887,000

 

      Sec. 28.  BOARD OF ARCHITECTURE ENGINEERING, LAND SURVEYING, LANDSCAPE ARCHITECTURE, GEOSCIENCE, AND INTERIOR DESIGN

 

 

$928,000

 

 

 

$943,000

 

      Sec. 29.  BOARD OF COSMETOLOGIST EXAMINERS

$3,659,000

 

$3,716,000

 

      Sec. 30.  BOARD OF BARBER EXAMINERS

 

$459,000

 

$466,000

 

      Sec. 31.  CHILDREN, YOUTH, AND FAMILIES

 

$55,000

 

$-0-

 

$55,000 the first year is to integrate the transit assistance program into the MNbenefits web portal under article 2, section 66.

 

      Sec. 32.  GENERAL CONTINGENT ACCOUNTS

 

$2,000,000

 

$500,000

 

Appropriations by Fund

 

 

2026

2027

General

1,500,000

-0-

State Government

 Special Revenue

 

400,000

 

400,000

Workers' Compensation

100,000

100,000

 

(a) The general fund base for this appropriation is $1,500,000 in fiscal year 2028 and each even-numbered fiscal year thereafter.  The base is $0 for fiscal year 2029 and each odd-numbered fiscal year thereafter.

 

(b) The appropriations in this section may only be spent with the approval of the governor after consultation with the Legislative Advisory Commission pursuant to Minnesota Statutes, section 3.30.

 

(c) If an appropriation in this section for either year is insufficient, the appropriation for the other year is available for it.

 

      Sec. 33.  TORT CLAIMS

 

$161,000

 

$161,000

 

These appropriations are to be spent by the commissioner of management and budget according to Minnesota Statutes, section 3.736, subdivision 7.  If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

 

      Sec. 34.  MINNESOTA STATE RETIREMENT SYSTEM

 

 

 

 

      Subdivision 1.  Total Appropriation

 

$15,064,000

 

$15,154,000

 

The amounts that may be spent for each purpose are specified in the following subdivisions.


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       Subd. 2.  Combined Legislators and Constitutional Officers Retirement Plan

 

9,064,000

 

 

9,154,000

 

Under Minnesota Statutes, sections 3A.03, subdivision 2; 3A.04, subdivisions 3 and 4; and 3A.115.

 

      Subd. 3.  Judges Retirement Plan

 

6,000,000

 

6,000,000

 

For transfer to the judges retirement fund under Minnesota Statutes, section 490.123.  This transfer continues each fiscal year until the judges retirement plan reaches 100 percent funding as determined by an actuarial valuation prepared according to Minnesota Statutes, section 356.214.

 

      Sec. 35.  PUBLIC EMPLOYEES RETIREMENT ASSOCIATION

 

$25,000,000

 

 

$25,000,000

 

(a) $9,000,000 each year is for direct state aid to the public employees police and fire retirement plan authorized under Minnesota Statutes, section 353.65, subdivision 3b.

 

(b) State payments from the general fund to the Public Employees Retirement Association on behalf of the former MERF division account are $16,000,000 on September 15, 2026, and $16,000,000 on September 15, 2027.  These amounts are estimated to be needed under Minnesota Statutes, section 353.505.

 

      Sec. 36.  TEACHERS RETIREMENT ASSOCIATION

$29,831,000

 

$29,831,000

 

The amounts estimated to be needed are as follows:

 

Special Direct State Aid.  $27,331,000 each year is for special direct state aid authorized under Minnesota Statutes, section 354.436.

 

Special Direct State Matching Aid.  $2,500,000 each year is for special direct state matching aid authorized under Minnesota Statutes, section 354.435.

 

      Sec. 37.  ST. PAUL TEACHERS RETIREMENT FUND

$14,827,000

 

$14,827,000

 

The amounts estimated to be needed for special direct state aid to the first class city teachers retirement fund association authorized under Minnesota Statutes, section 354A.12, subdivisions 3a and 3c.

 

Sec. 38.  Laws 2023, chapter 53, article 17, section 2, subdivision 1, is amended to read:

 

Subdivision 1.  Account established; appropriation.  (a) A Capitol Area community vitality account is established in the special revenue fund.  Money in the account is appropriated to the commissioner of administration to improve the livability, economic health, and safety of communities within the Capitol Area, provided that no funds may be expended until a detailed program and oversight plan to govern their use, in accordance with the spending recommendations of the Capitol Area Community Vitality Task Force as approved by the Capitol Area Architectural and Planning Board, has been further approved by law.


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(b) As used in this section, "Capitol Area" includes that part of the city of St. Paul within the boundaries described in Minnesota Statutes, section 15B.02.

 

Sec. 39.  Laws 2023, chapter 62, article 1, section 11, subdivision 2, is amended to read:

 

      Subd. 2.  Government and Citizen Services

 

39,928,000

 

19,943,000

 

The base for this appropriation is $17,268,000 in fiscal year 2026 and $17,280,000 in fiscal year 2027.

 

Council on Developmental Disabilities.  $222,000 each year is for the Council on Developmental Disabilities.

 

State Agency Accommodation Reimbursement.  $200,000 each year may be transferred to the accommodation account established in Minnesota Statutes, section 16B.4805.

 

Disparity Study.  $500,000 the first year and $1,000,000 the second year are to conduct a study on disparities in state procurement.  This is a onetime appropriation. 

 

Grants Administration Oversight.  $2,411,000 the first year and $1,782,000 the second year are for grants administration oversight.  The base for this appropriation in fiscal year 2026 and each year thereafter is $1,581,000.

 

$735,000 the first year and $201,000 the second year are for a study to develop a road map on the need for an enterprise grants management system and to implement the study's recommendation.  This is a onetime appropriation. 

 

Risk Management Fund Property Self-Insurance.  $12,500,000 the first year is for transfer to the risk management fund under Minnesota Statutes, section 16B.85.  This is a onetime appropriation. 

 

Office of Enterprise Translations.  $1,306,000 the first year and $1,159,000 the second year are to establish the Office of Enterprise Translations.  $250,000 each year may be transferred to the language access service account established in Minnesota Statutes, section 16B.373.

 

Capitol Mall Design Framework Implementation.  $5,000,000 the first year is to implement the updated Capitol Mall Design Framework, prioritizing the framework plans identified in article 2, section 124.  This appropriation is available until December 31, 2024 June 30, 2027.

 

Parking Fund.  $3,255,000 the first year and $1,085,000 the second year are for a transfer to the state parking account to maintain the operations of the parking and transit program on the Capitol complex.  These are onetime transfers.


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Procurement; Environmental Analysis and Task Force. 
$522,000 the first year and $367,000 the second year are to implement the provisions of Minnesota Statutes, section 16B.312.

 

Center for Rural Policy and Development.  $100,000 the first year is for a grant to the Center for Rural Policy and Development.

 

EFFECTIVE DATE.  This section is effective retroactively from July 1, 2024.

 

Sec. 40.  Laws 2023, chapter 62, article 1, section 13, is amended to read:

 

      Sec. 13.  MINNESOTA MANAGEMENT AND BUDGET

 

$55,356,000

 

$58,057,000 56,357,000

The base for this appropriation is $47,831,000 in fiscal year 2026 and each fiscal year thereafter.

 

(a) $13,489,000 the first year and $14,490,000 the second year are to stabilize and secure the state's enterprise resource planning systems.  This amount is available until June 30, 2027.  The base for this appropriation is $6,470,000 in fiscal year 2026 and each fiscal year thereafter.

 

(b) $1,000,000 each year is for administration and staffing of the Children's Cabinet established in Minnesota Statutes, section 4.045.

 

(c) $317,000 each year is to increase the agency's capacity to proactively raise awareness about the capital budget process and provide technical assistance around the requirements associated with the capital budget process and receiving general fund or general obligation bond funding for capital projects, including compliance requirements that must be met at various stages of capital project development, with particular focus on nonprofits, American Indian communities, and communities of color that have traditionally not participated in the state capital budget process.  This appropriation may also be used to increase the agency's capacity to coordinate with other state agencies regarding the administration of grant agreements, programs, and technical assistance related to capital projects governed by the provisions of Minnesota Statutes, chapter 16A, and other applicable laws and statutes.

 

(d) $2,500,000 each in fiscal year is 2024 and $800,000 in fiscal year 2025 are for interagency collaboration to develop data collection standards for race, ethnicity, gender identity, and disability status and to develop a roadmap and timeline for implementation of the data standards across state government.  These funds may be transferred to other agencies to support this work and may be used to update computer systems to accommodate revised data collection standards.  This is a onetime appropriation and is available until June 30, 2027.


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(e) $102,000 the first year and $60,000 the second year are for the report required under Minnesota Statutes, section 43A.15, subdivision 14a, and for training and content development relating to ADA Title II, affirmative action, equal employment opportunity, digital accessibility, inclusion, disability awareness, and cultural competence.

 

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

 

Sec. 41.  Laws 2023, chapter 62, article 1, section 47, is amended to read:

 

Sec. 47.  ST. ANTHONY FALLS STUDY.

 

$1,000,000 in fiscal year 2024 is appropriated from the general fund to the Board of Regents of the University of Minnesota for a geophysical study and hazard assessment of the St. Anthony Falls area and St. Anthony Falls cutoff wall.  The study must include a field-based investigation of the cutoff wall and other subsurface structures, modeling of the surrounding area, examination of public safety and infrastructure risks posed by potential failure of the cutoff wall or surrounding area, and emergency response plan for identified risks.  By conducting this study, the Board of Regents does not consent to accepting liability for the current condition or risks posed by a potential failure of the cutoff wall.  By July 1, 2025 2026, the Board of Regents must submit a report to the legislative committees with jurisdiction over state and local government policy and finance.  This appropriation is available until June 30, 2025 2026.

 

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

 

Sec. 42.  Laws 2024, chapter 127, article 67, section 6, is amended to read:

 

Sec. 6.  COMMISSIONER OF MANAGEMENT AND BUDGET

 

 

 

 

Appropriations by Fund

 

 

2024

 

2025

General

-0-

(232,000)

Health Care Access

-0-

100,000

 

(a) Insulin safety net program.  $100,000 in fiscal year 2025 is from the health care access fund for the insulin safety net program in Minnesota Statutes, section 151.74.

 

(b) Transfer.  The commissioner must transfer from the health care access fund to the insulin safety net program repayment account in the special revenue fund the amount certified by the commissioner of administration under Minnesota Statutes, section 151.741, subdivision 5, paragraph (b), estimated to be $100,000 in fiscal year 2025, for reimbursement to manufacturers for insulin dispensed under the insulin safety net program in Minnesota Statutes, section 151.74.  The base for this transfer is estimated to be $100,000 in fiscal year 2026 and $100,000 in fiscal year 2027.


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(c) Base Level Adjustment.  The health care access fund base is increased by $100,000 in fiscal year 2026 and increased by $100,000 in fiscal year 2027.

 

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

 

Sec. 43.  APPROPRIATION EXTENSION; AMATEUR SPORTS COMMISSION.

 

The fiscal year 2024 appropriation in Laws 2023, chapter 62, article 1, section 18, is available until June 30, 2027.

 

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

 

Sec. 44.  TEMPORARY CARRYFORWARD AUTHORITY.

 

Subdivision 1.  Definitions.  The definitions in Minnesota Statutes, section 16A.011 apply to this section.

 

Subd. 2.  Carryforward.  (a) Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, agencies may carry forward unexpended and unencumbered nongrant operating balances from fiscal year 2025 into fiscal year 2026.

 

(b) Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, agencies may carry forward unexpended and unencumbered nongrant operating balances from fiscal year 2027 into fiscal year 2028.

 

(c) Notwithstanding Minnesota Statutes, section 16A.28, subdivision 3, agencies may carry forward unexpended and unencumbered nongrant operating balances from fiscal year 2029 into fiscal year 2030.

 

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

 

Sec. 45.  APPROPRIATION; ADMINISTRATION.

 

$3,000,000 in fiscal year 2026 is appropriated from the Capitol Area community vitality account to the commissioner of administration for a grant to Ramsey County for the Ramsey County sheriff to implement a coordinated public safety and livability plan in the Capitol Area.  The plan must be developed in partnership with the Capitol Area Architectural and Planning Board and their community partners to improve the livability, economic health, and safety of communities within the Capitol Area excluding the state-owned buildings and state leased‑to‑own buildings in the Capitol Area.  The coordinated effort must focus specifically on public safety, youth and family programming, and street and neighborhood cleanup and ambassadors.  The Ramsey County sheriff must consult the commissioner of public safety in all matters involving the Capitol complex prior to the expenditure of these funds.  This appropriation is available until June 30, 2029.

 

Sec. 46.  TRANSFERS.

 

(a) The secretary of state, in consultation with the commissioner of management and budget, must transfer $3,000,000 in fiscal year 2026 and $3,000,000 in fiscal year 2027 from the general fund to the voting operations, technology, and election resources account established under Minnesota Statutes, section 5.305.  For fiscal years 2028 to 2031, the commissioner of management and budget must include a transfer of $3,000,000 each year from the general fund to the voting operations, technology, and election resources account, when preparing each forecast from the effective date of this section through the February 2027 forecast, under Minnesota Statutes, section 16A.103.

 

(b) The secretary of state, in consultation with the commissioner of management and budget, must transfer $25,000 in fiscal year 2026 and $25,000 in fiscal year 2027 from the general fund to the Voting Rights Act cost sharing account established under Minnesota Statutes, section 200.60, subdivision 1.  For fiscal years 2028 to 2031,


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the commissioner of management and budget must include a transfer of $25,000 each year from the general fund to the Voting Rights Act cost sharing account, when preparing each forecast from the effective date of this section through the February 2027 forecast, under Minnesota Statutes, section 16A.103.

 

(c) The secretary of state, in consultation with the commissioner of management and budget, must transfer $200,000 in fiscal year 2026 from the general fund to the Help America Vote Act (HAVA) account established in Minnesota Statutes, section 5.30.  This is a onetime transfer.

 

(d) The secretary of state, in consultation with the commissioner of management and budget, must transfer any balance remaining in the voting equipment grant account established under Minnesota Statutes, section 206.95, on the effective date of this section to the voting operations, technology, and election resources account established under Minnesota Statutes, section 5.305.

 

(e) The commissioner of management and budget must transfer $2,000,000 in fiscal year 2026 from the Capitol Area vitality account established in Laws 2023, chapter 53, article 17, section 2, to the general fund.  This is a onetime transfer.

 

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

 

ARTICLE 2

STATE GOVERNMENT POLICY

 

Section 1.  [1.1466] STATE FOSSIL.

 

Subdivision 1.  Designation.  Castoroides ohioensis, commonly known as the giant beaver, or capa in Dakota and amik in Ojibwe, is designated as the official state fossil of the state of Minnesota.

 

Subd. 2.  Photograph.  A photograph of the giant beaver, approved by the commissioner of natural resources, shall be preserved and may be displayed in the Office of the Secretary of State.

 

Sec. 2.  [1.1493] STATE CONSTELLATION.

 

Ursa Minor is the official constellation of the state of Minnesota.

 

Sec. 3.  Minnesota Statutes 2024, section 3.06, is amended to read:

 

3.06 OFFICERS AND EMPLOYEES.

 

Subdivision 1.  Election.  Thereupon, if a quorum is present, the houses shall elect the following officers, any of whom may be removed by resolution of the appointing body.

 

The senate shall elect a president, who shall be a member of the senate, secretary, a first and a second assistant secretary, an enrolling clerk, an engrossing clerk, a sergeant-at-arms, an assistant sergeant-at-arms, and a chaplain.

 

The house of representatives shall elect a speaker, who shall be a member of the house of representatives, a chief clerk, a first and a second assistant clerk, an index clerk, a chief sergeant-at-arms, a first and a second assistant sergeant-at-arms, a postmaster, an assistant postmaster, and a chaplain.

 

Subd. 2.  Successors.  If an officer of the house of representatives or senate resigns or dies, the duties of the officer shall be performed by a successor as provided in the rules of the officer's house until a successor is elected at a regular or special session.


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Sec. 4.  Minnesota Statutes 2024, section 3.099, subdivision 3, is amended to read:

 

Subd. 3.  Leaders.  The senate Committee on Rules and Administration for the senate and the house of representatives Committee on Rules and Legislative Administration for the house of representatives may each designate for their respective body up to five six leadership positions to receive up to 140 percent of the compensation of other members.

 

At the commencement of each biennial legislative session, each house of the legislature shall adopt a resolution designating its majority and minority leader.

 

The majority leader is the person elected by the caucus of members in each house which is its largest political affiliation.  The minority leader is the person elected by the caucus which is its second largest political affiliation.

 

EFFECTIVE DATE.  This section is effective retroactively from January 14, 2025.

 

Sec. 5.  Minnesota Statutes 2024, section 3.303, subdivision 3, is amended to read:

 

Subd. 3.  Chair and vice-chair.  The chair of the commission alternates between the president of the senate and the speaker of the house of representatives at the start of the regular legislative session in each odd-numbered year.  When not serving as chair, the president of the senate or the speaker of the house serves as vice-chair.

 

Sec. 6.  Minnesota Statutes 2024, section 3.305, subdivision 1, is amended to read:

 

Subdivision 1.  Definitions.  (a) "Legislative commission" means a joint commission, committee, or other entity in the legislative branch composed exclusively of members of the senate and the house of representatives.

 

(b) "Joint offices" means the Revisor of Statutes, Legislative Reference Library, the Office of Legislative Auditor, the Legislative Budget Office, Legislative Coordinating Commission, and any other joint legislative service office.

 

Sec. 7.  Minnesota Statutes 2024, section 3.305, subdivision 9, is amended to read:

 

Subd. 9.  Joint legislative studies.  The Legislative Coordinating Commission shall oversee and coordinate all joint legislative studies mandated by the legislature and may require regular progress reports to the commission and appropriate standing committees of the house of representatives and the senate.  Appropriations for all joint legislative studies except those specifically assigned to an existing legislative office or commission shall be made to the Legislative Coordinating Commission.  Responsibility and appropriations for a joint legislative study may be delegated by the Legislative Coordinating Commission to an existing staff office of the house of representatives or senate, a legislative commission, a joint legislative committee or office or a state agency.  The office, commission, joint committee, or agency responsible for the study may contract with another agent for assistance.

 

Sec. 8.  Minnesota Statutes 2024, section 3.971, subdivision 2, is amended to read:

 

Subd. 2.  Staff; compensation.  (a) The legislative auditor shall establish a Financial Audits Division and, a Program Evaluation Division, and a Special Reviews Division to fulfill the duties prescribed in this section.

 

(b) Each division may be supervised by a deputy auditor, appointed by the legislative auditor, with the approval of the commission, for a term coterminous with the legislative auditor's term.  The deputy auditors may be removed before the expiration of their terms only for cause.  The legislative auditor and deputy auditors may each appoint an administrative support specialist to serve at pleasure.  The salaries and benefits of the legislative auditor, deputy auditors, and administrative support specialists shall be determined by the compensation plan approved by the Legislative Coordinating Commission.  The deputy auditors may perform and exercise the powers, duties and responsibilities imposed by law on the legislative auditor when authorized by the legislative auditor.


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(c) The legislative auditor, deputy auditors, and administrative support specialists shall serve in the unclassified civil service, but all other employees of the legislative auditor shall serve in the classified civil service.  Compensation for employees of the legislative auditor in the classified service shall be governed by a plan prepared by the legislative auditor and approved by the Legislative Coordinating Commission and the legislature under section 3.855, subdivision 3.

 

(d) While in office, a person appointed deputy for the Financial Audit Division must hold an active license as a certified public accountant.

 

(e) Notwithstanding section 43A.32, subdivisions 2 and 3, or any other law to the contrary, an employee of the legislative auditor is prohibited from being a candidate for a partisan elected public office.

 

Sec. 9.  Minnesota Statutes 2024, section 3.971, subdivision 8a, is amended to read:

 

Subd. 8a.  Special reviews.  The legislative auditor may conduct a special review to:  (1) fulfill a legal requirement; (2) investigate allegations that an individual or organization subject to audit by the legislative auditor may not have complied with legal requirements, including but not limited to legal requirements related to the use of public money, other public resources, or government data classified as not public; (3) respond to a legislative request for a review of an organization or program subject to audit by the legislative auditor; or (4) investigate allegations that an individual may not have complied with section 43A.38 or 43A.39.  After the legislative auditor conducts a special review, the legislative auditor may periodically conduct a follow-up special review to assess what changes have occurred.

 

Sec. 10.  Minnesota Statutes 2024, section 3.971, subdivision 9, is amended to read:

 

Subd. 9.  Obligation to notify the legislative auditor.  The chief executive, financial, or information officers (a) An obligated officer of an organization subject to audit under this section must promptly notify the legislative auditor when the officer obtains information indicating that public money or other public resources may have been used for an unlawful purpose, or when the officer obtains information indicating that government data classified by chapter 13 as not public may have been accessed by or provided to a person without lawful authorization.  As necessary, the legislative auditor shall coordinate an investigation of the allegation with appropriate law enforcement officials.

 

(b) For purposes of this subdivision, "obligated officer" means the organization's:

 

(1) chief executive officer;

 

(2) deputy and assistant chief executive officers;

 

(3) chief administrative, chief financial, chief information, and chief investigative officers;

 

(4) heads of divisions, bureaus, departments, institutes, or other organizational units; and

 

(5) board chair, where applicable.

 

Sec. 11.  Minnesota Statutes 2024, section 3.971, is amended by adding a subdivision to read:

 

Subd. 10.  Implementation of audit recommendations.  (a) By February 1 each year, as resources permit, the legislative auditor must submit a report to the chairs and ranking minority members of the legislative committees with fiscal jurisdiction over an entity subject to audit under this section.  The report must detail whether the entity has implemented any recommendations identified by the legislative auditor during the prior five years in a financial audit, program evaluation, or special review.


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(b) By July 1 each year, as resources permit, the legislative auditor must submit a report to designated legislators listing the standing committees in the senate and the house of representatives to which the legislative auditor did or did not present their reports under paragraph (a) in a public hearing.  For purposes of this paragraph, "designated legislators" means the chairs and ranking minority members of the senate Committees on State and Local Government, Rules and Administration, and Finance, and the house of representatives Committees on State Government Finance and Policy, Rules and Legislative Administration, and Ways and Means.

 

Sec. 12.  Minnesota Statutes 2024, section 11A.07, subdivision 4, is amended to read:

 

Subd. 4.  Duties and powers.  The 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;

 

(2) prepare and submit biennial and annual budgets to the board and with the approval of the board submit the budgets to the Department of Management and Budget;

 

(3) employ professional and clerical staff as necessary;

 

(4) report to the state board on all operations under the 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, by December 31 of each year, a report summarizing the activities of the state board, the council, and the 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) receive and expend legislative appropriations; and

 

(12) undertake any other activities necessary to implement the duties and powers set forth in this subdivision consistent with chapter 356A.

 

Sec. 13.  Minnesota Statutes 2024, section 11A.07, subdivision 4b, is amended to read:

 

Subd. 4b.  Annual report.  The report required under subdivision 4, clause (8), must include an executive summary, must be prepared and filed after the completion of the applicable fiscal year audit but no later than March 31 of each year, and must be prepared so as to provide the legislature and the people of the state with:

 

(1) a clear, comprehensive summary of the portfolio composition, the transactions, the total annual rate of return, and the yield to the state treasury and to each of the funds with assets invested by the state board; and

 

(2) the recipients of business placed or commissions allocated among the various commercial banks, investment bankers, money managers, and brokerage organizations and the amount of these commissions or other fees.


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Sec. 14.  Minnesota Statutes 2024, section 11A.24, is amended by adding a subdivision to read:

 

Subd. 8.  Contracts.  Section 16C.05, subdivision 8, paragraph (a), clauses (2) and (5), do not apply to contracts entered into by the State Board of Investment related to an investment under this section.

 

Sec. 15.  Minnesota Statutes 2024, section 13.04, subdivision 4, is amended to read:

 

Subd. 4.  Procedure when data is not accurate or complete.  (a) An individual subject of the data may contest the accuracy or completeness of public or private data about themselves.

 

(b) To exercise this right, an individual shall notify in writing the responsible authority of the government entity that maintains the data, describing the nature of the disagreement.

 

(c) Upon receiving notification from the data subject, the responsible authority shall within 30 days either:

 

(1) correct the data found to be inaccurate or incomplete and attempt to notify past recipients of inaccurate or incomplete data, including recipients named by the individual; or

 

(2) notify the individual that the responsible authority has determined the data to be correct.  If the challenged data are determined to be accurate or complete, the responsible authority shall inform the individual of the right to appeal the determination to the commissioner as specified under paragraph (d).  Data in dispute shall be disclosed only if the individual's statement of disagreement is included with the disclosed data.

 

(d) A data subject may appeal the determination of the responsible authority pursuant to the provisions of the Administrative Procedure Act relating to contested cases.  An individual must submit an appeal to the commissioner within 60 days of the responsible authority's notice of the right to appeal or as otherwise provided by the rules of the commissioner.  Upon receipt of an appeal by an individual, the commissioner shall, before issuing the order and notice of a contested case hearing required by chapter 14, try to resolve the dispute through education, conference, conciliation, or persuasion.  If the parties consent, the commissioner may refer the matter to mediation.  Following these efforts, the commissioner shall dismiss the appeal or issue the order and notice of hearing.

 

(e) The commissioner may dismiss an appeal without first attempting to resolve the dispute or before issuing an order and notice of a contested case hearing if:

 

(1) the appeal to the commissioner is not timely;

 

(2) the appeal concerns data previously presented as evidence in a court proceeding in which the data subject was a party; or

 

(3) the individual making the appeal is not the subject of the data challenged as inaccurate or incomplete.

 

(f) A responsible authority may submit private data to the commissioner to respond to a data subject's appeal of the determination that data are accurate and complete.  Section 13.03, subdivision 4, applies to data submitted by the responsible authority.  Government data submitted to the commissioner by a government entity, copies of government data submitted by a data subject, or government data described by the data subject in their appeal have the same classification as the data when maintained by the government entity.  The commissioner may disclose private data contained within the appeal record to the Office of Administrative Hearings.

 

(f) (g) Data on individuals that have been successfully challenged by an individual must be completed, corrected, or destroyed by a government entity without regard to the requirements of section 138.17.


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(g)
(h) After completing, correcting, or destroying successfully challenged data, a government entity may retain a copy of the commissioner of administration's order issued under chapter 14 or, if no order were issued, a summary of the dispute between the parties that does not contain any particulars of the successfully challenged data.

 

(i) Data maintained by the commissioner that a responsible authority has completed, corrected, or destroyed as the result of the informal resolution process described in paragraph (d) or by order of the commissioner are private data on individuals.

 

Sec. 16.  [13.357] DATA SHARING.

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the following terms have the meanings given.

 

(b) "Public program" means any program funded by a state or federal agency that involves transfer or disbursement of public funds or other public resources.  For purposes of the data sharing authority granted to the commissioner of revenue under subdivision 2, public program does not include refunds, payments, or other disbursements made by the commissioner of revenue in the administration of state revenue laws.

 

(c) "Fraud" means an intentional or deliberate act to deprive another of property or money or to acquire property or money by deception or other unfair means.  Fraud includes intentionally submitting false information to a federal, state, or local government entity for the purpose of obtaining a greater compensation or benefit than that to which the person is legally entitled.  Fraud includes acts that constitute a crime against any program, or acts that attempt or conspire to commit those crimes, including but not limited to theft in violation of section 609.52, perjury in violation of section 609.48, and aggravated forgery and forgery in violation of sections 609.625 and 609.63, and substantially similar federal laws.

 

Subd. 2.  Authority to share data regarding fraud in public programs.  Except where a provision of law specifically prohibits data sharing, any government entity may disclose data relating to suspected or confirmed fraud in public programs to any other government entity, federal agency, or law enforcement agency if the access would promote the protection of public resources, promote the integrity of public programs, or aid the law enforcement process. 

 

Sec. 17.  Minnesota Statutes 2024, section 14.48, subdivision 1, is amended to read:

 

Subdivision 1.  Creation.  A state Office Court of Administrative Hearings is created.

 

Sec. 18.  Minnesota Statutes 2024, section 14.48, subdivision 2, is amended to read:

 

Subd. 2.  Chief administrative law judge.  (a) The office court shall be under the direction of a chief administrative law judge who shall be learned in the law and appointed by the governor, with the advice and consent of the senate, for a term ending on June 30 of the sixth calendar year after appointment.  Senate confirmation of the chief administrative law judge shall be as provided by section 15.066.

 

(b) The chief administrative law judge may hear cases and, in accordance with chapter 43A, shall appoint a deputy chief judge and additional administrative law judges and compensation judges to serve in the office court as necessary to fulfill the duties of the Office Court of Administrative Hearings.

 

(c) The chief administrative law judge may delegate to a subordinate employee the exercise of a specified statutory power or duty as deemed advisable, subject to the control of the chief administrative law judge.  Every delegation must be by written order filed with the secretary of state.  The chief administrative law judge is subject to the provisions of the Minnesota Constitution, article VI, section 6, the jurisdiction of the Board on Judicial Standards, and the provisions of the Code of Judicial Conduct.


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(d) If a vacancy in the position of chief administrative law judge occurs, an acting or temporary chief administrative law judge must be named as follows:

 

(1) at the end of the term of a chief administrative law judge, the incumbent chief administrative law judge may, at the discretion of the appointing authority, serve as acting chief administrative law judge until a successor is appointed; and

 

(2) if at the end of a term of a chief administrative law judge the incumbent chief administrative law judge is not designated as acting chief administrative law judge, or if a vacancy occurs in the position of chief administrative law judge, the deputy chief judge shall immediately become temporary chief administrative law judge without further official action.

 

(e) The appointing authority of the chief administrative law judge may appoint a person other than the deputy chief judge to serve as temporary chief administrative law judge and may replace any other acting or temporary chief administrative law judge designated pursuant to paragraph (d), clause (1) or (2).

 

Sec. 19.  Minnesota Statutes 2024, section 14.62, subdivision 1, is amended to read:

 

Subdivision 1.  Writing required.  Every decision and order rendered by an agency in a contested case shall be in writing, shall be based on the record and shall include the agency's findings of fact and conclusions on all material issues.  A decision or order that rejects or modifies a finding of fact, conclusion, or recommendation contained in the report of the administrative law judge required under sections 14.48 to 14.56, or requests remand under subdivision 2b, must include the reasons for each rejection or, modification, or request for remand.  A copy of the decision and order shall be served upon each party or the party's representative and the administrative law judge by first class mail.

 

Sec. 20.  Minnesota Statutes 2024, section 14.62, subdivision 2a, is amended to read:

 

Subd. 2a.  Administrative law judge decision final; exception.  Unless otherwise provided by law, the report or order of the administrative law judge constitutes the final decision in the case unless the agency modifies or rejects it under, rejects, or requests remand pursuant to subdivision 1 within 90 days after the record of the proceeding closes under section 14.61.  When the agency fails to act within 90 days on a licensing case, the agency must return the record of the proceeding to the administrative law judge for consideration of disciplinary action.  In all contested cases where the report or order of the administrative law judge constitutes the final decision in the case, the administrative law judge shall issue findings of fact, conclusions, and an order within 90 days after the hearing record closes under section 14.61.  Upon a showing of good cause by a party or the agency, the chief administrative law judge may order a reasonable extension of either of the two 90-day deadlines specified in this subdivision.  The 90-day deadline will be tolled while the chief administrative law judge considers a request for reasonable extension so long as the request was filed and served within the applicable 90-day period.

 

Sec. 21.  Minnesota Statutes 2024, section 14.62, is amended by adding a subdivision to read:

 

Subd. 2b.  Agency request for remand.  (a) An agency may request remand of a finding of fact, conclusion of law, or recommendation within 45 days following the close of the hearing record under section 14.61.  Upon a showing of good cause by the agency, the chief administrative law judge may consider a request for remand received after the deadline specified in this provision.

 

(b) The requesting agency must state with specificity the reasons the agency is requesting remand.  If the agency requests remand for additional fact finding, the agency must state with specificity that it is requesting remand for further fact finding, identify the issues for which further fact finding is needed, and explain why further fact finding is necessary to facilitate a fair and just final decision.


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(c) The chief administrative law judge, or their designee, must accept a request for remand within ten business days if:

 

(1) the agency rejects a recommendation to grant summary disposition;

 

(2) a party who had procedurally defaulted during the administrative proceedings seeks to participate; or

 

(3) following remand from the Minnesota Court of Appeals or Minnesota Supreme Court, or identification of a mathematical or clerical error, the agency identifies a need for additional proceedings before the Court of Administrative Hearings.

 

(d) The chief administrative law judge, or their designee, may accept a request for remand within ten business days for other reasons as justice requires and consistent with section 14.001.

 

(e) When a request for remand is accepted by the chief administrative law judge or their designee, the chief administrative law judge or their designee must assign an administrative law judge to conduct further proceedings under this chapter on the issues accepted for remand.

 

Sec. 22.  [15.013] PROGRAM PAYMENTS WITHHELD; FRAUD.

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the following terms have the meanings given.

 

(b) "Entity" means any corporation, partnership, proprietorship, firm, enterprise, franchise, association, organization, or any other legal entity that engages in either nonprofit or profit-making activities.

 

(c) "Evidence" means credible evidence obtained from an internal agency investigation, audits, court records, law enforcement investigations, or investigations by other state or federal agencies.

 

(d) "Fraud" means an intentional or deliberate act to deprive another of property or money or to acquire property or money by deception.  Fraud includes knowingly submitting false information to a federal, state, or local government entity for the purpose of obtaining a greater compensation or benefit than the person is legally entitled.  Fraud also includes acts that constitute a crime against any program, or the attempts or plans to commit those crimes, including but not limited to theft in violation of section 609.52, perjury in violation of section 609.48, and aggravated forgery and forgery in violation of sections 609.625 and 609.63, and substantially similar federal laws.

 

(e) "Individual" means a natural person.

 

(f) "Program" means any program funded by a state or federal agency that involves the transfer or disbursement of public funds or other public resources.

 

(g) "Program participant" means an entity, or an individual on behalf of an entity, that receives, disburses, or has custody of funds or other resources transferred or disbursed under a program.

 

(h) "Agency" has the meaning given in section 16B.01, subdivision 2, and includes the Minnesota State Colleges and Universities.

 

Subd. 2.  Administrative withholding of payments.  (a) The head of an agency may withhold payments to a program participant in a program administered by that agency for a period not to exceed 60 days if the agency head determines that a preponderance of the evidence shows that the program participant has committed fraud to obtain payments under the program.


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(b) Notwithstanding subdivision 3, the agency head must notify the program participant of the decision to withhold payments at least 24 hours before withholding a payment.  The notice must:

 

(1) state that payments will be withheld in accordance with this section;

 

(2) state the date the administrative withholding of payments is effective;

 

(3) state the reasons for withholding payments, excluding specific information that may jeopardize an active investigation;

 

(4) state the date the administrative withholding period terminates;

 

(5) inform the program participant of the right to submit written evidence for consideration by the agency head; and

 

(6) inform the program participant of their rights under chapter 14 to appeal the decision to withhold payment.

 

(c) Following notice and to the extent practicable, the agency must ensure that any person whose public funds are interrupted and who is not implicated in the suspected fraud receives notice of their rights related to continued receipt of the public funds, services, or programs for which they are eligible.  The agency head must provide a point of contact for the impacted persons.

 

(d) A program participant may appeal an agency head's decision under this subdivision by initiating a contested case proceeding under chapter 14 or by petitioning the court for relief, including injunctive relief. 

 

(e) This subdivision does not apply if an agency is precluded from withholding payments to a program participant by federal law or obligations under a contract.

 

Subd. 3.  Data classification and access.  (a) During the administrative payment withholding period under subdivision 2, data relating to evidence of fraud are classified as:  (1) confidential data on individuals pursuant to section 13.02, subdivision 3; or (2) protected nonpublic data pursuant to section 13.02, subdivision 13, in the case of data not on individuals. 

 

(b) All data relating to evidence of fraud become public at the termination of the withholding period unless classified as not public data under state or federal law.  The identity of a complainant is private data on individuals, as defined in section 13.02, subdivision 12.

 

(c) An agency may disclose data classified as confidential or protected nonpublic under this section to a federal, state, or local government agency or a law enforcement agency if the agency determines that access will help prevent fraud against public programs or aid the law enforcement process.

 

Subd. 4.  Court order.  The head of an agency may petition the court for a temporary order pursuant to Rule 65 of the Minnesota Rules of Civil Procedure to withhold payments to a program participant in a program administered by that agency if the agency head determines that a preponderance of the evidence shows that the program participant has committed fraud to obtain payments under the program.

 

Subd. 5.  Report.  (a) An agency that has withheld a payment under this section must report the following to the commissioner of management and budget by March 1, 2026:

 

(1) the number of program participants from whom payments have been withheld;

 

(2) a description of the reason the payments were withheld from the program participant;


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(3) the dollar amount of payments withheld;

 

(4) the identification of the program;

 

(5) whether the payments withheld were state or federal funds; and

 

(6) whether the withholding of payment was challenged by a program participant and the outcome of the challenge. 

 

(b) The commissioner of management and budget must compile the reports from the agencies under paragraph (a) and submit the compiled report to the chairs and ranking minority members of the committees in the house of representative and the senate with jurisdiction over state government, judiciary, health and human services, and education by March 15, 2026. 

 

Subd. 6.  Sunset.  This section expires July 1, 2027.

 

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

 

Sec. 23.  [15.0573] REPORTING ALLEGED MISUSE OF PUBLIC RESOURCES OR DATA.

 

The commissioner or chief executive officer of each state department, board, commission, office, or other agency must ensure that employee and nonemployee concerns about the misuse of public money, other public resources, or government data are promptly directed to one or more of the obligated officers identified in section 3.971, subdivision 9, or the Office of the Legislative Auditor.  The commissioner of management and budget must develop a policy to operationalize and standardize the process under this section across state agencies.

 

Sec. 24.  [15.0574] ORGANIZATIONAL CHARTS POSTED.

 

Each state agency must clearly post on the agency's website a current organizational chart that includes the name and contact information for the agency head, all deputy and assistant agency heads, and the head of each division or bureau within the agency.

 

Sec. 25.  [15.442] LOCAL NEWS ORGANIZATION ADVERTISING BY STATE AGENCIES.

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the following terms have the meanings given.

 

(b) "Advertising" means paid communication transmitted via newspaper, magazine, radio, television, social media, Internet, or other electronic means to make any person aware of information relevant to an agency or a program or public awareness campaign operated by an agency.

 

(c) "Agency" means any board, commission, authority, department, entity, or organization of the executive branch of state government.  Agency does not include the Minnesota State Colleges and Universities or the Minnesota Zoo.

 

(d) "Local news organization" means a print, digital, or hybrid publication, or a broadcast television or radio station, that:

 

(1) primarily serves the needs of the state of Minnesota or a regional, local, or ethnic community within Minnesota;


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(2) primarily has content derived from primary sources relating to news, information, entertainment, and current events;

 

(3) employs at least one journalist who resides in Minnesota and who regularly gathers, collects, photographs, records, writes, or reports news or information that concerns local events or other matters of local public interest;

 

(4) has a known Minnesota-based office of publication or broadcast station where business is transacted during usual business hours with a local telephone number and must list contact information in each updated publication or on their website; and

 

(5) has not received more than 10 percent of its gross receipts for the previous year from political action committees or other entities described in section 527 of the Internal Revenue Code, or from an organization that maintains section 501(c)(4), 501(c)(5), or 501(c)(6) status under the Internal Revenue Code.

 

Subd. 2.  Transparency.  By February 1, 2026, and each year thereafter, all agencies must publish the following information on their website for the previous fiscal year:

 

(1) the total advertising spending by the agency; and

 

(2) the total percentage of advertising spending in local news organizations, including a breakdown of the total percentage of advertising spending in local newspapers, radio, and television.

 

Subd. 3.  Expiration.  This section expires February 2, 2031.

 

EFFECTIVE DATE.  This section is effective August 1, 2025.

 

Sec. 26.  [15.761] SAVI PROGRAM.

 

Subdivision 1.  Program established.  The state agency value initiative (SAVI) program is established to encourage state agencies to identify cost-effective and efficiency measures in agency programs and operations that result in cost savings for the state.  All state agencies, including Minnesota State Colleges and Universities, may participate in this program.

 

Subd. 2.  Retained savings.  (a) In order to encourage innovation and creative cost savings by state employees, upon approval of the commissioner of management and budget, 50 percent of any appropriations for agency operations that remain unspent at the end of a biennium because of unanticipated innovation, efficiencies, or creative cost-savings may be carried forward and retained by the agency to fund specific agency proposals or projects.  Agencies choosing to spend retained savings funds must ensure that project expenditures do not create future obligations beyond the amounts available from the retained savings.  The retained savings must be used only to fund projects that directly support the agency's mission.  This section does not restrict authority granted by other law to carry forward money for a different period or for different purposes.

 

(b) This section supersedes any contrary provision of section 16A.28.

 

Subd. 3.  Special peer review panel; review process.  (a) Each participating agency must organize a peer review panel that will determine which proposal or project receives funding from the SAVI program.  The peer review panel must be comprised of department employees who are credited with cost-savings initiatives and department managers.  The ratio between managers and department employees must be balanced.


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(b) An agency may spend money for a project recommended for funding by the peer review panel after:

 

(1) the agency has posted notice of spending for the proposed project on the agency website for at least 30 days; and

 

(2) the commissioner of management and budget has approved spending money from the SAVI account for the project.

 

(c) Before approving a project, the commissioner of management and budget must submit the request to the Legislative Advisory Commission for its review and recommendation.  Upon receiving a request from the commissioner, the Legislative Advisory Commission shall post notice of the request on a legislative website for at least 30 days.  Failure of the commission to make a recommendation within this 30-day period is considered a negative recommendation.  A recommendation of the commission must be made at a meeting of the commission unless a written recommendation is signed by all members entitled to vote on the item.

 

Subd. 4.  SAVI-dedicated account.  Each agency that participates in the SAVI program shall have a SAVI‑dedicated account in the special revenue fund, or other appropriate fund as determined by the commissioner of management and budget, into which the agency's savings are deposited.  The agency will manage and review projects that are funded from this account.  Money in the account is appropriated to the participating agency for purposes authorized by this section.

 

Subd. 5.  Expiration.  This section expires June 30, 2030.

 

EFFECTIVE DATE.  This section is effective June 30, 2025, and first applies to funds to be carried forward from the biennium ending June 30, 2025, to the biennium beginning July 1, 2025.

 

Sec. 27.  Minnesota Statutes 2024, section 15A.082, subdivision 3, is amended to read:

 

Subd. 3.  Submission of recommendations and determination.  (a) By April September 1 in each odd‑numbered even-numbered year, the Compensation Council shall submit to the speaker of the house and the president of the senate salary recommendations for justices of the supreme court, and judges of the court of appeals and district court.  The recommended salaries take effect on July 1 of that the next year and July 1 of the subsequent even-numbered year and at whatever interval the council recommends thereafter, unless the legislature by law provides otherwise.  The salary recommendations take effect if an appropriation of money to pay the recommended salaries is enacted after the recommendations are submitted and before their effective date.  Recommendations may be expressly modified or rejected.

 

(b) By April 1 in each odd-numbered year, the Compensation Council must prescribe salaries for constitutional officers, and for the agency and metropolitan agency heads identified in section 15A.0815.  The prescribed salary for each office must take effect July 1 of that year and July 1 of the subsequent even-numbered year and at whatever interval the council determines thereafter, unless the legislature by law provides otherwise.  An appropriation by the legislature to fund the relevant office, branch, or agency of an amount sufficient to pay the salaries prescribed by the council constitutes a prescription by law as provided in the Minnesota Constitution, article V, sections 4 and 5.

 

(c) By April 1 in each odd-numbered year, the Compensation Council must prescribe daily compensation for voting members of the Direct Care and Treatment executive board.  The recommended daily compensation takes effect on July 1 of that year and July 1 of the subsequent even-numbered year and at whatever interval the council recommends thereafter, unless the legislature by law provides otherwise.


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Sec. 28.  Minnesota Statutes 2024, section 15A.082, subdivision 7, is amended to read:

 

Subd. 7.  No ex parte communications.  Members may not have any communication with a constitutional officer, a head of a state agency, a member of the judiciary, or a member of the Direct Care and Treatment executive board during the period after the first meeting is convened under this section and the date the prescribed and recommended salaries and daily compensation are submitted under subdivision 3.  This subdivision does not apply to testimony provided to the council in the course of an official council meeting or to other communications when a majority of the members are present.  This subdivision does not preclude a member who is an attorney from communicating with an agency head, judge, or justice as necessary to represent a client.

