HF 4692

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/02/2024 01:13pm

A bill for an act
relating to human services; establishing Direct Care and Treatment as an agency;
modifying date for transfer of authority and responsibility from the commissioner
of human services to the Direct Care and Treatment executive board; establishing
Direct Care and Treatment executive board membership qualifications, procedures,
powers, and duties; authorizing rulemaking; establishing role of Direct Care and
Treatment chief executive officer; establishing chief executive officer powers and
duties; establishing Direct Care and Treatment accounts; modifying terms of the
social welfare fund; modifying certain effective dates; providing for initial
appointment of Direct Care and Treatment executive board and chief executive
officer; amending Minnesota Statutes 2022, sections 13.46, subdivisions 1, 10;
145.61, subdivision 5; 246.018, subdivision 3; 246.13, subdivision 2; 256.88;
256.89; 256.90; 256.91; 256.92; Minnesota Statutes 2023 Supplement, sections
10.65, subdivision 2; 13.46, subdivision 2; 15.01; 15.06, subdivision 1; 43A.08,
subdivisions 1, 1a; 246C.01; 246C.02; 246C.04; 246C.05; Laws 2023, chapter 61,
article 8, sections 1; 2; 3; 8; proposing coding for new law in Minnesota Statutes,
chapter 246C; repealing Minnesota Statutes 2022, sections 246.01; 246.12; 246.234;
246.36; 246.41; Minnesota Statutes 2023 Supplement, section 246C.03.

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

Section 1.

Minnesota Statutes 2023 Supplement, section 10.65, subdivision 2, is amended
to read:

Subd. 2.

Definitions.

As used in this section, the following terms have the meanings
given:

(1) "agency" means the Department of Administration; Department of Agriculture;
Department of Children, Youth, and Families; Department of Commerce; Department of
Corrections; Department of Education; Department of Employment and Economic
Development; Department of Health; Office of Higher Education; Housing Finance Agency;
Department of Human Rights; Department of Human Services; Department of Information
Technology Services; Department of Iron Range Resources and Rehabilitation; Department
of Labor and Industry; Minnesota Management and Budget; Bureau of Mediation Services;
Department of Military Affairs; Metropolitan Council; Department of Natural Resources;
Pollution Control Agency; Department of Public Safety; Department of Revenue; Department
of Transportation; Department of Veterans Affairs; new text begin Direct Care and Treatment; new text end Gambling
Control Board; Racing Commission; the Minnesota Lottery; the Animal Health Board; and
the Board of Water and Soil Resources;

(2) "consultation" means the direct and interactive involvement of the Minnesota Tribal
governments in the development of policy on matters that have Tribal implications.
Consultation is the proactive, affirmative process of identifying and seeking input from
appropriate Tribal governments and considering their interest as a necessary and integral
part of the decision-making process. This definition adds to statutorily mandated notification
procedures. During a consultation, the burden is on the agency to show that it has made a
good faith effort to elicit feedback. Consultation is a formal engagement between agency
officials and the governing body or bodies of an individual Minnesota Tribal government
that the agency or an individual Tribal government may initiate. Formal meetings or
communication between top agency officials and the governing body of a Minnesota Tribal
government is a necessary element of consultation;

(3) "matters that have Tribal implications" means rules, legislative proposals, policy
statements, or other actions that have substantial direct effects on one or more Minnesota
Tribal governments, or on the distribution of power and responsibilities between the state
and Minnesota Tribal governments;

(4) "Minnesota Tribal governments" means the federally recognized Indian Tribes located
in Minnesota including: Bois Forte Band; Fond Du Lac Band; Grand Portage Band; Leech
Lake Band; Mille Lacs Band; White Earth Band; Red Lake Nation; Lower Sioux Indian
Community; Prairie Island Indian Community; Shakopee Mdewakanton Sioux Community;
and Upper Sioux Community; and

(5) "timely and meaningful" means done or occurring at a favorable or useful time that
allows the result of consultation to be included in the agency's decision-making process for
a matter that has Tribal implications.

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new text begin This section is effective July 1, 2024.
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Sec. 2.

Minnesota Statutes 2022, section 13.46, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

As used in this section:

(a) "Individual" means an individual according to section 13.02, subdivision 8, but does
not include a vendor of services.

(b) "Program" includes all programs for which authority is vested in a component of the
welfare system according to statute or federal law, including, but not limited to, Native
American tribe programs that provide a service component of the welfare system, the aid
to families with dependent children program formerly codified in sections 256.72 to 256.87,
Minnesota family investment program, temporary assistance for needy families program,
medical assistance, general assistance, general assistance medical care formerly codified in
chapter 256D, child care assistance program, and child support collections.

