Aging and disability services, behavioral health, health care, housing and economic supports, and Office of Inspector General provisions modified; language recodified; technical corrections made; and report required.

A bill for an act

relating to human services; modifying provisions relating to aging and disability

services, behavioral health, health care, housing and economic supports, and the

Office of the Inspector General; recodifying certain language; making technical

corrections; requiring a report; amending Minnesota Statutes 2024, sections 13A.03,

by adding a subdivision; 142B.01, subdivision 8; 245.095, subdivisions 2, 5;

245.991, subdivision 3; 245.992, subdivision 2; 245A.02, subdivisions 5a, 13;

245A.03, subdivision 7; 245A.043, subdivision 2; 245A.07, subdivision 2a;

245C.02, subdivision 18; 245C.03, subdivision 1; 245C.04, subdivision 1; 245C.15,

subdivisions 2, 3, 4; 245C.24, subdivision 2; 245D.04, subdivision 3; 245D.081,

subdivision 3; 245D.10, subdivision 4; 245F.02, subdivision 17; 245F.15,

subdivision 7; 245G.04, by adding a subdivision; 245G.11, subdivision 8; 245I.04,

by adding a subdivision; 245I.08, subdivision 4; 245I.10, subdivision 6; 254B.052,

subdivision 1; 256B.02, by adding a subdivision; 256B.04, subdivision 10;

256B.057, subdivision 9; 256B.0624, subdivisions 6b, 7; 256B.0625, subdivisions

4, 47, by adding a subdivision; 256B.064, subdivision 2; 256B.0759, subdivision

3; 256B.0911, subdivision 32; 256B.0924, subdivisions 3, 5, 7, by adding a

subdivision; 256B.0943, subdivision 6; 256B.0946, subdivision 4; 256B.0947,

subdivision 5; 256B.0949, subdivision 17, by adding a subdivision; 256B.27,

subdivision 3; 256B.4905, subdivision 2a; 256B.5012, subdivision 21; 256B.851,

subdivision 8; 256D.05, subdivision 1; 256D.06, subdivision 2; 256D.54,

subdivision 1; 256I.04, subdivision 2b; 256K.46, subdivision 5; 256L.05,

subdivision 3; 256L.06, subdivision 3; 256S.21, subdivision 3; 626.557,

subdivisions 9, 9a, 12b, by adding subdivisions; 626.5572, subdivisions 2, 9, 17,

by adding subdivisions; Minnesota Statutes 2025 Supplement, sections 245.469,

subdivision 1; 245A.03, subdivision 2; 245A.043, subdivision 2a; 245A.07,

subdivision 3; 245A.10, subdivision 4; 245A.142, subdivision 3; 245A.242,

subdivision 2; 245C.07; 245C.13, subdivision 2; 245C.15, subdivision 4a; 245C.22,

subdivision 5; 245D.091, subdivisions 2, 3; 245F.08, subdivision 3; 245G.11,

subdivision 7; 245I.04, subdivision 17; 254A.03, subdivision 3; 254B.0505,

subdivision 8; 254B.052, subdivision 6; 256B.04, subdivision 21; 256B.0759,

subdivision 4; 256B.0911, subdivision 13; 256B.0924, subdivision 6; 256B.0943,

subdivision 1; 256B.0947, subdivision 3a; 256B.0949, subdivisions 2, 16;

256B.4914, subdivision 10a; 256L.03, subdivision 5; 260E.03, subdivision 6;

260E.11, subdivision 1; 260E.14, subdivision 1; 626.5572, subdivision 13; Laws

2024, chapter 125, article 4, section 12, subdivision 5; proposing coding for new

law in Minnesota Statutes, chapter 256B; repealing Minnesota Statutes 2024,

sections 245A.02, subdivision 10b; 256B.0759, subdivisions 2, 5; 256B.5012,

subdivisions 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15, 16; 256D.09, subdivisions 2a, 2b;

256K.45, subdivision 2; 626.557, subdivision 10; Minnesota Statutes 2025

Supplement, section 245A.10, subdivision 3a; Minnesota Rules, part 9505.2165,

subpart 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

AGING AND DISABILITY SERVICES

Section 1.

Minnesota Statutes 2024, section 245A.03, subdivision 7, is amended to read:

Subd. 7.

Licensing moratorium.

(a) The commissioner shall not issue an initial license

for child foster care licensed under Minnesota Rules, parts
2960.3000
to
2960.3340
, which

does not include child foster residence settings with residential program certifications for

compliance with the Family First Prevention Services Act under section 245A.25, subdivision

1, paragraph (a), or adult foster care licensed under Minnesota Rules, parts
9555.5105
to

9555.6265
, under this chapter for a physical location that will not be the primary residence

of the license holder for the entire period of licensure. If a child foster residence setting that

was previously exempt from the licensing moratorium under this paragraph has its Family

First Prevention Services Act certification rescinded under section 245A.25, subdivision 9,

or if a family adult foster care home license is issued during this moratorium, and the license

holder changes the license holder's primary residence away from the physical location of

the foster care license, the commissioner shall revoke the license according to section

245A.07
. The commissioner shall not issue an initial license for a community residential

setting licensed under chapter 245D. When approving an exception under this paragraph,

the commissioner shall consider the resource need determination process in paragraph (h),

the availability of foster care licensed beds in the geographic area in which the licensee

seeks to operate, the results of a person's choices during their annual assessment and service

plan review, and the recommendation of the local county board. The determination by the

commissioner is final and not subject to appeal. Exceptions to the moratorium include:

(1) a license for a person in a foster care setting that is not the primary residence of the

license holder and where at least 80 percent of the residents are 55 years of age or older;

deleted text begin

(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, or

community residential setting licenses replacing adult foster care licenses in existence on

December 31, 2013, and determined to be needed by the commissioner under paragraph

(b);

deleted text end

deleted text begin

(3)
deleted text end
new text begin
(2)
new text end
new foster care licenses or community residential setting licenses determined to

be needed by the commissioner under paragraph (b) for the closure of a nursing facility,

ICF/DD, or regional treatment center; restructuring of state-operated services that limits

the capacity of state-operated facilities; or allowing movement to the community for people

who no longer require the level of care provided in state-operated facilities as provided

under section
256B.092
, subdivision 13, or
256B.49, subdivision 24
;
new text begin
or
new text end

deleted text begin

(4)
deleted text end
new text begin
(3)
new text end
new foster care licenses or community residential setting licenses determined to

be needed by the commissioner under paragraph (b) for persons requiring hospital-level

care
deleted text begin
; or
deleted text end
new text begin
.
new text end

deleted text begin

(5) new community residential setting licenses determined necessary by the commissioner

for people affected by the closure of homes with a capacity of five or six beds currently

licensed as supervised living facilities licensed under Minnesota Rules, chapter 4665, but

not designated as intermediate care facilities. This exception is available until June 30, 2025.

deleted text end

(b) The commissioner shall determine the need for newly licensed foster care homes or

community residential settings as defined under this subdivision. As part of the determination,

the commissioner shall consider the availability of foster care capacity in the area in which

the licensee seeks to operate, and the recommendation of the local county board. The

determination by the commissioner must be final. A determination of need is not required

for a change in ownership at the same address.

(c) When an adult resident served by the program moves out of a foster home that is not

the primary residence of the license holder according to section
256B.49, subdivision 15
,

paragraph (f), or the adult community residential setting, the county shall immediately

inform the Department of Human Services Licensing Division. The department may decrease

the statewide licensed capacity for adult foster care settings.

(d) Residential settings that would otherwise be subject to the decreased license capacity

established in paragraph (c) must be exempt if the license holder's beds are occupied by

residents whose primary diagnosis is mental illness and the license holder is certified under

the requirements in subdivision 6a or section
245D.33
.

(e) A resource need determination process, managed at the state level, using the available

data required by section
144A.351
, and other data and information must be used to determine

where the reduced capacity determined under section
256B.493
will be implemented. The

commissioner shall consult with the stakeholders described in section
144A.351
, and employ

a variety of methods to improve the state's capacity to meet the informed decisions of those

people who want to move out of corporate foster care or community residential settings,

long-term service needs within budgetary limits, including seeking proposals from service

providers or lead agencies to change service type, capacity, or location to improve services,

increase the independence of residents, and better meet needs identified by the long-term

services and supports reports and statewide data and information.

(f) At the time of application and reapplication for licensure, the applicant and the license

holder that are subject to the moratorium or an exclusion established in paragraph (a) are

required to inform the commissioner whether the physical location where the foster care

will be provided is or will be the primary residence of the license holder for the entire period

of licensure. If the primary residence of the applicant or license holder changes, the applicant

or license holder must notify the commissioner immediately. The commissioner shall print

on the foster care license certificate whether or not the physical location is the primary

residence of the license holder.

(g) License holders of foster care homes identified under paragraph (f) that are not the

primary residence of the license holder and that also provide services in the foster care home

that are covered by a federally approved home and community-based services waiver, as

authorized under chapter 256S or section
256B.092
or
256B.49
, must inform the human

services licensing division that the license holder provides or intends to provide these

waiver-funded services.

(h) The commissioner may adjust capacity to address needs identified in section

144A.351
. Under this authority, the commissioner may approve new licensed settings or

delicense existing settings. Delicensing of settings will be accomplished through a process

identified in section
256B.493
.

(i) The commissioner must notify a license holder when its corporate foster care or

community residential setting licensed beds are reduced under this section. The notice of

reduction of licensed beds must be in writing and delivered to the license holder by certified

mail or personal service. The notice must state why the licensed beds are reduced and must

inform the license holder of its right to request reconsideration by the commissioner. The

license holder's request for reconsideration must be in writing. If mailed, the request for

reconsideration must be postmarked and sent to the commissioner within 20 calendar days

after the license holder's receipt of the notice of reduction of licensed beds. If a request for

reconsideration is made by personal service, it must be received by the commissioner within

20 calendar days after the license holder's receipt of the notice of reduction of licensed beds.

(j) The commissioner shall not issue an initial license for children's residential treatment

services licensed under Minnesota Rules, parts
2960.0580
to
2960.0700
, under this chapter

for a program that Centers for Medicare and Medicaid Services would consider an institution

for mental diseases. Facilities that serve only private pay clients are exempt from the

moratorium described in this paragraph. The commissioner has the authority to manage

existing statewide capacity for children's residential treatment services subject to the

moratorium under this paragraph and may issue an initial license for such facilities if the

initial license would not increase the statewide capacity for children's residential treatment

services subject to the moratorium under this paragraph.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 2.

Minnesota Statutes 2025 Supplement, section 245D.091, subdivision 2, is amended

to read:

Subd. 2.

Positive support professional qualifications.

A positive support professional

providing positive support services as identified in section
245D.03, subdivision 1
, paragraph

(c), clause (1), item (i), must have competencies in the following areas as required under

the brain injury, community access for disability inclusion, community alternative care, and

developmental disabilities waiver plans or successor plans:

(1) ethical considerations;

(2) functional assessment;

(3) functional analysis;

(4) measurement of behavior and interpretation of data;

(5) selecting intervention outcomes and strategies;

(6) behavior reduction and elimination strategies that promote least restrictive approved

alternatives;

(7) data collection;

(8) staff and caregiver training;

(9) support plan monitoring;

(10) co-occurring mental disorders or neurocognitive disorder;

(11) demonstrated expertise with populations being served; and

(12) must be a:

(i) psychologist licensed under sections
148.88
to
148.98
, who has stated to the Board

of Psychology competencies in the above identified areas;

(ii) clinical social worker licensed as an independent clinical social worker under chapter

148E, or a person with a master's degree in social work from an accredited college or

university, with at least 4,000 hours of post-master's supervised experience in the delivery

of clinical services in the areas identified in clauses (1) to (11);

(iii) physician licensed under chapter 147 and certified by the American Board of

Psychiatry and Neurology or eligible for board certification in psychiatry with competencies

in the areas identified in clauses (1) to (11);

(iv) licensed professional clinical counselor licensed under sections
deleted text begin
148B.29 to 148B.39
deleted text end
new text begin

148B.5301 and 148B.532
new text end
with at least 4,000 hours of post-master's supervised experience

in the delivery of clinical services who has demonstrated competencies in the areas identified

in clauses (1) to (11);

(v) person with a master's degree from an accredited college or university in one of the

behavioral sciences or related fields, with at least 4,000 hours of post-master's supervised

experience in the delivery of clinical services with demonstrated competencies in the areas

identified in clauses (1) to (11);

(vi) person with a master's degree or PhD in one of the behavioral sciences or related

fields with demonstrated expertise in positive support services, as determined by the person's

needs as outlined in the person's assessment summary;

(vii) registered nurse who is licensed under sections
148.171
to
148.285
, and who is

certified as a clinical specialist or as a nurse practitioner in adult or family psychiatric and

mental health nursing by a national nurse certification organization, or who has a master's

degree in nursing or one of the behavioral sciences or related fields from an accredited

college or university or its equivalent, with at least 4,000 hours of post-master's supervised

experience in the delivery of clinical services; or

(viii) person who has completed a competency-based training program as determined

by the commissioner.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 3.

Minnesota Statutes 2025 Supplement, section 245D.091, subdivision 3, is amended

to read:

Subd. 3.

Positive support analyst qualifications.

(a) A positive support analyst providing

positive support services as identified in section
245D.03, subdivision 1
, paragraph (c),

clause (1), item (i), must satisfy one of the following requirements as required under the

brain injury, community access for disability inclusion, community alternative care, and

developmental disabilities waiver plans or successor plans:

(1) have obtained a baccalaureate degree, master's degree, or PhD in either a social

services discipline or nursing;

(2) meet the qualifications of a mental health practitioner as defined in section
245.462,

subdivision 17
;

(3) be a
deleted text begin
board-certified
deleted text end

new text begin
licensed
new text end
behavior analyst or
new text begin
a
new text end
board-certified assistant behavior

analyst
new text begin
certified
new text end
by the Behavior Analyst Certification Board, Incorporated; or

(4) have completed a competency-based training program as determined by the

commissioner.

(b) In addition, a positive support analyst must:

(1) either have two years of supervised experience conducting functional behavior

assessments and designing, implementing, and evaluating effectiveness of positive practices

behavior support strategies for people who exhibit challenging behaviors as well as

co-occurring mental disorders and neurocognitive disorder, or for those who have obtained

a baccalaureate degree in one of the behavioral sciences or related fields, demonstrated

expertise in positive support services;

(2) have received training prior to hire or within 90 calendar days of hire that includes:

(i) ten hours of instruction in functional assessment and functional analysis;

(ii) 20 hours of instruction in the understanding of the function of behavior;

(iii) ten hours of instruction on design of positive practices behavior support strategies;

(iv) 20 hours of instruction preparing written intervention strategies, designing data

collection protocols, training other staff to implement positive practice strategies,

summarizing and reporting program evaluation data, analyzing program evaluation data to

identify design flaws in behavioral interventions or failures in implementation fidelity, and

recommending enhancements based on evaluation data; and

(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).

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 4.

Minnesota Statutes 2024, section 256B.0625, is amended by adding a subdivision

to read:

new text begin

Subd. 77.

new text end

new text begin

Early intensive developmental and behavioral intervention benefit.

new text end

new text begin

Medical

assistance covers early intensive developmental and behavioral intervention services

according to section 256B.0949.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 5.

Minnesota Statutes 2025 Supplement, section 256B.0911, subdivision 13, is

amended to read:

Subd. 13.

MnCHOICES assessor qualifications, training, and certification.

(a) The

commissioner shall develop and implement a curriculum and an assessor certification

process.

(b) MnCHOICES certified assessors must have received training and certification specific

to assessment and consultation for long-term care services in the state and either:

(1) have at least an associate's degree in human services, or other closely related field;

(2) have at least an associate's degree in nursing with a public health nursing certificate,

or other closely related field; or

(3) be a registered nurse.

(c) Certified assessors shall demonstrate best practices in assessment and support

planning, including person-centered planning principles, and have a common set of skills

that ensures consistency and equitable access to services statewide.

(d) Certified assessors must be recertified every three years.

new text begin

(e) A Tribal Nation may establish the Tribal Nation's own education and experience

qualifications for certified assessors.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective January 1, 2027, or upon federal approval,

whichever is later.

new text end

Sec. 6.

Minnesota Statutes 2024, section 256B.0911, subdivision 32, is amended to read:

Subd. 32.

Administrative activity.

(a) The commissioner shall:

(1) streamline the processes, including timelines for when assessments need to be

completed;

(2) provide the services in this section; and

(3) implement integrated solutions to automate the business processes to the extent

necessary for support plan approval, reimbursement, program planning, evaluation, and

policy development.

(b) The commissioner shall work with lead agencies responsible for conducting long-term

care consultation services to
deleted text begin
:
deleted text end

deleted text begin

(1)
deleted text end
modify the MnCHOICES application and assessment policies to create efficiencies

while ensuring federal compliance with medical assistance and long-term services and

supports eligibility criteria
deleted text begin
; and
deleted text end
new text begin
.
new text end

deleted text begin

(2) develop a set of measurable benchmarks sufficient to demonstrate quarterly

improvement in the average time per assessment and other mutually agreed upon measures

of increasing efficiency.

deleted text end

deleted text begin

(c) The commissioner shall collect data on the benchmarks developed under paragraph

(b) and provide to the lead agencies an annual trend analysis of the data in order to

demonstrate the commissioner's compliance with the requirements of this subdivision.

deleted text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 7.

Minnesota Statutes 2024, section 256B.0924, subdivision 3, is amended to read:

Subd. 3.

Eligibility.

Persons are eligible to receive targeted case management services

under this section if the requirements in paragraphs (a) and (b) are met.

(a) The person must be assessed and determined by the local county
new text begin
or Tribal
new text end
agency

to:

(1) be age 18 or older;

(2) be receiving medical assistance;

(3) have significant functional limitations; and

(4) be in need of service coordination to attain or maintain living in an integrated

community setting.

(b)
new text begin
Except as permitted under paragraph (c),
new text end
the person must be
new text begin
: (i)
new text end
a vulnerable adult

in need of adult protection as defined in section
626.5572
deleted text begin
, or is
deleted text end
new text begin
; (ii)
new text end
an adult with a

developmental disability as defined in section
252A.02, subdivision 2
deleted text begin
, or
deleted text end
new text begin
; (iii) an adult with
new text end

a related condition as defined in section
256B.02
, subdivision 11,
deleted text begin
and
deleted text end
new text begin
who
new text end
is not receiving

home and community-based waiver services
deleted text begin
,
deleted text end
new text begin
;
new text end
or
deleted text begin
is
deleted text end
new text begin
(iv)
new text end
an adult who lacks a permanent

residence and who has been without a permanent residence for at least one year or on at

least four occasions in the last three years.

new text begin

(c) Tribal agencies may make a determination of eligibility under Tribal governance

codes for adult protection or policy procedures consistent with section 626.5572 when

determining whether a person is a vulnerable adult in need of adult protection or an adult

with developmental disabilities or a related condition.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective January 1, 2027, or upon federal approval,

whichever is later.

new text end

Sec. 8.

Minnesota Statutes 2024, section 256B.0924, subdivision 5, is amended to read:

Subd. 5.

Provider standards.

County boards
deleted text begin
or
deleted text end
new text begin
,
new text end
providers who contract with the county
new text begin
,

or Tribal government contracted providers
new text end
are eligible to receive medical assistance

reimbursement for adult targeted case management services. To qualify as a provider of

targeted case management services the vendor must:

(1) have demonstrated the capacity and experience to provide the activities of case

management services defined in subdivision 4;

(2) be able to coordinate and link community resources needed by the recipient;

(3) have the administrative capacity and experience to serve the eligible population in

providing services and to ensure quality of services under state and federal requirements;

(4) have a financial management system that provides accurate documentation of services

and costs under state and federal requirements;

(5) have the capacity to document and maintain individual case records complying with

state and federal requirements;

(6) coordinate with county social
deleted text begin
service
deleted text end
new text begin
services or Tribal human services
new text end
agencies

responsible for planning for community social services under chapters 256E and 256F;

conducting adult protective investigations under section
626.557
, and conducting prepetition

screenings for commitments under section
253B.07
;

(7) coordinate with health care providers to ensure access to necessary health care

services;

(8) have a procedure in place that notifies the recipient and the recipient's legal

representative of any conflict of interest if the contracted targeted case management service

provider also provides the recipient's services and supports and provides information on all

potential conflicts of interest and obtains the recipient's informed consent and provides the

recipient with alternatives; and

(9) have demonstrated the capacity to achieve the following performance outcomes:

access, quality, and consumer satisfaction.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective January 1, 2027, or upon federal approval,

whichever is later.

new text end

Sec. 9.

Minnesota Statutes 2024, section 256B.0924, is amended by adding a subdivision

to read:

new text begin

Subd. 5a.

new text end

new text begin

Tribal case manager qualifications.

new text end

new text begin

An individual is authorized to serve as

a vulnerable adult and developmental disability targeted case manager if the individual is

certified by a federally recognized Tribal government in Minnesota pursuant to section

256B.02, subdivision 7, paragraph (c).

new text end

Sec. 10.

Minnesota Statutes 2025 Supplement, section 256B.0924, subdivision 6, is

amended to read:

Subd. 6.

Payment for targeted case management.

(a) Medical assistance and

MinnesotaCare payment for targeted case management shall be made on a monthly basis.

In order to receive payment for an eligible adult, the provider must document at least one

contact per month and not more than two consecutive months without a face-to-face contact

either in person or by interactive video that meets the requirements in section 256B.0625,

subdivision 20b, with the adult or the adult's legal representative, family, primary caregiver,

or other relevant persons identified as necessary to the development or implementation of

the goals of the personal service plan.

(b) Except as provided under paragraph (m), payment for targeted case management

provided by county staff under this subdivision shall be based on the monthly rate

methodology under section
256B.094, subdivision 6
, paragraph (b), calculated as one

combined average rate together with adult mental health case management under section

256B.0625, subdivision 20
deleted text begin
, except for calendar year 2002
deleted text end
.
deleted text begin
In calendar year 2002, the rate

for case management under this section shall be the same as the rate for adult mental health

case management in effect as of December 31, 2001.
deleted text end
Billing and payment must identify the

recipient's primary population group to allow tracking of revenues.

(c) Payment for targeted case management provided by county-contracted vendors shall

be based on a monthly rate calculated in accordance with section
256B.076, subdivision 2
.
new text begin

Payment for case management provided by vendors who contract with a Tribe must be made

in accordance with Indian health service facility requirements. If a Tribe chooses to contract

with a vendor receiving payment not through an Indian health service facility, the rate must

be based on a monthly rate negotiated by the Tribe.
new text end
The rate must not exceed the rate charged

by the vendor for the same service to other payers. If the service is provided by a team of

contracted vendors, the team shall determine how to distribute the rate among its members.

No reimbursement received by contracted vendors shall be returned to the county
new text begin
or Tribe
new text end
,

except to reimburse the county
new text begin
or Tribe
new text end
for advance funding provided by the county
new text begin
or

Tribe
new text end
to the vendor.

(d) If the service is provided by a team that includes
new text begin
any combination of
new text end
contracted

vendors
deleted text begin
and
deleted text end
new text begin
,
new text end
county
new text begin
staff, and Tribal
new text end
staff, the costs for county staff participation on the

team shall be included in the rate for county-provided services. In this case, the contracted

vendor and the county
new text begin
and Tribal case managers
new text end
may each receive separate payment for

services provided by each entity in the same month. In order to prevent duplication of

services,
deleted text begin
the county
deleted text end
new text begin
each entity
new text end
must document
deleted text begin
, in the recipient's file,
deleted text end
the need for team

targeted case management and a description of the different roles of
deleted text begin
the team members
deleted text end
new text begin
staff
new text end
.

(e) Notwithstanding section
256B.19, subdivision 1
, the nonfederal share of costs for

targeted case management shall be provided by the recipient's county of responsibility, as

defined in sections
256G.01
to
256G.12
, from sources other than federal funds or funds

used to match other federal funds.
new text begin
If the service is provided by a Tribal agency, the recipient's

Tribe must provide the nonfederal share of costs, if any.
new text end

(f) The commissioner may suspend, reduce, or terminate reimbursement to a provider

that does not meet the reporting or other requirements of this section. The county of

responsibility, as defined in sections
256G.01
to
256G.12
,
new text begin
or Tribe when applicable,
new text end
is

responsible for any federal disallowances. The county may share this responsibility with

its contracted vendors.

(g) The commissioner shall set aside five percent of the federal funds received under

this section for use in reimbursing the state for costs of developing and implementing this

section.

(h) Payments to counties
new text begin
and Tribes
new text end
for targeted case management expenditures under

this section shall only be made from federal earnings from services provided under this

section. Payments to contracted vendors shall include both the federal earnings and the

county share.

(i) Notwithstanding section
256B.041
, county
new text begin
or Tribal
new text end
payments for the cost of case

management services provided by county
new text begin
or Tribal
new text end
staff shall not be made to the

commissioner of management and budget. For the purposes of targeted case management

services provided by county
new text begin
or Tribal
new text end
staff under this section, the centralized disbursement

of payments to counties
new text begin
or Tribes
new text end
under section
256B.041
consists only of federal earnings

from services provided under this section.

(j) If the recipient is a resident of a nursing facility, intermediate care facility, or hospital,

and the recipient's institutional care is paid by medical assistance, payment for targeted case

management services under this subdivision is limited to the lesser of:

(1) the last 180 days of the recipient's residency in that facility; or

(2) the limits and conditions which apply to federal Medicaid funding for this service.

(k) Payment for targeted case management services under this subdivision shall not

duplicate payments made under other program authorities for the same purpose.

(l) Any growth in targeted case management services and cost increases under this

section shall be the responsibility of the counties
new text begin
or Tribes
new text end
.

(m) The commissioner may make payments for Tribes according to section
256B.0625,

subdivision 34
, or other relevant federally approved rate setting methodologies for vulnerable

adult and developmental disability targeted case management provided by Indian health

services and facilities operated by a Tribe or Tribal organization.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective January 1, 2027, or upon federal approval,

whichever is later.

new text end

Sec. 11.

Minnesota Statutes 2024, section 256B.0924, subdivision 7, is amended to read:

Subd. 7.

Implementation and evaluation.

The commissioner of human services in

consultation with county boards
new text begin
and Tribal Nations
new text end
shall establish a program to accomplish

the provisions of subdivisions 1 to 6. The commissioner in consultation with county boards
new text begin

and Tribal Nations
new text end
shall establish performance measures to evaluate the effectiveness of

the targeted case management services. If a county
new text begin
or Tribe
new text end
fails to meet agreed-upon

performance measures, the commissioner may authorize contracted providers other than

the county
new text begin
or Tribe
new text end
. Providers contracted by the commissioner shall also be subject to the

standards in subdivision 6.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 12.

Minnesota Statutes 2025 Supplement, section 256B.0949, subdivision 2, is

amended to read:

Subd. 2.

Definitions.

(a) The terms used in this section have the meanings given in this

subdivision.

(b) "Advanced certification" means a person who has completed advanced certification

in an approved modality under subdivision 13, paragraph (b).

(c) "Agency" means the legal entity that is enrolled with Minnesota health care programs

as a medical assistance provider according to Minnesota Rules, part
9505.0195
, to provide

EIDBI services and that has the legal responsibility to ensure that its employees carry out

the responsibilities defined in this section. Agency includes a licensed individual professional

who practices independently and acts as an agency.

(d) "Autism spectrum disorder or a related condition" or "ASD or a related condition"

means either autism spectrum disorder (ASD) as defined in the current version of the

Diagnostic and Statistical Manual of Mental Disorders (DSM) or a condition that is found

to be closely related to ASD, as identified under the current version of the DSM, and meets

all of the following criteria:

(1) is severe and chronic;

(2) results in impairment of adaptive behavior and function similar to that of a person

with ASD;

(3) requires treatment or services similar to those required for a person with ASD; and

(4) results in substantial functional limitations in three core developmental deficits of

ASD: social or interpersonal interaction; functional communication, including nonverbal

or social communication; and restrictive or repetitive behaviors or hyperreactivity or

hyporeactivity to sensory input; and may include deficits or a high level of support in one

or more of the following domains:

(i) behavioral challenges and self-regulation;

(ii) cognition;

(iii) learning and play;

(iv) self-care; or

(v) safety.

(e) "Behavior analyst" means an individual licensed under sections
148.9981
to
148.9995

as a behavior analyst.

(f) "Clinical supervision" means the overall responsibility for the control and direction

of EIDBI service delivery, including
deleted text begin
individual treatment planning,
deleted text end
staff supervision,
new text begin

including observation and direction;
new text end
individual treatment plan
new text begin
development and
new text end
progress

monitoring
deleted text begin
,
deleted text end
new text begin
; family training and counseling;
new text end
and
deleted text begin
treatment review
deleted text end
new text begin
coordinated care

conference coordination
new text end
for each person. Clinical supervision is provided by a qualified

supervising professional (QSP) who takes full professional responsibility for the service

provided by each supervisee and the clinical effectiveness of all interventions.

(g) "Commissioner" means the commissioner of human services, unless otherwise

specified.

(h) "Comprehensive multidisciplinary evaluation" or "CMDE" means a comprehensive

evaluation of a person to determine medical necessity for EIDBI services based on the

requirements in subdivision 5.

(i) "Department" means the Department of Human Services, unless otherwise specified.

(j) "Early intensive developmental and behavioral intervention benefit" or "EIDBI

benefit" means a variety of individualized, intensive treatment modalities approved and

published by the commissioner that are based in behavioral and developmental science

consistent with best practices on effectiveness.

(k) "Employee of an agency" or "employee" means any individual who is employed

temporarily, part time, or full time by the agency that is submitting claims or billing for the

work, services, supervision, or treatment performed by the individual. Employee does not

include an independent contractor, billing agency, or consultant who is not providing EIDBI

services. Employee does not include an individual who performs work, provides services,

supervises, or provides treatment for less than 80 hours in a 12-month period.

(l) "Generalizable goals" means results or gains that are observed during a variety of

activities over time with different people, such as providers, family members, other adults,

and people, and in different environments including, but not limited to, clinics, homes,

schools, and the community.

(m) "Incident" means when any of the following occur:

(1) an illness, accident, or injury that requires first aid treatment;

(2) a bump or blow to the head; or

(3) an unusual or unexpected event that jeopardizes the safety of a person or staff,

including a person leaving the agency unattended.

(n) "Individual treatment plan" or "ITP" means the person-centered, individualized

written plan of care that integrates and coordinates person and family information from the

CMDE for a person who meets medical necessity for the EIDBI benefit. An individual

treatment plan must meet the standards in subdivision 6.

(o) "Legal representative" means the parent of a child who is under 18 years of age, a

court-appointed guardian, or other representative with legal authority to make decisions

about service for a person. For the purpose of this subdivision, "other representative with

legal authority to make decisions" includes a health care agent or an attorney-in-fact

authorized through a health care directive or power of attorney.

(p) "Mental health professional" means a staff person who is qualified according to

section
245I.04, subdivision 2
.

(q) "Person" means an individual under 21 years of age.

(r) "Person-centered" means a service that both responds to the identified needs, interests,

values, preferences, and desired outcomes of the person or the person's legal representative

and respects the person's history, dignity, and cultural background and allows inclusion and

participation in the person's community.

(s) "Qualified EIDBI provider" means an individual who is a QSP or a level I, level II,

or level III treatment provider.

Sec. 13.

Minnesota Statutes 2025 Supplement, section 256B.0949, subdivision 16, is

amended to read:

Subd. 16.

Agency duties.

(a) An agency delivering an EIDBI service under this section

must:

(1) enroll as a medical assistance Minnesota health care program provider according to

Minnesota Rules, part
9505.0195
, and section
256B.04, subdivision 21
, and meet all

applicable provider standards and requirements;

(2) designate an individual as the agency's compliance officer who must perform the

duties described in section
256B.04, subdivision 21
, paragraph (g);

(3) demonstrate compliance with federal and state laws for the delivery of and billing

for EIDBI service;

(4) verify and maintain records of a service provided to the person or the person's legal

representative as required under Minnesota Rules, parts
9505.2175
and
9505.2197
;

(5) demonstrate that while enrolled or seeking enrollment as a Minnesota health care

program provider the agency did not have a lead agency contract or provider agreement

discontinued because of a conviction of fraud; or did not have an owner, board member, or

manager fail a state or federal criminal background check or appear on the list of excluded

individuals or entities maintained by the federal Department of Human Services Office of

Inspector General;

(6) have established business practices including written policies and procedures, internal

controls, and a system that demonstrates the organization's ability to deliver quality EIDBI

services, appropriately submit claims, conduct required staff training, document staff

qualifications, document service activities, and document service quality;

(7) have an office located in Minnesota or a border state;

(8) initiate a background study as required under subdivision 16a;

(9) report maltreatment according to section
626.557
and chapter 260E;

(10) comply with any data requests consistent with the Minnesota Government Data

Practices Act, sections
256B.064
and
256B.27
;

(11) provide training for all agency staff on the requirements and responsibilities listed

in the Maltreatment of Minors Act, chapter 260E, and the Vulnerable Adult Protection Act,

section
626.557
, including mandated and voluntary reporting, nonretaliation, and the agency's

policy for all staff on how to report suspected abuse and neglect;

(12) have a written policy to resolve issues collaboratively with the person and the

person's legal representative when possible. The policy must include a timeline for when

the person and the person's legal representative will be notified about issues that arise in

the provision of services;

(13) provide the person's legal representative with prompt notification if the person is

injured while being served by the agency. An incident report must be completed by the

agency staff member in charge of the person. A copy of all incident and injury reports must

remain on file at the agency for at least five years from the report of the incident;

(14) before starting a service, provide the person or the person's legal representative a

description of the treatment modality that the person shall receive, including the staffing

certification levels and training of the staff who shall provide a treatment;

(15) provide clinical supervision for a minimum of one hour for every 16 hours of direct

treatment per person, unless otherwise authorized in the person's individual treatment plan;

and

(16) provide
new text begin
the
new text end
required EIDBI intervention observation and direction
new text begin
by a QSP or

Level I provider
new text end
at least once per month. Notwithstanding subdivision 13, paragraph (l),

required EIDBI intervention observation and direction under this clause may be conducted

via telehealth provided that no more than two consecutive monthly required EIDBI

intervention observation and direction sessions under this clause are conducted via telehealth.

(b) Upon request of the commissioner, an agency delivering services under this section

must:

(1) identify the agency's controlling individuals, as defined under section
245A.02,

subdivision 5a
;

(2) provide disclosures of the use of billing agencies and other consultants who do not

provide EIDBI services; and

(3) provide copies of any contracts with consultants or independent contractors who do

not provide EIDBI services, including hours contracted and responsibilities.

(c) When delivering the ITP, and annually thereafter, an agency must provide the person

or the person's legal representative with:

(1) a written copy and a verbal explanation of the person's or person's legal

representative's rights and the agency's responsibilities;

(2) documentation in the person's file the date that the person or the person's legal

representative received a copy and explanation of the person's or person's legal

representative's rights and the agency's responsibilities; and

(3) reasonable accommodations to provide the information in another format or language

as needed to facilitate understanding of the person's or person's legal representative's rights

and the agency's responsibilities.

Sec. 14.

Minnesota Statutes 2024, section 256B.0949, is amended by adding a subdivision

to read:

new text begin

Subd. 19.

new text end

new text begin

Documentation requirements.

new text end

new text begin

(a) CMDE and EIDBI providers must ensure

that all documentation, including but not limited to health service records and personnel

files, complies with this subdivision, subdivision 16, and Minnesota Rules, parts 9505.2175

and 9505.2197. Documentation must be complete, legible, accurate, and readily accessible.

new text end

new text begin

(b) All documentation must:

new text end

new text begin

(1) be legible and understandable to individuals outside service delivery;

new text end

new text begin

(2) include the participant's name on each health record page and the provider's name

on each personnel file page;

new text end

new text begin

(3) be signed and dated by the provider completing the documentation, with the provider's

full name, title, and credentials;

new text end

new text begin

(4) be entered within 72 hours of service, and contain a record and explanation of any

delays in entry;

new text end

new text begin

(5) clearly reflect clinical decision-making and support medical necessity;

new text end

new text begin

(6) be securely stored in accordance with the Health Insurance Portability and

Accountability Act (HIPAA), Public Law 104-191;

new text end

new text begin

(7) be stored in accordance with state and federal document retention laws;

new text end

new text begin

(8) be available for review or audit;

new text end

new text begin

(9) include a record of caregiver involvement where applicable; and

new text end

new text begin

(10) include a record of supervision and oversight for staff providing services requiring

supervision under EIDBI policy.

new text end

new text begin

(c) Each EIDBI service occurrence must be documented in a progress note in a manner

and with the information determined by the commissioner.

new text end

new text begin

(d) All providers must maintain current personnel records for each employee in a manner

determined by the commissioner that include:

new text end

new text begin

(1) the employee's name, contact information, and hire date;

new text end

new text begin

(2) the employee's completed employment application and acknowledgment of duties;

new text end

new text begin

(3) the job description for the employee's job with the effective date;

new text end

new text begin

(4) verification of the employee's qualifications, including but not limited to education,

licenses, certifications, enrollment attestation, degrees, transcripts, and experience;

new text end

new text begin

(5) a background check pursuant to chapter 245C;

new text end

new text begin

(6) orientation and required training the employee attended, including but not limited

to training on mandated reporting, cultural responsiveness, and EIDBI competencies;

new text end

new text begin

(7) the dates of the employee's first supervised and unsupervised client contact following

employment;

new text end

new text begin

(8) documentation of supervision received by the employee, including but not limited

to the supervisor's name and credentials, dates of supervision, and supervision content;

new text end

new text begin

(9) the employee's CPR and emergency response training, if required; and

new text end

new text begin

(10) the employee's annual performance evaluations.

new text end

Sec. 15.

Minnesota Statutes 2024, section 256B.4905, subdivision 2a, is amended to read:

Subd. 2a.

Informed choice policy.

(a) It is the policy of this state that all adults who

have disabilities and, with support from their families or legal representatives, that all

children who have disabilities:

(1) may make informed choices to select and utilize disability services and supports;

and

(2) are offered an informed decision-making process sufficient to make informed choices.