 

Sec. 29.  Minnesota Statutes 2024, section 16A.057, subdivision 5, is amended to read:

 

Subd. 5.  Monitoring Office of the Legislative Auditor audits.  (a) The commissioner must review audit reports from the Office of the Legislative Auditor and take appropriate steps to address internal control problems found in executive agencies.

 

(b) The commissioner must submit a report to the legislative auditor no later than September 1 of each year detailing the implementation status of all recommendations identified in an auditor's financial audit, program evaluation, or special review during the prior five years.  The report must include a specific itemization of recommendations that have not been implemented during that period, along with the basis for that decision.

 

Sec. 30.  Minnesota Statutes 2024, section 16A.103, subdivision 1a, is amended to read:

 

Subd. 1a.  Forecast parameters.  The forecast must assume the continuation of current laws and reasonable estimates of projected growth in the national and state economies and affected populations.  Revenue must be estimated for all sources provided for in current law.  Expenditures must be estimated for all obligations imposed by law and those projected to occur as a result of inflation and variables outside the control of the legislature.  Expenditure estimates related to the amount of state bonding must not include any assumptions of future authorizations of state general obligation bonds.

 

Sec. 31.  Minnesota Statutes 2024, section 16A.152, subdivision 8, is amended to read:

 

Subd. 8.  Report on budget reserve percentage.  (a) The commissioner of management and budget shall develop and annually review a methodology for evaluating the adequacy of the budget reserve based on the volatility of Minnesota's general fund tax structure.  The review must take into consideration relevant statistical and economic literature.  After completing the review, the commissioner may revise the methodology if necessary.  The commissioner must use the methodology to annually estimate the percentage of the current biennium's general fund nondedicated revenues recommended as a budget reserve.

 

(b) By September October 30 of each year, the commissioner shall report the percentage of the current biennium's general fund nondedicated revenue that is recommended as a budget reserve to the chairs and ranking minority members of the senate Committee on Finance, the house of representatives Committee on Ways and Means, and the senate and house of representatives Committees on Taxes.  The report must also specify:

 

(1) whether the commissioner revised the recommendation as a result of significant changes in the mix of general fund taxes or the base of one or more general fund taxes;

 

(2) whether the commissioner revised the recommendation as a result of a revision to the methodology; and

 

(3) any additional appropriate information.


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Sec. 32.  Minnesota Statutes 2024, section 16A.28, subdivision 3, is amended to read:

 

Subd. 3.  Lapse.  Any portion of any appropriation not carried forward and remaining unexpended and unencumbered at the close of a fiscal year lapses to the fund from which it was originally appropriated.  Except as provided in section 15.761, any appropriation amounts not carried forward and remaining unexpended and unencumbered at the close of a biennium lapse to the fund from which the appropriation was made.

 

EFFECTIVE DATE.  This section is effective June 30, 2025.

 

Sec. 33.  Minnesota Statutes 2024, section 16B.055, subdivision 1, is amended to read:

 

Subdivision 1.  Federal Assistive Technology Act.  (a) The Department of Administration is designated as the lead agency to carry out all the responsibilities under the 21st Century Assistive Technology Act of 1998, as provided by Public Law 108-364, as amended 117-263.  The Minnesota Assistive Technology Advisory Council is established to fulfill the responsibilities required by the 21st Century Assistive Technology Act, as provided by Public Law 108-364, as amended 117-263.  Because the existence of this council is required by federal law, this council does not expire.

 

(b) Except as provided in paragraph (c), the governor shall appoint the membership of the council as required by the 21st Century Assistive Technology Act of 1998, as provided by Public Law 108-364, as amended 117-263.  After the governor has completed the appointments required by this subdivision, the commissioner of administration, or the commissioner's designee, shall convene the first meeting of the council following the appointments.  Members shall serve two-year terms commencing July 1 of each odd-numbered year, and receive the compensation specified by the 21st Century Assistive Technology Act of 1998, as provided by Public Law 108-364, as amended 117-263.  The members of the council shall select their chair at the first meeting following their appointment.

 

(c) After consulting with the appropriate commissioner, the commissioner of administration shall appoint a representative from:

 

(1) State Services for the Blind who has assistive technology expertise;

 

(2) vocational rehabilitation services who has assistive technology expertise;

 

(3) the Workforce Development Board; and

 

(4) the Department of Education who has assistive technology expertise.; and

 

(5) the Board on Aging.

 

Sec. 34.  Minnesota Statutes 2024, section 16B.335, subdivision 2, is amended to read:

 

Subd. 2.  Other projects.  All other capital projects for which a specific appropriation is made, including projects that are exempt under subdivision 1, paragraph (b), must not proceed until the recipient undertaking the project has notified the chairs and ranking minority members of the senate Capital Investment and Finance Committees and the house of representatives Capital Investment and Ways and Means Committees that the work is ready to begin.  Notice is not required for:

 

(1) capital projects needed to comply with the Americans with Disabilities Act;

 

(2) asset preservation projects to which section 16B.307 applies;


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(3) projects funded by an agency's operating budget; or

 

(4) projects funded by a capital asset preservation and replacement account under section 16A.632, a higher education asset preservation and replacement account under section 135A.046, or a natural resources asset preservation and replacement account under section 84.946.

 

Sec. 35.  Minnesota Statutes 2024, section 16B.48, subdivision 4, is amended to read:

 

Subd. 4.  Reimbursements.  (a) Except as specifically provided otherwise by law, each agency shall reimburse the general services revolving funds for the cost of all services, supplies, materials, labor, and depreciation of equipment, including reasonable overhead costs, which the commissioner is authorized and directed to furnish an agency.  The cost of all publications or other materials produced by the commissioner and financed from the general services revolving fund must include reasonable overhead costs.

 

(b) The commissioner of administration shall report the rates to be charged for the general services revolving funds no later than July 1 September 15 each year to the chair of the committee or division in the senate and house of representatives with primary jurisdiction over the budget of the Department of Administration.

 

(c) The commissioner of management and budget shall make appropriate transfers to the revolving funds described in this section when requested by the commissioner of administration.  The commissioner of administration may make allotments, encumbrances, and, with the approval of the commissioner of management and budget, disbursements in anticipation of such transfers.  In addition, the commissioner of administration, with the approval of the commissioner of management and budget, may require an agency to make advance payments to the revolving funds in this section sufficient to cover the agency's estimated obligation for a period of at least 60 days.

 

(d) All reimbursements and other money received by the commissioner of administration under this section must be deposited in the appropriate revolving fund.  Any earnings remaining in the fund established to account for the documents service prescribed by section 16B.51 at the end of each fiscal year not otherwise needed for present or future operations, as determined by the commissioners of administration and management and budget, must be transferred to the general fund.

 

Sec. 36.  Minnesota Statutes 2024, section 16B.54, subdivision 2, is amended to read:

 

Subd. 2.  Vehicles.  (a) The commissioner may direct an agency to make a transfer of a passenger motor vehicle or truck currently assigned to it.  The transfer must be made to the commissioner for use in the enterprise fleet.  The commissioner shall reimburse an agency whose motor vehicles have been paid for with funds dedicated by the constitution for a special purpose and which are assigned to the enterprise fleet.  The amount of reimbursement for a motor vehicle is its average wholesale price as determined from the midwest edition of the National Automobile Dealers Association official used car guide.

 

(b) To the extent that funds are available for the purpose, the commissioner may purchase or otherwise acquire additional passenger motor vehicles and trucks necessary for the enterprise fleet.  The title to all motor vehicles assigned to or purchased or acquired for the enterprise fleet is in the name of the Department of Administration.

 

(c) On the request of an agency, the commissioner may transfer to the enterprise fleet any passenger motor vehicle or truck for the purpose of disposing of it.  The department or agency transferring the vehicle or truck must be paid for it from the motor pool revolving account established by this section in an amount equal to two-thirds of the average wholesale price of the vehicle or truck as determined from the midwest edition of the National Automobile Dealers Association official used car guide.


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(d) The commissioner shall provide for the uniform marking of all motor vehicles.  Motor vehicle colors must be selected from the regular color chart provided by the manufacturer each year.  The commissioner may further provide for the use of motor vehicles without marking by:

 

(1) the governor;

 

(2) the lieutenant governor;

 

(3) the Division of Criminal Apprehension, the Division of Alcohol and Gambling Enforcement, and arson investigators of the Division of Fire Marshal in the Department of Public Safety;

 

(4) the Financial Institutions Division and investigative staff of the Department of Commerce;

 

(5) the Division of Disease Prevention and Control of the Department of Health;

 

(6) the State Lottery;

 

(7) criminal investigators of the Department of Revenue;

 

(8) state-owned community service facilities in Direct Care and Treatment;

 

(9) the Office of the Attorney General;

 

(10) the investigative staff of the Gambling Control Board; and

 

(11) the Department of Corrections inmate community work crew program under section 352.91, subdivision 3g.   and

 

(12) the Office of Ombudsman for Long-Term Care.

 

Sec. 37.  Minnesota Statutes 2024, section 16B.97, subdivision 1, is amended to read:

 

Subdivision 1.  Grant agreement Definitions.  (a) For purposes of this section, the following terms have the meanings given:

 

A grant agreement is (1) "grant agreement" means a written instrument or electronic document defining a legal relationship between a granting agency and a grantee when the principal purpose of the relationship is to transfer cash or something of value to the recipient to support a public purpose authorized by law instead of acquiring by professional or technical contract, purchase, lease, or barter property or services for the direct benefit or use of the granting agency.; and

 

(2) "grantee" means a potential or current recipient of a state-issued grant.

 

(b) This section does not apply to general obligation grants as defined by section 16A.695 and, capital project grants to political subdivisions as defined by section 16A.86, or capital project grants otherwise subject to section 16A.642, all of which are subject to the policies and procedures adopted by the commissioner of management and budget and other requirements specified in applicable law.

 

Sec. 38.  Minnesota Statutes 2024, section 16B.98, subdivision 1, is amended to read:

 

Subdivision 1.  Limitation.  (a) As a condition of receiving a grant from an appropriation of state funds, the recipient of the grant must agree to minimize that administrative costs must be necessary and reasonable.  The granting agency is responsible for negotiating appropriate limits to these costs so that the state derives the optimum benefit for grant funding.


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(b) This section does not apply to general obligation grants as defined by section 16A.695 and also capital project grants to political subdivisions as defined by section 16A.86, or capital project grants otherwise subject to section 16A.642.

 

Sec. 39.  Minnesota Statutes 2024, section 16B.98, subdivision 4, is amended to read:

 

Subd. 4.  Reporting of violations.  A state employee who discovers evidence of violation of laws or rules governing grants is encouraged to must promptly report the violation or suspected violation to the employee's supervisor or manager, the commissioner or the commissioner's designee, or the legislative auditor.  If the state employee notifies the employee's supervisor or manager, or the commissioner or the commissioner's designee, then the supervisor, manager, commissioner, or commissioner's designee must notify the legislative auditor.  The legislative auditor shall report to the Legislative Audit Commission if there are multiple complaints about the same agency.  The auditor's report to the Legislative Audit Commission under this section must disclose only the number and type of violations alleged.  An employee making a good faith report under this section has the protections provided for under section 181.932, prohibiting the employer from discriminating against the employee.

 

Sec. 40.  Minnesota Statutes 2024, section 16B.98, subdivision 5, is amended to read:

 

Subd. 5.  Creation and validity of grant agreements.  (a) A grant agreement and amendments are not valid and do not bind unless:

 

(1) the grant agreement and amendments have been executed by the head of the agency or a delegate who is party to the grant;

 

(2) the grant agreement and amendments have been approved by the commissioner;

 

(3) the accounting system shows an encumbrance for the amount of the grant in accordance with policy approved by the commissioner except as provided in subdivision 11; and

 

(4) the grant agreement and amendments include an effective date that references either section 16C.05, subdivision 2, or 16B.98, subdivisions 5 and 7, as determined by the granting agency.

 

(b) The combined grant agreement and amendments must not exceed five years without specific, written approval by the commissioner according to established policy, procedures, and standards, or unless the commissioner determines that a longer duration is in the best interest of the state.

 

(c) A fully executed copy of the grant agreement with all amendments and other required records relating to the grant must be kept on file at the granting agency for a time equal to that required of grantees in subdivision 8.

 

(d) Grant agreements must comply with policies established by the commissioner for minimum grant agreement standards and practices.  As determined by the commissioner, grant agreements must require the grantee to clearly post on the grantee's website the names of, and contact information for, the organization's leadership and the employee or other person who directly manages and oversees the grant for the grantee.

 

(e) The attorney general may periodically review and evaluate a sample of state agency grants to ensure compliance with applicable laws.

 

(f) If funding is canceled, withdrawn, or terminated, an agency may, at its option, suspend its performance until funding is restored.  Nothing in this paragraph releases the state from its obligations during a period of suspension.


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Sec. 41.  Minnesota Statutes 2024, section 16B.98, is amended by adding a subdivision to read:

 

Subd. 6a.  Grants management training.  All state agency staff assigned grant management responsibilities must complete initial grants management training before assuming grants management job duties and must complete continuing grants management training on an annual basis.

 

Sec. 42.  Minnesota Statutes 2024, section 16B.981, subdivision 4, is amended to read:

 

Subd. 4.  Agency authority to not award grant.  (a) If, while performing the required steps in subdivision 2 and pursuant to sections 16B.97, 16B.98, and 16B.991, the agency requires additional information to determine whether there is a substantial risk that the potential grantee cannot or would not perform the required duties of the grant agreement, the agency must give the grantee 30 business 15 calendar days within which the grantee can respond to the agency for the purpose of satisfying the agency's concerns or work with the agency to develop a plan to satisfy the concerns.

 

(b) If, after performing the required steps in subdivision 2 and pursuant to sections 16B.97, 16B.98, and 16B.991, and after reviewing any additional requested information from the grantee, the agency still has concerns that there is a substantial risk that a potential grantee cannot or would not perform the required duties under the grant agreement, the agency must either create a plan to satisfy remaining concerns with the grantee or must not award the grant.

 

(c) If, pursuant to paragraphs (a) and (b), the agency does not award a competitive, single-source, or sole-source grant, the agency must provide notification to the grantee and the commissioner of administration of the determination.  The notification to the grantee must include the agency's reason for postponing or forgoing the grant, including information sufficient to explain and support the agency's decision, and notify the applicant of the process for contesting the agency's decision with the agency and the applicant's options under paragraph (d).  If the applicant contests the agency's decision no later than 15 business days after receiving the notice, the agency must consider any additional written information submitted by the grantee.  The agency has 15 business days to consider this information, during which the agency may reverse or modify the agency's initial decision to postpone or forgo the grant.

 

(d) The final decision by an agency under paragraph (c) may be challenged as a contested case under chapter 14.  The contested case proceeding must be initiated within 30 business calendar days of the date of written notification of a final decision by the agency.

 

(e) If, pursuant to paragraphs (a) and (b), the agency does not award a legislatively named grant, the agency must delay award of the grant until adjournment of the next regular or special legislative session for action from the legislature.  The agency must provide notification to the potential grantee, the commissioner of administration, and the chairs and ranking minority members of the Ways and Means Committee in the house of representatives and the chairs and ranking minority members of the Finance Committee in the senate.  The notification to the grantee must include the agency's reason for postponing or forgoing the grant, including information sufficient to explain and support the agency's decision and notify the applicant of the process for contesting the agency's decision under paragraph (d).  If the applicant contests the agency's decision no later than 15 business days after receiving the notice, the agency must consider any additional written information submitted by the grantee.  The agency has 15 business days to consider this information, during which the agency may reverse or modify the agency's initial decision to postpone or forgo the grant.  The notification to the commissioner of administration and legislators must identify the legislatively named potential grantee and the agency's reason for postponing or forgoing the grant.  After hearing the concerns of the agency, the legislature may reaffirm the award of the grant or reappropriate the funds to a different legislatively named grantee.  Based on the action of the legislature, the agency must award the grant to the legislatively named grantee.  If the legislature does not provide direction to the agency on the disposition of the grant, the funds revert to the original appropriation source.


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Sec. 43.  Minnesota Statutes 2024, section 16B.991, subdivision 2, is amended to read:

 

Subd. 2.  Authority.  A grant agreement must by its terms permit the commissioner to unilaterally terminate the grant agreement prior to completion if the commissioner determines that further performance under the grant agreement would not serve agency purposes or performance under the grant agreement is not in the best interests of the state.

 

Sec. 44.  Minnesota Statutes 2024, section 16C.05, subdivision 2, is amended to read:

 

Subd. 2.  Creation and validity of contracts.  (a) A contract and amendments are not valid and the state is not bound by them and no agency, without the prior written approval of the commissioner granted pursuant to subdivision 2a, may authorize work to begin on them unless:

 

(1) they have first been executed by the head of the agency or a delegate who is a party to the contract;

 

(2) they have been approved by the commissioner; and

 

(3) the accounting system shows an encumbrance for the amount of the contract liability, except as allowed by policy approved by the commissioner and commissioner of management and budget for routine, low-dollar procurements and section 16B.98, subdivision 11.

 

(b) Grants, interagency agreements, purchase orders, work orders, and annual plans need not, in the discretion of the commissioner and attorney general, require the signature of the commissioner and/or the attorney general.  A signature is not required for work orders and amendments to work orders related to Department of Transportation contracts.  Bond purchase agreements by the Minnesota Public Facilities Authority do not require the approval of the commissioner.

 

(c) Amendments to contracts must entail tasks that are substantially similar to those in the original contract or involve tasks that are so closely related to the original contract that it would be impracticable for a different contractor to perform the work.  The commissioner or an agency official to whom the commissioner has delegated contracting authority under section 16C.03, subdivision 16, must determine that an amendment would serve the interest of the state better than a new contract and would cost no more.

 

(d) A record must be kept of all responses to solicitations, including names of bidders and amounts of bids or proposals.  A fully executed copy of every contract, amendments to the contract, and performance evaluations relating to the contract must be kept on file at the contracting agency for a time equal to that specified for contract vendors and other parties in subdivision 5.  These records are open to public inspection, subject to section 13.591 and other applicable law.

 

(e) The attorney general must periodically review and evaluate a sample of state agency contracts to ensure compliance with laws.

 

(f) Before executing a contract or license agreement involving intellectual property developed or acquired by the state, a state agency shall seek review and comment from the attorney general on the terms and conditions of the contract or agreement.

 

(g) If funding is canceled, withdrawn, or terminated, an agency may, at its option, suspend its performance until funding is restored.  Nothing in this paragraph releases the state from its obligations during a period of suspension.


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Sec. 45.  Minnesota Statutes 2024, section 16C.05, is amended by adding a subdivision to read:

 

Subd. 8.  Unenforceable terms.  (a) A contract entered into by the state shall not contain a term that:

 

(1) requires the state to defend, indemnify, or hold harmless another person or entity, unless specifically authorized by statute;

 

(2) binds a party by terms and conditions that may be unilaterally changed by the other party;

 

(3) requires mandatory arbitration;

 

(4) attempts to extend arbitration obligations to disputes unrelated to the original contract;

 

(5) construes the contract in accordance with the laws of a state other than Minnesota;

 

(6) obligates state funds in subsequent fiscal years in the form of automatic renewal as defined in section 325G.56; or

 

(7) is inconsistent with chapter 13, the Minnesota Government Data Practices Act. 

 

(b) If a contract is entered into that contains a term prohibited in paragraph (a), that term shall be void and the contract is enforceable as if it did not contain that term. 

 

(c) The commissioner shall post a copy of this section on the department's website.

 

Sec. 46.  Minnesota Statutes 2024, section 16C.137, subdivision 2, is amended to read:

 

Subd. 2.  Report Evaluation.  (a) The commissioner of administration, in collaboration with the commissioners of the Pollution Control Agency, the Departments of Agriculture, Commerce, Natural Resources, and Transportation, and other state departments, must evaluate the goals and directives established in this section and report include their findings to the governor and the appropriate committees of the legislature by February 1 of each odd-numbered year in the public dashboard under section 16B.372.  In the report public dashboard, the commissioner must make recommendations for new or adjusted goals, directives, or legislative initiatives, in light of the progress the state has made implementing this section and the availability of new or improved technologies.

 

(b) The Department of Administration shall implement a fleet reporting and information management system.  Each department will use this management system to demonstrate its progress in complying with this section.

 

Sec. 47.  Minnesota Statutes 2024, section 16C.16, subdivision 2, is amended to read:

 

Subd. 2.  Small business.  The commissioner shall adopt the size standards for "small business" found in Code of Federal Regulations, title 49, section 26.65, a small business for purposes of sections 16C.16 to 16C.21, 137.31, 137.35, 161.321, and 473.142, provided that the business has its principal place of business in Minnesota.  The commissioner may use the definition for "small business" in the Code of Federal Regulations, title 49, section 26.65, or may adopt another standard.

 

Sec. 48.  Minnesota Statutes 2024, section 16C.16, subdivision 6, is amended to read:

 

Subd. 6.  Purchasing methods.  (a) The commissioner may award up to a 12 percent preference for specified goods or services to small targeted group businesses.


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(b) The commissioner may award a contract for goods, services, or construction directly to a small business or small targeted group business without going through a competitive solicitation process up to a total contract award value, including extension options, of $100,000.

 

(c) The commissioner may designate a purchase of goods or services for award only to small businesses or small targeted group businesses if the commissioner determines that at least three small businesses or small targeted group businesses are likely to respond to a solicitation.

 

(d) The commissioner, as a condition of awarding a construction contract or approving a contract for professional or technical services, may set goals that require the prime contractor to subcontract a portion of the contract to small businesses or small targeted group businesses.  The commissioner must establish a procedure for granting waivers from the subcontracting requirement when qualified small businesses or small targeted group businesses are not reasonably available.  The commissioner may establish financial incentives for prime contractors who exceed the goals for use of small business or small targeted group business subcontractors and financial penalties for prime contractors who fail to meet goals under this paragraph.  The subcontracting requirements of this paragraph do not apply to prime contractors who are small businesses or small targeted group businesses.

 

Sec. 49.  Minnesota Statutes 2024, section 16C.16, subdivision 6a, is amended to read:

 

Subd. 6a.  Veteran-owned small businesses.  (a) Except when mandated by the federal government as a condition of receiving federal funds, the commissioner shall award up to a 12 percent preference, but no less than the percentage awarded to any other group under this section, on state procurement to certified small businesses that are majority-owned and operated by veterans.

 

(b) The commissioner may award a contract for goods, services, or construction directly to a veteran-owned small business without going through a competitive solicitation process up to a total contract award value, including extension options, of $100,000.

 

(c) The commissioner may designate a purchase of goods or services for award only to a veteran-owned small business if the commissioner determines that at least three veteran-owned small businesses are likely to respond to a solicitation.

 

(d) The commissioner, as a condition of awarding a construction contract or approving a contract for professional or technical services, may set goals that require the prime contractor to subcontract a portion of the contract to a veteran-owned small business.  The commissioner must establish a procedure for granting waivers from the subcontracting requirement when qualified veteran-owned small businesses are not reasonably available.  The commissioner may establish financial incentives for prime contractors who exceed the goals for use of veteran‑owned small business subcontractors and financial penalties for prime contractors who fail to meet goals under this paragraph.  The subcontracting requirements of this paragraph do not apply to prime contractors who are veteran-owned small businesses.

 

(e) The purpose of this designation is to facilitate the transition of veterans from military to civilian life, and to help compensate veterans for their sacrifices, including but not limited to their sacrifice of health and time, to the state and nation during their military service, as well as to enhance economic development within Minnesota.

 

(f) Before the commissioner certifies that a small business is majority-owned and operated by a veteran, the commissioner of veterans affairs must verify that the owner of the small business is a veteran, as defined in section 197.447.


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Sec. 50.  Minnesota Statutes 2024, section 16C.16, subdivision 7, is amended to read:

 

Subd. 7.  Economically disadvantaged areas.  (a) The commissioner may award up to a 12 percent preference on state procurement to small businesses located in an economically disadvantaged area.

 

(b) The commissioner may award a contract for goods, services, or construction directly to a small business located in an economically disadvantaged area without going through a competitive solicitation process up to a total contract award value, including extension options, of $100,000.

 

(c) The commissioner may designate a purchase of goods or services for award only to a small business located in an economically disadvantaged area if the commissioner determines that at least three small businesses located in an economically disadvantaged area are likely to respond to a solicitation.

 

(d) The commissioner, as a condition of awarding a construction contract or approving a contract for professional or technical services, may set goals that require the prime contractor to subcontract a portion of the contract to a small business located in an economically disadvantaged area.  The commissioner must establish a procedure for granting waivers from the subcontracting requirement when qualified small businesses located in an economically disadvantaged area are not reasonably available.  The commissioner may establish financial incentives for prime contractors who exceed the goals for use of subcontractors that are small businesses located in an economically disadvantaged area and financial penalties for prime contractors who fail to meet goals under this paragraph.  The subcontracting requirements of this paragraph do not apply to prime contractors who are small businesses located in an economically disadvantaged area.

 

(e) A business is located in an economically disadvantaged area if:

 

(1) the owner resides in or the business is located in a county in which the median income for married couples is less than 70 percent of the state median income for married couples;

 

(2) the owner resides in or the business is located in an area designated a labor surplus area by the United States Department of Labor; or

 

(3) the business is a certified rehabilitation facility or extended employment provider as described in chapter 268A.

 

(f) The commissioner may designate one or more areas designated as targeted neighborhoods under section 469.202 or as border city enterprise zones under section 469.166 as economically disadvantaged areas for purposes of this subdivision if the commissioner determines that this designation would further the purposes of this section.  If the owner of a small business resides or is employed in a designated area, the small business is eligible for any preference provided under this subdivision.

 

(g) The Department of Revenue shall gather data necessary to make the determinations required by paragraph (e), clause (1), and shall annually certify counties that qualify under paragraph (e), clause (1).  An area designated a labor surplus area retains that status for 120 days after certified small businesses in the area are notified of the termination of the designation by the United States Department of Labor.

 

Sec. 51.  Minnesota Statutes 2024, section 16D.09, subdivision 1, is amended to read:

 

Subdivision 1.  Generally.  (a) When a debt is determined by a state agency to be uncollectible, the debt may be written off by the state agency from the state agency's financial accounting records and no longer recognized as an account receivable for financial reporting purposes.  A debt is considered to be uncollectible when (1) all reasonable collection efforts have been exhausted, (2) the cost of further collection action will exceed the amount recoverable, (3) the debt is legally without merit or cannot be substantiated by evidence, (4) the debtor cannot be located, (5) the


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available assets or income, current or anticipated, that may be available for payment of the debt are insufficient, (6) the debt has been discharged in bankruptcy, (7) the applicable statute of limitations for collection of the debt has expired, or (8) it is not in the public interest to pursue collection of the debt.

 

(b) Uncollectible debt must be reported by the state agency as part of its quarterly reports to the commissioner of management and budget.  The basis for the determination of the uncollectibility of the debt must be maintained by the state agency.  If an uncollectible debt equals or exceeds $100,000, the agency shall notify the chairs and ranking minority members of the legislative committees with jurisdiction over the state agency's budget at the time the debt is determined to be uncollectible.  The information reported shall contain the entity associated with the uncollected debt, the amount of the debt, the revenue type, the reason the debt is considered uncollectible, and the duration the debt has been outstanding.  The commissioner of management and budget shall report to the chairs and ranking minority members of the legislative committees with jurisdiction over Minnesota Management and Budget an annual summary of the number and dollar amount of debts determined to be uncollectible during the previous fiscal year by October 31 November 30 of each year.  Determining that the debt is uncollectible does not cancel the legal obligation of the debtor to pay the debt.

 

Sec. 52.  Minnesota Statutes 2024, section 43A.27, subdivision 3, is amended to read:

 

Subd. 3.  Retired employees.  (a) A person may elect to purchase at personal expense individual and dependent hospital, medical, and dental coverages if the person is:

 

(1) a retired employee of the state or an organization listed in subdivision 2 or section 43A.24, subdivision 2, who, at separation of service:

 

(i) is immediately eligible to receive a retirement benefit under chapter 354B or an annuity under a retirement program sponsored by the state or such organization of the state;

 

(ii) immediately meets the age and service requirements in section 352.115, subdivision 1; and

 

(iii) has five years of service or meets the service requirement of the collective bargaining agreement or plan, whichever is greater; or

 

(2) a retired employee of the state who is at least 50 years of age and has at least 15 years of state service.

 

(b) The commissioner shall offer at least one plan which is actuarially equivalent to those made available through collective bargaining agreements or plans established under section 43A.18 to employees in positions equivalent to that from which retired.

 

(c) A spouse of a person eligible under paragraph (a) may purchase the coverage listed in this subdivision if the spouse was a dependent under the retired employee's coverage at the time of the retiree's death.

 

(d) A spouse of a person eligible under paragraph (a) who is a dependent under the retired employee's coverage may purchase the coverage listed in this subdivision if the retired employee loses eligibility for coverage because the retired employee enrolls in medical assistance under chapter 256B and has a disability that meets the categorical eligibility requirements of the Supplemental Security Income program.

 

(d) (e) Coverages must be coordinated with relevant health insurance benefits provided through the federally sponsored Medicare program.  Until the retired employee reaches age 65, the retired employee and dependents must be pooled in the same group as active employees for purposes of establishing premiums and coverage for hospital, medical, and dental insurance.  Coverage for retired employees and their dependents may not discriminate on the basis of evidence of insurability or preexisting conditions unless identical conditions are imposed on active


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employees in the group that the employee left.  Appointing authorities shall provide notice to employees no later than the effective date of their retirement of the right to exercise the option provided in this subdivision.  The retired employee must notify the commissioner or designee of the commissioner within 30 days after the effective date of the retirement of intent to exercise this option.

 

Sec. 53.  Minnesota Statutes 2024, section 151.741, subdivision 5, is amended to read:

 

Subd. 5.  Insulin repayment account; annual transfer from health care access fund.  (a) The insulin repayment account is established in the special revenue fund in the state treasury.  Money in the account is appropriated each fiscal year to the commissioner of administration to reimburse manufacturers for insulin dispensed under the insulin safety net program in section 151.74, in accordance with section 151.74, subdivisions 3, paragraph (h), and 6, paragraph (h), and to cover costs incurred by the commissioner in providing these reimbursement payments.

 

(b) By June 30, 2025, and each June 30 thereafter, the commissioner of administration shall certify to the commissioner of management and budget the total amount expended in the prior fiscal year for:

 

(1) reimbursement to manufacturers for insulin dispensed under the insulin safety net program in section 151.74, in accordance with section 151.74, subdivisions 3, paragraph (h), and 6, paragraph (h); and

 

(2) costs incurred by the commissioner of administration in providing the reimbursement payments described in clause (1).

 

(c) The commissioner of management and budget shall transfer from the health care access fund to the special revenue fund insulin repayment account, beginning July 1, 2025, and each July 1 thereafter, an amount equal to the amount to which the commissioner of administration certified pursuant to paragraph (b).

 

Sec. 54.  Minnesota Statutes 2024, section 181.931, is amended by adding a subdivision to read:

 

Subd. 3a.  Fraud.  "Fraud" means an intentional or deceptive act, or failure to act, to gain an unlawful benefit.

 

Sec. 55.  Minnesota Statutes 2024, section 181.931, is amended by adding a subdivision to read:

 

Subd. 4a.  Misuse.  "Misuse" means the improper use of authority or position for personal gain or to cause harm to others, including the improper use of public resources or programs contrary to their intended purpose.

 

Sec. 56.  Minnesota Statutes 2024, section 181.931, is amended by adding a subdivision to read:

 

Subd. 5a.  Personal gain.  "Personal gain" means a benefit to a person; a person's spouse, parent, child, or other legal dependent; or an in-law of the person or the person's child.

 

Sec. 57.  Minnesota Statutes 2024, section 181.932, subdivision 1, is amended to read:

 

Subdivision 1.  Prohibited action.  An employer shall not discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise retaliate or discriminate against an employee regarding the employee's compensation, terms, conditions, location, or privileges of employment because:

 

(1) the employee, or a person acting on behalf of an employee, in good faith, reports a violation, suspected violation, or planned violation of any federal or state law or common law or rule adopted pursuant to law to an employer or to any governmental body or law enforcement official;


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(2) the employee is requested by a public body or office to participate in an investigation, hearing, inquiry;

 

(3) the employee refuses an employer's order to perform an action that the employee has an objective basis in fact to believe violates any state or federal law or rule or regulation adopted pursuant to law, and the employee informs the employer that the order is being refused for that reason;

 

(4) the employee, in good faith, reports a situation in which the quality of health care services provided by a health care facility, organization, or health care provider violates a standard established by federal or state law or a professionally recognized national clinical or ethical standard and potentially places the public at risk of harm;

 

(5) a public employee communicates the findings of a scientific or technical study that the employee, in good faith, believes to be truthful and accurate, including reports to a governmental body or law enforcement official; or

 

(6) an employee in the classified service of state government a state employee communicates information that the employee, in good faith, believes to be truthful and accurate, and that relates to state services, including the financing of state services programs, services, or financing, including but not limited to fraud or misuse within state programs, services, or financing, to:

 

(i) a legislator or the legislative auditor; or

 

(ii) a constitutional officer.;

 

(iii) an employer;

 

(iv) any governmental body; or

 

(v) a law enforcement official.

 

The disclosures protected pursuant to this section do not authorize the disclosure of data otherwise protected by law.

 

Sec. 58.  Minnesota Statutes 2024, section 240.131, subdivision 7, is amended to read:

 

Subd. 7.  Payments to state.  (a) A regulatory fee is imposed at the rate of one two percent of all amounts wagered by Minnesota residents with an authorized advance deposit wagering provider.  The fee shall be declared on a form prescribed by the commission.  The ADW provider must pay the fee to the commission no more than 15 days after the end of the month in which the wager was made.  Fees collected under this paragraph must be deposited in the state treasury and credited to a racing and card-playing regulation account in the special revenue fund and are appropriated to the commission to offset the costs incurred by the commission as described in section 240.30, subdivision 9, or the costs associated with regulating horse racing and pari-mutuel wagering in Minnesota.

 

(b) A breeders fund fee is imposed in the amount of one-quarter of one percent of all amounts wagered by Minnesota residents with an authorized advance deposit wagering provider.  The fee shall be declared on a form prescribed by the commission.  The ADW provider must pay the fee to the commission no more than 15 days after the end of the month in which the wager was made.  Fees collected under this paragraph must be deposited in the state treasury and credited to a racing and card-playing regulation account in the special revenue fund and are appropriated to the commission to offset the cost of administering the breeders fund, to support racehorse adoption, retirement, and repurposing, and promote horse breeding in Minnesota.


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Sec. 59.  Minnesota Statutes 2024, section 349A.01, is amended by adding a subdivision to read:

 

Subd. 13a.  Responsible lottery official.  "Responsible lottery official" means an officer, director, or owner of an organization, firm, partnership, or corporation that have oversight of lottery ticket sales.

 

Sec. 60.  Minnesota Statutes 2024, section 349A.06, subdivision 2, is amended to read:

 

Subd. 2.  Qualifications.  (a) The director may not contract with a retailer sole proprietor to be a lottery retailer who:

 

(1) is under the age of 18;

 

(2) is in business solely as a seller of lottery tickets;

 

(3) owes $500 or more in delinquent taxes as defined in section 270C.72;

 

(4) has been convicted within the previous five years of a felony or gross misdemeanor, any crime involving fraud or misrepresentation, or a gambling-related offense in any jurisdiction in the United States;

 

(5) is a member of the immediate family, residing in the same household, as the director or any employee of the lottery;

 

(6) in the director's judgment does not have the financial stability or responsibility to act as a lottery retailer, or whose contracting as a lottery retailer would adversely affect the public health, welfare, and safety, or endanger the security and integrity of the lottery; or

 

(7) is a currency exchange, as defined in section 53A.01.

 

A contract entered into before August 1, 1990, which violates clause (7) may continue in effect until its expiration but may not be renewed.

 

(b) The director may not contract with an organization, firm, partnership, or corporation to be a lottery retailer that:

 

(1) has a responsible lottery official who:  (i) is under the age of 18; (ii) owes $500 or more in delinquent taxes as defined in section 270C.72; or (iii) has been convicted within the previous five years of a felony or gross misdemeanor, any crime involving fraud or misrepresentation, or a gambling-related offense in any jurisdiction in the United States;

 

(2) An organization, firm, partnership, or corporation that has a stockholder who owns more than five percent of the business or the stock of the corporation, a responsible lottery official, an officer, or a director, that does not meet the requirements of paragraph (a), clause (4), is not eligible to be a lottery retailer under this section who is a member of the immediate family of, or resides in the same household as, the director or any employee of the lottery;

 

(3) is in business solely as a seller of lottery tickets;

 

(4) in the director's judgment does not have the financial stability or responsibility to act as a lottery retailer, or whose contracting as a lottery retailer would adversely affect public health, welfare, and safety, or endanger the security and integrity of the lottery; or

 

(5) is a currency exchange, as defined in section 53A.01.


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(c) The restrictions under paragraph (a), clause (4), do not apply to an organization, partnership, or corporation if the director determines that the organization, partnership, or firm has terminated its relationship with the individual whose actions directly contributed to the disqualification under this subdivision.

 

Sec. 61.  Minnesota Statutes 2024, section 349A.06, subdivision 4, is amended to read:

 

Subd. 4.  Criminal history.  The director may request the director of alcohol and gambling enforcement to investigate all applicants for lottery retailer contracts to determine their compliance with the requirements of subdivision 2. 

 

(a) Upon the director's request, an applicant for a lottery retailer contract must submit a completed criminal history records check consent form, a full set of classifiable fingerprints, and required fees to the director or the Bureau of Criminal Apprehension.  Upon receipt of the information, the director must submit the completed criminal history records check consent form, full set of classifiable fingerprints, and required fees to the Bureau of Criminal Apprehension.

 

(b) After receiving the information, the bureau must conduct a Minnesota criminal history records check of the individual.  The bureau is authorized to exchange the fingerprints with the Federal Bureau of Investigation to obtain the applicant's national criminal history record information.  The bureau must return the results of the Minnesota and national criminal history records checks to the director to determine the individual's compliance with the requirements of subdivision 2.

 

(c) The director must request a Minnesota and national criminal history records check for any sole proprietor or responsible lottery official that applies to be a lottery retailer and (1) has not undergone a check under this section within the past seven years, or (2) has had any lapse in a contract to sell lottery tickets.

 

(d) The director may issue a temporary contract, valid for not more than 90 days, to an applicant pending the completion of the investigation or a final determination of qualifications under this section.  The director has access to all criminal history data compiled by the director of alcohol and gambling enforcement Bureau of Criminal Apprehension on (1) any person holding or applying for a retailer contract, (2) any person holding a lottery vendor contract or who has submitted a bid on such a contract, and (3) any person applying for employment with the lottery.

 

Sec. 62.  Minnesota Statutes 2024, section 349A.06, subdivision 11, is amended to read:

 

Subd. 11.  Cancellation, suspension, and refusal to renew contracts or locations.  (a) The director shall cancel the contract of any lottery retailer or prohibit a lottery retailer from selling lottery tickets at a business location who:

 

(1) has is a sole proprietor or has a responsible lottery official who has been convicted of a felony or gross misdemeanor in any jurisdiction in the United States;

 

(2) has is a sole proprietor or has a responsible lottery official who has committed fraud, misrepresentation, or deceit any crime involving fraud or misrepresentation, or a gambling-related offense in any jurisdiction in the United States;

 

(3) has provided false or misleading information to the lottery; or

 

(4) has acted in a manner prejudicial to public confidence in the integrity of the lottery.

 

(b) The director may cancel, suspend, or refuse to renew the contract of any lottery retailer or prohibit a lottery retailer from selling lottery tickets at a business location who:

 

(1) changes business location;


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(2) fails to account for lottery tickets received or the proceeds from tickets sold;

 

(3) fails to remit funds to the director in accordance with the director's rules;

 

(4) violates a law or a rule or order of the director;

 

(5) fails to comply with any of the terms in the lottery retailer's contract;

 

(6) fails to file a bond, securities, or a letter of credit as required under subdivision 3;

 

(7) in the opinion of the director fails to maintain a sufficient sales volume to justify continuation as a lottery retailer; or

 

(8) has violated section 340A.503, subdivision 2, clause (1), two or more times within a two-year period.

 

(c) The director may also cancel, suspend, or refuse to renew a lottery retailer's contract or prohibit a lottery retailer from selling lottery tickets at a business location if there is a material change in any of the factors considered by the director under subdivision 2.

 

(d) A contract cancellation, suspension, refusal to renew, or prohibiting a lottery retailer from selling lottery tickets at a business location under this subdivision is a contested case under sections 14.57 to 14.69 and is in addition to any criminal penalties provided for a violation of law or rule.

 

(e) The director may temporarily suspend a contract or temporarily prohibit a lottery retailer from selling lottery tickets at a business location without notice for any of the reasons specified in this subdivision provided that a hearing is conducted within seven days after a request for a hearing is made by a lottery retailer.  Within 20 days after receiving the administrative law judge's report, the director shall issue an order vacating the temporary suspension or prohibition or making any other appropriate order.  If no hearing is requested within 30 days of the temporary suspension or prohibition taking effect, the suspension or prohibition becomes permanent unless the director vacates or modifies the order.

 

Sec. 63.  Minnesota Statutes 2024, section 471.6985, subdivision 2, is amended to read:

 

Subd. 2.  If $350,000 $750,000 sales, audited statement.  Any city operating a municipal liquor store with total annual sales in excess of $350,000 $750,000, as adjusted for inflation annually by the state auditor using the implicit price deflator for state and local expenditures published by the United States Department of Commerce, shall submit to the state auditor audited financial statements produced in conformity with generally accepted accounting principles for the liquor store that have been attested to by a certified public accountant or the state auditor within 180 days after the close of the fiscal year, except that the state auditor may extend the deadline upon request of a city and a showing of inability to conform.  The state auditor may accept this report in lieu of the report required by subdivision 1.

 

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

 

Sec. 64.  2025 COMPENSATION COUNCIL REVIVED.

 

The Compensation Council appointed under Minnesota Statutes, section 15A.082, in 2025 is revived on June 1, 2026, and expires upon the council's submission of judicial salary recommendations in accordance with Minnesota Statutes, section 15A.082, subdivision 3, paragraph (a), as amended in section 27.


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Sec. 65.  OPEN POSITIONS REPORT.

 

The commissioner of management and budget must report the number of posted executive branch job openings that have gone unfilled for at least six months.  The commissioner's report must identify such openings by agency and job title, and identify which specific job titles or classes take longest to fill on average and those that experience the most turnover.  No later than February 1, 2026, August 1, 2026, and February 1, 2027, the commissioner must submit this report to the chairs and ranking minority members of the legislative committees with jurisdiction over state government finance and policy.

 

Sec. 66.  INTEGRATING APPLICATION INFORMATION AND A REFERRAL PROCESS FOR THE TRANSIT ASSISTANCE PROGRAM ON THE MNBENEFITS WEB PORTAL.

 

No later than June 30, 2026, the commissioner of children, youth, and families, in consultation with Metro Transit and the commissioners of transportation, human services, and Minnesota IT Services, must integrate application information and a referral process for the transit assistance program administered by Metro Transit into the MNbenefits web portal.  Metro Transit and the Metropolitan Council must continue to process applications for the transit assistance program after application information and a referral process are integrated into the MNbenefits web portal.

 

Sec. 67.  STATUE REPLACEMENT.

 

The commissioner of administration may accept private funds, submit a request to the Joint Committee on the Library of Congress, and erect a new statue in Statuary Hall in the United States Capitol, including removing an existing statue from Statuary Hall and transporting it to Minnesota, recasting an existing statue in Minnesota, and transporting and installing the new statue in Statuary Hall.  All money accepted by the commissioner under this section must be deposited in a dedicated account in the special revenue fund and is appropriated to the commissioner for purposes of this section.  The account expires on January 1, 2028, with any money remaining in the account at that time appropriated to the State Arts Board for purposes of the programs and activities authorized under Minnesota Statutes, chapter 129D.