(c) "Welfare system" includes the Department of Human Services, new text begin Direct Care and
Treatment, new text end local social services agencies, county welfare agencies, county public health
agencies, county veteran services agencies, county housing agencies, private licensing
agencies, the public authority responsible for child support enforcement, human services
boards, community mental health center boards, state hospitals, state nursing homes, the
ombudsman for mental health and developmental disabilities, Native American tribes to
the extent a tribe provides a service component of the welfare system, and persons, agencies,
institutions, organizations, and other entities under contract to any of the above agencies to
the extent specified in the contract.

(d) "Mental health data" means data on individual clients and patients of community
mental health centers, established under section 245.62, mental health divisions of counties
and other providers under contract to deliver mental health services, or the ombudsman for
mental health and developmental disabilities.

(e) "Fugitive felon" means a person who has been convicted of a felony and who has
escaped from confinement or violated the terms of probation or parole for that offense.

(f) "Private licensing agency" means an agency licensed by the commissioner of human
services under chapter 245A to perform the duties under section 245A.16.

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Sec. 3.

Minnesota Statutes 2023 Supplement, section 13.46, subdivision 2, is amended to
read:

Subd. 2.

General.

(a) Data on individuals collected, maintained, used, or disseminated
by the welfare system are private data on individuals, and shall not be disclosed except:

(1) according to section 13.05;

(2) according to court order;

(3) according to a statute specifically authorizing access to the private data;

(4) to an agent of the welfare system and an investigator acting on behalf of a county,
the state, or the federal government, including a law enforcement person or attorney in the
investigation or prosecution of a criminal, civil, or administrative proceeding relating to the
administration of a program;

(5) to personnel of the welfare system who require the data to verify an individual's
identity; determine eligibility, amount of assistance, and the need to provide services to an
individual or family across programs; coordinate services for an individual or family;
evaluate the effectiveness of programs; assess parental contribution amounts; and investigate
suspected fraud;

(6) to administer federal funds or programs;

(7) between personnel of the welfare system working in the same program;

(8) to the Department of Revenue to assess parental contribution amounts for purposes
of section 252.27, subdivision 2a, administer and evaluate tax refund or tax credit programs
and to identify individuals who may benefit from these programs, and prepare the databases
for reports required under section 270C.13 and Laws 2008, chapter 366, article 17, section
6. The following information may be disclosed under this paragraph: an individual's and
their dependent's names, dates of birth, Social Security or individual taxpayer identification
numbers, income, addresses, and other data as required, upon request by the Department
of Revenue. Disclosures by the commissioner of revenue to the commissioner of human
services for the purposes described in this clause are governed by section 270B.14,
subdivision 1. Tax refund or tax credit programs include, but are not limited to, the dependent
care credit under section 290.067, the Minnesota working family credit under section
290.0671, the property tax refund under section 290A.04, and the Minnesota education
credit under section 290.0674;

(9) between the Department of Human Services, the Department of Employment and
Economic Development, new text begin Direct Care and Treatment, new text end and new text begin , new text end when applicable, the Department
of Education, for the following purposes:

(i) to monitor the eligibility of the data subject for unemployment benefits, for any
employment or training program administered, supervised, or certified by that agency;

(ii) to administer any rehabilitation program or child care assistance program, whether
alone or in conjunction with the welfare system;

(iii) to monitor and evaluate the Minnesota family investment program or the child care
assistance program by exchanging data on recipients and former recipients of Supplemental
Nutrition Assistance Program (SNAP) benefits, cash assistance under chapter 256, 256D,
256J, or 256K, child care assistance under chapter 119B, medical programs under chapter
256B or 256L, or a medical program formerly codified under chapter 256D; and

(iv) to analyze public assistance employment services and program utilization, cost,
effectiveness, and outcomes as implemented under the authority established in Title II,
Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of 1999.
Health records governed by sections 144.291 to 144.298 and "protected health information"
as defined in Code of Federal Regulations, title 45, section 160.103, and governed by Code
of Federal Regulations, title 45, parts 160-164, including health care claims utilization
information, must not be exchanged under this clause;

(10) to appropriate parties in connection with an emergency if knowledge of the
information is necessary to protect the health or safety of the individual or other individuals
or persons;

(11) data maintained by residential programs as defined in section 245A.02 may be
disclosed to the protection and advocacy system established in this state according to Part
C of Public Law 98-527 to protect the legal and human rights of persons with developmental
disabilities or other related conditions who live in residential facilities for these persons if
the protection and advocacy system receives a complaint by or on behalf of that person and
the person does not have a legal guardian or the state or a designee of the state is the legal
guardian of the person;

(12) to the county medical examiner or the county coroner for identifying or locating
relatives or friends of a deceased person;