(b) It is the policy of this state that disability waivers services support the presumption

that adults who have disabilities and, with support from their families or legal representatives,

all children who have disabilities may make informed choices; and that all adults who have

disabilities and all families of children who have disabilities and are accessing waiver

services under sections
256B.092
and
256B.49
are provided an informed decision-making

process that satisfies the requirements of subdivision 3a.

new text begin

(c) Lead agencies must support individuals in making informed choices by:

new text end

new text begin

(1) providing complete and accurate information about available home and

community-based services and settings;

new text end

new text begin

(2) providing the information in a manner that is culturally and linguistically appropriate;

and

new text end

new text begin

(3) facilitating access to services that reflect the individual's preferences and assessed

needs.

new text end

new text begin

(d) For individuals who are members of or affiliated with a federally recognized Tribal

Nation located within Minnesota, informed choice includes the right to receive services

administered or provided by the individual's Tribal Nation. Lead agencies must:

new text end

new text begin

(1) inform individuals of services offered by Tribal Nations enrolled as Minnesota health

care providers;

new text end

new text begin

(2) directly coordinate with the individual's Tribal Nation human services agency when

the individual seeks or may be eligible for services administered or provided by that Tribal

Nation; and

new text end

new text begin

(3) ensure that service planning and delivery respects the individual's rights as both a

member of a sovereign Tribal Nation and a resident of Minnesota.

new text end

new text begin

(e) County lead agencies and Tribal Nation human services agencies must establish and

maintain procedures to share updated contact information, coordinate case management,

and provide timely referrals necessary to ensure that informed choice is fully exercised.

new text end

new text begin

(f) Nothing in this section limits the sovereignty of Tribal Nations or the authority of

Tribal governments to administer home and community-based services to their members.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 16.

Minnesota Statutes 2025 Supplement, section 256B.4914, subdivision 10a, is

amended to read:

Subd. 10a.

Reporting and analysis of cost data.

(a) The commissioner must ensure

that wage values and component values in subdivisions 5 to 9 reflect the cost to provide the

service. As determined by the commissioner, in consultation with community partners

identified in subdivision 17, a provider enrolled to provide services with 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.

(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.
new text begin
The

commissioner may review report submissions for inaccurate, inconclusive, incomplete, or

otherwise deficient data and may remove the report from submitted status for further

verification.
new text end
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
new text begin
and reviewed for compliance
new text end

by the commissioner.

(c) The commissioner shall conduct a random validation of data submitted under

paragraph (a) to ensure data accuracy.
new text begin
Providers selected to validate cost reports must

respond to the commissioner within 30 days with the requested financial documentation. If

a provider fails to respond to the commissioner with all the requested information within

30 days, the commissioner must temporarily suspend payments. The commissioner must

resume payments once the requested documentation is received. If a provider is unable to

validate the provider's costs with supporting documentation, the commissioner must require

the provider to participate in the random validation the next year that the commissioner

selects providers to report their costs.
new text end
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.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective January 1, 2027.

new text end

Sec. 17.

Minnesota Statutes 2024, section 256B.5012, subdivision 21, is amended to read:

Subd. 21.

ICF/DD rate increases after January 1, 2025.

Beginning January 1, 2025,

and every year thereafter, the
new text begin
minimum daily operating
new text end
rates under this section must be

updated for the percentage change in the Consumer Price Index (CPI-U) from the previous

July 1 to the data available 12 months and one day prior.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 18.

Minnesota Statutes 2024, section 256B.851, subdivision 8, is amended to read:

Subd. 8.

Personal care provider agency; required reporting of cost data; training.

(a)

As determined by the commissioner and in consultation with stakeholders, agencies enrolled

to provide services with rates determined under this section must submit requested cost data

to the commissioner. The commissioner may request cost data, including but not limited

to:

(1) worker wage costs;

(2) benefits paid;

(3) supervisor wage costs;

(4) executive wage costs;

(5) vacation, sick, and training time paid;

(6) taxes, workers' compensation, and unemployment insurance costs paid;

(7) administrative costs paid;

(8) program costs paid;

(9) transportation costs paid;

(10) staff vacancy rates; and

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

commissioner.

(b) At least once in any three-year period, a provider must submit the required cost data

for a fiscal year that ended not more than 18 months prior to the submission date. The

commissioner must provide each provider a 90-day notice prior to its submission due date.
new text begin

The commissioner may review report submissions for inaccurate, inconclusive, incomplete,

or otherwise deficient data and may remove the report from submitted status for further

verification.
new text end
If a provider fails to submit required cost data, the commissioner must provide

notice to a provider that has not provided required cost data 30 days after the required

submission date and a second notice to a provider that has not provided required cost data

60 days after the required submission date. The commissioner must temporarily suspend

payments to a provider if the commissioner has not received required cost data 90 days after

the required submission date. The commissioner must make withheld payments when the

required cost data is received
new text begin
and reviewed for compliance
new text end
by the commissioner.

(c) The commissioner must conduct a random validation of data submitted under this

subdivision to ensure data accuracy.
new text begin
A provider selected to validate the provider's cost

reports must respond to the commissioner within 30 days with the requested financial

documentation. If a provider fails to respond to the commissioner with the requested

information within 30 days, the commissioner must temporarily suspend payments. The

commissioner must resume payments once the requested documentation is received. If a

provider is unable to validate the provider's costs with supporting documentation, the

commissioner must require the provider to participate in the random validation the next

year that the commissioner selects providers to report their costs.
new text end
The commissioner shall

analyze cost documentation in paragraph (a) and provide recommendations for adjustments

to cost components.

(d) The commissioner, in consultation with stakeholders, must develop and implement

a process for providing training and technical assistance necessary to support provider

submission of cost data required under this subdivision.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective January 1, 2027.

new text end

Sec. 19.

Minnesota Statutes 2024, section 256S.21, subdivision 3, is amended to read:

Subd. 3.

Cost reporting.

(a) As determined by the commissioner, in consultation with

stakeholders, a provider enrolled to provide services with rates determined under this chapter

must submit requested cost data to the commissioner to support evaluation of the rate

methodologies in this chapter. Requested cost data may include but are not limited to:

(1) worker wage costs;

(2) benefits paid;

(3) supervisor wage costs;

(4) executive wage costs;

(5) vacation, sick, and training time paid;

(6) taxes, workers' compensation, and unemployment insurance costs paid;

(7) administrative costs paid;

(8) program costs paid;

(9) transportation costs paid;

(10) vacancy rates; and

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

commissioner.

(b) At least once in any five-year period, a provider must submit
new text begin
the required
new text end
cost data

for a fiscal year that ended not more than 18 months prior to the submission date. The

commissioner
deleted text begin
shall
deleted text end
new text begin
must
new text end
provide each provider a 90-day notice prior to the provider's

submission due date.
new text begin
The commissioner may review report submissions for inaccurate,

inconclusive, incomplete, or otherwise deficient data and may remove the report from

submitted status for further verification.
new text end
If by 30 days after the required submission date a

provider fails to submit required reporting data, the commissioner
deleted text begin
shall
deleted text end
new text begin
must
new text end
provide notice

to the provider
deleted text begin
, and
deleted text end
new text begin
.
new text end
If by 60 days after the required submission date a provider has not

provided the required data, the commissioner
deleted text begin
shall
deleted text end

new text begin
must
new text end
provide a second notice. The

commissioner
deleted text begin
shall
deleted text end
new text begin
must
new text end
temporarily suspend payments to
deleted text begin
the
deleted text end
new text begin
a
new text end
provider if
new text begin
the commissioner

has not received the required
new text end
cost data
deleted text begin
is not received
deleted text end
90 days after the required submission

date
new text begin
or 90 days after the Department of Human Services requests updated data
new text end
.
new text begin
The

commissioner must make
new text end
withheld payments
deleted text begin
must be made once data is received
deleted text end
new text begin
when the

required cost data is received and reviewed for compliance
new text end
by the commissioner.

(c) The commissioner shall coordinate the cost reporting activities required under this

section with the cost reporting activities directed under section
256B.4914, subdivision 10a
.

(d) The commissioner shall analyze cost documentation in paragraph (a) and, in

consultation with stakeholders, may submit recommendations on rate methodologies in this

chapter, including ways to monitor and enforce the spending requirements directed in section
deleted text begin

256S.2101, subdivision 3
,
deleted text end
new text begin
256S.211, subdivision 4,
new text end
through the reports directed by

subdivision 2.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective January 1, 2027.

new text end

Sec. 20.

Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision

to read:

new text begin

Subd. 1a.

new text end

new text begin

Adult protective services.

new text end

new text begin

Adult protective services must receive referrals

from the common entry point and carry out lead investigative agency duties to investigate

for a determination of responsibility for maltreatment. When the county social services

agency is the lead investigative agency, or when the Department of Human Services or

Department of Health in the role of the lead investigative agency request adult protective

services, adult protective services must conduct assessments, develop services plans, and

implement interventions to safeguard adults who are vulnerable and suspected of experiencing

maltreatment. Adult protective services must conclude services following final determination

of maltreatment and the adult is assessed as safe. The Department of Human Services is the

state agency responsible for supervision of adult protective services administered by county

social services agencies.

new text end

Sec. 21.

Minnesota Statutes 2024, section 626.557, subdivision 9, is amended to read:

Subd. 9.

Common entry point designation.

(a) The commissioner of human services

shall establish a common entry point. The common entry point is the unit responsible for

receiving the report of suspected maltreatment under this section.

(b) The common entry point must be available 24 hours per day to
deleted text begin
take calls
deleted text end

new text begin
accept

reports
new text end
from reporters of suspected maltreatment
new text begin
and make required referrals for suspected

maltreatment of a vulnerable adult
new text end
. The common entry point shall use a standard intake

form that includes:

(1) the time and date of the report;

(2) the name, relationship, and identifying and contact information for the person believed

to be a vulnerable adult and the individual or facility alleged responsible for maltreatment;

(3) the name, relationship, and contact information for the:

(i) reporter;

(ii) initial reporter, witnesses, and persons who may have knowledge about the

maltreatment; and

(iii) legal surrogate and persons who may provide support to the vulnerable adult;

(4) the basis of vulnerability for the vulnerable adult;

(5) the time, date, and location of the incident;

(6) the immediate safety risk to the vulnerable adult;

(7) a description of the suspected maltreatment;

(8) the impact of the suspected maltreatment on the vulnerable adult;

(9) whether a facility was involved and, if so, which agency licenses the facility;

(10) the actions taken to protect the vulnerable adult;

(11) the required notifications and referrals made by the common entry point; and

(12) whether the reporter wishes to receive notification of the disposition.

(c) The common entry point is not required to complete each item on the form prior to

dispatching the report to the appropriate lead investigative agency.

(d) The common entry point shall immediately report to a law enforcement agency any

incident in which there is reason to believe a crime has been committed.

(e) If a report is initially made to a law enforcement agency or a lead investigative agency,

those agencies shall take the report on the appropriate common entry point intake forms

and immediately forward a copy to the common entry point.

(f) The common entry point staff must receive training on how to screen and dispatch

reports efficiently and in accordance with this section.

(g) The commissioner of human services shall maintain a centralized database for the

collection of common entry point data, lead investigative agency data including maltreatment

report disposition, and appeals data. The common entry point shall have access to the

centralized database and must log the reports into the database.

(h) When appropriate, the common entry point staff must refer calls that do not allege

the abuse, neglect, or exploitation of a vulnerable adult to other organizations that might

resolve the reporter's concerns.

(i) A common entry point must be operated in a manner that enables the commissioner

of human services to:

(1) track critical steps in the reporting, evaluation, referral, response, disposition, and

investigative process to ensure compliance with all requirements for all reports;

(2) maintain data to facilitate the production of aggregate statistical reports for monitoring

patterns of abuse, neglect, or exploitation;

(3) serve as a resource for the evaluation, management, and planning of preventative

and remedial services for vulnerable adults who have been subject to abuse, neglect, or

exploitation;

(4) set standards, priorities, and policies to maximize the efficiency and effectiveness

of the common entry point; and

(5) track and manage consumer complaints related to the common entry point.

(j) The commissioners of human services and health shall collaborate on the creation of

a system for referring reports to the lead investigative agencies. This system shall enable

the commissioner of human services to track critical steps in the reporting, evaluation,

referral, response, disposition, investigation, notification, determination, and appeal processes.

Sec. 22.

Minnesota Statutes 2024, section 626.557, subdivision 9a, is amended to read:

Subd. 9a.

Evaluation and referral of reports made to common entry point.

(a) The

common entry point must screen the reports of alleged or suspected maltreatment for

immediate risk and make all necessary referrals
deleted text begin
as follows
deleted text end
new text begin
using the referral guidelines

established by the commissioner and the following
new text end
:

(1) if the common entry point determines that there is an immediate need for emergency

adult protective services, the common entry point agency shall immediately notify the

appropriate county agency;

(2) if the report contains suspected criminal activity against a vulnerable adult, the

common entry point shall immediately notify the appropriate law enforcement agency;

(3) the common entry point shall refer all reports of alleged or suspected maltreatment

to the appropriate lead investigative agency as soon as possible, but in any event no longer

than two working days;

(4) if the report contains information about a suspicious death, the common entry point

shall immediately notify the appropriate law enforcement agencies, the local medical

examiner, and the ombudsman for mental health and developmental disabilities established

under section
245.92
. Law enforcement agencies shall coordinate with the local medical

examiner and the ombudsman as provided by law; and

(5) for reports involving multiple locations or changing circumstances, the common

entry point shall determine the county agency responsible for emergency adult protective

services and the county responsible as the lead investigative agency
deleted text begin
, using referral guidelines

established by the commissioner
deleted text end
.

(b) If the lead investigative agency receiving a report believes the report was referred

by the common entry point in error, the lead investigative agency shall immediately notify

the common entry point of the error, including the basis for the lead investigative agency's

belief that the referral was made in error. The common entry point shall review the

information submitted by the lead investigative agency and immediately refer the report to

the appropriate lead investigative agency
new text begin
using the referral guidelines established by the

commissioner
new text end
.

Sec. 23.

Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision

to read:

new text begin

Subd. 11b.

new text end

new text begin

County social services agency; responsibilities.

new text end

new text begin

The county social services

agency is responsible for supervision of:

new text end

new text begin

(1) intake decisions for initial disposition of the report;

new text end

new text begin

(2) agency prioritization used to screen out an adult meeting eligibility for adult protective

services as vulnerable and maltreated;

new text end

new text begin

(3) safety, assessment, and services plans;

new text end

new text begin

(4) protective service interventions;

new text end

new text begin

(5) use of guardianship and other involuntary interventions;

new text end

new text begin

(6) final determination for maltreatment; and

new text end

new text begin

(7) case closure decisions.

new text end

Sec. 24.

Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision

to read:

new text begin

Subd. 11c.

new text end

new text begin

County social services agency; referrals.

new text end

new text begin

(a) When the common entry point

refers a report to the county social services agency as the lead investigative agency or makes

a referral to the county social services agency for emergency adult protective services, or

when another lead investigative agency requests adult protective services from the county

social services agency for an adult referred to that lead investigative agency by the common

entry point, the county social services agency must use the data report system and

standardized decision and assessment tools provided by the commissioner of human services.

The information entered by the county social services agency into the data system and

standardized tools must be accessible to the Department of Human Services for the

department to meet federal requirements, evaluate consistent application of policy, review

quality of services and outcomes for adults, and meet requirements for background studies

and disqualification of individuals determined responsible for vulnerable adult maltreatment

under chapter 245C.

new text end

new text begin

(b) The county social services agency must screen the report using the standardized tools

provided by the commissioner to determine:

new text end

new text begin

(1) whether the referred adult meets adult protective services eligibility as potentially

vulnerable and maltreated under this section; and

new text end

new text begin

(2) the response time required to initiate adult protective services.

new text end

new text begin

(c) For reports referred by the common entry point for emergency adult protective

services, the county social services agency must immediately screen the report to determine

whether the adult should be accepted for emergency adult protective services. If the adult

is accepted for emergency adult protective services, the county social services agency must

immediately offer protective services to prevent further maltreatment and safeguard the

welfare of the vulnerable adult. Assessment of adults accepted by the county social services

agency for emergency protective services must be conducted in person by the agency or a

designee within 24 hours of the agency receiving the referral. When sexual or physical

abuse is suspected, the county social services agency must immediately arrange for and

make available to the vulnerable adult appropriate medical examination and services.

new text end

new text begin

(d) For reports referred by the common entry point to the county as lead investigative

agency, the county social services agency must screen the report and make an initial

determination within seven calendar days following receipt of the report from the common

entry point on whether the adult should be accepted for adult protective services.

new text end

new text begin

(e) For referrals made for adult protective services by the Department of Human Services

or the Department of Health in the applicable department's role as the lead investigative

agency responsible for reports made under this section, the county social services agency

must screen the report and determine within seven calendar days following receipt of referral

whether the adult should be accepted for adult protective services.

new text end

new text begin

(f) If an adult meets eligibility requirements but is not accepted for adult protective

services based on local agency prioritization, the agency must document the reason for the

screening decision in the standardized tool provided by the commissioner.

new text end

Sec. 25.

Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision

to read:

new text begin

Subd. 11d.

new text end

new text begin

County social services agency; assessments.

new text end

new text begin

(a) For adults accepted into

adult protective services, the county social services agency must decide, prior to initiation

of assessment activities, if the agency must also conduct an investigation for final disposition

for responsibility of maltreatment in addition to the assessment for adult protective services.

new text end

new text begin

(b) The county social services agency must conduct assessments concurrently with

investigations when: (1) the county is both the lead investigative agency and responsible

for making a final determination of responsibility for maltreatment; or (2) another lead

investigative agency responsible for the final determination of maltreatment requests

assistance from the county social services agency.

new text end

new text begin

(c) The county social services agency must conduct an in-person assessment to initiate

adult protective services:

new text end

new text begin

(1) within 24 hours of accepting a referral for emergency protective services;

new text end

new text begin

(2) within 24 hours of making an initial disposition that the adult is in immediate need

of protection, unless an in-person response would endanger the safety of the adult; or

new text end

new text begin

(3) within 72 hours but in no instance later than seven calendar days from the first

business day after receiving the report for adults accepted for adult protective services.

new text end

new text begin

(d) The county social services agency must use the standardized decision, assessment,

and service planning tools provided by the commissioner with all vulnerable adults accepted

for adult protective services. The county social services agency must involve the vulnerable

adult in the assessment and service plan. The county social services agency must document

and update assessment and service plans consistent with significant changes in the vulnerable

adult's health and safety.

new text end

new text begin

(e) The county social services agency must notify the vulnerable adult and, if applicable,

the guardian or health care agent of the vulnerable adult of the results of the assessment and

service plan, including but not limited to recommendations for protective services intervention

to stop or prevent maltreatment and to protect the vulnerable adult's health, safety, and

comfort. When necessary to prevent further maltreatment or safeguard the vulnerable adult,

the county social services agency may share the results of the assessment with the vulnerable

adult's primary supports.

new text end

Sec. 26.

Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision

to read:

new text begin

Subd. 11e.

new text end

new text begin

County social services agency; investigations.

new text end

new text begin

(a) The county social services

agency must investigate for a final disposition of responsibility for maltreatment for an

allegation of:

new text end

new text begin

(1) abuse;

new text end

new text begin

(2) financial abuse by a fiduciary;

new text end

new text begin

(3) financial exploitation involving a nonfiduciary that may be criminal or that involved

force, coercion, harassment, deception, fraud, undue influence, or a scam;

new text end

new text begin

(4) financial exploitation that involved another type of maltreatment;

new text end

new text begin

(5) caregiver neglect by a paid caregiver or personal care assistance provider under

chapter 256B;

new text end

new text begin

(6) caregiver neglect by an unpaid caregiver that resulted in intentional harm to the

vulnerable adult or involved another type of maltreatment; and

new text end

new text begin

(7) a situation for which the county social services agency finds that a determination of

responsibility of maltreatment may safeguard a vulnerable adult or prevent further

maltreatment.

new text end

new text begin

(b) The county social services agency must conduct an investigation for final disposition

of responsibility for maltreatment if the agency receives information during an assessment

that indicates the presence of any scenario listed in paragraph (a) or subdivision 11f.

new text end

Sec. 27.

Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision

to read:

new text begin

Subd. 11f.

new text end

new text begin

County social services agency; self-neglect.

new text end

new text begin

(a) The county social services

agency may determine that an allegation that does not result in a determination of

responsibility for maltreatment is:

new text end

new text begin

(1) self-neglect;

new text end

new text begin

(2) neglect by an unpaid caregiver that did not result in intentional harm to the vulnerable

adult and did not involve another type of alleged maltreatment; or

new text end

new text begin

(3) financial exploitation by a nonfiduciary that is consistent with the choice of the adult

and not criminal or involving force, coercion, harassment, deception, fraud, undue influence,

a scam, or another type of alleged maltreatment.

new text end

new text begin

(b) An allegation of self-neglect is a substantiated determination if the county social

services agency determines that adult protective services are needed.

new text end

Sec. 28.

Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision

to read:

new text begin

Subd. 11g.

new text end

new text begin

County social services agency; initial contact.

new text end

new text begin

(a) At the initial contact

with the vulnerable adult accepted by the county social services agency, the agency must

provide the vulnerable adult with information about the process for adult protective services

and the vulnerable adult's rights as an adult protective client.

new text end

new text begin

(b) At initial contact, the county social services agency must inform the individual or

entity alleged responsible for maltreatment of the allegation in a manner consistent with

requirements under this section to protect the identity of the reporter. The interview with

the individual or entity alleged responsible for maltreatment may be postponed at the request

of a law enforcement agency or if the interview may endanger the safety of the vulnerable

adult.

new text end

Sec. 29.

Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision

to read:

new text begin

Subd. 11h.

new text end

new text begin

County social services agency; agency authority.

new text end

new text begin

(a) A county social

services agency may enter all facilities and business premises of a licensed provider to

inspect and copy records as part of an adult protective services assessment or investigation.

The licensed provider must provide the county social services agency access to not public

data as defined in section 13.02, subdivision 8a, and medical records under sections 144.291

to 144.298 that are maintained at the facilities and business premises to the extent that the

data and records are necessary to conduct the agency's investigation. The licensed provider

must provide the county social services agency access to all available sources of information

at the facilities and business premises, not only written records.

new text end

new text begin

(b) When necessary in order to protect a vulnerable adult from serious harm from

maltreatment, the county social services agency may seek any of the following protective

services interventions:

new text end

new text begin

(1) emergency protective services;

new text end

new text begin

(2) participation of law enforcement or emergency medical services;

new text end

new text begin

(3) authority from a court to remove an adult from the situation in which maltreatment

occurred;

new text end

new text begin

(4) a restraining order or court order for removal of the perpetrator from the residence

of the vulnerable adult pursuant to section 518.01;

new text end

new text begin

(5) a referral for a financial transaction hold under chapter 45A or a protective

arrangement under this chapter or chapter 524;

new text end

new text begin

(6) a referral for a representative payee;

new text end

new text begin

(7) a referral to the prosecuting attorney for possible criminal prosecution of the

perpetrator under chapter 609;

new text end

new text begin

(8) the appointment or replacement of a guardian or conservator pursuant to sections

524.5-101 to 524.5-502, or guardianship or conservatorship pursuant to chapter 252A when

maltreatment has been substantiated and when less restrictive interventions are not sufficient

to stop or reduce the risk of serious harm from maltreatment; and

new text end

new text begin

(9) other interventions recommended by a multidisciplinary team under this section.

new text end

new text begin

(c) The county social services agency may seek the protective services interventions

under paragraph (b) regardless of the vulnerable adult's voluntary or involuntary participation.

new text end

new text begin

(d) The county social services agency may offer voluntary service interventions to

support the vulnerable adult or primary supports to stop, reduce the risk for, or prevent

subsequent maltreatment.

new text end

Sec. 30.

Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision

to read:

new text begin

Subd. 11i.

new text end

new text begin

County social services agency; legal intervention.

new text end

new text begin

(a) In proceedings under

sections 524.5-101 to 524.5-502, if a suitable relative or other person is not available to

petition for guardianship or conservatorship, a county employee must present the petition

with representation by the county attorney. The county must contract with or arrange for a

suitable person or organization to provide ongoing guardianship services. If the county

presents evidence to the court exercising probate jurisdiction that the county has made

diligent effort and no other suitable person can be found, a county employee may serve as

guardian or conservator.

new text end

new text begin

(b) The county must not retaliate against the employee for any action taken on behalf

of the person subject to guardianship or conservatorship, even if the action is adverse to the

county's interests. Any person retaliated against in violation of this subdivision shall have

a cause of action against the county and is entitled to reasonable attorney fees and costs of

the action if the action is upheld by the court.

new text end

new text begin

(c) The expenses of a legal intervention must be paid by the county in the case of indigent

persons under section 524.5-502 and chapter 563.

new text end

Sec. 31.

Minnesota Statutes 2024, section 626.557, is amended by adding a subdivision

to read:

new text begin

Subd. 11j.

new text end

new text begin

County social services agency; conflict of interest.

new text end

new text begin

(a) A county that

identifies a potential conflict of interest under paragraph (c) related to an investigation,

assessment, or protective services intervention must coordinate with another county social

services agency to delegate the initial county's authority as the lead investigative agency to

remediate the potential conflict. County social services agencies must cooperate and accept

jurisdiction when an initial county social services agency identifies a potential conflict of

interest and requests the other county's assistance.

new text end

new text begin

(b) The initial county must notify the commissioner of human services when no other

county is available to accept delegation of adult protective services duties. If the

commissioner is notified that no other county is available, the commissioner may use the

authority under subdivision 9a to determine the county social services agency responsible

as lead investigative agency and for adult protective services.

new text end

new text begin

(c) A county social services agency employee or designee must not have:

new text end

new text begin

(1) a personal or family relationship with a party in the investigation or assessment;

new text end

new text begin

(2) a dual relationship, as defined in Code of Federal Regulations, title 45, section

1324.401, with the vulnerable adult;

new text end

new text begin

(3) a personal financial interest or financial relationship with a provider receiving referrals

from the employee; or

new text end

new text begin

(4) any other appearance of conflict of interest as determined by the county social services

agency.

new text end

Sec. 32.

Minnesota Statutes 2024, section 626.557, subdivision 12b, is amended to read:

Subd. 12b.

Data management.

(a) In performing any of the duties of this section as a

lead investigative agency, the county social
deleted text begin
service
deleted text end
new text begin
services
new text end
agency shall maintain appropriate

records. Data collected by the county social
deleted text begin
service
deleted text end
new text begin
services
new text end
agency under this section while

providing adult protective services are welfare data under section
13.46
. Investigative data

collected under this section are confidential data on individuals or protected nonpublic data

as defined under section
13.02
. Notwithstanding section
13.46, subdivision 1
, paragraph

(a), data under this paragraph that are inactive investigative data on an individual who is a

vendor of services are private data on individuals, as defined in section
13.02
. The identity

of the reporter may only be disclosed as provided in paragraph (c).

Data maintained by the common entry point are confidential data on individuals or

protected nonpublic data as defined in section
13.02
. Notwithstanding section
138.163
, the

common entry point shall maintain data for three calendar years after date of receipt and

then destroy the data unless otherwise directed by federal requirements.

(b) The commissioners of health and human services shall prepare an investigation

memorandum for each report alleging maltreatment investigated under this section. County

social
deleted text begin
service
deleted text end
new text begin
services
new text end
agencies must maintain private data on individuals but are not required

to prepare an investigation memorandum. During an investigation by the commissioner of

health or the commissioner of human services, data collected under this section are

confidential data on individuals or protected nonpublic data as defined in section
13.02
.

Upon completion of the investigation, the data are classified as provided in clauses (1) to

(3) and paragraph (c).

(1) The investigation memorandum must contain the following data, which are public:

(i) the name of the facility investigated;

(ii) a statement of the nature of the alleged maltreatment;

(iii) pertinent information obtained from medical or other records reviewed;

(iv) the identity of the investigator;

(v) a summary of the investigation's findings;

(vi) statement of whether the report was found to be substantiated, inconclusive, false,

or that no determination will be made;

(vii) a statement of any action taken by the facility;

(viii) a statement of any action taken by the lead investigative agency; and

(ix) when a lead investigative agency's determination has substantiated maltreatment, a

statement of whether an individual, individuals, or a facility were responsible for the

substantiated maltreatment, if known.

The investigation memorandum must be written in a manner which protects the identity

of the reporter and of the vulnerable adult and may not contain the names or, to the extent

possible, data on individuals or private data listed in clause (2).

(2) Data on individuals collected and maintained in the investigation memorandum are

private data, including:

(i) the name of the vulnerable adult;

(ii) the identity of the individual alleged to be the perpetrator;

(iii) the identity of the individual substantiated as the perpetrator; and

(iv) the identity of all individuals interviewed as part of the investigation.

(3) Other data on individuals maintained as part of an investigation under this section

are private data on individuals upon completion of the investigation.

(c) The name of the reporter must be confidential. The subject of the report may compel

disclosure of the name of the reporter only with the consent of the reporter or upon a written

finding by a court that the report was false and there is evidence that the report was made

in bad faith. This subdivision does not alter disclosure responsibilities or obligations under

the Rules of Criminal Procedure, except that where the identity of the reporter is relevant

to a criminal prosecution, the district court shall do an in-camera review prior to determining

whether to order disclosure of the identity of the reporter.

(d) Notwithstanding section
138.163
, data maintained under this section by the

commissioners of health and human services
new text begin
and county adult protective services
new text end
must be

maintained under the following schedule and then destroyed unless otherwise directed by

federal requirements:

(1) data from reports determined to be false, maintained for three years after the finding

was made
new text begin
for reports under the jurisdiction of the Department of Human Services or the

Department of Health and five years after the finding was made for reports under the

jurisdiction of county adult protective services
new text end
;

(2) data from reports determined to be inconclusive, maintained for four years after the

finding was made
new text begin
for reports under the jurisdiction of the Department of Human Services

or the Department of Health and five years after the finding was made for reports under the

jurisdiction of county adult protective services
new text end
;

(3) data from reports determined to be substantiated, maintained for seven years after

the finding was made; and

(4) data from reports which were not investigated by a lead investigative agency and for

which there is no final disposition, maintained for three years from the date of the report
new text begin

for reports under the jurisdiction of the Department of Human Services or the Department

of Health and five years from the date of the report for reports under the jurisdiction of

county adult protective services
new text end
.

(e) The commissioners of health and human services shall annually publish on their

websites the number and type of reports of alleged maltreatment involving licensed facilities

reported under this section, the number of those requiring investigation under this section,

and the resolution of those investigations.

deleted text begin

(f) Each lead investigative agency must have a record retention policy.

deleted text end

deleted text begin

(g)
deleted text end
new text begin
(f)
new text end
Lead investigative agencies, county agencies responsible for adult protective

services, prosecuting authorities, and law enforcement agencies may exchange not public

data, as defined in section
13.02
, with a tribal agency, facility, service provider, vulnerable

adult, primary support person for a vulnerable adult,
new text begin
emergency management service,

financial institution, medical examiner,
new text end
state licensing board, federal or state agency, the

ombudsman for long-term care, or the ombudsman for mental health and developmental

disabilities, if the agency or authority providing the data determines that the data are pertinent

and necessary to prevent further maltreatment of a vulnerable adult, to safeguard a vulnerable

adult, or for an investigation under this section. Data collected under this section must be

made available to prosecuting authorities and law enforcement officials, local county

agencies,
new text begin
the commissioner of human services as the state Medicaid agency,
new text end
and licensing

agencies investigating the alleged maltreatment under this section. The lead investigative

agency shall exchange not public data with the vulnerable adult maltreatment review panel

established in section
256.021
if the data are pertinent and necessary for a review requested

under that section. Notwithstanding section
138.17
, upon completion of the review, not

public data received by the review panel must be destroyed.

deleted text begin

(h)
deleted text end
new text begin
(g)
new text end
Each lead investigative agency shall keep records of the length of time it takes

to complete its investigations.

deleted text begin

(i)
deleted text end
new text begin
(h)
new text end
A lead investigative agency may notify other affected parties and their authorized

representative if the lead investigative agency has reason to believe maltreatment has occurred

and determines the information will safeguard the well-being of the affected parties or dispel

widespread rumor or unrest in the affected facility.

deleted text begin

(j)
deleted text end
new text begin
(i)
new text end
Under any notification provision of this section, where federal law specifically

prohibits the disclosure of patient identifying information, a lead investigative agency may

not provide any notice unless the vulnerable adult has consented to disclosure in a manner

which conforms to federal requirements.

new text begin

(j) When a county agency acting as the lead investigative agency is aware the person

determined responsible for maltreatment is a guardian or conservator appointed under

chapter 524, the county agency must share the final determination with the Minnesota

Judicial Branch within 14 calendar days of the determination.

new text end

Sec. 33.

Minnesota Statutes 2024, section 626.5572, subdivision 2, is amended to read:

Subd. 2.

Abuse.

"Abuse" means:

(a) An act against a vulnerable adult that constitutes a violation of, an attempt to violate,

or aiding and abetting a violation of:

(1) assault in the first through fifth degrees as defined in sections
609.221
to
609.224
;

(2) the use of drugs to injure or facilitate crime as defined in section
609.235
;

(3) the solicitation, inducement, and promotion of prostitution as defined in section

609.322
; and

(4) criminal sexual conduct in the first through fifth degrees as defined in sections

609.342
to
609.3451
.

A violation includes any action that meets the elements of the crime, regardless of

whether there is a criminal proceeding or conviction.

(b) Conduct which is not an accident or therapeutic conduct as defined in this section,

which produces or could reasonably be expected to produce physical pain or injury or

emotional distress including, but not limited to, the following:

(1) hitting, slapping, kicking, pinching, biting, or corporal punishment of a vulnerable

adult;

(2) use of repeated or malicious oral, written, or gestured language toward a vulnerable

adult or the treatment of a vulnerable adult which would be considered by a reasonable

person to be disparaging, derogatory, humiliating, harassing, or threatening; or

(3) use of any aversive or deprivation procedure, unreasonable confinement, or

involuntary seclusion, including the forced separation of the vulnerable adult from other

persons against the will of the vulnerable adult or the legal representative of the vulnerable

adult unless authorized under applicable licensing requirements or Minnesota Rules, chapter

9544.

new text begin

(c) Any contact with the vulnerable adult that is not therapeutic conduct and a reasonable

person would consider a sexual act or any nonconsensual sexual interaction with the

vulnerable adult, including but not limited to:

new text end

new text begin

(1) making, viewing, or sharing sexual images or videos with or of the vulnerable adult;

and

new text end

new text begin

(2) using oral, written, gestured, or electronic communication that is sexually harassing,

including but not limited to unwelcome sexual advances or requests for sexual favors.

new text end

deleted text begin

(c)
deleted text end
new text begin
(d)
new text end
Any sexual contact or penetration as defined in section
609.341
, between a facility

staff person or a person providing services in the facility and a resident, patient, or client

of that facility.

deleted text begin

(d)
deleted text end
new text begin
(e)
new text end
The act of forcing, compelling, coercing, or enticing a vulnerable adult against

the vulnerable adult's will to perform services for the advantage of another.

deleted text begin

(e)
deleted text end
new text begin
(f)
new text end
For purposes of this section, a vulnerable adult is not abused for the sole reason

that the vulnerable adult or a person with authority to make health care decisions for the

vulnerable adult under sections
144.651
,
144A.44
, chapter 145B, 145C or 252A, or section

253B.03
or 524.5-313, refuses consent or withdraws consent, consistent with that authority

and within the boundary of reasonable medical practice, to any therapeutic conduct, including

any care, service, or procedure to diagnose, maintain, or treat the physical or mental condition

of the vulnerable adult or, where permitted under law, to provide nutrition and hydration

parenterally or through intubation. This paragraph does not enlarge or diminish rights

otherwise held under law by:

(1) a vulnerable adult or a person acting on behalf of a vulnerable adult, including an

involved family member, to consent to or refuse consent for therapeutic conduct; or

(2) a caregiver to offer or provide or refuse to offer or provide therapeutic conduct.

deleted text begin

(f)
deleted text end
new text begin
(g)
new text end
For purposes of this section, a vulnerable adult is not abused for the sole reason

that the vulnerable adult, a person with authority to make health care decisions for the

vulnerable adult, or a caregiver in good faith selects and depends upon spiritual means or

prayer for treatment or care of disease or remedial care of the vulnerable adult in lieu of

medical care, provided that this is consistent with the prior practice or belief of the vulnerable

adult or with the expressed intentions of the vulnerable adult.

deleted text begin

(g)
deleted text end
new text begin
(h)
new text end
For purposes of this section, a vulnerable adult is not abused for the sole reason

that the vulnerable adult, who is not impaired in judgment or capacity by mental or emotional

dysfunction or undue influence, engages in consensual sexual contact with:

(1) a person, including a facility staff person, when a consensual sexual personal

relationship existed prior to the caregiving relationship; or

(2) a personal care attendant, regardless of whether the consensual sexual personal

relationship existed prior to the caregiving relationship.

Sec. 34.

Minnesota Statutes 2024, section 626.5572, is amended by adding a subdivision

to read:

new text begin

Subd. 3a.

new text end

new text begin

Adult protective services.

new text end

new text begin

"Adult protective services" means an adult

protection program administered by a county social services agency under the authority of

the agency's governing body or delegated to a Tribal government by the commissioner of

human services to support adults referred for maltreatment to live safely and with dignity.

new text end

Sec. 35.

Minnesota Statutes 2024, section 626.5572, is amended by adding a subdivision

to read:

new text begin

Subd. 3b.

new text end

new text begin

Assessment.

new text end

new text begin

"Assessment" means a structured process conducted by a county

social services agency to review the safety, strengths, and needs of an adult referred as

vulnerable and maltreated and accepted by the agency for adult protective services and to

develop a service plan to stop, prevent, and reduce risk of maltreatment for the adult using

standardized tools provided by the Department of Human Services.

new text end

Sec. 36.

Minnesota Statutes 2024, section 626.5572, subdivision 9, is amended to read:

Subd. 9.

Financial exploitation.

"Financial exploitation" means:

(a) In breach of a fiduciary obligation recognized elsewhere in law, including pertinent

regulations, contractual obligations, documented consent by a competent person, or the

obligations of a responsible party under section
144.6501
, a person:

(1) engages in unauthorized expenditure of funds entrusted to the actor by the vulnerable

adult which results or is likely to result in detriment to the vulnerable adult; or

(2) fails to use the financial resources of the vulnerable adult to provide food, clothing,

shelter, health care, therapeutic conduct or supervision for the vulnerable adult, and the

failure results or is likely to result in detriment to the vulnerable adult.