 

EFFECTIVE DATE.  This section is effective the day after the chief clerk of the house of representatives and the secretary of the senate jointly notify the revisor of statutes and the commissioner of administration that the state has satisfied the requirements for a statue replacement request under United States Code, title 2, chapter 30, section 2132.

 

Sec. 68.  REVISOR INSTRUCTION.

 

The revisor of statutes shall change the term "Office of Administrative Hearings" to "Court of Administrative Hearings" wherever the term appears in Minnesota Statutes.  The revisor of statutes shall also change the term "office" to "court" wherever the term "office" appears and refers to the Office of Administrative Hearings in Minnesota Statutes.

 

Sec. 69.  REPEALER.

 

Subdivision 1.  Legislative commissions.  (a) Minnesota Statutes 2024, sections 3.8842; and 3.8845, are repealed.

 

(b) Laws 2019, First Special Session chapter 3, article 2, section 34, as amended by Laws 2020, chapter 100, section 22; and Laws 2022, chapter 50, article 3, section 2, are repealed.

 

Subd. 2.  Employee gainsharing.  Minnesota Statutes 2024, section 16A.90, is repealed.


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Subd. 3.
  Department of Administration.  Minnesota Statutes 2024, sections 16B.328, subdivision 2; and 16C.36, are repealed.

 

Subd. 4.  Advisory Council on Infrastructure.  Minnesota Statutes 2024, sections 16B.356; 16B.357; 16B.358; and 16B.359, are repealed.

 

Subd. 5.  Office of the Legislative Auditor.  Minnesota Statutes 2024, section 16B.45, is repealed.

 

Subd. 6.  Political and campaign provisions.  Minnesota Statutes 2024, sections 211B.06; and 211B.08, are repealed.

 

ARTICLE 3

STATE PERSONNEL MANAGEMENT

 

Section 1.  Minnesota Statutes 2024, section 43A.01, subdivision 3, is amended to read:

 

Subd. 3.  Equitable compensation relationships.  It is the policy of this state to attempt to establish equitable compensation relationships between female-dominated, male-dominated, and balanced classes of employees in the executive branch.  Compensation relationships are equitable within the meaning of this subdivision when the primary consideration in negotiating, establishing, recommending, and approving total compensation is comparability of the value of the work in relationship to other positions classifications in the executive branch.

 

Sec. 2.  Minnesota Statutes 2024, section 43A.02, subdivision 14, is amended to read:

 

Subd. 14.  Commissioner's Nonrepresented employees compensation plan." Commissioner's Nonrepresented employees compensation plan" means the plan required by section 3.855 regarding total compensation and terms and conditions of employment, including grievance administration, for employees of the executive branch who are not otherwise provided for in this chapter or other law.

 

Sec. 3.  Minnesota Statutes 2024, section 43A.04, subdivision 1, is amended to read:

 

Subdivision 1.  Statewide leadership.  (a) The commissioner is the chief personnel and labor relations manager of the civil service in the executive branch.

 

Whenever any power or responsibility is given to the commissioner by any provision of this chapter, unless otherwise expressly provided, the power or authority applies to all employees of agencies in the executive branch and to employees in classified positions in the Office of the Legislative Auditor, the Minnesota State Retirement System, the Public Employees Retirement Association, and the Teacher's Retirement Association.  Unless otherwise provided by law, the power or authority does not apply to unclassified employees in the legislative and judicial branches.

 

(b) The commissioner shall operate an information system from which personnel data, as defined in section 13.43, concerning employees and applicants for positions in the classified service can be retrieved.

 

The commissioner has access to all public and private personnel data kept by appointing authorities that will aid in the discharge of the commissioner's duties.

 

(c) The commissioner may consider and investigate any matters concerned with the administration of provisions of this chapter, and may order any remedial actions consistent with law.  The commissioner, at the request of an agency, shall provide assistance in employee misconduct investigations.  Upon request of the appointing authority, the commissioner may issue determinations on personnel matters regarding board-appointed executive directors or


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leaders.
  The commissioner shall have the right to assess from the requesting agency, any costs incurred while assisting the agency in the employee misconduct investigation.  Money received by the commissioner under this paragraph is appropriated to the commissioner for purposes of this paragraph.

 

(d) The commissioner may assess or establish and collect premiums from all state entities to cover the costs of programs under sections section 15.46 and 176.603.

 

Sec. 4.  Minnesota Statutes 2024, section 43A.04, subdivision 4, is amended to read:

 

Subd. 4.  Administrative procedures.  The commissioner shall develop administrative procedures, which are not subject to the rulemaking provisions of the Administrative Procedure Act, to effect provisions of chapter 43A which do not directly affect the rights of or processes available to the general public.  The commissioner may also adopt administrative procedures, not subject to the Administrative Procedure Act, which concern topics affecting the general public if those procedures concern only the internal management of the department or other agencies and if those elements of the topics which affect the general public are the subject of department rules.

 

Administrative procedures shall be reproduced and made available for comment in accessible digital formats under section 16E.03 to agencies, employees, and appropriate exclusive representatives certified pursuant to sections 179A.01 to 179A.25, for at least 15 days prior to implementation and shall include but are not limited to:

 

(1) maintenance and administration of a plan of classification for all positions in the classified service and for comparisons of unclassified positions with positions in the classified service;

 

(2) procedures for administration of collective bargaining agreements and plans established pursuant to section 43A.18 concerning total compensation and the terms and conditions of employment for employees;

 

(3) procedures for effecting all personnel actions internal to the state service such as processes and requirements for agencies to publicize job openings and consider applicants who are referred or nominate themselves apply, conduct of selection procedures limited to employees, noncompetitive and qualifying appointments of employees and leaves of absence;

 

(4) maintenance and administration of employee performance appraisal, training and other programs; and

 

(5) procedures for pilots of the reengineered employee selection process.  Employment provisions of this chapter, associated personnel rules adopted under subdivision 3, and administrative procedures established under clauses (1) and (3) may be waived for the purposes of these pilots.  The pilots may affect the rights of and processes available to members of the general public seeking employment in the classified service.  The commissioner will provide public notice of any pilot directly affecting the rights of and processes available to the general public and make the administrative procedures available for comment to the general public, agencies, employees, and appropriate exclusive representatives certified pursuant to sections 179A.01 to 179A.25 for at least 30 days prior to implementation.  The commissioner must publish the public notice in an accessible digital format under section 16E.03.  The commissioner must provide a comment process that allows the public to submit comments through multiple formats to ensure accessibility.  These formats must include telephone, digital content, and email.

 

Sec. 5.  Minnesota Statutes 2024, section 43A.04, subdivision 8, is amended to read:

 

Subd. 8.  Donation of time.  Notwithstanding any law to the contrary, the commissioner shall authorize the appointing authority to permit the donation of up to eight hours of accumulated vacation time in each year by each employee who is a member of law enforcement unit number 1, 18, or 19 to their union representative for the purpose of carrying out the duties of office.


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Sec. 6.  Minnesota Statutes 2024, section 43A.05, subdivision 3, is amended to read:

 

Subd. 3.  Commissioner's Nonrepresented employees compensation plan.  The commissioner shall periodically develop and establish pursuant to this chapter a commissioner's nonrepresented employees compensation plan.  The commissioner shall submit the plan to the Legislative Coordinating Commission.

 

Sec. 7.  Minnesota Statutes 2024, section 43A.08, subdivision 1a, is amended to read:

 

Subd. 1a.  Additional unclassified positions.  Appointing authorities for the following agencies may designate additional unclassified positions according to this subdivision:  the Departments of Administration; Agriculture; Children, Youth, and Families; Commerce; Corrections; Education; Employment and Economic Development; Explore Minnesota Tourism; Management and Budget; Health; Human Rights; Human Services; Labor and Industry; Natural Resources; Public Safety; Revenue; Transportation; and Veterans Affairs; the Housing Finance and Pollution Control Agencies; the State Lottery; the State Board of Investment; the Office of Administrative Hearings; the Department of Information Technology Services; an agency, including the Offices of the Attorney General, Secretary of State, and State Auditor; the Minnesota State Colleges and Universities; the Minnesota Office of Higher Education; the Perpich Center for Arts Education; Direct Care and Treatment; the Minnesota Zoological Board; and the Office of Emergency Medical Services, may designate additional unclassified positions.

 

A position designated by an appointing authority according to this subdivision must meet the following standards and criteria:

 

(1) the designation of the position would not be contrary to other law relating specifically to that agency;

 

(2) the person occupying the position would report directly to the agency head or deputy agency head and would be designated as part of the agency head's management team;

 

(3) the duties of the position would involve significant discretion and substantial involvement in the development, interpretation, and implementation of agency policy;

 

(4) the duties of the position would not require primarily personnel, accounting, or other technical expertise where continuity in the position would be important;

 

(5) there would be a need for the person occupying the position to be accountable to, loyal to, and compatible with, the governor and the agency head, the employing statutory board or commission, or the employing constitutional officer;

 

(6) the position would be at the level of division or bureau director or assistant to the agency head; and

 

(7) the commissioner has approved the designation as being consistent with the standards and criteria in this subdivision.

 

Sec. 8.  Minnesota Statutes 2024, section 43A.08, subdivision 4, is amended to read:

 

Subd. 4.  Length of service for student workers.  A person may not only be employed as a student worker in the unclassified service under subdivision 1 for more than 36 months.  Employment at a school that a student attends is not counted for purposes of this 36-month limit.  Student workers in the Minnesota Department of Transportation SEEDS program who are actively involved in a four-year degree program preparing for a professional career job in the Minnesota Department of Transportation may be employed as a student worker for up to 48 months if they are enrolled in secondary, postsecondary, or graduate study.


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Sec. 9.  Minnesota Statutes 2024, section 43A.11, subdivision 9, is amended to read:

 

Subd. 9.  Rejection Nonselection; explanation.  If the appointing authority rejects does not select a member of the finalist pool who has claimed veteran's preference, the appointing authority shall notify the finalist in writing of the reasons for the rejection.

 

Sec. 10.  Minnesota Statutes 2024, section 43A.121, is amended to read:

 

43A.121 RANKING OF THE APPLICANT POOL.

 

Applicants referred from a layoff list shall be ranked as provided in the collective bargaining agreement or plan established under section 43A.18, under which the layoff list was established.  All other names in an applicant pool shall be ranked according to the veteran's preference provisions of section 43A.11, subdivision 7, and then in descending order of the number of skill matches for the vacant position.  If any ties in rank remain, those names shall appear in alphabetical order.

 

Sec. 11.  Minnesota Statutes 2024, section 43A.15, subdivision 4, is amended to read:

 

Subd. 4.  Provisional appointments.  The commissioner may authorize an appointing authority to make a provisional appointment if no applicant is suitable or available for appointment and the person to be provisionally appointed is qualified in all respects except for completion of a licensure or certification requirement.

 

No person shall be employed on a provisional basis for more than six months unless the commissioner grants an extension to a maximum of 12 months in the best interest of the state.  No extension may be granted beyond 12 months except where there is a lack of applicants and the provisional appointee is continuing to work to complete the licensure or certification requirement.

 

At the request of an appointing authority, the commissioner may authorize the probationary appointment of a provisional appointee who has performed satisfactorily for at least 60 days and has completed the licensure or certification requirement.

 

Sec. 12.  Minnesota Statutes 2024, section 43A.15, subdivision 7, is amended to read:

 

Subd. 7.  Appointments for unclassified incumbents of newly classified positions.  The commissioner may authorize the probationary appointment of an incumbent who has passed a qualifying selection process and who has served at least one year in an unclassified position which has been placed in the classified service by proper authority.

 

Sec. 13.  Minnesota Statutes 2024, section 43A.15, subdivision 12, is amended to read:

 

Subd. 12.  Work-training Trainee appointments.  The commissioner may authorize the probationary appointment of persons who successfully complete on-the-job state training programs which that have been approved by the commissioner.

 

Sec. 14.  Minnesota Statutes 2024, section 43A.15, subdivision 14, is amended to read:

 

Subd. 14.  700-hour on-the-job demonstration experience.  (a) The commissioner shall consult with the Department of Employment and Economic Development's Vocational Rehabilitation Services and State Services for the Blind and other disability experts in establishing, reviewing, and modifying the qualifying procedures for applicants whose disabilities are of such a significant nature that the applicants are unable to demonstrate their abilities in the selection process.  The qualifying procedures must consist of up to 700 hours of on-the-job


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demonstration experience.  The 700-hour on-the-job demonstration experience is an alternative, noncompetitive hiring process for qualified applicants with disabilities.  All permanent executive branch classified positions are eligible for a 700-hour on-the-job demonstration experience, and all permanent classified job postings must provide information regarding the on-the-job demonstration overview and certification process.

 

(b) The commissioner may shall authorize the probationary appointment of an applicant based on the request of the appointing authority that documents that the applicant has successfully demonstrated qualifications for the position through completion of an on-the-job demonstration experience.  A qualified applicant should shall be converted to permanent, probationary appointments at the point in the 700-hour on-the-job experience when the applicant has demonstrated the ability to perform the essential functions of the job with or without reasonable accommodation.  The implementation of this subdivision may not be deemed a violation of chapter 43A or 363A.

 

(c) The commissioner and the ADA and disability employment director, described in section 43A.19, subdivision 1, paragraph (e), are responsible for the administration and oversight of the 700-hour on-the-job demonstration experience, including the establishment of policies and procedures, data collection and reporting requirements, and compliance.

 

(d) The commissioner or the commissioner's designee shall design and implement a training curriculum for the 700-hour on-the-job demonstration experience.  All executive leaders, managers, supervisors, human resources professionals, affirmative action officers, and ADA coordinators must receive annual training on the program.

 

(e) The commissioner or the commissioner's designee shall develop, administer, and make public a formal grievance process for individuals in the 700-hour on-the-job demonstration experience under this subdivision and supported work customized employment program under section 43A.421, subdivision 2.

 

(f) An appointing authority must make reasonable accommodations in response to a request from an applicant with a disability, including providing accommodations in a timely manner during the application and hiring process and throughout the 700-hour on-the-job demonstration experience.  Requirements for accessibility for public records under section 363A.42, continuing education under section 363A.43, and technology under section 16E.03, subdivision 2, clauses (3) and (9), apply to an agency filling an appointment during the application and hiring process and through the on-the-job demonstration experience period.

 

Sec. 15.  Minnesota Statutes 2024, section 43A.17, subdivision 5, is amended to read:

 

Subd. 5.  Salary on demotion; special cases.  The commissioner may, upon request of an appointing authority, approve payment of an employee with permanent status at a salary rate above the maximum of the class to which the employee is demoted.  The commissioner shall take such action as required by collective bargaining agreements or plans pursuant to section 43A.18.  If the action is justified by the employee's long or outstanding service, exceptional or technical qualifications, age, health, or substantial changes in work assignment beyond the control of the employee, the commissioner may approve a rate up to and including the employee's salary immediately prior to demotion.  Thereafter, so long as the employee remains in the same position, the employee shall not be eligible to receive any increase in salary until the employee's salary is within the range of the class to which the employee's position is allocated unless such increases are specifically provided in collective bargaining agreements or plans pursuant to section 43A.18.

 

Sec. 16.  Minnesota Statutes 2024, section 43A.18, subdivision 2, is amended to read:

 

Subd. 2.  Commissioner's Nonrepresented employees compensation plan.  Except as provided in section 43A.01, the compensation, terms and conditions of employment for all classified and unclassified employees, except unclassified employees in the legislative and judicial branches, who are not covered by a collective bargaining agreement and not otherwise provided for in chapter 43A or other law are governed solely by a plan developed by the commissioner.  The Legislative Coordinating Commission shall review the plan under section 3.855, subdivision 2.  The plan need not be adopted in accordance with the rulemaking provisions of chapter 14.


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Sec. 17.  Minnesota Statutes 2024, section 43A.181, subdivision 1, is amended to read:

 

Subdivision 1.  Donation of vacation time.  A state employee may donate up to 12 hours of accrued vacation time in any fiscal year to the account established by subdivision 2 for the benefit of another state employee.  The employee must notify the employee's agency head of the amount of accrued vacation time the employee wishes to donate and the name of the other state employee who is to benefit from the donation.  The agency head shall determine the monetary value of the donated time, using the gross salary of the employee making the donation.  The agency head shall transfer that amount, less deductions for applicable taxes and retirement contributions, to the account established by subdivision 2.  A donation of accrued vacation time is irrevocable once its monetary value has been transferred to the account.

 

Sec. 18.  Minnesota Statutes 2024, section 43A.1815, is amended to read:

 

43A.1815 VACATION DONATION TO SICK LEAVE ACCOUNT.

 

(a) In addition to donations under section 43A.181, a state employee may donate a total of up to 40 hours of accrued vacation leave each fiscal year to the sick leave account of one or more state employees.  A state employee may not be paid for more than 80 hours in a payroll period during which the employee uses sick leave credited to the employee's account as a result of a transfer from another state employee's vacation account.

 

(b) At retirement, eligible state employees may donate additional accumulated vacation hours in excess of their vacation payout at time of retirement, into a general pool, even if they already have donated 40 hours.

 

(b) (c) The recipient employee must receive donations, as available, for a life-threatening condition of the employee or spouse or dependent child that prevents the employee from working.  A recipient may use program donations retroactively to when all forms of paid leave are exhausted if the employee has sufficient donations to cover the period of retroactivity.  A recipient who receives program donations under this section may use up to 80 hours of program donations after the death of a spouse or dependent child.

 

(c) (d) An applicant for benefits under this section who receives an unfavorable determination may select a designee to consult with the commissioner or commissioner's designee on the reasons for the determination.

 

(d) (e) The commissioner shall establish procedures under section 43A.04, subdivision 4, for eligibility, duration of need based on individual cases, monitoring and evaluation of individual eligibility status, and other topics related to administration of this program.

 

Sec. 19.  Minnesota Statutes 2024, section 43A.19, subdivision 1, is amended to read:

 

Subdivision 1.  Statewide affirmative action program.  (a) To assure that positions in the executive branch of the civil service are equally accessible to all qualified persons, and to eliminate the effects of past and present discrimination, intended or unintended, on the basis of protected group status, the commissioner shall adopt and periodically revise, if necessary, a statewide affirmative action program.  The statewide affirmative action program must consist of at least the following:

 

(1) objectives, goals, and policies;

 

(2) procedures, standards, and assumptions to be used by agencies in the preparation of agency affirmative action plans, including methods by which goals and timetables are established;

 

(3) the analysis of separation patterns to determine the impact on protected group members; and


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(4) requirements for annual objectives and submission of affirmative action progress reports from heads of agencies.

 

Agency heads must report the data in clause (3) to the state Director of Recruitment, Retention and Affirmative Action and the state ADA coordinator, in addition to being available to anyone upon request.  The commissioner must annually post the aggregate and agency-level reports under clause (4) on the agency's website.

 

(b) The commissioner shall establish statewide affirmative action goals for each of the federal Equal Employment Opportunity (EEO) occupational categories applicable to state employment, using at least the following factors:

 

(1) the percentage of members of each protected class in the recruiting area population who have the necessary skills; and

 

(2) the availability for promotion or transfer of current employees who are members of protected classes.

 

(c) The commissioner may use any of the following factors in addition to the factors required under paragraph (b):

 

(1) the extent of unemployment of members of protected classes in the recruiting area population;

 

(2) the existence of training programs in needed skill areas offered by employing agencies and other institutions; and

 

(3) the expected number of available positions to be filled.

 

(d) The commissioner shall designate a state director of diversity and equal employment opportunity who may be delegated the preparation, revision, implementation, and administration of the program.  The commissioner of management and budget may place the director's position in the unclassified service if the position meets the criteria established in section 43A.08, subdivision 1a.

 

(e) The commissioner shall designate a statewide ADA and disability employment director.  The commissioner may delegate the preparation, revision, implementation, evaluation, and administration of the program to the director.  The director must administer the 700-hour on-the-job demonstration experience under the supported work customized employment program and disabled veteran's employment programs.  The ADA and disability employment director shall have education, knowledge, and skills in disability policy, employment, and the ADA.  The commissioner may place the director's position in the unclassified service if the position meets the criteria established in section 43A.08, subdivision 1a.

 

(f) Agency affirmative action plans, including reports and progress, must be posted on the agency's public and internal websites within 30 days of being approved.  The commissioner of management and budget shall post a link to all executive branch agency-approved affirmative action plans on its public website.  Accessible copies of the affirmative action plan must be available to all employees and members of the general public upon request.

 

Sec. 20.  Minnesota Statutes 2024, section 43A.23, subdivision 1, is amended to read:

 

Subdivision 1.  General.  (a) The commissioner is authorized to request proposals or to negotiate and to enter into contracts with parties which in the judgment of the commissioner are best qualified to provide service to the benefit plans.  Contracts entered into are not subject to the requirements of sections 16C.16 to 16C.19.  The commissioner may negotiate premium rates and coverage.  The commissioner shall consider the cost of the plans, conversion options relating to the contracts, service capabilities, character, financial position, and reputation of the carriers, and any other factors which that the commissioner deems appropriate.  Each benefit contract must be for a uniform term of at least one year, but may be made automatically renewable from term to term in the absence of notice of termination by either party.  A carrier licensed under chapter 62A is exempt from the taxes imposed by chapter 297I on premiums paid to it by the state.


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(b) All self-insured hospital and medical service products must comply with coverage mandates, data reporting, and consumer protection requirements applicable to the licensed carrier administering the product, had the product been insured, including chapters 62J, 62M, and 62Q.  Any self-insured products that limit coverage to a network of providers or provide different levels of coverage between network and nonnetwork providers shall comply with section 62D.123 and geographic access standards for health maintenance organizations adopted by the commissioner of health in rule under chapter 62D.

 

(c) Notwithstanding paragraph (b), a self-insured hospital and medical product offered under sections 43A.22 to 43A.30 is required to extend dependent coverage to an eligible employee's child to the full extent required under chapters 62A and 62L.  Dependent child coverage must, at a minimum, extend to an eligible employee's dependent child to the limiting age as defined in section 62Q.01, subdivision 2a, disabled children to the extent required in sections 62A.14 and 62A.141, and dependent grandchildren to the extent required in sections 62A.042 and 62A.302.

 

(d) Beginning January 1, 2010, the health insurance benefit plans offered in the commissioner's nonrepresented employees compensation plan under section 43A.18, subdivision 2, and the managerial plan under section 43A.18, subdivision 3, must include an option for a health plan that is compatible with the definition of a high-deductible health plan in section 223 of the United States Internal Revenue Code.

 

Sec. 21.  Minnesota Statutes 2024, section 43A.23, subdivision 2, is amended to read:

 

Subd. 2.  Contract to contain statement of benefits.  (a) Each contract under sections 43A.22 to 43A.30 shall contain a detailed statement of benefits offered and shall include any maximums, limitations, exclusions, and other definitions of benefits the commissioner deems necessary or desirable.  Each hospital and medical benefits contract shall provide benefits at least equal to those required by section 62E.06, subdivision 2.

 

(b) All summaries of benefits describing the hospital and medical service benefits offered to state employees must comply with laws and rules for content and clarity applicable to the licensed carrier administering the product.  Referral procedures must be clearly described.  The commissioners of commerce and health, as appropriate, shall may review the summaries of benefits, whether written or electronic, and advise the commissioner on any changes needed to ensure compliance.

 

Sec. 22.  Minnesota Statutes 2024, section 43A.24, subdivision 1a, is amended to read:

 

Subd. 1a.  Opt out.  (a) An individual eligible for state-paid hospital, medical, and dental benefits under this section has the right to decline those benefits, provided the individual declining the benefits can prove health insurance coverage from another source.  Any individual declining benefits must do so in writing, signed and dated, on a form provided by the commissioner.

 

(b) The commissioner must create, and make available in hard copy and online a form for individuals to use in declining state-paid hospital, medical, and dental benefits.  The form must, at a minimum, include notice to the declining individual of the next available opportunity and procedure to re-enroll in the benefits.

 

(c) No later than January 15 of each year, the commissioner of management and budget must provide a report to the chairs and ranking minority members of the legislative committees with jurisdiction over state government finance on the number of employees choosing to opt-out of state employee group insurance coverage under this section.  The report must provide itemized statistics, by agency, and include the total amount of savings accrued to each agency resulting from the opt-outs.


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Sec. 23.  Minnesota Statutes 2024, section 43A.24, subdivision 2, is amended to read:

 

Subd. 2.  Other eligible persons.  The following persons are eligible for state paid life insurance and hospital, medical, and dental benefits as determined in applicable collective bargaining agreements or by the commissioner or by plans pursuant to section 43A.18, subdivision 6, or by the Board of Regents for employees of the University of Minnesota not covered by collective bargaining agreements.  Coverages made available, including optional coverages, are as contained in the plan established pursuant to section 43A.18, subdivision 2:

 

(1) a member of the state legislature, provided that changes in benefits resulting in increased costs to the state shall not be effective until expiration of the term of the members of the existing house of representatives.  An eligible member of the state legislature may decline to be enrolled for state paid coverages by filing a written waiver with the commissioner.  The waiver shall not prohibit the member from enrolling the member or dependents for optional coverages, without cost to the state, as provided for in section 43A.26.  A member of the state legislature who returns from a leave of absence to a position previously occupied in the civil service shall be eligible to receive the life insurance and hospital, medical, and dental benefits to which the position is entitled;

 

(2) an employee of the legislature or an employee of a permanent study or interim committee or commission or a state employee on leave of absence to work for the legislature, during a regular or special legislative session, as determined by the Legislative Coordinating Commission;

 

(3) a judge of the appellate courts or an officer or employee of these courts; a judge of the district court, a judge of county court, or a judge of county municipal court; a district court referee, judicial officer, court reporter, or law clerk; a district administrator; an employee of the Office of the District Administrator that is not in the Second or Fourth Judicial District; a court administrator or employee of the court administrator in a judicial district under section 480.181, subdivision 1, paragraph (b), and a guardian ad litem program employee;

 

(4) a salaried employee of the Public Employees Retirement Association;

 

(5) a full-time military or civilian officer or employee in the unclassified service of the Department of Military Affairs whose salary is paid from state funds;

 

(6) an employee of the Minnesota Historical Society, whether paid from state funds or otherwise, who is not a member of the governing board;

 

(7) an employee of the regents of the University of Minnesota;

 

(8) (7) notwithstanding section 43A.27, subdivision 3, an employee of the state of Minnesota or the regents of the University of Minnesota who is at least 60 and not yet 65 years of age on July 1, 1982, who is otherwise eligible for employee and dependent insurance and benefits pursuant to section 43A.18 or other law, who has at least 20 years of service and retires, earlier than required, within 60 days of March 23, 1982; or an employee who is at least 60 and not yet 65 years of age on July 1, 1982, who has at least 20 years of state service and retires, earlier than required, from employment at Rochester state hospital after July 1, 1981; or an employee who is at least 55 and not yet 65 years of age on July 1, 1982, and is covered by the Minnesota State Retirement System correctional employee retirement plan or the State Patrol retirement fund, who has at least 20 years of state service and retires, earlier than required, within 60 days of March 23, 1982.  For purposes of this clause, a person retires when the person terminates active employment in state or University of Minnesota service and applies for a retirement annuity.  Eligibility shall cease when the retired employee attains the age of 65, or when the employee chooses not to receive the annuity that the employee has applied for.  The retired employee shall be eligible for coverages to which the employee was entitled at the time of retirement, subject to any changes in coverage through collective bargaining or plans established pursuant to section 43A.18, for employees in positions equivalent to that from which retired, provided that the retired employee shall not be eligible for state-paid life insurance.  Coverages shall be coordinated with relevant health insurance benefits provided through the federally sponsored Medicare program;


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(9)
(8) an employee of an agency of the state of Minnesota identified through the process provided in this paragraph who is eligible to retire prior to age 65.  The commissioner and the exclusive representative of state employees shall enter into agreements under section 179A.22 to identify employees whose positions are in programs that are being permanently eliminated or reduced due to federal or state policies or practices.  Failure to reach agreement identifying these employees is not subject to impasse procedures provided in chapter 179A.  The commissioner must prepare a plan identifying eligible employees not covered by a collective bargaining agreement in accordance with the process outlined in section 43A.18, subdivisions 2 and 3.  For purposes of this paragraph, a person retires when the person terminates active employment in state service and applies for a retirement annuity.  Eligibility ends as provided in the agreement or plan, but must cease at the end of the month in which the retired employee chooses not to receive an annuity, or the employee is eligible for employer-paid health insurance from a new employer.  The retired employees shall be eligible for coverages to which they were entitled at the time of retirement, subject to any changes in coverage through collective bargaining or plans established under section 43A.18 for employees in positions equivalent to that from which they retired, provided that the retired employees shall not be eligible for state-paid life insurance;

 

(10) (9) employees of the state Board of Public Defense, with eligibility determined by the state Board of Public Defense in consultation with the commissioner of management and budget; and

 

(11) (10) employees of supporting organizations of Enterprise Minnesota, Inc., established after July 1, 2003, under section 116O.05, subdivision 4, as paid for by the supporting organization.

 

Sec. 24.  Minnesota Statutes 2024, section 43A.27, subdivision 2, is amended to read:

 

Subd. 2.  Elective eligibility.  The following persons, if not otherwise covered by section 43A.24, may elect coverage for themselves or their dependents at their own expense:

 

(1) a state employee, including persons on layoff from a civil service position as provided in collective bargaining agreements or a plan established pursuant to section 43A.18;

 

(2) an employee of the Board of Regents of the University of Minnesota, including persons on layoff, as provided in collective bargaining agreements or by the Board of Regents;

 

(3) (2) an officer or employee of the State Agricultural Society, Center for Rural Policy and Development, Agricultural Utilization Research Institute, State Horticultural Society, Sibley House Association, Minnesota Humanities Center, Minnesota Area Industry Labor Management Councils, Minnesota International Center, Minnesota Academy of Science, Science Museum of Minnesota, Minnesota Safety Council, state Office of Disabled American Veterans, state Office of the American Legion and its auxiliary, state Office of Veterans of Foreign Wars and its auxiliary, or state Office of the Military Order of the Purple Heart;

 

(4) (3) a civilian employee of the adjutant general who is paid from federal funds and who is not eligible for benefits from any federal civilian employee group life insurance or health benefits program;

 

(5) (4) an officer or employee of the State Capitol Affinity Plus Federal Credit Union or the Highway Credit Union; and

 

(6) (5) an employee of the joint underwriting association pursuant to section 62I.121 or Minnesota FAIR plan pursuant to section 65A.35, subdivision 5, unless the commissioner determines that making these employees eligible to purchase this coverage would cause the state employee group insurance program to lose its status as a governmental plan or would cause the program to be treated as a multiemployer welfare arrangement.


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Sec. 25.  Minnesota Statutes 2024, section 43A.33, subdivision 3, is amended to read:

 

Subd. 3.  Procedures.  (a) Procedures for discipline and discharge of employees covered by collective bargaining agreements shall be governed by the agreements.  Procedures for employees not covered by a collective bargaining agreement shall be governed by this subdivision and by the commissioner's and managerial plans.

 

(b) For discharge, suspension without pay or demotion, no later than the effective date of such action, a permanent classified employee not covered by a collective bargaining agreement shall be given written notice by the appointing authority.  The content of that notice as well as the employee's right to reply to the appointing authority shall be as prescribed in the grievance procedure contained in the applicable plan established pursuant to section 43A.18.  The notice shall also include a statement that the employee may elect to appeal the action to the Bureau of Mediation Services within 30 calendar days following the effective date of the disciplinary action.  A copy of the notice and the employee's reply, if any, shall be filed by the appointing authority with the commissioner no later than ten calendar days following the effective date of the disciplinary action.  The commissioner shall have final authority to decide whether the appointing authority shall settle the dispute prior to the hearing provided under this subdivision 4.

 

(c) For discharge, suspension, or demotion of an employee serving an initial probationary period, and for noncertification in any subsequent probationary period, grievance procedures shall be as provided in the plan established pursuant to section 43A.18.

 

(d) Within ten days of receipt of the employee's written notice of appeal, the commissioner of the Bureau of Mediation Services shall provide both parties with a list of potential arbitrators according to the rules of the Bureau of Mediation Services to hear the appeal.  The process of selecting the arbitrator from the list shall be determined by the plan.  The hearing shall be conducted pursuant to the rules of the Bureau of Mediation Services.  If the arbitrator finds, based on the hearing record, that the action appealed was not taken by the appointing authority for just cause, the employee shall be reinstated to the position, or an equal position in another division within the same agency, without loss of pay.  If the arbitrator finds that there exists sufficient grounds for institution of the appointing authority's action but the hearing record establishes extenuating circumstances, the arbitrator may reinstate the employee, with full, partial, or no pay, or may modify the appointing authority's action.  The appointing authority shall bear the costs of the arbitrator for hearings provided for in this section.

 

Sec. 26.  Minnesota Statutes 2024, section 43A.346, subdivision 2, is amended to read:

 

Subd. 2.  Eligibility.  (a) This section applies to a terminated state employee who:

 

(1) for at least the five years immediately preceding separation under clause clauses (2) and (3), was regularly scheduled to work 1,044 or more hours per year in a position covered by a pension plan administered by the Minnesota State Retirement System or the Public Employees Retirement Association;

 

(2) terminated state or Metropolitan Council employment;

 

(3) at the time of termination under clause (2), met the age and service requirements necessary to receive an unreduced retirement annuity from the plan and satisfied requirements for the commencement of the retirement annuity or, for a terminated employee under the unclassified employees retirement plan, met the age and service requirements necessary to receive an unreduced retirement annuity from the plan and satisfied requirements for the commencement of the retirement annuity or elected a lump-sum payment; and

 

(4) agrees to accept a postretirement option position with the same or a different appointing authority, working a reduced schedule that is both (i) a reduction of at least 25 percent from the employee's number of previously regularly scheduled work hours; and (ii) 1,044 hours or less in state or Metropolitan Council service.


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(b) For purposes of this section, an unreduced retirement annuity includes a retirement annuity computed under a provision of law which permits retirement, without application of an earlier retirement reduction factor, whenever age plus years of allowable service total at least 90.

 

(c) For purposes of this section, as it applies to state employees who are members of the Public Employees Retirement Association who are at least age 62, the length of separation requirement and termination of service requirement prohibiting return to work agreements under section 353.01, subdivisions 11a and 28, are not applicable.

 

Sec. 27.  Minnesota Statutes 2024, section 43A.346, subdivision 6, is amended to read:

 

Subd. 6.  Duration.  Postretirement option employment is for an initial period not to exceed one year.  During that period, the appointing authority may not modify the conditions of employment specified in the written offer without the person's consent, except as required by law or by the collective bargaining agreement or compensation plan applicable to the person.  At the end of the initial period, the appointing authority has sole discretion to determine if the offer of a postretirement option position will be renewed, renewed with modifications, or terminated.  Postretirement option employment may be renewed for periods of up to one year, not to exceed a total duration of five years.  No person may be employed in one or a combination of postretirement option positions under this section for a total of more than five years.

 

Sec. 28.  Minnesota Statutes 2024, section 43A.36, subdivision 1, is amended to read:

 

Subdivision 1.  Cooperation; state agencies.  (a) The commissioner may delegate administrative functions associated with the duties of the commissioner to appointing authorities who have the capability to perform such functions when the commissioner determines that it is in the best interests of the state civil service.  The commissioner shall consult with agencies and agencies shall cooperate as appropriate in implementation of this chapter.

 

(b) The commissioner, in conjunction with appointing authorities, shall analyze and assess current and future human resource requirements of the civil service and coordinate personnel actions throughout the civil service to meet the requirements.  The commissioner shall provide recruiting assistance and make the applicant database available to appointing authorities to use in making appointments to positions in the unclassified service.

 

(c) The head of each agency in the executive branch shall designate an agency personnel officer.  The agency personnel officer shall be accountable to the agency head for all personnel functions prescribed by laws, rules, collective bargaining agreements, the commissioner and the agency head.  Except when otherwise prescribed by the agency head in a specific instance, the personnel officer shall be assumed to be the authority accountable to the agency head over any other officer or employee in the agency for personnel functions.

 

(d) The head of each agency in the executive branch shall designate an affirmative action officer who shall have primary responsibility for the administration of the agency's affirmative action plan.  The officer shall report directly to the head of the agency on affirmative action matters.

 

(e) Pursuant to section 43A.431, the head of each agency in the executive branch shall designate an ADA coordinator who shall have primary responsibility for the administration of ADA policies, procedures, trainings, requests, and arbitration.  The coordinator shall report directly to the commissioner agency head.


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Sec. 29.  Minnesota Statutes 2024, section 43A.421, is amended to read:

 

43A.421 SUPPORTED WORK CUSTOMIZED EMPLOYMENT PROGRAM.

 

Subdivision 1.  Program established.  Active positions within agencies of state government may be selected for inclusion for a supported work program for persons with significant disabilities.  A full-time position may be shared by up to three persons with significant disabilities and their job coach.  The job coach is not a state employee within the scope of section 43A.02, subdivision 21, or 179A.03, subdivision 14, unless the job coach holds another position within the scope of section 43A.02, subdivision 21, or 179A.03, subdivision 14.  All classified supported work job postings need to link to the overview and application process for the supported work program.  The commissioner is responsible for the establishment, administration, and oversight of a program providing customized employment opportunities for individuals with significant disabilities as defined in United States Code, title 29, section 705(21).  Employees in the customized employment program are appointed to a customized employment position by matching the skills offered by eligible individuals to specific tasks and projects within agencies, rather than to an existing job classification.  When job coach services are necessary for the individuals employed through this program, the job coach is not a state employee within the scope of section 43A.02, subdivision 21, or 179A.03, subdivision 14, unless the job coach holds another position within the scope of section 43A.02, subdivision 21, or 179A.03, subdivision 14.

 

Subd. 2.  Responsibilities Customized employment.  (a) The commissioner is responsible for the administration and oversight of the supported work customized employment program, including the establishment of policies and procedures, eligibility, data collection and reporting requirements, and compliance.

 

(b) The commissioner or the commissioner's designee shall design and implement a training curriculum for the supported work customized employment program.  All executive leaders, managers, supervisors, human resources professionals, affirmative action officers, and Americans with Disabilities Act coordinators must receive annual training regarding the program.

 

(c) The commissioner or the commissioner's designee shall develop, administer, and make public a formal grievance process for individuals in the program.

 

Sec. 30.  REPEALER.

 

Minnesota Statutes 2024, sections 43A.315; 43A.317, subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 10, and 12; and 43A.318, subdivisions 1, 2, 4, and 5, are repealed.

 

ARTICLE 4

LICENSING BOARDS

 

Section 1.  Minnesota Statutes 2024, section 155A.23, is amended by adding a subdivision to read:

 

Subd. 22.  Textured hair.  "Textured hair" is hair that is coiled, curly, or wavy.

 

Sec. 2.  Minnesota Statutes 2024, section 155A.27, subdivision 2, is amended to read:

 

Subd. 2.  Qualifications.  (a) Qualifications for licensing in each classification shall be determined by the board and established by rule, and shall include educational and experiential prerequisites.

 

(b) A person applying for an individual license to practice as a cosmetologist, hair technician, manager, or instructor must:  (1) successfully complete training on the properties of the hair and all hair types and textures, including coil, curl, or wave patterns, hair strand thicknesses, and volumes of hair; and (2) have experience providing services to individuals with hair of all types and textures, including coil, curl, or wave patterns, hair strand thicknesses, and volumes of hair.


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(c)
(b) The rules shall require a demonstrated knowledge of procedures necessary to protect the health and safety of the practitioner and the consumer of cosmetology services, including but not limited to infection control, use of implements, apparatuses and other appliances, and the use of chemicals.

 

Sec. 3.  Minnesota Statutes 2024, section 155A.2705, subdivision 3, is amended to read:

 

Subd. 3.  Training.  Hair technician training must be completed at a Minnesota-licensed cosmetology school.  The training must consist of 900 hours of coursework and planned clinical instruction and experience that includes:

 

(1) the first 300 hours of the hair technology course that includes:

 

(i) student orientation;

 

(ii) preclinical instruction in the theory of sciences, including:

 

(A) muscle and bone structure and function;

 

(B) properties of the hair, a study of all hair types and textures, including coil, curl, or wave patterns, hair strand thicknesses, and volumes of hair, and scalp;

 

(C) disorders and diseases of the hair and scalp;

 

(D) chemistry as related to hair technology; and

 

(E) electricity and light related to the practice of hair technology;

 

(iii) theory and preclinical instruction on client and service safety prior to students offering services;

 

(iv) introductory service skills that are limited to the observation of an instructor demonstration, student use of mannequins, or student-to-student application of basic services related to hair technology;

 

(v) Minnesota statutes and rules pertaining to the regulation of hair technology;

 

(vi) health and safety instruction that includes:

 

(A) chemical safety;

 

(B) safety data sheets;

 

(C) personal protective equipment (PPE);

 

(D) hazardous substances; and

 

(E) laws and regulations related to health and public safety; and

 

(vii) infection control to protect the health and safety of the public and technician that includes:

 

(A) disinfectants;

 

(B) disinfectant procedures;


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(C) cleaning and disinfection;

 

(D) single use items;

 

(E) storage of tools, implements, and linens; and

 

(F) other implements and equipment used in salons and schools;

 

(2) 300 hours in hair cutting and styling that includes hair and scalp analysis; providing services to individuals who have all hair types and textures, including coil, curl, or wave patterns, hair strand thicknesses, and volumes of hair; cleaning;, scalp and hair conditioning;, hair design and shaping;, drying;, arranging;, curling;, dressing;, waving;, and nonchemical straightening; and

 

(3) 300 hours in chemical hair services that includes hair and scalp analysis; providing services to individuals with all hair types and textures, including coil, curl, or wave patterns, hair strand thicknesses, and volumes of hair;, dying;, bleaching;, reactive chemicals;, keratin;, hair coloring;, permanent straightening;, permanent waving;, predisposition and strand tests;, safety precautions;, chemical mixing;, color formulation;, and the use of dye removers.

 

Sec. 4.  Minnesota Statutes 2024, section 155A.30, subdivision 2, is amended to read:

 

Subd. 2.  Standards.  (a) Cosmetologist and hair technician course content must include textured hair training that consists of theoretical and clinical instruction on working with hair with various:

 

(1) curl, coil, and wave patterns;

 

(2) hair strand thicknesses; and

 

(3) volumes.

 

(b) The board shall by rule establish minimum standards of course content and length specific to the educational preparation prerequisite to testing and licensing as cosmetologist, esthetician, and nail technician.

 

Sec. 5.  Minnesota Statutes 2024, section 326.05, is amended to read:

 

326.05 QUALIFICATIONS OF BOARD MEMBERS.

 

Each member of the board shall must be a resident of this state at the time of and throughout the member's appointment.  Each member except the public members shall must have been engaged in the practice of the relevant profession for at least ten five years and shall have been in responsible charge of professional work requiring licensure as an architect, engineer, land surveyor, landscape architect, or geoscientist, or certification as an interior designer for at least five two years.

 

Sec. 6.  Minnesota Statutes 2024, section 326.10, subdivision 1, is amended to read:

 

Subdivision 1.  Issuance.  The board shall on application therefor on a prescribed form, and upon payment of a fee prescribed by rule of the board, issue a license or certificate as an architect, engineer, land surveyor, landscape architect, geoscientist, or certified interior designer.  A separate fee shall be paid for each profession licensed.


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(1) To any person over 25 years of age, who is of good moral character and repute, who complies with the Rules of Professional Conduct established in rules by the board and who has the experience and educational qualifications which that the board by rule may prescribe.

 

(2) To any person who holds an unexpired certificate of registration or license issued by proper authority in the District of Columbia, any state or territory of the United States, or any foreign country, in which the requirements for registration or licensure of architects, engineers, land surveyors, landscape architects, geoscientists, or certified interior designers, respectively, at the time of registration or licensure in the other jurisdiction, were equal, in the opinion of the board, substantially equivalent as established in rules by the board to those fixed by the board and by the laws of this state, and in which similar privileges are extended to the holders of certificates of registration or licensure issued by this state.  The board may require such person to submit a certificate of technical qualification from the National Council of Architectural Registration Boards in the case of an architect, from the National Council of Examiners for Engineering and Surveying in the case of an engineer, from the Council of Landscape Architectural Registration Boards in the case of a landscape architect, and from the National Council for Interior Design Qualification in the case of a certified interior designer.

 

Sec. 7.  Minnesota Statutes 2024, section 326.10, subdivision 2, is amended to read:

 

Subd. 2.  Examination.  The board, or a committee of the board, may subject any applicant for licensure or certification to such examinations as may be deemed necessary to establish qualifications.