(13) data on a child support obligor who makes payments to the public agency may be
disclosed to the Minnesota Office of Higher Education to the extent necessary to determine
eligibility under section 136A.121, subdivision 2, clause (5);

(14) participant Social Security or individual taxpayer identification numbers and names
collected by the telephone assistance program may be disclosed to the Department of
Revenue to conduct an electronic data match with the property tax refund database to
determine eligibility under section 237.70, subdivision 4a;

(15) the current address of a Minnesota family investment program participant may be
disclosed to law enforcement officers who provide the name of the participant and notify
the agency that:

(i) the participant:

(A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after
conviction, for a crime or attempt to commit a crime that is a felony under the laws of the
jurisdiction from which the individual is fleeing; or

(B) is violating a condition of probation or parole imposed under state or federal law;

(ii) the location or apprehension of the felon is within the law enforcement officer's
official duties; and

(iii) the request is made in writing and in the proper exercise of those duties;

(16) the current address of a recipient of general assistance may be disclosed to probation
officers and corrections agents who are supervising the recipient and to law enforcement
officers who are investigating the recipient in connection with a felony level offense;

(17) information obtained from a SNAP applicant or recipient households may be
disclosed to local, state, or federal law enforcement officials, upon their written request, for
the purpose of investigating an alleged violation of the Food and Nutrition Act, according
to Code of Federal Regulations, title 7, section 272.1(c);

(18) the address, Social Security or individual taxpayer identification number, and, if
available, photograph of any member of a household receiving SNAP benefits shall be made
available, on request, to a local, state, or federal law enforcement officer if the officer
furnishes the agency with the name of the member and notifies the agency that:

(i) the member:

(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a
crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;

(B) is violating a condition of probation or parole imposed under state or federal law;
or

(C) has information that is necessary for the officer to conduct an official duty related
to conduct described in subitem (A) or (B);

(ii) locating or apprehending the member is within the officer's official duties; and

(iii) the request is made in writing and in the proper exercise of the officer's official duty;

(19) the current address of a recipient of Minnesota family investment program, general
assistance, or SNAP benefits may be disclosed to law enforcement officers who, in writing,
provide the name of the recipient and notify the agency that the recipient is a person required
to register under section 243.166, but is not residing at the address at which the recipient is
registered under section 243.166;

(20) certain information regarding child support obligors who are in arrears may be
made public according to section 518A.74;

(21) data on child support payments made by a child support obligor and data on the
distribution of those payments excluding identifying information on obligees may be
disclosed to all obligees to whom the obligor owes support, and data on the enforcement
actions undertaken by the public authority, the status of those actions, and data on the income
of the obligor or obligee may be disclosed to the other party;

(22) data in the work reporting system may be disclosed under section 256.998,
subdivision 7;

(23) to the Department of Education for the purpose of matching Department of Education
student data with public assistance data to determine students eligible for free and
reduced-price meals, meal supplements, and free milk according to United States Code,
title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and state
funds that are distributed based on income of the student's family; and to verify receipt of
energy assistance for the telephone assistance plan;

(24) the current address and telephone number of program recipients and emergency
contacts may be released to the commissioner of health or a community health board as
defined in section 145A.02, subdivision 5, when the commissioner or community health
board has reason to believe that a program recipient is a disease case, carrier, suspect case,
or at risk of illness, and the data are necessary to locate the person;

(25) to other state agencies, statewide systems, and political subdivisions of this state,
including the attorney general, and agencies of other states, interstate information networks,
federal agencies, and other entities as required by federal regulation or law for the
administration of the child support enforcement program;

(26) to personnel of public assistance programs as defined in section 256.741, for access
to the child support system database for the purpose of administration, including monitoring
and evaluation of those public assistance programs;

(27) to monitor and evaluate the Minnesota family investment program by exchanging
data between the Departments of Human Services and Education, on recipients and former
recipients of SNAP benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child
care assistance under chapter 119B, medical programs under chapter 256B or 256L, or a
medical program formerly codified under chapter 256D;

(28) to evaluate child support program performance and to identify and prevent fraud
in the child support program by exchanging data between the Department of Human Services,
Department of Revenue under section 270B.14, subdivision 1, paragraphs (a) and (b),
without regard to the limitation of use in paragraph (c), Department of Health, Department
of Employment and Economic Development, and other state agencies as is reasonably
necessary to perform these functions;

(29) counties and the Department of Human Services operating child care assistance
programs under chapter 119B may disseminate data on program participants, applicants,
and providers to the commissioner of education;

(30) child support data on the child, the parents, and relatives of the child may be
disclosed to agencies administering programs under titles IV-B and IV-E of the Social
Security Act, as authorized by federal law;