(b) In the absence of legal authority a person:

(1) willfully uses, withholds, or disposes of funds or property of a vulnerable adult;

(2) obtains for the actor or another the performance of services by
deleted text begin
a third person
deleted text end
new text begin
the

vulnerable adult
new text end
for the wrongful profit or advantage of the actor or another to the detriment

of the vulnerable adult;

(3) acquires possession or control of, or an interest in, funds or property of a vulnerable

adult through the use of undue influence, harassment, duress, deception, or fraud; or

(4) forces, compels, coerces, or entices a vulnerable adult against the vulnerable adult's

will to perform services for the profit or advantage of another.

(c) Nothing in this definition requires a facility or caregiver to provide financial

management or supervise financial management for a vulnerable adult except as otherwise

required by law.

Sec. 37.

Minnesota Statutes 2024, section 626.5572, is amended by adding a subdivision

to read:

new text begin

Subd. 12a.

new text end

new text begin

Investigation.

new text end

new text begin

"Investigation" means activities for fact gathering conducted

by the lead investigative agency to make a final determination of maltreatment.

new text end

Sec. 38.

Minnesota Statutes 2025 Supplement, section 626.5572, subdivision 13, is amended

to read:

Subd. 13.

Lead investigative agency.

"Lead investigative agency" is the primary

administrative agency responsible for investigating reports made under section
626.557
.

(a) The Department of Health is the lead investigative agency for facilities or services

licensed or required to be licensed as hospitals, home care providers, nursing homes, boarding

care homes, hospice providers, residential facilities that are also federally certified as

intermediate care facilities that serve people with developmental disabilities, or any other

facility or service not listed in this subdivision that is licensed or required to be licensed by

the Department of Health for the care of vulnerable adults. "Home care provider" has the

meaning provided in section
144A.43, subdivision 4
, and applies when care or services are

delivered in the vulnerable adult's home.

(b) The Department of Human Services is the lead investigative agency for facilities or

services licensed or required to be licensed as adult day care, adult foster care, community

residential settings, programs for people with disabilities, EIDBI agencies, family adult day

services, mental health programs, mental health clinics, substance use disorder programs,

the Minnesota Sex Offender Program, or any other facility or service not listed in this

subdivision that is licensed or required to be licensed by the Department of Human Services.

The Department of Human Services is also the lead investigative agency for unlicensed

EIDBI agencies under section
256B.0949
.

(c) The county social
deleted text begin
service
deleted text end
new text begin
services
new text end
agency
new text begin
adult protective services
new text end
or
deleted text begin
its
deleted text end
new text begin
the agency's
new text end

designee
new text begin
or a federally recognized Indian Tribe that entered into a contractual agreement

with the commissioner of human services to operate adult protective services
new text end
is the lead

investigative agency for all other reports, including but not limited to reports involving

vulnerable adults receiving services from a personal care provider organization under section

256B.0659
new text begin
or 256B.85
new text end
.

Sec. 39.

Minnesota Statutes 2024, section 626.5572, subdivision 17, is amended to read:

Subd. 17.

Neglect.

(a) "Neglect" means neglect by a caregiver or self-neglect.

(b) "Caregiver neglect" means the failure or omission by a caregiver to supply a

vulnerable adult with care or services, including but not limited to, food, clothing, shelter,

health care, or supervision which is:

(1) reasonable and necessary to obtain or maintain the vulnerable adult's physical or

mental health or safety, considering the physical and mental capacity or dysfunction of the

vulnerable adult; and

(2) which is not the result of an accident or therapeutic conduct.

(c) "Self-neglect" means neglect by a vulnerable adult of the vulnerable adult's own

food, clothing, shelter, health care,
new text begin
financial management,
new text end
or other services that are not the

responsibility of a caregiver which a reasonable person would deem essential to obtain or

maintain the vulnerable adult's health, safety, or comfort.

(d) For purposes of this section, a vulnerable adult is not neglected for the sole reason

that:

(1) the vulnerable adult or a person with authority to make health care decisions for the

vulnerable adult under sections
144.651
,
144A.44
, chapter 145B, 145C, or 252A, or sections

253B.03
or
524.5-101
to
524.5-502
, refuses consent or withdraws consent, consistent with

that authority and within the boundary of reasonable medical practice, to any therapeutic

conduct, including any care, service, or procedure to diagnose, maintain, or treat the physical

or mental condition of the vulnerable adult, or, where permitted under law, to provide

nutrition and hydration parenterally or through intubation; this paragraph does not enlarge

or diminish rights otherwise held under law by:

(i) a vulnerable adult or a person acting on behalf of a vulnerable adult, including an

involved family member, to consent to or refuse consent for therapeutic conduct; or

(ii) a caregiver to offer or provide or refuse to offer or provide therapeutic conduct;
deleted text begin
or
deleted text end

(2) the vulnerable adult, a person with authority to make health care decisions for the

vulnerable adult, or a caregiver in good faith selects and depends upon spiritual means or

prayer for treatment or care of disease or remedial care of the vulnerable adult in lieu of

medical care, provided that this is consistent with the prior practice or belief of the vulnerable

adult or with the expressed intentions of the vulnerable adult;

(3) the vulnerable adult, who is not impaired in judgment or capacity by mental or

emotional dysfunction or undue influence, engages in consensual sexual contact with:

(i) a person including a facility staff person when a consensual sexual personal

relationship existed prior to the caregiving relationship; or

(ii) a personal care attendant, regardless of whether the consensual sexual personal

relationship existed prior to the caregiving relationship;
deleted text begin
or
deleted text end

(4) an individual makes an error in the provision of therapeutic conduct to a vulnerable

adult which does not result in injury or harm which reasonably requires medical or mental

health care; or

(5) an individual makes an error in the provision of therapeutic conduct to a vulnerable

adult that results in injury or harm, which reasonably requires the care of a physician, and:

(i) the necessary care is provided in a timely fashion as dictated by the condition of the

vulnerable adult;

(ii) if after receiving care, the health status of the vulnerable adult can be reasonably

expected, as determined by the attending physician, to be restored to the vulnerable adult's

preexisting condition;

(iii) the error is not part of a pattern of errors by the individual;

(iv) if in a facility, the error is immediately reported as required under section
626.557
,

and recorded internally in the facility;

(v) if in a facility, the facility identifies and takes corrective action and implements

measures designed to reduce the risk of further occurrence of this error and similar errors;

and

(vi) if in a facility, the actions required under items (iv) and (v) are sufficiently

documented for review and evaluation by the facility and any applicable licensing,

certification, and ombudsman agency.

(e) Nothing in this definition requires a caregiver, if regulated, to provide services in

excess of those required by the caregiver's license, certification, registration, or other

regulation.

(f) If the findings of an investigation by a lead investigative agency result in a

determination of substantiated maltreatment for the sole reason that the actions required of

a facility under paragraph (d), clause (5), item (iv), (v), or (vi), were not taken, then the

facility is subject to a correction order. An individual will not be found to have neglected

or maltreated the vulnerable adult based solely on the facility's not having taken the actions

required under paragraph (d), clause (5), item (iv), (v), or (vi). This must not alter the lead

investigative agency's determination of mitigating factors under section
626.557, subdivision

9c
, paragraph (f).

Sec. 40.
new text begin
REPEALER.
new text end

new text begin

Minnesota Statutes 2024, sections 256B.5012, subdivisions 4, 5, 6, 7, 8, 9, 10, 11, 12,

14, 15, and 16; and 626.557, subdivision 10,

new text end

new text begin

are repealed.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

ARTICLE 2

BEHAVIORAL HEALTH

Section 1.

Minnesota Statutes 2025 Supplement, section 245.469, subdivision 1, is amended

to read:

Subdivision 1.

Availability of emergency services.

(a) County boards must provide or

contract for enough emergency services within the county to meet the needs of adults,

children, and families in the county who are experiencing an emotional crisis or mental

illness. Clients must not be charged for services provided. Emergency service providers

must
new text begin
not delay or deny the timely provision of emergency services to a client due to payor

source for services and must
new text end
meet the qualifications under section
256B.0624, subdivision

4
. Emergency services must include assessment, crisis intervention, and appropriate case

disposition. Emergency services must:

(1) promote the safety and emotional stability of each client;

(2) minimize further deterioration of each client;

(3) help each client to obtain ongoing care and treatment;

(4) prevent placement in settings that are more intensive, costly, or restrictive than

necessary and appropriate to meet client needs; and

(5) provide support, psychoeducation, and referrals to each client's family members,

service providers, and other third parties on behalf of the client in need of emergency

services.

(b) If a county provides engagement services under section
253B.041
, the county's

emergency service providers must refer clients to engagement services when the client

meets the criteria for engagement services.

Sec. 2.

Minnesota Statutes 2024, section 245F.02, subdivision 17, is amended to read:

Subd. 17.

Peer recovery support services.

"Peer recovery support services" means

services provided according to
deleted text begin
section
245F.08, subdivision 3
deleted text end
new text begin
sections 245G.07, subdivision

2a, paragraph (b), clause (2), and 254B.052
new text end
.

Sec. 3.

Minnesota Statutes 2025 Supplement, section 245F.08, subdivision 3, is amended

to read:

Subd. 3.

Peer recovery support services.

Peer recovery support services must meet the

requirements in section
deleted text begin
245G.07, subdivision 2a
, paragraph (b), clause (2)
deleted text end
new text begin
254B.052
new text end
, and

must be provided by a person who is qualified according to the requirements in section
deleted text begin

245F.15, subdivision 7
deleted text end
new text begin
245I.04, subdivisions 18 and 19
new text end
.

Sec. 4.

Minnesota Statutes 2024, section 245F.15, subdivision 7, is amended to read:

Subd. 7.

Recovery peer qualifications.

Recovery peers must:

(1) meet the qualifications in section
245I.04, subdivision 18
; and

(2) provide services according to the scope of practice established in section
245I.04
,

subdivision 19
deleted text begin
, under the supervision of an alcohol and drug counselor
deleted text end
.

Sec. 5.

Minnesota Statutes 2024, section 245G.04, is amended by adding a subdivision to

read:

new text begin

Subd. 4.

new text end

new text begin

Tobacco educational material.

new text end

new text begin

A license holder must provide tobacco and

nicotine educational material to a client on the day of service initiation. The license holder

must use educational material approved by the commissioner that contains information on:

new text end

new text begin

(1) risks associated with use of tobacco or nicotine products;

new text end

new text begin

(2) types of tobacco or nicotine products, including differentiating between commercial

versus traditional or sacred tobacco;

new text end

new text begin

(3) treatment options, including the use of medication for tobacco use disorder; and

new text end

new text begin

(4) benefits of receiving treatment for tobacco or nicotine use while attending substance

use disorder treatment for another primary substance.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective January 1, 2027.

new text end

Sec. 6.

Minnesota Statutes 2025 Supplement, section 245G.11, subdivision 7, is amended

to read:

Subd. 7.

Treatment coordination provider qualifications.

(a) Treatment coordination

must be provided by qualified staff. An individual is qualified to provide treatment

coordination if the individual meets the qualifications of an alcohol and drug counselor

under subdivision 5 or if the individual:

(1) is skilled in the process of identifying and assessing a wide range of client needs;

(2) is knowledgeable about local community resources and how to use those resources

for the benefit of the client;

(3) has completed 15 hours of education or training on substance use disorder,

co-occurring conditions, and care coordination for individuals with substance use disorder

or co-occurring conditions that is consistent with national evidence-based standards;

(4) meets one of the following criteria:

deleted text begin

(i) has a bachelor's degree in one of the behavioral sciences or related fields;

deleted text end

deleted text begin

(ii)
deleted text end
new text begin
(i)
new text end
has a high school diploma or equivalent; or

deleted text begin

(iii)
deleted text end
new text begin
(ii)
new text end
is a mental health practitioner who meets the qualifications under section
245I.04,

subdivision 4
; and

(5) either has at least 1,000 hours of supervised experience working with individuals

with substance use disorder or co-occurring conditions or receives treatment supervision at

least once per week until obtaining 1,000 hours of supervised experience working with

individuals with substance use disorder or co-occurring conditions.

(b) A treatment coordinator must receive the following levels of supervision from an

alcohol and drug counselor or a mental health professional whose scope of practice includes

substance use disorder treatment and assessments:

(1) for a treatment coordinator that has not obtained 1,000 hours of supervised experience

under paragraph (a), clause (5), at least one hour of supervision per week; or

(2) for a treatment coordinator that has obtained at least 1,000 hours of supervised

experience under paragraph (a), clause (5), at least one hour of supervision per month.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective August 1, 2026.

new text end

Sec. 7.

Minnesota Statutes 2024, section 245G.11, subdivision 8, is amended to read:

Subd. 8.

Recovery peer qualifications.

A recovery peer must:

(1) meet the qualifications in section
245I.04
, subdivision 18; and

(2) provide services according to the scope of practice established in section
245I.04,

subdivision 19
deleted text begin
, under the supervision of an alcohol and drug counselor
deleted text end
.

Sec. 8.

Minnesota Statutes 2025 Supplement, section 245I.04, subdivision 17, is amended

to read:

Subd. 17.

Mental health behavioral aide scope of practice.

While under the treatment

supervision of a mental health professional, a mental health behavioral aide may practice

psychosocial skills with a child client according to the child's treatment plan
deleted text begin
and individual

behavior plan
deleted text end
that a mental health professional, clinical trainee, or behavioral health

practitioner has previously taught to the child.

Sec. 9.

Minnesota Statutes 2024, section 245I.04, is amended by adding a subdivision to

read:

new text begin

Subd. 20.

new text end

new text begin

Limitation on affiliation across service lines.

new text end

new text begin

(a) A mental health professional,

as defined in subdivision 3, may not simultaneously serve in a clinical, supervisory, or

designated role for more than ten distinct licensed provider organizations or service lines

delivering Medicaid-funded services. A mental health professional may not provide clinical

or administrative supervision to more than 20 direct care or clinical staff across all affiliated

provider organizations and service lines unless an exception is granted by the commissioner

under paragraph (c).

new text end

new text begin

(b) The commissioner shall establish criteria and a standardized process for evaluating

exception requests under paragraph (a).

new text end

new text begin

(c) Upon written request, the commissioner may grant an exception if the requester

demonstrates that:

new text end

new text begin

(1) the mental health professional can effectively meet all clinical, supervisory, and

administrative responsibilities across affiliated programs;

new text end

new text begin

(2) the oversight of client care will not be compromised; and

new text end

new text begin

(3) the proposed arrangement complies with all applicable supervision, documentation,

and service delivery requirements.

new text end

new text begin

(d) In determining whether to grant an exception under paragraph (c), the commissioner

shall consider:

new text end

new text begin

(1) the geographic distribution of services;

new text end

new text begin

(2) the complexity and acuity of client needs;

new text end

new text begin

(3) the mental health professional's other responsibilities, including direct service

provision; and

new text end

new text begin

(4) whether adequate supervision can be maintained in compliance with program

standards.

new text end

new text begin

(e) The commissioner shall rescind approval of the exception granted under paragraph

(c) if the requester fails to comply with applicable program standards or with the terms of

the exception.

new text end

new text begin

(f) The commissioner may adopt rules as necessary to implement and enforce this

subdivision.

new text end

new text begin

(g) A mental health professional determined to be in violation of this subdivision may

be subject to corrective action, licensing sanctions, or administrative penalties in accordance

with chapter 245A and other applicable law.

new text end

Sec. 10.

Minnesota Statutes 2024, section 245I.08, subdivision 4, is amended to read:

Subd. 4.

Progress notes.

A license holder must use a progress note to document each

occurrence of a mental health service that a staff person provides to a client. A progress

note must include the following:

(1) the type of service;

(2) the date of service;

(3) the start and stop time of the service unless the license holder is licensed as a

residential program;

(4) the location of the service;

(5) the scope of the service, including: (i) the targeted goal and objective; (ii) the

intervention that the staff person provided to the client and the methods that the staff person

used; (iii) the client's response to the intervention; and (iv) the staff person's plan to take

future actions, including changes in treatment that the staff person will implement if the

intervention was ineffective;

(6) the signature and credentials of the staff person who provided the service to the

client;

new text begin

(7) the dated signature and credentials of the treatment supervisor;

new text end

deleted text begin

(7)
deleted text end
new text begin
(8)
new text end
the mental health provider travel documentation required by section
256B.0625
,

if applicable; and

deleted text begin

(8)
deleted text end
new text begin
(9)
new text end
significant observations by the staff person, if applicable, including: (i) the client's

current risk factors; (ii) emergency interventions by staff persons; (iii) consultations with

or referrals to other professionals, family, or significant others; and (iv) changes in the

client's mental or physical symptoms.

Sec. 11.

Minnesota Statutes 2024, section 245I.10, subdivision 6, is amended to read:

Subd. 6.

Standard diagnostic assessment; required elements.

(a) Only a mental health

professional or a clinical trainee may complete a standard diagnostic assessment of a client.

A standard diagnostic assessment of a client must include a face-to-face interview with a

client and a written evaluation of the client. The assessor must complete a client's standard

diagnostic assessment within the client's cultural context. An alcohol and drug counselor

may gather and document the information in paragraphs (b) and (c) when completing a

comprehensive assessment according to section
245G.05
.

(b) When completing a standard diagnostic assessment of a client, the assessor must

gather and document information about the client's current life situation, including the

following information:

(1) the client's age;

(2) the client's current living situation, including the client's housing status and household

members;

(3) the status of the client's basic needs;

(4) the client's education level and employment status;

(5) the client's current medications;

(6) any immediate risks to the client's health and safety, including withdrawal symptoms,

medical conditions, and behavioral and emotional symptoms;

(7) the client's perceptions of the client's condition;

(8) the client's description of the client's symptoms, including the reason for the client's

referral;

(9) the client's history of mental health and substance use disorder treatment
new text begin
, including

treatment for tobacco or nicotine use
new text end
;

(10) cultural influences on the client; and

(11) substance use history, if applicable, including:

(i) amounts and types of substances,
new text begin
including tobacco and nicotine products;
new text end
frequency

and duration
deleted text begin
,
deleted text end
new text begin
;
new text end
route of administration
deleted text begin
,
deleted text end
new text begin
;
new text end
periods of abstinence
deleted text begin
,
deleted text end
new text begin
;
new text end
and circumstances of relapse;

and

(ii) the impact to functioning when under the influence of substances, including legal

interventions.

(c) If the assessor cannot obtain the information that this paragraph requires without

retraumatizing the client or harming the client's willingness to engage in treatment, the

assessor must identify which topics will require further assessment during the course of the

client's treatment. The assessor must gather and document information related to the following

topics:

(1) the client's relationship with the client's family and other significant personal

relationships, including the client's evaluation of the quality of each relationship;

(2) the client's strengths and resources, including the extent and quality of the client's

social networks;

(3) important developmental incidents in the client's life;

(4) maltreatment, trauma, potential brain injuries, and abuse that the client has suffered;

(5) the client's history of or exposure to alcohol and drug usage and treatment; and

(6) the client's health history and the client's family health history, including the client's

physical, chemical, and mental health history.

(d) When completing a standard diagnostic assessment of a client, an assessor must use

a recognized diagnostic framework.

(1) When completing a standard diagnostic assessment of a client who is five years of

age or younger, the assessor must use the current edition of the DC: 0-5 Diagnostic

Classification of Mental Health and Development Disorders of Infancy and Early Childhood

published by Zero to Three.

(2) When completing a standard diagnostic assessment of a client who is six years of

age or older, the assessor must use the current edition of the Diagnostic and Statistical

Manual of Mental Disorders published by the American Psychiatric Association.

(3) When completing a standard diagnostic assessment of a client who is 18 years of

age or older, an assessor must use either (i) the CAGE-AID Questionnaire or (ii) the criteria

in the most recent edition of the Diagnostic and Statistical Manual of Mental Disorders

published by the American Psychiatric Association to screen and assess the client for a

substance use disorder
new text begin
, including tobacco use disorder
new text end
.

(e) When completing a standard diagnostic assessment of a client, the assessor must

include and document the following components of the assessment:

(1) the client's mental status examination;

(2) the client's baseline measurements; symptoms; behavior; skills; abilities; resources;

vulnerabilities; safety needs, including client information that supports the assessor's findings

after applying a recognized diagnostic framework from paragraph (d); and any differential

diagnosis of the client; and

(3) an explanation of: (i) how the assessor diagnosed the client using the information

from the client's interview, assessment, psychological testing, and collateral information

about the client; (ii) the client's needs; (iii) the client's risk factors; (iv) the client's strengths;

and (v) the client's responsivity factors.

(f) When completing a standard diagnostic assessment of a client, the assessor must

consult the client and the client's family about which services that the client and the family

prefer to treat the client. The assessor must make referrals for the client as to services required

by law.

(g) Information from other providers and prior assessments may be used to complete

the diagnostic assessment if the source of the information is documented in the diagnostic

assessment.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective January 1, 2027.

new text end

Sec. 12.

Minnesota Statutes 2025 Supplement, section 254A.03, subdivision 3, is amended

to read:

Subd. 3.

Rules for substance use disorder care.

(a) An eligible vendor of comprehensive

assessments under section
254B.0501
may determine the appropriate level of substance use

disorder treatment for a recipient of public assistance. The process for determining an

individual's financial eligibility for the behavioral health fund or determining an individual's

enrollment in or eligibility for a publicly subsidized health plan is not affected by the

individual's choice to access a comprehensive assessment for placement.

deleted text begin

(b) The commissioner shall develop and implement a utilization review process for

publicly funded treatment placements to monitor and review the clinical appropriateness

and timeliness of all publicly funded placements in treatment.

deleted text end

deleted text begin

(c)
deleted text end
new text begin
(b)
new text end
If a screen result is positive for alcohol or substance misuse, a brief screening for

alcohol or substance use disorder that is provided to a recipient of public assistance within

a primary care clinic, hospital, or other medical setting or school setting establishes medical

necessity and approval for an initial set of substance use disorder services identified in

section
254B.0505
. The initial set of services approved for a recipient whose screen result

is positive may include any combination of up to four hours of individual or group substance

use disorder treatment, two hours of substance use disorder treatment coordination, or two

hours of substance use disorder peer support services provided by a qualified individual

according to chapter 245G. A recipient must obtain an assessment pursuant to paragraph

(a) to be approved for additional treatment services. A comprehensive assessment pursuant

to section
245G.05
is not required to receive the initial set of services allowed under this

subdivision. A positive screen result establishes eligibility for the initial set of services

allowed under this subdivision.

deleted text begin

(d)
deleted text end
new text begin
(c)
new text end
An individual may choose to obtain a comprehensive assessment as provided in

section
245G.05
. Individuals obtaining a comprehensive assessment may access any enrolled

provider that is licensed to provide the level of service authorized pursuant to section

254A.19, subdivision 3
. If the individual is enrolled in a prepaid health plan, the individual

must comply with any provider network requirements or limitations.

Sec. 13.

Minnesota Statutes 2025 Supplement, section 254B.0505, subdivision 8, is

amended to read:

Subd. 8.

deleted text begin
Peer recovery support services
deleted text end
new text begin
Utilization review
new text end
requirements.

new text begin
(a)
new text end
Eligible

vendors of
deleted text begin
peer recovery support
deleted text end
services
new text begin
in subdivision 1, clauses (1), (4) to (8), and (10),
new text end

must
deleted text begin
:
deleted text end

deleted text begin

(1)
deleted text end
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
deleted text begin
for entities billing for peer recovery support services individually and not

receiving a daily rate; and
deleted text end
new text begin
.
new text end

deleted text begin

(2)
deleted text end

new text begin
(b) Entities billing for peer recovery support services individually and not receiving

a daily rate must
new text end
limit an individual client to 14 hours per week for peer recovery support

services from an individual provider of peer recovery support services.

Sec. 14.

Minnesota Statutes 2024, section 254B.052, subdivision 1, is amended to read:

Subdivision 1.

Peer recovery support services; service requirements.

(a) Peer recovery

support services are face-to-face interactions between a recovery peer and a client, on a

one-on-one basis, in which specific goals identified in an individual recovery plan, treatment

plan, or stabilization plan are discussed and addressed. Peer recovery support services are

provided to promote a client's recovery goals, self-sufficiency, self-advocacy, and

development of natural supports and to support maintenance of a client's recovery.

(b) Peer recovery support services must be provided according to
new text begin
(1)
new text end
an individual

recovery plan if provided by a recovery community organization or county, a treatment plan

if provided in
new text begin
either
new text end
a substance use disorder treatment program under chapter 245G
deleted text begin
,
deleted text end
or
new text begin
a

Tribally licensed substance use disorder treatment program, or (2)
new text end
a stabilization plan if

provided by a withdrawal management program under chapter 245F.

(c) A client receiving peer recovery support services must participate in the services

voluntarily. Any program that incorporates peer recovery support services must provide

written notice to the client that peer recovery support services will be provided.

(d) Peer recovery support services may not be provided to a client residing with or

employed by a recovery peer from whom
deleted text begin
they receive
deleted text end
new text begin
the client receives
new text end
services.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 15.

Minnesota Statutes 2025 Supplement, section 254B.052, subdivision 6, is amended

to read:

Subd. 6.

Monetary recovery.

deleted text begin
Peer recovery support
deleted text end
Services
new text begin
subject to section

254B.0505, subdivision 8, that are
new text end
not provided in accordance with this section are subject

to monetary recovery under section
256B.064
as money improperly paid.

Sec. 16.

Minnesota Statutes 2024, section 256B.0624, subdivision 6b, is amended to read:

Subd. 6b.

Crisis intervention services.

(a) If the crisis assessment determines mobile

crisis intervention services are needed, the crisis intervention services must be provided

promptly. As opportunity presents during the intervention, at least two members of the

mobile crisis intervention team must confer directly or by telephone about the crisis

assessment, crisis treatment plan, and actions taken and needed. At least one of the team

members must be providing face-to-face crisis intervention services. If providing crisis

intervention services, a clinical trainee or mental health practitioner must seek treatment

supervision as required in subdivision 9.

(b) If a provider delivers crisis intervention services while the recipient is absent, the

provider must document the reason for delivering services while the recipient is absent.

(c) The mobile crisis intervention team must develop a crisis treatment plan according

to subdivision 11.

(d) The mobile crisis intervention team must document which crisis treatment plan goals

and objectives have been met and when no further crisis intervention services are required.

(e) If the recipient's mental health crisis is stabilized, but the recipient needs a referral

to other services, the team must provide referrals to these services. If the recipient has a

case manager, planning for other services must be coordinated with the case manager. If

the recipient is unable to follow up on the referral, the team must link the recipient to the

service and follow up to ensure the recipient is receiving the service.

deleted text begin

(f) If the recipient's mental health crisis is stabilized and the recipient does not have an

advance directive, the case manager or crisis team shall offer to work with the recipient to

develop one.

deleted text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective upon federal approval.

new text end

Sec. 17.

Minnesota Statutes 2024, section 256B.0624, subdivision 7, is amended to read:

Subd. 7.

Crisis stabilization services.

(a) Crisis stabilization services must be provided

by qualified staff of a crisis stabilization services provider entity and must meet the following

standards:

(1) a crisis treatment plan must be developed that meets the criteria in subdivision 11;

(2) staff must be qualified as defined in subdivision 8;

(3) crisis stabilization services must be delivered according to the crisis treatment plan

and include face-to-face contact with the recipient by qualified staff for further assessment,

help with referrals, updating of the crisis treatment plan, skills training, and collaboration

with other service providers in the community;
deleted text begin
and
deleted text end

(4) if a provider delivers crisis stabilization services while the recipient is absent, the

provider must document the reason for delivering services while the recipient is absent
deleted text begin
.
deleted text end
new text begin
;

and
new text end

new text begin

(5) if the recipient is an adult and the recipient's mental health crisis is stabilized and

the recipient does not have a health care directive as defined by section 145C.01, subdivision

5a, or psychiatric declaration as defined by section 253B.03, subdivision 6d, the case manager

or crisis team must offer to work with the recipient to develop a directive or declaration.

new text end

(b) If crisis stabilization services are provided in a supervised, licensed residential setting

that serves no more than four adult residents, and one or more individuals are present at the

setting to receive residential crisis stabilization, the residential staff must include, for at

least eight hours per day, at least one mental health professional, clinical trainee, certified

rehabilitation specialist, or mental health practitioner. The commissioner shall establish a

statewide per diem rate for crisis stabilization services provided under this paragraph to

medical assistance enrollees. The rate for a provider shall not exceed the rate charged by

that provider for the same service to other payers. Payment shall not be made to more than

one entity for each individual for services provided under this paragraph on a given day.

The commissioner shall set rates prospectively for the annual rate period. The commissioner

shall require providers to submit annual cost reports on a uniform cost reporting form and

shall use submitted cost reports to inform the rate-setting process. The commissioner shall

recalculate the statewide per diem every year.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective upon federal approval.

new text end

Sec. 18.

Minnesota Statutes 2024, section 256B.0625, subdivision 47, is amended to read:

Subd. 47.

Treatment foster care services.

deleted text begin
Effective July 1, 2011, and subject to federal

approval,
deleted text end
Medical assistance covers
deleted text begin
treatment foster care
deleted text end
new text begin
children's intensive behavioral

health
new text end
services according to section
256B.0946
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 19.

Minnesota Statutes 2024, section 256B.0759, subdivision 3, is amended to read:

Subd. 3.

Provider standards.

(a) The commissioner must establish requirements for
deleted text begin

participating
deleted text end
providers that are consistent with the federal requirements of the demonstration

project.
new text begin
The following programs licensed by the Department of Human Services that receive

payment for substance use disorder treatment services under section 256B.0625 must certify

that the program meets the applicable American Society of Addiction Medicine (ASAM)

levels of care according to section 254B.19:

new text end

new text begin

(1) nonresidential substance use disorder treatment programs and residential treatment

programs licensed under chapter 245G as licensed substance use disorder treatment facilities;

new text end

new text begin

(2) withdrawal management programs licensed under chapter 245F; and

new text end

new text begin

(3) out-of-state residential substance use disorder treatment programs.

new text end

new text begin

Programs that do not meet the requirements of this paragraph are ineligible for payment for

services provided under section 256B.0625.

new text end

deleted text begin

(b) A participating residential provider must obtain applicable licensure under chapter

245F or 245G or other applicable standards for the services provided and must:

deleted text end

deleted text begin

(1) deliver services in accordance with standards published by the commissioner pursuant

to paragraph (d);

deleted text end

deleted text begin

(2) maintain formal patient referral arrangements with providers delivering step-up or

step-down levels of care in accordance with ASAM standards; and

deleted text end

deleted text begin

(3) offer substance use disorder treatment services with medications for opioid use

disorder on site or facilitate access to substance use disorder treatment services with

medications for opioid use disorder off site.

deleted text end

deleted text begin

(c) A participating outpatient provider must obtain applicable licensure under chapter

245G or other applicable standards for the services provided and must:

deleted text end

deleted text begin

(1) deliver services in accordance with standards published by the commissioner pursuant

to paragraph (d); and

deleted text end

deleted text begin

(2) maintain formal patient referral arrangements with providers delivering step-up or

step-down levels of care in accordance with ASAM standards.

deleted text end

deleted text begin

(d) If the provider standards under chapter 245G or other applicable standards conflict

or are duplicative, the commissioner may grant variances to the standards if the variances

do not conflict with federal requirements. The commissioner must publish service

components, service standards, and staffing requirements for participating providers that

are consistent with ASAM standards and federal requirements by October 1, 2020.

deleted text end

new text begin

(b) Programs licensed by the Department of Human Services as residential treatment

programs according to section 245G.21 that (1) receive payment under this chapter, (2) are

licensed as a hospital under sections 144.50 to 144.581, and (3) provide only ASAM level

3.7 medically monitored inpatient level of care are not required to enroll as demonstration

project providers. Programs meeting the criteria in this paragraph must submit evidence of

providing the required level of care to the commissioner to be exempt from enrolling in the

demonstration.

new text end

new text begin

(c) Tribally licensed programs that otherwise meet the requirements of subdivision 3

may elect to participate in the demonstration project. The Department of Human Services

must consult with Tribal Nations to discuss participation in the substance use disorder

demonstration project.

new text end

new text begin

(d) Programs subject to this section must:

new text end

new text begin

(1) deliver services in accordance with section 254B.19; and

new text end

new text begin

(2) offer substance use disorder treatment services with medications for opioid use

disorder on site or facilitate timely access to medications for opioid use disorder off site.

new text end

Sec. 20.

Minnesota Statutes 2025 Supplement, section 256B.0759, subdivision 4, is

amended to read:

Subd. 4.

Provider payment rates.

(a)
deleted text begin
Payment rates for participating
deleted text end
Providers must
deleted text begin

be increased for services provided to medical assistance enrollees. To receive a rate increase,

participating providers must meet demonstration project requirements and provide evidence

of formal referral arrangements with providers delivering step-up or step-down levels of

care. Providers that have enrolled in the demonstration project but have not met the provider

standards under subdivision 3 as of July 1, 2022, are not eligible for a rate increase under

this subdivision until the date that the provider meets the provider standards in subdivision

3. Services provided from July 1, 2022, to the date that the provider meets the provider

standards under subdivision 3 shall
deleted text end
be reimbursed at rates according to section
254B.0505,

subdivision 1
.
deleted text begin
Rate increases paid under this subdivision to a provider for services provided

between July 1, 2021, and July 1, 2022, are not subject to recoupment when the provider

is taking meaningful steps to meet demonstration project requirements that are not otherwise

required by law, and the provider provides documentation to the commissioner, upon request,

of the steps being taken.
deleted text end

deleted text begin

(b) The commissioner may temporarily suspend payments to the provider according to

section
256B.04, subdivision 21
, paragraph (d), if the provider does not meet the requirements

in paragraph (a). Payments withheld from the provider must be made once the commissioner

determines that the requirements in paragraph (a) are met.

deleted text end

deleted text begin

(c) For outpatient individual and group substance use disorder services under section

254B.0505, subdivision 1
, clause (1), and adolescent treatment programs that are licensed

as outpatient treatment programs according to sections
245G.01
to
245G.18
, provided on

or after January 1, 2021, payment rates must be increased by 20 percent over the rates in

effect on December 31, 2020.

deleted text end

deleted text begin

(d)
deleted text end
new text begin
(b)
new text end
Effective January 1, 2021, and contingent on annual federal approval, managed

care plans and county-based purchasing plans must reimburse providers of the substance

use disorder services meeting the
deleted text begin
criteria described in paragraph (a) who
deleted text end
new text begin
requirements of

section 254B.19 that
new text end
are employed by or under contract with the plan an amount that is at

least equal to the fee-for-service base rate payment for the substance use disorder services

described in paragraph
deleted text begin
(c)
deleted text end
new text begin
(a)
new text end
. The commissioner must monitor the effect of this requirement

on the rate of access to substance use disorder services and residential substance use disorder

rates. Capitation rates paid to managed care organizations and county-based purchasing

plans must reflect the impact of this requirement. This paragraph expires if federal approval

is not received at any time as required under this paragraph.

deleted text begin

(e)
deleted text end
new text begin
(c)
new text end
Effective July 1, 2021, contracts between managed care plans and county-based

purchasing plans and providers to whom paragraph
deleted text begin
(d)
deleted text end
new text begin
(b)
new text end
applies must allow recovery of

payments from those providers if, for any contract year, federal approval for the provisions

of paragraph
deleted text begin
(d)
deleted text end
new text begin
(b)
new text end
is not received, and capitation rates are adjusted as a result. Payment

recoveries must not exceed the amount equal to any decrease in rates that results from this

provision.

deleted text begin

(f)
deleted text end
new text begin
(d)
new text end
For substance use disorder services with medications for opioid use disorder under

section
254B.0505, subdivision 1
, clause (7), provided on or after January 1, 2021, payment

rates must be increased by 20 percent over the rates in effect on December 31, 2020. Upon

implementation of new rates according to section
254B.121
, the 20 percent increase will

no longer apply.

Sec. 21.

Minnesota Statutes 2025 Supplement, section 256B.0943, subdivision 1, is

amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have

the meanings given
deleted text begin
them
deleted text end
.

(b) "Children's therapeutic services and supports" means the flexible package of mental

health services for children who require varying therapeutic and rehabilitative levels of

intervention to treat a diagnosed mental illness, as defined in
section 245.462, subdivision

20
, or
245.4871, subdivision 15
. The services are time-limited interventions that are delivered

using various treatment modalities and combinations of services designed to reach treatment

outcomes identified in the individual treatment plan.

(c) "Clinical trainee" means a staff person who is qualified according to section
245I.04,

subdivision 6
.

(d) "Crisis planning" has the meaning given in section
245.4871, subdivision 9a
.

(e) "Culturally competent provider" means a provider who understands and can utilize

to a client's benefit the client's culture when providing services to the client. A provider

may be culturally competent because the provider is of the same cultural or ethnic group

as the client or the provider has developed the knowledge and skills through training and

experience to provide services to culturally diverse clients.

(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) "Individual treatment plan" means the plan described in section
245I.10, subdivisions

7 and 8
.

(j) "Mental health behavioral aide services" means medically necessary one-on-one

activities performed by a mental health behavioral aide qualified according to section

245I.04, subdivision 16
, to assist a child retain or generalize psychosocial skills as previously

trained by a mental health professional, clinical trainee, or mental health practitioner and

as described in the child's individual treatment plan
deleted text begin
and individual behavior plan
deleted text end
. Activities

involve working directly with the child or child's family as provided in subdivision 9,

paragraph (b), clause (4).

(k) "Mental health certified family peer specialist" means a staff person who is qualified

according to section
245I.04, subdivision 12
.

(l) "Mental health practitioner" means a staff person who is qualified according to section

245I.04, subdivision 4
.

(m) "Mental health professional" means a staff person who is qualified according to

section
245I.04, subdivision 2
.

(n) "Mental health service plan development" includes:

(1) development and revision of a child's individual treatment plan; and

(2) administering and reporting standardized outcome measurements approved by the

commissioner, as periodically needed to evaluate the effectiveness of treatment.