 

In determining the qualifications of applicants, at least one member determining the qualifications must be licensed or certified in the same profession as that being evaluated.

 

An applicant for licensure or certification must provide evidence of passing the required examinations as prescribed by the board in rules.

 

Sec. 8.  Minnesota Statutes 2024, section 326.10, subdivision 10, is amended to read:

 

Subd. 10.  Temporary military license.  The board shall establish a temporary license in accordance with section 197.4552 for the practice of architecture, professional engineering, geosciences, land surveying, landscape architecture, and interior design.  The fee for the temporary license under this subdivision for the practice of architecture, professional engineering, geosciences, land surveying, landscape architecture, or interior design is $132 $0.

 

Sec. 9.  Minnesota Statutes 2024, section 326.111, subdivision 3, is amended to read:

 

Subd. 3.  Cease and desist orders.  (a) The board, or the complaint committee if authorized by the board, may issue and have served upon a person an order requiring the person to cease and desist from the unauthorized practice of architecture, engineering, land surveying, landscape architecture, geoscience, or the unauthorized use of the titles architect, professional engineer, land surveyor, landscape architect, professional geologist, professional soil scientist, certified interior designer, or violation of the statute, rule, or order.  The order shall be calculated to give reasonable notice of the rights of the person to request a hearing and shall state the reasons for the entry of the order.

 

(b) Service of the order is effective if the order is served on the person or counsel of record personally or by certified mail to the most recent address provided to the board for the person or counsel of record.  Service of the order must be by first class United States mail, including certified United States mail, or overnight express mail service with the postage prepaid and addressed to the party at the party's last known address.  Service by United States mail, including certified mail, is complete upon placing the order in the mail or otherwise delivering the order to the United States mail service.  Service by overnight express mail service is complete upon delivering the order to an authorized agent of the express mail service.


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(c) Unless otherwise agreed by the board, or the complaint committee if authorized by the board, and the person requesting the hearing, the hearing shall be held no later than 30 days after the request for the hearing is received by the board.

 

(d) The administrative law judge shall issue a report within 30 days of the close of the contested case hearing record, notwithstanding Minnesota Rules, part 1400.8100, subpart 3.  Within 30 days after receiving the report and any exceptions to it, the board shall issue a further order vacating, modifying, or making permanent the cease and desist orders as the facts require.

 

(e) If no hearing is requested within 30 days of service of the order, the order becomes final and remains in effect until it is modified or vacated by the board.

 

(f) If the person to whom a cease and desist order is issued fails to appear at the hearing after being duly notified, the person is in default and the proceeding may be determined against that person upon consideration of the cease and desist order, the allegations of which may be considered to be true.

 

Sec. 10.  Minnesota Statutes 2024, section 326.111, subdivision 4, is amended to read:

 

Subd. 4.  Actions against applicants and licensees.  (a) The board may, by order, deny, refuse to renew, suspend, temporarily suspend, or revoke the application, license, or certification of a person; censure or reprimand that person; condition or limit the person's practice; refuse to permit a person to sit for examination; or refuse to release the person's examination grades if the board finds that the order is in the public interest and the applicant, licensee, or certificate holder:

 

(1) has violated a statute, rule, or order that the board has issued or is empowered to enforce;

 

(2) has engaged in conduct or acts that are fraudulent, deceptive, or dishonest whether or not the conduct or acts relate to the practice of architecture, engineering, land surveying, landscape architecture, geoscience, or certified interior design, providing that the fraudulent, deceptive, or dishonest conduct or acts reflect adversely on the person's ability or fitness to engage in the practice of architecture, engineering, land surveying, landscape architecture, geoscience, or certified interior design;

 

(3) has engaged in conduct or acts that are negligent or otherwise in violation of the standards established by Minnesota Rules, chapters 1800 and 1805, where the conduct or acts relate to the practice of architecture, engineering, land surveying, landscape architecture, geoscience, or use of the title certified interior designer;

 

(4) has been convicted of or has pled guilty or nolo contendere to a felony, an element of which is dishonesty or fraud, whether or not the person admits guilt, or has been shown to have engaged in acts or practices tending to show that the applicant or licensee is incompetent or has engaged in conduct reflecting adversely on the person's ability or fitness to engage in the practice of architecture, engineering, land surveying, landscape architecture, geoscience, or use of the title certified interior designer;

 

(5) employed fraud or deception in obtaining a certificate, license, renewal, or reinstatement or in passing all or a portion of the examination;

 

(6) has had the person's architecture, engineering, land surveying, landscape architecture, geoscience, or interior design license, certificate, right to examine, or other similar authority revoked, suspended, canceled, limited, or not renewed for cause in any state, commonwealth, or territory of the United States, in the District of Columbia, or in any foreign country;


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(7) has had the person's right to practice before any federal, state, or other government agency revoked, suspended, canceled, limited, or not renewed;

 

(8) failed to meet any requirement for the issuance or renewal of the person's license or certificate;

 

(9) has attached the person's seal or signature to a plan, specification, report, plat, or other architectural, engineering, land surveying, landscape architectural, geoscientific, or interior design document not prepared by the person sealing or signing it or under that person's direct supervision; or

 

(10) with respect to temporary suspension orders, has committed an act, engaged in conduct, or committed practices that may, or has in the opinion of the board, or the complaint committee if authorized by the board, resulted in an immediate threat to the public.

 

(b) In lieu of or in addition to any remedy provided in paragraph (a), the board may require, as a condition of continued licensure, possession of certificate, termination of suspension, reinstatement of license or certificate, examination, or release of examination grades, that the person:

 

(1) submit to a quality review of the person's ability, skills, or quality of work, conducted in such fashion and by such persons, entity, or entities as the board may require including, but not limited to, remedial education courses; and

 

(2) complete to the satisfaction of the board such continuing professional education courses as the board may specify by rule.

 

(c) Service of the order is effective if the order is served on the licensee, certificate holder, applicant, person, or counsel of record personally or by certified mail, to the most recent address provided to the board for the licensee, certificate holder, applicant, person, or counsel of record.  must be by first class United States mail, including certified United States mail, or overnight express mail service with the postage prepaid and addressed to the party at the party's last known address.  Service by United States mail, including certified mail, is complete upon placing the order in the mail or otherwise delivering the order to the United States mail service.  Service by overnight express mail service is complete upon delivering the order to an authorized agent of the express mail service.  The order shall state the reasons for the entry of the order.

 

(d) All hearings required by this section shall be conducted in accordance with chapter 14, except with respect to temporary suspension orders, as provided for in subdivision 5, paragraph (d).

 

Sec. 11.  Minnesota Statutes 2024, section 326.111, subdivision 5, is amended to read:

 

Subd. 5.  Procedure for temporary suspension of license or certificate.  (a) When the board, or the complaint committee if authorized by the board, issues a temporary suspension order, the suspension is in effect upon service of a written order on the licensee or counsel of record, specifying the statute, rule, or order violated.  The order remains in effect until the board issues a final order in the matter after a hearing or upon agreement between the board and the licensee.

 

(b) Service of the order is effective if the order is served on the licensee or counsel of record personally or by certified mail, to the most recent address provided to the board for the licensee or counsel of record.  must be by first class United States mail, including certified United States mail, or overnight express mail service with postage prepaid and addressed to the party at the party's last known address.  Service by United States mail, including certified mail, is complete upon placing the order in the mail or otherwise delivering the order to the United States mail service.  Service by overnight express mail service is complete upon delivering the order to an authorized agent of the express mail service.


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(c) The order shall set forth the rights to a hearing contained in this subdivision and shall state the reasons for the entry of the order.

 

(d) Within ten days after service of the order, the licensee may request a hearing in writing.  The board shall hold a hearing before its own members within five working days of receipt of a request for hearing on the sole issue of whether there is a reasonable basis to continue, modify, or lift the temporary suspension.  This hearing is not subject to chapter 14.  Evidence presented by the board or the licensee shall be in affidavit form only.  The licensee or counsel of record may appear for oral argument.

 

(e) Within five working days after the hearing, the board shall issue its order and, if the suspension is continued, schedule a contested case hearing within 30 days after issuance of the order.  The administrative law judge shall issue a report within 30 days after closing of the contested case hearing record, notwithstanding the provisions of Minnesota Rules, part 1400.8100, subpart 3.  The board shall issue a final order within 30 days after receipt of that report and any exceptions to it.

 

Sec. 12.  Minnesota Statutes 2024, section 326.111, is amended by adding a subdivision to read:

 

Subd. 8.  Actions against a person with a lapsed license or certificate.  If a person's license or certificate lapses; is surrendered, withdrawn, or terminated; or otherwise becomes ineffective, the board may institute a proceeding against the person under this subdivision within two years after the license or certificate was last effective and enter a revocation or suspension order as of the last date on which the license or certificate was in effect or impose a civil penalty as provided in subdivision 6.

 

Sec. 13.  Minnesota Statutes 2024, section 326A.03, subdivision 6, is amended to read:

 

Subd. 6.  Certificate; required education and experience until July 1, 2030.  (a) On or after July 1, 2006, and before July 1, 2030, a person who has passed the examination required in this section must be granted a certificate as a certified public accountant provided:  (1) the person certifies to the board that the person has completed at least 150 semester or 225 quarter hours at a college or university that is fully accredited by a recognized accrediting agency listed with the United States Department of Education, or an equivalent accrediting association, and has completed at least one year of experience of the type specified in paragraph (b); (2) the board verifies the certifications; and (3) the person complies with requirements for initial issuance of the certificate as a certified public accountant as prescribed by the board by rule.

 

(b) An applicant for initial issuance of a certificate under this subdivision shall show that the applicant has had one year of experience.  Acceptable experience includes providing any type of service or advice involving the use of accounting, attest, compilation, management advisory, financial advisory, tax, or consulting skills, as verified by a licensee and meeting requirements prescribed by the board by rule.  Acceptable experience may be gained through employment in government, industry, academia, or public practice.  Experience as an auditor in the Office of the Legislative Auditor or State Auditor, as verified by a licensee, shall be acceptable experience.

 

(c) This subdivision expires July 1, 2030.

 

Sec. 14.  Minnesota Statutes 2024, section 326A.03, is amended by adding a subdivision to read:

 

Subd. 6a.  Certificate; required education and experience after June 30, 2030.  (a) On and after July 1, 2030, or during the transitional period as provided in subdivision 6b, the board must grant a certificate as a certified public accountant to a person who has not previously been certified and who has passed the examination required in this section if:


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(1) the person certifies to the board that the person has:

 

(i) completed a master's degree at a college or university that is fully accredited by a recognized accrediting agency listed with the United States Department of Education and has completed at least one year of acceptable experience as described in paragraph (b); or

 

(ii) earned a bachelor's or graduate degree from a college or university that is fully accredited by a recognized accrediting agency listed with the United States Department of Education and has completed at least two years of acceptable experience as described in paragraph (b);

 

(2) the board verifies the certification under clause (1); and

 

(3) the person complies with requirements as prescribed by the board for an initial certificate.

 

(b) Acceptable experience includes providing any type of service or advice that involves accounting, attestation, compilation, management advisement, financial advisement, tax, or consulting, as verified by a licensee and meeting requirements prescribed by the board by rule.  Acceptable experience may be gained through employment in government, industry, academia, or public practice.  Experience as an auditor in the Office of the Legislative Auditor or the Office of the State Auditor, as verified by a licensee, is acceptable experience.

 

Sec. 15.  Minnesota Statutes 2024, section 326A.03, is amended by adding a subdivision to read:

 

Subd. 6b.  Transitional period.  (a) Until July 1, 2030, a person must be granted an initial certificate as a certified public accountant if the person meets either:

 

(1) all requirements under subdivision 6; or

 

(2) all requirements under subdivision 6a.

 

(b) This subdivision expires July 1, 2030.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.

 

Sec. 16.  Minnesota Statutes 2024, section 326A.14, is amended to read:

 

326A.14 SUBSTANTIAL EQUIVALENCY MOBILITY.

 

Subdivision 1.  Requirements.  (a) An individual whose principal place of business is not in this state and who holds a valid license in good standing as a certified public accountant from any state which, upon verification, is in substantial equivalence with the certified public accountant licensure requirements of section 326A.03, subdivisions 3, 4, and 6, shall be presumed to have qualifications substantially equivalent to this state's requirements and shall have all the privileges of licensees of this state without the need to obtain a license., if the person:

 

(1) holds a valid certificate, license, or permit to practice as a certified public accountant that was issued in another state and is in good standing to practice as a certified public accountant in that state;

 

(2) has a bachelor's degree or higher from an accredited postsecondary school with an accounting concentration or equivalent as determined by the board by rule; and

 

(3) has passed the Uniform CPA Examination.


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(b)
Notwithstanding any contrary provision of this chapter, an individual who offers or renders professional services, whether in person, by mail, telephone, or electronic means, under this paragraph (a):  (1) shall be granted practice privileges in this state; (2) is subject to the requirements in paragraph (c); and (3) is not required to provide any notice or other submission.

 

(b) An individual whose principal place of business is not in this state and who holds a valid license in good standing as a certified public accountant from any state whose certified public accountant licensure qualifications, upon verification, are not substantially equivalent with the licensure requirements of section 326A.03, subdivisions 3, 4, and 6, shall be presumed to have qualifications substantially equivalent to this state's requirements and shall have all the privileges of licensees of this state without the need to obtain a license if the individual obtains verification, as specified in board rule, that the individual's qualifications are substantially equivalent to the licensure requirements of section 326A.03, subdivisions 3, 4, and 6.  For purposes of this paragraph, any individual who passed the Uniform CPA Examination and holds a valid license issued by any other state prior to January 1, 2009, is exempt from the education requirement in section 326A.03, subdivision 6, paragraph (a), provided the individual meets the education requirement in section 326A.03, subdivision 3.  Notwithstanding any contrary provision of this chapter, an individual who offers or renders professional services, whether in person, by mail, telephone, or electronic means, under this paragraph:  (1) shall, after the verification specified by adopted rules, be granted practice privileges in this state; (2) is subject to the requirements in paragraph (c); and (3) is not required to provide any notice or other submission.

 

(c) An individual licensee of another state exercising the privilege afforded under this section and the firm which employs that licensee are deemed to have consented, as a condition of the grant of this privilege:

 

(1) to the personal and subject matter jurisdiction and disciplinary authority of the board;

 

(2) to comply with this chapter and the board's rules;

 

(3) to the appointment of the state board that issued the license as the licensee's agent upon whom process may be served in any action or proceeding by this board against the licensee; and

 

(4) to cease offering or rendering professional services in this state individually and on behalf of a firm in the event the license issued by the state of the individual's principal place of business is no longer valid or in good standing.

 

(d) An individual who has been granted practice privileges under this section who performs attest services as defined in section 326A.01, subdivision 2, clause (1), (4), or (5), for any entity with its headquarters in this state, may only do so through a firm which has obtained a permit under section 326A.05.

 

Subd. 2.  Use of title in another state.  A licensee of this state offering or rendering services or using the CPA title in another state is subject to the same disciplinary action in this state for which the licensee would be subject to discipline for an act committed in the other state.  The board shall investigate any complaint made by the board of accountancy of another state.

 

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

 

Sec. 17.  REPEALER.

 

Minnesota Rules, part 1105.7900, item D, is repealed.


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ARTICLE 5

BUSINESS FILING FRAUD AND DECEPTIVE MAILINGS

 

Section 1.  [5.60] LATE RENEWAL PENALTY.

 

Subdivision 1.  Late penalty.  The secretary of state may require a person to pay a late penalty of up to $40, as business needs require, when filing for renewal or reinstatement of a business entity that the secretary of state has dissolved, terminated, or revoked due to failure to file an annual renewal, or a business entity for which the secretary of state has canceled a certificate of authority.  The secretary of state must deposit all late penalty revenue in the account created under subdivision 2.  The late penalty is in addition to any other fee or assessment provided by law.

 

Subd. 2.  Account; appropriation.  The secretary of state fraud prevention and data security account is created in the special revenue fund.  Money in the account is appropriated to the secretary of state to:

 

(1) fulfill statutory and constitutional duties regarding fraud prevention and data privacy and security, including but not limited to cyber security and the Minnesota Business Filing Fraud Prevention Act under sections 300.70 to 300.78;

 

(2) ensure the accuracy and completeness of documents that are permitted or required under law to be filed with the secretary of state; and

 

(3) enhance the secretary of state's information and telecommunications technology systems and services.

 

Subd. 3.  Annual report.  By February 15 each year, the secretary of state must submit a report identifying the amount of revenue collected and outcomes achieved under this section to the chairs and ranking minority members of the legislative committees with jurisdiction over state government finance and policy.

 

EFFECTIVE DATE.  This section is effective July 1, 2025, and applies to renewal or reinstatement applications submitted on or after that date.

 

Sec. 2.  Minnesota Statutes 2024, section 13.485, subdivision 1, is amended to read:

 

Subdivision 1.  Scope.  The sections referred to in subdivisions 3 to 6 7 are codified outside this chapter.  Those sections classify corporation data as other than public, place restrictions on access to government data, or involve data sharing.

 

Sec. 3.  Minnesota Statutes 2024, section 13.485, is amended by adding a subdivision to read:

 

Subd. 7.  Business fraud investigations.  Government data related to investigations under sections 300.70 to 300.78 are governed by section 300.78.

 

Sec. 4.  [300.70] CITATION AND DEFINITIONS.

 

Subdivision 1.  Citation.  Sections 300.70 to 300.78 may be cited as the "Minnesota Business Filing Fraud Prevention Act."

 

Subd. 2.  Definitions.  (a) For purposes of sections 300.70 to 300.78, the following terms have the meanings given.

 

(b) "Complainant" means a person who (1) delivers a declaration of wrongful filing, and (2) has a connection to the allegedly wrongful filing or the related business.


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(c) "Filer" means the person who has allegedly made a wrongful filing.

 

(d) "Office" means the Office of the Secretary of State.

 

Sec. 5.  [300.71] DECLARATION OF WRONGFUL FILING.

 

Subdivision 1.  Form and contents of declaration.  (a) A complainant may deliver a declaration of wrongful filing to the office if the complainant believes that a document filed under chapters 301 to 323A:

 

(1) was not authorized to be filed; and

 

(2) was filed with the intent to:  (i) modify the ownership, registered agent, business address, contact information, governance, or other information of a business on record; or (ii) register a business using another person's name, address, or identity.

 

(b) A declaration of wrongful filing must include:

 

(1) the file number of the allegedly wrongful filing;

 

(2) the complainant's name, mailing address, and email address;

 

(3) whether the complainant is employed by or has an ownership interest in the business that is the subject of the filing;

 

(4) any information or evidence supporting the complainant's allegations under this section;

 

(5) a statement verifying the complainant believes in good faith that the facts stated in the declaration are true; and

 

(6) any other information the office deems necessary.

 

(c) The office must provide a form for declarations filed under this section.  A complainant must use the provided form when submitting a declaration of wrongful filing.

 

(d) A false material statement of fact in a declaration of wrongful filing or any other document submitted under sections 300.70 to 300.78 is a violation of section 609.48.

 

Subd. 2.  Review of declaration.  (a) The office must promptly accept or reject a declaration of wrongful filing.

 

(b) The office may reject a declaration of wrongful filing that is incomplete or does not use the provided form or if the office reasonably believes it was delivered with the intent to harass or defraud the filer.  The office may reject a declaration of wrongful filing if the office has already issued a final order on the filing identified in the declaration.

 

Subd. 3.  Nonexclusive remedy.  The remedy in sections 300.70 to 300.78 is not exclusive.  An aggrieved party may seek district court action regardless of whether the individual has initiated or completed the procedure described in these sections.

 

Sec. 6.  [300.72] NOTICE.

 

(a) When the office accepts a declaration of wrongful filing, the office must provide notice of the declaration to the complainant and the filer.  The notice must describe the allegations made in the declaration and the process used to resolve the allegations.  The notice must prominently state the response timeline in section 300.73 and the consequences if the filer does not respond.  The notice must prominently state that a false statement of material fact in any documents submitted under sections 300.70 to 300.78 is a violation of section 609.48.


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(b) The office must send the notice by first class mail, postage prepaid, to:

 

(1) the complainant at the mailing address provided in the declaration; and

 

(2) the filer at:

 

(i) the most recent registered business address associated with the filing named in the declaration; or

 

(ii) if a mailing address for the filer cannot be identified, the notice may be served on the filer as provided under section 5.25, subdivision 6.

 

(c) Notice is deemed received by the complainant and the filer upon mailing.

 

(d) If the notice to the filer is returned as undeliverable, the office may deem the filing fraudulent and immediately issue a final order as provided under section 300.76, notwithstanding the time period under section 300.73.

 

Sec. 7.  [300.73] RESPONSE.

 

(a) After notice is received, the filer must respond in writing to the allegations in the declaration.  The response must be received by the office within 21 calendar days of receipt of the notice.

 

(b) The filer's response under this section must include any information refuting the allegations contained in the complainant's declaration.

 

Sec. 8.  [300.74] PROCEDURE WHEN NO RESPONSE RECEIVED.

 

If the filer does not respond within the time period under section 300.73, the office must deem the filing fraudulent and issue a final order as provided under section 300.76.

 

Sec. 9.  [300.75] PROCEDURE WHEN RESPONSE RECEIVED.

 

Subdivision 1.  Preliminary determination.  (a) If the filer responds within the period under section 300.73, the office must further investigate the allegations in the declaration and information in the response and make a preliminary determination regarding whether the filing named in the declaration is fraudulent.

 

(b) The office may request additional information from the complainant and the filer if necessary to make the preliminary determination.

 

Subd. 2.  Notice of preliminary determination.  The office must send notice of the preliminary determination to the complainant and the filer in the manner described under section 300.72.  Notice is deemed received in the manner described under section 300.72.

 

Subd. 3.  Response.  After notice is received, the nonprevailing party must respond to the preliminary determination within ten calendar days with additional information or evidence in support of the nonprevailing party's position.  The prevailing party may send additional information or evidence within the same time period.  The response must be received by the office within the time period provided under this subdivision.

 

Subd. 4.  Procedure if no second response is received.  If the nonprevailing party does not respond as required under subdivision 3, the preliminary determination becomes final and the office must issue a final order under section 300.76.


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Subd. 5.
  Procedure if second response is received.  If the nonprevailing party responds as required under subdivision 3, the office must consider the additional information provided, make a final determination regarding whether the filing named in the declaration is fraudulent, and issue a final order under section 300.76.

 

Subd. 6.  Factors.  When making a preliminary or final determination under this section, the office may consider various factors, including but not limited to:

 

(1) whether the office has previously received declarations of wrongful filing or issued final orders relating to the business, the filer, or the complainant;

 

(2) the previous filing history relating to the business, the filer, or the complainant;

 

(3) whether the filer or complainant failed to respond to a request for additional information; and

 

(4) whether the office is able to independently verify the information provided by the filer or complainant using publicly available information.

 

Sec. 10.  [300.76] FINAL ORDER.

 

Subdivision 1.  Filings deemed fraudulent.  (a) If the office deems a filing fraudulent under section 300.74 or 300.75, the office must issue a final order under this subdivision.  The final order must provide the office's rationale for deeming the filing fraudulent.

 

(b) When a filing is deemed fraudulent pursuant to a final order under this subdivision, the filing must be treated for legal purposes as if the filing never existed.  In the case of a business registered using a Minnesota resident's name, address, or identity without the resident's authorization, the business is deemed dissolved.

 

(c) When a filing is deemed fraudulent pursuant to a final order, the office must:

 

(1) mark the unauthorized filing or the business record as unauthorized or fraudulent;

 

(2) redact names and addresses that were used without authorization; and

 

(3) retain a copy of the final order.

 

(d) In addition to the actions in paragraph (c), the office may:

 

(1) disable additional filing functionality on the business entity's record; or

 

(2) take other action the office deems necessary to prevent further unauthorized filings, protect private information, or prevent misuse of unauthorized information.

 

Subd. 2.  Filings deemed not fraudulent or insufficient evidence.  If the office determines that a filing is not fraudulent or that insufficient information is available to make a determination, the office must issue a final order stating that the office is not removing the filing from the database.  The final order must provide the office's rationale for determining that the filing is not fraudulent or that insufficient information is available to make a determination.


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Sec. 11.  [300.77] JUDICIAL REVIEW.

 

(a) Any party who is aggrieved by a final order under section 300.76 may appeal the order to the district court of the Minnesota county where the business that is the subject of the final order is registered or was registered before the business's dissolution or, if the business is not registered in Minnesota, to the district court of Ramsey County.  The aggrieved party may also appeal the final order as part of any district court action between the filer and complainant where the filing at issue is relevant to the issues in the case.

 

(b) The aggrieved party must serve a written copy of a notice of appeal upon the office and any adverse party of record within 30 calendar days after the date the final order was issued and must also file the original notice and proof of service with the court administrator of the district court.  Service may be made in person or by mail.  Service by mail is complete upon mailing.  The court administrator is prohibited from requiring a filing fee for appeals taken pursuant to this section.

 

(c) The office may elect to become a party to the proceedings in the district court.

 

(d) The court may order that the office furnish the court and all parties to the proceedings with a copy of the decision, the filing that is the subject of the decision, and any materials or information submitted to the office.  Any materials provided under this section that are filed with the court must be done so under restricted access unless the court orders otherwise.

 

(e) A party may obtain a hearing at a special term of the district court by serving a written notice of the hearing's time and place at least ten days before the date of the hearing.

 

(f) A party aggrieved by the order of the district court may appeal the order as in other civil cases.  Costs or disbursements must not be taxed against a party.  A filing fee or bond must not be required of a party.

 

Sec. 12.  [300.78] DATA PRACTICES.

 

Subdivision 1.  Definitions.  For purposes of this section, "nonpublic data" has the meaning given in section 13.02, subdivision 9, and "private data on individuals" has the meaning given in section 13.02, subdivision 12.

 

Subd. 2.  Data classification.  Data submitted by a complainant or filer under sections 300.70 to 300.78 is classified as nonpublic data or private data on individuals.  A final order under section 300.76 is public data, subject to the following:  the complainant or filer's personal contact information is classified as private data on individuals.  The unredacted version of a filing deemed fraudulent pursuant to a final order under section 300.76, subdivision 1, is classified as nonpublic data or private data on individuals.  The version of the filing that has been redacted pursuant to section 300.76, subdivision 1, paragraph (c), is classified as public data.

 

Subd. 3.  Dissemination permitted.  Notwithstanding subdivision 2, the office may disseminate data of any classification collected, created, or maintained under sections 300.70 to 300.78:

 

(1) to the attorney general to aid the office in the investigation and review of a filing that is the subject of a declaration of wrongful filing;

 

(2) to a person or agency if the office determines that access to the data aids a criminal or civil investigation; or

 

(3) if required or authorized by a court order or other state or federal law.


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Sec. 13.  [300.79] PROHIBITION ON DECEPTIVE BUSINESS MAILINGS.

 

Subdivision 1.  Definition.  For purposes of this section, "solicitation" means a communication that is sent by a nongovernment third party to a business and that purports to:

 

(1) notify the business of an operating requirement, including but not limited to filing documents with or retrieving documents from the Office of the Secretary of State; or

 

(2) offer a service that relates to filing documents with, producing documents for, or reporting information to the Office of the Secretary of State.

 

Subd. 2.  Design and content requirements.  (a) A solicitation must:

 

(1) include a clear statement indicating that the solicitation is an advertisement and is not from a government agency.  The statement must be placed at the top of a physical document or the beginning of an electronic communication and must be in at least 24-point font.  All other text in the document must be smaller than the statement required by this clause;

 

(2) provide information indicating where an individual is able to directly file documents with the secretary of state or retrieve copies of public records;

 

(3) disclose the name and physical address of the company sending the solicitation.  The physical address must not be a post office box; and

 

(4) for a mailed solicitation, prominently display in capital letters on the envelope or outer wrapper the words "THIS IS NOT A GOVERNMENT DOCUMENT."

 

(b) The overall design and language of a solicitation must not:

 

(1) create the impression that the solicitation is an official government notice or document;

 

(2) incorporate the Minnesota state seal or other logo or branding of the state or any state agency; or

 

(3) indicate or imply a legal duty to act on the solicitation or a penalty for failure to act on the solicitation.

 

Subd. 3.  Penalties.  (a) A person who sends a solicitation that does not comply with the requirements of this section is guilty of a misdemeanor.

 

(b) A violation of this section is a violation of sections 325D.43 to 325D.48.

 

Sec. 14.  Minnesota Statutes 2024, section 609.48, subdivision 1, is amended to read:

 

Subdivision 1.  Acts constituting.  Whoever makes a false material statement not believing it to be true in any of the following cases is guilty of perjury and may be sentenced as provided in subdivision 4:

 

(1) in or for an action, hearing or proceeding of any kind in which the statement is required or authorized by law to be made under oath or affirmation;

 

(2) in any writing which is required or authorized by law to be under oath or affirmation;

 

(3) in any writing made according to section 358.115;


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(4) in any writing made according to section 358.116; or

 

(5) in any writing made according to sections 300.70 to 300.78; or

 

(6) in any other case in which the penalties for perjury are imposed by law and no specific sentence is otherwise provided.

 

Sec. 15.  RULEMAKING.

 

The secretary of state may adopt rules to carry out the provisions of this article.  Notwithstanding Minnesota Statutes, section 14.125, no time limit applies to the authority granted under this section.

 

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

 

Sec. 16.  EFFECTIVE DATE.

 

Sections 2 to 12 and 14 are effective the day following final enactment and apply to filings made on or after January 1, 2026.

 

ARTICLE 6

LOCAL GOVERNMENT POLICY

 

Section 1.  Minnesota Statutes 2024, section 13D.02, subdivision 1, is amended to read:

 

Subdivision 1.  Conditions.  (a) A meeting governed by section 13D.01, subdivisions 1, 2, 4, and 5, and this section may be conducted by interactive technology so long as:

 

(1) all members of the body participating in the meeting, wherever their physical location, can hear and see one another and can hear and see all discussion and testimony presented at any location at which at least one member is present;

 

(2) members of the public present at the regular meeting location of the body can hear and see all discussion and testimony and all votes of members of the body;

 

(3) at least one member of the body is physically present at the regular meeting location; and

 

(4) all votes are conducted by roll call so each member's vote on each issue can be identified and recorded; and.

 

(5) each location at which a member of the body is present is open and accessible to the public.

 

(b) A meeting satisfies the requirements of paragraph (a), although a member of the public body participates from a location that is not open or accessible to the public, if the member has not participated more than three times in a calendar year from a location that is not open or accessible to the public, and:

 

(1) the member is serving in the military and is at a required drill, deployed, or on active duty; or

 

(2) the member has been advised by a health care professional against being in a public place for personal or family medical reasons.


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Sec. 2.  Minnesota Statutes 2024, section 13D.02, subdivision 4, is amended to read:

 

Subd. 4.  Notice of regular and all member meeting locations.  If interactive technology is used to conduct a regular, special, or emergency meeting, the public body shall provide notice of the regular meeting location and notice of any location where a member of the public body will be participating the fact that members may participate in the meeting by interactive technology, except for the locations of members participating pursuant to subdivision 1, paragraph (b).  The timing and method of providing notice of the regular meeting location must be as described in section 13D.04.

 

Sec. 3.  Minnesota Statutes 2024, section 117.036, subdivision 2, is amended to read:

 

Subd. 2.  Appraisal.  (a) Before commencing an eminent domain proceeding under this chapter for an acquisition greater than $25,000, the acquiring authority must obtain at least one appraisal for the property proposed to be acquired.  In making the appraisal, the appraiser must confer with one or more of the owners of the property, if reasonably possible.  For acquisitions less than $25,000, the acquiring authority may obtain a minimum damage acquisition report in lieu of an appraisal.  In making the minimum damage acquisition report, the qualified person with appraisal knowledge must confer with one or more of the owners of the property, if reasonably possible.  Notwithstanding section 13.44, the acquiring authority must provide the owner with a copy of (1) each appraisal for property acquisitions over $25,000, or (2) the minimum damage acquisition report for properties under $25,000, the acquiring authority has obtained for the property at the time an offer is made, but no later than 60 days before presenting a petition under section 117.055.  The acquiring authority must also inform the owner of the right to obtain an appraisal under this section.  Upon request, the acquiring authority must make available to the owner all appraisals for properties over $25,000, or the minimum damage acquisition report for properties under $25,000.  If the acquiring authority is considering both a full and partial taking of the property, the acquiring authority shall obtain and provide the owner with appraisals for properties over $25,000 for both types of takings, or minimum damage acquisition reports for properties under $25,000.

 

(b) The owner may obtain an appraisal by a qualified appraiser of the property proposed to be acquired.  The owner is entitled to reimbursement for the reasonable costs of the appraisal from the acquiring authority up to a maximum of $1,500 $3,000 for single family and two-family residential property and minimum damage acquisitions and $5,000 $10,000 for other types of property, provided that the owner submits to the acquiring authority the information necessary for reimbursement, including a copy of the owner's appraisal, at least five days before a condemnation commissioners' hearing.  For purposes of this subdivision, a "minimum damage acquisition" means an interest in property that a qualified person having an understanding of the local real estate market indicates can be acquired for $25,000 or less.

 

(c) The acquiring authority must pay the reimbursement to the owner within 30 days after receiving a copy of the appraisal and the reimbursement information.  Upon agreement between the acquiring authority and the owner, the acquiring authority may pay the reimbursement directly to the appraiser.

 

Sec. 4.  Minnesota Statutes 2024, section 222.37, subdivision 1, is amended to read:

 

Subdivision 1.  Use requirements.  (a) Any water power, telegraph, telephone, pneumatic tube, pipeline, community antenna television, cable communications or electric light, heat, power company, entity that receives a route permit under chapter 216E for a high-voltage transmission line necessary to interconnect an electric power generating facility with transmission lines or associated facilities of an entity that directly, or through its members or agents, provides retail electric service in the state, or fire department may use public roads for the purpose of constructing, using, operating, and maintaining lines, subways, canals, conduits, transmission lines, hydrants, or dry hydrants, for their business, but such lines shall be so located as in no way to interfere with the safety and convenience of ordinary travel along or over the same; and, in the construction and maintenance of such line, subway, canal, conduit, transmission lines, hydrants, or dry hydrants, the entity shall be subject to all reasonable


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regulations imposed by the governing body of any county, town or city in which such public road may be.  If the governing body does not require the entity to obtain a permit, an entity shall notify the governing body of any county, town, or city having jurisdiction over a public road prior to the construction or major repair, involving extensive excavation on the road right-of-way, of the entity's equipment along, over, or under the public road, unless the governing body waives the notice requirement.  A waiver of the notice requirement must be renewed on an annual basis.  For emergency repair an entity shall notify the governing body as soon as practical after the repair is made.  Nothing herein shall be construed to grant to any person any rights for the maintenance of a telegraph, telephone, pneumatic tube, community antenna television system, cable communications system, or light, heat, power system, electric power generating system, high-voltage transmission line, or hydrant system within the corporate limits of any city until such person shall have obtained the right to maintain such system within such city or for a period beyond that for which the right to operate such system is granted by such city.

 

(b) Any public water district, sewer district, or combination water and sewer district established under chapter 116A may install water and sewer lines and all other ancillary infrastructure within a public township, county, or state road right-of-way in accordance with paragraph (a).  When installing water and sewer lines within a trunk highway right-of-way under this paragraph, a district must comply with the requirements under section 161.45, and Minnesota Rules, parts 8810.3100 to 8810.3600.

 

Sec. 5.  Minnesota Statutes 2024, section 331A.10, subdivision 2, is amended to read:

 

Subd. 2.  Discontinuance.  (a) When a newspaper ceases to be published before the publication of a public notice is commenced, or when commenced ceases before the publication is completed, the following procedures apply:  (1) when the publication is required by court order, the order for publication, when one is required in the first instance, may be amended by order of the court or judge, to designate another newspaper, as may be necessary.  If no order is required in the first instance,; or (2) when the publication is required by law, rule, or ordinance, the publication may be made or completed in any other qualified newspaper.

 

(b) If no qualified newspaper is available for publication of a public notice after the discontinuance of a newspaper, the political subdivision must post the information required to be published on the political subdivision's website until another qualified newspaper is identified, which shall then be designated.  During the time when no qualified newspaper is available, the political subdivision must also post the public notice on the Minnesota Newspaper Association's statewide public notice website, at no additional cost to the political subdivision.

 

(c) Any time during which the notice is published in the first a newspaper prior to the newspaper's discontinuance shall be calculated as a part of the time required for the publication, proof of which may be made by affidavit of any person acquainted with the facts.

 

Sec. 6.  Minnesota Statutes 2024, section 367.36, subdivision 1, is amended to read:

 

Subdivision 1.  Transition; audit.  (a) In a town in which option D is adopted, the incumbent treasurer shall continue in office until the expiration of the term.  Thereafter, or at any time a vacancy other than a temporary vacancy under section 367.03 occurs in the position, the duties of the treasurer prescribed by law shall be performed by the clerk who shall be referred to as the clerk-treasurer.  If option D is adopted at an election in which the treasurer is also elected, the election of the treasurer's position is void.

 

(b) If the offices of clerk and treasurer are combined and the town's annual revenue for all governmental and enterprise funds combined is more than the amount in paragraph (c), the town board shall provide for an annual audit of the town's financial affairs by the state auditor or a public accountant in accordance with minimum audit procedures prescribed by the state auditor.  If the offices of clerk and treasurer are combined and the town's annual revenue for all governmental and enterprise funds combined is the amount in paragraph (c) or less, the town board shall provide for an audit of the town's financial affairs by the state auditor or a public accountant in accordance with


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minimum audit procedures prescribed by the state auditor at least once every five years, which audit shall be for a one-year period to be determined at random by the person conducting the audit.  Upon completion of an audit by a public accountant, the public accountant shall forward a copy of the audit to the state auditor.  For purposes of this subdivision, "public accountant" means a certified public accountant or a certified public accounting firm licensed in accordance with chapter 326A.

 

(c) For the purposes of paragraph (b), the amount in 2004 2025 is $150,000 $1,000,000, and in 2005 and after, $150,000 is adjusted annually thereafter for inflation using the annual implicit price deflator for state and local expenditures as published by the United States Department of Commerce.

 

EFFECTIVE DATE.  This section is effective August 1, 2025, and applies to audits performed for 2026 and thereafter.

 

Sec. 7.  [383A.151] RAMSEY COUNTY ECONOMIC DEVELOPMENT AUTHORITY.

 

Subdivision 1.  Creation.  (a) There is created in the county of Ramsey a public body, corporate and politic, known as the Ramsey County Economic Development Authority, that has the powers contained in sections 469.090 to 469.108, except for sections 469.101, subdivision 19, 469.102, and 469.107; the powers of a housing and redevelopment authority under sections 469.001 to 469.047; and the powers of a city under sections 469.124 to 469.133.  For purposes of applying chapter 469 to the county of Ramsey, the county has all the powers and duties of a city; the county board has all the powers and duties of a governing body; the chair of the county board has all the powers and duties of a mayor; and, with respect to the exercise of the powers under section 469.008, the area of operation includes the area within the territorial boundaries of the county.

 

(b) Section 469.1082 does not apply to the county of Ramsey, except for section 469.1082, subdivision 5.

 

Subd. 2.  Commissioners.  Notwithstanding the provisions of chapter 469 or other law to the contrary, the Ramsey County Economic Development Authority consists of seven commissioners.  The county board must appoint the commissioners and fill vacancies in the office of any commissioner.  Pursuant to Ramsey County Resolution No. 94-357, dated July 26, 1994, the Ramsey County Board of Commissioners also constitutes the Ramsey County Housing and Redevelopment Authority.  The board may, by resolution, appoint the sitting commissioners of the Ramsey County Housing and Redevelopment Authority as commissioners of the Ramsey County Economic Development Authority, the terms of each commissioner corresponding accordingly.

 

EFFECTIVE DATE.  This section is effective the day after the governing body of Ramsey County and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

 

Sec. 8.  [383A.152] RAMSEY COUNTY HOUSING AND REDEVELOPMENT AUTHORITY; ADDITIONAL POWERS.

 

The Ramsey County Housing and Redevelopment Authority, established pursuant to Ramsey County Resolution No. 93-155, dated March 9, 1993, shall have the powers and duties of the Ramsey County Economic Development Authority under section 383A.151 and shall retain all the powers of a housing and redevelopment authority under sections 469.001 to 469.047.  For purposes of applying chapter 469 to the county of Ramsey, the county has all the powers and duties of a city; the county board has all the powers and duties of a governing body; the chair of the county has all the powers and duties of a mayor; and, with respect to the exercise of the powers under section 469.008, the area of operation includes the area within the territorial boundaries of the county.

 

EFFECTIVE DATE.  This section is effective the day after the governing body of Ramsey County and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3.


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Sec. 9.  Minnesota Statutes 2024, section 383C.035, is amended to read:

 

383C.035 UNCLASSIFIED CIVIL SERVICE.

 

(a) The officers and employees of the county and of any agency, board, or commission, supported in whole or in part by taxation upon the taxable property of the county or appointed by the judges of the district court for the county, are divided into the unclassified and classified service.

 

(b) The unclassified service comprises:

 

(1) all officers elected by popular vote or persons appointed to fill vacancies in such offices;

 

(2) superintendent or principal administrative officer or comptroller of any separate department of county government which is now or hereafter created pursuant to law, who is directly responsible to the board of county commissioners or any other board or commission, as well as the county agricultural agents reporting to the county extension committee;

 

(3) members of nonpaid board, or commissioners appointed by the board of county commissioners or acting in an advisory capacity;

 

(4) assistant county attorneys or special investigators in the employ of the county attorney.  For purposes of this section, special investigators are defined as all nonclerical positions in the employ of the county attorney;

 

(5) all common labor temporarily employed on an hourly basis;

 

(6) not more than a total of nine full-time equivalent clerical employees serving the county board and administrator;

 

(7) a legislative lobbyist/grant coordinator appointed by the county board to act as legislative liaison with the St. Louis County legislative delegation and pursue legislative concerns and grant opportunities for the county, and the clerk for that position;

 

(8) any department head and deputy director designated by the county board;

 

(9) three administrative assistants in the county administrator's office;

 

(10) the county administrator and two deputy administrators; and

 

(11) all court bailiffs.

 

(c) The classified service includes all other positions now existing and hereinafter created in the service of the county or any board or commission, agency, or offices of the county.

 

EFFECTIVE DATE.  This section is effective the day after the St. Louis County Board of Commissioners and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

 

Sec. 10.  Minnesota Statutes 2024, section 412.02, subdivision 3, is amended to read:

 

Subd. 3.  Clerk, treasurer combined; audit standards.  (a) In cities operating under the standard plan of government the council may by ordinance adopted at least 60 days before the next regular city election combine the offices of clerk and treasurer in the office of clerk-treasurer, but such an ordinance shall not be effective until the


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expiration of the term of the incumbent treasurer or when an earlier vacancy occurs.  After the effective date of the ordinance, the duties of the treasurer and deputy treasurer as prescribed by this chapter shall be performed by the clerk-treasurer or a duly appointed deputy.  The offices of clerk and treasurer may be reestablished by ordinance.

 

(b) If the offices of clerk and treasurer are combined as provided by this section and the city's annual revenue for all governmental and enterprise funds combined is more than the amount in paragraph (c), the council shall provide for an annual audit of the city's financial affairs by the state auditor or a public accountant in accordance with minimum auditing procedures prescribed by the state auditor.  If the offices of clerk and treasurer are combined and the city's annual revenue for all governmental and enterprise funds combined is the amount in paragraph (c), or less, the council shall provide for an audit of the city's financial affairs by the state auditor or a public accountant in accordance with minimum audit procedures prescribed by the state auditor at least once every five years, which audit shall be for a one-year period to be determined at random by the person conducting the audit.

 

(c) For the purposes of paragraph (b), the amount in 2004 2025 is $150,000 $1,000,000, and in 2005 and after, $150,000 is adjusted annually thereafter for inflation using the annual implicit price deflator for state and local expenditures as published by the United States Department of Commerce.

 

EFFECTIVE DATE.  This section is effective August 1, 2025, and applies to audits performed for 2026 and thereafter.