(31) to a health care provider governed by sections 144.291 to 144.298, to the extent
necessary to coordinate services;

(32) to the chief administrative officer of a school to coordinate services for a student
and family; data that may be disclosed under this clause are limited to name, date of birth,
gender, and address;

(33) to county correctional agencies to the extent necessary to coordinate services and
diversion programs; data that may be disclosed under this clause are limited to name, client
demographics, program, case status, and county worker information; or

(34) between the Department of Human Services and the Metropolitan Council for the
following purposes:

(i) to coordinate special transportation service provided under section 473.386 with
services for people with disabilities and elderly individuals funded by or through the
Department of Human Services; and

(ii) to provide for reimbursement of special transportation service provided under section
473.386.

The data that may be shared under this clause are limited to the individual's first, last, and
middle names; date of birth; residential address; and program eligibility status with expiration
date for the purposes of informing the other party of program eligibility.

(b) Information on persons who have been treated for drug or alcohol abuse may only
be disclosed according to the requirements of Code of Federal Regulations, title 42, sections
2.1 to 2.67.

(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16),
(17), or (18), or paragraph (b), are investigative data and are confidential or protected
nonpublic while the investigation is active. The data are private after the investigation
becomes inactive under section 13.82, subdivision 7, clause (a) or (b).

(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are
not subject to the access provisions of subdivision 10, paragraph (b).

For the purposes of this subdivision, a request will be deemed to be made in writing if
made through a computer interface system.

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new text begin This section is effective July 1, 2024.
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Sec. 4.

Minnesota Statutes 2022, section 13.46, subdivision 10, is amended to read:

Subd. 10.

Responsible authority.

(a) Notwithstanding any other provision of this chapter
to the contrary, the responsible authority for each component of the welfare system listed
in subdivision 1, clause (c), shall be as follows:

(1) the responsible authority for the Department of Human Services deleted text begin , state hospitals, and
nursing homes deleted text end is the commissioner of the Department of Human Services;

(2) the responsible authority of a county welfare agency is the director of the county
welfare agency;

(3) the responsible authority for a local social services agency, human services board,
or community mental health center board is the chair of the board;

(4) the responsible authority of any person, agency, institution, organization, or other
entity under contract to any of the components of the welfare system listed in subdivision
1, clause (c), is the person specified in the contract;

(5) the responsible authority of the public authority for child support enforcement is the
head of the public authority for child support enforcement; deleted text begin and
deleted text end

(6) the responsible authority for county veteran services is the county veterans service
officer pursuant to section 197.603, subdivision 2 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (7) the responsible authority for Direct Care and Treatment is the chief executive officer
of Direct Care and Treatment.
new text end

(b) A responsible authority shall allow another responsible authority in the welfare
system access to data classified as not public data when access is necessary for the
administration and management of programs, or as authorized or required by statute or
federal law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
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Sec. 5.

Minnesota Statutes 2023 Supplement, section 15.01, is amended to read:

15.01 DEPARTMENTS OF THE STATE.

The following agencies are designated as the departments of the state government: the
Department of Administration; the Department of Agriculture; the Department of Children,
Youth, and Families; the Department of Commerce; the Department of Corrections; deleted text begin the
Department of Direct Care and Treatment; deleted text end the Department of Education; the Department
of Employment and Economic Development; the Department of Health; the Department of
Human Rights; the Department of Human Services; the Department of Information
Technology Services; the Department of Iron Range Resources and Rehabilitation; the
Department of Labor and Industry; the Department of Management and Budget; the
Department of Military Affairs; the Department of Natural Resources; the Department of
Public Safety; the Department of Revenue; the Department of Transportation; the Department
of Veterans Affairs; and their successor departments.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
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Sec. 6.

Minnesota Statutes 2023 Supplement, section 15.06, subdivision 1, is amended to
read:

Subdivision 1.

Applicability.

This section applies to the following departments or
agencies: the Departments of Administration; Agriculture; Children, Youth, and Families;
Commerce; Corrections; deleted text begin Direct Care and Treatment; deleted text end Education; Employment and Economic
Development; Health; Human Rights; Human Services; Labor and Industry; Management
and Budget; Natural Resources; Public Safety; Revenue; Transportation; and Veterans
Affairs; the Housing Finance and Pollution Control Agencies; the Office of Commissioner
of Iron Range Resources and Rehabilitation; the Department of Information Technology
Services; the Bureau of Mediation Services; and their successor departments and agencies.
The heads of the foregoing departments or agencies are "commissioners."

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
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Sec. 7.

Minnesota Statutes 2023 Supplement, section 43A.08, subdivision 1, is amended
to read:

Subdivision 1.