(o) "Mental illness" has the meaning given in section
245.462, subdivision 20
, paragraph

(a), for persons at least 18 years of age but under 21 years of age, and has the meaning given

in section
245.4871, subdivision 15
, for children under 18 years of age.

(p) "Psychotherapy" means the treatment described in section
256B.0671, subdivision

11
.

(q) "Rehabilitative services" or "psychiatric rehabilitation services" means interventions

to: (1) restore a child or adolescent to an age-appropriate developmental trajectory that had

been disrupted by a psychiatric illness; or (2) enable the child to self-monitor, compensate

for, cope with, counteract, or replace psychosocial skills deficits or maladaptive skills

acquired over the course of a psychiatric illness. Psychiatric rehabilitation services for

children combine coordinated psychotherapy to address internal psychological, emotional,

and intellectual processing deficits, and skills training to restore personal and social

functioning. Psychiatric rehabilitation services establish a progressive series of goals with

each achievement building upon a prior achievement.

(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).

(s) "Standard diagnostic assessment" means the assessment described in section
245I.10,

subdivision 6
.

(t) "Treatment supervision" means the supervision described in section
245I.06
.

Sec. 22.

Minnesota Statutes 2024, section 256B.0943, subdivision 6, is amended to read:

Subd. 6.

Provider entity clinical infrastructure requirements.

(a) To be an eligible

provider entity under this section, a provider entity must have a clinical infrastructure that

utilizes diagnostic assessment, individual treatment plans, service delivery, and individual

treatment plan review that are culturally competent, child-centered, and family-driven to

achieve maximum benefit for the client. The provider entity must review, and update as

necessary, the clinical policies and procedures every
deleted text begin
three
deleted text end
new text begin
two
new text end
years, must distribute the

policies and procedures to staff initially and upon each subsequent update, and must train

staff accordingly.

(b) The clinical infrastructure written policies and procedures must include policies and

procedures for meeting the requirements in this subdivision:

(1) providing or obtaining a client's standard diagnostic assessment, including a standard

diagnostic assessment. When required components of the standard diagnostic assessment

are not provided in an outside or independent assessment or cannot be attained immediately,

the provider entity must determine the missing information within 30 days and amend the

child's standard diagnostic assessment or incorporate the information into the child's

individual treatment plan;

(2) developing an individual treatment plan;

(3) providing treatment supervision plans for staff according to section
245I.06
. Treatment

supervision does not include the authority to make or terminate court-ordered placements

of the child. A treatment supervisor must be available for urgent consultation as required

by the individual client's needs or the situation;

(4) requiring a mental health professional to determine the level of supervision for a

behavioral health aide and to document and sign the supervision determination in the

behavioral health aide's supervision plan;

(5) ensuring the immediate accessibility of a mental health professional, clinical trainee,

or mental health practitioner to the behavioral aide during service delivery;

(6) providing service delivery that implements the individual treatment plan and meets

the requirements under subdivision 9; and

(7) individual treatment plan review. The review must determine the extent to which

the services have met each of the goals and objectives in the treatment plan. The review

must assess the client's progress and ensure that services and treatment goals continue to

be necessary and appropriate to the client and the client's family or foster family.

Sec. 23.

Minnesota Statutes 2024, section 256B.0946, subdivision 4, is amended to read:

Subd. 4.

Service delivery payment requirements.

(a) To be eligible for payment under

this section, a provider must develop and practice written policies and procedures for

children's intensive behavioral health services, consistent with subdivision 1, paragraph (b),

and comply with the following requirements in paragraphs (b) to (n).

(b) Each previous and current mental health, school, and physical health treatment

provider must be contacted to request documentation of treatment and assessments that the

eligible client has received. This information must be reviewed and incorporated into the

standard diagnostic assessment and team consultation and treatment planning review process.

(c) Each client receiving treatment must be assessed for a trauma history, and the client's

treatment plan must document how the results of the assessment will be incorporated into

treatment.

(d) The level of care assessment as defined in section
245I.02, subdivision 19
, and

functional assessment as defined in section
245I.02, subdivision 17
, must be updated at

least every 180 days or prior to discharge from the service, whichever comes first.

(e) Each client receiving treatment services must have an individual treatment plan that

is reviewed, evaluated, and approved every 180 days using the team consultation and

treatment planning process.

(f) Clinical care consultation must be provided in accordance with the client's individual

treatment plan.

(g) Each client must have a crisis plan within ten days of initiating services and must

have access to clinical phone support 24 hours per day, seven days per week, during the

course of treatment. The crisis plan must demonstrate coordination with the local or regional

mobile crisis intervention team.

(h) Services must be delivered and documented at least three days per week, equaling

at least six hours of treatment per week. If the mental health professional, client, and family

agree, service units may be temporarily reduced for a period of no more than 60 days in

order to meet the needs of the client and family, or as part of transition or on a discharge

plan to another service or level of care. The reasons for service reduction must be identified
deleted text begin
,
deleted text end
new text begin

and
new text end
documented
deleted text begin
, and included
deleted text end
in the treatment plan
new text begin
or case file
new text end
. Billing and payment are

prohibited for days on which no services are delivered and documented.

(i) Location of service delivery must be in the client's home, day care setting, school, or

other community-based setting that is specified on the client's individualized treatment plan.

(j) Treatment must be developmentally and culturally appropriate for the client.

(k) Services must be delivered in continual collaboration and consultation with the

client's medical providers and, in particular, with prescribers of psychotropic medications,

including those prescribed on an off-label basis. Members of the service team must be aware

of the medication regimen and potential side effects.

(l) Parents, siblings, foster parents, legal guardians, and members of the child's

permanency plan must be involved in treatment and service delivery unless otherwise noted

in the treatment plan.

(m) Transition planning for the child must be conducted starting with the first treatment

plan and must be addressed throughout treatment to support the child's permanency plan

and postdischarge mental health service needs.

(n) In order for a provider to receive the daily per-client encounter rate, at least one of

the services listed in subdivision 1, paragraph (b), clauses (1) to (3), must be provided. The

services listed in subdivision 1, paragraph (b), clauses (4) and (5), may be included as part

of the daily per-client encounter rate.

Sec. 24.

Minnesota Statutes 2025 Supplement, section 256B.0947, subdivision 3a, is

amended to read:

Subd. 3a.

Required service components.

(a) Intensive nonresidential rehabilitative

mental health services, supports, and ancillary activities that are covered by a single daily

rate per client must include the following, as needed by the individual client:

(1) individual, family, and group psychotherapy;

(2) individual, family, and group skills training, as defined in section
256B.0943
,

subdivision 1, paragraph (r);

(3) crisis planning as defined in section
245.4871, subdivision 9a
;

(4) medication management provided by a
deleted text begin
physician, an advanced practice registered

nurse with certification in psychiatric and mental health care, or a physician assistant
deleted text end
new text begin
qualified

provider
new text end
;

(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.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027, or upon federal approval,

whichever is later.

new text end

Sec. 25.

Minnesota Statutes 2024, section 256B.0947, subdivision 5, is amended to read:

Subd. 5.

Standards for intensive nonresidential rehabilitative providers.

(a) Services

must meet the standards in this section and chapter 245I as required in section
245I.011,

subdivision 5
.

(b) The treatment team must have specialized training in providing services to the specific

age group of youth that the team serves. An individual treatment team must serve youth

who are: (1) at least eight years of age or older and under 16 years of age, or (2) at least 14

years of age or older and under 21 years of age.

(c) The treatment team for intensive nonresidential rehabilitative mental health services

comprises both permanently employed core team members and client-specific team members

as follows:

(1) Based on professional qualifications and client needs, clinically qualified core team

members are assigned on a rotating basis as the client's lead worker to coordinate a client's

care. The core team must comprise at least four full-time equivalent direct care staff and

must minimally include:

(i) a mental health professional who serves as team leader to provide administrative

direction and treatment supervision to the team;

(ii)
deleted text begin
an advanced-practice registered nurse with certification in psychiatric or mental

health care or a board-certified child and adolescent psychiatrist, either of which must be

credentialed to prescribe medications
deleted text end
new text begin
a psychiatric care provider credentialed to prescribe

medications who is either an advanced practice registered nurse with advanced education

and training in psychiatric and mental health care or a board-certified psychiatrist. The

psychiatric care provider must have demonstrated clinical experience and qualifications for

working with children and adolescents with serious mental illness and co-occurring mental

illness and substance use disorder
new text end
;

(iii) a mental health certified peer specialist who is qualified according to section
245I.04,

subdivision 10
, and is also a former children's mental health consumer; and

(iv) a co-occurring disorder specialist who meets the requirements under section

256B.0622, subdivision 7a
, paragraph (a), clause (4), who will provide or facilitate the

provision of co-occurring disorder treatment to clients.

(2) The core team may also include any of the following:

(i) additional mental health professionals;

(ii) a vocational specialist;

(iii) an educational specialist with knowledge and experience working with youth

regarding special education requirements and goals, special education plans, and coordination

of educational activities with health care activities;

(iv) a child and adolescent psychiatrist who may be retained on a consultant basis;

(v) a clinical trainee qualified according to section
245I.04, subdivision 6
;

(vi) a mental health practitioner qualified according to section
245I.04, subdivision 4
;

(vii) a case management service provider, as defined in section
245.4871, subdivision

4
;

(viii) a housing access specialist; and

(ix) a family peer specialist as defined in subdivision 2, paragraph (j).

(3) A treatment team may include, in addition to those in clause (1) or (2), ad hoc

members not employed by the team who consult on a specific client and who must accept

overall clinical direction from the treatment team for the duration of the client's placement

with the treatment team and must be paid by the provider agency at the rate for a typical

session by that provider with that client or at a rate negotiated with the client-specific

member. Client-specific treatment team members may include:

(i) the mental health professional treating the client prior to placement with the treatment

team;

(ii) the client's current substance use counselor, if applicable;

(iii) a lead member of the client's individualized education program team or school-based

mental health provider, if applicable;

(iv) a representative from the client's health care home or primary care clinic, as needed

to ensure integration of medical and behavioral health care;

(v) the client's probation officer or other juvenile justice representative, if applicable;

and

(vi) the client's current vocational or employment counselor, if applicable.

(d) The treatment supervisor shall be an active member of the treatment team and shall

function as a practicing clinician at least on a part-time basis. The treatment team shall meet

with the treatment supervisor at least weekly to discuss recipients' progress and make rapid

adjustments to meet recipients' needs. The team meeting must include client-specific case

reviews and general treatment discussions among team members. Client-specific case

reviews and planning must be documented in the individual client's treatment record.

(e) The staffing ratio must not exceed ten clients to one full-time equivalent treatment

team position.

(f) The treatment team shall serve no more than 80 clients at any one time. Should local

demand exceed the team's capacity, an additional team must be established rather than

exceed this limit.

(g) Nonclinical staff shall have prompt access in person or by telephone to a mental

health practitioner, clinical trainee, or mental health professional. The provider shall have

the capacity to promptly and appropriately respond to emergent needs and make any

necessary staffing adjustments to ensure the health and safety of clients.

(h) The intensive nonresidential rehabilitative mental health services provider shall

participate in evaluation of the assertive community treatment for youth (Youth ACT) model

as conducted by the commissioner, including the collection and reporting of data and the

reporting of performance measures as specified by contract with the commissioner.

(i) A regional treatment team may serve multiple counties.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2027, or upon federal approval,

whichever is later.

new text end

Sec. 26.

Minnesota Statutes 2025 Supplement, section 256L.03, subdivision 5, is amended

to read:

Subd. 5.

Cost-sharing.

(a) Co-payments, coinsurance, and deductibles do not apply to

children under the age of 21 and to American Indians as defined in Code of Federal

Regulations, title 42, section 600.5.

(b) The commissioner must adjust co-payments, coinsurance, and deductibles for covered

services in a manner sufficient to maintain the actuarial value of the benefit to 94 percent.

The cost-sharing changes described in this paragraph do not apply to eligible recipients or

services exempt from cost-sharing under state law. The cost-sharing changes described in

this paragraph shall not be implemented prior to January 1, 2016.

(c) The cost-sharing changes authorized under paragraph (b) must satisfy the requirements

for cost-sharing under the Basic Health Program as set forth in Code of Federal Regulations,

title 42, sections 600.510 and 600.520.

(d) Cost-sharing for prescription drugs and related medical supplies to treat chronic

disease must comply with the requirements of section
62Q.481
.

(e) Co-payments, coinsurance, and deductibles do not apply to additional diagnostic

services or testing that a health care provider determines an enrollee requires after a

mammogram, as specified under section
62A.30, subdivision 5
.

(f) Cost-sharing must not apply to drugs used for tobacco and nicotine cessation or to

tobacco and nicotine cessation services covered under section
256B.0625, subdivision 68
.

(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
new text begin
,

crisis stabilization provided in a community setting,
new text end
or crisis assessment as defined in section

256B.0624, subdivision 2
.

Sec. 27.
new text begin
REPEALER.
new text end

new text begin

Minnesota Statutes 2024, section 256B.0759, subdivisions 2 and 5,

new text end

new text begin

are repealed.

new text end

ARTICLE 3

HEALTH CARE

Section 1.

Minnesota Statutes 2024, section 142B.01, subdivision 8, is amended to read:

Subd. 8.

Controlling individual.

(a) "Controlling individual" means an owner of a

program or service provider licensed under this chapter and the following individuals, if

applicable:

(1) each officer of the organization, including the chief executive officer and chief

financial officer;

(2) the individual designated as the authorized agent under section
142B.10, subdivision

1, paragraph (b);

(3) the individual designated as the compliance officer under section
deleted text begin
256B.04,
deleted text begin
subdivision
deleted text end

21, paragraph (g)
deleted text end
new text begin
256B.044, subdivision 7, paragraph (b)
new text end
;

(4) each managerial official whose responsibilities include the direction of the

management or policies of a program;

(5) the individual designated as the primary provider of care for a special family child

care program under section
142B.41, subdivision 4
, paragraph (d); and

(6) the president and treasurer of the board of directors of a nonprofit corporation.

(b) Controlling individual does not include:

(1) a bank, savings bank, trust company, savings association, credit union, industrial

loan and thrift company, investment banking firm, or insurance company unless the entity

operates a program directly or through a subsidiary;

(2) an individual who is a state or federal official, or state or federal employee, or a

member or employee of the governing body of a political subdivision of the state or federal

government that operates one or more programs, unless the individual is also an officer,

owner, or managerial official of the program; receives remuneration from the program; or

owns any of the beneficial interests not excluded in this subdivision;

(3) an individual who owns less than five percent of the outstanding common shares of

a corporation:

(i) whose securities are exempt under section
80A.45
, clause (6); or

(ii) whose transactions are exempt under section
80A.46
, clause (2);

(4) an individual who is a member of an organization exempt from taxation under section

290.05
, unless the individual is also an officer, owner, or managerial official of the program

or owns any of the beneficial interests not excluded in this subdivision. This clause does

not exclude from the definition of controlling individual an organization that is exempt from

taxation; or

(5) an employee stock ownership plan trust, or a participant or board member of an

employee stock ownership plan, unless the participant or board member is a controlling

individual according to paragraph (a).

(c) For purposes of this subdivision, "managerial official" means an individual who has

the decision-making authority related to the operation of the program, and the responsibility

for the ongoing management of or direction of the policies, services, or employees of the

program. A site director who has no ownership interest in the program is not considered to

be a managerial official for purposes of this definition.

Sec. 2.

Minnesota Statutes 2024, section 245A.02, subdivision 5a, is amended to read:

Subd. 5a.

Controlling individual.

(a) "Controlling individual" means an owner of a

program or service provider licensed under this chapter and the following individuals, if

applicable:

(1) each officer of the organization, including the chief executive officer and chief

financial officer;

(2) the individual designated as the authorized agent under section
245A.04, subdivision

1
, paragraph (b);

(3) the individual designated as the compliance officer under section
deleted text begin
256B.04, subdivision

21
, paragraph (g)
deleted text end
new text begin
256B.044, subdivision 7, paragraph (b)
new text end
;

(4) each managerial official whose responsibilities include the direction of the

management or policies of a program; and

(5) the president and treasurer of the board of directors of a nonprofit corporation.

(b) Controlling individual does not include:

(1) a bank, savings bank, trust company, savings association, credit union, industrial

loan and thrift company, investment banking firm, or insurance company unless the entity

operates a program directly or through a subsidiary;

(2) an individual who is a state or federal official, or state or federal employee, or a

member or employee of the governing body of a political subdivision of the state or federal

government that operates one or more programs, unless the individual is also an officer,

owner, or managerial official of the program, receives remuneration from the program, or

owns any of the beneficial interests not excluded in this subdivision;

(3) an individual who owns less than five percent of the outstanding common shares of

a corporation:

(i) whose securities are exempt under section
80A.45
, clause (6); or

(ii) whose transactions are exempt under section
80A.46
, clause (2);

(4) an individual who is a member of an organization exempt from taxation under section

290.05
, unless the individual is also an officer, owner, or managerial official of the program

or owns any of the beneficial interests not excluded in this subdivision. This clause does

not exclude from the definition of controlling individual an organization that is exempt from

taxation; or

(5) an employee stock ownership plan trust, or a participant or board member of an

employee stock ownership plan, unless the participant or board member is a controlling

individual according to paragraph (a).

(c) For purposes of this subdivision, "managerial official" means an individual who has

the decision-making authority related to the operation of the program, and the responsibility

for the ongoing management of or direction of the policies, services, or employees of the

program. A site director who has no ownership interest in the program is not considered to

be a managerial official for purposes of this definition.

Sec. 3.

Minnesota Statutes 2024, section 245D.081, subdivision 3, is amended to read:

Subd. 3.

Program management and oversight.

(a) The license holder must designate

a managerial staff person or persons to provide program management and oversight of the

services provided by the license holder. The designated manager is responsible for the

following:

(1) maintaining a current understanding of the licensing requirements sufficient to ensure

compliance throughout the program as identified in section
245A.04, subdivision
1, paragraph

(e), and when applicable, as identified in section
deleted text begin
256B.04, subdivision 21
, paragraph (g)
deleted text end
new text begin

256B.044, subdivision 7
new text end
;

(2) ensuring the duties of the designated coordinator are fulfilled according to the

requirements in subdivision 2;

(3) ensuring the program implements corrective action identified as necessary by the

program following review of incident and emergency reports according to the requirements

in section
245D.11, subdivision 2
, clause (7). An internal review of incident reports of

alleged or suspected maltreatment must be conducted according to the requirements in

section
245A.65, subdivision 1
, paragraph (b);

(4) evaluation of satisfaction of persons served by the program, the person's legal

representative, if any, and the case manager, with the service delivery and progress toward

accomplishing outcomes identified in sections
245D.07
and
245D.071
, and ensuring and

protecting each person's rights as identified in section
245D.04
;

(5) ensuring staff competency requirements are met according to the requirements in

section
245D.09, subdivision 3
, and ensuring staff orientation and training is provided

according to the requirements in section
245D.09, subdivisions 4
, 4a, and 5;

(6) ensuring corrective action is taken when ordered by the commissioner and that the

terms and conditions of the license and any variances are met; and

(7) evaluating the information identified in clauses (1) to (6) to develop, document, and

implement ongoing program improvements.

(b) The designated manager must be competent to perform the duties as required and

must minimally meet the education and training requirements identified in subdivision 2,

paragraph (b), and have a minimum of three years of supervisory level experience in a

program that provides care or education to vulnerable adults or children.

Sec. 4.

Minnesota Statutes 2025 Supplement, section 256B.04, subdivision 21, is amended

to read:

Subd. 21.

Provider enrollment.

deleted text begin
(a)
deleted text end
The commissioner shall enroll providers and conduct

screening activities as required by
new text begin
sections 256B.044 to 256B.0444 and
new text end
Code of Federal

Regulations, title 42, section 455, subpart E.

deleted text begin

A provider must enroll each provider-controlled location where direct services are

provided. The commissioner may deny a provider's incomplete application if a provider

fails to respond to the commissioner's request for additional information within 60 days of

the request. The commissioner must conduct a background study under chapter

deleted text end

deleted text begin

245C

deleted text end

deleted text begin

,

including a review of databases in section
245C.08, subdivision 1
, paragraph (a), clauses

(1) to (5), for a provider described in this paragraph. The background study requirement

may be satisfied if the commissioner conducted a fingerprint-based background study on

the provider that includes a review of databases in section
245C.08, subdivision 1
, paragraph

(a), clauses (1) to (5).

deleted text end

deleted text begin

(b) The commissioner shall revalidate:

deleted text end

deleted text begin

(1) each provider under this subdivision at least once every five years;

deleted text end

deleted text begin

(2) each personal care assistance agency, CFSS provider-agency, and CFSS financial

management services provider under this subdivision at least once every three years;

deleted text end

deleted text begin

(3) each EIDBI agency under this subdivision at least once every three years; and

deleted text end

deleted text begin

(4) at the commissioner's discretion, any medical-assistance-only provider type the

commissioner deems "high-risk" under this subdivision.

deleted text end

deleted text begin

(c) The commissioner shall conduct revalidation as follows:

deleted text end

deleted text begin

(1) provide 30-day notice of the revalidation due date including instructions for

revalidation and a list of materials the provider must submit;

deleted text end

deleted text begin

(2) if a provider fails to submit all required materials by the due date, notify the provider

of the deficiency within 30 days after the due date and allow the provider an additional 30

days from the notification date to comply; and

deleted text end

deleted text begin

(3) if a provider fails to remedy a deficiency within the 30-day time period, give 60-day

notice of termination and immediately suspend the provider's ability to bill. The provider

does not have the right to appeal suspension of ability to bill.

deleted text end

deleted text begin

(d) If a provider fails to comply with any individual provider requirement or condition

of participation, the commissioner may suspend the provider's ability to bill until the provider

comes into compliance. The commissioner's decision to suspend the provider is not subject

to an administrative appeal.

deleted text end

deleted text begin

(e) Correspondence and notifications, including notifications of termination and other

actions, may be delivered electronically to a provider's MN-ITS mailbox. This paragraph

does not apply to correspondences and notifications related to background studies.

deleted text end

deleted text begin

(f) If the commissioner or the Centers for Medicare and Medicaid Services determines

that a provider is designated "high-risk," the commissioner may withhold payment from

providers within that category upon initial enrollment for a 90-day period. The withholding

for each provider must begin on the date of the first submission of a claim.

deleted text end

deleted text begin

(g) An enrolled provider that is also licensed by the commissioner under chapter

deleted text end

deleted text begin

245A

deleted text end

deleted text begin

,

is licensed as a home care provider by the Department of Health under chapter 144A, or is

licensed as an assisted living facility under chapter

deleted text end

deleted text begin

144G

deleted text end

deleted text begin

and has a home and

community-based services designation on the home care license under section
144A.484
,

must designate an individual as the entity's compliance officer. The compliance officer

must:

deleted text end

deleted text begin

(1) develop policies and procedures to assure adherence to medical assistance laws and

regulations and to prevent inappropriate claims submissions;

deleted text end

deleted text begin

(2) train the employees of the provider entity, and any agents or subcontractors of the

provider entity including billers, on the policies and procedures under clause (1);

deleted text end

deleted text begin

(3) respond to allegations of improper conduct related to the provision or billing of

medical assistance services, and implement action to remediate any resulting problems;

deleted text end

deleted text begin

(4) use evaluation techniques to monitor compliance with medical assistance laws and

regulations;

deleted text end

deleted text begin

(5) promptly report to the commissioner any identified violations of medical assistance

laws or regulations; and

deleted text end

deleted text begin

(6) within 60 days of discovery by the provider of a medical assistance reimbursement

overpayment, report the overpayment to the commissioner and make arrangements with

the commissioner for the commissioner's recovery of the overpayment.

deleted text end

deleted text begin

The commissioner may require, as a condition of enrollment in medical assistance, that a

provider within a particular industry sector or category establish a compliance program that

contains the core elements established by the Centers for Medicare and Medicaid Services.

deleted text end

deleted text begin

(h) The commissioner may revoke the enrollment of an ordering or rendering provider

for a period of not more than one year, if the provider fails to maintain and, upon request

from the commissioner, provide access to documentation relating to written orders or requests

for payment for durable medical equipment, certifications for home health services, or

referrals for other items or services written or ordered by such provider, when the

commissioner has identified a pattern of a lack of documentation. A pattern means a failure

to maintain documentation or provide access to documentation on more than one occasion.

Nothing in this paragraph limits the authority of the commissioner to sanction a provider

under the provisions of section
256B.064
.

deleted text end

deleted text begin

(i) The commissioner shall terminate or deny the enrollment of any individual or entity

if the individual or entity has been terminated from participation in Medicare or under the

Medicaid program or Children's Health Insurance Program of any other state. The

commissioner may exempt a rehabilitation agency from termination or denial that would

otherwise be required under this paragraph, if the agency:

deleted text end

deleted text begin

(1) is unable to retain Medicare certification and enrollment solely due to a lack of billing

to the Medicare program;

deleted text end

deleted text begin

(2) meets all other applicable Medicare certification requirements based on an on-site

review completed by the commissioner of health; and

deleted text end

deleted text begin

(3) serves primarily a pediatric population.

deleted text end

deleted text begin

(j) As a condition of enrollment in medical assistance, the commissioner shall require

that a provider designated "moderate" or "high-risk" by the Centers for Medicare and

Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid

Services, its agents, or its designated contractors and the state agency, its agents, or its

designated contractors to conduct unannounced on-site inspections of any provider location.

The commissioner shall publish in the Minnesota Health Care Program Provider Manual a

list of provider types designated "limited," "moderate," or "high-risk," based on the criteria

and standards used to designate Medicare providers in Code of Federal Regulations, title

42, section 424.518. The list and criteria are not subject to the requirements of chapter

deleted text end

deleted text begin

14

deleted text end

deleted text begin

.

The commissioner's designations are not subject to administrative appeal.

deleted text end

deleted text begin

(k) As a condition of enrollment in medical assistance, the commissioner shall require

that a high-risk provider, or a person with a direct or indirect ownership interest in the

provider of five percent or higher, consent to criminal background checks, including

fingerprinting, when required to do so under state law or by a determination by the

commissioner or the Centers for Medicare and Medicaid Services that a provider is designated

high-risk for fraud, waste, or abuse.

deleted text end

deleted text begin

(l)(1) Upon initial enrollment, reenrollment, and notification of revalidation, all durable

medical equipment, prosthetics, orthotics, and supplies (DMEPOS) medical suppliers

meeting the durable medical equipment provider and supplier definition in clause (3),

operating in Minnesota and receiving Medicaid funds must purchase a surety bond that is

annually renewed and designates the Minnesota Department of Human Services as the

obligee, and must be submitted in a form approved by the commissioner. For purposes of

this clause, the following medical suppliers are not required to obtain a surety bond: a

federally qualified health center, a home health agency, the Indian Health Service, a

pharmacy, and a rural health clinic.

deleted text end

deleted text begin

(2) At the time of initial enrollment or reenrollment, durable medical equipment providers

and suppliers defined in clause (3) must purchase a surety bond of $50,000. If a revalidating

provider's Medicaid revenue in the previous calendar year is up to and including $300,000,

the provider agency must purchase a surety bond of $50,000. If a revalidating provider's

Medicaid revenue in the previous calendar year is over $300,000, the provider agency must

purchase a surety bond of $100,000. The surety bond must allow for recovery of costs and

fees in pursuing a claim on the bond. Any action to obtain monetary recovery or sanctions

from a surety bond must occur within six years from the date the debt is affirmed by a final

agency decision. An agency decision is final when the right to appeal the debt has been

exhausted or the time to appeal has expired under section
256B.064
.

deleted text end

deleted text begin

(3) "Durable medical equipment provider or supplier" means a medical supplier that can

purchase medical equipment or supplies for sale or rental to the general public and is able

to perform or arrange for necessary repairs to and maintenance of equipment offered for

sale or rental.

deleted text end

deleted text begin

(m) The Department of Human Services may require a provider to purchase a surety

bond as a condition of initial enrollment, reenrollment, reinstatement, or continued enrollment

if: (1) the provider fails to demonstrate financial viability, (2) the department determines

there is significant evidence of or potential for fraud and abuse by the provider, or (3) the

provider or category of providers is designated high-risk pursuant to paragraph (f) and as

per Code of Federal Regulations, title 42, section 455.450. The surety bond must be in an

amount of $100,000 or ten percent of the provider's payments from Medicaid during the

immediately preceding 12 months, whichever is greater. The surety bond must name the

Department of Human Services as an obligee and must allow for recovery of costs and fees

in pursuing a claim on the bond. This paragraph does not apply if the provider currently

maintains a surety bond under the requirements in section
256B.051
,
256B.0659
,
256B.0701
,

or
256B.85
.

deleted text end

Sec. 5.

new text begin

[256B.044] PROVIDER ENROLLMENT.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Designating categorical risk levels.

new text end

new text begin

(a) The commissioner must designate

provider types as "limited-risk," "moderate-risk," or "high-risk," based on the criteria and

standards used to designate Medicare providers in Code of Federal Regulations, title 42,

section 424.518. The commissioner must publish a list of provider types and designated

categorical risk levels in the Minnesota Health Care Program Provider Manual.

new text end

new text begin

(b) The list and criteria are not subject to the requirements of chapter 14, and section

14.386 does not apply.

new text end

new text begin

(c) The commissioner's designations are not subject to administrative appeal.

new text end

new text begin

Subd. 2.

new text end

new text begin

Service location enrollment.

new text end

new text begin

A provider must enroll each provider-controlled

location where direct services are provided.

new text end

new text begin

Subd. 3.

new text end

new text begin

Incomplete provider enrollment applications.

new text end

new text begin

The commissioner may deny

a provider's incomplete enrollment application if a provider fails to respond to the

commissioner's request for additional information within 60 days of the request.

new text end

new text begin

Subd. 4.

new text end

new text begin

Required background studies.

new text end

new text begin

(a) The commissioner must conduct a

background study under chapter 245C, including a review of databases in section 245C.08,

subdivision 1, paragraph (a), clauses (1) to (5), for a provider applying for enrollment under

section 256B.04, subdivision 21. The background study requirement may be satisfied if the

commissioner conducted a fingerprint-based background study on the provider that included

a review of databases in section 245C.08, subdivision 1, paragraph (a), clauses (1) to (5).

new text end

new text begin

(b) As a condition of enrollment in medical assistance, the commissioner must require

that a high-risk provider, or a person with a direct or indirect ownership interest in the

provider of five percent or higher, consent to criminal background checks, including

fingerprinting, when required to do so under state law or by a determination by the

commissioner or the Centers for Medicare and Medicaid Services (CMS) that a provider is

designated high-risk.

new text end

new text begin

Subd. 5.

new text end

new text begin

Surety bonds.

new text end

new text begin

(a) The commissioner may require a provider to purchase a

surety bond as a condition of initial enrollment, revalidation, reenrollment, reinstatement,

or continued enrollment if:

new text end

new text begin

(1) the provider fails to demonstrate financial viability;

new text end

new text begin

(2) the commissioner determines there is significant evidence of or potential for fraud

and abuse by the provider; or

new text end

new text begin

(3) the provider or category of providers is designated high-risk pursuant to subdivision

1 and Code of Federal Regulations, title 42, section 455.450.

new text end

new text begin

(b) The surety bond must be in an amount of $100,000 or ten percent of the provider's

payments from Medicaid during the immediately preceding 12 months, whichever is greater.

The surety bond must name the Department of Human Services as an obligee and must

allow for recovery of costs and fees in pursuing a claim on the bond.

new text end

new text begin

(c) This subdivision does not apply if the provider currently maintains a surety bond

under the requirements in section 256B.051, 256B.0659, 256B.0701, or 256B.85.

new text end

new text begin

Subd. 6.

new text end

new text begin

Required permission to conduct on-site inspection.

new text end

new text begin

As a condition of

enrollment in medical assistance, the commissioner shall require that a provider designated

moderate-risk or high-risk by CMS or the commissioner permit CMS, CMS's agents, or

CMS's designated contractors and the state agency, the state agency's agents, or the state

agency's designated contractors to conduct unannounced on-site inspections of any provider

location.

new text end

new text begin

Subd. 7.

new text end

new text begin

Compliance programs.

new text end

new text begin

(a) The commissioner may require, as a condition of

enrollment in medical assistance, that a provider within a particular industry sector or

category establish a compliance program that contains the core elements established by

CMS.

new text end

new text begin

(b) If an enrolled provider is required by the commissioner or by law to designate an

individual as the provider's compliance officer, the compliance officer must:

new text end

new text begin

(1) develop policies and procedures to ensure adherence to medical assistance laws and

regulations and to prevent inappropriate claims submissions;

new text end

new text begin

(2) train the employees of the provider entity and any agents or subcontractors of the

provider entity, including billers, on the policies and procedures under clause (1);

new text end

new text begin

(3) respond to allegations of improper conduct related to the provision or billing of

medical assistance services and implement action to remediate any resulting problems;

new text end

new text begin

(4) use evaluation techniques to monitor compliance with medical assistance laws and

regulations;

new text end

new text begin

(5) promptly report to the commissioner any identified violations of medical assistance

laws or regulations; and

new text end

new text begin

(6) within 60 days of discovery by the provider of a medical assistance reimbursement

overpayment, report the overpayment to the commissioner and make arrangements with

the commissioner for the commissioner's recovery of the overpayment.

new text end

new text begin

Subd. 8.

new text end

new text begin

Correspondence and notification.

new text end

new text begin

The commissioner may deliver

correspondence and notifications, including notifications of termination and other actions,

electronically to a provider's MN-ITS mailbox. This subdivision does not apply to

correspondence and notifications related to background studies.

new text end

Sec. 6.

new text begin

[256B.0441] PROVIDER REVALIDATION.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Provider revalidation schedule.

new text end

new text begin

The commissioner shall revalidate:

new text end

new text begin

(1) each provider at least once every five years;

new text end

new text begin

(2) each personal care assistance agency, community first services and supports (CFSS)

agency-provider, and CFSS financial management services provider at least once every

three years;

new text end

new text begin

(3) each early intensive developmental and behavioral intervention agency at least once

every three years; and

new text end

new text begin

(4) at the commissioner's discretion, any medical-assistance-only provider type the

commissioner deems high-risk under section 256B.044, subdivision 1.

new text end

new text begin

Subd. 2.

new text end

new text begin

Revalidation procedures.

new text end

new text begin

The commissioner shall conduct revalidation as

follows:

new text end

new text begin

(1) provide 30 days' notice of the revalidation due date including instructions for

revalidation and a list of materials the provider must submit;

new text end

new text begin

(2) if a provider fails to submit all required materials by the due date, notify the provider

of the deficiency within 30 days after the due date and allow the provider an additional 30

days from the notification date to comply; and

new text end

new text begin

(3) if a provider fails to remedy a deficiency within the 30-day time period, give 60 days'

notice of termination and immediately suspend the provider's ability to bill. The provider

does not have the right to appeal suspension of ability to bill.

new text end

Sec. 7.

new text begin

[256B.0442] PROVIDER ENROLLMENT SUSPENSIONS AND

TERMINATIONS.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Commissioner's general authority to suspend individual provider's

enrollment.

new text end

new text begin

(a) If a provider fails to comply with any individual provider requirement or

condition of participation, the commissioner may suspend the provider's ability to bill until

the provider comes into compliance.

new text end

new text begin

(b) The commissioner's decision to suspend the provider is not subject to an administrative

appeal.

new text end

new text begin

Subd. 2.

new text end

new text begin

Commissioner's authority to revoke enrollment of certain providers for

lack of documentation.

new text end

new text begin

(a) The commissioner may revoke the enrollment of an ordering

or rendering provider for a period of not more than one year, if the provider fails to maintain

and, upon request from the commissioner, provide access to documentation relating to

written orders or requests for payment for durable medical equipment, certifications for

home health services, or referrals for other items or services written or ordered by the

provider, when the commissioner has identified a pattern of a lack of documentation. A

pattern means a failure to maintain documentation or provide access to documentation on

more than one occasion.

new text end

new text begin

(b) Nothing in this subdivision limits the authority of the commissioner to sanction a

provider under section 256B.064.

new text end

new text begin

Subd. 3.

new text end

new text begin

Commissioner's duty to terminate provider enrollment.

new text end

new text begin

(a) Except as

provided in paragraph (b), the commissioner must terminate or deny the enrollment of any

individual or entity if the individual or entity has been terminated from participation in

Medicare or under the Medicaid program or Children's Health Insurance Program of any

other state.

new text end

new text begin

(b) The commissioner may exempt a rehabilitation agency from termination or denial

that would otherwise be required under paragraph (a), if the agency:

new text end

new text begin

(1) is unable to retain Medicare certification and enrollment solely due to a lack of billing

to the Medicare program;

new text end

new text begin

(2) meets all other applicable Medicare certification requirements based on an on-site

review completed by the commissioner of health; and

new text end

new text begin

(3) serves primarily a pediatric population.

new text end

new text begin

Subd. 4.

new text end

new text begin

Commissioner's authority to terminate provider enrollment for lack of

submitted claims.

new text end

new text begin

The commissioner may terminate the enrollment of an individual or

entity provider if the individual or entity provider has not submitted any claims in the

previous 12 consecutive calendar months.

new text end

Sec. 8.

new text begin

[256B.0443] PROVIDER PAYMENT WITHHOLDS.

new text end

new text begin

(a) If the commissioner or the Centers for Medicare and Medicaid Services designates

a provider type as high-risk under section 256B.044, subdivision 1, the commissioner may

withhold payment from providers within that category upon initial enrollment for a 90-day

period.

new text end

new text begin

(b) The withholding for each provider must begin on the date of the first submission of

a claim.

new text end

Sec. 9.

new text begin

[256B.0444] ADDITIONAL PROVIDER ENROLLMENT REQUIREMENTS

FOR SPECIFIC PROVIDER TYPES.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Durable medical equipment provider or supplier.

new text end

new text begin

(a) For purposes of

this subdivision, "durable medical equipment provider or supplier" means a medical supplier

that can purchase medical equipment or supplies for sale or rent to the general public and

is able to perform or arrange for necessary repairs to and maintenance of equipment offered

for sale or rent.

new text end

new text begin

(b) Upon initial enrollment, reenrollment, and notification of revalidation, all durable

medical equipment, prosthetics, orthotics, and supplies medical suppliers meeting the durable

medical equipment provider or supplier definition in paragraph (a), operating in Minnesota,

and receiving Medicaid money must purchase a surety bond that is annually renewed,

designates the Department of Human Services as the obligee, and is submitted in a form

approved by the commissioner. For purposes of this paragraph, the following medical

suppliers are not required to obtain a surety bond: a federally qualified health center, a home

health agency, the Indian Health Service, a pharmacy, and a rural health clinic.

new text end

new text begin

(c) At the time of initial enrollment or reenrollment, durable medical equipment providers

or suppliers defined in paragraph (a) must purchase a surety bond of $50,000. If a revalidating

provider's Medicaid revenue in the previous calendar year is up to and including $300,000,

the provider agency must purchase a surety bond of $50,000. If a revalidating provider's

Medicaid revenue in the previous calendar year is over $300,000, the provider agency must

purchase a surety bond of $100,000. The surety bond must allow for recovery of costs and

fees in pursuing a claim on the bond. Any action to obtain monetary recovery or sanctions

from a surety bond must occur within six years from the date the debt is affirmed by a final

agency decision. An agency decision is final when the right to appeal the debt has been

exhausted or the time to appeal has expired under section 256B.064.

new text end

new text begin

Subd. 2.

new text end

new text begin

Providers licensed by the commissioner of human services.

new text end

new text begin

An enrolled

provider that is also licensed by the commissioner under chapter 245A must designate an

individual as the licensee's compliance officer under section 256B.044, subdivision 7,

paragraph (b).

new text end

new text begin

Subd. 3.

new text end

new text begin

Providers licensed by the commissioner of health.

new text end

new text begin

An enrolled provider that

is also licensed by the commissioner of health as a home care provider under chapter 144A

with a home and community-based services designation under section 144A.484 on the

home care license, or as an assisted living facility under chapter 144G, must designate an

individual as the licensee's compliance officer under section 256B.044, subdivision 7,

paragraph (b).

new text end

Sec. 10.