 

Sec. 11.  Minnesota Statutes 2024, section 412.341, subdivision 1, is amended to read:

 

Subdivision 1.  Membership.  (a) The commission shall consist of three, five, or seven members appointed by the council.  No more than one member may be chosen from the council membership for a commission with three members, and no more than two members may be chosen from the council membership for a commission with five or seven members.  Except for the terms of members appointed to the initial commission as provided in paragraph (b), each member shall serve for a term of three years and until a successor is appointed and qualified except that of the members initially appointed in any city, one shall serve for a term of one year, one for a term of two years, and one for a term of three years.  Residence shall not be a qualification for membership on the commission unless the council so provides.  A vacancy shall be filled by the council for the unexpired term.

 

(b) The members appointed to the initial commission after its establishment under section 412.331 shall serve the following terms:

 

(1) if the initial commission consists of three members, one member shall serve for a term of one year, one member for a term of two years, and one member for a term of three years;

 

(2) if the initial commission consists of five members, one member shall serve for a term of one year, two members for a term of two years, and two members for a term of three years; or

 

(3) if the initial commission consists of seven members, two members shall serve for a term of one year, two members for a term of two years, and three members for a term of three years.

 

Sec. 12.  Minnesota Statutes 2024, section 412.341, is amended by adding a subdivision to read:

 

Subd. 3.  Change in membership; procedures.  (a) The number of commission members may be increased or decreased by ordinance within the permitted number of commissioner members as provided in subdivision 1, paragraph (a).  The ordinance changing the number of commission members must include a provision for maintaining staggered terms for commission members, provided that if the number of members is reduced, the reduction must be effected in such a manner that all incumbent members are permitted to serve their full terms.  An ordinance adopted under this subdivision must not be effective until at least 45 days after its adoption.


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(b) An ordinance reducing the size of the commission shall not take effect and the question of whether to reduce the size of the commission must be placed on the ballot at the next general or special election if:  (1) within 45 days of the ordinance's adoption by the city council, a petition is filed with the city clerk requesting that a referendum be held on reducing the size of the commission; and (2) the petition is signed by a number of eligible voters equal to at least 15 percent of the number of electors voting at the most recent general election.  The ballot question shall be substantially stated as follows:

 

"Shall the size of the public utilities commission be reduced from.......members to.......members?"

 

The question shall be followed by the words "Yes" and "No" with an appropriate oval or similar target shape before each in which a voter may record a choice.  If a majority of the votes cast on the question are in favor of reducing the size of the commission, the ordinance shall be considered approved and shall be effective immediately.  If the majority of votes cast on the question are against reducing the size of the commission, the ordinance shall not take effect.

 

Sec. 13.  Minnesota Statutes 2024, section 412.591, subdivision 3, is amended to read:

 

Subd. 3.  Audit standards if combined.  (a) If the offices of clerk and treasurer are combined as provided by this section, and the city's annual revenue for all governmental and enterprise funds combined is more than the amount in paragraph (b), the council shall provide for an annual audit of the city's financial affairs by the state auditor or a certified public accountant in accordance with minimum procedures prescribed by the state auditor.  If the offices of clerk and treasurer are combined and the city's annual revenue for all governmental and enterprise funds combined is the amount in paragraph (b), or less, the council shall provide for an audit of the city's financial affairs by the state auditor or a certified public accountant in accordance with minimum audit procedures prescribed by the state auditor at least once every five years, which audit shall be for a one-year period to be determined at random by the person conducting the audit.

 

(b) For the purposes of paragraph (a), the amount in 2004 2025 is $150,000 $1,000,000, and in 2005 and after, $150,000 is adjusted annually thereafter for inflation using the annual implicit price deflator for state and local expenditures as published by the United States Department of Commerce.

 

EFFECTIVE DATE.  This section is effective August 1, 2025, and applies to audits performed for 2026 and thereafter.

 

Sec. 14.  [471.3458] VOLUNTEER EMERGENCY SERVICES PROVIDERS; TIRE PURCHASES.

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the following terms have the meanings given.

 

(b) "Fire department" has the meaning given in section 299N.01, subdivision 2.

 

(c) "Municipality" means a statutory or home rule charter city or a town.

 

(d) "Volunteer emergency services provider" means a volunteer firefighter, as defined in section 299N.03, subdivision 7; volunteer ambulance attendant, as defined in section 144E.001, subdivision 15; volunteer paramedic; or any other volunteer emergency medical personnel performing emergency medical services for a municipality or fire department.

 

Subd. 2.  Tire purchases.  A municipality or fire department may authorize a volunteer emergency services provider who has performed services for the municipality or fire department for at least three years and who is currently performing services for the municipality or fire department to purchase up to four vehicle tires for one personal vehicle owned by the volunteer emergency services provider every three years under a contract for tires from which the municipality or fire department purchases vehicle tires.  The volunteer emergency services provider must pay for any tires purchased under this section, including all applicable taxes and fees.


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Subd. 3.
  Authorization requirements.  (a) The authorization by a municipality or fire department to purchase tires under this section must be in writing on the municipality's or fire department's letterhead and include the following:

 

(1) the volunteer emergency services provider's name;

 

(2) the number of years the volunteer emergency services provider has performed services for the municipality or fire department;

 

(3) the license plate number of the personal vehicle on which the tires will be placed; and

 

(4) a reference to the contract under which the municipality or fire department purchases vehicle tires.

 

(b) The municipality or fire department must document how many tires each volunteer emergency services provider purchases during the periods specified in this section.

 

Sec. 15.  [471.9994] LANDLORD-TENANT GUIDE.

 

If a home rule charter city, statutory city, or town issues or renews a rental license, a registration or certificate of occupancy, or a similar document for purposes of allowing a dwelling unit to be occupied by a residential tenant, as defined in section 504B.001, subdivision 12, the city or town must provide the landlord, as defined in section 504B.001, subdivision 7, with a link to the attorney general's website where an electronic version of the attorney general's landlord-tenant guide, as defined in section 504B.275, is published, and instructions explaining how to request the guide in an alternative format from the attorney general's office.

 

Sec. 16.  Minnesota Statutes 2024, section 477A.017, subdivision 3, is amended to read:

 

Subd. 3.  Conformity.  (a) Other law to the contrary notwithstanding, in order to receive distributions under sections 477A.011 to 477A.03, or a special district aid program, counties and, cities, towns, and special districts, must conform to the standards set in subdivision 2 in making all financial reports required to be made to the state auditor.

 

(b) For the purpose of this subdivision, "special district" has the meaning under section 6.465, subdivision 3.

 

EFFECTIVE DATE.  This section is effective August 1, 2025, and applies to aid distributions on or after that date.

 

Sec. 17.  Laws 1992, chapter 534, section 7, subdivision 1, is amended to read:

 

Subdivision 1.  Governing board.  The hospital district shall be governed by a board of directors of at least nine and not more than 12 six voting members, elected as provided in subdivision 2.  All members of the hospital board at the time the hospital district is organized shall continue in office until the members of the first board of the hospital district are elected and qualify.  The hospital district may change the number of board members through the adoption and amendment of bylaws under section 10, subdivision 5.

 

Sec. 18.  Laws 1992, chapter 534, section 7, subdivision 2, is amended to read:

 

Subd. 2.  Election.  Three Two directors shall be elected by the city council and six four directors shall be elected by the county board, unless otherwise provided in the bylaws under section 10, subdivision 5.  Up to three Additional voting members and additional nonvoting members may be provided for in bylaws adopted pursuant to section 5 10, subdivision 5.  As nearly as possible, one-third of the members of the first board of directors shall be elected for a term to expire one year from the next December 31 following that election, one-third for a term to


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expire two years from that date, and one-third for a term to expire three years from that date.  Each of the political subdivisions electing directors shall assign terms of office to each director according to these staggered terms.  Successors to the first board members shall each be elected for terms of three years, and all members shall hold office until their successors are elected and qualify.  Terms of office shall expire on December 31.  In case of vacancy on the board of directors, whether due to death, removal from the district, inability to serve, resignation, removal by the entity that elected the director, or other cause, the majority of the governing body of the entity that elected the director whose position is vacant shall elect a director to fill such vacancy for the then unexpired term.

 

Sec. 19.  Laws 1992, chapter 534, section 7, subdivision 3, is amended to read:

 

Subd. 3.  Compensation.  The members of the board of directors may receive compensation for their services as such and may be reimbursed for reasonable expenses necessarily incurred in the performance of their duties to the extent provided for in bylaws adopted pursuant to section 5 10, subdivision 5.

 

Sec. 20.  Laws 1992, chapter 534, section 8, subdivision 2, is amended to read:

 

Subd. 2.  Duties.  The officers shall have the duties specified in this subdivision and additional duties as set forth in bylaws adopted in accordance with section 5 10, subdivision 5.  The chair shall preside at all meetings of the board of directors and shall perform all duties usually incumbent upon such an officer.  The vice-chair shall preside in the absence of the chair.  The secretary shall record the minutes of all meetings of the board and be the custodian of all books and records of the district.  The treasurer shall be the custodian of money received by the district and shall see that they are properly accounted for.  The board may appoint deputies who shall perform any functions and duties of any officer, subject to the supervision and control of the officer.

 

Sec. 21.  Laws 1992, chapter 534, section 10, subdivision 4, is amended to read:

 

Subd. 4.  Approval for sale or lease.  Nothing contained in this section 5 shall be construed to authorize the district or its board of directors to at any time sell, lease, or otherwise transfer the management, control or operation of the hospital, including nursing home or other facilities, except upon approval by a majority vote of the county board and the city council.

 

Sec. 22.  Laws 1992, chapter 534, section 16, is amended to read:

 

Sec. 16.  LEASE OF FACILITIES TO NONPROFIT OR PUBLIC CORPORATION.

 

Subject to section 5 10, subdivision 4, the hospital district may lease hospital, nursing home, or other facilities to be run by a nonprofit or public corporation as community facilities.  The facilities must be open to all residents of the community on equal terms.  The district may lease related medical facilities to any person, firm, association, or corporation, at rent and on conditions agreed.  The term of the lease must not exceed 30 years.  The lessee may be granted an option to renew the lease for an additional term or to purchase the facilities.  The terms of renewal or purchase must be provided for in the lease.  The hospital district may by resolution of its governing body agree to pay to the lessee annually, and to include in each annual budget for hospital and nursing home purposes, a fixed compensation for services agreed to be performed by the lessee in running the hospital, nursing home, or other facilities as a community facility; for any investment by the lessee of its own funds or funds granted or contributed to it in the construction or equipment of the hospital, nursing home, or other facilities; and for any auxiliary services to be provided or made available by the lessee through other facilities owned or operated by it.  Services other than those provided for in the lease agreement may be compensated at rates agreed upon later.  The lease agreement must, however, require the lessee to pay a net rental not less than the amount required to pay the principal and interest when due on all revenue bonds issued by the hospital district to acquire, improve, and refinance the leased facilities, and to maintain the agreed revenue bond reserve.  The lease agreement must not grant the lessee an option to purchase the facilities at a price less than the amount of the bonds issued and interest accrued on them, except bonds and accrued interest paid from the net rentals before the option is exercised.


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To the extent that the facilities are leased under this section for use by persons in private medical or dental or similar practice or other private business, a tax on that use must be imposed just as though the user were the owner of the space.  It must be collected as provided in Minnesota Statutes, section 272.01, subdivision 2.

 

Sec. 23.  REPEALER.

 

Minnesota Statutes 2024, sections 383C.07; and 383C.74, subdivisions 1, 2, 3, and 4, are repealed.

 

EFFECTIVE DATE.  This section is effective the day after the St. Louis County Board of Commissioners and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3. 

 

Sec. 24.  EFFECTIVE DATE.

 

(a) Sections 17 to 22 are effective the day after the governing bodies of Swift County and the city of Benson comply with the requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3.

 

(b) Except as otherwise specified, this article is effective the day following final enactment.

 

ARTICLE 7

CAMPAIGN FINANCE

 

Section 1.  [5.51] EXPENSES OF SECRETARY OF STATE-ELECT.

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the terms defined have the meanings given them.

 

(b) "Secretary of state-elect" means the person who is not currently secretary of state and is the apparent successful candidate for the Office of Secretary of State following a general election.

 

(c) "Commissioner" means the commissioner of the Department of Management and Budget.

 

Subd. 2.  Transition expenses.  In the fiscal year of an election for secretary of state and subject to availability of funds, the commissioner shall transfer up to $25,000 from the general contingent account in the general fund to the Department of Management and Budget.  This transfer is subject to the review and advice of the Legislative Advisory Commission pursuant to section 3.30.  In consultation with the secretary of state-elect, the commissioner shall use the transferred funds to pay expenses of the secretary of state-elect associated with preparing for the assumption of official duties as secretary of state.  The commissioner may use the transferred funds for expenses necessary and prudent for establishment of a transition office prior to the election and for dissolution of the office if the incumbent secretary of state is reelected or after the inauguration of a new secretary of state.  Expenses of the secretary of state-elect may include suitable office space and equipment, communications and technology support, consulting services, compensation and travel costs, and other reasonable expenses.  Compensation rates for temporary employees hired to support the secretary of state-elect and rates paid for consulting services for the secretary of state-elect shall be determined by the secretary of state-elect.

 

Subd. 3.  Unused funds.  No new obligations shall be incurred for expenses of the secretary of state-elect after the date of the inauguration.  By March 31 of the year of the inauguration, the commissioner shall return to the general contingent account any funds transferred under this section that the commissioner determines are not needed to pay expenses of the secretary of state-elect.

 

Sec. 2.  [6.93] EXPENSES OF STATE AUDITOR-ELECT.

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the terms defined have the meanings given them.


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(b) "State auditor-elect" means the person who is not currently state auditor and is the apparent successful candidate for the Office of State Auditor following a general election.

 

(c) "Commissioner" means the commissioner of the Department of Management and Budget.

 

Subd. 2.  Transition expenses.  In the fiscal year of an election for state auditor and subject to availability of funds, the commissioner shall transfer up to $25,000 from the general contingent account in the general fund to the Department of Management and Budget.  This transfer is subject to the review and advice of the Legislative Advisory Commission pursuant to section 3.30.  In consultation with the state auditor-elect, the commissioner shall use the transferred funds to pay expenses of the state auditor-elect associated with preparing for the assumption of official duties as state auditor.  The commissioner may use the transferred funds for expenses necessary and prudent for establishment of a transition office prior to the election and for dissolution of the office if the incumbent state auditor is reelected or after the inauguration of a new state auditor.  Expenses of the state auditor-elect may include suitable office space and equipment, communications and technology support, consulting services, compensation and travel costs, and other reasonable expenses.  Compensation rates for temporary employees hired to support the state auditor-elect and rates paid for consulting services for the state auditor-elect shall be determined by the state auditor-elect.

 

Subd. 3.  Unused funds.  No new obligations shall be incurred for expenses of the state auditor-elect after the date of the inauguration.  By March 31 of the year of the inauguration, the commissioner shall return to the general contingent account any funds transferred under this section that the commissioner determines are not needed to pay expenses of the state auditor-elect.

 

Sec. 3.  [8.40] EXPENSES OF ATTORNEY GENERAL-ELECT.

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the terms defined have the meanings given them.

 

(b) "Attorney general-elect" means the person who is not currently attorney general and is the apparent successful candidate for the Office of Attorney General following a general election.

 

(c) "Commissioner" means the commissioner of the Department of Management and Budget.

 

Subd. 2.  Transition expenses.  In the fiscal year of an election for attorney general and subject to availability of funds, the commissioner shall transfer up to $35,000 from the general contingent account in the general fund to the Department of Management and Budget.  This transfer is subject to the review and advice of the Legislative Advisory Commission pursuant to section 3.30.  In consultation with the attorney general-elect, the commissioner shall use the transferred funds to pay expenses of the attorney general-elect associated with preparing for the assumption of official duties as attorney general.  The commissioner may use the transferred funds for expenses necessary and prudent for establishment of a transition office prior to the election and for dissolution of the office if the incumbent attorney general is reelected or after the inauguration of a new attorney general.  Expenses of the attorney general-elect may include suitable office space and equipment, communications and technology support, consulting services, compensation and travel costs, and other reasonable expenses.  Compensation rates for temporary employees hired to support the attorney general-elect and rates paid for consulting services for the attorney general-elect shall be determined by the attorney general-elect.

 

Subd. 3.  Unused funds.  No new obligations shall be incurred for expenses of the attorney general-elect after the date of the inauguration.  By March 31 of the year of the inauguration, the commissioner shall return to the general contingent account any funds transferred under this section that the commissioner determines are not needed to pay expenses of the attorney general-elect.


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Sec. 4.  Minnesota Statutes 2024, section 10A.01, is amended by adding a subdivision to read:

 

Subd. 16c.  Expert witness.  "Expert witness" means an individual preparing or delivering testimony or a report consisting of information, data, or professional opinions on which the individual has particular expertise gained through formal education, professional or occupational training, or experience in a field in which the individual is or has been employed.

 

EFFECTIVE DATE.  This section is effective June 1, 2025.

 

Sec. 5.  Minnesota Statutes 2024, section 10A.01, subdivision 21, is amended to read:

 

Subd. 21.  Lobbyist.  (a) "Lobbyist" means an individual:

 

(1) engaged for pay or other consideration of more than $3,000 from all sources in any year:

 

(i) for the purpose of attempting to influence legislative or administrative action, or the official action of a political subdivision, by communicating with public or local officials; or

 

(ii) from a business whose primary source of revenue is derived from facilitating government relations or government affairs services if the individual's job duties include offering direct or indirect consulting or advice that helps the business provide those services to clients; or

 

(2) who spends more than $3,000 of the individual's personal funds, not including the individual's own traveling expenses and membership dues, in any year for the purpose of attempting to influence legislative or administrative action, or the official action of a political subdivision, by communicating with public or local officials.

 

(b) "Lobbyist" does not include:

 

(1) a public official;

 

(2) an employee of the state, including an employee of any of the public higher education systems;

 

(3) an elected local official;

 

(4) a nonelected local official or an employee of a political subdivision acting in an official capacity, unless the nonelected official or employee of a political subdivision spends more than 50 hours in any month attempting to influence legislative or administrative action, or the official action of a political subdivision other than the political subdivision employing the official or employee, by communicating or urging others to communicate with public or local officials, including time spent monitoring legislative or administrative action, or the official action of a political subdivision, and related research, analysis, and compilation and dissemination of information relating to legislative or administrative policy in this state, or to the policies of political subdivisions local official or employee spends more than 50 hours in any month attempting to influence legislative or administrative action or the official action of a metropolitan governmental unit, other than a political subdivision employing the official or employee, by communicating with public or local officials;

 

(5) a party or the party's representative appearing in a proceeding before a state board, commission, or agency of the executive branch unless the board, commission, or agency is taking administrative action;

 

(6) an individual while engaged in selling goods or services to be paid for by public funds;


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(7) a finance professional subject to Security Exchange Commission regulation who works with a registered lobbyist and a principal to the extent the finance professional is participating in conduit financing through a political subdivision;

 

(7) (8) a news medium or its employees or agents while engaged in the publishing or broadcasting of news items, editorial comments, or paid advertisements which directly or indirectly urge official action;

 

(8) a paid expert witness whose testimony is requested by the body before which the witness is appearing, but only to the extent of preparing or delivering testimony (9) an expert witness who communicates with public or local officials, other than the Public Utilities Commission, if the communication occurs at a public meeting or is made available to the general public;

 

(9) (10) a party or the party's representative appearing to present a claim to the legislature and communicating to legislators only by the filing of a claim form and supporting documents and by appearing at public hearings on the claim; or

 

(10) (11) an individual providing information or advice to members of a collective bargaining unit when the unit is actively engaged in the collective bargaining process with a state agency or a political subdivision.

 

(c) An individual who volunteers personal time to work without pay or other consideration on a lobbying campaign, and who does not spend more than the limit in paragraph (a), clause (2), need not register as a lobbyist.

 

(d) An individual who provides administrative support to a lobbyist and whose salary and administrative expenses attributable to lobbying activities are reported as lobbying expenses by the lobbyist, but who does not communicate or urge others to communicate with public or local officials, need not register as a lobbyist.

 

EFFECTIVE DATE.  This section is effective June 1, 2025.

 

Sec. 6.  Minnesota Statutes 2024, section 10A.01, subdivision 22, is amended to read:

 

Subd. 22.  Local official.  "Local official" means a person who holds elective office in a political subdivision or who is appointed to or employed in a public position in a political subdivision in which the person has:

 

(1) the authority to make, to recommend, major decisions regarding the expenditure or investment of public money;

 

(2) the responsibility to make recommendations to a chief executive or the governing body about major decisions regarding the expenditure or investment of public money; or

 

(3) the authority to vote on as a member of the governing body, on major decisions regarding the expenditure or investment of public money.

 

EFFECTIVE DATE.  This section is effective June 1, 2025.

 

Sec. 7.  Minnesota Statutes 2024, section 10A.01, subdivision 26, is amended to read:

 

Subd. 26.  Noncampaign disbursement.  (a) "Noncampaign disbursement" means a purchase or payment of money or anything of value made, or an advance of credit incurred, or a donation in kind received, by a principal campaign committee for any of the following purposes:

 

(1) payment for accounting and legal services related to operating the candidate's campaign committee, serving in office, or security for the candidate or the candidate's immediate family, including but not limited to seeking and obtaining a harassment restraining order;


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(2) return of a contribution to the source;

 

(3) repayment of a loan made to the principal campaign committee by that committee;

 

(4) return of a public subsidy;

 

(5) payment for food, beverages, and necessary utensils and supplies, entertainment, and facility rental for a fundraising event;

 

(6) services for a constituent by a member of the legislature or a constitutional officer in the executive branch as provided in section 10A.173, subdivision 1;

 

(7) payment for food and beverages consumed by a candidate or volunteers while they are engaged in campaign activities;

 

(8) payment for food or a beverage consumed while attending a reception or meeting directly related to legislative duties;

 

(9) payment of expenses incurred by elected or appointed leaders of a legislative caucus in carrying out their leadership responsibilities;

 

(10) payment by a principal campaign committee of the candidate's expenses for serving in public office, other than for personal uses;

 

(11) costs of child care for the candidate's children when campaigning;

 

(12) fees paid to attend a campaign school;

 

(13) costs of a postelection party during the election year when a candidate's name will no longer appear on a ballot or the general election is concluded, whichever occurs first;

 

(14) interest on loans paid by a principal campaign committee on outstanding loans;

 

(15) filing fees;

 

(16) post-general election holiday or seasonal cards, thank-you notes, or advertisements in the news media mailed or published prior to the end of the election cycle;

 

(17) the cost of campaign material purchased to replace defective campaign material, if the defective material is destroyed without being used;

 

(18) contributions to a party unit;

 

(19) payments for funeral gifts or memorials;

 

(20) the cost of a magnet less than six inches in diameter containing legislator contact information and distributed to constituents;

 

(21) costs associated with a candidate attending a political party state or national convention in this state;


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(22) other purchases or payments specified in board rules or advisory opinions as being for any purpose other than to influence the nomination or election of a candidate or to promote or defeat a ballot question;

 

(23) costs paid to a third party for processing contributions made by a credit card, debit card, or electronic check;

 

(24) costs paid by a candidate's principal campaign committee to support the candidate's participation in a recount of ballots affecting the candidate's election;

 

(25) a contribution to a fund established to support a candidate's participation in a recount of ballots affecting that candidate's election;

 

(26) costs paid by a candidate's principal campaign committee for a single reception given in honor of the candidate's retirement from public office after the filing period for affidavits of candidacy for that office has closed;

 

(27) a donation from a terminating principal campaign committee to the state general fund;

 

(28) a donation from a terminating principal campaign committee to a county obligated to incur special election expenses due to that candidate's resignation from state office;

 

(29) during a period starting January 1 in the year following a general election and ending on December 31 of the year of general election, total payments of up to $3,000 for detection-related security monitoring expenses for a candidate, including home security hardware, maintenance of home security monitoring hardware, identity theft monitoring services, and credit monitoring services; and

 

(30) costs paid to repair or replace campaign property that was:  (i) lost or stolen, or (ii) damaged or defaced to such a degree that the property no longer serves its intended purpose.  For purposes of this clause, campaign property includes but is not limited to campaign lawn signs.  The candidate must document the need for these costs in writing or with photographs; and

 

(31) transition expenses and inaugural event expenses as defined in section 10A.174.

 

(b) The board must determine whether an activity involves a noncampaign disbursement within the meaning of this subdivision.

 

(c) A noncampaign disbursement is considered to be made in the year in which the candidate made the purchase of goods or services or incurred an obligation to pay for goods or services.

 

Sec. 8.  Minnesota Statutes 2024, section 10A.01, subdivision 26b, is amended to read:

 

Subd. 26b.  Official action of a political subdivision.  "Official action of a political subdivision" means:

 

(1) any action that requires a vote or approval by one or more elected local officials while acting in their official capacity; or

 

(2) an action by an appointed or employed local official to make, to recommend, or to vote on as a member of the governing body, if the official uses:

 

(i) the authority to make major decisions regarding the expenditure or investment of public money;


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(ii) the responsibility to make recommendations to a chief executive or the governing body about major decisions regarding the expenditure or investment of public money; or

 

(iii) the authority to vote as a member of the governing body on major decisions regarding the expenditure or investment of public money.

 

EFFECTIVE DATE.  This section is effective June 1, 2025.

 

Sec. 9.  Minnesota Statutes 2024, section 10A.04, subdivision 4, is amended to read:

 

Subd. 4.  Content.  (a) A report under this section must include information the board requires from the registration form and the information required by this subdivision for the reporting period.

 

(b) A lobbyist must report the specific subjects of interest for an entity represented by the lobbyist on each report submitted under this section.  A lobbyist must describe a specific subject of interest in the report with enough information to show the particular issue of importance to the entity represented.

 

(c) A lobbyist must report every state agency that had administrative action that the represented entity sought to influence during the reporting period.  The lobbyist must report the specific subjects of interest for each administrative action and the revisor of statutes rule draft number assigned to the administrative rulemaking.

 

(d) A lobbyist must report every political subdivision that considered official action that the represented entity sought to influence during the reporting period.  The lobbyist must report the specific subjects of interest for each action.

 

(e) A lobbyist must report general lobbying categories and up to four specific subjects of interest related to each general lobbying category on which the lobbyist attempted to influence legislative action during the reporting period.  If the lobbyist attempted to influence legislative action on more than four specific subjects of interest for a general lobbying category, the lobbyist, in consultation with the represented entity, must determine which four specific subjects of interest were the entity's highest priorities during the reporting period and report only those four subjects.

 

(f) A lobbyist must report the Public Utilities Commission project name for each rate setting, power plant and powerline siting, or granting of certification of need before the Public Utilities Commission that the represented entity sought to influence during the reporting period.

 

(g) A lobbyist must report the amount and nature of each gift, item, or benefit, excluding contributions to a candidate, equal in value to $5 or more, given or paid to any official, as defined in section 10A.071, subdivision 1, by the lobbyist or an employer or employee of the lobbyist.  The list must include the name and address of each official to whom the gift, item, or benefit was given or paid and the date it was given or paid.

 

(h) A lobbyist must report each original source of money in excess of $500 in any year used for the purpose of lobbying to influence legislative action, administrative action, or the official action of a political subdivision.  The list must include the name, address, and employer, or, if self-employed, the occupation and principal place of business, of each payer of money in excess of $500.

 

(i) On each report, a lobbyist must disclose the general lobbying categories that were lobbied on in the reporting period.

 

(j) A lobbyist must report each expert witness that the lobbyist requested to communicate with public or local officials as described in section 10A.01, subdivision 21, paragraph (b), clause (9), and each finance professional who participated in conduit financing as described in section 10A.01, subdivision 21, paragraph (b), clause (7).  The


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lobbyist must report the name of the expert witness or finance professional; the employer, if any, of the expert witness or finance professional; the government entity that received the communication from the expert witness or finance professional; and the specific subject on which the expert witness or finance professional communicated.  The designated lobbyist must also report this information if the expert witness or finance professional is requested to communicate by the principal or association that the lobbyist represents.

 

EFFECTIVE DATE.  This section is effective June 1, 2025.

 

Sec. 10.  Minnesota Statutes 2024, section 10A.06, is amended to read:

 

10A.06 CONTINGENT FEES PROHIBITED.

 

(a) No person may act as or employ a lobbyist for compensation that is dependent upon the result or outcome of any legislative or administrative action, or of the official action of a political subdivision.

 

(b) This section does not apply to an attorney or financial professional to the extent that the attorney or financial professional is participating in conduit financing through a political subdivision.

 

(c) A person who violates this section is guilty of a gross misdemeanor.

 

EFFECTIVE DATE.  This section is effective June 1, 2025.

 

Sec. 11.  [10A.066] HANDBOOK FOR LOBBYING.

 

(a) The board must publish on the board's website a handbook for lobbying written in plain language.  At a minimum, the handbook must clearly explain: 

 

(1) lobbyist registration requirements, including:

 

(i) an explanation of when a person is required to register as a lobbyist and what specific types of activities count toward reaching the dollar amount thresholds in section 10A.01, subdivision 21; and

 

(ii) how registration requirements apply if a person is employed by a government entity;

 

(2) which activities and expenses do not count toward the dollar amount thresholds in section 10A.01, subdivision 21, but are required to be reported as lobbying disbursements on a principal's report; and

 

(3) any differences between lobbying the legislature, the executive branch, a political subdivision, and the Public Utilities Commission.

 

(b) The board must regularly update the handbook to reflect changes to statutes and rules.  In developing and updating the handbook, the board must consult individuals who are registered lobbyists and individuals who are not full-time lobbyists, including individuals from nonprofit organizations and small organizations.

 

EFFECTIVE DATE.  This section is effective the day following final enactment, except that the board is not required to publish the handbook until January 15, 2026.


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Sec. 12.  Minnesota Statutes 2024, section 10A.09, subdivision 1, is amended to read:

 

Subdivision 1.  Time for filing.  An individual must file a statement of economic interest:

 

(1) within 60 days of accepting employment as a public official or a local official in a metropolitan governmental unit;

 

(2) within 60 days of assuming office as a district court judge, appeals court judge, supreme court justice, or county commissioner;

 

(3) within 14 days after the end of the filing period for a candidate who filed an affidavit of candidacy or petition to appear on the ballot for an elective state constitutional or legislative office or an elective local office in a metropolitan governmental unit other than county commissioner;

 

(4) in the case of a public official requiring the advice and consent of the senate, within 14 days after undertaking the duties of office; or

 

(5) in the case of members of the Minnesota Racing Commission, the director of the Minnesota Racing Commission, chief of security, medical officer, inspector of pari-mutuels, and stewards employed or approved by the commission or persons who fulfill those duties under contract, within 60 days of accepting or assuming duties.

 

Sec. 13.  [10A.174] INAUGURAL EVENT AND TRANSITION EXPENSES.

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the following terms have the meanings given.

 

(b) "Inaugural event expenses" means expenses incurred for any event related to the individual's inauguration held between the date of the general election at which an individual is elected to a statewide office and January 31 of the year in which the officeholder takes office.  In the event that an individual fills a vacancy in a constitutional office, "inaugural event expenses" means expenses incurred for any event related to the individual's inauguration between the time that it was confirmed that the individual would assume the constitutional office and the date four weeks after the individual is sworn into office.

 

(c) "Transition expenses" means expenses incurred in preparing for the assumption of official duties as governor, lieutenant governor, secretary of state, state auditor, or attorney general.  Expenses include but are not limited to establishment of a transition office, the dissolution of the office, office space and equipment, communications and technology support, consulting services, compensation and travel costs, and other reasonable expenses.  Transition expenses do not include expenses that are incurred after the officeholder takes office.

 

Subd. 2.  Inaugural event and transition expenses; contributions.  A candidate or a candidate's principal campaign committee must not solicit or accept any contributions for or make any expenditure for inaugural event expenses or transition expenses except through the candidate's principal campaign committee or as otherwise prescribed by law.

 

Sec. 14.  Minnesota Statutes 2024, section 10A.20, is amended by adding a subdivision to read:

 

Subd. 5a.  Report on personal contributions.  A candidate for constitutional or legislative office that makes a contribution or loan to the candidate's principal campaign committee that, in aggregate, exceeds the amount permitted by section 10A.27, subdivision 10, must report the contribution or loan to the board by the next business day.  A candidate must file a new report each time that the reporting threshold is exceeded during an election cycle segment.


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Sec. 15.  [10A.52] MAJOR DECISION OF NONELECTED LOCAL OFFICIALS.

 

Subdivision 1.  Major decision regarding the expenditure of public money.  (a) Attempting to influence a nonelected local official is lobbying if the nonelected local official uses:

 

(1) the authority to make major decisions regarding the expenditure or investment of public money;

 

(2) the responsibility to make recommendations to a chief executive or the governing body about major decisions regarding the expenditure or investment of public money; or

 

(3) the authority to vote as a member of the governing body on major decisions regarding the expenditure or investment of public money.

 

(b) The mere act of submitting an application for a grant or responding to a request for proposals is not lobbying.  Communications of a purely administerial or technical nature regarding the submission of a grant application or response to requests for proposals are not lobbying.

 

Subd. 2.  Actions that are a major decision regarding public funds.  A major decision regarding the expenditure or investment of public money includes but is not limited to a decision on:

 

(1) the development and ratification of operating and capital budgets of a political subdivision, including development of the budget request for an office or department within the political subdivision;

 

(2) whether to apply for or accept state, federal, or private grant funding;

 

(3) selecting recipients for government grants from the political subdivision; or

 

(4) tax abatement, tax increment financing, or expenditures on public infrastructure used to support private housing or business developments.

 

Subd. 3.  Actions that are not a major decision.  A major decision regarding the expenditure of public money does not include: 

 

(1) the purchase of goods or services with public funds in the operating or capital budget of a political subdivision;

 

(2) collective bargaining of a labor contract on behalf of a political subdivision; or

 

(3) participating in discussions with a party or a party's representative regarding litigation between the party and the political subdivision of the local official.

 

EFFECTIVE DATE.  This section is effective June 1, 2025.

 

Sec. 16.  Minnesota Statutes 2024, section 211A.02, subdivision 1, is amended to read:

 

Subdivision 1.  When and where filed by committees or candidates.  (a) A committee or a candidate who receives contributions or makes disbursements of more than $750 in a calendar year shall submit an initial report to the filing officer within 14 days after the candidate or committee receives or makes disbursements of more than $750 and must continue to make the reports required by this subdivision until a final report is filed.


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(b) In a year in which a candidate receives contributions or makes disbursements of more than $750 or the candidate's name appears on the ballot, the candidate must file a report:

 

(1) ten days before the primary or special primary if a primary is held in the jurisdiction, regardless of whether the candidate is on the primary ballot.  If a primary is not conducted, the report is due ten days before the primary date specified in section 205.065;

 

(2) ten days before the general election or special election; and

 

(3) 30 days after a general or special election.

 

The reporting obligations in this paragraph begin with the first report due after the reporting period in which the candidate reaches the spending threshold specified in paragraph (a).  A candidate who did not file for office is not required to file reports required by this paragraph that are due after the end of the filing period.  A candidate whose name will not be on the general election ballot is not required to file the reports required by clauses (2) and (3).

 

(c) Until a final report is filed, a candidate must file a report by January 31 of each year.  Notwithstanding subdivision 2, clause (4), the report required by this subdivision must only include the information from the previous calendar year.

 

Sec. 17.  Minnesota Statutes 2024, section 211A.02, subdivision 2, is amended to read:

 

Subd. 2.  Information required.  The report to be filed by a candidate or committee must include:

 

(1) the name of the candidate and office sought;

 

(2) the printed name, address, telephone number, signature, and email address, if available, or an attestation that the candidate and the candidate's campaign do not possess an email address, of the person responsible for filing the report;

 

(3) the total cash on hand designated to be used for political purposes;

 

(4) the total amount of contributions received and the total amount of disbursements for the period from the last previous report to five days before the current report is due;

 

(5) if disbursements made to the same vendor exceed $100 in the aggregate during the period covered by the report, the name and address for the vendor and the amount, date, and purpose for each disbursement; and

 

(6) the name, address, and employer, or occupation if self-employed, of any individual or entity that during the period covered by the report has made one or more contributions that in the aggregate exceed $100, and the amount and date of each contribution.  The filing officer must restrict public access to the address of any individual who has made a contribution that exceeds $100 and who has filed with the filing officer a written statement signed by the individual that withholding the individual's address from the financial report is required for the safety of the individual or the individual's family.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.

 

Sec. 18.  [211B.066] DISTRIBUTION OF ABSENTEE BALLOT APPLICATIONS AND SAMPLE BALLOTS.

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the following terms have the meanings given.


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(b) "Person or entity" means any individual, committee, or association as defined in section 10A.01, subdivision 6.

 

(c) "Sample ballot" means a document that is formatted and printed in a manner that so closely resembles an official ballot that it could lead a reasonable person to believe the document is an official ballot.  A document that contains the names of particular candidates or ballot questions alongside illustrations of a generic ballot or common ballot markings is not a sample ballot as long as the document does not closely resemble an official ballot and would not lead a reasonable person to believe the document is an official ballot.

 

Subd. 2.  Requirements.  (a) Except as otherwise provided in this paragraph, any person or entity that mails an absentee ballot application or sample ballot to anyone in the state must comply with this section.  This section does not apply to a unit of government or employee of that unit of government when discharging official election duties.

 

(b) The person or entity mailing the absentee ballot application or sample ballot must include the following statement:  "This mailing is not an official election communication from a unit of government.  This [absentee ballot application or sample ballot] has not been included at the request of a government official.  " If a sample ballot is enclosed, the statement must also include the following:  "This is a sample ballot, not an official ballot.  You cannot cast the enclosed sample ballot."

 

(c) The statement required in paragraph (b) must be printed in a typeface and format designed to be clearly visible at the time the mailing is opened.  The person or entity sending the sample ballot or absentee ballot application must include the person or entity's name and street address in the return address position on the mailing envelope.

 

(d) If an absentee ballot application is included, the space on the application to indicate the applicant's preference to join the permanent absentee voter list must be left blank and may only be marked by the applicant.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.

 

Sec. 19.  Minnesota Statutes 2024, section 211B.32, subdivision 4, is amended to read:

 

Subd. 4.  Proof of claim.  The burden of proving the allegations in the complaint is on the complainant.  The standard of proof of a violation of section 211B.06, relating to false statements in paid political advertising or campaign material, is clear and convincing evidence.  The standard of proof of any other a violation of chapter 211A or 211B is a preponderance of the evidence.

 

Sec. 20.  Minnesota Statutes 2024, section 211B.35, subdivision 2, is amended to read:

 

Subd. 2.  Disposition of complaint.  The panel must determine whether the violation alleged in the complaint occurred and must make at least one of the following dispositions:

 

(a) The panel may dismiss the complaint.

 

(b) The panel may issue a reprimand.

 

(c) The panel may find that a statement made in a paid advertisement or campaign material violated section 211B.06.

 

(d) The panel may impose a civil penalty of up to $5,000 for any violation of chapter 211A or 211B.

 

(e) (d) The panel may refer the complaint to the appropriate county attorney.


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Sec. 21.  Minnesota Statutes 2024, section 383B.041, subdivision 5, is amended to read:

 

Subd. 5.  Economic interest disclosure; Special School District No. 1.  Every candidate for school board in Special School District No. 1, Minneapolis, must file an original statement of economic interest with the school district within 14 days of the filing of an affidavit or petition to appear on the ballot the end of the candidate filing period.  An elected official in Special School District No. 1, Minneapolis, must file the annual statement required in section 10A.09, subdivision 6, with the school district for every year that the individual serves in office.  An original and annual statement must contain the information listed in section 10A.09, subdivision 5.  The provisions of section 10A.09, subdivisions 6a, 7, and 9, apply to statements required under this subdivision.

 

Sec. 22.  RULEMAKING.

 

The Campaign Finance and Public Disclosure Board must amend Minnesota Rules, part 4503.0900, to conform to the requirements of Minnesota Statutes, section 10A.174, regarding transition expenses.  The board may use the good cause exemption under Minnesota Statutes, section 14.388, for purposes of this section.

 

Sec. 23.  EFFECTIVE DATE.

 

Unless otherwise provided, this article is effective January 1, 2026.

 

ARTICLE 8

ELECTIONS POLICY

 

Section 1.  Minnesota Statutes 2024, section 201.054, subdivision 1, is amended to read:

 

Subdivision 1.  Registration.  (a) An individual may register to vote or update a voter registration:

 

(1) at any time before the 20th day preceding any election as provided in section 201.061, subdivision 1;

 

(2) on the day of an election as provided in section 201.061, subdivision 3; or

 

(3) when submitting an absentee ballot, by enclosing a completed registration application as provided in section 203B.04, subdivision 4.

 

(b) An individual who is under the age of 18, but who is at least 16 years of age and otherwise eligible, may submit a voter registration application as provided in section 201.061, subdivisions 1 and 1b.

 

Sec. 2.  Minnesota Statutes 2024, section 201.054, subdivision 2, is amended to read:

 

Subd. 2.  Prohibitions; penalty.  No An individual shall must not intentionally:

 

(1) cause or attempt to cause the individual's name to be registered in any precinct if the individual is not eligible to vote, except as permitted by section 201.061, subdivision 1b;

 

(2) cause or attempt to cause the individual's name to be registered for the purpose of voting in more than one precinct;

 

(3) misrepresent the individual's identity when attempting to register to vote or to update a registration; or

 

(4) aid, abet, counsel, or procure any other individual to violate this subdivision.

 

A violation of this subdivision is a felony.


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Sec. 3.  Minnesota Statutes 2024, section 201.056, is amended to read:

 

201.056 SIGNATURE OF REGISTERED VOTER; MARKS ALLOWED.

 

An individual who is unable to write the individual's name shall be required to must sign a registration application in the manner provided by section 645.44, subdivision 14.  If the individual registers in person and signs by making a mark, the clerk or election judge accepting the registration shall or update must certify the mark by signing the individual's name.  If the individual registers or updates a registration by mail and signs by making a mark, the mark shall must be certified by having a voter registered in the individual's precinct sign the individual's name and the voter's own name and give the voter's own address.

 

Sec. 4.  Minnesota Statutes 2024, section 201.061, subdivision 1, is amended to read:

 

Subdivision 1.  Prior to election day.  (a) At any time except during the 20 days immediately preceding any regularly scheduled election, an eligible voter or any individual who will be an eligible voter at the time of the next election may register or update a registration to vote in the precinct in which the voter maintains residence by completing a voter registration application as described in section 201.071, subdivision 1.  A completed application may be submitted:

 

(1) in person or by mail to the county auditor of that county or to the Secretary of State's Office; or

 

(2) electronically through a secure website that shall must be maintained by the secretary of state for this purpose, if the applicant has an email address and provides the applicant's verifiable Minnesota driver's license number, Minnesota state identification card number, or the last four digits of the applicant's Social Security number.

 

(b) A registration or update to a registration that is received in person or by mail no later than 5:00 p.m. on the 21st day preceding any election, or a registration or update to a registration received electronically through the secretary of state's secure website no later than 11:59 p.m. on the 21st day preceding any election, shall must be accepted.  An improperly addressed or delivered registration application shall must be forwarded within two working days after receipt to the county auditor of the county where the voter maintains residence.  A state or local agency or an individual that accepts completed voter registration applications from a voter must submit the completed applications to the secretary of state or the appropriate county auditor within ten calendar days after the applications are dated by the voter.

 

(c) An application submitted electronically under paragraph (a), clause (2), may only be transmitted to the county auditor for processing if the secretary of state has verified the application information matches the information in a government database associated with the applicant's driver's license number, state identification card number, or Social Security number.  The secretary of state must review all unverifiable voter registration applications submitted electronically for evidence of suspicious activity and must forward any such application to an appropriate law enforcement agency for investigation.

 

(d) An individual may not electronically submit a voter registration application on behalf of any other individual, except that the secretary of state may provide features on the secure website established under paragraph (a), clause (2), that allow third parties to connect application programming interfaces that facilitate an individual's submission of voter registration information while interacting with the third party.

 

(e) For purposes of this section, mail registration is defined as a voter registration application delivered to the secretary of state, county auditor, or municipal clerk by the United States Postal Service or a commercial carrier.


