Commissioner of human services requirement to provide an estimate of departmental earnings

A bill for an act

relating to human services; requiring the commissioner of human services to

provide an estimate of departmental earnings; appropriating money for human

services program implementation, administrative oversight, internal controls, and

organizational capacity.

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

Section 1.
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DIRECTION TO COMMISSIONER OF HUMAN SERVICES; ESTIMATE

OF REQUIRED DEPARTMENTAL EARNINGS.
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By January 15, 2027, and again by January 15, 2028, the commissioner of human services

must submit to the chairs and ranking minority members of the legislative committees with

jurisdiction over human services an estimate of the departmental earnings, as defined under

Minnesota Statutes, section 16A.1285, subdivision 1, required to ensure that all department

activities funded through fees will be fully funded only by fee revenue in the fiscal year

following the submission deadline. The commissioner must itemize the required departmental

earnings by fee-funded activity, including licensing activities, program integrity activities,

background studies, criminal background checks, medical assistance provider enrollment

activities, and provider compliance training. The estimate of required departmental earnings

must include any costs that are currently or forecasted to be subsidized by any general fund

appropriation to the commissioner. If the commissioner must use a cost allocation

methodology to isolate and account for the departmental earnings required to fully fund

each activity without relying on any subsidy from other money appropriated to the

commissioner, the commissioner must include a description of the cost allocation method

used to complete the report. The commissioner must include in each report any fee increases

necessary to meet the departmental earnings estimates.

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Sec. 2.
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APPROPRIATION; ESTIMATE OF REQUIRED DEPARTMENTAL

EARNINGS REPORTS.
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$....... in fiscal year 2026 is appropriated to the commissioner of human services for the

estimates of the required departmental earnings reports due to the legislature during fiscal

years 2027 and 2028.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 3.
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APPROPRIATIONS; IMPLEMENTATION AND OVERSIGHT OF HUMAN

SERVICES PROGRAMS.
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$....... in fiscal year 2027 is appropriated from the general fund to the commissioner of

human services for timely, complete, and competent implementation, management, and

oversight of medical assistance and other programs under the jurisdiction of the

commissioner; development and implementation of internal controls; and maintaining

sufficient staff capacity to respond efficiently to changes in state and federal regulations

and statutory requirements. The general fund base for this appropriation is $....... in fiscal

year 2028 and $....... in fiscal year 2029. Of this amount:

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(1) $....... in fiscal year 2027 is for the Office of Inspector General for licensing,

background study, and program integrity services performed that are not funded by

appropriations from the state government special revenue fund and for centralized

enterprise-wide data and analytics capabilities. The general fund base for this appropriation

is $....... in fiscal year 2028 and $....... in fiscal year 2029;

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(2) $....... in fiscal year 2027 is for the Aging and Disability Services Administration for

performing lead agency waiver reviews; auditing nursing facility annual cost reports;

administering payment policy; providing guidance, training, and technical assistance on

best practices; and providing general program oversight and guidance;

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(3) $....... in fiscal year 2027 is for the Behavioral Health Administration for administering

payment policy; providing guidance, training, and technical assistance on best practices;

and providing general program oversight and guidance;

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(4) $....... in fiscal year 2027 is for the Health Care Administration for provider enrollment

activities that are not funded by an appropriation from the state government special revenue

fund, enrollee eligibility and access activities, and Medicaid payment activities. The general

fund base for this appropriation is $....... in fiscal year 2028 and $....... in fiscal year 2029;

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(5) $....... in fiscal year 2027 is for the Homelessness, Housing, and Support Services

Administration for administering payment policies; providing guidance, training, and

technical assistance on best practices; and providing general program oversight and guidance;

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(6) $....... in fiscal year 2027 is for management of grants across the department where

the existing grant authority does not provide sufficient administrative resources to train and

guide grantees and community partners on best practices and Office of Grants Management

policies and procedures; ensure efficient review, scoring, and awarding of grants; implement

best practices for grant oversight and monitoring of grantee activities and spending; and to

perform grant activity evaluations or reports. The general fund base for this appropriation

is $....... in fiscal year 2028 and $....... in fiscal year 2029;

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(7) $....... in fiscal year 2027 is for MNIT to implement modernization projects; provide

information technology project portfolio oversight; improve business processes; provide

secure and cost-effective information technology systems that support individuals who

participate in department social services, health care, public assistance and direct care

programs across the state; and develop and support applications to automate and maintain

department services and operations. The general fund base for this appropriation is $.......

in fiscal year 2028 and $....... in fiscal year 2029; and

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(8) $....... in fiscal year 2027 is for central office operations for the Appeals Division to

conduct administrative fair hearings for applicants, recipients, and providers; for the Internal

Audits Office to test, analyze, evaluate, and maintain the overall internal control environment

at the department; for the Office of Strategy and Performance to provide strategic planning,

data insights, evaluation, performance measurement, and change management; and for the

Business Solutions Office to develop the business architecture that supports system solution

design and implement governance oversight for the information management and technology

work of the department. The general fund base for this appropriation is $....... in fiscal year

2028 and $....... in fiscal year 2029.

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