Minnesota Statutes 2024, section 256B.057, subdivision 9, is amended to read:

Subd. 9.

Employed persons with disabilities.

(a) Medical assistance may be paid for

a person who is employed and who:

(1) but for excess earnings or assets meets the definition of disabled under the

Supplemental Security Income program; and

(2) pays a premium and other obligations under paragraph (d).

(b) For purposes of eligibility, there is a $65 earned income disregard. To be eligible

for medical assistance under this subdivision, a person must have more than $65 of earned

income, be receiving an unemployment insurance benefit under chapter 268 that the person

began receiving while eligible under this subdivision, or be receiving family and medical

leave benefits under chapter 268B that the person began receiving while eligible under this

subdivision. A person who is self-employed must file and pay all applicable taxes. Any

spousal income shall be disregarded for purposes of eligibility and premium determinations.

(c) After the month of enrollment, a person enrolled in medical assistance under this

subdivision who would otherwise be ineligible and be disenrolled due to one of the following

circumstances may retain eligibility for up to four consecutive months after a month of job

loss if the person:

(1) is temporarily unable to work and without receipt of earned income due to a medical

condition, as verified by a physician, advanced practice registered nurse, or physician

assistant; or

(2) loses employment for reasons not attributable to the enrollee, and is without receipt

of earned income.

To receive a four-month extension of continued eligibility under this paragraph, enrollees

must verify the medical condition or provide notification of job loss, continue to meet all

other eligibility requirements, and continue to pay all calculated premium costs.

(d) All enrollees must pay a premium to be eligible for medical assistance under this

subdivision, except as provided under clause (5).

(1) An enrollee must pay the greater of a $35 premium or the premium calculated based

on the person's gross earned and unearned income and the applicable family size using a

sliding fee scale established by the commissioner, which begins at one percent of income

at 100 percent of the federal poverty guidelines and increases to 7.5 percent of income for

those with incomes at or above 300 percent of the federal poverty guidelines.

(2) Annual adjustments in the premium schedule based upon changes in the federal

poverty guidelines shall be effective for premiums due in July of each year.

(3) All enrollees who receive unearned income must pay one-half of one percent of

unearned income in addition to the premium amount, except as provided under clause (5).

(4) Increases in benefits under title II of the Social Security Act shall not be counted as

income for purposes of this subdivision until July 1 of each year.

(5) Effective July 1, 2009, American Indians are exempt from paying premiums as

required by section 5006 of the American Recovery and Reinvestment Act of 2009, Public

Law 111-5. For purposes of this clause, an American Indian is any person who meets the

definition of Indian according to Code of Federal Regulations, title 42, section
447.50
.

(e) A person's eligibility and premium shall be determined by the local county agency.

Premiums must be paid to the commissioner. All premiums are dedicated to the

commissioner.

(f) Any required premium shall be determined at application and redetermined at the

enrollee's 12-month income review or when a change in income or household size is reported.

Enrollees must report any change in income or household size within 30 days of when the

change occurs. A decreased premium resulting from a reported change in income or

household size shall be effective the first day of the next available billing month after the

change is reported. Except for changes occurring from annual cost-of-living increases, a

change resulting in an increased premium shall not affect the premium amount until the

next 12-month review.

(g) Premium payment is due upon notification from the commissioner of the premium

amount required. Premiums may be paid in installments at the discretion of the commissioner.

(h) Nonpayment of the premium shall result in denial or termination of medical assistance

unless the person demonstrates good cause for nonpayment. "Good cause" means an excuse

for the enrollee's failure to pay the required premium when due because the circumstances

were beyond the enrollee's control or not reasonably foreseeable. The commissioner shall

determine whether good cause exists based on the weight of the supporting evidence

submitted by the enrollee to demonstrate good cause.
new text begin
The commissioner must not determine

that good cause exists for a month for which the premium has already been paid.
new text end
Except

when an installment agreement is accepted by the commissioner, all persons disenrolled

for nonpayment of a premium must pay any past due premiums as well as current premiums

due prior to being reenrolled. Nonpayment shall include payment with a returned, refused,

or dishonored instrument. The commissioner may require a guaranteed form of payment as

the only means to replace a returned, refused, or dishonored instrument.

(i) For enrollees whose income does not exceed 200 percent of the federal poverty

guidelines and who are also enrolled in Medicare, the commissioner shall reimburse the

enrollee for Medicare part B premiums under section
256B.0625, subdivision 15
, paragraph

(a).

(j) The commissioner is authorized to determine that a premium amount was calculated

or billed in error, make corrections to financial records and billing systems, and refund

premiums collected in error.

Sec. 11.

Minnesota Statutes 2024, section 256B.0625, subdivision 4, is amended to read:

Subd. 4.

Outpatient and physician-directed clinic services.

Medical assistance covers

outpatient hospital or physician-directed clinic services.
deleted text begin
The
deleted text end
new text begin
All services provided by
new text end

physician-directed clinic staff
deleted text begin
shall include at least two physicians and all services shall
deleted text end
new text begin

must
new text end
be
deleted text begin
provided
deleted text end
under the
deleted text begin
direct supervision
deleted text end
new text begin
direction
new text end
of a physician. Hospital outpatient

departments are subject to the same limitations and reimbursements as other enrolled vendors

for all services, except initial triage, emergency services, and services not provided or

immediately available in clinics, physicians' offices, or by other enrolled providers.

"Emergency services" means those medical services required for the immediate diagnosis

and treatment of medical conditions that, if not immediately diagnosed and treated, could

lead to serious physical or mental disability or death or are necessary to alleviate severe

pain. Neither the hospital, its employees, nor any physician or dentist, shall be liable in any

action arising out of a determination not to render emergency services or care if reasonable

care is exercised in determining the condition of the person, or in determining the

appropriateness of the facilities, or the qualifications and availability of personnel to render

these services consistent with this section.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective upon federal approval.

new text end

Sec. 12.

Minnesota Statutes 2025 Supplement, section 256B.0759, subdivision 4, is

amended to read:

Subd. 4.

Provider payment rates.

(a) Payment rates for participating providers must

be increased for services provided to medical assistance enrollees. To receive a rate increase,

participating providers must meet demonstration project requirements and provide evidence

of formal referral arrangements with providers delivering step-up or step-down levels of

care. Providers that have enrolled in the demonstration project but have not met the provider

standards under subdivision 3 as of July 1, 2022, are not eligible for a rate increase under

this subdivision until the date that the provider meets the provider standards in subdivision

3. Services provided from July 1, 2022, to the date that the provider meets the provider

standards under subdivision 3 shall be reimbursed at rates according to section
254B.0505,

subdivision 1
. Rate increases paid under this subdivision to a provider for services provided

between July 1, 2021, and July 1, 2022, are not subject to recoupment when the provider

is taking meaningful steps to meet demonstration project requirements that are not otherwise

required by law, and the provider provides documentation to the commissioner, upon request,

of the steps being taken.

(b) The commissioner may temporarily suspend payments to the provider according to

section
deleted text begin
256B.04, subdivision 21
, paragraph (d)
deleted text end
new text begin
256B.0442, subdivision 1
new text end
, if the provider

does not meet the requirements in paragraph (a). Payments withheld from the provider must

be made once the commissioner determines that the requirements in paragraph (a) are met.

(c) For outpatient individual and group substance use disorder services under section

254B.0505, subdivision 1
, clause (1), and adolescent treatment programs that are licensed

as outpatient treatment programs according to sections
245G.01
to
245G.18
, provided on

or after January 1, 2021, payment rates must be increased by 20 percent over the rates in

effect on December 31, 2020.

(d) Effective January 1, 2021, and contingent on annual federal approval, managed care

plans and county-based purchasing plans must reimburse providers of the substance use

disorder services meeting the criteria described in paragraph (a) who are employed by or

under contract with the plan an amount that is at least equal to the fee-for-service base rate

payment for the substance use disorder services described in paragraph (c). The commissioner

must monitor the effect of this requirement on the rate of access to substance use disorder

services and residential substance use disorder rates. Capitation rates paid to managed care

organizations and county-based purchasing plans must reflect the impact of this requirement.

This paragraph expires if federal approval is not received at any time as required under this

paragraph.

(e) Effective July 1, 2021, contracts between managed care plans and county-based

purchasing plans and providers to whom paragraph (d) applies must allow recovery of

payments from those providers if, for any contract year, federal approval for the provisions

of paragraph (d) is not received, and capitation rates are adjusted as a result. Payment

recoveries must not exceed the amount equal to any decrease in rates that results from this

provision.

(f) For substance use disorder services with medications for opioid use disorder under

section
254B.0505, subdivision 1
, clause (7), provided on or after January 1, 2021, payment

rates must be increased by 20 percent over the rates in effect on December 31, 2020. Upon

implementation of new rates according to section
254B.121
, the 20 percent increase will

no longer apply.

Sec. 13.

Minnesota Statutes 2025 Supplement, section 256B.0949, subdivision 16, is

amended to read:

Subd. 16.

Agency duties.

(a) An agency delivering an EIDBI service under this section

must:

(1) enroll as a medical assistance Minnesota health care program provider according to

Minnesota Rules, part
9505.0195
, and
deleted text begin
section
256B.04, subdivision 21
deleted text end
new text begin
sections 256B.044

to 256B.0444
new text end
, and meet all applicable provider standards and requirements;

(2) designate an individual as the agency's compliance officer who must perform the

duties described in section
deleted text begin
256B.04, subdivision 21
, paragraph (g)
deleted text end
new text begin
256B.044, subdivision

7, paragraph (b)
new text end
;

(3) demonstrate compliance with federal and state laws for the delivery of and billing

for EIDBI service;

(4) verify and maintain records of a service provided to the person or the person's legal

representative as required under Minnesota Rules, parts
9505.2175
and
9505.2197
;

(5) demonstrate that while enrolled or seeking enrollment as a Minnesota health care

program provider the agency did not have a lead agency contract or provider agreement

discontinued because of a conviction of fraud; or did not have an owner, board member, or

manager fail a state or federal criminal background check or appear on the list of excluded

individuals or entities maintained by the federal Department of Human Services Office of

Inspector General;

(6) have established business practices including written policies and procedures, internal

controls, and a system that demonstrates the organization's ability to deliver quality EIDBI

services, appropriately submit claims, conduct required staff training, document staff

qualifications, document service activities, and document service quality;

(7) have an office located in Minnesota or a border state;

(8) initiate a background study as required under subdivision 16a;

(9) report maltreatment according to section
626.557
and chapter 260E;

(10) comply with any data requests consistent with the Minnesota Government Data

Practices Act, sections
256B.064
and
256B.27
;

(11) provide training for all agency staff on the requirements and responsibilities listed

in the Maltreatment of Minors Act, chapter 260E, and the Vulnerable Adult Protection Act,

section
626.557
, including mandated and voluntary reporting, nonretaliation, and the agency's

policy for all staff on how to report suspected abuse and neglect;

(12) have a written policy to resolve issues collaboratively with the person and the

person's legal representative when possible. The policy must include a timeline for when

the person and the person's legal representative will be notified about issues that arise in

the provision of services;

(13) provide the person's legal representative with prompt notification if the person is

injured while being served by the agency. An incident report must be completed by the

agency staff member in charge of the person. A copy of all incident and injury reports must

remain on file at the agency for at least five years from the report of the incident;

(14) before starting a service, provide the person or the person's legal representative a

description of the treatment modality that the person shall receive, including the staffing

certification levels and training of the staff who shall provide a treatment;

(15) provide clinical supervision for a minimum of one hour for every 16 hours of direct

treatment per person, unless otherwise authorized in the person's individual treatment plan;

and

(16) provide required EIDBI intervention observation and direction at least once per

month. Notwithstanding subdivision 13, paragraph (l), required EIDBI intervention

observation and direction under this clause may be conducted via telehealth provided that

no more than two consecutive monthly required EIDBI intervention observation and direction

sessions under this clause are conducted via telehealth.

(b) Upon request of the commissioner, an agency delivering services under this section

must:

(1) identify the agency's controlling individuals, as defined under section
245A.02,

subdivision 5a
;

(2) provide disclosures of the use of billing agencies and other consultants who do not

provide EIDBI services; and

(3) provide copies of any contracts with consultants or independent contractors who do

not provide EIDBI services, including hours contracted and responsibilities.

(c) When delivering the ITP, and annually thereafter, an agency must provide the person

or the person's legal representative with:

(1) a written copy and a verbal explanation of the person's or person's legal

representative's rights and the agency's responsibilities;

(2) documentation in the person's file the date that the person or the person's legal

representative received a copy and explanation of the person's or person's legal

representative's rights and the agency's responsibilities; and

(3) reasonable accommodations to provide the information in another format or language

as needed to facilitate understanding of the person's or person's legal representative's rights

and the agency's responsibilities.

Sec. 14.

Minnesota Statutes 2024, section 256B.0949, subdivision 17, is amended to read:

Subd. 17.

Provider shortage; authority for exceptions.

(a) In consultation with the

Early Intensive Developmental and Behavioral Intervention Advisory Council and

stakeholders, including agencies, professionals, parents of people with ASD or a related

condition, and advocacy organizations, the commissioner shall determine if a shortage of

EIDBI providers exists. For the purposes of this subdivision, "shortage of EIDBI providers"

means a lack of availability of providers who meet the EIDBI provider qualification

requirements under subdivision 15 that results in the delay of access to timely services under

this section, or that significantly impairs the ability of a provider agency to have sufficient

providers to meet the requirements of this section. The commissioner shall consider

geographic factors when determining the prevalence of a shortage. The commissioner may

determine that a shortage exists only in a specific region of the state, multiple regions of

the state, or statewide. The commissioner shall also consider the availability of various types

of treatment modalities covered under this section.

(b) The commissioner, in consultation with the Early Intensive Developmental and

Behavioral Intervention Advisory Council and stakeholders, must establish processes and

criteria for granting an exception under this paragraph. The commissioner may grant an

exception only if the exception would not compromise a person's safety and not diminish

the effectiveness of the treatment. The commissioner may establish an expiration date for

an exception granted under this paragraph. The commissioner may grant an exception for

the following:

(1) EIDBI provider qualifications under this section;

(2) medical assistance provider enrollment requirements under
deleted text begin
section
256B.04
,

subdivision 21
deleted text end
new text begin
sections 256B.044 to 256B.0444
new text end
; or

(3) EIDBI provider or agency standards or requirements.

(c) If the commissioner, in consultation with the Early Intensive Developmental and

Behavioral Intervention Advisory Council and stakeholders, determines that a shortage no

longer exists, the commissioner must submit a notice that a shortage no longer exists to the

chairs and ranking minority members of the senate and the house of representatives

committees with jurisdiction over health and human services. The commissioner must post

the notice for public comment for 30 days. The commissioner shall consider public comments

before submitting to the legislature a request to end the shortage declaration. The

commissioner shall not declare the shortage of EIDBI providers ended without direction

from the legislature to declare it ended.

Sec. 15.

Minnesota Statutes 2024, section 256L.05, subdivision 3, is amended to read:

Subd. 3.

Effective date of coverage.

(a) The effective date of coverage is the first day

of the month following the month in which eligibility is approved and the first premium

payment has been received. The effective date of coverage for new members added to the

family is the first day of the month following the month in which the change is reported.

All eligibility criteria must be met by the family at the time the new family member is added.

The income of the new family member is included with the family's modified adjusted gross

income and the adjusted premium begins in the month the new family member is added.

(b) The initial premium must be received by the last working day of the month for

coverage to begin the first day of the following month.

(c) Notwithstanding any other law to the contrary, benefits under sections
256L.01
to

256L.18
are secondary to a plan of insurance or benefit program under which an eligible

person may have coverage and the commissioner shall use cost avoidance techniques to

ensure coordination of any other health coverage for eligible persons. The commissioner

shall identify eligible persons who may have coverage or benefits under other plans of

insurance or who become eligible for medical assistance.

(d) The effective date of coverage for individuals or families who are exempt from

paying premiums under section
256L.15
,
deleted text begin
subdivision
deleted text end
new text begin
subdivisions
new text end
1
deleted text begin
, paragraph (c)
deleted text end
new text begin
and 2
new text end
,

is the first day of the month following the month in which eligibility is approved.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 16.

Minnesota Statutes 2024, section 256L.06, subdivision 3, is amended to read:

Subd. 3.

Commissioner's duties and payment.

(a) Premiums are dedicated to the

commissioner for MinnesotaCare.

(b) The commissioner shall develop and implement procedures to: (1) require enrollees

to report changes in income; (2) adjust sliding scale premium payments, based upon both

increases and decreases in enrollee income, at the time the change in income is reported;

and (3) disenroll enrollees from MinnesotaCare for failure to pay required premiums. Failure

to pay includes payment with a dishonored check, a returned automatic bank withdrawal,

or a refused credit card or debit card payment. The commissioner may demand a guaranteed

form of payment, including a cashier's check or a money order, as the only means to replace

a dishonored, returned, or refused payment.

(c) Premiums are calculated on a calendar month basis and may be paid on a monthly,

quarterly, or semiannual basis, with the first payment due upon notice from the commissioner

of the premium amount required. The commissioner shall inform applicants and enrollees

of these premium payment options. Premium payment is required before enrollment is

complete and to maintain
deleted text begin
eligibility
deleted text end
new text begin
coverage
new text end
in MinnesotaCare. Premium payments received

before noon are credited the same day. Premium payments received after noon are credited

on the next working day.

(d) Nonpayment of the premium will result in disenrollment from the plan effective for

the calendar month following the month for which the premium was due. Persons disenrolled

for nonpayment may not reenroll prior to the first day of the month following the payment

of an amount equal to
deleted text begin
two months' premiums
deleted text end
new text begin
one monthly premium
new text end
.

(e) The commissioner shall forgive the past-due premium for persons disenrolled under

paragraph (d) prior to issuing a premium invoice for the
deleted text begin
fourth
deleted text end

new text begin
next
new text end
month
deleted text begin
following

disenrollment
deleted text end
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 17.

Laws 2024, chapter 125, article 4, section 12, subdivision 5, is amended to read:

Subd. 5.

Report.

By
deleted text begin
December 15, 2025
deleted text end
new text begin
November 30, 2026
new text end
, the commissioner must

provide a summary report on the pilot program to the chairs and ranking minority members

of the legislative committees with jurisdiction over mental health and county correctional

facilities.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective retroactively from December 15, 2025.

new text end

ARTICLE 4

HOUSING AND ECONOMIC SUPPORTS

Section 1.

Minnesota Statutes 2024, section 245.991, subdivision 3, is amended to read:

Subd. 3.

Allowable grant activities.

Grantees must provide homeless outreach and case

management services. Projects may provide clinical assessment, habilitation and rehabilitation

services, community mental health services, substance use disorder treatment, housing

transition and sustaining services, or direct assistance funding. Services must be provided

to individuals with a serious mental illness,
new text begin
substance use disorder,
new text end
or
deleted text begin
with a
deleted text end
co-occurring

substance use disorder
deleted text begin
, and
deleted text end
who are homeless or at imminent risk of homelessness.

Individuals receiving homeless outreach services may be presumed eligible until a serious

mental illness can be verified.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2026.

new text end

Sec. 2.

Minnesota Statutes 2024, section 245.992, subdivision 2, is amended to read:

Subd. 2.

Eligible beneficiaries.

Program activities must be provided to people with a

serious mental illness,
new text begin
substance use disorder,
new text end
or
deleted text begin
with a
deleted text end
co-occurring substance use disorder
deleted text begin
,
deleted text end

who meet homeless criteria determined by the commissioner.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2026.

new text end

Sec. 3.

Minnesota Statutes 2024, section 256D.05, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

(a) Each assistance unit with income and resources less than

the standard of assistance established by the commissioner and with a member who is a

resident of the state shall be eligible for and entitled to general assistance if the assistance

unit is:

(1) a person who is suffering from a professionally certified permanent or temporary

illness, injury, or incapacity which is expected to continue for more than 45 days and which

prevents the person from obtaining or retaining employment;

(2) a person whose presence in the home on a substantially continuous basis is required

because of the professionally certified illness, injury, incapacity, or the age of another

member of the household;

(3) a person who has been placed in, and is residing in, a licensed or certified facility

for purposes of physical or mental health or rehabilitation, or in an approved substance use

disorder domiciliary facility, if the placement is based on illness or incapacity and is

according to a plan developed or approved by the county agency through its director or

designated representative;

(4) a person not described in clause (1) or (3) who is diagnosed by a licensed physician,

psychological practitioner, or other qualified professional, as developmentally disabled or

mentally ill, and that condition prevents the person from obtaining or retaining employment;

(5) a person who has an application pending for, or is appealing termination of benefits

from, the Social Security disability program or the program of Supplemental Security Income

for the aged, blind, and disabled, provided the person has a professionally certified permanent

or temporary illness, injury, or incapacity which is expected to continue for more than 30

days and which prevents the person from obtaining or retaining employment;

(6) a person who is unable to obtain or retain employment because advanced age

significantly affects the person's ability to seek or engage in substantial work;

(7) a person who has been assessed by a vocational specialist and, in consultation with

the county agency, has been determined to be unemployable for purposes of this clause; a

person is considered employable if there exist positions of employment in the local labor

market, regardless of the current availability of openings for those positions, that the person

is capable of performing. The person's eligibility under this category must be reassessed at

least annually. The county agency must provide notice to the person not later than 30 days

before annual eligibility under this item ends, informing the person of the date annual

eligibility will end and the need for vocational assessment if the person wishes to continue

eligibility under this clause. For purposes of establishing eligibility under this clause, it is

the applicant's or recipient's duty to obtain any needed vocational assessment;

(8) a person who is determined by the county agency, according to permanent rules

adopted by the commissioner, to have a condition that qualifies under Minnesota's special

education rules as a specific learning disability, provided that a rehabilitation plan for the

person is developed or approved by the county agency, and the person is following the plan;

(9) a child under the age of 18 who is not living with a parent, stepparent, or legal

custodian, and only if: the child is legally emancipated or living with an adult with the

consent of an agency acting as a legal custodian; the child is at least 16 years of age and the

general assistance grant is approved by the director of the county agency or a designated

representative as a component of a social services case plan for the child; or the child is

living with an adult with the consent of the child's legal custodian and the county agency.

For purposes of this clause, "legally emancipated" means a person under the age of 18 years

who: (i) has been married; (ii) is on active duty in the uniformed services of the United

States; (iii) has been emancipated by a court of competent jurisdiction; or (iv) is otherwise

considered emancipated under Minnesota law, and for whom county social services has not

determined that a social services case plan is necessary, for reasons other than the child has

failed or refuses to cooperate with the county agency in developing the plan;

(10) a person who is eligible for displaced homemaker services, programs, or assistance

under section
116L.96
, but only if that person is enrolled as a full-time student;

(11) a person who is involved with protective or court-ordered services that prevent the

applicant or recipient from working at least four hours per day;

(12) a person over age 18 whose primary language is not English and who is attending

high school at least half time; or

(13) a person whose alcohol and drug addiction is a material factor that contributes to

the person's disability
deleted text begin
; applicants who assert this clause as a basis for eligibility must be

assessed by the county agency to determine if they are amenable to treatment; if the applicant

is determined to be not amenable to treatment, but is otherwise eligible for benefits, then

general assistance must be paid in vendor form, for the individual's shelter costs up to the

limit of the grant amount, with the residual, if any, paid according to section
256D.09,

subdivision 2a
; if the applicant is determined to be amenable to treatment, then in order to

receive benefits, the applicant must be in a treatment program or on a waiting list and the

benefits must be paid in vendor form, for the individual's shelter costs, up to the limit of

the grant amount, with the residual, if any, paid according to section
256D.09, subdivision

2a
deleted text end
.

(b) As a condition of eligibility under paragraph (a), clauses (1), (3), (4), (7), and (8),

the recipient must complete an interim assistance agreement and must apply for other

maintenance benefits as specified in section
256D.06, subdivision 5
, and must comply with

efforts to determine the recipient's eligibility for those other maintenance benefits.

(c) The burden of providing documentation for a county agency to use to verify eligibility

for general assistance or for exemption from the Supplemental Nutrition Assistance Program

(SNAP) employment and training program is upon the applicant or recipient. The county

agency shall use documents already in its possession to verify eligibility, and shall help the

applicant or recipient obtain other existing verification necessary to determine eligibility

which the applicant or recipient does not have and is unable to obtain.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 4.

Minnesota Statutes 2024, section 256D.06, subdivision 2, is amended to read:

Subd. 2.

Emergency need.

(a) Notwithstanding the provisions of subdivision 1, a grant

of emergency general assistance shall, to the extent funds are available, be made to an

eligible single adult, married couple, or family for an emergency need where the recipient

requests temporary assistance not exceeding 30 days if an emergency situation appears to

exist under written criteria adopted by the county agency
new text begin
and provided to the commissioner

annually
new text end
. If an applicant or recipient relates facts to the county agency which may be

sufficient to constitute an emergency situation, the county agency shall, to the extent funds

are available, advise the person of the procedure for applying for assistance according to

this subdivision.

(b) The applicant must be ineligible for assistance under chapter 142G, must have annual

net income no greater than 200 percent of the federal poverty guidelines for the previous

calendar year, and may receive an emergency assistance grant not more than once in any

12-month period.

(c) Funding for an emergency general assistance program is limited to the appropriation.

Each fiscal year, the commissioner shall allocate to counties the money appropriated for

emergency general assistance grants based on each county agency's average share of state's

emergency general expenditures for the immediate past three fiscal years as determined by

the commissioner, and may reallocate any unspent amounts to other counties. No county

shall be allocated less than $1,000 for a fiscal year.

(d) Any emergency general assistance expenditures by a county above the amount of

the commissioner's allocation to the county must be made from county funds.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective August 1, 2026.

new text end

Sec. 5.

Minnesota Statutes 2024, section 256D.54, subdivision 1, is amended to read:

Subdivision 1.

Potential eligibility.

An applicant or recipient who is otherwise eligible

for supplemental aid and who is potentially eligible for maintenance benefits from any other

source shall (1) apply for those benefits within
deleted text begin
30
deleted text end
new text begin
90
new text end
days of the county's determination of

potential eligibility for those benefits; and (2) execute an interim assistance authorization

agreement on a form as directed by the commissioner.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 6.

Minnesota Statutes 2024, section 256I.04, subdivision 2b, is amended to read:

Subd. 2b.

Housing support agreements.

(a) Agreements between agencies and providers

of housing support must be in writing on a form developed and approved by the commissioner

and must specify the name and address under which the establishment subject to the

agreement does business and under which the establishment, or service provider, if different

from the establishment, is licensed by the Department of Health or the Department of Human

Services; the specific license or registration from the Department of Health or the Department

of Human Services held by the provider and the number of beds subject to that license; the

address of the location or locations at which housing support is provided under this

agreement; the per diem and monthly rates that are to be paid from housing support funds

for each eligible resident at each location; the number of beds at each location which are

subject to the agreement; whether the license holder is a not-for-profit corporation under

section 501(c)(3) of the Internal Revenue Code; and a statement that the agreement is subject

to the provisions of sections
256I.01
to
256I.06
and subject to any changes to those sections.

(b) Providers are required to verify the following minimum requirements in the

agreement:

(1) current license or registration, including authorization if managing or monitoring

medications;

(2) all staff who have direct contact with recipients meet the staff qualifications;

(3) the provision of housing support;

(4) the provision of supplementary services, if applicable;

(5) reports of adverse events, including recipient death or serious injury;

(6) submission of residency requirements that could result in recipient eviction; and

(7) confirmation that the provider will not limit or restrict the number of hours an

applicant or recipient chooses to be employed, as specified in subdivision 5.

(c) Agreements may be terminated with or without cause by the commissioner, the

agency, or the provider with two calendar months prior notice. The commissioner may

immediately terminate an agreement under subdivision 2d.

new text begin

(d) Agencies must develop and make available to prospective housing support providers

a process by which the agency seeks, reviews, and approves housing support agreements

and must report processes and results to the commissioner in a format defined by the

commissioner.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2026.

new text end

Sec. 7.

Minnesota Statutes 2024, section 256K.46, subdivision 5, is amended to read:

Subd. 5.

Reporting.

Grant recipients shall report annually on the use of shelter-linked

youth mental health grants to the commissioner by December 31, beginning in 2020. Each

report shall include the name and location of the grant recipient, the amount of each grant,

the youth mental health services provided, and the number of youth receiving services. The

commissioner shall determine the form required for the reports and may specify additional

reporting requirements.
deleted text begin
The commissioner shall include the shelter-linked youth mental

health services program in the biennial report required under section
256K.45, subdivision

2.
deleted text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 8.
new text begin
REPEALER.
new text end

new text begin

Minnesota Statutes 2024, sections 256D.09, subdivisions 2a and 2b; and 256K.45,

subdivision 2,

new text end

new text begin

are repealed.

new text end

ARTICLE 5

OFFICE OF THE INSPECTOR GENERAL

Section 1.

Minnesota Statutes 2024, section 13A.03, is amended by adding a subdivision

to read:

new text begin

Subd. 2a.

new text end

new text begin

Exception.

new text end

new text begin

Law enforcement may delay notification under section 13A.02,

subdivision 3, or authorize another government authority to delay notification to a customer

without a court order if law enforcement determines in writing that notification would

compromise the integrity of a current and ongoing criminal investigation. The written

determination from law enforcement must be renewed every 90 days.

new text end

Sec. 2.

Minnesota Statutes 2024, section 245.095, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) For purposes of this section, the following definitions have the

meanings given.

(b) "Associated entity" means a provider or vendor owned or controlled by an excluded

individual.

(c) "Associated individual" means an individual or entity that has a relationship with

the business or its owners or controlling individuals, such that the individual or entity would

have knowledge of the financial practices of the program in question.

new text begin

(d) "Convicted" means a judgment of conviction has been entered by a federal, state, or

local court, regardless of whether an appeal from the judgment is pending, and includes a

stay of adjudication, a court-ordered diversion program, or a plea of guilty or nolo contendere.

new text end

new text begin

(e) "Credible allegation of fraud" means an allegation that has been verified by the

commissioner from any source, including but not limited to:

new text end

new text begin

(1) fraud hotline complaints;

new text end

new text begin

(2) claims data mining;

new text end

new text begin

(3) patterns identified through provider audits, civil false claims cases, and law

enforcement investigations; and

new text end

new text begin

(4) court filings and other legal documents, including but not limited to police reports,

complaints, indictments, informations, affidavits, declarations, and search warrants.

new text end

deleted text begin

(d)
deleted text end
new text begin
(f)
new text end
"Excluded" means removed under other authorities from a program administered

by a Minnesota state or federal agency
deleted text begin
, including
deleted text end
new text begin
. Excluded includes but is not limited to:
new text end

new text begin

(1)
new text end
a final determination to stop payments
deleted text begin
.
deleted text end
new text begin
;
new text end

new text begin

(2) a conclusive background study disqualification, except for a disqualification issued

under section 245C.15, subdivision 4c, that has not been set aside or had a variance granted

under section 245C.15; and

new text end

new text begin

(3) a final agency decision regarding a denial of a license application.

new text end

new text begin

(g) "Fraud" has the meaning given in section 256B.02, subdivision 20.

new text end

deleted text begin

(e)
deleted text end
new text begin
(h)
new text end
"Individual" means a natural person providing products or services as a provider

or vendor.

deleted text begin

(f)
deleted text end
new text begin
(i)
new text end
"Provider" means any entity, individual, owner, controlling individual, license

holder, director, or managerial official of an entity receiving payment from a program

administered by a Minnesota state or federal agency.

Sec. 3.

Minnesota Statutes 2024, section 245.095, subdivision 5, is amended to read:

Subd. 5.

Withholding of payments.

(a) Except as otherwise provided by state or federal

law, the commissioner may withhold payments to a provider, vendor, individual, associated

individual, or associated entity in any program administered by the commissioner if the

commissioner determines
new text begin
:
new text end

new text begin

(1)
new text end
there is a credible allegation of fraud for which an investigation is pending for a

program administered by a Minnesota state or federal agency
deleted text begin
.
deleted text end
new text begin
;
new text end

new text begin

(2) the individual, the entity, or an associated individual or entity was convicted of a

crime, in state or federal court, for an offense that involves fraud or theft against a program

administered by the commissioner or another state or federal agency;

new text end

new text begin

(3) the provider is operating after a state or federal agency orders the suspension,

revocation, or decertification of the provider's license or certification, or if the provider is

subject to a temporary immediate suspension, regardless of whether the action is under

appeal; or

new text end

new text begin

(4) the provider, vendor, individual, associated individual, or associated entity, including

those receiving funds under any contract or registered program, has a background study

disqualification under section 245C.15, subdivisions 1 to 4b, that has not been set aside and

for which no variance has been issued.

new text end

deleted text begin

(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation

that has been verified by the commissioner from any source, including but not limited to:

deleted text end

deleted text begin

(1) fraud hotline complaints;

deleted text end

deleted text begin

(2) claims data mining;

deleted text end

deleted text begin

(3) patterns identified through provider audits, civil false claims cases, and law

enforcement investigations; and

deleted text end

deleted text begin

(4) court filings and other legal documents, including but not limited to police reports,

complaints, indictments, informations, affidavits, declarations, and search warrants.

deleted text end

deleted text begin

(c)
deleted text end
new text begin
(b)
new text end
The commissioner must send notice of the withholding of payments within five

days of taking such action. The notice must:

(1) state that payments are being withheld according to this subdivision;

(2) set forth the general allegations related to the withholding action, except the notice

need not disclose specific information concerning an ongoing investigation;

(3) state that the withholding is for a temporary period and cite the circumstances under

which the withholding will be terminated; and

(4) inform the provider, vendor, individual, associated individual, or associated entity

of the right to submit written evidence to contest the withholding action for consideration

by the commissioner.

deleted text begin

(d)
deleted text end
new text begin
(c)
new text end
If the commissioner withholds payments under this subdivision, the provider,

vendor, individual, associated individual, or associated entity has a right to request

administrative reconsideration. A request for administrative reconsideration must be made

in writing, state with specificity the reasons the payment withholding decision is in error,

and include documents to support the request. Within 60 days from receipt of the request,

the commissioner shall judiciously review allegations, facts, evidence available to the

commissioner, and information submitted by the provider, vendor, individual, associated

individual, or associated entity to determine whether the payment withholding should remain

in place.

deleted text begin

(e)
deleted text end
new text begin
(d)
new text end
The commissioner shall stop withholding payments if the commissioner determines

there is insufficient evidence of fraud by the provider, vendor, individual, associated

individual, or associated entity or when legal proceedings relating to the alleged fraud are

completed, unless the commissioner has sent notice under subdivision 3 to the provider,

vendor, individual, associated individual, or associated entity.

deleted text begin

(f)
deleted text end
new text begin
(e)
new text end
The withholding of payments
new text begin
under this section
new text end
is a temporary action and is not

subject to appeal under section
256.045
or chapter 14.

new text begin

(f) Section 15.013 does not apply to the commissioner taking action under this section.

new text end

Sec. 4.

Minnesota Statutes 2024, section 245A.02, subdivision 13, is amended to read:

Subd. 13.

Individual who is related.

"Individual who is related" means a spouse, a

parent, a birth or adopted child or stepchild, a stepparent, a stepbrother, a stepsister, a niece,

a nephew, an adoptive parent, a grandparent, a sibling, an aunt, an uncle,
new text begin
a cousin,
new text end
or a legal

guardian
new text begin
, including an individual who has a relationship named in this subdivision through

marriage
new text end
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2026.

new text end

Sec. 5.

Minnesota Statutes 2025 Supplement, section 245A.03, subdivision 2, is amended

to read:

Subd. 2.

Exclusion from licensure.