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Sec. 5.  Minnesota Statutes 2024, section 201.061, subdivision 3, is amended to read:

 

Subd. 3.  Election day registration.  (a) An individual who is eligible to vote may register or update a registration on election day by appearing in person at the polling place for the precinct in which the individual maintains residence, by completing a registration application, making an oath in the form prescribed by the secretary of state and providing proof of residence.  An individual may prove residence for purposes of registering or updating a registration by:

 

(1) presenting a driver's license or Minnesota identification card issued pursuant to section 171.07;

 

(2) presenting any document approved by the secretary of state as proper identification;

 

(3) presenting a current student fee statement that contains the student's valid address in the precinct together with a picture identification card; or

 

(4) having a voter who is registered to vote in the precinct, or an employee who provides proof that they are employed by and working in a residential facility in the precinct and vouching for a resident in the facility, sign an oath in the presence of the election judge vouching that the voter or employee personally knows that the individual is a resident of the precinct.  A voter who has been vouched for on election day may not sign a proof of residence oath vouching for any other individual on that election day.  An election judge may not sign a proof of residence oath vouching for any individual who appears in the precinct where the election judge is working unless the election judge personally knows the individual is a resident of the precinct.  A voter who is registered to vote in the precinct may sign up to eight proof-of-residence oaths on any election day.  This limitation does not apply to an employee of a residential facility described in this clause.  The secretary of state shall provide a form for election judges to use in recording the number of individuals for whom a voter signs proof-of-residence oaths on election day.  The form must include space for the maximum number of individuals for whom a voter may sign proof-of-residence oaths.  For each proof-of-residence oath, the form must include a statement that the individual:  (i) is registered to vote in the precinct or is an employee of a residential facility in the precinct, (ii) personally knows that the voter is a resident of the precinct, and (iii) is making the statement on oath.  The form must include a space for the voter's printed name, signature, telephone number, and address.

 

The oath required by this subdivision and Minnesota Rules, part 8200.9939, must be attached to the voter registration application.

 

(b) The operator of a residential facility shall prepare a list of the names of its employees currently working in the residential facility and the address of the residential facility.  The operator shall certify the list and provide it to the appropriate county auditor no less than 20 days before each election for use in election day registration.  The secretary of state must publish guidance for residential facilities and residential facility employees on the vouching process and the requirements of this subdivision.

 

(c) "Residential facility" means transitional housing as defined in section 256K.48, subdivision 1; a supervised living facility licensed by the commissioner of health under section 144.50, subdivision 6; a nursing home as defined in section 144A.01, subdivision 5; an assisted living facility licensed by the commissioner of health under chapter 144G; a veterans home operated by the board of directors of the Minnesota Veterans Homes under chapter 198; a residence licensed by the commissioner of human services to provide a residential program as defined in section 245A.02, subdivision 14; a residential facility for persons with a developmental disability licensed by the commissioner of human services under section 252.28; setting authorized to provide housing support as defined in section 256I.03, subdivision 10a; a shelter for battered women as defined in section 611A.37, subdivision 4; a supervised publicly or privately operated shelter or dwelling designed to provide temporary living accommodations for the homeless; a facility where a provider operates a residential treatment program as defined in section 245.462, subdivision 23; or a facility where a provider operates an adult foster care program as defined in section 245A.02, subdivision 6c.


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(d) For tribal band members, an individual may prove residence for purposes of registering or updating a registration by:

 

(1) presenting an identification card issued by the tribal government of a tribe recognized by the Bureau of Indian Affairs, United States Department of the Interior, that contains the name, address, signature, and picture of the individual; or

 

(2) presenting an identification card issued by the tribal government of a tribe recognized by the Bureau of Indian Affairs, United States Department of the Interior, that contains the name, signature, and picture of the individual and also presenting one of the documents listed in Minnesota Rules, part 8200.5100, subpart 2, item B.

 

(e) A county, school district, or municipality may require that an election judge responsible for election day registration initial each completed registration application.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.

 

Sec. 6.  Minnesota Statutes 2024, section 201.061, subdivision 3a, is amended to read:

 

Subd. 3a.  Additional proofs of residence permitted for students.  (a) If an eligible voter's name; student identification number, if available; and address within the precinct appear on a current residential housing list under section 135A.17 certified to the county auditor by the postsecondary educational institution, the voter may prove residence by presenting a current valid photo identification issued by a postsecondary educational institution in Minnesota; identification authorized in subdivision 3, paragraph (a), clause (1) or (2); or identification authorized in subdivision 3, paragraph (d) (c), clause (1) or (2).

 

(b) This additional proof of residence for students must not be allowed unless the postsecondary educational institution submits to the county auditor no later than 60 days prior to the election a written agreement that the postsecondary educational institution will certify for use at the election accurate updated residential housing lists under section 135A.17.  A written agreement is effective for the election and all subsequent elections held in that calendar year, including the November general election.

 

(c) The additional proof of residence for students must be allowed on an equal basis for voters who reside in housing meeting the requirements of section 135A.17, if the residential housing lists certified by the postsecondary educational institution meet the requirements of this subdivision.

 

(d) An updated residential housing list must be certified to the county auditor no later than 20 35 days prior to each election.  The certification must be dated and signed by the chief officer or designee of the postsecondary educational institution and must state that the list is current and accurate and includes only the names of persons residing in the institution's housing and, for students who do not live in the institution's housing, that it reflects the institution's records as of the date of the certification.

 

(e) This additional proof of residence for students must be allowed during the 18 days before an election and on election day.  The county auditor shall instruct the election judges of the precinct in procedures for use of the list in conjunction with photo identification.  The auditor shall supply a list to the election judges with the election supplies for the precinct.

 

(f) The county auditor shall notify all postsecondary educational institutions in the county of the provisions of this subdivision.

 

EFFECTIVE DATE.  This section is effective January 1, 2026, and applies to elections held on or after February 6, 2026.


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Sec. 7.  Minnesota Statutes 2024, section 201.061, subdivision 4, is amended to read:

 

Subd. 4.  Registration by election judges; procedures.  Registration and updates to registrations at the polling place on election day shall must be conducted by the election judges.  Before registering an individual to vote or updating an individual's registration at the polling place, the election judge must review any list of voters who registered or updated a registration with an absentee election day registrants ballot provided by the county auditor or municipal clerk to see if the person individual has already voted by absentee ballot.  If the person's individual's name appears on the list, the election judge must not allow the individual to register, to update the individual's registration, or to vote in the polling place.  The election judge who registers an individual or updates an individual's registration at the polling place on election day shall must not handle that voter's ballots at any time prior to the opening of the ballot box after the voting ends.  Registration applications and forms for oaths shall must be available at each polling place.  If an individual who registers or updates a registration on election day proves residence by oath of a registered voter, the form containing the oath shall must be attached to the individual's registration application.  Registration applications completed on election day shall must be forwarded to the county auditor who shall must add the name of each voter to the registration system or update the voter's registration unless the information forwarded is substantially deficient.  A county auditor who finds an election day registration or update substantially deficient shall must give written notice to the individual whose registration is found deficient.  An election day registration shall or update must not be found deficient solely because the individual who provided proof of residence was ineligible to do so.

 

Sec. 8.  Minnesota Statutes 2024, section 201.061, subdivision 5, is amended to read:

 

Subd. 5.  Unregistered voters; penalty.  No election judge in any precinct in which registration is required may receive the vote at any election of any individual whose name is not registered in a manner specified in section 201.054, subdivision 1 or not recorded under section 203B.19.  A violation of this subdivision is a felony.

 

Sec. 9.  Minnesota Statutes 2024, section 201.061, subdivision 7, is amended to read:

 

Subd. 7.  Record of attempted registrations.  The election judge responsible for election day registration shall must attempt to keep a record of the number of individuals who attempt to register or update a registration on election day but who cannot provide proof of residence as required by this section.  The record shall must be forwarded to the county auditor with the election returns for that precinct.

 

Sec. 10.  Minnesota Statutes 2024, section 201.071, subdivision 1, is amended to read:

 

Subdivision 1.  Form.  Both paper and electronic voter registration applications must contain the same information unless otherwise provided by law.  A voter registration application must contain spaces for the following required information:  voter's first name, middle name, and last name; voter's previous name, if any; voter's current address; voter's previous address, if any; voter's date of birth; voter's municipality and county of residence; voter's telephone number, if provided by the voter; date of registration; current and valid Minnesota driver's license number or Minnesota state identification number, or if the voter has no current and valid Minnesota driver's license or Minnesota state identification, the last four digits of the voter's Social Security number; a box to indicate a voter's preference to join the permanent absentee voter list; and voter's signature.  The paper registration application must provide a space for a voter to provide a physical description of the location of their residence, if the voter resides in an area lacking a specific physical address.  The description must be sufficient for the county auditor to identify the correct precinct for the voter.  The description may include the closest cross street or the nearest address to the described location that is identified on a precinct map, and directions from that cross street or address to the described location, including but not limited to the cardinal direction and approximate distance to the location.  The paper registration application may include the voter's email address, if provided by the voter.  The electronic


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voter registration application must include the voter's email address.  The registration application may include the voter's interest in serving as an election judge, if indicated by the voter.  The application must also contain the following certification of voter eligibility:

 

"I certify that I:

 

(1) am at least 16 years old and understand that I must be at least 18 years old to be eligible to vote;

 

(2) am a citizen of the United States;

 

(3) will have maintained residence in Minnesota for 20 days immediately preceding election day;

 

(4) maintain residence at the address or location given on the registration form;

 

(5) am not under court-ordered guardianship in which the court order revokes my right to vote;

 

(6) have not been found by a court to be legally incompetent to vote;

 

(7) am not currently incarcerated for a conviction of a felony offense; and

 

(8) have read and understand the following statement:  that giving false information is a felony punishable by not more than five years imprisonment or a fine of not more than $10,000, or both."

 

The certification must include boxes for the voter to respond to the following questions:

 

"(1) Are you a citizen of the United States?" and

 

"(2) Are you at least 16 years old and will you be at least 18 years old on or before the day of the election in which you intend to vote?"

 

And the instruction:

 

"If you checked 'no' to either of these questions, do not complete this form."

 

The form of the voter registration application and the certification of voter eligibility must be as provided in this subdivision and approved by the secretary of state.  Voter registration forms authorized by the National Voter Registration Act must also be accepted as valid.  The federal postcard application form must also be accepted as valid if it is not deficient and the voter is eligible to register in Minnesota.

 

An individual may use a voter registration application to apply to register to vote in Minnesota or to change update information on an existing registration.

 

EFFECTIVE DATE.  This section is effective July 1, 2025, except that this section is effective January 1, 2026, for the secretary of state's online voter registration application.

 

Sec. 11.  Minnesota Statutes 2024, section 201.071, subdivision 4, is amended to read:

 

Subd. 4.  Change of registration.  A county auditor who receives a registration application indicating that an individual was previously registered in a different county in Minnesota shall must update the voter's record electronically through the statewide registration system in the manner prescribed by the secretary of state.  A county auditor who receives a registration application or notification requiring a change an update of registration records


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under this subdivision as a result of an a voter updating the voter's registration on election day registration shall must also check the statewide registration system to determine whether the individual voted in more than one precinct in the most recent election.

 

Sec. 12.  Minnesota Statutes 2024, section 201.091, subdivision 5, is amended to read:

 

Subd. 5.  Copy of list to registered voter.  The county auditors and the secretary of state shall must provide copies of the public information lists in electronic or other media to any voter registered in Minnesota within ten five business days of receiving a complete written or electronic request accompanied by payment of the cost of reproduction.  The county auditors and the secretary of state shall must make a copy of the list available for public inspection without cost.  An individual who inspects or acquires a copy of a public information list may must not use any information contained in it for purposes unrelated to elections, political activities, or law enforcement.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.

 

Sec. 13.  Minnesota Statutes 2024, section 201.091, subdivision 8, is amended to read:

 

Subd. 8.  Registration places.  (a) Each county auditor shall must designate a number of public buildings in those political subdivisions of the county where preregistration of voters is allowed as provided in section 201.061, subdivision 1, where eligible voters may register to vote or update the voter's registration as provided in section 201.061, subdivision 1.

 

(b) An adequate supply of registration applications and instructions must be maintained at each designated location, and a designated individual must be available there to accept registration applications and transmit them to the county auditor.

 

(c) A person who, because of disability, needs assistance in order to determine eligibility or, to register must, or to update a voter registration may be assisted by a designated individual.  Assistance includes but is not limited to reading the registration form and instructions and filling out the registration form as directed by the eligible voter.

 

Sec. 14.  Minnesota Statutes 2024, section 201.121, subdivision 1, is amended to read:

 

Subdivision 1.  Entry of registration information.  (a) At the time a voter registration application is properly completed, submitted, and received in accordance with sections 201.061 and 201.071, the county auditor shall must enter or update the information contained on it into the statewide registration system.  Voter registration applications completed before election day must be entered into the statewide registration system within ten days after they have been submitted to the county auditor.  Voter registration applications completed on election day must be entered into the statewide registration system within 42 days after the election, unless the county auditor notifies the secretary of state before the deadline has expired that the deadline will not be met.  Upon receipt of a notification under this paragraph, the secretary of state must extend the deadline for that county auditor by an additional 28 days.  The secretary of state may waive a county's obligations under this paragraph if, on good cause shown, the county demonstrates its permanent inability to comply.

 

The secretary of state must post data on each county's compliance with this paragraph on the secretary of state's website including, as applicable, the date each county fully complied or the deadline by which a county's compliance must be complete.

 

(b) Upon receiving a completed voter registration application, the secretary of state may electronically transmit the information on the application to the appropriate county auditor as soon as possible for review by the county auditor before final entry into or update in the statewide registration system.  The secretary of state may mail the voter registration application to the county auditor.


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(c) Within ten days after the county auditor has entered or updated information from a voter registration application into in the statewide registration system, the secretary of state shall must compare the voter's name, date of birth, and driver's license number, state identification number, or the last four digits of the Social Security number with the same information contained in the Department of Public Safety database.

 

(d) The secretary of state shall must provide a report to the county auditor on a weekly basis that includes a list of voters whose name, date of birth, or identification number have been compared with the same information in the Department of Public Safety database and cannot be verified as provided in this subdivision.  The report must list separately those voters who have submitted a voter registration application by mail and have not voted in a federal election in this state.

 

(e) The county auditor shall must compile a list of voters for whom the county auditor and the secretary of state are unable to conclude that information on the voter registration application and the corresponding information in the Department of Public Safety database relate to the same person.

 

(f) The county auditor shall must send a notice of incomplete registration to any voter whose name appears on the list and change the voter's status to "challenged.  " A voter who receives a notice of incomplete registration from the county auditor may either provide the information required to clear the challenge at least 21 days before the next election or at the polling place on election day.

 

Sec. 15.  Minnesota Statutes 2024, section 201.121, subdivision 3, is amended to read:

 

Subd. 3.  Postelection sampling.  (a) Within ten days after an election, the county auditor shall must send the notice required by subdivision 2 to a random sampling of the individuals who registered or updated voter registration information on election day.  The random sampling shall must be determined in accordance with the rules of the secretary of state.  As soon as practicable after the election, the county auditor shall must mail the notice required by subdivision 2 to all other individuals who registered or updated voter registration information on election day.  If a notice is returned as not deliverable, the county auditor shall must attempt to determine the reason for the return.  A county auditor who does not receive or obtain satisfactory proof of an individual's eligibility to vote shall must immediately notify the county attorney of all of the relevant information.  By February 15 of each year, the county auditor must notify the secretary of state of the following information for each election held in the previous year by each precinct:

 

(1) the total number of all notices that were returned as nondeliverable;

 

(2) the total number of nondeliverable notices that the county auditor was able to determine the reason for the return along with the reason for each return; and

 

(3) the total number of individuals for whom the county auditor does not receive or obtain satisfactory proof of an individual's eligibility to vote.

 

(b) By March 1 of every year, the secretary of state shall must report to the chair and ranking minority members of the legislative committees with jurisdiction over elections the following information for each election held in the previous year by each precinct and each county:

 

(1) the total number of all notices that were returned as nondeliverable;

 

(2) the total number of nondeliverable notices that a county auditor was able to determine the reason for the return along with the reason for each return; and

 

(3) the total number of individuals for whom the county auditor does not receive or obtain satisfactory proof of an individual's eligibility to vote.


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Sec. 16.  Minnesota Statutes 2024, section 201.13, subdivision 3, is amended to read:

 

Subd. 3.  Use of change of address system.  (a) At least once each month the secretary of state shall must obtain a list of individuals registered to vote in this state who have filed with the United States Postal Service a change of their permanent address.  The secretary of state may also periodically obtain a list of individuals with driver's licenses or state identification cards to identify those who are registered to vote who have applied to the Department of Public Safety for a replacement driver's license or state identification card with a different address, and a list of individuals for whom the Department of Public Safety received notification of a driver's license or state identification card cancellation due to a change of residency out of state.  However, the secretary of state shall must not load data derived from these lists into the statewide voter registration system within the 47 days before the state primary or 47 days before a November general election.

 

(b) If the address is changed to another address in this state, the secretary of state shall must locate the precinct in which the voter maintains residence, if possible.  If the secretary of state is able to locate the precinct in which the voter maintains residence, the secretary must transmit the information about the changed address by electronic means to the county auditor of the county in which the new address is located.  For addresses for which the secretary of state is unable to determine the precinct, the secretary may forward information to the appropriate county auditors for individual review.  If the voter has not voted or submitted a voter registration application since the address change, upon receipt of the information, the county auditor shall must update the voter's address in the statewide voter registration system.  The county auditor shall must mail to the voter a notice stating the voter's name, address, precinct, and polling place, unless the voter's record is challenged due to a felony conviction, noncitizenship, name change, incompetence, or a court's revocation of voting rights of individuals under guardianship, in which case the auditor must not mail the notice.  The notice must advise the voter that the voter's voting address has been changed updated and that the voter must notify the county auditor within 21 days if the new address is not the voter's address of residence.  The notice must state that it must be returned if it is not deliverable to the voter at the named address.

 

(c) If the change of permanent address is to an address outside this state, the secretary of state shall must notify by electronic means the auditor of the county where the voter formerly maintained residence that the voter has moved to another state.  If the voter has not voted or submitted a voter registration application since the address change, the county auditor shall must promptly mail to the voter at the voter's new address a notice advising the voter that the voter's status in the statewide voter registration system will be changed to "inactive" unless the voter notifies the county auditor within 21 days that the voter is retaining the former address as the voter's address of residence, except that if the voter's record is challenged due to a felony conviction, noncitizenship, name change, incompetence, or a court's revocation of voting rights of individuals under guardianship, the auditor must not mail the notice.  If the notice is not received by the deadline, the county auditor shall must change the voter's status to "inactive" in the statewide voter registration system.

 

(d) If, in order to maintain voter registration records, the secretary of state enters an agreement to share information or data with an organization governed exclusively by a group of states, the secretary must first determine that the data security protocols are sufficient to safeguard the information or data shared.  If required by such an agreement, the secretary of state may share the following data from the statewide voter registration system and data released to the secretary of state under section 171.12, subdivision 7a:

 

(1) name;

 

(2) date of birth;

 

(3) address;

 

(4) driver's license or state identification card number;


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(5) the last four digits of an individual's Social Security number; and

 

(6) the date that an individual's record was last updated.

 

If the secretary of state enters into such an agreement, the secretary and county auditors must process changes updates to voter records based upon that data in accordance with this section.  Except as otherwise provided in this subdivision, when data is shared with the secretary of state by another state, the secretary of state must maintain the same data classification that the data had while it was in the possession of the state providing the data.

 

Sec. 17.  Minnesota Statutes 2024, section 201.14, is amended to read:

 

201.14 COURT ADMINISTRATOR OF DISTRICT COURT; REPORT CHANGES OF NAMES.

 

The state court administrator shall must regularly report by electronic means to the secretary of state the name, address, and, if available, driver's license or state identification card number of each individual, 18 years of age or over, whose name was changed since the last report, by marriage, divorce, or any order or decree of the court.  The secretary of state shall must determine if any of the persons individuals in the report are registered to vote under their previous name and shall must prepare a list of those registrants for each county auditor.  Upon receipt of the list, the county auditor shall make the change in must update the voter's record with this information and mail to the voter the notice of registration required by section 201.121, subdivision 2.  A notice must not be mailed if the voter's record is challenged due to a felony conviction, lack of United States citizenship, legal incompetence, or court‑ordered revocation of voting rights of persons under guardianship.

 

Sec. 18.  Minnesota Statutes 2024, section 201.161, subdivision 4, is amended to read:

 

Subd. 4.  Department of Human Services.  (a) If permitted by the federal government, the commissioner of human services, in consultation with the secretary of state, must ensure the applications described in subdivision 1, paragraph (a), clause (2), also serve as voter registration applications for applicants 18 years of age or older whose United States citizenship has been verified as part of the application.  The commissioner must transmit information required to register to vote, as prescribed by the secretary of state, daily by electronic means to the secretary of state for an individual whose United States citizenship has been verified.  The commissioner must submit data to the secretary of state identifying the total number of individuals who completed qualifying transactions under this section and the total number of individuals whose records were ultimately transferred for registration or updates to registrations.  At a minimum, the commissioner must submit the data to the secretary of state on the same day each month.

 

(b) No applicant may be registered to vote or have a registration updated under this subdivision until (1) the commissioner of human services has certified that the department's systems have been tested and can accurately provide the required data and accurately exclude from transmission data on individuals who have not provided documentary evidence of United States citizenship, and (2) the secretary of state has certified that the system for automatic registration of those applicants has been tested and is capable of properly determining whether an applicant is eligible to vote.  The department's systems must be tested and accurately provide the necessary data no later than September 30 of the year following the year in which federal approval or permission is given, contingent on appropriations being available for this purpose.

 

Sec. 19.  Minnesota Statutes 2024, section 201.161, subdivision 5, is amended to read:

 

Subd. 5.  Other agencies and units of government.  (a) The commissioner of management and budget must, in consultation with the secretary of state, identify any other state agency that is eligible to implement automatic voter registration.  The commissioner must consider a state agency eligible if the agency collects, processes, or stores the following information as part of providing assistance or services:  name, residential address, date of birth, and


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citizenship verification.  An eligible agency must submit a report to the governor and secretary of state no later than December 1, 2024, describing steps needed to implement automatic voter registration, barriers to implementation and ways to mitigate them, and applicable federal and state privacy protections for the data under consideration.  By June 1, 2025, the governor, at the governor's sole discretion, must make final decisions, as to which agencies will implement automatic voter registration by December 31, 2025, and which agencies could implement automatic voter registration if provided with additional resources or if the legislature changed the law to allow data to be used for automatic voter registration.  The governor must notify the commissioner of management and budget of the governor's decisions related to automatic voter registration.  By October 1, 2025, the commissioner of management and budget must report to the chairs and ranking minority members of the legislative committees with jurisdiction over election policy and finance.  The report must include:

 

(1) the agencies that will implement automatic voter registration by December 31, 2025;

 

(2) the agencies which could implement automatic voter registration if provided with additional resources and recommendations on the necessary additional resources; and

 

(3) the agencies that could implement automatic voter registration if the legislature changed the law to allow data to be used for voter registration and recommendations on how the law could be changed to allow the use of the data for this purpose.

 

(b) An agency may not begin verifying citizenship as part of an agency transaction for the sole purpose of providing automatic voter registration.  Once an agency has implemented automatic voter registration, it must continue to provide automatic voter registration unless otherwise expressly required by law.  For each individual whose United States citizenship has been verified, the commissioner or agency head must transmit information required to register to vote, as prescribed by the secretary of state, to the secretary of state by electronic means.  The governor must determine the frequency of the transmissions for each agency.

 

(c) No applicant may be registered to vote or have a registration updated under this subdivision until (1) the agency's commissioner or agency head has certified that the necessary systems have been tested and can accurately provide the required data and accurately exclude from transmission data on individuals whose United States citizenship has not been verified, and (2) the secretary of state has certified that the system for automatic registration of those applicants has been tested and is capable of properly determining whether an applicant is eligible to vote.

 

Sec. 20.  Minnesota Statutes 2024, section 201.161, subdivision 8, is amended to read:

 

Subd. 8.  Effective date of registration.  Unless the applicant declines registration, the effective date for the voter registration or update to a voter registration is the date that the county auditor processes the application.  This subdivision does not limit the ability of a person to register to vote or update their registration on election day as provided in section 201.061, subdivision 3.  Any person who submits a qualifying application under subdivision 1 that is dated during the 20 days before an election must be provided, at the time of application, with a notice advising the applicant of the procedures to register to vote or update a voter registration on election day.

 

Sec. 21.  Minnesota Statutes 2024, section 201.162, is amended to read:

 

201.162 DUTIES OF STATE AGENCIES.

 

The commissioner or chief administrative officer of each state agency or community-based public agency or nonprofit corporation that contracts with the state agency to carry out obligations of the state agency shall must provide voter registration services for employees and the public, including, as applicable, automatic voter registration or information on voter eligibility and, registration procedures, and updating registrations as required under section 201.161.  A person An individual may complete a voter registration application or apply to change


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update a voter registration name or address if the person individual has the proper qualifications on the date of application.  Nonpartisan voter registration assistance, including routinely asking members of the public served by the agency whether they would like to register to vote or update a voter registration and, if necessary, assisting them in preparing the registration forms must be part of the job of appropriate agency employees.

 

Sec. 22.  Minnesota Statutes 2024, section 201.225, subdivision 2, is amended to read:

 

Subd. 2.  Technology requirements.  An electronic roster must:

 

(1) be able to be loaded with a data file that includes voter registration data in a file format prescribed by the secretary of state;

 

(2) allow for data to be exported in a file format prescribed by the secretary of state;

 

(3) allow for data to be entered manually or by scanning a Minnesota driver's license or identification card to locate a voter record or populate a voter registration application that would be printed and signed and dated by the voter.  The printed registration application can be a printed form, a label printed with voter information to be affixed to a preprinted form, a combination of a form and label, or an electronic record that the voter signs electronically and is printed following its completion at the polling place;

 

(4) allow an election judge to update data that was populated from a scanned driver's license or identification card;

 

(5) cue an election judge to ask for and input data that is not populated from a scanned driver's license or identification card that is otherwise required to be collected from the voter or an election judge;

 

(6) immediately alert the election judge if the voter has provided information that indicates that the voter is not eligible to vote;

 

(7) immediately alert the election judge if the electronic roster indicates that a voter has already voted in that precinct, the voter's registration status is challenged, or it appears the voter maintains residence in a different precinct;

 

(8) provide immediate instructions on how to resolve a particular type of challenge when a voter's record is challenged;

 

(9) provide for a printed voter signature certificate, containing the voter's name, address of residence, date of birth, voter identification number, the oath required by section 204C.10, and a space for the voter's original signature.  The printed voter signature certificate can be a printed form, a label printed with the voter's information to be affixed to the oath, or an electronic record that the voter signs electronically and is printed following its completion at the polling place;

 

(10) contain only preregistered registered voters within the precinct, and not contain preregistered registered voter data on voters registered outside of the precinct, unless being utilized for a combined polling place pursuant to section 204B.14, subdivision 2, absentee or early voting under chapter 203B or for mail balloting on election day pursuant to section 204B.45, subdivision 2a;

 

(11) be only networked within the polling location on election day, except for the purpose of updating absentee ballot records;

 

(12) meet minimum security, reliability, and networking standards established by the Office of the Secretary of State in consultation with the Department of Information Technology Services;


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(13) be capable of providing a voter's correct polling place; and

 

(14) perform any other functions necessary for the efficient and secure administration of the participating election, as determined by the secretary of state.

 

Electronic rosters used only for election day registration registering voters and updating voters' registration do not need to comply with clauses (1), (8), and (10).  Electronic rosters used only for preregistered voter processing voters who are registered and do not need to update a registration do not need to comply with clauses (4) and (5).

 

EFFECTIVE DATE.  This section is effective June 1, 2025.

 

Sec. 23.  Minnesota Statutes 2024, section 201.225, subdivision 5, is amended to read:

 

Subd. 5.  Election day.  (a) Precincts may use electronic rosters for registering voters and updating registrations on election day registration, to process preregistered registered voters, or both.  The printed election day registration applications must be reviewed when electronic records are processed in the statewide voter registration system.  The election judges shall must determine the number of ballots to be counted by counting the number of original voter signature certificates or the number of voter receipts.

 

(b) Each precinct using electronic rosters shall must have a paper backup system approved by the secretary of state present at the polling place to use in the event that the election judges are unable to use the electronic roster.

 

Sec. 24.  Minnesota Statutes 2024, section 201.275, is amended to read:

 

201.275 INVESTIGATIONS; PROSECUTIONS.

 

(a) A law enforcement agency that is notified by affidavit of an alleged violation of this chapter shall must promptly investigate.  Upon receiving an affidavit alleging a violation of this chapter, a county attorney shall must promptly forward it to a law enforcement agency with jurisdiction for investigation.  If there is probable cause for instituting a prosecution, the county attorney shall must proceed according to the generally applicable standards regarding the prosecutorial functions and duties of a county attorney, provided that the county attorney is not required to proceed with the prosecution if the complainant withdraws the allegation.  A county attorney who refuses or intentionally fails to faithfully perform this or any other duty imposed by this chapter is guilty of a misdemeanor and upon conviction shall must forfeit office.

 

(b) Willful violation of this chapter by any public employee constitutes just cause for suspension without pay or dismissal of the public employee.

 

(c) Where the matter relates to a voter registration application submitted electronically through the secure website established in section 201.061, subdivision 1, alleged violations of this chapter may be investigated and prosecuted in the county in which the individual registered, updated a voter registration, or attempted to register.

 

Sec. 25.  Minnesota Statutes 2024, section 203B.04, subdivision 1, is amended to read:

 

Subdivision 1.  Application procedures.  (a) Except as otherwise allowed by subdivision 2 or by section 203B.11, subdivision 4, an application for absentee ballots for any election may be submitted at any time not less than one day before the day of that election.  The county auditor shall prepare absentee ballot application forms in the format provided by the secretary of state and shall furnish them to any person on request.  By January 1 of each even-numbered year, the secretary of state shall make the forms to be used available to auditors through electronic means.  An application submitted pursuant to this subdivision shall be in writing.  An application may be submitted in person, by electronic facsimile device, by electronic mail, or by mail to:

 

(1) the county auditor of the county where the applicant maintains residence; or


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(2) the municipal clerk of the municipality, or school district if applicable, where the applicant maintains residence.

 

(b) An absentee ballot application may alternatively be submitted electronically through a secure website that shall be maintained by the secretary of state for this purpose.  Notwithstanding paragraph (d), the secretary of state must require applicants using the website to submit the applicant's email address and the applicant's:

 

(1) verifiable Minnesota driver's license number, or Minnesota state identification card number, or; and

 

(2) the last four digits of the applicant's Social Security number.

 

If an applicant does not possess both types of documents, the applicant must include the number for one type of document and must affirmatively certify that the applicant does not possess the other type of documentation.  This paragraph does not apply to a town election held in March.

 

(c) An application submitted electronically under this paragraph (b) may only be transmitted to the county auditor for processing if the secretary of state has verified the application information matches the information in a government database associated with the applicant's driver's license number, state identification card number, or Social Security number.  The secretary of state must review all unverifiable applications for evidence of suspicious activity and must forward any such application to an appropriate law enforcement agency for investigation.

 

(d) An application shall be approved if it is timely received, signed and dated by the applicant, contains the applicant's name and residence and mailing addresses, date of birth, and at least one of the following:

 

(1) the applicant's Minnesota driver's license number;

 

(2) Minnesota state identification card number;

 

(3) the last four digits of the applicant's Social Security number; or

 

(4) a statement that the applicant does not have any of these numbers.

 

(e) To be approved, the application must contain an oath that the information contained on the form is accurate, that the applicant is applying on the applicant's own behalf, and that the applicant is signing the form under penalty of perjury.

 

(f) An applicant's full date of birth, Minnesota driver's license or state identification number, and the last four digits of the applicant's Social Security number must not be made available for public inspection.  An application may be submitted to the county auditor or municipal clerk by an electronic facsimile device.  An application mailed or returned in person to the county auditor or municipal clerk on behalf of a voter by a person other than the voter must be deposited in the mail or returned in person to the county auditor or municipal clerk within ten days after it has been dated by the voter and no later than six days before the election.

 

(g) An application under this subdivision may contain an application under subdivision 5 to automatically receive an absentee ballot.  The application form must not be preprinted in a manner that requires the applicant to affirmatively opt out of being assigned to a permanent absentee voter list.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.


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Sec. 26.  Minnesota Statutes 2024, section 203B.04, subdivision 4, is amended to read:

 

Subd. 4.  Registration at time of application; updating registration.  An eligible voter who is not registered to vote or needs to update the voter's registration but who is otherwise eligible to vote by absentee ballot may register or update a registration by including a completed voter registration application with the absentee ballot.  The individual shall must present proof of residence as required by section 201.061, subdivision 3, to the individual who witnesses the marking of the absentee ballots.  A military voter, as defined in section 203B.01, may register in this manner if voting pursuant to sections 203B.04 to 203B.15, or may register pursuant to sections 203B.16 to 203B.27.

 

Sec. 27.  Minnesota Statutes 2024, section 203B.06, subdivision 4, is amended to read:

 

Subd. 4.  Registration check.  Upon receipt of an application for ballots, the county auditor, municipal clerk, or election judge acting pursuant to section 203B.11, who receives the application shall must determine whether the applicant is a registered voter.  If the applicant is not registered to vote or needs to update the voter's registration, the county auditor, municipal clerk, or election judge shall must include a voter registration application among the election materials provided to the applicant.

 

Sec. 28.  Minnesota Statutes 2024, section 203B.07, subdivision 1, is amended to read:

 

Subdivision 1.  Delivery of envelopes, directions.  The county auditor or the municipal clerk shall must prepare, print, and transmit a return envelope, a signature envelope, a ballot envelope, and a copy of the directions for casting an absentee ballot to each applicant whose application for absentee ballots is accepted pursuant to section 203B.04.  The county auditor or municipal clerk shall must provide first class postage for the return envelope.  The directions for casting an absentee ballot shall must be printed in at least 14-point bold type with heavy leading and may be printed on the ballot envelope.  When a person requests the directions in Braille or on audio file, the county auditor or municipal clerk shall must provide them in the form requested.  The secretary of state shall must prepare Braille and audio file copies and make them available.

 

When a voter registration application is sent to the applicant as provided in section 203B.06, subdivision 4, the directions or registration application shall must include instructions for registering to vote or updating a voter's registration.

 

Sec. 29.  Minnesota Statutes 2024, section 203B.07, subdivision 3, is amended to read:

 

Subd. 3.  Eligibility certificate.  A certificate of eligibility to vote by absentee ballot shall must be printed on the back of the signature envelope.  The certificate shall must contain space for the voter's Minnesota driver's license number, state identification number, or the last four digits of the voter's Social Security number, or to indicate that the voter does not have one of these numbers.  The space must be designed to ensure that the voter provides the same type of identification as provided on the voter's absentee ballot application for purposes of comparison.  The certificate must also contain a statement to be signed and sworn by the voter indicating that the voter meets all of the requirements established by law for voting by absentee ballot and space for a statement signed by a person who is at least 18 years of age on or before the day of the election and a citizen of the United States or by a notary public or other individual authorized to administer oaths stating that:

 

(1) the ballots were displayed to that individual unmarked;

 

(2) the voter marked the ballots in that individual's presence without showing how they were marked, or, if the voter was physically unable to mark them, that the voter directed another individual to mark them; and

 

(3) if the voter was not previously registered or needed to update the voter's registration, the voter has provided proof of residence as required by section 201.061, subdivision 3.

 

EFFECTIVE DATE.  This section is effective June 1, 2026.


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Sec. 30.  Minnesota Statutes 2024, section 203B.08, subdivision 1, is amended to read:

 

Subdivision 1.  Marking and return by voter.  (a) An eligible voter who receives absentee ballots as provided in this chapter shall mark them in the manner specified in the directions for casting the absentee ballots.  The return signature envelope containing marked ballots may be mailed as provided in the directions for casting the absentee ballots, may be left with the county auditor or municipal clerk who transmitted the absentee ballots to the voter, or may be left in a drop box as provided in section 203B.082.  If delivered in person, the return signature envelope must be submitted to the county auditor or municipal clerk by 8:00 5:00 p.m. on election day.

 

(b) The voter may designate an agent to deliver in person the sealed absentee ballot return envelope to the county auditor or municipal clerk or to deposit the return envelope in the mail.  An agent may deliver or mail the return envelopes of not more than three voters in any election.  Any person designated as an agent who tampers with either the return envelope or the voted ballots or does not immediately mail or deliver the return envelope to the county auditor or municipal clerk is guilty of a misdemeanor.

 

Sec. 31.  Minnesota Statutes 2024, section 203B.08, subdivision 3, is amended to read:

 

Subd. 3.  Procedures on receipt of ballots.  When absentee ballots are returned to a county auditor or municipal clerk, that official shall stamp or initial and date the return signature envelope and place it in a locked ballot container or other secured and locked space with other return signature envelopes received by that office.  Within five days after receipt, the county auditor or municipal clerk shall deliver to the ballot board all ballots signature envelopes received, except that during the 14 days immediately preceding an election, the county auditor or municipal clerk shall deliver all ballots signature envelopes received to the ballot board within three days.  Ballots Signature envelopes received on election day after 8:00 p.m. shall be marked as received late by the county auditor or municipal clerk, and must not be delivered to the ballot board.

 

Sec. 32.  Minnesota Statutes 2024, section 203B.081, subdivision 4, is amended to read:

 

Subd. 4.  Temporary locations.  (a) A county auditor or municipal clerk authorized under section 203B.05 to administer voting before election day may designate additional polling places with days and hours that differ from those required by section 203B.085.  A designation authorized by this subdivision must be made at least 47 days before the election.  As soon as practicable and no later than five business days after designating an additional polling place under this subdivision, the county auditor or municipal clerk must post on the county's or municipality's website the address of the polling place and the dates and times the polling place will be available for voting.  The county auditor or municipal clerk must provide notice to the secretary of state at the time that the designations are made.  As soon as practicable and no later than five business days after receiving the notice, the secretary of state must post on the secretary of state's website the address of the polling place and the dates and times the polling place will be available for voting.

 

(b) At the request of a federally recognized Indian Tribe with a reservation or off-reservation Tribal lands in the county, the county auditor must establish an additional polling place for at least one day on the Indian reservation or off-reservation Tribal lands on a site agreed upon by the Tribe and the county auditor that is accessible to the county auditor by a public road.

 

(c) At the request of a postsecondary institution or the student government organization of a postsecondary institution in the county or municipality, the county auditor or a municipal clerk authorized to administer absentee voting under section 203B.05 must establish an additional temporary polling place for the state general election or the odd-year city general election for at least one day at a location agreed upon by the institution and the county auditor or municipal clerk that:

 

(1) is accessible to the public;


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(2) satisfies the requirements of state and federal law; and

 

(3) is on the institution's campus or is within one-half mile of the institution's campus and is reasonably accessible to the institution's students.

 

A request must be made no later than May 31 before an election and the request is valid only for that election.  This paragraph only applies to a postsecondary institution that provides on-campus student housing to 100 or more students.  Nothing in this paragraph prevents the county auditor or municipal clerk from engaging in a dialogue with the entity that made the request regarding potential alternative locations for a temporary polling place that does not meet the requirements of clause (3).  An entity that made a request for a temporary polling place may withdraw its request by notifying the county auditor or municipal clerk.

 

EFFECTIVE DATE.  This section is effective September 1, 2025.

 

Sec. 33.  Minnesota Statutes 2024, section 203B.121, subdivision 4, is amended to read:

 

Subd. 4.  Opening of envelopes.  (a) After the close of business on the 19th day before the election, the ballots from secrecy ballot envelopes within the signature envelopes marked "Accepted" may be opened, duplicated as needed in the manner provided in section 206.86, subdivision 5, initialed by the members of the ballot board, and deposited in the appropriate ballot box.  If more than one voted ballot is enclosed in the ballot envelope, the ballots must be returned in the manner provided by section 204C.25 for return of spoiled ballots, and may not be counted.

 

(b) Accepted signature envelopes must be segregated by precinct and processed in accordance with this subdivision on a precinct-by-precinct basis.  Precincts within a combined polling place established in section 205A.11, subdivision 2, may be processed together.  At each step, members of the ballot board must notify the official responsible for the ballot board if there is a discrepancy in any count required by paragraphs (c) to (e) and note it in the ballot board incident log.

 

(c) Before opening accepted signature envelopes, two members of the ballot board must count and record the number of envelopes and ensure that the count matches either the number of accepted signature envelopes provided by the official responsible for the ballot board or the number of signature envelopes accepted by the ballot board that day.

 

(d) Two members of the ballot board must remove the ballots from the ballot envelopes.  The governing body responsible for the ballot board must not dispose of or destroy any ballot envelopes until 48 hours after the deadline for bringing an election contest expires or, if a contest is filed, 48 hours after completion of the contest and any related appeals, whichever is later.

 

(e) After ballots have been removed from the ballot envelopes, two members of the ballot board must count and record the number of ballots to ensure the count matches the number of accepted signature envelopes, accounting for any empty envelopes or spoiled ballots, which must be noted on the ballot board incident log.

 

Sec. 34.  Minnesota Statutes 2024, section 203B.121, subdivision 5, is amended to read:

 

Subd. 5.  Storage and counting of absentee ballots.  (a) On a day on which absentee ballots are inserted into a ballot box, two members of the ballot board must:

 

(1) remove the ballots from the ballot box at the end of the day;

 

(2) without inspecting the ballots, ensure that the number of ballots removed from the ballot box is equal to the number of voters whose absentee ballots were accepted from the tally in subdivision 4 that were to be inserted into the ballot box that day; and


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(3) seal and secure all voted and unvoted ballots present in that location at the end of the day.

 

(b) After the polls have closed on election day, two members of the ballot board must count the ballots, tabulating the vote in a manner that indicates each vote of the voter and the total votes cast for each candidate or question.  In state primary and state general elections, the results must indicate the total votes cast for each candidate or question in each precinct and report the vote totals tabulated for each precinct.  The count must be recorded on a summary statement in substantially the same format as provided in section 204C.26.  The ballot board shall must submit at least one completed summary statement to the county auditor or municipal clerk.  The county auditor or municipal clerk may require the ballot board to submit a sufficient number of completed summary statements to comply with the provisions of section 204C.27, or the county auditor or municipal clerk may certify reports containing the details of the ballot board summary statement to the recipients of the summary statements designated in section 204C.27.

 

In state primary and state general elections, These vote totals shall must be added to the vote totals on the summary statements of the returns for the appropriate precinct.  In other elections, these vote totals may be added to the vote totals on the summary statement of returns for the appropriate precinct or may be reported as a separate total.

 

The count shall must be public.  No vote totals from ballots may be made public before the close of voting on election day.

 

(c) In addition to the requirements of paragraphs (a) and (b), if the task has not been completed previously, the members of the ballot board must verify as soon as possible, but no later than 24 hours after the end of the hours for voting, that voters whose absentee ballots arrived after the rosters were marked or supplemental reports were generated and whose ballots were accepted did not vote in person on election day.  An absentee ballot submitted by a voter who has voted in person on election day must be rejected.  All other accepted absentee ballots must be opened in accordance with the procedures outlined in subdivision 4, except for the absentee ballots cast using the alternative procedure in section 203B.081, subdivision 3, duplicated if necessary, and counted by members of the ballot board.  The vote totals from these ballots must be incorporated into the totals with the other absentee ballots and handled according to paragraph (b).

 

Sec. 35.  Minnesota Statutes 2024, section 203B.17, subdivision 3, is amended to read:

 

Subd. 3.  Website security.  (a) The secretary of state shall maintain a log of each Internet Protocol address used to submit an absentee ballot application electronically under this section, and must monitor the log, volume of website use, and other appropriate indicators for suspicious activity.  Evidence of suspicious activity that cannot be resolved by the secretary of state must be forwarded to an appropriate law enforcement agency for investigation.

 

(b) The electronic absentee ballot application system must be secure.  The website shall maintain the confidentiality of all users and preserve the integrity of the data submitted.  The secretary of state shall employ security measures to ensure the accuracy and integrity of absentee ballot applications submitted electronically pursuant to this section.  All data sent and received through the website must be encrypted.

 

(c) The secretary of state must provide ongoing testing and monitoring to ensure continued security.  The secretary of state must work with the chief information officer as defined in section 16E.01, subdivision 1, or another security expert to annually assess the security of the system.  The security assessment must include a certification signed by the secretary of state that states that adequate security measures are in place.  The certification must also be signed by the chief information officer or another security expert affirming that the assessment is accurate.  The secretary of state must submit the security assessment to the legislative auditor and to


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the chairs and ranking minority members of the committees in the senate and house of representatives with primary jurisdiction over elections by January 1 of each year, except that the first annual security assessment must be submitted by September 30, 2014, and no report is required for January 1, 2015.