Unclassified positions.

Unclassified positions are held by employees
who are:

(1) chosen by election or appointed to fill an elective office;

(2) heads of agencies required by law to be appointed by the governor or other elective
officers, and the executive or administrative heads of departments, bureaus, divisions, and
institutions specifically established by law in the unclassified service;

(3) deputy and assistant agency heads and one confidential secretary in the agencies
listed in subdivision 1a;

(4) the confidential secretary to each of the elective officers of this state and, for the
secretary of state and state auditor, an additional deputy, clerk, or employee;

(5) intermittent help employed by the commissioner of public safety to assist in the
issuance of vehicle licenses;

(6) employees in the offices of the governor and of the lieutenant governor and one
confidential employee for the governor in the Office of the Adjutant General;

(7) employees of the Washington, D.C., office of the state of Minnesota;

(8) employees of the legislature and of legislative committees or commissions; provided
that employees of the Legislative Audit Commission, except for the legislative auditor, the
deputy legislative auditors, and their confidential secretaries, shall be employees in the
classified service;

(9) presidents, vice-presidents, deans, other managers and professionals in academic
and academic support programs, administrative or service faculty, teachers, research
assistants, and student employees eligible under terms of the federal Economic Opportunity
Act work study program in the Perpich Center for Arts Education and the Minnesota State
Colleges and Universities, but not the custodial, clerical, or maintenance employees, or any
professional or managerial employee performing duties in connection with the business
administration of these institutions;

(10) officers and enlisted persons in the National Guard;

(11) attorneys, legal assistants, and three confidential employees appointed by the attorney
general or employed with the attorney general's authorization;

(12) judges and all employees of the judicial branch, referees, receivers, jurors, and
notaries public, except referees and adjusters employed by the Department of Labor and
Industry;

(13) members of the State Patrol; provided that selection and appointment of State Patrol
troopers must be made in accordance with applicable laws governing the classified service;

(14) examination monitors and intermittent training instructors employed by the
Departments of Management and Budget and Commerce and by professional examining
boards and intermittent staff employed by the technical colleges for the administration of
practical skills tests and for the staging of instructional demonstrations;

(15) student workers;

(16) executive directors or executive secretaries appointed by and reporting to any
policy-making board or commission established by statute;

(17) employees unclassified pursuant to other statutory authority;

(18) intermittent help employed by the commissioner of agriculture to perform duties
relating to pesticides, fertilizer, and seed regulation;

(19) the administrators and the deputy administrators at the State Academies for the
Deaf and the Blind; and

(20) new text begin the new text end chief executive deleted text begin officers in the Department of Human Services deleted text end new text begin officer of Direct
Care and Treatment new text end .

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Sec. 8.

Minnesota Statutes 2023 Supplement, section 43A.08, subdivision 1a, is amended
to read:

Subd. 1a.

Additional unclassified positions.

Appointing authorities for the following
agencies may designate additional unclassified positions according to this subdivision: the
Departments of Administration; Agriculture; Children, Youth, and Families; Commerce;
Corrections; deleted text begin Direct Care and Treatment; deleted text end Education; Employment and Economic
Development; Explore Minnesota Tourism; Management and Budget; Health; Human
Rights; Human Services; Labor and Industry; Natural Resources; Public Safety; Revenue;
Transportation; and Veterans Affairs; the Housing Finance and Pollution Control Agencies;
the State Lottery; the State Board of Investment; the Office of Administrative Hearings; the
Department of Information Technology Services; the Offices of the Attorney General,
Secretary of State, and State Auditor; the Minnesota State Colleges and Universities; the
Minnesota Office of Higher Education; the Perpich Center for Arts Education; new text begin Direct Care
and Treatment; new text end and the Minnesota Zoological Board.

A position designated by an appointing authority according to this subdivision must
meet the following standards and criteria:

(1) the designation of the position would not be contrary to other law relating specifically
to that agency;

(2) the person occupying the position would report directly to the agency head or deputy
agency head and would be designated as part of the agency head's management team;

(3) the duties of the position would involve significant discretion and substantial
involvement in the development, interpretation, and implementation of agency policy;

(4) the duties of the position would not require primarily personnel, accounting, or other
technical expertise where continuity in the position would be important;

(5) there would be a need for the person occupying the position to be accountable to,
loyal to, and compatible with, the governor and the agency head, the employing statutory
board or commission, or the employing constitutional officer;

(6) the position would be at the level of division or bureau director or assistant to the
agency head; and

(7) the commissioner has approved the designation as being consistent with the standards
and criteria in this subdivision.

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new text begin This section is effective July 1, 2024.
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Sec. 9.