(a) This chapter does not apply to:

(1) residential or nonresidential programs that are provided to a person by an individual

who is related;

(2) nonresidential programs that are provided by an unrelated individual to persons from

a single related family;

(3) residential or nonresidential programs that are provided to adults who do not misuse

substances or have a substance use disorder, a mental illness, a developmental disability, a

functional impairment, or a physical disability;

(4) sheltered workshops or work activity programs that are certified by the commissioner

of employment and economic development;

(5) programs operated by a public school for children 33 months or older;

(6) nonresidential programs primarily for children that provide care or supervision for

periods of less than three hours a day while the child's parent or legal guardian is in the

same building as the nonresidential program or present within another building that is

directly contiguous to the building in which the nonresidential program is located;

(7) nursing homes or hospitals licensed by the commissioner of health except as specified

under section
245A.02
;

(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;

(9) programs licensed by the commissioner of corrections;

(10) recreation programs for children or adults that are operated or approved by a park

and recreation board whose primary purpose is to provide social and recreational activities;

(11) noncertified boarding care homes unless they provide services for five or more

persons whose primary diagnosis is mental illness or a developmental disability;

(12) programs for children such as scouting, boys clubs, girls clubs, and sports and art

programs, and nonresidential programs for children provided for a cumulative total of less

than 30 days in any 12-month period;

(13) residential programs for persons with mental illness, that are located in hospitals;

(14) camps licensed by the commissioner of health under Minnesota Rules, chapter

4630;

(15) mental health outpatient services for adults with mental illness or children with

mental illness;

(16) residential programs serving school-age children whose sole purpose is cultural or

educational exchange, until the commissioner adopts appropriate rules;

(17) community support services programs as defined in section
245.462, subdivision

6
, and family community support services as defined in section
245.4871, subdivision 17
;

(18) assisted living facilities licensed by the commissioner of health under chapter 144G;

(19) substance use disorder treatment activities of licensed professionals in private

practice as defined in section
245G.01, subdivision 17
;

(20) consumer-directed community support service funded under the Medicaid waiver

for persons with developmental disabilities when the individual who provided the service

is:

(i) the same individual who is the direct payee of these specific waiver funds or paid by

a fiscal agent, fiscal intermediary, or employer of record; and

(ii) not otherwise under the control of a residential or nonresidential program that is

required to be licensed under this chapter when providing the service;

(21) a county that is an eligible vendor under section
254B.0501
to provide care

coordination and comprehensive assessment services;

(22) a recovery community organization that is an eligible vendor under section

254B.0501
to provide peer recovery support services; or

(23) programs licensed by the commissioner of children, youth, and families in chapter

142B.

(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.

(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.

new text begin

(d) Notwithstanding section 245A.02, subdivision 13, programs initially licensed prior

to July 1, 2026, may continue to operate under the definition of related individual in

Minnesota Statutes 2024, section 245A.02, subdivision 13, until the service recipient related

to the license holder by marriage or as a cousin is no longer receiving services licensed

under this chapter.

new text end

Sec. 6.

Minnesota Statutes 2024, section 245A.043, subdivision 2, is amended to read:

Subd. 2.

Change in ownership.

deleted text begin
(a)
deleted text end
If the commissioner determines that there is a change

in ownership, the commissioner shall require submission of a new license application. This

subdivision does not apply to a licensed program or service located in a home where the

license holder resides. A change in ownership occurs when:

(1)
deleted text begin
except as provided in paragraph (b),
deleted text end
the license holder sells or transfers 100 percent

of the property, stock, or assets;

(2) the license holder merges with another organization;

(3) the license holder consolidates with two or more organizations, resulting in the

creation of a new organization;

(4) there is a change to the federal tax identification number associated with the license

holder; or

(5)
deleted text begin
except as provided in paragraph (b),
deleted text end
all controlling individuals for the original license

have changed.

deleted text begin

(b) For changes under paragraph (a), clause (1) or (5), no change in ownership has

occurred and a new license application is not required if at least one controlling individual

has been affiliated as a controlling individual for the license for at least the previous 12

months immediately preceding the change.

deleted text end

Sec. 7.

Minnesota Statutes 2025 Supplement, section 245A.043, subdivision 2a, is amended

to read:

Subd. 2a.

Review of change in ownership.

deleted text begin
(a)
deleted text end
After a change in ownership under

subdivision 2,
deleted text begin
paragraph (a),
deleted text end
the commissioner may complete a review for all new license

holders within 12 months after the new license is issued.

deleted text begin

(b) For all license holders subject to the exception in subdivision 2, paragraph (b), the

license holder must notify the commissioner of the date of the change in controlling

individuals pursuant to section
245A.04, subdivision 7a
, and the commissioner may complete

a review within 12 months following the change.

deleted text end

Sec. 8.

Minnesota Statutes 2024, section 245A.07, subdivision 2a, is amended to read:

Subd. 2a.

Immediate suspension expedited hearing.

(a) Within five working days of

receipt of the license holder's timely appeal, the commissioner shall request assignment of

an administrative law judge. The request must include a proposed date, time, and place of

a hearing. A hearing must be conducted by an administrative law judge within 30 calendar

days of the request for assignment, unless an extension is requested by either party and

granted by the administrative law judge for good cause. The commissioner shall issue a

notice of hearing by certified mail or personal service at least ten working days before the

hearing. The scope of the hearing shall be limited solely to the issue of whether the temporary

immediate suspension should remain in effect pending the commissioner's final order under

section
245A.08
, regarding a licensing sanction issued under subdivision 3 following the

immediate suspension. For suspensions under subdivision 2, paragraph (a), clause (1), the

burden of proof in expedited hearings under this subdivision
deleted text begin
shall be limited to
deleted text end
new text begin
is met only

if
new text end
the
deleted text begin
commissioner's demonstration
deleted text end
new text begin
commissioner demonstrates
new text end
that reasonable cause exists

to believe that the license holder's
new text begin
or controlling individual's
new text end
actions or failure to comply

with applicable law or rule poses, or the actions of other individuals or conditions in the

program poses an imminent risk of harm to the health, safety, or rights of persons served

by the program. "Reasonable cause" means there exist specific articulable facts or

circumstances which provide the commissioner with a reasonable suspicion that there is an

imminent risk of harm to the health, safety, or rights of persons served by the program.

When the commissioner has determined there is reasonable cause to order the temporary

immediate suspension of a license based on a violation of safe sleep requirements, as defined

in section
245A.1435
, the commissioner is not required to demonstrate that an infant died

or was injured as a result of the safe sleep violations. For suspensions under subdivision 2,

paragraph (a), clause (2), the burden of proof in expedited hearings under this subdivision
deleted text begin

shall be limited to
deleted text end
new text begin
is met only if
new text end
the
deleted text begin
commissioner's demonstration
deleted text end
new text begin
commissioner

demonstrates
new text end
by a preponderance of the evidence that, since the license was revoked, the

license holder committed additional violations of law or rule which may adversely affect

the health or safety of persons served by the program.

(b) The administrative law judge shall issue findings of fact, conclusions, and a

recommendation within ten working days from the date of hearing. The parties shall have

ten calendar days to submit exceptions to the administrative law judge's report. The record

shall close at the end of the ten-day period for submission of exceptions. The commissioner's

final order shall be issued within ten working days from the close of the record. When an

appeal of a temporary immediate suspension is withdrawn or dismissed, the commissioner

shall issue a final order affirming the temporary immediate suspension within ten calendar

days of the commissioner's receipt of the withdrawal or dismissal. Within 90 calendar days

after an immediate suspension has been issued and the license holder has not submitted a

timely appeal under subdivision 2, paragraph (b), or within 90 calendar days after a final

order affirming an immediate suspension, the commissioner shall determine:

(1) whether a final licensing sanction shall be issued under subdivision 3, paragraph (a),

clauses (1) to
deleted text begin
(6)
deleted text end
new text begin
(5)
new text end
. The license holder shall continue to be prohibited from operation of

the program during this 90-day period; or

(2) whether the outcome of related, ongoing investigations or judicial proceedings are

necessary to determine if a final licensing sanction under subdivision 3, paragraph (a),

clauses (1) to
deleted text begin
(6)
deleted text end
new text begin
(5)
new text end
, will be issued and whether persons served by the program remain at

an imminent risk of harm during the investigation period or proceedings. If so, the

commissioner shall issue a suspension order under subdivision 3, paragraph (a), clause
deleted text begin
(7).
deleted text end
new text begin

(6); or
new text end

new text begin

(3) whether the license holder or controlling individual remains the subject of a pending

administrative, civil, or criminal investigation or subject to an administrative or civil action

related to fraud against a program administered by a state or federal agency. If so, the

commissioner shall issue a suspension order under subdivision 3, paragraph (a), clause (6).

new text end

(c) When the final order under paragraph (b) affirms an immediate suspension, or the

license holder does not submit a timely appeal of the immediate suspension, and a final

licensing sanction is issued under subdivision 3 and the license holder appeals that sanction,

the license holder continues to be prohibited from operation of the program pending a final

commissioner's order under section
245A.08, subdivision 5
, regarding the final licensing

sanction.

(d) The license holder shall continue to be prohibited from operation of the program

while a suspension order issued under paragraph (b), clause (2)
new text begin
or (3)
new text end
, remains in effect.

(e) For suspensions under subdivision 2, paragraph (a), clause (3), the burden of proof

in expedited hearings under this subdivision
deleted text begin
shall be limited to
deleted text end
new text begin
is met only if
new text end
the
deleted text begin

commissioner's demonstration
deleted text end
new text begin
commissioner demonstrates
new text end
by a preponderance of the

evidence that a criminal complaint and warrant or summons was issued for the license holder
new text begin

or controlling individual
new text end
that was not dismissed, and that the criminal charge is an offense

that involves fraud or theft against a program administered by the commissioner.

new text begin

(f) For suspensions under subdivision 2, paragraph (c), the burden of proof in expedited

hearings under this subdivision is met only if the commissioner demonstrates by a

preponderance of the evidence that the license holder or controlling individual is the subject

of a pending administrative, civil, or criminal investigation or is subject to an administrative

or civil action related to fraud against a program administered by a state or federal agency.

new text end

Sec. 9.

Minnesota Statutes 2025 Supplement, section 245A.07, subdivision 3, is amended

to read:

Subd. 3.

License suspension, revocation, or fine.

(a) The commissioner may suspend

or revoke a license, or impose a fine if:

(1) a license holder fails to comply fully with applicable laws or rules including but not

limited to the requirements of this chapter and chapter 245C;

(2) a license holder, a controlling individual, or an individual living in the household

where the licensed services are provided or is otherwise subject to a background study has

been disqualified and the disqualification was not set aside and no variance has been granted;

(3) a license holder knowingly withholds relevant information from or gives false or

misleading information to the commissioner in connection with an application for a license,

in connection with the background study status of an individual, during an investigation,

or regarding compliance with applicable laws or rules;

(4) a license holder is excluded from any program administered by the commissioner

under section
245.095
;

(5) revocation is required under section
245A.04, subdivision 7
, paragraph (d); or

(6) suspension is necessary under subdivision 2a, paragraph (b), clause (2)
new text begin
or (3)
new text end
.

A license holder who has had a license issued under this chapter suspended, revoked,

or has been ordered to pay a fine must be given notice of the action by certified mail, by

personal service, or through the provider licensing and reporting hub. If mailed, the notice

must be mailed to the address shown on the application or the last known address of the

license holder. The notice must state in plain language the reasons the license was suspended

or revoked, or a fine was ordered.

(b) If the license was suspended or revoked, the notice must inform the license holder

of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts

1400.8505
to
1400.8612
. The license holder may appeal an order suspending or revoking

a license. The appeal of an order suspending or revoking a license must be made in writing

by certified mail, by personal service, or through the provider licensing and reporting hub.

If mailed, the appeal must be postmarked and sent to the commissioner within ten calendar

days after the license holder receives notice that the license has been suspended or revoked.

If a request is made by personal service, it must be received by the commissioner within

ten calendar days after the license holder received the order. If the order is issued through

the provider hub, the appeal must be received by the commissioner within ten calendar days

from the date the commissioner issued the order through the hub. Except as provided in

subdivision 2a, paragraph (c), if a license holder submits a timely appeal of an order

suspending or revoking a license, the license holder may continue to operate the program

as provided in section
245A.04, subdivision 7
, paragraphs (i) and (j), until the commissioner

issues a final order on the suspension or revocation.

(c)(1) If the license holder was ordered to pay a fine, the notice must inform the license

holder of the responsibility for payment of fines and the right to a contested case hearing

under chapter 14 and Minnesota Rules, parts
1400.8505
to
1400.8612
. The appeal of an

order to pay a fine must be made in writing by certified mail, by personal service, or through

the provider licensing and reporting hub. If mailed, the appeal must be postmarked and sent

to the commissioner within ten calendar days after the license holder receives notice that

the fine has been ordered. If a request is made by personal service, it must be received by

the commissioner within ten calendar days after the license holder received the order. If the

order is issued through the provider hub, the appeal must be received by the commissioner

within ten calendar days from the date the commissioner issued the order through the hub.

(2) The license holder shall pay the fines assessed on or before the payment date specified.

If the license holder fails to fully comply with the order, the commissioner may issue a

second fine or suspend the license until the license holder complies. If the license holder

receives state funds, the state, county, or municipal agencies or departments responsible for

administering the funds shall withhold payments and recover any payments made while the

license is suspended for failure to pay a fine. A timely appeal shall stay payment of the fine

until the commissioner issues a final order.

(3) A license holder shall promptly notify the commissioner of human services, in writing,

when a violation specified in the order to forfeit a fine is corrected. If upon reinspection the

commissioner determines that a violation has not been corrected as indicated by the order

to forfeit a fine, the commissioner may issue a second fine. The commissioner shall notify

the license holder by certified mail, by personal service, or through the provider licensing

and reporting hub that a second fine has been assessed. The license holder may appeal the

second fine as provided under this subdivision.

(4) Fines shall be assessed as follows:

(i) the license holder shall forfeit $1,000 for each determination of maltreatment of a

child under chapter 260E or the maltreatment of a vulnerable adult under section
626.557

for which the license holder is determined responsible for the maltreatment under section

260E.30, subdivision 4
, paragraphs (a) and (b), or
626.557, subdivision 9c
, paragraph (c);

(ii) if the commissioner determines that a determination of maltreatment for which the

license holder is responsible is the result of maltreatment that meets the definition of serious

maltreatment as defined in section
245C.02, subdivision 18
, the license holder shall forfeit

$5,000;

(iii) the license holder shall forfeit $200 for each occurrence of a violation of law or rule

governing matters of health, safety, or supervision, including but not limited to the provision

of adequate staff-to-child or adult ratios, and failure to comply with background study

requirements under chapter 245C; and

(iv) the license holder shall forfeit $100 for each occurrence of a violation of law or rule

other than those subject to a $5,000, $1,000, or $200 fine in items (i) to (iii).

For purposes of this section, "occurrence" means each violation identified in the

commissioner's fine order. Fines assessed against a license holder that holds a license to

provide home and community-based services, as identified in section
245D.03, subdivision

1
, and a community residential setting or day services facility license under chapter 245D

where the services are provided, may be assessed against both licenses for the same

occurrence, but the combined amount of the fines shall not exceed the amount specified in

this clause for that occurrence.

(5) When a fine has been assessed, the license holder may not avoid payment by closing,

selling, or otherwise transferring the licensed program to a third party. In such an event, the

license holder will be personally liable for payment. In the case of a corporation, each

controlling individual is personally and jointly liable for payment.

(d) Except for background study violations involving the failure to comply with an order

to immediately remove an individual or an order to provide continuous, direct supervision,

the commissioner shall not issue a fine under paragraph (c) relating to a background study

violation to a license holder who self-corrects a background study violation before the

commissioner discovers the violation. A license holder who has previously exercised the

provisions of this paragraph to avoid a fine for a background study violation may not avoid

a fine for a subsequent background study violation unless at least 365 days have passed

since the license holder self-corrected the earlier background study violation.

Sec. 10.

Minnesota Statutes 2025 Supplement, section 245A.10, subdivision 4, is amended

to read:

Subd. 4.

License or certification fee for certain programs.

(a)(1) A program licensed

to provide one or more of the home and community-based services and supports identified

under chapter 245D to persons with disabilities or age 65 and older, shall pay an annual

nonrefundable license fee based on revenues derived from the provision of services that

would require licensure under chapter 245D during the calendar year immediately preceding

the year in which the license fee is paid, according to the following schedule:

License Holder Annual Revenue

License Fee

less than or equal to $10,000

$250

greater than $10,000 but less than or

equal to $25,000

$375

greater than $25,000 but less than or

equal to $50,000

$500

greater than $50,000 but less than or

equal to $100,000

$625

greater than $100,000 but less than or

equal to $150,000

$750

greater than $150,000 but less than or

equal to $200,000

$1,000

greater than $200,000 but less than or

equal to $250,000

$1,250

greater than $250,000 but less than or

equal to $300,000

$1,500

greater than $300,000 but less than or

equal to $350,000

$1,750

greater than $350,000 but less than or

equal to $400,000

$2,000

greater than $400,000 but less than or

equal to $450,000

$2,250

greater than $450,000 but less than or

equal to $500,000

$2,500

greater than $500,000 but less than or

equal to $600,000

$2,850

greater than $600,000 but less than or

equal to $700,000

$3,200

greater than $700,000 but less than or

equal to $800,000

$3,600

greater than $800,000 but less than or

equal to $900,000

$3,900

greater than $900,000 but less than or

equal to $1,000,000

$4,250

greater than $1,000,000 but less than or

equal to $1,250,000

$4,550

greater than $1,250,000 but less than or

equal to $1,500,000

$4,900

greater than $1,500,000 but less than or

equal to $1,750,000

$5,200

greater than $1,750,000 but less than or

equal to $2,000,000

$5,500

greater than $2,000,000 but less than or

equal to $2,500,000

$5,900

greater than $2,500,000 but less than or

equal to $3,000,000

$6,200

greater than $3,000,000 but less than or

equal to $3,500,000

$6,500

greater than $3,500,000 but less than or

equal to $4,000,000

$7,200

greater than $4,000,000 but less than or

equal to $4,500,000

$7,800

greater than $4,500,000 but less than or

equal to $5,000,000

$9,000

greater than $5,000,000 but less than or

equal to $7,500,000

$10,000

greater than $7,500,000 but less than or

equal to $10,000,000

$14,000

greater than $10,000,000 but less than or

equal to $12,500,000

$18,000

greater than $12,500,000 but less than or

equal to $15,000,000

$25,000

greater than $15,000,000 but less than or

equal to $17,500,000

$28,000

greater than $17,500,000 but less than
new text begin
or

equal to
new text end
$20,000,000

$32,000

greater than $20,000,000 but less than
new text begin
or

equal to
new text end
$25,000,000

$36,000

greater than $25,000,000 but less than
new text begin
or

equal to
new text end
$30,000,000

$45,000

greater than $30,000,000 but less than
new text begin
or

equal to
new text end
$35,000,000

$55,000

greater than $35,000,000

$75,000

(2) If requested, the license holder shall provide the commissioner information to verify

the license holder's annual revenues or other information as needed, including copies of

documents submitted to the Department of Revenue.

(3) At each annual renewal, a license holder may elect to pay the highest renewal fee,

and not provide annual revenue information to the commissioner.

(4) A license holder that knowingly provides the commissioner incorrect revenue amounts

for the purpose of paying a lower license fee shall be subject to a civil penalty in the amount

of double the fee the provider should have paid.

(b) A substance use disorder treatment program licensed under chapter 245G, to provide

substance use disorder treatment shall pay an annual nonrefundable license fee based on

the following schedule:

Licensed Capacity

License Fee

1 to 24 persons

$2,600

25 to 49 persons

$3,000

50 to 74 persons

$5,000

75 to 99 persons

$10,000

100 to 199 persons

$15,000

200 or more persons

$20,000

(c) A detoxification program licensed under Minnesota Rules, parts
9530.6510
to

9530.6590
, or a withdrawal management program licensed under chapter 245F shall pay

an annual nonrefundable license fee based on the following schedule:

Licensed Capacity

License Fee

1 to 24 persons

$2,600

25 to 49 persons

$3,000

50 or more persons

$5,000

A detoxification program that also operates a withdrawal management program at the same

location shall only pay one fee based upon the licensed capacity of the program with the

higher overall capacity.

(d) A children's residential facility licensed under Minnesota Rules, chapter
2960
, to

serve children shall pay an annual nonrefundable license fee based on the following schedule:

Licensed Capacity

License Fee

1 to 24 persons

$1,000

25 to 49 persons

$1,100

50 to 74 persons

$1,200

75 to 99 persons

$1,300

100 or more persons

$1,400

(e) A residential facility licensed under section
245I.23
or Minnesota Rules, parts

9520.0500
to
9520.0670
, to serve persons with mental illness shall pay an annual

nonrefundable license fee based on the following schedule:

Licensed Capacity

License Fee

1 to 24 persons

$2,600

25 to 49 persons

$3,000

50 or more persons

$20,000

(f) A residential facility licensed under Minnesota Rules, parts
9570.2000
to
9570.3400
,

to serve persons with physical disabilities shall pay an annual nonrefundable license fee

based on the following schedule:

Licensed Capacity

License Fee

1 to 24 persons

$450

25 to 49 persons

$650

50 to 74 persons

$850

75 to 99 persons

$1,050

100 or more persons

$1,250

(g) A program licensed as an adult day care center licensed under Minnesota Rules,

parts
9555.9600
to
9555.9730
, shall pay an annual nonrefundable license fee based on the

following schedule:

Licensed Capacity

License Fee

1 to 24 persons

$2,600

25 to 49 persons

$3,000

50 to 74 persons

$5,000

75 to 99 persons

$10,000

100 to 199 persons

$15,000

200 or more persons

$20,000

(h) A program licensed to provide treatment services to persons with sexual psychopathic

personalities or sexually dangerous persons under Minnesota Rules, parts
9515.3000
to

9515.3110
, shall pay an annual nonrefundable license fee of $20,000.

(i) A mental health clinic certified under section
245I.20
shall pay an annual

nonrefundable certification fee of $1,550. If the mental health clinic provides services at a

primary location with satellite facilities, the satellite facilities shall be certified with the

primary location without an additional charge.

(j) If a program subject to annual fees under paragraph (b) provides services at a primary

location with satellite facilities, the satellite facilities must be licensed with the primary

location and must be subject to an additional $500 annual nonrefundable license fee per

satellite facility.

Sec. 11.

Minnesota Statutes 2025 Supplement, section 245A.142, subdivision 3, is amended

to read:

Subd. 3.

Provisional license.

(a) Beginning January 1, 2026, the commissioner shall

begin issuing provisional licenses to agencies enrolled under chapter 256B to provide EIDBI

services.

(b) Agencies enrolled before July 1, 2025, have until May 31, 2026, to submit an

application for provisional licensure on the forms and in the manner prescribed by the

commissioner.

(c) Beginning June 1, 2026, an agency must not operate if it has not submitted an

application for provisional licensure under this section. The commissioner shall disenroll

an agency from providing EIDBI services under chapter 256B if the agency fails to submit

an application for provisional licensure by May 31, 2026.

(d) The commissioner must determine whether a provisional license applicant complies

with all applicable rules and laws and either issue a provisional license to the applicant or

deny the application by December 31, 2026.

(e) A provisional license is effective until comprehensive EIDBI agency licensure

standards are in effect unless the provisional license is suspended or revoked.

new text begin

(f) Initial provisional license applications are subject to the $2,100 application fee under

section 245A.10, subdivision 3.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 12.

Minnesota Statutes 2025 Supplement, section 245A.242, subdivision 2, is amended

to read:

Subd. 2.

Emergency overdose treatment.

(a) A license holder must maintain a supply

of opiate antagonists as defined in section
604A.04, subdivision 1
, available for emergency

treatment of opioid overdose
deleted text begin
and
deleted text end
new text begin
. For administration via intramuscular injection, a license

holder
new text end
must have a written standing order protocol by a physician who is licensed under

chapter 147, advanced practice registered nurse who is licensed under chapter 148, or

physician assistant who is licensed under chapter 147A, that permits the license holder to

maintain a supply of
new text begin
intramuscular injection
new text end
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. 13.

Minnesota Statutes 2024, section 245C.02, subdivision 18, is amended to read:

Subd. 18.

Serious maltreatment.

(a) "Serious maltreatment" means sexual abuse,

maltreatment resulting in death, neglect resulting in serious injury which reasonably requires

the care of a physician, advanced practice registered nurse, or physician assistant whether

or not the care of a physician, advanced practice registered nurse, or physician assistant was

sought,
deleted text begin
or
deleted text end
abuse resulting in serious injury
new text begin
, or financial exploitation of a vulnerable adult

if the value of the funds or property is $1,000 or greater
new text end
.

(b) For purposes of this definition, "care of a physician, advanced practice registered

nurse, or physician assistant" is treatment received or ordered by a physician, physician

assistant, or advanced practice registered nurse, but does not include:

(1) diagnostic testing, assessment, or observation;

(2) the application of, recommendation to use, or prescription solely for a remedy that

is available over the counter without a prescription; or

(3) a prescription solely for a topical antibiotic to treat burns when there is no follow-up

appointment.

(c) For purposes of this definition, "abuse resulting in serious injury" means: bruises,

bites, skin laceration, or tissue damage; fractures; dislocations; evidence of internal injuries;

head injuries with loss of consciousness; extensive second-degree or third-degree burns and

other burns for which complications are present; extensive second-degree or third-degree

frostbite and other frostbite for which complications are present; irreversible mobility or

avulsion of teeth; injuries to the eyes; ingestion of foreign substances and objects that are

harmful; near drowning; and heat exhaustion or sunstroke.

(d) Serious maltreatment includes neglect when it results in criminal sexual conduct

against a child or vulnerable adult.

Sec. 14.

Minnesota Statutes 2024, section 245C.03, subdivision 1, is amended to read:

Subdivision 1.

Programs licensed by the commissioner.

(a) The commissioner shall

conduct a background study on:

(1) the person or persons applying for a license;

(2) an individual age 13 and over living in the household where the licensed program

will be provided who is not receiving licensed services from the program;

(3) current or prospective employees of the applicant or license holder who will have

direct contact with persons served by the facility, agency, or program;

(4) volunteers or student volunteers who will have direct contact with persons served

by the program to provide program services if the contact is not under the continuous, direct

supervision by an individual listed in clause (1) or (3);

(5) an individual age ten to 12 living in the household where the licensed services will

be provided when the commissioner has reasonable cause as defined in section
245C.02
,

subdivision 15;

(6) an individual who, without providing direct contact services at a licensed program,

may have unsupervised access to children or vulnerable adults receiving services from a

program, when the commissioner has reasonable cause as defined in section
245C.02
,

subdivision 15; and

(7) all controlling individuals as defined in section
245A.02, subdivision 5a
;

(8) notwithstanding clause (3), for children's residential facilities and foster residence

settings, any adult working in the facility, whether or not the individual will have direct

contact with persons served by the facility.

(b) For child foster care when the license holder resides in the home where foster care

services are provided, a short-term substitute caregiver providing direct contact services for

a child for less than 72 hours of continuous care is not required to receive a background

study under this chapter.

(c) This subdivision applies to the following programs that must be licensed under

chapter 245A:

(1) adult foster care;

(2) children's residential facilities;

(3) licensed home and community-based services under chapter 245D;

(4) residential mental health programs for adults;

(5) substance use disorder treatment programs under chapter 245G;

(6) withdrawal management programs under chapter 245F;

(7) adult day care centers;

(8) family adult day services;

(9) detoxification programs;

(10) community residential settings;

(11) intensive residential treatment services and residential crisis stabilization under

chapter 245I;
deleted text begin
and
deleted text end

(12) treatment programs for persons with sexual psychopathic personality or sexually

dangerous persons, licensed under chapter 245A and according to Minnesota Rules, parts

9515.3000
to
9515.3110
deleted text begin
.
deleted text end
new text begin
; and
new text end

new text begin

(13) children's foster residence settings.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective November 3, 2026.

new text end

Sec. 15.

Minnesota Statutes 2024, section 245C.04, subdivision 1, is amended to read:

Subdivision 1.

Licensed programs; other child care programs.

(a) The commissioner

shall conduct a background study of an individual required to be studied under section

245C.03, subdivision 1
, at least upon application for initial license for all license types.

(b) The commissioner shall conduct a background study of an individual required to be

studied under section
245C.03
, subdivision 1, including a child care background study

subject as defined in section
245C.02, subdivision 6a
, in a family child care program, licensed

child care center, certified license-exempt child care center, or legal nonlicensed child care

provider, on a schedule determined by the commissioner. Except as provided in section

245C.05, subdivision 5a
, a child care background study must include submission of

fingerprints for a national criminal history record check and a review of the information

under section
245C.08
. A background study for a child care program must be repeated

within five years from the most recent study conducted under this paragraph.

(c) At reauthorization or when a new background study is needed under section
142E.16,

subdivision 2
, for a legal nonlicensed child care provider authorized under chapter 142E:

(1) for a background study affiliated with a legal nonlicensed child care provider, the

individual shall provide information required under section
245C.05, subdivision 1
,

paragraphs (a), (b), and (d), to the commissioner and be fingerprinted and photographed

under section
245C.05, subdivision 5
; and

(2) the commissioner shall verify the information received under clause (1) and submit

the request in NETStudy 2.0 to complete the background study.

(d) At reapplication for a family child care license:

(1) for a background study affiliated with a licensed family child care center, the

individual shall provide information required under section
245C.05, subdivision 1
,

paragraphs (a), (b), and (d), to the county agency, and be fingerprinted and photographed

under section
245C.05, subdivision 5
;

(2) the county agency shall verify the information received under clause (1) and forward

the information to the commissioner and submit the request in NETStudy 2.0 to complete

the background study; and

(3) the background study conducted by the commissioner under this paragraph must

include a review of the information required under section
245C.08
.

deleted text begin

(e) The commissioner is not required to conduct a study of an individual at the time of

reapplication for a license if the individual's background study was completed by the

commissioner of human services and the following conditions are met:

deleted text end

deleted text begin

(1) a study of the individual was conducted either at the time of initial licensure or when

the individual became affiliated with the license holder;

deleted text end

deleted text begin

(2) the individual has been continuously affiliated with the license holder since the last

study was conducted; and

deleted text end

deleted text begin

(3) the last study of the individual was conducted on or after October 1, 1995.

deleted text end

deleted text begin

(f)
deleted text end
new text begin
(e)
new text end
The commissioner of human services shall conduct a background study of an

individual specified under section
245C.03, subdivision 1
, paragraph (a), clauses (2) to (6),

who is newly affiliated with a child foster family setting license holder:

(1) the county or private agency shall collect and forward to the commissioner the

information required under section
245C.05, subdivisions 1
and 5, when the child foster

family setting applicant or license holder resides in the home where child foster care services

are provided; and

(2) the background study conducted by the commissioner of human services under this

paragraph must include a review of the information required under section
245C.08,

subdivisions 1
, 3, and 4.

deleted text begin

(g)
deleted text end
new text begin
(f)
new text end
The commissioner shall conduct a background study of an individual specified

under section
245C.03, subdivision 1
, paragraph (a), clauses (2) to (6), who is newly affiliated

with an adult foster care or family adult day services and with a family child care license

holder or a legal nonlicensed child care provider authorized under chapter 142E and:

(1) except as provided in section
245C.05, subdivision 5a
, the county shall collect and

forward to the commissioner the information required under section
245C.05, subdivision

1
, paragraphs (a) and (b), and subdivision 5, paragraph (b), for background studies conducted

by the commissioner for all family adult day services, for adult foster care when the adult

foster care license holder resides in the adult foster care residence, and for family child care

and legal nonlicensed child care authorized under chapter 142E;

(2) the license holder shall collect and forward to the commissioner the information

required under section
245C.05, subdivisions 1
, paragraphs (a) and (b); and 5, paragraphs

(a) and (b), for background studies conducted by the commissioner for adult foster care

when the license holder does not reside in the adult foster care residence; and

(3) the background study conducted by the commissioner under this paragraph must

include a review of the information required under section
245C.08, subdivision 1
, paragraph

(a), and subdivisions 3 and 4.

deleted text begin

(h)
deleted text end
new text begin
(g)
new text end
Applicants for licensure, license holders, and other entities as provided in this

chapter must submit completed background study requests to the commissioner using the

electronic system known as NETStudy
new text begin
2.0
new text end
before individuals specified in section
245C.03,

subdivision 1
, begin positions allowing direct contact in any licensed program.

deleted text begin

(i)
deleted text end
new text begin
(h)
new text end
For an individual who is not on the entity's active roster, the entity must initiate

a new background study through NETStudy when:

(1) an individual returns to a position requiring a background study following an absence

of 120 or more consecutive days; or

(2) a program that discontinued providing licensed direct contact services for 120 or

more consecutive days begins to provide direct contact licensed services again.

The license holder shall maintain a copy of the notification provided to the commissioner

under this paragraph in the program's files. If the individual's disqualification was previously

set aside for the license holder's program and the new background study results in no new

information that indicates the individual may pose a risk of harm to persons receiving

services from the license holder, the previous set-aside shall remain in effect.

deleted text begin

(j)
deleted text end
new text begin
(i)
new text end
For purposes of this section, a physician licensed under chapter 147, advanced

practice registered nurse licensed under chapter 148, or physician assistant licensed under

chapter 147A is considered to be continuously affiliated upon the license holder's receipt

from the commissioner of health or human services of the physician's, advanced practice

registered nurse's, or physician assistant's background study results.

deleted text begin

(k)
deleted text end
new text begin
(j)
new text end
For purposes of family child care, a substitute caregiver must receive repeat

background studies at the time of each license renewal.

deleted text begin

(l)
deleted text end
new text begin
(k)
new text end
A repeat background study at the time of license renewal is not required if the

family child care substitute caregiver's background study was completed by the commissioner

on or after October 1, 2017, and the substitute caregiver is on the license holder's active

roster in NETStudy 2.0.

deleted text begin

(m)
deleted text end
new text begin
(l)
new text end
Before and after school programs authorized under chapter 142E, are exempt

from the background study requirements under section
123B.03
, for an employee for whom

a background study under this chapter has been completed.

Sec. 16.

Minnesota Statutes 2025 Supplement, section 245C.07, is amended to read:

245C.07 STUDY SUBJECT AFFILIATED WITH MULTIPLE FACILITIES.

(a) Subject to the conditions in paragraph (d), when a license holder, applicant, or other

entity owns multiple programs or services that are licensed by the Department of Human

Services; Department of Children, Youth, and Families; Department of Health; or Department

of Corrections, only one background study is required for an individual who provides direct

contact services in one or more of the licensed programs or services if:

(1) the license holder designates one individual with one address and telephone number

as the person to receive sensitive background study information for the multiple licensed

programs or services that depend on the same background study; and

(2) the individual designated to receive the sensitive background study information is

capable of determining, upon request of the department, whether a background study subject

is providing direct contact services in one or more of the license holder's programs or services

and, if so, at which location or locations.

(b) When a license holder maintains background study compliance for multiple licensed

programs according to paragraph (a), and one or more of the licensed programs closes, the

license holder shall immediately notify the commissioner which staff must be transferred

to an active license so that the background studies can be electronically paired with the

license holder's active program.

(c) When a background study is being initiated by a licensed program or service or a

foster care provider that is also licensed under chapter 144G, a study subject affiliated with

multiple licensed programs or services may attach to the background study form a cover

letter indicating the additional names of the programs or services, addresses, and background

study identification numbers.

When the commissioner receives a notice, the commissioner shall notify each program

or service identified by the background study subject of the study results.

The background study notice the commissioner sends to the subsequent agencies shall

satisfy those programs' or services' responsibilities for initiating a background study on that

individual.

(d)
deleted text begin
If a background study was conducted on an individual related to child foster care

and the requirements under paragraph (a) are met, the background study is transferable

across all licensed programs.
deleted text end
If a background study was conducted on an individual under

a license other than child foster care and the requirements under paragraph (a) are met, the

background study is transferable to all licensed programs except child foster care.

(e) The provisions of this section that allow a single background study in one or more

licensed programs or services do not apply to background studies submitted by adoption

agencies, supplemental nursing services agencies, personnel pool agencies, educational

programs, professional services agencies, temporary personnel agencies, and unlicensed

personal care provider organizations.

(f) For an entity operating under NETStudy 2.0, the entity's active roster must be the

system used to document when a background study subject is affiliated with multiple entities.

For a background study to be transferable:

(1) the background study subject must be on and moving to a roster for which the person

designated to receive sensitive background study information is the same; and

(2) the same entity must own or legally control both the roster from which the transfer

is occurring and the roster to which the transfer is occurring. For an entity that holds or

controls multiple licenses, or unlicensed personal care provider organizations, there must

be a common highest level entity that has a legally identifiable structure that can be verified

through records available from the secretary of state.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2026.

new text end

Sec. 17.

Minnesota Statutes 2025 Supplement, section 245C.13, subdivision 2, is amended

to read:

Subd. 2.

Activities pending completion of background study.

The subject of a

background study may not perform any activity requiring a background study under

paragraph (c) until the commissioner has issued one of the notices under paragraph (a).

(a) Notices from the commissioner required prior to activity under paragraph (c) include:

(1) a notice of the study results under section
245C.17
stating that:

(i) the individual is not disqualified; or

(ii) more time is needed to complete the study but the individual is not required to be

removed from direct contact or access to people receiving services prior to completion of

the study as provided under section
245C.17, subdivision 1
, paragraph (b) or (c). The notice

that more time is needed to complete the study must also indicate whether the individual is

required to be under continuous direct supervision prior to completion of the background

study. When more time is necessary to complete a background study of an individual

affiliated with a Title IV-E eligible children's residential facility or foster residence setting,

the individual may not work in the facility or setting regardless of whether or not the

individual is supervised;

(2) a notice that a disqualification has been set aside under section
245C.23
; or

(3) a notice that a variance has been granted related to the individual under section

245C.30
.

(b) For a
new text begin
child care
new text end
background study
deleted text begin
affiliated with a licensed child care center or

certified license-exempt child care center
deleted text end
new text begin
subject required to submit fingerprints for a

national criminal history check, except as provided in section 245C.05, subdivision 5a
new text end
, the

notice sent under paragraph (a), clause (1), item (ii), must not be issued until the

commissioner receives a qualifying result for the individual for the fingerprint-based national

criminal history record check or the fingerprint-based criminal history information from

the Bureau of Criminal Apprehension. The notice must require the individual to be under

continuous direct supervision prior to completion of the remainder of the background study

except as permitted in subdivision 3.

