Plain English Breakdown
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SF3734 • 2026
Intensive residential treatment services and intensive nonresidential rehabilitative mental health services requirements modification
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
The plain English breakdown is still being put together. The official documents below are already here.
Introduction and first reading
Intensive residential treatment services and intensive nonresidential rehabilitative mental health services requirements modification
A bill for an act relating to human services; modifying intensive residential treatment services and intensive nonresidential rehabilitative mental health services requirements; specifying that room and board services provided through intensive residential treatment services and residential crisis services are eligible for behavioral health fund payment; amending Minnesota Statutes 2024, section 256B.0947, subdivision 5; Minnesota Statutes 2025 Supplement, sections 245I.23, subdivision 7; 254B.04, subdivision 1a. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. Minnesota Statutes 2025 Supplement, section 245I.23, subdivision 7, is amended to read: Subd. 7. Intensive residential treatment services assessment and treatment planning. (a) Within 12 hours of a client's admission, the license holder must evaluate and document the client's immediate needs, including the client's: (1) health and safety, including the client's need for crisis assistance; (2) responsibilities for children, family and other natural supports, and employers; and (3) housing and legal issues. (b) Within 24 hours of the client's admission, the license holder must complete an initial treatment plan for the client. The license holder must: (1) base the client's initial treatment plan on the client's referral information and an assessment of the client's immediate needs; (2) consider crisis assistance strategies that have been effective for the client in the past; (3) identify the client's initial treatment goals, measurable treatment objectives, and specific interventions that the license holder will use to help the client engage in treatment; (4) identify the participants involved in the client's treatment planning. The client must be a participant; and (5) ensure that a treatment supervisor approves of the client's initial treatment plan if a behavioral health practitioner or clinical trainee completes the client's treatment plan, notwithstanding section 245I.08, subdivision 3 . (c) According to section 245A.65, subdivision 2 , paragraph (b), the license holder must complete an individual abuse prevention plan as part of a client's initial treatment plan. (d) Within five days of the client's admission and again within 60 days after the client's admission, the license holder must complete a level of care assessment of the client. If the license holder determines that a client does not need a medically monitored level of service, a treatment supervisor must document how the client's admission to and continued services in intensive residential treatment services are medically necessary for the client. (e) Within ten days of a client's admission, new text begin excluding weekends and holidays, new text end the license holder must complete or review and update the client's standard diagnostic assessment. (f) Within ten days of a client's admission, the license holder must complete the client's individual treatment plan, notwithstanding section 245I.10, subdivision 8 . Within 40 days after the client's admission and again within 70 days after the client's admission, the license holder must update the client's individual treatment plan. The license holder must focus the client's treatment planning on preparing the client for a successful transition from intensive residential treatment services to another setting. In addition to the required elements of an individual treatment plan under section 245I.10, subdivision 8 , the license holder must identify the following information in the client's individual treatment plan: (1) the client's referrals and resources for the client's health and safety; and (2) the staff persons who are responsible for following up with the client's referrals and resources. If the client does not receive a referral or resource that the client needs, the license holder must document the reason that the license holder did not make the referral or did not connect the client to a particular resource. The license holder is responsible for determining whether additional follow-up is required on behalf of the client. (g) Within 30 days of the client's admission, the license holder must complete a functional assessment of the client. Within 60 days after the client's admission, the license holder must update the client's functional assessment to include any changes in the client's functioning and symptoms. (h) For a client with a current substance use disorder diagnosis and for a client whose substance use disorder screening in the client's standard diagnostic assessment indicates the possibility that the client has a substance use disorder, the license holder must complete a written assessment of the client's substance use within 30 days of the client's admission. In the substance use assessment, the license holder must: (1) evaluate the client's history of substance use, relapses, and hospitalizations related to substance use; (2) assess the effects of the client's substance