 

(d) In developing the electronic absentee ballot application system, the secretary of state must consult with the chief information officer or the chief's designee to ensure the site is secure.

 

Sec. 36.  Minnesota Statutes 2024, section 203B.23, subdivision 2, is amended to read:

 

Subd. 2.  Duties.  (a) The absentee ballot board must examine all returned absentee ballot envelopes for ballots issued under sections 203B.16 to 203B.27 and accept or reject the absentee ballots in the manner provided in section 203B.24.  If the certificate of voter eligibility is not printed on the signature envelope, the certificate must be attached to the ballot envelope.

 

(b) The absentee ballot board must immediately examine the signature envelopes or certificates of voter eligibility that are attached to the ballot envelopes and mark them "accepted" or "rejected" during the 45 days before the election.  If an envelope has been rejected at least five days before the election, the ballots in the envelope must be considered spoiled ballots and the official in charge of the absentee ballot board must provide the voter with a replacement absentee ballot and envelopes in place of the spoiled ballot.

 

(c) If a county has delegated the responsibility for administering absentee balloting to a municipality under section 203B.05, accepted absentee ballots must be delivered to the appropriate municipality's absentee ballot board, except as otherwise provided in this paragraph.  If a municipality and county agree that the county's ballot board retains responsibility for ballots issued pursuant to sections 203B.16 to 203B.27, absentee ballots issued pursuant to these sections that are accepted must be opened, counted, and retained by the county's absentee ballot board.  The absentee ballot board with the authority to open and count the ballots must do so in accordance with section 203B.121, subdivisions 4 and 5.

 

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

 

Sec. 37.  Minnesota Statutes 2024, section 203B.29, subdivision 1, is amended to read:

 

Subdivision 1.  Emergency response providers.  Any eligible Minnesota voter who is a trained or certified emergency response provider or utility worker who is deployed in response to any state of emergency declared by the President of the United States or any governor of any state within the United States during the time period authorized by law for absentee voting or on election day may request that ballots, instructions, and a certificate of voter eligibility be transmitted to the voter electronically.  Upon receipt of a properly completed application requesting electronic transmission, the county auditor must electronically transmit the requested materials to the voter.  The absentee ballot application deadlines in section 203B.04, subdivision 1, do not apply to this subdivision.  The county auditor is not required to provide return postage to voters to whom ballots are transmitted electronically.

 

Sec. 38.  Minnesota Statutes 2024, section 203B.29, subdivision 2, is amended to read:

 

Subd. 2.  Reasonable accommodation for voter with disability.  Any eligible Minnesota voter with a print disability, including any voter with disabilities that interfere with the effective reading, writing, or use of printed materials, may request that ballots, instructions, and a certificate of voter eligibility be transmitted to the voter electronically in an accessible format that meets Election Assistance Commission minimum accessibility requirements.  Upon receipt of a properly completed application requesting electronic transmission, the county auditor shall electronically transmit the requested materials to the voter.  The absentee ballot application deadlines in section 203B.04, subdivision 1, do not apply to this subdivision.  The county auditor must also mail the voter materials required under section 203B.07.


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Sec. 39.  Minnesota Statutes 2024, section 203B.30, subdivision 2, is amended to read:

 

Subd. 2.  Voting procedure.  (a) When a voter appears in an early voting polling place, the voter must state the voter's name, address, and, if requested, the voter's date of birth to the early voting official.  The early voting official must confirm that the voter's registration is current in the statewide voter registration system and that the voter has not already cast a ballot in the election.  If the voter's status is challenged, the voter may resolve the challenge as provided in section 204C.12.  An individual who is not registered to vote or must register and a voter whose name or address has changed must register update the voter's registration in the manner provided in section 201.061, subdivision 3.  A voter who has already cast a ballot in the election must not be provided with a ballot.

 

(b) Each voter must sign the certification provided in section 204C.10.  The signature of an individual on the voter's certificate and the issuance of a ballot to the individual is evidence of the intent of the individual to vote at that election.  After the voter signs the certification, two early voting officials must initial the ballot and issue it to the voter.  The voter must immediately retire to a voting station or other designated location in the polling place to mark the ballot.  The voter must not take a ballot from the polling place.  If the voter spoils the ballot, the voter may return it to the early voting official in exchange for a new ballot.  After completing the ballot, the voter must deposit the ballot into the ballot counter and ballot box.  The early voting official must immediately record that the voter has voted in the manner provided in section 203B.121, subdivision 3.

 

EFFECTIVE DATE.  This section is effective upon the revisor of statutes' receipt of the early voting certification and applies to elections held on or after the 85th day after the revisor of statutes receives the certification.

 

Sec. 40.  Minnesota Statutes 2024, section 203B.30, subdivision 3, is amended to read:

 

Subd. 3.  Processing of ballots.  Each day when early voting occurs, the early voting officials must:

 

(1) remove and secure ballots cast during the early voting period following the procedures in section 203B.121, subdivision 5, paragraph (a)., noting the date, voting location, and number of ballots cast;

 

(2) without inspecting the ballots, ensure that the number of ballots removed from the ballot box is equal to the number of voter certificates that were signed by voters in subdivision 2, paragraph (b); and

 

(3) seal and secure all voted and unvoted ballots present in that location at the end of the day. 

 

The absentee ballot board must count the ballots after the polls have closed on election day following the procedures in section 203B.121, subdivision 5, paragraph (b).

 

EFFECTIVE DATE.  This section is effective upon the revisor of statutes' receipt of the early voting certification and applies to elections held on or after the 85th day after the revisor of statutes receives the certification.

 

Sec. 41.  Minnesota Statutes 2024, section 204B.06, subdivision 1, is amended to read:

 

Subdivision 1.  Form of affidavit.  (a) An affidavit of candidacy shall state the name of the office sought and, except as provided in subdivision 4, shall state that the candidate:

 

(1) is an eligible voter;

 

(2) has no other affidavit on file as a candidate for any office at the same primary or next ensuing general election, except as authorized by subdivision 9; and


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(3) is, or will be on assuming the office, 21 years of age or more, and will have maintained residence in the district from which the candidate seeks election for 30 days before the general election.

 

(b) An affidavit of candidacy must include a statement that the candidate's name as written on the affidavit for ballot designation is the candidate's true name or the name by which the candidate is commonly and generally known in the community.  and:

 

(1) the phonetic spelling or an explanation for the pronunciation of the full name designated for the ballot; or

 

(2) a certification that the candidate is directing the official responsible for programming materials for the election to use the applicable technology's default pronunciation of the candidate's name.

 

(c) An affidavit of candidacy for partisan office shall also state the name of the candidate's political party or political principle, stated in three words or less.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.

 

Sec. 42.  Minnesota Statutes 2024, section 204B.06, subdivision 1b, is amended to read:

 

Subd. 1b.  Address, electronic mail address, and telephone number.  (a) An affidavit of candidacy must state a telephone number where the candidate can be contacted.  An affidavit must also state the candidate's or campaign's nongovernment issued electronic mail address or an attestation that the candidate and the candidate's campaign do not possess an electronic mail address.  Except for affidavits of candidacy for (1) judicial office, (2) the office of county attorney, or (3) county sheriff, an affidavit must also state the candidate's current address of residence as determined under section 200.031, or at the candidate's request in accordance with paragraph (c), the candidate's campaign contact address.  When filing the affidavit, the candidate must present the filing officer with the candidate's valid driver's license or state identification card that contains the candidate's current address of residence, or documentation of proof of residence authorized for election day registration in section 201.061, subdivision 3, paragraph (a), clause (2); clause (3), item (ii); or paragraph (d).  If an original bill is shown, the due date on the bill must be within 30 days before or after the beginning of the filing period or, for bills without a due date, dated within 30 days before the beginning of the filing period.  If the address on the affidavit and the documentation do not match, the filing officer must not accept the affidavit.  The form for the affidavit of candidacy must allow the candidate to request, if eligible, that the candidate's address of residence be classified as private data, and to provide the certification required under paragraph (c) for classification of that address.

 

(b) If an affidavit for an office where a residency requirement must be satisfied by the close of the filing period is filed as provided by paragraph (c), the filing officer must, within one business day of receiving the filing, determine whether the address provided in the affidavit of candidacy is within the area represented by the office the candidate is seeking.  For all other candidates who filed for an office whose residency requirement must be satisfied by the close of the filing period, a registered voter in this state may request in writing that the filing officer receiving the affidavit of candidacy review the address as provided in this paragraph, at any time up to one day after the last day for filing for office.  If requested, the filing officer must determine whether the address provided in the affidavit of candidacy is within the area represented by the office the candidate is seeking.  If the filing officer determines that the address is not within the area represented by the office, the filing officer must immediately notify the candidate and the candidate's name must be removed from the ballot for that office.  A determination made by a filing officer under this paragraph is subject to judicial review under section 204B.44.

 

(c) If the candidate requests that the candidate's address of residence be classified as private data, the candidate must list the candidate's address of residence on a separate form to be attached to the affidavit.  The candidate must also certify on the affidavit that either:  (1) a police report has been submitted, an order for protection has been issued, or the candidate has a reasonable fear in regard to the safety of the candidate or the candidate's family; or (2)


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the candidate's address is otherwise private pursuant to Minnesota law.  The address of residence provided by a candidate who makes a request for classification on the candidate's affidavit of candidacy and provides the certification required by this paragraph is classified as private data, as defined in section 13.02, subdivision 12, but may be reviewed by the filing officer as provided in this subdivision.

 

(d) The requirements of this subdivision do not apply to affidavits of candidacy for a candidate for:  (1) judicial office; (2) the office of county attorney; or (3) county sheriff.

 

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

 

Sec. 43.  Minnesota Statutes 2024, section 204B.07, subdivision 2, is amended to read:

 

Subd. 2.  Petitions for presidential electors and alternates.  (a) This subdivision section does not apply to candidates for presidential elector or alternate nominated by major political parties.  Major party candidates for presidential elector or alternate are certified under section 208.03.  Other presidential electors or alternates are nominated by petition pursuant to this section. 

 

(b) On petitions nominating presidential electors or alternates, the names of the candidates for president and vice-president shall be added to the political party or political principle stated on the petition.  One petition may be filed to nominate a slate of presidential electors equal in number to the number of electors to which the state is entitled and an alternate for each elector nominee.

 

(c) In addition to the petition, each nominated candidate must submit a signed, notarized affidavit of candidacy for president or vice president that includes the following information:

 

(1) the candidate's name in the form as it should appear on the ballot;

 

(2) the candidate's campaign address, website, phone number, and email address;

 

(3) the name of the political party or political principle stated on the petition;

 

(4) the office sought by the candidate; and

 

(5) a declaration that the candidate is aware of and will follow all applicable election laws and campaign finance laws. 

 

Sec. 44.  Minnesota Statutes 2024, section 204B.09, subdivision 1a, is amended to read:

 

Subd. 1a.  Absent candidates.  (a) A candidate for special district, county, state, or federal office who will be absent from the state during the filing period may submit a properly executed affidavit of candidacy, the appropriate filing fee, and any necessary petitions in person to the filing officer.  The candidate shall state in writing the reason for being unable to submit the affidavit during the filing period.  The affidavit, filing fee, if any, and petitions must be submitted to the filing officer during the seven days immediately preceding the candidate's absence from the state.  Nominating petitions may be signed during the 14 days immediately preceding the date when the affidavit of candidacy is filed.

 

(b) A candidate for special district, county, state, or federal office who will be absent from the state during the entire filing period or who must leave the state for the remainder of the filing period and who certifies to the secretary of state that the circumstances constitute an emergency and were unforeseen, may submit a properly executed affidavit of candidacy by facsimile device or by transmitting electronically a scanned image of the affidavit and proof of residence required in section 204B.06, subdivision 1b, to the secretary of state during the filing period.  The candidate shall state in writing the specific reason for being unable to submit the affidavit by mail or by hand


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during the filing period or in person prior to the start of the filing period.  The affidavit of candidacy, filing fee, if any, and any necessary petitions must be received by the secretary of state by 5:00 p.m. on the last day for filing.  If the candidate is filing for a special district or county office, the secretary of state shall forward the affidavit of candidacy, filing fee, if any, and any necessary petitions to the appropriate filing officer.  Copies of a proof of residence submitted under this subdivision are private data on individuals, as defined in section 13.02, subdivision 12.

 

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

 

Sec. 45.  Minnesota Statutes 2024, section 204B.09, subdivision 2, is amended to read:

 

Subd. 2.  Other elections.  (a) Affidavits of candidacy and nominating petitions for city, town or other elective offices shall be filed during the time and with the official specified in chapter 205 or other applicable law or charter, except as provided for a special district candidate under subdivision 1a.  Affidavits of candidacy and applications filed on behalf of eligible voters for school board office shall be filed during the time and with the official specified in chapter 205A or other applicable law.  Affidavits of candidacy, including proof of residence required in section 204B.06, subdivision 1b, and nominating petitions filed under this subdivision must be submitted by mail or by hand, notwithstanding chapter 325L, or any other law to the contrary, and must be received by the appropriate official within the specified time for the filing of affidavits and petitions for the office.  Copies of a proof of residence submitted by mail are private data on individuals, as defined in section 13.02, subdivision 12. 

 

(b) The official receiving the filing shall notify the official responsible for preparing the ballot of the names of the candidates placed on the ballot, any changes to candidates, or other information necessary to prepare the ballot.  The notification must be made within one business day of receiving the filing or change or immediately following the close of the filing period, whichever is sooner, unless the clerk and official agree to an alternative notification timeline.

 

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

 

Sec. 46.  Minnesota Statutes 2024, section 204B.09, subdivision 3, is amended to read:

 

Subd. 3.  Write-in candidates.  (a) A candidate for county, state, or federal office who wants write-in votes for the candidate to be counted must file a written request with the filing office for the office sought not more than 84 days before the primary and no later than the seventh 19th day before the general election.  The filing officer shall provide copies of the form to make the request.  The filing officer shall not accept a written request later than 5:00 p.m. on the last day for filing a written request.

 

(b) The governing body of a statutory or home rule charter city may adopt a resolution governing the counting of write-in votes for local elective office.  The resolution may:

 

(1) require the candidate to file a written request with the chief election official no later than the seventh 19th day before the city election if the candidate wants to have the candidate's write-in votes individually recorded; or

 

(2) require that write-in votes for an individual candidate only be individually recorded if the total number of write-in votes for that office is equal to or greater than the fewest number of non-write-in votes for a ballot candidate.

 

If the governing body of the statutory or home rule charter city adopts a resolution authorized by this paragraph, the resolution must be adopted and the city clerk must notify the county auditor before the first day of filing for office.  A resolution adopted under this paragraph remains in effect until a subsequent resolution on the same subject is adopted by the governing body of the statutory or home rule charter city.


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(c) The governing body of a township, school district, hospital district, park district, soil and water district, or other ancillary elected district may adopt a resolution governing the counting of write-in votes for local elective office.  The resolution may require that write-in votes for an individual candidate only be individually recorded if the total number of write-in votes for that office is equal to or greater than the fewest number of non-write-in votes for a ballot candidate.  If a governing body adopts a resolution authorized by this paragraph, the resolution must be adopted and the clerk must notify the county auditor before the first day of filing for office.  A resolution adopted under this paragraph remains in effect until a subsequent resolution on the same subject is adopted by the governing body.

 

(d) A candidate for president of the United States who files a request under this subdivision must include the name of a candidate for vice president of the United States.  The request must also include the name of at least one candidate for presidential elector.  The total number of names of candidates for presidential elector on the request may not exceed the total number of electoral votes to be cast by Minnesota in the presidential election.

 

(e) A candidate for governor who files a request under this subdivision must file jointly with another individual seeking nomination as a candidate for lieutenant governor.  A candidate for lieutenant governor who files a request under this subdivision must file jointly with another individual seeking nomination as a candidate for governor.

 

EFFECTIVE DATE.  This section is effective on January 1, 2026.

 

Sec. 47.  Minnesota Statutes 2024, section 204B.14, subdivision 2, is amended to read:

 

Subd. 2.  Separate precincts; combined polling place.  (a) The following shall constitute at least one election precinct:

 

(1) each city ward; and

 

(2) each town and each statutory city.

 

(b) A single, accessible, combined polling place may be established no later than November 1 if a presidential nomination primary is scheduled to occur in the following year or May 1 of any other year:

 

(1) for any city of the third or fourth class, any town, or any city having territory in more than one county, in which all the voters of the city or town shall cast their ballots;

 

(2) for contiguous precincts in the same municipality;

 

(3) for up to four contiguous municipalities located entirely outside the metropolitan area, as defined by section 200.02, subdivision 24, that are contained in the same county; or

 

(4) for noncontiguous precincts located in one or more counties.

 

Subject to the requirements of paragraph (c), a single, accessible, combined polling place may be established after May 1 of any year in the event of an emergency.

 

A copy of the ordinance or resolution establishing a combined polling place must be filed with the county auditor within 30 days after approval by the governing body, and the county auditor must provide notice within ten days to the secretary of state, in a manner and including information prescribed by the secretary of state.  A polling place combined under clause (3) must be approved by the governing body of each participating municipality.  A polling place combined under clause (4) must be approved by the governing body of each participating municipality and the secretary of state and may be located outside any of the noncontiguous precincts.  A municipality withdrawing from participation in a combined polling place must do so by filing a resolution of withdrawal with the


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county auditor no later than October 1 if a presidential nomination primary is scheduled to occur in the following year or April 1 of any other year, and the county auditor must provide notice within ten days to the secretary of state, in a manner and including information prescribed by the secretary of state.

 

The secretary of state shall provide a separate polling place roster for each precinct served by the combined polling place, except that.  In a precinct that uses electronic rosters, the secretary of state shall provide separate data files for each precinct and the election official responsible for the electronic rosters may combine the files as necessary to be loaded onto one or more electronic rosters, provided that the requirements under section 201.225, subdivision 2, are met.  The secretary of state and county auditor must provide guidance to the election judges serving in a combined polling place on the procedures to be used to ensure each voter is provided the correct ballot for that voter's precinct.  A single set of election judges may be appointed to serve at a combined polling place.  The number of election judges required must be based on the total number of persons voting at the last similar election in all precincts to be voting at the combined polling place.  Separate ballot boxes must be provided for the ballots from each precinct.  The results of the election must be reported separately for each precinct served by the combined polling place, except in a polling place established under clause (2) where one of the precincts has fewer than ten registered voters, in which case the results of that precinct must be reported in the manner specified by the secretary of state.  In addition to other required informational material and notices, a map showing the precincts served by the combined polling place, along with a notice that multiple ballot styles are in use, must be prominently displayed near the entrance to the combined polling place.

 

(c) If a local elections official determines that an emergency situation preventing the safe, secure, and full operation of a polling place on election day has occurred or is imminent, the local elections official may combine two or more polling places for that election pursuant to this subdivision.  To the extent possible, the polling places must be combined and the election conducted according to the requirements of paragraph (b), except that:

 

(1) polling places may be combined after May 1 and until the polls close on election day;

 

(2) any city or town, regardless of size or location, may establish a combined polling place under this paragraph;

 

(3) the governing body is not required to adopt an ordinance or resolution to establish the combined polling place;

 

(4) a polling place combined under paragraph (b), clause (3) or (4), must be approved by the local election official of each participating municipality;

 

(5) the local elections official must immediately notify the county auditor and the secretary of state of the combination, including the reason for the emergency combination and the location of the combined polling place.  As soon as possible, the local elections official must also post a notice stating the reason for the combination and the location of the combined polling place.  The notice must also be posted on the governing board's website, if one exists.  The local elections official must also notify the election judges and request that local media outlets publicly announce the reason for the combination and the location of the combined polling place; and

 

(6) on election day, the local elections official must post a notice in large print in a conspicuous place at the polling place where the emergency occurred, if practical, stating the location of the combined polling place.  The local election official must also post the notice, if practical, in a location visible by voters who vote from their motor vehicles as provided in section 204C.15, subdivision 2.  If polling place hours are extended pursuant to section 204C.05, subdivision 2, paragraph (b), the posted notices required by this paragraph must include a statement that the polling place hours at the combined polling place will be extended until the specified time.

 

EFFECTIVE DATE.  This section is effective January 1, 2026. 


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Sec. 48.  Minnesota Statutes 2024, section 204B.14, subdivision 4a, is amended to read:

 

Subd. 4a.  Municipal boundary adjustment procedure.  A change in the boundary of an election precinct that has occurred as a result of a municipal boundary adjustment made under chapter 414 that is effective more than 21 46 days before a regularly scheduled election takes effect at the scheduled election.

 

A change in the boundary of an election precinct that has occurred as a result of a municipal boundary adjustment made under chapter 414 that is effective less than 21 46 or fewer days before a regularly scheduled election takes effect the day after the scheduled election.

 

Sec. 49.  Minnesota Statutes 2024, section 204B.16, subdivision 1a, is amended to read:

 

Subd. 1a.  Notice to voters.  (a) If the location of a polling place has been changed, the governing body establishing the polling place shall send to every affected household with at least one registered voter in the precinct a nonforwardable mailed notice stating the location of the new polling place at least 25 days before the next election.  The secretary of state shall prepare a sample of this notice.  A notice that is returned as undeliverable must be forwarded immediately to the county auditor.  This subdivision does not apply to a polling place location that is changed on election day under section 204B.175.

 

(b) If the location of a polling place has been changed, the local official for the governing body establishing the polling place must post a notice in large print and in a conspicuous place at the closed polling place, if practical, stating the location of the new polling place.  The local election official must also post the notice, if practical, in a location visible by voters who vote from their motor vehicles as provided in section 204C.15, subdivision 2.  The notice must be in all languages required under section 204B.295 for that precinct.  The notice must be posted for each special, primary, and general election until a November presidential election or redistricting has occurred.  The secretary of state shall prepare a sample of this notice.

 

Sec. 50.  Minnesota Statutes 2024, section 204B.16, subdivision 4, is amended to read:

 

Subd. 4.  Prohibited locations.  No polling place shall be designated in any place where intoxicating liquors or nonintoxicating malt beverages are served or in any adjoining room.  No polling place shall be designated in any location where cannabis products, as defined in section 342.01, subdivision 20, are served or sold or in any adjoining room.  No polling place shall be designated in any place in which substantial compliance with the requirements of this chapter cannot be attained.

 

Sec. 51.  Minnesota Statutes 2024, section 204B.175, subdivision 3, is amended to read:

 

Subd. 3.  Notice.  (a) Upon making the determination to relocate a polling place, the local election official must immediately notify the county auditor and the secretary of state.  The notice must include the reason for the relocation and the reason for the location of the new polling place.  As soon as possible, the local election official must also post a notice stating the reason for the relocation and the location of the new polling place.  The notice must also be posted on the website of the public body, if there is one.  The local election official must also notify the election judges and request that local media outlets publicly announce the reason for the relocation and the location of the polling place.  If the relocation occurs more than 14 days prior to the election, the local election official must mail a notice to the impacted voters of the reason for the relocation and the location of the polling place.

 

(b) On election day, the local election official must post a notice in large print in a conspicuous place at the polling place where the emergency occurred, if practical, stating the location of the new polling place.  The local election official must also post the notice, if practical, in a location visible by voters who vote from their motor vehicles as provided in section 204C.15, subdivision 2.  If polling place hours are extended pursuant to section 204C.05, subdivision 2, paragraph (b), the posted notices required by this paragraph must include a statement that the polling place hours at the new polling place will be extended until the specified time.  Notices required by this paragraph must be in all languages required under section 204B.295 for that precinct.


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Sec. 52.  [204B.182] CHAIN OF CUSTODY PLANS.

 

(a) The county auditor must develop a county elections chain of custody plan to be used in all state, county, municipal, school district, and special district elections held in that county.  If any of the political subdivisions cross county lines, the affected counties must make efforts to ensure that the elections chain of custody procedures affecting the local jurisdiction are uniform throughout the jurisdiction.  County auditors must file the elections chain of custody plans with the secretary of state.

 

(b) The chain of custody plan must account for both the physical and cyber security of elections-related materials.  The plan must include sample chain of custody documentation.

 

(c) The secretary of state may provide additional guidance to counties on elections chain of custody best practices and planning.

 

(d) A municipal clerk, school district clerk, or special district clerk must utilize either the county chain of custody plan or create a local chain of custody plan for use in local elections not held in conjunction with federal, state, or county elections that meets or exceeds the requirements of the county elections chain of custody plan.  Any plan adopted under this paragraph must be adopted and filed with the secretary of state and the county auditor at least 84 days before the first election in which it will be used.

 

(e) Each political subdivision clerk who develops a local elections chain of custody plan pursuant to paragraph (d) and each county auditor must review their respective elections chain of custody plan prior to each state primary election.  Any revisions to the elections chain of custody plan must be completed and filed with the secretary of state by June 1 prior to the state primary election.

 

EFFECTIVE DATE.  This section is effective the day following final enactment and county auditors must file an elections chain of custody plan with the secretary of state by June 1, 2026.

 

Sec. 53.  Minnesota Statutes 2024, section 204B.19, subdivision 5, is amended to read:

 

Subd. 5.  Party balance requirement.  Unless exempted by sections 205.075, subdivision 4, and 205A.10, subdivision 2, no more than half of the election judges in a precinct, or at any location where ballots are being counted, may be members of the same major political party unless the election board consists of an odd number of election judges, in which case the number of election judges who are members of the same major political party may be one more than half the number of election judges in that precinct.  Each major political party must be represented by at least one election judge in each precinct.

 

Sec. 54.  Minnesota Statutes 2024, section 204B.24, is amended to read:

 

204B.24 ELECTION JUDGES; OATH.

 

Each election judge shall sign the following oath before assuming the duties of the office:

 

"I..........  solemnly swear (or affirm) that:

 

(1) I will perform the duties of election judge according to law and the best of my ability and will diligently endeavor to prevent fraud, deceit and abuse in conducting this election.

 

(2) I will perform my duties in a fair and impartial manner and not attempt to create an advantage for my party or for any candidate.


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(3) I will not share information about voting that I know to be materially false and will not intentionally hinder, interfere with, or prevent a person from voting, registering to vote, or aiding another person in casting a ballot or registering to vote, except as specifically required by law.
"

 

The oath shall be attached to the summary statement of the election returns of that precinct.  If there is no individual present who is authorized to administer oaths, the election judges may administer the oath to each other.

 

EFFECTIVE DATE.  This section is effective January 1, 2026. 

 

Sec. 55.  Minnesota Statutes 2024, section 204B.25, subdivision 1, is amended to read:

 

Subdivision 1.  Duties of county auditor.  Each county auditor shall provide training for all election judges who are appointed to serve at any election to be held in the county.  The county auditor shall also provide a procedure for emergency training of election judges elected to fill vacancies.  The county auditor may delegate to a municipal election official the duty to provide training of election judges in that municipality or school district.  The training must be consistent with the training programs established by the secretary of state under subdivision 2.

 

Sec. 56.  [204B.275] ELECTION REPORTING SYSTEM.

 

Subdivision 1.  Definition.  "Election reporting system" means the computerized central statewide database for offices, candidates, ballot questions, and unofficial results developed and maintained by the secretary of state.  The system facilitates the collection, aggregation, reporting, and secure sharing of unofficial election results to the public.

 

Subd. 2.  Authority.  The secretary of state must maintain an election reporting system as provided in this section.

 

Subd. 3.  Entry of names.  (a) For federal and state elections, the county auditor must enter in the election reporting system the names of all candidates who have filed for office with the county auditor no later than one day after the filing is received.  Within one day of receiving notification and no later than one day after the withdrawal period closes, the county auditor must enter in the election reporting system the names of candidates for city, town, school district, or other elective office for which the county auditor has been notified.  For any candidate who files by nominating petition or a petition in place of filing fee, the county auditor must enter in the election reporting system the name of the candidate within one day after the petition has been reviewed and determined to meet all legal requirements. 

 

(b) The secretary of state must enter in the election reporting system the names of all candidates who have filed for office with the secretary of state no later than one day after the filing is received.  For any candidate who files by nominating petition or a petition in place of filing fee, the secretary of state must enter in the election reporting system the name of the candidate within one day after the petition has been reviewed and determined to meet all legal requirements.

 

Subd. 4.  Results reporting testing.  At least seven days prior to any federal or state primary, general, or special election, the county auditor must test the results reporting functions in the election reporting system maintained by the secretary of state.  The test must include the entry of vote totals for all candidates or ballot question responses within each contest or ballot question, and the county auditor must verify that the predetermined test results are displayed.  The county auditor must report to the secretary of state that the test has been conducted, and no errors are apparent.  If errors occur during the test, the county auditor must work with the secretary of state to resolve all issues and retest until resolved.


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Subd. 5.
  Reporting results.  For federal and state elections, as soon as practicable after delivery of the returns, the county auditor must report all unofficial election results in the elections reporting system. 

 

Subd. 6.  Unofficial results.  Results reported to the election reporting system are unofficial results.  Election results are not official until after the canvassing board certifies the result of the election.

 

EFFECTIVE DATE.  This section is effective June 1, 2025.

 

Sec. 57.  Minnesota Statutes 2024, section 204B.28, subdivision 2, is amended to read:

 

Subd. 2.  Election supplies; duties of county auditors and clerks.  (a) Except as otherwise provided in this section and for absentee ballots in section 204B.35, subdivision 4, the county auditor shall complete the preparation of the election materials for which the auditor is responsible at least four days before every state primary and state general election.  At any time after all election materials are available from the county auditor but not later than four days the day before the election each municipal clerk shall secure from the county auditor:

 

(1) the forms that are required for the conduct of the election;

 

(2) any printed voter instruction materials furnished by the secretary of state;

 

(3) any other instructions for election officers; and

 

(4) a sufficient quantity of the official ballots, registration files, envelopes for ballot returns, and other supplies and materials required for each precinct in order to comply with the provisions of the Minnesota Election Law.  The county auditor may furnish the election supplies to the municipal clerks in the same manner as the supplies are furnished to precincts in unorganized territory pursuant to section 204B.29, subdivision 1.

 

(b) The county auditor must prepare and make available election materials for early voting to municipal clerks designated to administer early voting under section 203B.05 on or before the 19th day before the election.

 

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

 

Sec. 58.  Minnesota Statutes 2024, section 204B.44, is amended to read:

 

204B.44 ERRORS AND OMISSIONS; REMEDY.

 

(a) Any individual may file a petition in the manner provided in this section for the correction of any of the following errors, omissions, or wrongful acts which have occurred or are about to occur:

 

(1) an error or omission in the placement or printing of the name or description of any candidate or any question on any official ballot, including the placement of a candidate on the official ballot who is not eligible to hold the office for which the candidate has filed;

 

(2) any other error in preparing or printing any official ballot;

 

(3) failure of the chair or secretary of the proper committee of a major political party to execute or file a certificate of nomination;

 

(4) any wrongful act, omission, or error of any election judge, municipal clerk, county auditor, canvassing board or any of its members, the secretary of state, or any other individual charged with any duty concerning an election.


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(b) The petition shall describe the error, omission, or wrongful act and the correction sought by the petitioner.  The petition shall be filed with any judge of the supreme court in the case of an election for state or federal office or any judge of the district court in that county in the case of an election for county, municipal, or school district office.  The petitioner shall serve a copy of the petition on the officer, board or individual charged with the error, omission, or wrongful act, on all candidates for the office in the case of an election for state, federal, county, municipal, or school district office, and on any other party as required by the court.  Upon receipt of the petition the court shall immediately set a time for a hearing on the matter and order the officer, board or individual charged with the error, omission or wrongful act to correct the error or wrongful act or perform the duty or show cause for not doing so.  In the case of a review of a candidate's eligibility to hold office, the court may order the candidate to appear and present sufficient evidence of the candidate's eligibility.  The court shall issue its findings and a final order for appropriate relief as soon as possible after the hearing.  Failure to obey the order is contempt of court.

 

(c) Any service required by this section on a candidate may be accomplished by electronic mail sent to the address the candidate provided on the candidate's affidavit of candidacy pursuant to section 204B.06, subdivision 1b, or by any other means permitted by law.

 

(d) If all candidates for an office and the officer, board, or individual charged with the error, omission, or wrongful act unanimously agree in writing:

 

(1) that an error, omission, or wrongful act occurred; and

 

(2) on the appropriate correction for the error, omission, or wrongful act,

 

then the officer, board, or individual charged with the error, omission, or wrongful act must correct the error in the manner agreed to without an order from the court.  Such agreement must address, at a minimum, how the correction will take place and, if the correction involves a change to a ballot, how voters who have received or returned an incomplete ballot will be notified of the change and what, if any, steps voters who have returned an incorrect ballot can take to receive a corrected replacement ballot.

 

The officer, board, or individual must notify the secretary of state in writing of the error and proposed correction within one business day of receiving notification of the candidate's written agreement and must not distribute any ballots reflecting the proposed correction for two business days unless the secretary of state waives this notice period.  Nothing in this paragraph shall be construed to preclude any person from filing a petition under this section alleging that the written agreement constitutes an error, omission, or wrongful act that requires correction by the court.

 

(e) Any candidate for an office who does not enter into an agreement under paragraph (d) and who does not prevail at any subsequent proceeding involving a petition filed under this section must pay the costs and disbursements of the prevailing party or parties unless the court determines that the candidate's position was substantially justified or such costs and disbursements would impose undue hardship or otherwise be inequitable.

 

(f) Notwithstanding any other provision of this section, an official may correct any official ballot without order from the court if the ballot is not in compliance with sections 204B.35 to 204B.37 or any rules promulgated under sections 204B.35 to 204B.37.

 

EFFECTIVE DATE.  This section is effective June 1, 2025.

 

Sec. 59.  Minnesota Statutes 2024, section 204B.45, subdivision 2, is amended to read:

 

Subd. 2.  Procedure; voting prior to election day.  Notice of the election and the special mail procedure must be given at least ten weeks prior to the election.  Not more than 46 days nor later than 14 28 days before a regularly scheduled any election and not more than 30 days nor later than 14 days before any other election, the auditor shall


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mail ballots by nonforwardable mail to all voters registered in the city, town, or unorganized territory.  No later than 14 days before the election, the auditor must make a subsequent mailing of ballots to those voters who register to vote after the initial mailing but before the 20th day before the election.  Eligible voters not registered at the time the ballots are mailed may apply for ballots as provided in chapter 203B.  Ballot return envelopes, with return postage provided, must be preaddressed to the auditor or clerk and the voter may return the ballot by mail or in person to the office of the auditor or clerk.  The auditor or clerk must appoint a ballot board to examine the mail and absentee ballot return envelopes and mark them "accepted" or "rejected" within three days of receipt if there are 14 or fewer days before election day, or within five days of receipt if there are more than 14 days before election day.  The board may consist of deputy county auditors or deputy municipal clerks who have received training in the processing and counting of mail ballots, who need not be affiliated with a major political party.  Election judges performing the duties in this section must be of different major political parties, unless they are exempt from that requirement under section 205.075, subdivision 4, or section 205A.10.  If an envelope has been rejected at least five days before the election, the ballots in the envelope must remain sealed and the auditor or clerk shall provide the voter with a replacement ballot and return envelope in place of the spoiled ballot.  If the ballot is rejected within five days of the election, the envelope must remain sealed and the official in charge of the ballot board must attempt to contact the voter by telephone or email to notify the voter that the voter's ballot has been rejected.  The official must document the attempts made to contact the voter.

 

If the ballot is accepted, the county auditor or municipal clerk must mark the roster to indicate that the voter has already cast a ballot in that election.  After the close of business on the 19th day before the election, the ballots from return envelopes marked "Accepted" may be opened, duplicated as needed in the manner provided by section 206.86, subdivision 5, initialed by the members of the ballot board, and deposited in the ballot box.

 

In all other respects, the provisions of the Minnesota Election Law governing deposit and counting of ballots apply.

 

The mail and absentee ballots for a precinct must be counted together and reported as one vote total.  No vote totals from mail or absentee ballots may be made public before the close of voting on election day.

 

The costs of the mailing shall be paid by the election jurisdiction in which the voter maintains residence.  Any ballot received by 8:00 p.m. on the day of the election must be counted.

 

EFFECTIVE DATE.  This section is effective November 15, 2025, for elections held on or after January 1, 2026.

 

Sec. 60.  Minnesota Statutes 2024, section 204C.05, subdivision 2, is amended to read:

 

Subd. 2.  Voters in line at closing.  (a) At or before the hour when voting is scheduled to begin, the election judges shall must agree upon the standard of time they will use to determine when voting will begin and end.  Voting shall must not be allowed after the time when it is scheduled to end, unless individuals are waiting in the polling place or waiting in line at the door to register, to update the voter's registration, or to vote.  The voting shall must continue until those individuals have been allowed to vote.  No An individual who comes to the polling place or to a line outside the polling place after the time when voting is scheduled to end shall must not be allowed to vote.

 

(b) The local election official may extend polling place hours to accommodate voters that would have been in line at the regular polling place if the polling place had not been combined or moved on election day pursuant to section 204B.14, subdivision 2, or 204B.175.  Polling place hours may be extended at the new polling place for one hour.  The local election official must immediately provide notice to the county auditor, secretary of state, and election judges of the extension in polling place hours.  The local election official must also request that the local media outlets publicly announce the extended polling place hours.  Voters in the polling place or waiting in line at the door to register, to update the voter's registration, or to vote at the end of the extended polling place hours shall must be allowed to vote pursuant to paragraph (a).


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Sec. 61.  Minnesota Statutes 2024, section 204C.06, subdivision 1, is amended to read:

 

Subdivision 1.  Persons allowed near polling place.  An individual shall must be allowed to go to and from the polling place for the purpose of voting without unlawful interference.  No one Except an election official or an individual who is waiting to register, to update the voter's registration, or to vote or an individual who is conducting exit polling shall, an individual must not stand within 100 feet of the building in which a polling place is located.

 

Sec. 62.  Minnesota Statutes 2024, section 204C.06, subdivision 2, is amended to read:

 

Subd. 2.  Individuals allowed in polling place; identification.  (a) Representatives of the secretary of state's office, the county auditor's office, and the municipal or school district clerk's office may be present at the polling place to observe election procedures.  Except for these representatives, election judges, sergeants-at-arms, and challengers, an individual may remain inside the polling place during voting hours only while voting or, updating the voter's registration, registering to vote, providing proof of residence for an individual who is registering to vote or updating a registration, or assisting a disabled voter with a disability or a voter who is unable to read English.  During voting hours no one except individuals receiving, marking, or depositing ballots shall approach within six feet of a voting booth, ballot counter, or electronic voting equipment, unless lawfully authorized to do so by an election judge or the individual is an election judge monitoring the operation of the ballot counter or electronic voting equipment.

 

(b) Teachers and elementary or secondary school students participating in an educational activity authorized by section 204B.27, subdivision 7, may be present at the polling place during voting hours.

 

(c) Each official on duty in the polling place must wear an identification badge that shows their role in the election process.  The badge must not show their party affiliation.

 

Sec. 63.  Minnesota Statutes 2024, section 204C.06, subdivision 6, is amended to read:

 

Subd. 6.  Peace officers.  Except when summoned by an election judge to restore the peace or when voting, updating a registration, or registering to vote, no peace officer shall enter or remain in a polling place or stand within 50 feet of the entrance of a polling place.

 

Sec. 64.  Minnesota Statutes 2024, section 204C.08, subdivision 1d, is amended to read:

 

Subd. 1d.  Voter's Bill of Rights.  The county auditor shall prepare and provide to each polling place sufficient copies of a poster setting forth the Voter's Bill of Rights as set forth in this section.  Before the hours of voting are scheduled to begin, the election judges shall post it in a conspicuous location or locations in the polling place.  The Voter's Bill of Rights is as follows:

 

"VOTER'S BILL OF RIGHTS

 

For all persons residing in this state who meet federal voting eligibility requirements:

 

(1) You have the right to be absent from work for the purpose of voting in a state, federal, or regularly scheduled election without reduction to your pay, personal leave, or vacation time on election day for the time necessary to appear at your polling place, cast a ballot, and return to work.

 

(2) If you are in line at your polling place any time before 8:00 p.m., you have the right to vote.

 

(3) If you can provide the required proof of residence, you have the right to register to vote or to update your registration and to vote on election day.


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(4) If you are unable to sign your name, you have the right to orally confirm your identity with an election judge and to direct another person to sign your name for you.

 

(5) You have the right to request special assistance when voting.

 

(6) If you need assistance, you may be accompanied into the voting booth by a person of your choice, except by an agent of your employer or union or a candidate.

 

(7) You have the right to bring your minor children into the polling place and into the voting booth with you.

 

(8) You have the right to vote if you are not currently incarcerated for conviction of a felony offense.

 

(9) If you are under a guardianship, you have the right to vote, unless the court order revokes your right to vote.

 

(10) You have the right to vote without anyone in the polling place trying to influence your vote.

 

(11) If you make a mistake or spoil your ballot before it is submitted, you have the right to receive a replacement ballot and vote.

 

(12) You have the right to file a written complaint at your polling place if you are dissatisfied with the way an election is being run.

 

(13) You have the right to take a sample ballot into the voting booth with you.

 

(14) You have the right to take a copy of this Voter's Bill of Rights into the voting booth with you."

 

EFFECTIVE DATE.  This section is effective the day following final enactment, except that the change in clause (3) is effective January 1, 2026.

 

Sec. 65.  Minnesota Statutes 2024, section 204C.09, subdivision 1, is amended to read:

 

Subdivision 1.  Counting and initialing.  (a) Before the voting begins, at least two election judges must certify the number of ballots delivered to the precinct.  Election judges may conduct this count, presuming that the total count provided for prepackaged ballots is correct.  As each package is opened, two judges must count the ballots in the package to ensure that the total count provided for the package is correct.  Any discrepancy must be noted on the incident log.

 

(b) Before the voting begins, or as soon as possible after it begins, at least two election judges shall each initial the backs of all the ballots.  The election judges shall not otherwise mark the ballots.

 

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

 

Sec. 66.  Minnesota Statutes 2024, section 204C.10, is amended to read:

 

204C.10 POLLING PLACE ROSTER; VOTER SIGNATURE CERTIFICATE; VOTER RECEIPT.

 

(a) An individual seeking to vote shall sign a polling place roster or voter signature certificate which states that the individual:

 

(1) is at least 18 years old;

 

(2) is a citizen of the United States;


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(3) has maintained residence in Minnesota for 20 days immediately preceding the election;

 

(4) maintains residence at the address or location shown;

 

(5) is not under a guardianship in which the court order revokes the individual's right to vote;

 

(6) has not been found by a court of law to be legally incompetent to vote;

 

(7) has the right to vote because, if the individual was convicted of a felony, the individual is not currently incarcerated for that conviction;

 

(8) is registered; and

 

(9) has not already voted in the election.

 

The roster must also state:  "I understand that deliberately providing false information is a felony punishable by not more than five years imprisonment and a fine of not more than $10,000, or both."

 

(b) At the presidential nomination primary, the polling place roster must also state:  "I am in general agreement with the principles of the party for whose candidate I intend to vote." This statement must appear separately from the statements required in paragraph (a).  The felony penalty provided for in paragraph (a) does not apply to this paragraph.

 

(c) A judge may, before the applicant signs the roster or voter signature certificate, confirm the applicant's name, address, and date of birth.

 

(d) After the applicant signs the roster or voter signature certificate, the judge shall give the applicant a voter's receipt.  The voter shall deliver the voter's receipt to the judge in charge of ballots as proof of the voter's right to vote, and thereupon the judge shall hand to the voter the ballot.  The voters' receipts must be maintained during the time for notice of filing an election contest.

 

(e) Whenever a challenged status appears on the polling place roster, an election judge must ensure that the challenge is concealed or hidden from the view of any voter other than the voter whose status is challenged.

 

EFFECTIVE DATE.  This section is effective September 1, 2025.

 

Sec. 67.  Minnesota Statutes 2024, section 204C.15, subdivision 2, is amended to read:

 

Subd. 2.  Outside the polling place.  An individual who is unable to enter a polling place where paper ballots or an electronic voting system are used may register or update the voter's registration and vote without leaving a motor vehicle.  Two election judges who are members of different major political parties shall must assist the voter to register or to update a registration, as applicable, and to complete a voter's certificate and shall must provide the necessary ballots.  The voter may request additional assistance in marking ballots as provided in subdivision 1.