(c) Activities prohibited prior to receipt of notice under paragraph (a) include:

(1) being issued a license;

(2) living in the household where the licensed program will be provided;

(3) providing direct contact services to persons served by a program unless the subject

is under continuous direct supervision;

(4) having access to persons receiving services if the background study was completed

under section
144.057, subdivision 1
, or
245C.03, subdivision 1
, paragraph (a), clause (2),

(5), or (6), unless the subject is under continuous direct supervision;

(5) for
deleted text begin
licensed child care centers and certified license-exempt child care centers
deleted text end
new text begin
a child

care background study subject
new text end
,
deleted text begin
providing direct contact services to persons served by the

program
deleted text end
new text begin
performing any act listed in section 245C.02, subdivision 6a, unless the study is

being renewed under section 245C.04, subdivision 1, paragraph (b), and it has been less

than five years since the child care background study subject was previously disqualified

or provided notice under paragraph (a), clause (1), item (i)
new text end
;

(6) for children's residential facilities or foster residence settings, working in the facility

or setting;

(7) for background studies affiliated with a personal care provider organization, except

as provided in section
245C.03, subdivision 3b
, before a personal care assistant provides

services, the personal care assistance provider agency must initiate a background study of

the personal care assistant under this chapter and the personal care assistance provider

agency must have received a notice from the commissioner that the personal care assistant

is:

(i) not disqualified under section
245C.14
; or

(ii) disqualified, but the personal care assistant has received a set aside of the

disqualification under section
245C.22
; or

(8) for background studies affiliated with an early intensive developmental and behavioral

intervention provider, before an individual provides services, the early intensive

developmental and behavioral intervention provider must initiate a background study for

the individual under this chapter and the early intensive developmental and behavioral

intervention provider must have received a notice from the commissioner that the individual

is:

(i) not disqualified under section
245C.14
; or

(ii) disqualified, but the individual has received a set-aside of the disqualification under

section
245C.22
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2026.

new text end

Sec. 18.

Minnesota Statutes 2024, section 245C.15, subdivision 2, is amended to read:

Subd. 2.

15-year disqualification.

(a) An individual is disqualified under section
245C.14

if: (1) less than 15 years have passed since the discharge of the sentence imposed, if any,

for the offense; and (2) the individual has committed a felony-level violation of any of the

following offenses: sections
152.021, subdivision 1
or 2b, (aggravated controlled substance

crime in the first degree; sale crimes);
152.022, subdivision 1
(controlled substance crime

in the second degree; sale crimes);
152.023, subdivision 1
(controlled substance crime in

the third degree; sale crimes);
152.024, subdivision 1
(controlled substance crime in the

fourth degree; sale crimes);
256.98
(wrongfully obtaining assistance);
268.182
(fraud);

393.07, subdivision 10
, paragraph (c) (federal SNAP fraud);
518B.01, subdivision 14

(violation of an order for protection);
609.165
(felon ineligible to possess firearm);
609.2112
,

609.2113
, or
609.2114
(criminal vehicular homicide or injury);
609.215
(suicide);
609.223

or
609.2231
(assault in the third or fourth degree); repeat offenses under
609.224
(assault

in the fifth degree);
609.229
(crimes committed for benefit of a gang);
609.2325
(criminal

abuse of a vulnerable adult);
new text begin
609.2334 (violation of an order for protection against financial

exploitation of a vulnerable adult);
new text end
609.2335
(financial exploitation of a vulnerable adult);

609.235
(use of drugs to injure or facilitate crime);
609.24
(simple robbery); 609.247,

subdivision 4 (carjacking in the third degree);
609.255
(false imprisonment);
609.2664

(manslaughter of an unborn child in the first degree);
609.2665
(manslaughter of an unborn

child in the second degree);
609.267
(assault of an unborn child in the first degree);
609.2671

(assault of an unborn child in the second degree);
609.268
(injury or death of an unborn

child in the commission of a crime);
609.27
(coercion);
609.275
(attempt to coerce);
609.466

(medical assistance fraud);
609.495
(aiding an offender);
609.498, subdivision 1
or 1b

(aggravated first-degree or first-degree tampering with a witness);
609.52
(theft);
609.521

(possession of shoplifting gear);
609.522
(organized retail theft);
609.525
(bringing stolen

goods into Minnesota);
609.527
(identity theft);
609.53
(receiving stolen property);
609.535

(issuance of dishonored checks);
new text begin
609.542 (illegal remunerations);
new text end
609.562
(arson in the

second degree);
609.563
(arson in the third degree);
609.582
(burglary);
609.59
(possession

of burglary tools);
609.611
(insurance fraud);
609.625
(aggravated forgery);
609.63
(forgery);

609.631
(check forgery; offering a forged check);
609.635
(obtaining signature by false

pretense);
609.66
(dangerous weapons);
609.67
(machine guns and short-barreled shotguns);

609.687
(adulteration);
609.71
(riot);
609.713
(terroristic threats);
609.746
(interference

with privacy);
609.82
(fraud in obtaining credit);
609.821
(financial transaction card fraud);

617.23
(indecent exposure), not involving a minor; repeat offenses under
617.241
(obscene

materials and performances; distribution and exhibition prohibited; penalty); or
624.713

(certain persons not to possess firearms).

(b) An individual is disqualified under section
245C.14
if less than 15 years has passed

since the individual's aiding and abetting, attempt, or conspiracy to commit any of the

offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.

(c) An individual is disqualified under section
245C.14
if less than 15 years has passed

since the termination of the individual's parental rights under section 260C.301, subdivision

1, paragraph (b), or subdivision 3.

(d) An individual is disqualified under section
245C.14
if less than 15 years has passed

since the discharge of the sentence imposed for an offense in any other state or country, the

elements of which are substantially similar to the elements of the offenses listed in paragraph

(a) or since the termination of parental rights in any other state or country, the elements of

which are substantially similar to the elements listed in paragraph (c).

(e) If the individual studied commits one of the offenses listed in paragraph (a), but the

sentence or level of offense is a gross misdemeanor or misdemeanor, the individual is

disqualified but the disqualification look-back period for the offense is the period applicable

to the gross misdemeanor or misdemeanor disposition.

(f) When a disqualification is based on a judicial determination other than a conviction,

the disqualification period begins from the date of the court order. When a disqualification

is based on an admission, the disqualification period begins from the date of an admission

in court. When a disqualification is based on an Alford Plea, the disqualification period

begins from the date the Alford Plea is entered in court. When a disqualification is based

on a preponderance of evidence of a disqualifying act, the disqualification date begins from

the date of the dismissal, the date of discharge of the sentence imposed for a conviction for

a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

Sec. 19.

Minnesota Statutes 2024, section 245C.15, subdivision 3, is amended to read:

Subd. 3.

Ten-year disqualification.

(a) An individual is disqualified under section

245C.14
if: (1) less than ten years have passed since the discharge of the sentence imposed,

if any, for the offense; and (2) the individual has committed a gross misdemeanor-level

violation of any of the following offenses: sections
256.98
(wrongfully obtaining assistance);

260B.425
(criminal jurisdiction for contributing to status as a juvenile petty offender or

delinquency);
260C.425
(criminal jurisdiction for contributing to need for protection or

services);
268.182
(fraud);
393.07, subdivision 10
, paragraph (c) (federal SNAP fraud);

609.2112
,
609.2113
, or
609.2114
(criminal vehicular homicide or injury);
609.221
or
609.222

(assault in the first or second degree);
609.223
or
609.2231
(assault in the third or fourth

degree);
609.224
(assault in the fifth degree);
609.224, subdivision 2
, paragraph (c) (assault

in the fifth degree by a caregiver against a vulnerable adult);
609.2242
and
609.2243

(domestic assault);
609.23
(mistreatment of persons confined);
609.231
(mistreatment of

residents or patients);
609.2325
(criminal abuse of a vulnerable adult);
609.233
(criminal

neglect of a vulnerable adult);
new text begin
609.2334 (violation of an order for protection against financial

exploitation of a vulnerable adult);
new text end
609.2335
(financial exploitation of a vulnerable adult);

609.234
(failure to report maltreatment of a vulnerable adult);
609.265
(abduction);
609.275

(attempt to coerce);
609.324, subdivision 1a
(other prohibited acts; minor engaged in

prostitution);
609.33
(disorderly house);
609.377
(malicious punishment of a child);
609.378

(neglect or endangerment of a child);
609.466
(medical assistance fraud);
609.52
(theft);

609.522
(organized retail theft);
609.525
(bringing stolen goods into Minnesota);
609.527

(identity theft);
609.53
(receiving stolen property);
609.535
(issuance of dishonored checks);

609.582
(burglary);
609.59
(possession of burglary tools);
609.611
(insurance fraud);
609.631

(check forgery; offering a forged check);
609.66
(dangerous weapons);
609.71
(riot);
609.72,

subdivision 3
(disorderly conduct against a vulnerable adult);
new text begin
609.746 (interference with

privacy);
new text end
609.749, subdivision 2
(harassment);
609.82
(fraud in obtaining credit);
609.821

(financial transaction card fraud);
617.23
(indecent exposure), not involving a minor;
617.241

(obscene materials and performances);
617.243
(indecent literature, distribution);
617.293

(harmful materials; dissemination and display to minors prohibited); or Minnesota Statutes

2012, section
609.21
; or violation of an order for protection under section
518B.01,

subdivision 14
.

(b) An individual is disqualified under section
245C.14
if less than ten years has passed

since the individual's aiding and abetting, attempt, or conspiracy to commit any of the

offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.

(c) An individual is disqualified under section
245C.14
if less than ten years has passed

since the discharge of the sentence imposed for an offense in any other state or country, the

elements of which are substantially similar to the elements of any of the offenses listed in

paragraph (a).

(d) If the individual studied commits one of the offenses listed in paragraph (a), but the

sentence or level of offense is a misdemeanor disposition, the individual is disqualified but

the disqualification lookback period for the offense is the period applicable to misdemeanors.

(e) When a disqualification is based on a judicial determination other than a conviction,

the disqualification period begins from the date of the court order. When a disqualification

is based on an admission, the disqualification period begins from the date of an admission

in court. When a disqualification is based on an Alford Plea, the disqualification period

begins from the date the Alford Plea is entered in court. When a disqualification is based

on a preponderance of evidence of a disqualifying act, the disqualification date begins from

the date of the dismissal, the date of discharge of the sentence imposed for a conviction for

a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

Sec. 20.

Minnesota Statutes 2024, section 245C.15, subdivision 4, is amended to read:

Subd. 4.

Seven-year disqualification.

(a) An individual is disqualified under section

245C.14
if: (1) less than seven years has passed since the discharge of the sentence imposed,

if any, for the offense; and (2) the individual has committed a misdemeanor-level violation

of any of the following offenses: sections
256.98
(wrongfully obtaining assistance);
260B.425

(criminal jurisdiction for contributing to status as a juvenile petty offender or delinquency);

260C.425
(criminal jurisdiction for contributing to need for protection or services);
268.182

(fraud);
393.07, subdivision 10
, paragraph (c) (federal SNAP fraud);
609.2112
,
609.2113
,

or
609.2114
(criminal vehicular homicide or injury);
609.221
(assault in the first degree);

609.222
(assault in the second degree);
609.223
(assault in the third degree);
609.2231

(assault in the fourth degree);
609.224
(assault in the fifth degree);
609.2242
(domestic

assault);
new text begin
609.2334 (violation of an order for protection against financial exploitation of a

vulnerable adult);
new text end
609.2335
(financial exploitation of a vulnerable adult);
609.234
(failure

to report maltreatment of a vulnerable adult);
609.2672
(assault of an unborn child in the

third degree);
609.27
(coercion); violation of an order for protection under
609.3232

(protective order authorized; procedures; penalties);
609.466
(medical assistance fraud);

609.52
(theft);
609.522
(organized retail theft);
609.525
(bringing stolen goods into

Minnesota);
609.527
(identity theft);
609.53
(receiving stolen property);
609.535
(issuance

of dishonored checks);
609.611
(insurance fraud);
609.66
(dangerous weapons);
609.665

(spring guns);
609.746
(interference with privacy);
609.79
(obscene or harassing telephone

calls);
609.795
(letter, telegram, or package; opening; harassment);
609.82
(fraud in obtaining

credit);
609.821
(financial transaction card fraud);
617.23
(indecent exposure), not involving

a minor;
617.293
(harmful materials; dissemination and display to minors prohibited); or

Minnesota Statutes 2012, section
609.21
; or violation of an order for protection under section

518B.01
(Domestic Abuse Act).

(b) An individual is disqualified under section
245C.14
if less than seven years has

passed since a determination or disposition of the individual's:

(1) failure to make required reports under section
260E.06
or
626.557, subdivision 3
,

for incidents in which: (i) the final disposition under section
626.557
or chapter 260E was

substantiated maltreatment, and (ii) the maltreatment was recurring or serious; or

(2) substantiated serious or recurring maltreatment of a minor under chapter 260E, a

vulnerable adult under section
626.557
, or serious or recurring maltreatment in any other

state, the elements of which are substantially similar to the elements of maltreatment under

section
626.557
or chapter 260E for which: (i) there is a preponderance of evidence that

the maltreatment occurred, and (ii) the subject was responsible for the maltreatment.

(c) An individual is disqualified under section
245C.14
if less than seven years has

passed since the individual's aiding and abetting, attempt, or conspiracy to commit any of

the offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota

Statutes.

(d) An individual is disqualified under section
245C.14
if less than seven years has

passed since the discharge of the sentence imposed for an offense in any other state or

country, the elements of which are substantially similar to the elements of any of the offenses

listed in paragraphs (a) and (b).

(e) When a disqualification is based on a judicial determination other than a conviction,

the disqualification period begins from the date of the court order. When a disqualification

is based on an admission, the disqualification period begins from the date of an admission

in court. When a disqualification is based on an Alford Plea, the disqualification period

begins from the date the Alford Plea is entered in court. When a disqualification is based

on a preponderance of evidence of a disqualifying act, the disqualification date begins from

the date of the dismissal, the date of discharge of the sentence imposed for a conviction for

a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

(f) An individual is disqualified under section
245C.14
if less than seven years has passed

since the individual was disqualified under section
256.98, subdivision 8
.

Sec. 21.

Minnesota Statutes 2025 Supplement, section 245C.15, subdivision 4a, is amended

to read:

Subd. 4a.

Licensed family foster setting disqualifications.

(a) Notwithstanding

subdivisions 1 to 4
new text begin
, 4b, and 4c
new text end
, for a background study affiliated with a licensed family

foster setting, regardless of how much time has passed, an individual is disqualified under

section
245C.14
if the individual committed an act that resulted in a felony-level conviction

for sections:
609.185
(murder in the first degree);
609.19
(murder in the second degree);

609.195
(murder in the third degree);
609.20
(manslaughter in the first degree);
609.205

(manslaughter in the second degree);
609.2112
(criminal vehicular homicide);
609.221

(assault in the first degree);
609.223, subdivision 2
(assault in the third degree, past pattern

of child abuse);
609.223, subdivision 3
(assault in the third degree, victim under four); a

felony offense under sections
609.2242
and
609.2243
(domestic assault, spousal abuse,

child abuse or neglect, or a crime against children);
609.2247
(domestic assault by

strangulation);
609.2325
(criminal abuse of a vulnerable adult resulting in the death of a

vulnerable adult);
609.245
(aggravated robbery);
609.247, subdivision 2
or 3 (carjacking

in the first or second degree);
609.25
(kidnapping);
609.255
(false imprisonment);
609.2661

(murder of an unborn child in the first degree);
609.2662
(murder of an unborn child in the

second degree);
609.2663
(murder of an unborn child in the third degree);
609.2664

(manslaughter of an unborn child in the first degree);
609.2665
(manslaughter of an unborn

child in the second degree);
609.267
(assault of an unborn child in the first degree);
609.2671

(assault of an unborn child in the second degree);
609.268
(injury or death of an unborn

child in the commission of a crime);
609.322, subdivision 1
(solicitation, inducement, and

promotion of prostitution; sex trafficking in the first degree);
609.324, subdivision 1
(other

prohibited acts; engaging in, hiring, or agreeing to hire minor to engage in prostitution);

609.342
(criminal sexual conduct in the first degree);
609.343
(criminal sexual conduct in

the second degree);
609.344
(criminal sexual conduct in the third degree);
609.345
(criminal

sexual conduct in the fourth degree);
609.3451
(criminal sexual conduct in the fifth degree);

609.3453
(criminal sexual predatory conduct);
609.3458
(sexual extortion);
609.352

(solicitation of children to engage in sexual conduct);
609.377
(malicious punishment of a

child);
609.3775
(child torture);
609.378
(neglect or endangerment of a child);
609.561

(arson in the first degree);
609.582, subdivision 1
(burglary in the first degree);
609.746

(interference with privacy);
617.23
(indecent exposure);
617.246
(use of minors in sexual

performance prohibited); or
617.247
(possession of child sexual abuse material).

(b) Notwithstanding subdivisions 1 to 4
new text begin
, 4b, and 4c
new text end
, for the purposes of a background

study affiliated with a licensed family foster setting, an individual is disqualified under

section
245C.14
, regardless of how much time has passed, if the individual:

(1) committed an action under paragraph (e) that resulted in death or involved sexual

abuse, as defined in section
260E.03, subdivision 20
;

(2) committed an act that resulted in a gross misdemeanor-level conviction for section

609.3451
(criminal sexual conduct in the fifth degree);

(3) committed an act against or involving a minor that resulted in a felony-level conviction

for: section
609.222
(assault in the second degree);
609.223, subdivision 1
(assault in the

third degree);
609.2231
(assault in the fourth degree); or
609.224
(assault in the fifth degree);

or

(4) committed an act that resulted in a misdemeanor or gross misdemeanor-level

conviction for section
617.293
(dissemination and display of harmful materials to minors).

(c) Notwithstanding subdivisions 1 to 4
new text begin
, 4b, and 4c
new text end
, for a background study affiliated

with a licensed family foster setting, an individual is disqualified under section
245C.14
if

fewer than 20 years have passed since the termination of the individual's parental rights

under section
260C.301, subdivision 1
, paragraph (b), or if the individual consented to a

termination of parental rights under section
260C.301, subdivision 1
, paragraph (a), to settle

a petition to involuntarily terminate parental rights. An individual is disqualified under

section
245C.14
if fewer than 20 years have passed since the termination of the individual's

parental rights in any other state or country, where the conditions for the individual's

termination of parental rights are substantially similar to the conditions in section
260C.301,

subdivision 1
, paragraph (b).

(d) Notwithstanding subdivisions 1 to 4
new text begin
, 4b, and 4c
new text end
, for a background study affiliated

with a licensed family foster setting, an individual is disqualified under section
245C.14
if

fewer than five years have passed since a felony-level violation for sections:
152.021

(controlled substance crime in the first degree);
152.022
(controlled substance crime in the

second degree);
152.023
(controlled substance crime in the third degree);
152.024
(controlled

substance crime in the fourth degree);
152.025
(controlled substance crime in the fifth

degree);
152.0261
(importing controlled substances across state borders);
152.0262,

subdivision 1
, paragraph (b) (possession of substance with intent to manufacture

methamphetamine);
152.027, subdivision
6, paragraph (c) (sale or possession of synthetic

cannabinoids);
152.096
(conspiracies prohibited);
152.097
(simulated controlled substances);

152.136
(anhydrous ammonia; prohibited conduct; criminal penalties; civil liabilities);

152.137
(fentanyl- and methamphetamine-related crimes involving children or vulnerable

adults);
169A.24
(felony first-degree driving while impaired);
243.166
(violation of predatory

offender registration requirements);
609.2113
(criminal vehicular operation; bodily harm);

609.2114
(criminal vehicular operation; unborn child);
609.228
(great bodily harm caused

by distribution of drugs);
609.2325
(criminal abuse of a vulnerable adult not resulting in

the death of a vulnerable adult);
609.233
(criminal neglect);
609.235
(use of drugs to injure

or facilitate a crime);
609.24
(simple robbery);
609.247, subdivision 4
(carjacking in the

third degree);
609.322, subdivision 1a
(solicitation, inducement, and promotion of

prostitution; sex trafficking in the second degree);
609.498, subdivision 1
(tampering with

a witness in the first degree);
609.498, subdivision 1b
(aggravated first-degree witness

tampering);
609.562
(arson in the second degree);
609.563
(arson in the third degree);

609.582, subdivision 2
(burglary in the second degree);
609.66
(felony dangerous weapons);

609.687
(adulteration);
609.713
(terroristic threats);
609.749, subdivision 3
, 4, or 5

(felony-level harassment or stalking);
609.855, subdivision 5
(shooting at or in a public

transit vehicle or facility); or
624.713
(certain people not to possess firearms).

(e) Notwithstanding subdivisions 1 to 4
new text begin
, 4b, and 4c
new text end
, except as provided in paragraph

(a), for a background study affiliated with a licensed family child foster care license, an

individual is disqualified under section
245C.14
if fewer than five years have passed since:

(1) a felony-level violation for an act not against or involving a minor that constitutes:

section
609.222
(assault in the second degree);
609.223, subdivision 1
(assault in the third

degree);
609.2231
(assault in the fourth degree); or
609.224, subdivision 4
(assault in the

fifth degree);

(2) a violation of an order for protection under section
518B.01, subdivision 14
;

(3) a determination or disposition of the individual's failure to make required reports

under section
260E.06
or
626.557, subdivision 3
, for incidents in which the final disposition

under chapter 260E or section
626.557
was substantiated maltreatment and the maltreatment

was recurring or serious;

(4) a determination or disposition of the individual's substantiated serious or recurring

maltreatment of a minor under chapter 260E, a vulnerable adult under section
626.557
, or

serious or recurring maltreatment in any other state, the elements of which are substantially

similar to the elements of maltreatment under chapter 260E or section
626.557
and meet

the definition of serious maltreatment or recurring maltreatment;

(5) a gross misdemeanor-level violation for sections:
609.224, subdivision 2
(assault in

the fifth degree);
609.2242
and
609.2243
(domestic assault);
609.233
(criminal neglect);

609.377
(malicious punishment of a child);
609.378
(neglect or endangerment of a child);

609.746
(interference with privacy);
609.749
(stalking); or
617.23
(indecent exposure); or

(6) committing an act against or involving a minor that resulted in a misdemeanor-level

violation of section
609.224, subdivision 1
(assault in the fifth degree).

(f) For purposes of this subdivision, the disqualification begins from:

(1) the date of the alleged violation, if the individual was not convicted;

(2) the date of conviction, if the individual was convicted of the violation but not

committed to the custody of the commissioner of corrections; or

(3) the date of release from prison, if the individual was convicted of the violation and

committed to the custody of the commissioner of corrections.

Notwithstanding clause (3), if the individual is subsequently reincarcerated for a violation

of the individual's supervised release, the disqualification begins from the date of release

from the subsequent incarceration.

(g) An individual's aiding and abetting, attempt, or conspiracy to commit any of the

offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota

Statutes, permanently disqualifies the individual under section
245C.14
. An individual is

disqualified under section
245C.14
if fewer than five years have passed since the individual's

aiding and abetting, attempt, or conspiracy to commit any of the offenses listed in paragraphs

(d) and (e).

(h) An individual's offense in any other state or country, where the elements of the

offense are substantially similar to any of the offenses listed in paragraphs (a) and (b),

permanently disqualifies the individual under section
245C.14
. An individual is disqualified

under section
245C.14
if fewer than five years have passed since an offense in any other

state or country, the elements of which are substantially similar to the elements of any

offense listed in paragraphs (d) and (e).

Sec. 22.

Minnesota Statutes 2025 Supplement, section 245C.22, subdivision 5, is amended

to read:

Subd. 5.

Scope of set-aside.

(a) If the commissioner sets aside a disqualification under

this section, the disqualified individual remains disqualified, but may hold a license and

have direct contact with or access to persons receiving services. Except as provided in

paragraph (b), the commissioner's set-aside of a disqualification is limited solely to the

licensed program, applicant, or agency specified in the set aside notice under section
245C.23
.

For personal care provider organizations, financial management services organizations,

community first services and supports organizations, unlicensed home and community-based

organizations, and consumer-directed community supports organizations, the commissioner's

set-aside may further be limited to a specific individual who is receiving services. For new

background studies required under section
245C.04, subdivision 1
, paragraph
deleted text begin
(h)
deleted text end
new text begin
(g)
new text end
, 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 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. 23.

Minnesota Statutes 2024, section 245C.24, subdivision 2, is amended to read:

Subd. 2.

Permanent bar to set aside a disqualification.

(a) Except as provided in

paragraphs (b) to
deleted text begin
(g)
deleted text end
new text begin
(f)
new text end
, the commissioner may not set aside the disqualification of any

individual disqualified pursuant to this chapter, regardless of how much time has passed,

if the individual was disqualified for a crime or conduct listed in section
245C.15, subdivision

1
.

(b) For an individual in the substance use disorder or corrections field who was

disqualified for a crime or conduct listed under section
245C.15
, subdivision 1, and whose

disqualification was set aside prior to July 1, 2005, the commissioner must consider granting

a variance pursuant to section
245C.30
for the license holder for a program dealing primarily

with adults. A request for reconsideration evaluated under this paragraph must include a

letter of recommendation from the license holder that was subject to the prior set-aside

decision addressing the individual's quality of care to children or vulnerable adults and the

circumstances of the individual's departure from that service.

(c) If an individual who requires a background study for nonemergency medical

transportation services under section
245C.03, subdivision 12
, was disqualified for a crime

or conduct listed under section
245C.15, subdivision 1
, and if more than 40 years have

passed since the discharge of the sentence imposed, the commissioner may consider granting

a set-aside pursuant to section
245C.22
. A request for reconsideration evaluated under this

paragraph must include a letter of recommendation from the employer. This paragraph does

not apply to a person disqualified based on a violation of sections
243.166
;
609.185
to

609.205
;
609.25
;
609.342
to
609.3453
;
609.352
;
617.23, subdivision 2
, clause (1), or 3,

clause (1);
617.246
; or
617.247
.

(d) When a licensed foster care provider adopts an individual who had received foster

care services from the provider for over six months, and the adopted individual is required

to receive a background study under section
245C.03, subdivision 1
, paragraph (a), clause

(2) or (6), the commissioner may grant a variance to the license holder under section
245C.30

to permit the adopted individual with a permanent disqualification to remain affiliated with

the license holder under the conditions of the variance when the variance is recommended

by the county of responsibility for each of the remaining individuals in placement in the

home and the licensing agency for the home.

(e) For an individual 18 years of age or older affiliated with a licensed family foster

setting, the commissioner must not set aside or grant a variance for the disqualification of

any individual disqualified pursuant to this chapter, regardless of how much time has passed,

if the individual was disqualified for a crime or conduct listed in section
245C.15, subdivision

4a, paragraphs (a) and (b).

(f) In connection with a family foster setting license, the commissioner may grant a

variance to the disqualification for an individual who is under 18 years of age at the time

the background study is submitted.

deleted text begin

(g) In connection with foster residence settings and children's residential facilities, the

commissioner must not set aside or grant a variance for the disqualification of any individual

disqualified pursuant to this chapter, regardless of how much time has passed, if the individual

was disqualified for a crime or conduct listed in section
245C.15, subdivision 4a
, paragraph

(a) or (b).

deleted text end

Sec. 24.

Minnesota Statutes 2024, section 245D.04, subdivision 3, is amended to read:

Subd. 3.

Protection-related rights.

(a) A person's protection-related rights include the

right to:

(1) have personal, financial, service, health, and medical information kept private, and

be advised of disclosure of this information by the license holder;

(2) access records and recorded information about the person in accordance with

applicable state and federal law, regulation, or rule;

(3) be free from maltreatment;

(4) be free from restraint, time out, seclusion, restrictive intervention, or other prohibited

procedure identified in section
245D.06, subdivision 5
, or successor provisions, except for:

(i) emergency use of manual restraint to protect the person from imminent danger to self

or others according to the requirements in section
245D.061
or successor provisions; or (ii)

the use of safety interventions as part of a positive support transition plan under section

245D.06, subdivision 8
, or successor provisions;

(5) receive services in a clean and safe environment when the license holder is the owner,

lessor, or tenant of the service site;

(6) be treated with courtesy and respect and receive respectful treatment of the person's

property;

(7) reasonable observance of cultural and ethnic practice and religion;

(8) be free from bias and harassment regarding race, gender, age, disability, spirituality,

and sexual orientation;

(9) be informed of and use the license holder's grievance policy and procedures, including

knowing how to contact persons responsible for addressing problems and to appeal under

section
256.045
;

(10) know the name, telephone number, and the website, email, and street addresses of

protection and advocacy services, including the appropriate state-appointed ombudsman,

and a brief description of how to file a complaint with these offices;

(11) assert these rights personally, or have them asserted by the person's family,

authorized representative, or legal representative, without retaliation;

(12) give or withhold written informed consent to participate in any research or

experimental treatment;

(13) associate with other persons of the person's choice in the community;

(14) personal privacy, including the right to use the lock on the person's bedroom or unit

door;

(15) engage in chosen activities; and

(16) access to the person's personal possessions at any time, including financial resources.

(b) For a person residing in a residential site licensed according to chapter 245A, or

where the license holder is the owner, lessor, or tenant of the residential service site,

protection-related rights also include the right to:

(1) have daily, private access to and use of a non-coin-operated telephone for local calls

and long-distance calls made collect or paid for by the person;

(2) receive and send, without interference, uncensored, unopened mail or electronic

correspondence or communication;

(3) have use of and free access to common areas in the residence and the freedom to

come and go from the residence at will;

(4) choose the person's visitors and time of visits and have privacy for visits with the

person's spouse, next of kin, legal counsel, religious adviser, or others, in accordance with

section
363A.09
of the Human Rights Act, including privacy in the person's bedroom;

(5) have access to three nutritionally balanced meals and nutritious snacks between

meals each day;

(6) have freedom and support to access food and potable water at any time;

(7) have the freedom to furnish and decorate the person's bedroom or living unit;

(8) a setting that is clean and free from accumulation of dirt, grease, garbage, peeling

paint, mold, vermin, and insects;

(9) a setting that is free from hazards that threaten the person's health or safety; and

(10) a setting that meets the definition of a dwelling unit within a residential occupancy

as defined in the State Fire Code.

(c) Restriction of a person's rights under paragraph (a), clauses (13) to (16), or paragraph

(b)
new text begin
, clauses (1) to (7),
new text end
is allowed only if determined necessary to ensure the health, safety,

and well-being of the person. Any restriction of those rights must be documented in the

person's support plan or support plan addendum. The restriction must be implemented in

the least restrictive alternative manner necessary to protect the person and provide support

to reduce or eliminate the need for the restriction in the most integrated setting and inclusive

manner. The documentation must include the following information:

(1) the justification for the restriction based on an assessment of the person's vulnerability

related to exercising the right without restriction;

(2) the objective measures set as conditions for ending the restriction;

(3) a schedule for reviewing the need for the restriction based on the conditions for

ending the restriction to occur semiannually from the date of initial approval, at a minimum,

or more frequently if requested by the person, the person's legal representative, if any, and

case manager; and

(4) signed and dated approval for the restriction from the person, or the person's legal

representative, if any. A restriction may be implemented only when the required approval

has been obtained. Approval may be withdrawn at any time. If approval is withdrawn, the

right must be immediately and fully restored.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 25.

Minnesota Statutes 2024, section 245D.10, subdivision 4, is amended to read:

Subd. 4.

Availability of current written policies and procedures.

(a) The license

holder must review and update, as needed, the written policies and procedures required

under this chapter.

(b)(1) The license holder must inform the person
new text begin
or the person's legal representative
new text end
and

case manager of the policies and procedures affecting a person's rights under section
245D.04
,

and provide copies of those policies and procedures, within five working days of service

initiation.

(2) If a license holder only provides basic services and supports, this includes the:

(i) grievance policy and procedure required under subdivision 2;
deleted text begin
and
deleted text end

(ii) service suspension and termination policy and procedure required under subdivision

3
deleted text begin
.
deleted text end
new text begin
; and
new text end

new text begin

(iii) emergency use of manual restraints policy and procedure required under section

245D.061, subdivision 9, or successor provisions.

new text end

(3) For all other license holders this includes the:

(i) policies and procedures in clause (2);
new text begin
and
new text end

deleted text begin

(ii) emergency use of manual restraints policy and procedure required under section

245D.061, subdivision 9
, or successor provisions; and

deleted text end

deleted text begin

(iii)
deleted text end
new text begin
(ii)
new text end
data privacy requirements under section
245D.11, subdivision 3
.

(c) The license holder must provide a written notice to all persons or their legal

representatives and case managers at least 30 days before implementing any procedural

revisions to policies affecting a person's service-related or protection-related rights under

section
245D.04
and maltreatment reporting policies and procedures. The notice must

explain the revision that was made and include a copy of the revised policy and procedure.

The license holder must document the reasonable cause for not providing the notice at least

30 days before implementing the revisions.

(d) Before implementing revisions to required policies and procedures, the license holder

must inform all employees of the revisions and provide training on implementation of the

revised policies and procedures.

(e) The license holder must annually notify all persons, or their legal representatives,

and case managers of any procedural revisions to policies required under this chapter, other

than those in paragraph (c). Upon request, the license holder must provide the person, or

the person's legal representative, and case manager with copies of the revised policies and

procedures.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 26.

Minnesota Statutes 2024, section 256B.02, is amended by adding a subdivision

to read:

new text begin

Subd. 20.

new text end

new text begin

Fraud.

new text end

new text begin

"Fraud" means an intentional deception or misrepresentation made by

a person with the knowledge that the deception could result in an unauthorized benefit to

the person or another person. Fraud includes:

new text end

new text begin

(1) the following crimes, including attempts or conspiracy to commit the crimes:

new text end

new text begin

(i) theft in violation of section 609.52;

new text end

new text begin

(ii) perjury in violation of section 609.48;

new text end

new text begin

(iii) aggravated forgery and forgery in violation of sections 609.625 and 609.63;

new text end

new text begin

(iv) medical assistance fraud in violation of section 609.466;

new text end

new text begin

(v) financial transaction card fraud in violation of section 609.821;

new text end

new text begin

(vi) wrongfully obtaining assistance in violation of section 256.98;

new text end

new text begin

(vii) illegal remunerations in violation of section 609.542; and

new text end

new text begin

(viii) a felony listed in United States Code, title 42, section 1320a-7b(b)(1) or (2), subject

to any safe harbors established in Code of Federal Regulations, title 42, part 1001, section

952;

new text end

new text begin

(2) any act that constitutes fraud under applicable federal or state law, including but not

limited to knowingly and willfully submitting an application for provider status that is false

or fraudulent in whole or in part; and

new text end

new text begin

(3) an intentional submission of a claim for reimbursement under chapter 256B, knowing

or having reason to know the claim is ineligible for reimbursement in whole or in part and

acting with the intent to defraud the payor.

new text end

Sec. 27.

Minnesota Statutes 2024, section 256B.04, subdivision 10, is amended to read:

Subd. 10.

Investigation of certain claims.

new text begin
The commissioner must
new text end
establish by rule

general criteria and procedures for the identification and prompt investigation of suspected

medical assistance fraud, theft, abuse, presentment of false or duplicate claims, presentment

of claims for services not
new text begin
reasonable or
new text end
medically necessary, or false statement or

representation of material facts by a vendor of medical care
deleted text begin
, and for the imposition of

sanctions against a vendor of medical care
deleted text end
.
new text begin
The commissioner may utilize both prepayment

and postpayment review systems to review claims submitted by vendors. Payment of claims,

including payments made after a prepayment review, does not prohibit the commissioner

from completing a postpayment claims review and taking additional administrative actions

or monetary recovery against a vendor.
new text end
If it appears to the state agency that a vendor of

medical care may have acted in a manner warranting civil or criminal proceedings, it shall

so inform the attorney general in writing.

Sec. 28.

Minnesota Statutes 2024, section 256B.064, subdivision 2, is amended to read:

Subd. 2.

Imposition of monetary recovery and sanctions.

(a) The commissioner shall

determine any monetary amounts to be recovered and sanctions to be imposed upon an

individual or entity under this section. Except as provided in paragraphs (b) and (d), neither

a monetary recovery nor a sanction will be imposed by the commissioner without prior

notice and an opportunity for a hearing, according to chapter 14, on the commissioner's

proposed action, provided that the commissioner may suspend or reduce payment to an

individual or entity, except a nursing home or convalescent care facility, after notice and

prior to the hearing if in the commissioner's opinion that action is necessary to protect the

public welfare and the interests of the program.

(b) Except when the commissioner finds good cause not to suspend payments under

Code of Federal Regulations, title 42, section 455.23(e) or (f), the commissioner shall

withhold or reduce payments to an individual or entity without providing advance notice

of such withholding or reduction if either of the following occurs:

(1) the individual or entity is convicted of a crime involving the conduct described in

subdivision 1a; or

(2) the commissioner determines there is a credible allegation of fraud for which an

investigation is pending under the program. Allegations are considered credible when they

have an indicium of reliability and the state agency has reviewed all allegations, facts, and

evidence carefully and acts judiciously on a case-by-case basis. A credible allegation of

fraud is an allegation which has been verified by the state, from any source, including but

not limited to:

(i) fraud hotline complaints;

(ii) claims data mining; and

(iii) patterns identified through provider audits, civil false claims cases, and law

enforcement investigations.

(c) The commissioner must send notice of the withholding or reduction of payments

under paragraph (b) within five days of taking such action unless requested in writing by a

law enforcement agency to temporarily withhold the notice. The notice must:

(1) state that payments are being withheld according to paragraph (b);

(2) set forth the general allegations as to the nature of the withholding action, but need

not disclose any specific information concerning an ongoing investigation;

(3) except in the case of a conviction for conduct described in subdivision 1a, state that

the withholding is for a temporary period and cite the circumstances under which withholding

will be terminated;

(4) identify the types of claims to which the withholding applies; and

(5) inform the individual or entity of the right to submit written evidence for consideration

by the commissioner.

new text begin

The withholding of payments under paragraph (b) is a temporary action and is not subject

to a contested case for the purposes of chapter 14 nor subject to appeal under section 256.045.

new text end

(d) The withholding or reduction of payments will not continue after the commissioner

determines there is insufficient evidence of fraud by the individual or entity, or after legal

proceedings relating to the alleged fraud are completed, unless the commissioner has sent

notice of intention to impose monetary recovery or sanctions under paragraph (a). Upon

conviction for a crime related to the provision, management, or administration of a health

service under medical assistance, a payment held pursuant to this section by the commissioner

or a managed care organization that contracts with the commissioner under section
256B.035

is forfeited to the commissioner or managed care organization, regardless of the amount

charged in the criminal complaint or the amount of criminal restitution ordered.