use on the client's relationships including with family member and others; (3) identify financial problems, health issues, housing instability, and unemployment; (4) assess the client's legal problems, past and pending incarceration, violence, and victimization; and (5) evaluate the client's suicide attempts, noncompliance with taking prescribed medications, and noncompliance with psychosocial treatment. (i) On a weekly basis, a mental health professional or certified rehabilitation specialist must review each client's treatment plan and individual abuse prevention plan. The license holder must document in the client's file each weekly review of the client's treatment plan and individual abuse prevention plan. Sec. 2. Minnesota Statutes 2025 Supplement, section 254B.04, subdivision 1a, is amended to read: Subd. 1a. Client eligibility. (a) Persons eligible for benefits under Code of Federal Regulations, title 25, part 20, who meet the income standards of section 256B.056, subdivision 4 , and are not enrolled in medical assistance, are entitled to behavioral health fund services. State money appropriated for this paragraph must be placed in a separate account established for this purpose. (b) Persons with dependent children who are determined to be in need of substance use disorder treatment pursuant to an assessment under section 260E.20, subdivision 1 , or in need of chemical dependency treatment pursuant to a case plan under section 260C.201, subdivision 6 , or 260C.212 , shall be assisted by the commissioner to access needed treatment services. Treatment services must be appropriate for the individual or family, which may include long-term care treatment or treatment in a facility that allows the dependent children to stay in the treatment facility. The county shall pay for out-of-home placement costs, if applicable. (c) Notwithstanding paragraph (a), any person enrolled in medical assistance or MinnesotaCare is eligible for room and board services under section 254B.0505, subdivision 1 , clause (9). (d) A client is eligible to have substance use disorder treatment paid for with funds from the behavioral health fund when the client: (1) is eligible for MFIP as determined under chapter 142G; (2) is eligible for medical assistance as determined under Minnesota Rules, parts 9505.0010 to 9505.0140 ; (3) is eligible for general assistance, general assistance medical care, or work readiness as determined under Minnesota Rules, parts 9500.1200 to 9500.1272 ; or (4) has income that is within current household size and income guidelines for entitled persons, as defined in this subdivision and subdivision 7. (e) Clients who meet the financial eligibility requirement in paragraph (a) and who have a third-party payment source are eligible for the behavioral health fund if the third-party payment source pays less than 100 percent of the cost of treatment services for eligible clients. (f) A client is ineligible to have substance use disorder treatment services paid for with behavioral health fund money if the client: (1) has an income that exceeds current household size and income guidelines for entitled persons as defined in this subdivision and subdivision 7; or (2) has an available third-party payment source that will pay the total cost of the client's treatment. (g) A client who is disenrolled from a state prepaid health plan during a treatment episode is eligible for continued treatment service that is paid for by the behavioral health fund until the treatment episode is completed or the client is re-enrolled in a state prepaid health plan if the client: (1) continues to be enrolled in MinnesotaCare, medical assistance, or general assistance medical care; or (2) is eligible according to paragraphs (a) and (b) and is determined eligible by the commissioner under section 254B.04 . (h) When a county commits a client under chapter 253B to a regional treatment center for substance use disorder services and the client is ineligible for the behavioral health fund, the county is responsible for the payment to the regional treatment center according to section 254B.0501, subdivision 3 . (i) new text begin Notwithstanding any laws to the contrary, new text end persons enrolled in MinnesotaCare new text begin or medical assistance new text end are eligible for room and board services when provided through intensive residential treatment services and residential crisis services under section 256B.0632 new text begin and chapter 245I new text end . (j) A person is eligible for one 60-consecutive-calendar-day period per year. A person may submit a request for additional eligibility to the commissioner. A person denied additional eligibility under this paragraph may request a state agency hearing under section 256.045 . Sec. 3. 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) an advanced-practice registered nurse with certification in psychiatric or mental health care or a board-certified deleted text begin child and adolescent deleted text end psychiatrist, either of which must be credentialed to prescribe medications; (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; deleted text begin and deleted text end (ix) a family peer specialist as defined in subdivision 2, paragraph (j) deleted text begin . deleted text end new text begin ; and new text end new text begin (x) a registered nurse, as defined in section 148.171, subdivision 20. new text end (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.