 

Sec. 68.  Minnesota Statutes 2024, section 204C.15, subdivision 3, is amended to read:

 

Subd. 3.  Voting lines.  In all polling places, upon request of the voter, two election judges shall must assist a disabled voter with a disability to enter the polling place and go through the registration and voting lines lines to register to vote or update the voter's registration, as applicable, and to vote.  The voter may also request the assistance of election judges or any other individual in marking ballots, as provided in subdivision 1.


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Sec. 69.  Minnesota Statutes 2024, section 204C.24, subdivision 1, is amended to read:

 

Subdivision 1.  Information requirements.  Precinct summary statements shall must be submitted by the election judges in every precinct.  For all elections, the election judges shall must complete three or more copies of the summary statements, and each copy shall must contain the following information for each kind of ballot:

 

(1) the number of ballots delivered to the precinct as adjusted by the actual count made by the election judges, the number of unofficial ballots made, and the number of absentee ballots delivered to the precinct;

 

(2) the number of votes each candidate received or the number of yes and no votes on each question, the number of undervotes, the number of overvotes, and the number of defective ballots with respect to each office or question;

 

(3) the number of spoiled ballots, the number of duplicate ballots made, the number of absentee ballots rejected, and the number of unused ballots, presuming that the total count provided on each package of unopened prepackaged ballots is correct;

 

(4) the number of voted ballots indicating only a voter's choices as provided by section 206.80, paragraph (b), clause (2), item (ii), in precincts that use an assistive voting device that produces this type of ballot;

 

(5) the number of individuals who voted at the election in the precinct which must equal the total number of ballots cast in the precinct, as required by sections 204C.20 and 206.86, subdivision 1;

 

(6) the number of voters registering or updating registrations on election day in that precinct;

 

(7) the signatures of the election judges who counted the ballots certifying that all of the ballots cast were properly piled, checked, and counted; and that the numbers entered by the election judges on the summary statements correctly show the number of votes cast for each candidate and for and against each question;

 

(8) the number of election judges that worked in that precinct on election day; and

 

(9) the number of voting booths used in that precinct on election day.

 

At least two copies of the summary statement must be prepared for elections not held on the same day as the state elections.

 

Sec. 70.  Minnesota Statutes 2024, section 204C.32, subdivision 1, is amended to read:

 

Subdivision 1.  County canvass.  The county canvassing board shall must meet at the county auditor's office on either the second or third day following the state primary.  After taking the oath of office, the canvassing board shall must publicly canvass the election returns delivered to the county auditor.  The board shall must complete the canvass by the third day following the state primary and shall must promptly prepare and file with the county auditor a report that states:

 

(a) the number of individuals voting at the election in the county, and in each precinct;

 

(b) for each precinct, the number of individuals registering to vote or updating registrations on election day and the number of individuals who were registered before election day in each precinct and did not need to update the voter's registration;

 

(c) for each major political party, the names of the candidates running for each partisan office and the number of votes received by each candidate in the county and in each precinct;


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(d) the names of the candidates of each major political party who are nominated; and

 

(e) the number of votes received by each of the candidates for nonpartisan office in each precinct in the county and the names of the candidates nominated for nonpartisan office.

 

Upon completion of the canvass, the county auditor shall must mail or deliver a notice of nomination to each nominee for county office voted for only in that county.  The county auditor shall must transmit one of the certified copies of the county canvassing board report for state and federal offices to the secretary of state by express mail or similar service immediately upon conclusion of the county canvass.  The secretary of state shall must mail a notice of nomination to each nominee for state or federal office.

 

Sec. 71.  Minnesota Statutes 2024, section 204C.33, subdivision 1, is amended to read:

 

Subdivision 1.  County canvass.  The county canvassing board shall must meet at the county auditor's office between the third and eighth days following the state general election.  After taking the oath of office, the board shall must promptly and publicly canvass the general election returns delivered to the county auditor.  Upon completion of the canvass, the board shall must promptly prepare and file with the county auditor a report which states:

 

(a) the number of individuals voting at the election in the county and in each precinct;

 

(b) for each precinct, the number of individuals registering to vote or updating registrations on election day and the number of individuals who were registered before election day in each precinct and did not need to update the voter's registration;

 

(c) the names of the candidates for each office and the number of votes received by each candidate in the county and in each precinct;

 

(d) the number of votes counted for and against a proposed change of county lines or county seat; and

 

(e) the number of votes counted for and against a constitutional amendment or other question in the county and in each precinct.

 

The result of write-in votes cast on the general election ballots must be compiled by the county auditor before the county canvass, except that write-in votes for a candidate for federal, state, or county office must not be counted unless the candidate has timely filed a request under section 204B.09, subdivision 3.  The county auditor shall must arrange for each municipality to provide an adequate number of election judges to perform this duty or the county auditor may appoint additional election judges for this purpose.  The county auditor may open the envelopes or containers in which the voted ballots have been sealed in order to count and record the write-in votes and must reseal the voted ballots at the conclusion of this process.  The county auditor must prepare a separate report of votes received by precinct for write-in candidates for federal, state, and county offices who have requested under section 204B.09 that votes for those candidates be tallied.

 

Upon completion of the canvass, the county canvassing board shall must declare the candidate duly elected who received the highest number of votes for each county and state office voted for only within the county.  The county auditor shall must transmit a certified copy of the county canvassing board report for state and federal offices to the secretary of state by messenger, express mail, or similar service immediately upon conclusion of the county canvass.


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Sec. 72.  Minnesota Statutes 2024, section 204D.19, subdivision 1, is amended to read:

 

Subdivision 1.  Vacancy filled at general election.  When a vacancy occurs more than 150 days before the next state general election, and the legislature will not be in session before the final canvass of the state general election returns, the vacancy shall be filled at the next state general election.  When practicable, the filing period for the vacancy must be concurrent with the filing period for the general election filing period provided in section 204B.09.  If not possible, the filing period for the vacancy must be a minimum of five days and a maximum of ten days, excluding holidays.

 

EFFECTIVE DATE.  This section is effective the day following final enactment and applies to vacancies in legislative offices that occur on or after that date.

 

Sec. 73.  Minnesota Statutes 2024, section 204D.19, subdivision 2, is amended to read:

 

Subd. 2.  Special election when legislature will be in session.  Except for vacancies in the legislature which occur at any time between the last day of session in an odd-numbered year and the 40th day prior to the opening day of session in the succeeding even-numbered year, when a vacancy occurs and the legislature will be in session so that the individual elected as provided by this section could take office and exercise the duties of the office immediately upon election, the governor shall issue within five days after the vacancy occurs a writ calling for a special election.  The filing period for the vacancy must be a minimum of three days, excluding holidays.  The special election shall be held as soon as possible, consistent with the notice requirements of section 204D.22, subdivision 3, but in no event more than 35 days after the issuance of the writ.  A special election must not be held during the four two days before or the four two days after a holiday as defined in section 645.44, subdivision 5.

 

EFFECTIVE DATE.  This section is effective the day following final enactment and applies to vacancies in legislative offices that occur on or after that date.

 

Sec. 74.  Minnesota Statutes 2024, section 204D.19, subdivision 3, is amended to read:

 

Subd. 3.  Special election at other times.  When a vacancy occurs at a time other than those described in subdivisions 1 and 2 the governor shall issue a writ, calling for a special election to be held so that the individual elected may take office at the opening of the next session of the legislature, or at the reconvening of a session of the legislature.  The filing period for the vacancy must be a minimum of five days and a maximum of ten days, excluding holidays.

 

EFFECTIVE DATE.  This section is effective the day following final enactment and applies to vacancies in legislative offices that occur on or after that date.

 

Sec. 75.  Minnesota Statutes 2024, section 204D.195, is amended to read:

 

204D.195 DATE OF SPECIAL ELECTION; CERTAIN TIMES PROHIBITED.

 

Notwithstanding any other provision of law, a special primary and special general election may not be held:

 

(1) for a period beginning the day following the date of the state primary election and ending the day prior to the date of the state general election; or

 

(2) on a holiday, or during the four two days before or after a holiday, as defined in section 645.44, subdivision 5.

 

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


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Sec. 76.  Minnesota Statutes 2024, section 205.13, subdivision 1, is amended to read:

 

Subdivision 1.  Affidavit of candidacy.  (a) An individual who is eligible and desires to become a candidate for an office to be voted for at the municipal general election shall file an affidavit of candidacy with the municipal clerk.  Candidates for a special election to fill a vacancy held as provided in section 412.02, subdivision 2a, must file an affidavit of candidacy for the specific office to fill the unexpired portion of the term.  Subject to the approval of the county auditor, the town clerk may authorize candidates for township offices to file affidavits of candidacy with the county auditor.  The affidavit shall be in the same form as that in section 204B.06.  The municipal clerk shall also accept an application signed by not less than five voters and filed on behalf of an eligible voter in the municipality whom they desire to be a candidate, if service of a copy of the application has been made on the candidate and proof of service is endorsed on the application being filed.  Upon receipt of the proper filing fee, the clerk shall place the name of the candidate on the official ballot without partisan designation.

 

(b) The municipal clerk shall notify the official responsible for preparing the ballot of the names of the candidates placed on the ballot, any changes to candidates, and other information necessary to prepare the ballot.  The notification must be made within one business day of receiving the filing or change or immediately following the close of the filing period, whichever is sooner, unless the clerk and official agree to an alternative notification timeline.

 

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

 

Sec. 77.  Minnesota Statutes 2024, section 205.13, subdivision 1a, is amended to read:

 

Subd. 1a.  Filing period.  In a city nominating candidates at a primary, an affidavit of candidacy for a city office voted on in November must be filed no more than 84 days nor less than 70 days before the city primary.  In municipalities that do not hold a primary, an affidavit of candidacy must be filed no more than 70 days and not less than 56 days before the municipal general election held in March in any year, or a special election not held in conjunction with another election, and no more than 98 112 days nor less than 84 98 days before the municipal general election held in November of any year.  The municipal clerk's office must be open for filing from 1:00 p.m. to 5:00 p.m. on the last day of the filing period.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.

 

Sec. 78.  Minnesota Statutes 2024, section 205A.06, subdivision 1, is amended to read:

 

Subdivision 1.  Affidavit of candidacy.  (a) An individual who is eligible and desires to become a candidate for an office to be voted on at the election must file an affidavit of candidacy with the school district clerk.  The affidavit must be in the form prescribed by section 204B.06.  The school district clerk shall also accept an application signed by at least five voters and filed on behalf of an eligible voter in the school district whom they desire to be a candidate, if service of a copy of the application has been made on the candidate and proof of service is endorsed on the application being filed.  No individual shall be nominated by nominating petition for a school district elective office.  Upon receipt of the proper filing fee, the clerk shall place the name of the candidate on the official ballot without partisan designation.

 

(b) The school district clerk shall notify the official responsible for preparing the ballot of the names of the candidates placed on the ballot, any changes to candidates, and other information necessary to prepare the ballot.  The notification must be made within one business day of receiving the filing or change or immediately following the close of the filing period, whichever is sooner, unless the clerk and official agree to an alternative notification timeline.

 

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


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Sec. 79.  Minnesota Statutes 2024, section 205A.06, subdivision 1a, is amended to read:

 

Subd. 1a.  Filing period.  In school districts that have adopted a resolution to choose nominees for school board by a primary election, affidavits of candidacy must be filed with the school district clerk no earlier than the 84th day and no later than the 70th day before the second Tuesday in August in the year when the school district general election is held.  In all other school districts, affidavits of candidacy must be filed no earlier than the 98th 112th day and no later than the 84th 98th day before the school district general election.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.

 

Sec. 80.  Minnesota Statutes 2024, section 205A.11, subdivision 2, is amended to read:

 

Subd. 2.  Combined polling place.  (a) When no other election is being held in a school district, the school board may designate combined polling places at which the voters in those precincts may vote in the school district election.

 

(b) By December 31 of each year, the school board must designate, by resolution, any changes to combined polling places.  The combined polling places designated in the resolution are the polling places, unless a change is made in accordance with this paragraph or:

 

(1) pursuant to section 204B.175; or

 

(2) because a polling place has become unavailable.

 

(c) If the school board designates combined polling places pursuant to this subdivision, polling places must be designated throughout the district, taking into account both geographical distribution and population distribution.  A combined polling place must be at a location designated for use as a polling place by a county or municipality, except as provided in this paragraph.  If the municipality conducts elections by mail balloting pursuant to section 204B.45, the school board may designate a polling place not used by the municipality if the polling place satisfies the requirements in section 204B.16, subdivisions 4 to 7.

 

(d) In school districts that have organized into separate board member election districts under section 205A.12, a combined polling place for a school general election must be arranged so that it does not include more than one board member election district.

 

Sec. 81.  Minnesota Statutes 2024, section 206.83, is amended to read:

 

206.83 TESTING OF VOTING SYSTEMS.

 

At least three days before voting equipment is used, the official in charge of elections shall have the voting system tested to ascertain that the system will correctly mark ballots using all methods supported by the system, including through assistive technology, and count the votes cast for all candidates and on all questions.  Public notice of the time and place of the test must be given at least two five days in advance by publication once in official newspapers.  The test must be observed by at least two election judges, who are not of the same major political party, and must be open to representatives of the political parties, candidates, the press, and the public.  The test must be conducted by (1) processing a preaudited group of ballots punched or marked to record a predetermined number of valid votes for each candidate and on each question in the contest, and must include for each office one or more ballot cards which have votes in excess of the number allowed by law in order to test the ability of the voting system tabulator and electronic ballot marker to reject those votes; and (2) processing an additional test deck of ballots marked using the electronic ballot marker for the precinct, including ballots marked using the electronic ballot display, audio ballot reader, and any assistive voting technology used with the electronic ballot marker.  If any


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error is detected, the cause must be ascertained and corrected and an errorless count must be made before the voting system may be used in the election.  After the completion of the test, the programs used and ballot cards must be sealed, retained, and disposed of as provided for paper ballots.

 

EFFECTIVE DATE.  This section is effective September 1, 2025.

 

Sec. 82.  Minnesota Statutes 2024, section 206.845, subdivision 1, is amended to read:

 

Subdivision 1.  Prohibited connections.  The county auditor and municipal clerk must secure ballot recording and tabulating systems physically and electronically against unauthorized access.  Except for wired connections within the polling place, ballot recording and tabulating systems must not be connected to or operated on, directly or indirectly, any electronic network, including a local area network, a wide-area network, the Internet, or the World Wide Web.  Wireless communications may not be used in any way in a vote recording or vote tabulating system.  Wireless, device-to-device capability is not permitted.  No connection by modem is permitted.

 

Transfer of information from the ballot recording or tabulating system to another system for network distribution or broadcast must be made by disk, tape, or other physical means of communication, other than direct or indirect electronic connection of the vote recording or vote tabulating system.  A county auditor or municipal clerk may not create or disclose, or permit any other person to create or disclose, an electronic image of the hard drive of any vote recording or tabulating system or any other component of an electronic voting system, except as authorized in writing by the secretary of state or for the purpose of conducting official duties as expressly authorized by law.  A password used to access any ballot recording or tabulating system must be kept in a safe and secure place in the precinct so that it is not accessible to or visible by the public.

 

Sec. 83.  Minnesota Statutes 2024, section 211B.20, subdivision 2, is amended to read:

 

Subd. 2.  Exceptions.  Subdivision 1 does not prohibit:

 

(1) denial of admittance into a particular apartment, room, manufactured home, or personal residential unit;

 

(2) requiring reasonable and proper identification as a necessary prerequisite to admission to a multiple unit dwelling;

 

(3) in the case of a nursing home or an assisted living facility under chapter 144G, denial of permission to visit certain persons for valid health reasons;

 

(4) limiting visits by candidates or volunteers accompanied by the candidate to a reasonable number of persons or reasonable hours, provided that access must be permitted during the hours of 9:00 a.m. through 9:00 p.m. on any day, at a minimum;

 

(5) requiring a prior appointment to gain access to the facility; or

 

(6) denial of admittance to or expulsion from a multiple unit dwelling for good cause.

 

Sec. 84.  Minnesota Statutes 2024, section 211B.20, is amended by adding a subdivision to read:

 

Subd. 3.  Notice to residents.  The owner, manager, or operator of a multiple unit dwelling is encouraged to notify residents of the days on which a candidate has provided notice of an intent to be present.


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Sec. 85.  Minnesota Statutes 2024, section 368.47, is amended to read:

 

368.47 TOWNS MAY BE DISSOLVED.

 

(1) When the voters residing within a town have failed to elect any town officials for more than ten years continuously;

 

(2) when a town has failed for a period of ten years to exercise any of the powers and functions of a town;

 

(3) when the estimated market value of a town drops to less than $165,000;

 

(4) when the tax delinquency of a town, exclusive of taxes that are delinquent or unpaid because they are contested in proceedings for the enforcement of taxes, amounts to 12 percent of its market value; or

 

(5) when the state or federal government has acquired title to 50 percent of the real estate of a town,

 

which facts, or any of them, may be found and determined by the resolution of the county board of the county in which the town is located, according to the official records in the office of the county auditor, the county board by resolution may declare the town, naming it, dissolved and no longer entitled to exercise any of the powers or functions of a town.

 

In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters of the town shall express their approval or disapproval.  The town clerk shall, upon a petition signed by a majority of the registered voters of the town, filed with the clerk at least 60 84 days before a regular or special town election, give notice at the same time and in the same manner of the election that the question of dissolution of the town will be submitted for determination at the election.  At the election the question shall be voted upon by a separate ballot.  The form of the question under this chapter shall be substantially in the following form:  "Shall the town of...  be dissolved?" The ballot shall be deposited in a separate ballot box and The result of the voting canvassed, certified, and returned in the same manner and at the same time as other facts and returns of the election.  If a majority of the votes cast at the election are for dissolution, the town shall be dissolved.  If a majority of the votes cast at the election are against dissolution, the town shall not be dissolved.

 

When a town is dissolved under sections 368.47 to 368.49 the county shall acquire title to any telephone company or other business conducted by the town.  The business shall be operated by the board of county commissioners until it can be sold.  The subscribers or patrons of the business shall have the first opportunity of purchase.  If the town has any outstanding indebtedness chargeable to the business, the county auditor shall levy a tax against the property situated in the dissolved town to pay the indebtedness as it becomes due.

 

Sec. 86.  Minnesota Statutes 2024, section 375.20, is amended to read:

 

375.20 BALLOT QUESTIONS.

 

If the county board may do an act, incur a debt, appropriate money for a purpose, or exercise any other power or authority, only if authorized by a vote of the people, the question may be submitted at a special or general election, by a resolution specifying the matter or question to be voted upon.  If the question is to authorize the appropriation of money, creation of a debt, or levy of a tax, it shall state the amount.  Notice of the election shall be given as in the case of special elections.  If the question submitted is adopted, the board shall pass an appropriate resolution to carry it into effect.  In the election the form of the ballot shall be:  "Shall (here state the substance of the resolution to be submitted)?, Yes......  No......,".  The county board may call a special county election upon a question to be held within 74 84 days after a resolution to that effect is adopted by the county board.  Upon the adoption of the resolution the county auditor shall post and publish notices of the election, as required by section 204D.22, subdivisions 2 and 3.  The election shall be conducted and the returns canvassed in the manner prescribed by sections 204D.20 to 204D.27, so far as practicable.


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Sec. 87.  Minnesota Statutes 2024, section 414.09, subdivision 3, is amended to read:

 

Subd. 3.  Elections of municipal officers.  (a) An order approving an incorporation or consolidation pursuant to this chapter, or an order requiring an election under section 414.031, subdivision 4a, shall set a date for an election of new municipal officers not less than 45 days nor more than 60 days after the issuance of such order in accordance with the uniform election dates defined in section 205.10, subdivision 3a.

 

(b) The chief administrative law judge shall appoint an acting clerk for election purposes, at least three election judges who shall be residents of the new municipality, and shall designate polling places within the new municipality.

 

(c) The acting clerk shall prepare the official election ballot pursuant to section 205.17.

 

(d) Any person eligible to hold municipal office may file an affidavit of candidacy not more than four weeks nor less than two weeks before the date designated in the order for the election pursuant to section 205.13.

 

(e) The election shall be conducted in conformity with the charter and the laws for conducting municipal elections insofar as applicable.

 

(f) Any person eligible to vote at a township or municipal election within the area of the new municipality, is eligible to vote at such election.

 

(g) Any excess in the expense of conducting the election over receipts from filing fees shall be a charge against the new municipality; any excess of receipts shall be deposited in the treasury of the new municipality.

 

EFFECTIVE DATE.  This section is effective June 1, 2025.

 

Sec. 88.  Minnesota Statutes 2024, section 447.32, subdivision 4, is amended to read:

 

Subd. 4.  Candidates; ballots; certifying election.  (a) A person who wants to be a candidate for the hospital board shall file an affidavit of candidacy for the election either as member at large or as a member representing the city or town where the candidate maintains residence.  The affidavit of candidacy must be filed with the city or town clerk not more than 98 112 days nor less than 84 98 days before the first Tuesday after the first Monday in November of the year in which the general election is held.  The city or town clerk must forward the affidavits of candidacy to the clerk of the hospital district or, for the first election, the clerk of the most populous city or town immediately after the last day of the filing period.  A candidate may withdraw from the election by filing an affidavit of withdrawal with the clerk of the district no later than 5:00 p.m. two days after the last day to file affidavits of candidacy.

 

(b) Voting must be by secret ballot.  The clerk shall prepare, at the expense of the district, necessary ballots for the election of officers.  Ballots must be prepared as provided in the rules of the secretary of state.  The ballots must be marked and initialed by at least two judges as official ballots and used exclusively at the election.  Any proposition to be voted on may be printed on the ballot provided for the election of officers.  The hospital board may also authorize the use of voting systems subject to chapter 206.  Enough election judges may be appointed to receive the votes at each polling place.  The election judges shall act as clerks of election, count the ballots cast, and submit them to the board for canvass.

 

(c) Between the third and 14th days after an election, the board must act as the canvassing board, canvass the returns, and declare the candidate duly elected who received the highest number of votes for each hospital district office and the results of any ballot questions.


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(d)
After canvassing the election, the board shall issue a certificate of election to the candidate who received the largest number of votes cast for each office.  The clerk shall deliver the certificate to the person entitled to it in person or by certified mail.  Each person certified shall file an acceptance and oath of office in writing with the clerk within 30 days after the date of delivery or mailing of the certificate.  The board may fill any office as provided in subdivision 1 if the person elected fails to qualify within 30 days, but qualification is effective if made before the board acts to fill the vacancy.

 

EFFECTIVE DATE.  Paragraph (a) is effective January 1, 2026.

 

Sec. 89.  TRANSITION TO NEW VOTER REGISTRATION APPLICATIONS; ABSENTEE BALLOT APPLICATIONS.

 

Notwithstanding the requirements of section 10, a completed voter registration application submitted by a voter is not deficient for purposes of registering that voter if the application form was printed or provided to the voter prior to July 1, 2025.  On or after July 1, 2025, an election official must not print or copy a blank voter registration application that does not include the modifications required by section 10.  An election official may distribute copies of registration applications that were printed prior to the effective date.

 

Sec. 90.  REPEALER.

 

Minnesota Statutes 2024, sections 204B.25, subdivision 3; 206.57, subdivision 5b; and 206.95, are repealed.

 

Sec. 91.  EFFECTIVE DATE.

 

Unless otherwise provided, this article is effective July 1, 2025."

 

Delete the title and insert:

 

"A bill for an act relating to state government operations; establishing a biennial budget; appropriating money for the legislature, certain constitutional offices and state agencies, the Minnesota Historical Society, the Minnesota Humanities Center, certain retirement accounts, certain offices, departments, boards, commissions, councils, general contingent account, and tort claims; transferring money; raising fees; making changes to policy provisions for state government operations and local government policy; modifying state personnel management policies; modifying business filing and fraud policies; making changes to certain licensing boards; making technical changes; repealing provisions; modifying various laws related to election administration; modifying voting and absentee voting requirements and procedures; formalizing the election reporting system; modifying special election provisions; clarifying terminology; modifying campaign finance definitions; establishing and modifying disclaimer requirements; modifying laws on transition expenses; modifying statement of economic interest requirements; authorizing rulemaking; repealing the voting equipment grant account; requiring reports and publications; amending Minnesota Statutes 2024, sections 3.06; 3.099, subdivision 3; 3.303, subdivision 3; 3.305, subdivisions 1, 9; 3.971, subdivisions 2, 8a, 9, by adding a subdivision; 10A.01, subdivisions 21, 22, 26, 26b, by adding a subdivision; 10A.04, subdivision 4; 10A.06; 10A.09, subdivision 1; 10A.20, by adding a subdivision; 11A.07, subdivisions 4, 4b; 11A.24, by adding a subdivision; 13.04, subdivision 4; 13.485, subdivision 1, by adding a subdivision; 13D.02, subdivisions 1, 4; 14.48, subdivisions 1, 2; 14.62, subdivisions 1, 2a, by adding a subdivision; 15A.082, subdivisions 3, 7; 16A.057, subdivision 5; 16A.103, subdivision 1a; 16A.152, subdivision 8; 16A.28, subdivision 3; 16B.055, subdivision 1; 16B.335, subdivision 2; 16B.48, subdivision 4; 16B.54, subdivision 2; 16B.97, subdivision 1; 16B.98, subdivisions 1, 4, 5, by adding a subdivision; 16B.981, subdivision 4; 16B.991, subdivision 2; 16C.05, subdivision 2, by adding a subdivision; 16C.137, subdivision 2; 16C.16, subdivisions 2, 6, 6a, 7; 16D.09, subdivision 1; 43A.01, subdivision 3; 43A.02, subdivision 14; 43A.04, subdivisions 1, 4, 8; 43A.05, subdivision 3; 43A.08, subdivisions 1a, 4; 43A.11, subdivision 9; 43A.121; 43A.15, subdivisions 4, 7, 12, 14; 43A.17, subdivision 5; 43A.18, subdivision 2; 43A.181, subdivision 1; 43A.1815; 43A.19, subdivision 1; 43A.23, subdivisions 1, 2; 43A.24, subdivisions 1a, 2;


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43A.27, subdivisions 2, 3; 43A.33, subdivision 3; 43A.346, subdivisions 2, 6; 43A.36, subdivision 1; 43A.421; 117.036, subdivision 2; 151.741, subdivision 5; 155A.23, by adding a subdivision; 155A.27, subdivision 2; 155A.2705, subdivision 3; 155A.30, subdivision 2; 181.931, by adding subdivisions; 181.932, subdivision 1; 201.054, subdivisions 1, 2; 201.056; 201.061, subdivisions 1, 3, 3a, 4, 5, 7; 201.071, subdivisions 1, 4; 201.091, subdivisions 5, 8; 201.121, subdivisions 1, 3; 201.13, subdivision 3; 201.14; 201.161, subdivisions 4, 5, 8; 201.162; 201.225, subdivisions 2, 5; 201.275; 203B.04, subdivisions 1, 4; 203B.06, subdivision 4; 203B.07, subdivisions 1, 3; 203B.08, subdivisions 1, 3; 203B.081, subdivision 4; 203B.121, subdivisions 4, 5; 203B.17, subdivision 3; 203B.23, subdivision 2; 203B.29, subdivisions 1, 2; 203B.30, subdivisions 2, 3; 204B.06, subdivisions 1, 1b; 204B.07, subdivision 2; 204B.09, subdivisions 1a, 2, 3; 204B.14, subdivisions 2, 4a; 204B.16, subdivisions 1a, 4; 204B.175, subdivision 3; 204B.19, subdivision 5; 204B.24; 204B.25, subdivision 1; 204B.28, subdivision 2; 204B.44; 204B.45, subdivision 2; 204C.05, subdivision 2; 204C.06, subdivisions 1, 2, 6; 204C.08, subdivision 1d; 204C.09, subdivision 1; 204C.10; 204C.15, subdivisions 2, 3; 204C.24, subdivision 1; 204C.32, subdivision 1; 204C.33, subdivision 1; 204D.19, subdivisions 1, 2, 3; 204D.195; 205.13, subdivisions 1, 1a; 205A.06, subdivisions 1, 1a; 205A.11, subdivision 2; 206.83; 206.845, subdivision 1; 211A.02, subdivisions 1, 2; 211B.20, subdivision 2, by adding a subdivision; 211B.32, subdivision 4; 211B.35, subdivision 2; 222.37, subdivision 1; 240.131, subdivision 7; 326.05; 326.10, subdivisions 1, 2, 10; 326.111, subdivisions 3, 4, 5, by adding a subdivision; 326A.03, subdivision 6, by adding subdivisions; 326A.14; 331A.10, subdivision 2; 349A.01, by adding a subdivision; 349A.06, subdivisions 2, 4, 11; 367.36, subdivision 1; 368.47; 375.20; 383B.041, subdivision 5; 383C.035; 412.02, subdivision 3; 412.341, subdivision 1, by adding a subdivision; 412.591, subdivision 3; 414.09, subdivision 3; 447.32, subdivision 4; 471.6985, subdivision 2; 477A.017, subdivision 3; 609.48, subdivision 1; Laws 1992, chapter 534, sections 7, subdivisions 1, 2, 3; 8, subdivision 2; 10, subdivision 4; 16; Laws 2023, chapter 53, article 17, section 2, subdivision 1; Laws 2023, chapter 62, article 1, sections 11, subdivision 2; 13; 47; Laws 2024, chapter 127, article 67, section 6; proposing coding for new law in Minnesota Statutes, chapters 1; 5; 6; 8; 10A; 13; 15; 204B; 211B; 300; 383A; 471; repealing Minnesota Statutes 2024, sections 3.8842; 3.8845; 16A.90; 16B.328, subdivision 2; 16B.356; 16B.357; 16B.358; 16B.359; 16B.45; 16C.36; 43A.315; 43A.317, subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 10, 12; 43A.318, subdivisions 1, 2, 4, 5; 204B.25, subdivision 3; 206.57, subdivision 5b; 206.95; 211B.06; 211B.08; 383C.07; 383C.74, subdivisions 1, 2, 3, 4; Laws 2019, First Special Session chapter 3, article 2, section 34, as amended; Laws 2022, chapter 50, article 3, section 2; Minnesota Rules, part 1105.7900, item D."

 

      We request the adoption of this report and repassage of the bill.

 

      Senate Conferees:  Tou Xiong, Erin Maye Quade, Jim Carlson and Bonnie Westlin.

 

 

 

      House Conferees:  Ginny Klevorn, Mike Freiberg, Jim Nash and Pam Altendorf.

 

 

      Klevorn moved that the report of the Conference Committee on S. F. No. 3045 be adopted and that the bill be repassed as amended by the Conference Committee.  The motion prevailed.

 

 

S. F. No. 3045, A bill for an act relating to state government operations; establishing a biennial budget; appropriating money for the legislature, certain constitutional offices and state agencies, the Minnesota Historical Society, the Minnesota Humanities Center, certain retirement accounts, certain offices, departments, boards, commissions, councils, general contingent account, and tort claims; transferring money; raising fees; making changes to policy provisions for state government operations and local government policy; modifying state personnel management policies; modifying business filing and fraud policies; creating a task force; repealing provisions; modifying various laws related to election administration; modifying voting and absentee voting requirements and procedures; formalizing the election reporting system; clarifying terminology; expanding laws


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4577

relating to reprisals for political activity; expanding election-related bribery and solicitation prohibitions; amending fair campaign practices laws; requiring the Campaign Finance and Public Disclosure Board to study campaign spending limits; modifying campaign finance definitions; establishing and modifying disclaimer requirements; amending standards for coordinated and noncoordinated expenditures and disbursements; modifying laws on transition expenses; modifying campaign finance definitions; modifying statement of economic interest requirements; modifying payment for the presidential nomination primary; providing for civil causes of action and civil enforcement; providing criminal and civil penalties; authorizing rulemaking; repealing the voting equipment grant account; requiring reports and publications; amending Minnesota Statutes 2024, sections 3.06; 3.084, subdivision 2; 3.971, subdivisions 2, 8a, 9; 10A.01, subdivisions 16a, 18, 21, 22, 24, 26, 26b, 35, by adding a subdivision; 10A.04, subdivisions 4, 6; 10A.06; 10A.07, subdivisions 1, 2; 10A.08, subdivision 1; 10A.09, subdivisions 1, 5, 5a, 6a; 10A.175, by adding a subdivision; 10A.176; 10A.177; 10A.20, by adding a subdivision; 10A.201, subdivision 6; 10A.202, subdivision 4; 10A.36; 11A.24, by adding a subdivision; 13.485, subdivision 1, by adding a subdivision; 13D.02, subdivisions 1, 4; 14.48, subdivisions 1, 2; 14.62, subdivisions 1, 2a, by adding a subdivision; 15B.06, subdivision 1; 16A.152, subdivision 8; 16B.055, subdivision 1; 16B.335, subdivision 2; 16B.48, subdivision 4; 16B.54, subdivision 2; 16B.97, subdivision 1, by adding a subdivision; 16B.98, subdivisions 1, 4; 16B.981, subdivision 4; 16B.991, subdivision 2; 16C.05, by adding a subdivision; 16C.137, subdivision 2; 16C.16, subdivisions 2, 6, 6a, 7; 16D.09, subdivision 1; 43A.01, subdivision 3; 43A.02, subdivision 14; 43A.04, subdivisions 1, 4, 8; 43A.05, subdivision 3; 43A.08, subdivisions 1a, 4; 43A.11, subdivision 9; 43A.121; 43A.15, subdivisions 4, 7, 12, 14; 43A.17, subdivision 5; 43A.181, subdivision 1; 43A.1815; 43A.19, subdivision 1; 43A.23, subdivisions 1, 2; 43A.231, subdivisions 3, 4, 6; 43A.24, subdivisions 1a, 2; 43A.27, subdivisions 2, 3; 43A.33, subdivision 3; 43A.346, subdivisions 2, 6; 43A.36, subdivision 1; 43A.421; 124E.03, by adding a subdivision; 155A.23, by adding a subdivision; 155A.27, subdivision 2; 155A.2705, subdivision 3; 155A.30, subdivision 2; 201.054, subdivisions 1, 2; 201.056; 201.061, subdivisions 1, 3, 3a, 4, 5, 7; 201.071, subdivisions 1, 4; 201.091, subdivisions 5, 8; 201.121, subdivisions 1, 3; 201.13, subdivision 3; 201.14; 201.161, subdivisions 4, 5, 8; 201.162; 201.225, subdivisions 2, 5; 201.275; 202A.20, subdivision 2; 203B.04, subdivisions 1, 4; 203B.05, subdivision 1; 203B.06, subdivision 4; 203B.07, subdivisions 1, 3; 203B.08, subdivisions 1, 3; 203B.081, subdivision 4; 203B.11, subdivision 1; 203B.121, subdivisions 2, 4, 5; 203B.17, subdivision 3; 203B.23, subdivision 2; 203B.29, subdivisions 1, 2; 203B.30, subdivisions 2, 3; 204B.06, subdivisions 1, 1b; 204B.07, subdivision 2; 204B.09, subdivisions 1a, 2, 3; 204B.14, subdivisions 2, 4a; 204B.16, subdivision 1a; 204B.175, subdivision 3; 204B.21, subdivisions 1, 2, by adding a subdivision; 204B.24; 204B.25, subdivision 3; 204B.28, subdivision 2; 204B.44; 204B.45, subdivision 2; 204C.05, subdivision 2; 204C.06, subdivisions 1, 2, 6; 204C.08, subdivision 1d; 204C.09, subdivision 1; 204C.10; 204C.15, subdivisions 2, 3; 204C.24, subdivision 1; 204C.32, subdivision 1; 204C.33, subdivision 1; 205.07, by adding a subdivision; 205.075, subdivision 4; 205.13, subdivisions 1, 1a; 205.185, subdivision 3; 205A.06, subdivisions 1, 1a; 205A.10, subdivisions 2, 3; 205A.11, subdivision 2; 206.83; 207A.11; 211A.02, subdivisions 1, 2; 211B.04, subdivisions 1, 2, 3, 5, by adding a subdivision; 211B.13; 211B.32, subdivisions 1, 4; 211B.35, subdivision 2; 222.37, subdivision 1; 240.131, subdivision 7; 302A.153; 303.06, by adding a subdivision; 303.21; 308A.131, subdivision 2; 308B.215, subdivision 2; 317A.151, subdivision 2; 321.0206; 322C.0201, subdivision 4; 322C.0802; 323A.0101; 326.05; 326.10, subdivisions 1, 2, 10; 326.111, subdivisions 3, 4, 5, by adding a subdivision; 326A.03, subdivision 6, by adding subdivisions; 326A.14; 331A.10, subdivision 2; 349A.01, by adding a subdivision; 349A.06, subdivisions 2, 4, 11; 367.36, subdivision 1; 368.47; 375.20; 383B.041, subdivision 5; 383C.035; 412.02, subdivision 3; 412.591, subdivision 3; 414.09, subdivision 3; 447.32, subdivision 4; 466.01, subdivision 1; 477A.017, subdivision 3; 609.48, subdivision 1; Laws 2023, chapter 62, article 1, sections 11, subdivision 2; 13; proposing coding for new law in Minnesota Statutes, chapters 1; 5; 6; 8; 10A; 15; 16B; 16C; 204B; 207A; 211B; 300; 383A; 471; repealing Minnesota Statutes 2024, sections 16B.328, subdivision 2; 16B.45; 16B.98, subdivision 14; 16C.36; 43A.315; 43A.317, subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 10, 12;
Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4578

43A.318, subdivisions 1, 2, 4, 5; 206.57, subdivision 5b; 206.95; 209.06; 211B.04, subdivision 4; 211B.06; 211B.08; 383C.07; 383C.74, subdivisions 1, 2, 3, 4; 471.9998; Laws 2023, chapter 53, article 17, section 2; Laws 2024, chapter 120, article 3, section 2; Minnesota Rules, parts 1105.7900, item D; 4503.2000, subpart 2; 4511.1100.

 

 

      The bill was read for the third time, as amended by Conference, and placed upon its repassage.

 

      The question was taken on the repassage of the bill and the roll was called.     There were 116 yeas and 18 nays as follows:

 

      Those who voted in the affirmative were:

 


Acomb

Agbaje

Allen

Altendorf

Anderson, P. E.

Anderson, P. H.

Bahner

Bakeberg

Baker

Bennett

Berg

Bierman

Bliss

Burkel

Carroll

Cha

Clardy

Coulter

Curran

Davids

Dotseth

Duran

Elkins

Engen

Falconer

Feist

Finke

Fischer

Franson

Frazier

Frederick

Freiberg

Gander

Gillman

Gomez

Gottfried

Greene

Greenman

Hansen, R.

Hanson, J.

Hemmingsen-Jaeger

Her

Hicks

Hill

Hollins

Hortman

Howard

Hudson

Huot

Hussein

Igo

Jacob

Johnson, P.

Jones

Jordan

Keeler

Klevorn

Koegel

Kotyza-Witthuhn

Kozlowski

Kraft

Kresha

Lawrence

Lee, F.

Lee, K.

Liebling

Lillie

Long

Mahamoud

McDonald

Moller

Momanyi-Hiltsley

Mueller

Myers

Nadeau

Nash

Nelson

Niska

Noor

Norris

Novotny

O'Driscoll

Olson

Pérez-Vega

Perryman

Pinto

Pursell

Quam

Rarick

Rehm

Rehrauer

Repinski

Reyer

Robbins

Schomacker

Schwartz

Scott

Sencer-Mura

Sexton

Skraba

Smith

Stephenson

Stier

Swedzinski

Tabke

Torkelson

Vang

Virnig

Warwas

West

Witte

Wolgamott

Xiong

Youakim

Zeleznikar

Spk. Demuth


 

      Those who voted in the negative were:

 


Backer

Davis

Dippel

Fogelman

Gordon

Harder

Heintzeman

Johnson, W.

Joy

Knudsen

Koznick

Mekeland

Murphy

Roach

Rymer

Schultz

Van Binsbergen

Wiener


 

 

      The bill was repassed, as amended by Conference, and its title agreed to.

 

 

MOTIONS AND RESOLUTIONS

 

 

      Carroll moved that the name of Gottfried be added as an author on H. F. No. 2059.  The motion prevailed.

 

 

      Stephenson was excused for the remainder of today's session.


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4579

MOTION TO SUSPEND RULES

 

      Anderson, P. E., moved that the rules of the House be so far suspended so that S. F. No. 856 be recalled from the Committee on State Government Finance and Policy, be given its second and third reading and be placed upon its final passage.

 

 

      A roll call was requested and properly seconded.

 

 

MOTION TO LAY ON THE TABLE

 

      Freiberg moved that the Anderson P. E., motion be laid on the table.

 

 

      A roll call was requested and properly seconded.

 

 

      The question was taken on the Freiberg motion and the roll was called.  There were 65 yeas and 68 nays as follows:

 

      Those who voted in the affirmative were:

 


Acomb

Agbaje

Bahner

Berg

Bierman

Carroll

Cha

Clardy

Coulter

Curran

Elkins

Falconer

Feist

Finke

Fischer

Frazier

Frederick

Freiberg

Gomez

Gottfried

Greene

Greenman

Hansen, R.

Hanson, J.

Hemmingsen-Jaeger

Her

Hicks

Hill

Hollins

Hortman

Howard

Huot

Hussein

Johnson, P.

Jones

Jordan

Keeler

Klevorn

Koegel

Kotyza-Witthuhn

Kozlowski

Kraft

Lee, F.

Lee, K.

Liebling

Lillie

Long

Mahamoud

Moller

Momanyi-Hiltsley

Noor

Norris

Pérez-Vega

Pinto

Pursell

Rehm

Rehrauer

Reyer

Sencer-Mura

Smith

Tabke

Vang

Virnig

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

Dippel

Dotseth

Duran

Engen

Fogelman

Franson

Gander

Gillman

Gordon

Harder

Heintzeman

Hudson

Igo

Jacob

Johnson, W.

Joy

Knudsen

Koznick

Kresha

Lawrence

McDonald

Mekeland

Mueller

Murphy

Myers

Nadeau

Nash

Nelson

Niska

Novotny

O'Driscoll

Olson

Perryman

Quam

Rarick

Repinski

Roach

Robbins

Rymer

Schomacker

Schultz

Schwartz

Scott

Sexton

Skraba

Stier

Swedzinski

Torkelson

Van Binsbergen

Warwas

West

Wiener

Witte

Wolgamott

Zeleznikar

Spk. Demuth


 

 

      The motion did not prevail.


Journal Of the House - 42nd -Monday, May 19, 2025 - Top of Page 4580

       The question recurred on the Anderson, P. E., motion and the roll was called.  There were 70 yeas and 63 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

Johnson, W.

Joy

Knudsen

Koznick

Kresha

Lawrence

McDonald

Mekeland

Mueller

Murphy

Myers

Nadeau

Nash

Nelson

Niska

Norris

Novotny

O'Driscoll

Olson

Perryman

Quam

Rarick

Repinski

Roach

Robbins

Rymer

Schomacker

Schultz

Schwartz

Scott

Sexton

Skraba

Stier

Swedzinski

Tabke

Torkelson

Van Binsbergen

Warwas

West

Wiener

Witte

Wolgamott

Zeleznikar

Spk. Demuth


 

      Those who voted in the negative were:

 


Acomb

Agbaje

Bahner

Berg

Bierman

Carroll

Cha

Clardy

Coulter

Curran

Elkins

Falconer

Feist

Finke

Fischer

Frazier

Frederick

Freiberg

Gomez

Gottfried

Greene

Greenman

Hansen, R.

Hanson, J.

Hemmingsen-Jaeger

Her

Hicks

Hill

Hollins

Hortman

Howard

Huot

Hussein

Johnson, P.

Jones

Jordan

Keeler

Klevorn

Koegel

Kotyza-Witthuhn

Kozlowski

Kraft

Lee, F.

Lee, K.

Liebling

Lillie

Long

Mahamoud

Moller

Momanyi-Hiltsley

Noor

Pérez-Vega

Pinto

Pursell

Rehm

Rehrauer

Reyer

Sencer-Mura

Smith

Vang

Virnig

Xiong

Youakim


 

 

      Not having received the constitutionally required two-thirds vote, the motion did not prevail.

 

 

ADJOURNMENT

 

      Niska moved that the House adjourn.  The motion prevailed, and the Speaker declared the House stands adjourned until 12:00 noon, Tuesday, February 17, 2026.

 

 

Patrick Duffy Murphy, Chief Clerk, House of Representatives