Minnesota Statutes 2022, section 145.61, subdivision 5, is amended to read:

Subd. 5.

Review organization.

"Review organization" means a nonprofit organization
acting according to clause (l), a committee as defined under section 144E.32, subdivision
2, or a committee whose membership is limited to professionals, administrative staff, and
consumer directors, except where otherwise provided for by state or federal law, and which
is established by one or more of the following: a hospital, a clinic, a nursing home, an
ambulance service or first responder service regulated under chapter 144E, one or more
state or local associations of professionals, an organization of professionals from a particular
area or medical institution, a health maintenance organization as defined in chapter 62D, a
community integrated service network as defined in chapter 62N, a nonprofit health service
plan corporation as defined in chapter 62C, a preferred provider organization, a professional
standards review organization established pursuant to United States Code, title 42, section
1320c-1 et seq., a medical review agent established to meet the requirements of section
256B.04, subdivision 15, the Department of Human Services, new text begin Direct Care and Treatment,
new text end or a nonprofit corporation that owns, operates, or is established by one or more of the above
referenced entities, to gather and review information relating to the care and treatment of
patients for the purposes of:

(a) evaluating and improving the quality of health care;

(b) reducing morbidity or mortality;

(c) obtaining and disseminating statistics and information relative to the treatment and
prevention of diseases, illness and injuries;

(d) developing and publishing guidelines showing the norms of health care in the area
or medical institution or in the entity or organization that established the review organization;

(e) developing and publishing guidelines designed to keep within reasonable bounds the
cost of health care;

(f) developing and publishing guidelines designed to improve the safety of care provided
to individuals;

(g) reviewing the safety, quality, or cost of health care services provided to enrollees of
health maintenance organizations, community integrated service networks, health service
plans, preferred provider organizations, and insurance companies;

(h) acting as a professional standards review organization pursuant to United States
Code, title 42, section 1320c-1 et seq.;

(i) determining whether a professional shall be granted staff privileges in a medical
institution, membership in a state or local association of professionals, or participating status
in a nonprofit health service plan corporation, health maintenance organization, community
integrated service network, preferred provider organization, or insurance company, or
whether a professional's staff privileges, membership, or participation status should be
limited, suspended or revoked;

(j) reviewing, ruling on, or advising on controversies, disputes or questions between:

(1) health insurance carriers, nonprofit health service plan corporations, health
maintenance organizations, community integrated service networks, self-insurers and their
insureds, subscribers, enrollees, or other covered persons;

(2) professional licensing boards and health providers licensed by them;

(3) professionals and their patients concerning diagnosis, treatment or care, or the charges
or fees therefor;

(4) professionals and health insurance carriers, nonprofit health service plan corporations,
health maintenance organizations, community integrated service networks, or self-insurers
concerning a charge or fee for health care services provided to an insured, subscriber,
enrollee, or other covered person;

(5) professionals or their patients and the federal, state, or local government, or agencies
thereof;

(k) providing underwriting assistance in connection with professional liability insurance
coverage applied for or obtained by dentists, or providing assistance to underwriters in
evaluating claims against dentists;

(l) acting as a medical review agent under section 256B.04, subdivision 15;

(m) providing recommendations on the medical necessity of a health service, or the
relevant prevailing community standard for a health service;

(n) providing quality assurance as required by United States Code, title 42, sections
1396r(b)(1)(b) and 1395i-3(b)(1)(b) of the Social Security Act;

(o) providing information to group purchasers of health care services when that
information was originally generated within the review organization for a purpose specified
by this subdivision;

(p) providing information to other, affiliated or nonaffiliated review organizations, when
that information was originally generated within the review organization for a purpose
specified by this subdivision, and as long as that information will further the purposes of a
review organization as specified by this subdivision; or

(q) participating in a standardized incident reporting system, including Internet-based
applications, to share information for the purpose of identifying and analyzing trends in
medical error and iatrogenic injury.

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new text begin This section is effective July 1, 2024.
new text end

Sec. 10.

Minnesota Statutes 2022, section 246.018, subdivision 3, is amended to read:

Subd. 3.

Duties.

The medical director shall:

(1) oversee the clinical provision of inpatient mental health services provided in the
state's regional treatment centers;

(2) recruit and retain psychiatrists to serve on the state medical staff established in
subdivision 4;

(3) consult with the deleted text begin commissioner of human services deleted text end new text begin Direct Care and Treatment executive
board, the chief executive officer new text end , new text begin and new text end community mental health center directors deleted text begin , and the
state-operated services governing body deleted text end to develop standards for treatment and care of
patients in state-operated service programs;

(4) develop and oversee a continuing education program for members of the medical
staff; and

(5) participate and cooperate in the development and maintenance of a quality assurance
program for state-operated services that assures that residents receive quality inpatient care
and continuous quality care once they are discharged or transferred to an outpatient setting.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 11.