(e) The commissioner shall suspend or terminate an individual's or entity's participation

in the program without providing advance notice and an opportunity for a hearing when the

suspension or termination is required because of the individual's or entity's exclusion from

participation in Medicare. Within five days of taking such action, the commissioner must

send notice of the suspension or termination. The notice must:

(1) state that suspension or termination is the result of the individual's or entity's exclusion

from Medicare;

(2) identify the effective date of the suspension or termination; and

(3) inform the individual or entity of the need to be reinstated to Medicare before

reapplying for participation in the program.

(f) Upon receipt of a notice under paragraph (a) that a monetary recovery or sanction is

to be imposed, an individual or entity may request a contested case, as defined in section

14.02, subdivision 3
, by filing with the commissioner a written request of appeal. The appeal

request must be received by the commissioner no later than 30 days after the date the

notification of monetary recovery or sanction was mailed to the individual or entity. The

appeal request must specify:

(1) each disputed item, the reason for the dispute, and an estimate of the dollar amount

involved for each disputed item;

(2) the computation that the individual or entity believes is correct;

(3) the authority in statute or rule upon which the individual or entity relies for each

disputed item;

(4) the name and address of the person or entity with whom contacts may be made

regarding the appeal; and

(5) other information required by the commissioner.

(g) The commissioner may order an individual or entity to forfeit a fine for failure to

fully document services according to standards in this chapter and Minnesota Rules, chapter

9505. The commissioner may assess fines if specific required components of documentation

are missing. The fine for incomplete documentation shall equal 20 percent of the amount

paid on the claims for reimbursement submitted by the individual or entity, or up to $5,000,

whichever is less. If the commissioner determines that an individual or entity repeatedly

violated this chapter, chapter 254B or 245G, or Minnesota Rules, chapter 9505, related to

the provision of services to program recipients and the submission of claims for payment,

the commissioner may order an individual or entity to forfeit a fine based on the nature,

severity, and chronicity of the violations, in an amount of up to $5,000 or 20 percent of the

value of the claims, whichever is greater.

(h) The individual or entity shall pay the fine assessed on or before the payment date

specified. If the individual or entity fails to pay the fine, the commissioner may withhold

or reduce payments and recover the amount of the fine. A timely appeal shall stay payment

of the fine until the commissioner issues a final order.

new text begin

(i) Section 15.013 does not apply to the commissioner taking action under this section.

new text end

Sec. 29.

Minnesota Statutes 2024, section 256B.27, subdivision 3, is amended to read:

Subd. 3.

Access to medical records.

The commissioner of human services, with the

written consent of the recipient, on file with the local welfare agency, shall be allowed

access in the manner and within the time prescribed by the commissioner to all personal

medical records of medical assistance recipients solely for the purposes of investigating

whether or not: (a) a vendor of medical care has submitted a claim for reimbursement, a

cost report or a rate application which is duplicative, erroneous, or false in whole or in part,

or which results in the vendor obtaining greater compensation than the vendor is legally

entitled to; or (b) the medical care was medically necessary.
deleted text begin
When the commissioner is

investigating a possible overpayment of Medicaid funds,
deleted text end
new text begin
The commissioner may conduct

on-site inspections of any and all vendors and service locations or may request records from

a vendor to verify that information submitted to the commissioner is accurate, determine

compliance with service delivery and billing requirements, and determine compliance with

any other applicable laws or rules.
new text end
The commissioner must be given immediate access

without prior notice to the vendor's office during regular business hours and to documentation

and records related to services provided and submission of claims for services provided.

The department shall document in writing the need for immediate access to records related

to a specific investigation. Denying the commissioner access to records is cause for the

vendor's immediate suspension of payment or termination according to section
256B.064
.

The determination of provision of services not medically necessary shall be made by the

commissioner. Notwithstanding any other law to the contrary, a vendor of medical care

shall not be subject to any civil or criminal liability for providing access to medical records

to the commissioner of human services pursuant to this section.

Sec. 30.

Minnesota Statutes 2025 Supplement, section 260E.03, subdivision 6, is amended

to read:

Subd. 6.

Facility.

"Facility" means:

(1) a licensed or unlicensed day care facility, certified license-exempt child care center,

residential facility, agency,
new text begin
psychiatric residential treatment facility,
new text end
hospital, sanitarium,

or other facility or institution required to be licensed under sections
144.50
to
144.58
,

241.021
, or
245A.01
to
245A.16
, or chapter 142B, 142C, 144H, or 245D;

(2) a school as defined in section
120A.05, subdivisions 9
, 11, and 13; and chapter 124E;

or

(3) a nonlicensed personal care provider organization as defined in section
256B.0625
,

subdivision 19a.

Sec. 31.

Minnesota Statutes 2025 Supplement, section 260E.11, subdivision 1, is amended

to read:

Subdivision 1.

Reports of maltreatment in facility.

A person mandated to report child

maltreatment occurring within a licensed facility shall report the information to the agency

responsible for licensing or certifying the facility under sections
144.50
to
144.58
,
241.021
,

and
245A.01
to
245A.16
or chapter 142B, 142C, 144H, or 245D or to a nonlicensed personal

care provider organization as defined in section
256B.0625, subdivision 19a
.
new text begin
A person

mandated to report child maltreatment occurring within a federally certified psychiatric

residential treatment facility must report the information to the Department of Health.
new text end

Sec. 32.

Minnesota Statutes 2025 Supplement, section 260E.14, subdivision 1, is amended

to read:

Subdivision 1.

Facilities and schools.

(a) The local welfare agency is the agency

responsible for investigating allegations of maltreatment in child foster care, family child

care, legally nonlicensed child care, and reports involving children served by an unlicensed

personal care provider organization under section
256B.0659
. Copies of findings related to

personal care provider organizations under section
256B.0659
must be forwarded to the

Department of Human Services provider enrollment.

(b) The Department of Human Services is the agency responsible for screening and

investigating allegations of maltreatment in juvenile correctional facilities listed under

section
241.021
located in the local welfare agency's county and in facilities licensed or

certified under chapters 245A and 245D
new text begin
, except federally certified psychiatric residential

treatment facilities
new text end
.

(c) The Department of Health is the agency responsible for screening and investigating

allegations of maltreatment in facilities licensed under sections
144.50
to
144.58
and
144A.43

to
144A.482

deleted text begin
or
deleted text end
new text begin
,
new text end
chapter 144H
new text begin
, or federally certified as a psychiatric residential treatment

facility
new text end
.

(d) The Department of Education is the agency responsible for screening and investigating

allegations of maltreatment in a school as defined in section
120A.05, subdivisions 9, 11,

and 13
, and chapter 124E. The Department of Education's responsibility to screen and

investigate includes allegations of maltreatment involving students 18 through 21 years of

age, including students receiving special education services, up to and including graduation

and the issuance of a secondary or high school diploma.

(e) The Department of Human Services is the agency responsible for screening and

investigating allegations of maltreatment of minors in an EIDBI agency operating under

sections
245A.142
and
256B.0949
.

(f) A health or corrections agency receiving a report may request the local welfare agency

to provide assistance pursuant to this section and sections
260E.20
and
260E.22
.

(g) The Department of Children, Youth, and Families is the agency responsible for

screening and investigating allegations of maltreatment in facilities or programs not listed

in paragraph (a) that are licensed or certified under chapters 142B and 142C.

Sec. 33.

Minnesota Statutes 2025 Supplement, section 626.5572, subdivision 13, is amended

to read:

Subd. 13.

Lead investigative agency.

"Lead investigative agency" is the primary

administrative agency responsible for investigating reports made under section
626.557
.

(a) The Department of Health is the lead investigative agency for facilities or services

licensed or required to be licensed as hospitals, home care providers, nursing homes, boarding

care homes, hospice providers, residential facilities that are also federally certified as

intermediate care facilities that serve people with developmental disabilities,
new text begin
federally

certified psychiatric residential treatment facilities,
new text end
or any other facility or service not listed

in this subdivision that is licensed or required to be licensed by the Department of Health

for the care of vulnerable adults. "Home care provider" has the meaning provided in section

144A.43, subdivision 4
, and applies when care or services are delivered in the vulnerable

adult's home.

(b) The Department of Human Services is the lead investigative agency for facilities or

services licensed or required to be licensed as adult day care, adult foster care, community

residential settings, programs for people with disabilities, EIDBI agencies, family adult day

services, mental health programs, mental health clinics, substance use disorder programs,

the Minnesota Sex Offender Program, or any other facility or service not listed in this

subdivision that is licensed or required to be licensed by the Department of Human Services
new text begin
,

except federally certified psychiatric residential treatment facilities
new text end
. The Department of

Human Services is also the lead investigative agency for unlicensed EIDBI agencies under

section
256B.0949
.

(c) The county social service agency or its designee is the lead investigative agency for

all other reports, including but not limited to reports involving vulnerable adults receiving

services from a personal care provider organization under section
256B.0659
.

Sec. 34.
new text begin
NEW BACKGROUND STUDIES FOR INDIVIDUALS NOT IN NETSTUDY

2.0.
new text end

new text begin

By March 1, 2027, the commissioner of human services and counties must conduct new

background studies for all individuals specified under Minnesota Statutes, section 245C.03,

subdivision 1, paragraph (a), clauses (2) to (6), and affiliated with a child foster family

setting license holder, adult foster care or family adult day services and with a family child

care license holder, or a legal nonlicensed child care provider authorized under Minnesota

Statutes, chapter 142E. The commissioner or county must follow the requirements in

Minnesota Statutes, section 245C.04, subdivision 1, paragraphs (e) and (f), when conducting

the background studies under this section. The new background studies must be submitted

through NETStudy 2.0.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective September 1, 2026.

new text end

Sec. 35.
new text begin
REPEALER.
new text end

new text begin

(a)

new text end

new text begin

Minnesota Statutes 2024, section 245A.02, subdivision 10b,

new text end

new text begin

is repealed.

new text end

new text begin

(b)

new text end

new text begin

Minnesota Statutes 2025 Supplement, section 245A.10, subdivision 3a,

new text end

new text begin

is repealed.

new text end

new text begin

(c)

new text end

new text begin

Minnesota Rules, part 9505.2165, subpart 4,

new text end

new text begin

is repealed.

new text end

APPENDIX

Repealed Minnesota Statutes: 26-06085

245A.02 DEFINITIONS.

Subd. 10b.

Owner.

"Owner" means an individual or organization that has a direct or indirect ownership interest of five percent or more in a program licensed under this chapter. For purposes of this subdivision, "direct ownership interest" means the possession of equity in capital, stock, or profits of an organization, and "indirect ownership interest" means a direct ownership interest in an entity that has a direct or indirect ownership interest in a licensed program. For purposes of this chapter, "owner of an employee stock ownership plan" means the president and treasurer of the entity. A government entity or nonprofit corporation that is issued a license under this chapter shall be designated the owner.

245A.10 FEES.

Subd. 3a.

Fee for change of ownership exception.

(a) A license holder must submit a fee of $2,100 for each license subject to the change in ownership exception under section
245A.043, subdivision 2
, paragraph (b).

(b) License holders under chapter 245D must submit a fee of $4,200 for each license subject to the change in ownership exception under section
245A.043, subdivision 2
, paragraph (b).

(c) A license holder for a children's residential facility must submit a fee of $500 for each license subject to the change in ownership exception under section
245A.043, subdivision 2
, paragraph (b).

256B.0759 SUBSTANCE USE DISORDER DEMONSTRATION PROJECT.

Subd. 2.

Provider participation.

(a) Programs licensed by the Department of Human Services as nonresidential substance use disorder treatment programs that receive payment under this chapter must enroll as demonstration project providers and meet the requirements of subdivision 3 by January 1, 2025. Programs that do not meet the requirements of this paragraph are ineligible for payment for services provided under section
256B.0625
.

(b) Programs licensed by the Department of Human Services as residential treatment programs according to section
245G.21
that receive payment under this chapter must enroll as demonstration project providers and meet the requirements of subdivision 3 by January 1, 2024. Programs that do not meet the requirements of this paragraph are ineligible for payment for services provided under section
256B.0625
.

(c) Programs licensed by the Department of Human Services as residential treatment programs according to section
245G.21
that receive payment under this chapter, are licensed as a hospital under sections
144.50
to
144.581
, and provide only ASAM 3.7 medically monitored inpatient level of care are not required to enroll as demonstration project providers. Programs meeting these criteria must submit evidence of providing the required level of care to the commissioner to be exempt from enrolling in the demonstration.

(d) Programs licensed by the Department of Human Services as withdrawal management programs according to chapter 245F that receive payment under this chapter must enroll as demonstration project providers and meet the requirements of subdivision 3 by January 1, 2024. Programs that do not meet the requirements of this paragraph are ineligible for payment for services provided under section
256B.0625
.

(e) Out-of-state residential substance use disorder treatment programs that receive payment under this chapter must enroll as demonstration project providers and meet the requirements of subdivision 3 by January 1, 2024. Programs that do not meet the requirements of this paragraph are ineligible for payment for services provided under section
256B.0625
.

(f) Tribally licensed programs may elect to participate in the demonstration project and meet the requirements of subdivision 3. The Department of Human Services must consult with Tribal Nations to discuss participation in the substance use disorder demonstration project.

(g) The commissioner shall allow providers enrolled in the demonstration project before July 1, 2021, to receive applicable rate enhancements authorized under subdivision 4 for all services provided on or after the date of enrollment, except that the commissioner shall allow a provider to receive applicable rate enhancements authorized under subdivision 4 for services provided on or after July 22, 2020, to fee-for-service enrollees, and on or after January 1, 2021, to managed care enrollees, if the provider meets all of the following requirements:

(1) the provider attests that during the time period for which the provider is seeking the rate enhancement, the provider took meaningful steps in their plan approved by the commissioner to meet the demonstration project requirements in subdivision 3; and

(2) the provider submits attestation and evidence, including all information requested by the commissioner, of meeting the requirements of subdivision 3 to the commissioner in a format required by the commissioner.

(h) The commissioner may recoup any rate enhancements paid under paragraph (g) to a provider that does not meet the requirements of subdivision 3 by July 1, 2021.

Subd. 5.

Federal approval.

The commissioner shall seek federal approval to implement the demonstration project under this section and to receive federal financial participation.

256B.5012 ICF/DD PAYMENT SYSTEM IMPLEMENTATION.

Subd. 4.

ICF/DD rate increases beginning July 1, 2001, and July 1, 2002.

(a) For the rate years beginning July 1, 2001, and July 1, 2002, the commissioner shall make available to each facility reimbursed under this section an adjustment to the total operating payment rate of 3.5 percent. Of this adjustment, two-thirds must be used as provided under paragraph (b) and one-third must be used for operating costs.

(b) The adjustment under this paragraph must be used to increase the wages and benefits and pay associated costs of all employees except administrative and central office employees, provided that this increase must be used only for wage and benefit increases implemented on or after the first day of the rate year and must not be used for increases implemented prior to that date.

(c) For each facility, the commissioner shall make available an adjustment using the percentage specified in paragraph (a) multiplied by the total payment rate, excluding the property-related payment rate, in effect on the preceding June 30. The total payment rate shall include the adjustment provided in section
256B.501, subdivision 12
.

(d) A facility whose payment rates are governed by closure agreements, receivership agreements, or Minnesota Rules, part
9553.0075
, is not eligible for an adjustment otherwise granted under this subdivision.

(e) A facility may apply for the payment rate adjustment provided under paragraph (b). The application must be made to the commissioner and contain a plan by which the facility will distribute the adjustment in paragraph (b) to employees of the facility. For facilities in which the employees are represented by an exclusive bargaining representative, an agreement negotiated and agreed to by the employer and the exclusive bargaining representative constitutes the plan. A negotiated agreement may constitute the plan only if the agreement is finalized after the date of enactment of all rate increases for the rate year. The commissioner shall review the plan to ensure that the payment rate adjustment per diem is used as provided in this subdivision. To be eligible, a facility must submit its plan by March 31, 2002, and March 31, 2003, respectively. If a facility's plan is effective for its employees after the first day of the applicable rate year that the funds are available, the payment rate adjustment per diem is effective the same date as its plan.

(f) A copy of the approved distribution plan must be made available to all employees by giving each employee a copy or by posting it in an area of the facility to which all employees have access. If an employee does not receive the wage and benefit adjustment described in the facility's approved plan and is unable to resolve the problem with the facility's management or through the employee's union representative, the employee may contact the commissioner at an address or telephone number provided by the commissioner and included in the approved plan.

Subd. 5.

Rate increase effective June 1, 2003.

For rate periods beginning on or after June 1, 2003, the commissioner shall increase the total operating payment rate for each facility reimbursed under this section by $3 per day. The increase shall not be subject to any annual percentage increase.

Subd. 6.

ICF/DD rate increases October 1, 2005, and October 1, 2006.

(a) For the rate periods beginning October 1, 2005, and October 1, 2006, the commissioner shall make available to each facility reimbursed under this section an adjustment to the total operating payment rate of 2.2553 percent.

(b) 75 percent of the money resulting from the rate adjustment under paragraph (a) must be used to increase wages and benefits and pay associated costs for employees, except for administrative and central office employees. 75 percent of the money received by a facility as a result of the rate adjustment provided in paragraph (a) must be used only for wage, benefit, and staff increases implemented on or after the effective date of the rate increase each year, and must not be used for increases implemented prior to that date. The wage adjustment eligible employees may receive may vary based on merit, seniority, or other factors determined by the provider.

(c) For each facility, the commissioner shall make available an adjustment, based on occupied beds, using the percentage specified in paragraph (a) multiplied by the total payment rate, including variable rate but excluding the property-related payment rate, in effect on the preceding day. The total payment rate shall include the adjustment provided in section
256B.501, subdivision 12
.

(d) A facility whose payment rates are governed by closure agreements or receivership agreements is not eligible for an adjustment otherwise granted under this subdivision.

(e) A facility may apply for the portion of the payment rate adjustment provided under paragraph (a) for employee wages and benefits and associated costs. The application must be made to the commissioner and contain a plan by which the facility will distribute the funds according to paragraph (b). For facilities in which the employees are represented by an exclusive bargaining representative, an agreement negotiated and agreed to by the employer and the exclusive bargaining representative constitutes the plan. A negotiated agreement may constitute the plan only if the agreement is finalized after the date of enactment of all rate increases for the rate year. The commissioner shall review the plan to ensure that the payment rate adjustment per diem is used as provided in this subdivision. To be eligible, a facility must submit its plan by March 31, 2006, and December 31, 2006, respectively. If a facility's plan is effective for its employees after the first day of the applicable rate period that the funds are available, the payment rate adjustment per diem is effective the same date as its plan.

(f) A copy of the approved distribution plan must be made available to all employees by giving each employee a copy or by posting it in an area of the facility to which all employees have access. If an employee does not receive the wage and benefit adjustment described in the facility's approved plan and is unable to resolve the problem with the facility's management or through the employee's union representative, the employee may contact the commissioner at an address or telephone number provided by the commissioner and included in the approved plan.

Subd. 7.

ICF/DD rate increases effective October 1, 2007, and October 1, 2008.

(a) For the rate year beginning October 1, 2007, the commissioner shall make available to each facility reimbursed under this section operating payment rate adjustments equal to 2.0 percent of the operating payment rates in effect on September 30, 2007. For the rate year beginning October 1, 2008, the commissioner shall make available to each facility reimbursed under this section operating payment rate adjustments equal to 2.0 percent of the operating payment rates in effect on September 30, 2008. For each facility, the commissioner shall make available an adjustment, based on occupied beds, using the percentage specified in this paragraph multiplied by the total payment rate, including the variable rate but excluding the property-related payment rate, in effect on the preceding day. The total payment rate shall include the adjustment provided in section
256B.501, subdivision 12
. A facility whose payment rates are governed by closure agreements or receivership agreements is not eligible for an adjustment otherwise granted under this subdivision.

(b) Seventy-five percent of the money resulting from the rate adjustments under paragraph (a) must be used for increases in compensation-related costs for employees directly employed by the facility on or after the effective date of the rate adjustments, except:

(1) the administrator;

(2) persons employed in the central office of a corporation that has an ownership interest in the facility or exercises control over the facility; and

(3) persons paid by the facility under a management contract.

(c) Two-thirds of the money available under paragraph (b) must be used for wage increases for all employees directly employed by the facility on or after the effective date of the rate adjustments, except those listed in paragraph (b), clauses (1) to (3). The wage adjustment that employees receive under this paragraph must be paid as an equal hourly percentage wage increase for all eligible employees. All wage increases under this paragraph must be effective on the same date. Only costs associated with the portion of the equal hourly percentage wage increase that goes to all employees shall qualify under this paragraph. Costs associated with wage increases in excess of the amount of the equal hourly percentage wage increase provided to all employees shall be allowed only for meeting the requirements in paragraph (b). This paragraph shall not apply to employees covered by a collective bargaining agreement.

(d) The commissioner shall allow as compensation-related costs all costs for:

(1) wages and salaries;

(2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers' compensation;

(3) the employer's share of health and dental insurance, life insurance, disability insurance, long-term care insurance, uniform allowance, and pensions; and

(4) other benefits provided, subject to the approval of the commissioner.

(e) The portion of the rate adjustments under paragraph (a) that is not subject to the requirements in paragraphs (b) and (c) shall be provided to facilities effective October 1 of each year.

(f) Facilities may apply for the portion of the rate adjustments under paragraph (a) that is subject to the requirements in paragraphs (b) and (c). The application must be submitted to the commissioner within six months of the effective date of the rate adjustments, and the facility must provide additional information required by the commissioner within nine months of the effective date of the rate adjustments. The commissioner must respond to all applications within three weeks of receipt. The commissioner may waive the deadlines in this paragraph under extraordinary circumstances, to be determined at the sole discretion of the commissioner. The application must contain:

(1) an estimate of the amounts of money that must be used as specified in paragraphs (b) and (c);

(2) a detailed distribution plan specifying the allowable compensation-related and wage increases the facility will implement to use the funds available in clause (1);

(3) a description of how the facility will notify eligible employees of the contents of the approved application, which must provide for giving each eligible employee a copy of the approved application, excluding the information required in clause (1), or posting a copy of the approved application, excluding the information required in clause (1), for a period of at least six weeks in an area of the facility to which all eligible employees have access; and

(4) instructions for employees who believe they have not received the compensation-related or wage increases specified in clause (2), as approved by the commissioner, and which must include a mailing address, email address, and the telephone number that may be used by the employee to contact the commissioner or the commissioner's representative.

(g) The commissioner shall ensure that cost increases in distribution plans under paragraph (f), clause (2), that may be included in approved applications, comply with requirements in clauses (1) to (4):

(1) costs to be incurred during the applicable rate year resulting from wage and salary increases effective after October 1, 2006, and prior to the first day of the facility's payroll period that includes October 1 of each year shall be allowed if they were not used in the prior year's application and they meet the requirements of paragraphs (b) and (c);

(2) a portion of the costs resulting from tenure-related wage or salary increases may be considered to be allowable wage increases, according to formulas that the commissioner shall provide, where employee retention is above the average statewide rate of retention of direct care employees;

(3) the annualized amount of increases in costs for the employer's share of health and dental insurance, life insurance, disability insurance, and workers' compensation shall be allowable compensation-related increases if they are effective on or after April 1 of the year in which the rate adjustments are effective and prior to April 1 of the following year; and

(4) for facilities in which employees are represented by an exclusive bargaining representative, the commissioner shall approve the application only upon receipt of a letter of acceptance of the distribution plan, as regards members of the bargaining unit, signed by the exclusive bargaining agent and dated after May 25, 2007. Upon receipt of the letter of acceptance, the commissioner shall deem all requirements of this section as having been met in regard to the members of the bargaining unit.

(h) The commissioner shall review applications received under paragraph (f) and shall provide the portion of the rate adjustments under paragraphs (b) and (c) if the requirements of this subdivision have been met. The rate adjustments shall be effective October 1 of each year. Notwithstanding paragraph (a), if the approved application distributes less money than is available, the amount of the rate adjustment shall be reduced so that the amount of money made available is equal to the amount to be distributed.

Subd. 8.

ICF/DD rate decreases effective July 1, 2009.

Effective July 1, 2009, the commissioner shall decrease each facility reimbursed under this section operating payment adjustments equal to 2.58 percent of the operating payment rates in effect on June 30, 2009. For each facility, the commissioner shall implement the rate reduction, based on occupied beds, using the percentage specified in this subdivision multiplied by the total payment rate, including the variable rate but excluding the property-related payment rate, in effect on the preceding date. The total rate reduction shall include the adjustment provided in subdivision 7.

Subd. 9.

ICF/DD rate increase effective July 1, 2011; Clearwater County.

Effective July 1, 2011, the commissioner shall increase the daily rate to $138.23 at an intermediate care facility for the developmentally disabled located in Clearwater County and classified as a class A facility with 15 beds.

Subd. 10.

ICF/DD rate decrease effective July 1, 2011; exception for Clearwater County.

For each facility reimbursed under this section, except for a facility located in Clearwater County and classified as a class A facility with 15 beds, the commissioner shall decrease operating payment rates equal to 0.095 percent of the operating payment rates in effect on June 30, 2011. For each facility, the commissioner shall apply the rate reduction, based on occupied beds, using the percentage specified in this subdivision multiplied by the total payment rate, including the variable rate but excluding the property-related payment rate, in effect on the preceding date. The total rate reduction shall include the adjustment provided in section
256B.501, subdivision 12
.

Subd. 11.

ICF/DD rate decrease effective July 1, 2011.

For each facility reimbursed under this section, the commissioner shall decrease operating payments equal to 1.5 percent of the operating payment rates in effect on June 30, 2011. For each facility, the commissioner shall apply the rate reduction, based on occupied beds, using the percentage specified in this subdivision multiplied by the total payment rate, including the variable rate but excluding the property-related payment rate, in effect on the preceding date. The total rate reduction shall include the adjustment provided in section
256B.501
, subdivision 12.

Subd. 12.

ICF/DD rate increase effective July 1, 2013.

For each facility reimbursed under this section, the commissioner shall increase operating payments equal to one-half percent of the operating payment rates in effect on June 30, 2013. For each facility, the commissioner shall apply the rate increase, based on occupied beds, using the percentage specified in this subdivision multiplied by the total payment rate, including the variable rate but excluding the property-related payment rate, in effect on the preceding date. The total rate increase shall include the adjustment provided in section
256B.501
, subdivision 12.

Subd. 14.

Rate increase effective June 1, 2013.

For rate periods beginning on or after June 1, 2013, the commissioner shall increase the total operating payment rate for each facility reimbursed under this section by $7.81 per day. The increase shall not be subject to any annual percentage increase.

Subd. 15.

ICF/DD rate increases effective April 1, 2014.

(a) Notwithstanding subdivision 12, for each facility reimbursed under this section, for the rate period beginning April 1, 2014, the commissioner shall increase operating payments equal to one percent of the operating payment rates in effect on March 31, 2014.

(b) For each facility, the commissioner shall apply the rate increase based on occupied beds, using the percentage specified in this subdivision multiplied by the total payment rate, including the variable rate, but excluding the property-related payment rate in effect on the preceding date. The total rate increase shall include the adjustment provided in section
256B.501, subdivision 12
.

Subd. 16.

ICF/DD rate increases effective July 1, 2014.

(a) For the rate period beginning July 1, 2014, the commissioner shall increase operating payments for each facility reimbursed under this section equal to five percent of the operating payment rates in effect on June 30, 2014.

(b) For each facility, the commissioner shall apply the rate increase based on occupied beds, using the percentage specified in this subdivision multiplied by the total payment rate, including the variable rate but excluding the property-related payment rate in effect on June 30, 2014. The total rate increase shall include the adjustment provided in section
256B.501, subdivision 12
.

(c) To receive the rate increase under paragraph (a), each facility reimbursed under this section must submit to the commissioner documentation that identifies a quality improvement project that the facility will implement by June 30, 2015. Documentation must be provided in a format specified by the commissioner. Projects must:

(1) improve the quality of life of intermediate care facility residents in a meaningful way;

(2) improve the quality of services in a measurable way; or

(3) deliver good quality service more efficiently while using the savings to enhance services for the participants served.

(d) For a facility that fails to submit the documentation described in paragraph (c) by a date or in a format specified by the commissioner, the commissioner shall reduce the facility's rate by one percent effective January 1, 2015.

(e) Facilities that receive a rate increase under this subdivision shall use 80 percent of the additional revenue to increase compensation-related costs for employees directly employed by the facility on or after July 1, 2014, except:

(1) persons employed in the central office of a corporation or entity that has an ownership interest in the facility or exercises control over the facility; and

(2) persons paid by the facility under a management contract.

This requirement is subject to audit by the commissioner.

(f) Compensation-related costs include:

(1) wages and salaries;

(2) the employer's share of FICA taxes, Medicare taxes, state and federal unemployment taxes, workers' compensation, and mileage reimbursement;

(3) the employer's share of health and dental insurance, life insurance, disability insurance, long-term care insurance, uniform allowance, pensions, and contributions to employee retirement accounts; and

(4) other benefits provided and workforce needs, including the recruiting and training of employees as specified in the distribution plan required under paragraph (i).

(g) For public employees under a collective bargaining agreement, the increase for wages and benefits is available and pay rates must be increased only to the extent that the increases comply with laws governing public employees' collective bargaining. Money received by a facility under paragraph (e) for pay increases for public employees must be used only for pay increases implemented between July 1, 2014, and August 1, 2014.

(h) For a facility that has employees that are represented by an exclusive bargaining representative, the provider shall obtain a letter of acceptance of the distribution plan required under paragraph (i), in regard to the members of the bargaining unit, signed by the exclusive bargaining agent. Upon receipt of the letter of acceptance, the facility shall be deemed to have met all the requirements of this subdivision in regard to the members of the bargaining unit. Upon request, the facility shall produce the letter of acceptance for the commissioner.

(i) A facility that receives a rate adjustment under paragraph (a) that is subject to paragraph (e) shall prepare, and upon request submit to the commissioner, a distribution plan that specifies the amount of money the facility expects to receive that is subject to the requirements of paragraph (e), including how that money will be distributed to increase compensation for employees. The commissioner may recover funds from a facility that fails to comply with this requirement.

(j) By January 1, 2015, the facility shall post the distribution plan required under paragraph (i) for a period of at least six weeks in an area of the facility's operation to which all eligible employees have access and shall provide instructions for employees who do not believe they have received the wage and other compensation-related increases specified in the distribution plan. The instructions must include a mailing address, email address, and telephone number that an employee may use to contact the commissioner or the commissioner's representative.

256D.09 PAYMENT; ASSESSMENT; OVERPAYMENT.

Subd. 2a.

Vendor payments for drug dependent persons.

If, at the time of application or at any other time, there is a reasonable basis for questioning whether a person applying for or receiving financial assistance is drug dependent, as defined in section
254A.02, subdivision 5
, the person shall be referred for a chemical health assessment, and only emergency assistance payments or general assistance vendor payments may be provided until the assessment is complete and the results of the assessment made available to the county agency. A reasonable basis for referring an individual for an assessment exists when:

(1) the person has required detoxification two or more times in the past 12 months;

(2) the person appears intoxicated at the county agency as indicated by two or more of the following:

(i) the odor of alcohol;

(ii) slurred speech;

(iii) disconjugate gaze;

(iv) impaired balance;

(v) difficulty remaining awake;

(vi) consumption of alcohol;

(vii) responding to sights or sounds that are not actually present;

(viii) extreme restlessness, fast speech, or unusual belligerence;

(3) the person has been involuntarily committed for drug dependency at least once in the past 12 months; or

(4) the person has received treatment, including domiciliary care, for drug abuse or dependency at least twice in the past 12 months.

The assessment and determination of drug dependency, if any, must be made by an assessor qualified under section
245G.11
, subdivisions 1 and 5, to perform an assessment of chemical use. The county shall only provide emergency general assistance or vendor payments to an otherwise eligible applicant or recipient who is determined to be drug dependent, except up to 15 percent of the grant amount the person would otherwise receive may be paid in cash. Notwithstanding subdivision 1, the commissioner of human services shall also require county agencies to provide assistance only in the form of vendor payments to all eligible recipients who assert substance use disorder as a basis for eligibility under section
256D.05, subdivision 1
, paragraph (a), clauses (1) and (5).

The determination of drug dependency shall be reviewed at least every 12 months. If the county determines a recipient is no longer drug dependent, the county may cease vendor payments and provide the recipient payments in cash.

Subd. 2b.

Disability verification; substance use disorder.

If at any time there is verification that the client's disability is dependent upon the client's continued drug addiction or alcoholism, general assistance for rent and utilities must be made in the form of vendor payments.

Verification of drug addiction or alcoholism can be received from:

(1) denial of Social Security benefits based on drug addiction or alcoholism;

(2) a statement from the state medical review team that the person's disability is dependent upon continued drug addiction or alcoholism; or

(3) a doctor's statement that the person's disability is dependent upon continued drug addiction or alcoholism.

256K.45 HOMELESS YOUTH ACT.

Subd. 2.

Homeless youth report.

(a) The commissioner shall prepare a biennial report, beginning February 1, 2025, which provides meaningful information to the chairs and ranking minority members of the legislative committees with jurisdiction over homeless youth, that includes but is not limited to: (1) a list of the areas of the state with the greatest need for services and housing for homeless youth, and the level and nature of the needs identified; (2) details about grants made, including shelter-linked youth mental health grants under section
256K.46
; (3) the distribution of funds throughout the state based on population need; (4) follow-up information, if available, on the status of homeless youth and whether they have stable housing two years after services are provided; and (5) any other outcomes for populations served to determine the effectiveness of the programs and use of funding.

(b) This subdivision expires December 31, 2034.

626.557 REPORTING OF MALTREATMENT OF VULNERABLE ADULTS.

Subd. 10.

Duties of county social service agency.

(a) When the common entry point refers a report to the county social service agency as the lead investigative agency or makes a referral to the county social service agency for emergency adult protective services, or when another lead investigative agency requests assistance from the county social service agency for adult protective services, the county social service agency shall immediately assess and offer emergency and continuing protective social services for purposes of preventing further maltreatment and for safeguarding the welfare of the maltreated vulnerable adult. The county shall use standardized tools and the data system made available by the commissioner. The information entered by the county into the standardized tool must be accessible to the Department of Human Services. In cases of suspected sexual abuse, the county social service agency shall immediately arrange for and make available to the vulnerable adult appropriate medical examination and treatment. When necessary in order to protect the vulnerable adult from further harm, the county social service agency shall seek authority to remove the vulnerable adult from the situation in which the maltreatment occurred. The county social service agency may also investigate to determine whether the conditions which resulted in the reported maltreatment place other vulnerable adults in jeopardy of being maltreated and offer protective social services that are called for by its determination.

(b) Within five business days of receipt of a report screened in by the county social service agency for investigation, the county social service agency shall determine whether, in addition to an assessment and services for the vulnerable adult, to also conduct an investigation for final disposition of the individual or facility alleged to have maltreated the vulnerable adult.

(c) The county social service agency must investigate for a final disposition the individual or facility alleged to have maltreated a vulnerable adult for each report accepted as lead investigative agency involving an allegation of abuse, caregiver neglect that resulted in harm to the vulnerable adult, financial exploitation that may be criminal, or an allegation against a caregiver under chapter 256B.

(d) An investigating county social service agency must make a final disposition for any allegation when the county social service agency determines that a final disposition may safeguard a vulnerable adult or may prevent further maltreatment.

(e) If the county social service agency learns of an allegation listed in paragraph (c) after the determination in paragraph (a), the county social service agency must change the initial determination and conduct an investigation for final disposition of the individual or facility alleged to have maltreated the vulnerable adult.

(f) County social service agencies may enter facilities and inspect and copy records as part of an investigation. The county social service agency has access to not public data, as defined in section
13.02
, and medical records under sections
144.291
to 144.298, that are maintained by facilities to the extent necessary to conduct its investigation. The inquiry is not limited to the written records of the facility, but may include every other available source of information.

(g) When necessary in order to protect a vulnerable adult from serious harm, the county social service agency shall immediately intervene on behalf of that adult to help the family, vulnerable adult, or other interested person by seeking any of the following:

(1) a restraining order or a court order for removal of the perpetrator from the residence of the vulnerable adult pursuant to section
518B.01
;

(2) the appointment of a guardian or conservator pursuant to sections
524.5-101
to
524.5-502
, or guardianship or conservatorship pursuant to chapter 252A;

(3) replacement of a guardian or conservator suspected of maltreatment and appointment of a suitable person as guardian or conservator, pursuant to sections
524.5-101
to
524.5-502
; or

(4) a referral to the prosecuting attorney for possible criminal prosecution of the perpetrator under chapter 609.

The expenses of legal intervention must be paid by the county in the case of indigent persons, under section
524.5-502
and chapter 563.

In proceedings under sections
524.5-101
to
524.5-502
, if a suitable relative or other person is not available to petition for guardianship or conservatorship, a county employee shall present the petition with representation by the county attorney. The county shall contract with or arrange for a suitable person or organization to provide ongoing guardianship services. If the county presents evidence to the court exercising probate jurisdiction that it has made a diligent effort and no other suitable person can be found, a county employee may serve as guardian or conservator. The county shall not retaliate against the employee for any action taken on behalf of the person subject to guardianship or conservatorship, even if the action is adverse to the county's interest. Any person retaliated against in violation of this subdivision shall have a cause of action against the county and shall be entitled to reasonable attorney fees and costs of the action if the action is upheld by the court.

Repealed Minnesota Rule: 26-06085

9505.2165 DEFINITIONS.

§

Subp. 4.

Fraud.

"Fraud" means:

§

A.

acts which constitute a crime against any program, or attempts or conspiracies to commit those crimes, including the following:

§

(1)

theft in violation of Minnesota Statutes, section
609.52
;

§

(2)

perjury in violation of Minnesota Statutes, section
609.48
;

§

(3)

aggravated forgery and forgery in violation of Minnesota Statutes, sections
609.625
and
609.63
;

§

(4)

medical assistance fraud in violation of Minnesota Statutes, section
609.466
; and

§

(5)

financial transaction card fraud in violation of Minnesota Statutes, section
609.821
;

§

B.

making a false statement, false claim, or false representation to a program where the person knows or should reasonably know the statement, claim, or representation is false, including knowingly and willfully submitting a false or fraudulent application for provider status; and

§

C.

a felony listed in United States Code, title 42, section 1320a-7b(b)(3)(D), subject to any safe harbors established in Code of Federal Regulations, title 42, part 1001, section 952.