Minnesota Statutes 2022, section 246.13, subdivision 2, is amended to read:

Subd. 2.

Definitions; risk assessment and management.

(a) As used in this section:

(1) "appropriate and necessary medical and other records" includes patient medical
records and other protected health information as defined by Code of Federal Regulations,
title 45, section 164.501, relating to a patient in a state-operated services facility including,
but not limited to, the patient's treatment plan and abuse prevention plan that is pertinent to
the patient's ongoing care, treatment, or placement in a community-based treatment facility
or a health care facility that is not operated by state-operated services, and includes
information describing the level of risk posed by a patient when the patient enters the facility;

(2) "community-based treatment" means the community support services listed in section
253B.02, subdivision 4b;

(3) "criminal history data" means those data maintained or used by the Departments of
Corrections and Public Safety and by the supervisory authorities listed in section 13.84,
subdivision 1, that relate to an individual's criminal history or propensity for violence,
including data in the Corrections Offender Management System (COMS) and Statewide
Supervision System (S3) maintained by the Department of Corrections; and criminal history
data as defined in section 13.87, Integrated Search Service as defined in section 13.873,
and the Predatory Offender Registration (POR) system maintained by the Department of
Public Safety;

(4) "designated agency" means the agency defined in section 253B.02, subdivision 5;

(5) "law enforcement agency" means the law enforcement agency having primary
jurisdiction over the location where the offender expects to reside upon release;

(6) "predatory offender" and "offender" mean a person who is required to register as a
predatory offender under section 243.166; and

(7) "treatment facility" means a facility as defined in section 253B.02, subdivision 19.

(b) To promote public safety and for the purposes and subject to the requirements of
this paragraph, the deleted text begin commissioner deleted text end new text begin executive board new text end or the deleted text begin commissioner's deleted text end designee new text begin of the
executive board new text end shall have access to, and may review and disclose, medical and criminal
history data as provided by this section, as necessary to comply with Minnesota Rules, part
1205.0400:

(1) to determine whether a patient is required under state law to register as a predatory
offender according to section 243.166;

(2) to facilitate and expedite the responsibilities of the special review board and
end-of-confinement review committees by corrections institutions and state treatment
facilities;

(3) to prepare, amend, or revise the abuse prevention plans required under section
626.557, subdivision 14, and individual patient treatment plans required under section
253B.03, subdivision 7;

(4) to facilitate the custody, supervision, and transport of individuals transferred between
the Department of Corrections and deleted text begin the Department of Human Services deleted text end new text begin Direct Care and
Treatment new text end ; or

(5) to effectively monitor and supervise individuals who are under the authority of the
Department of Corrections, deleted text begin the Department of Human Services deleted text end new text begin Direct Care and Treatment new text end ,
and the supervisory authorities listed in section 13.84, subdivision 1.

(c) The state-operated services treatment facility must make a good faith effort to obtain
written authorization from the patient before releasing information from the patient's medical
record.

(d) If the patient refuses or is unable to give informed consent to authorize the release
of information required above, the chief executive officer deleted text begin for state-operated services deleted text end shall
provide the appropriate and necessary medical and other records. The chief executive officer
shall comply with the minimum necessary requirements.

(e) The deleted text begin commissioner deleted text end new text begin executive board new text end may have access to the National Crime Information
Center (NCIC) database, through the Department of Public Safety, in support of the law
enforcement functions described in paragraph (b).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 12.

Minnesota Statutes 2023 Supplement, section 246C.01, is amended to read:

246C.01 TITLE.

This chapter may be cited as the " deleted text begin Department of deleted text end Direct Care and Treatment Act."

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 13.

new text begin [246C.015] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of this chapter, the following terms have the
meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Board or executive board. new text end

new text begin "Board" or "executive board" means the Direct
Care and Treatment executive board established under section 246C.06.
new text end

new text begin Subd. 3. new text end

new text begin Chief executive officer. new text end

new text begin "Chief executive officer" means the Direct Care and
Treatment chief executive officer appointed according to section 246C.08.
new text end

new text begin Subd. 4. new text end

new text begin Community preparation services. new text end

new text begin "Community preparation services" means
specialized inpatient or outpatient services operated outside of a secure environment but
administered by a secure treatment facility.
new text end

new text begin Subd. 5. new text end

new text begin Direct Care and Treatment. new text end

new text begin "Direct Care and Treatment" means the agency
of Direct Care and Treatment established under this chapter.
new text end

new text begin Subd. 6. new text end

new text begin Secure treatment facility. new text end

new text begin "Secure treatment facility" means a facility as
defined in section 253B.02, subdivision 18a; or 253D.02, subdivision 13.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 14.

Minnesota Statutes 2023 Supplement, section 246C.02, is amended to read:

246C.02 deleted text begin DEPARTMENT OF deleted text end DIRECT CARE AND TREATMENT;
ESTABLISHMENT.

deleted text begin (a) The Department of deleted text end Direct Care and Treatment is created deleted text begin . deleted text end new text begin as an agency headed by new text end an
executive board deleted text begin shall head the Department of Direct Care and Treatment. The executive
board shall develop and maintain direct care and treatment in a manner consistent with
applicable law, including chapters deleted text end deleted text begin 13 deleted text end deleted text begin , deleted text end deleted text begin 245 deleted text end deleted text begin , deleted text end deleted text begin 246 deleted text end deleted text begin , deleted text end deleted text begin 246B deleted text end deleted text begin , deleted text end deleted text begin 252 deleted text end deleted text begin , deleted text end deleted text begin 253 deleted text end deleted text begin , deleted text end deleted text begin 253B deleted text end deleted text begin , deleted text end deleted text begin 253C deleted text end deleted text begin , deleted text end deleted text begin 253D deleted text end deleted text begin , deleted text end deleted text begin 254A deleted text end deleted text begin ,
deleted text end deleted text begin 254B deleted text end deleted text begin , and deleted text end deleted text begin 256 deleted text end deleted text begin . The Department of deleted text end new text begin . new text end Direct Care and Treatment shall provide direct care and
treatment services deleted text begin in coordination with counties and other vendors. Direct care and treatment
services shall deleted text end new text begin that new text end include specialized inpatient programs at secure treatment facilities deleted text begin as
defined in sections 253B.02, subdivision 18a, and 253D.02, subdivision 13 deleted text end ; community
preparation services; regional treatment centers; enterprise services; consultative services;
aftercare services; community-based services and programs; transition services; nursing
home services; and other services consistent with deleted text begin the mission of the Department of Direct
Care and Treatment deleted text end new text begin state law, including this chapter and chapters 245, 246, 246B, 252, 253,
253B, 253C, 253D, 254A, 254B, and 256. Direct Care and Treatment shall provide direct
care and treatment services in coordination with counties and other vendors new text end .

deleted text begin (b) "Community preparation services" means specialized inpatient or outpatient services
or programs operated outside of a secure environment but administered by a secure treatment
facility.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 15.

Minnesota Statutes 2023 Supplement, section 246C.04, is amended to read:

246C.04 TRANSFER OF DUTIES.

(a) Section 15.039 applies to the transfer of deleted text begin duties deleted text end new text begin responsibilities from the Department
of Human Services to Direct Care and Treatment new text end required by this chapter.

(b) The commissioner of administration, with the governor's approval, shall issue
reorganization orders under section 16B.37 as necessary to carry out the transfer of duties
required by deleted text begin section 246C.03 deleted text end new text begin this chapter new text end . The provision of section 16B.37, subdivision 1,
stating that transfers under section 16B.37 may only be to an agency that has existed for at
least one year does not apply to transfers to an agency created by this chapter.

deleted text begin (c) The initial salary for the health systems chief executive officer of the Department of
Direct Care and Treatment is the same as the salary for the health systems chief executive
officer of direct care and treatment at the Department of Human Services immediately before
July 1, 2024.
deleted text end

new text begin (c) The commissioner of human services shall continue to exercise all authorities and
responsibilities under this chapter and chapters 13, 245, 246, 246B, 252, 253, 253B, 253C,
253D, 254A, 254B, and 256, with reference to any state-operated service, program, or
facility subject to transfer under this act until July 1, 2025. Effective July 1, 2025, the powers
and duties vested in or imposed upon the commissioner of human services with reference
to any state operated service, program, or facility are transferred to, vested in, and imposed
upon the executive board according to this chapter and applicable state law. Effective July
1, 2025, the executive board has the exclusive power of administration and management of
all state hospitals for persons with a developmental disability, mental illness, or substance
use disorder. Effective July 1, 2025, the executive board has the power and authority to
determine all matters relating to the development of all foregoing institutions and other
institutions vested in the executive board. Effective July 1, 2025, the powers, functions, and
authority vested in the commissioner of human services relative to such state institutions
are transferred to the executive board according to this chapter and applicable state law.
new text end

new text begin (d) The commissioner of human services shall continue to exercise all authority and
responsibility for and retain custody of persons subject to civil commitment under chapter
253B or 253D until July 1, 2025. Effective July 1, 2025, custody of persons subject to civil
commitment under chapter 253B or 253D and in the custody of the commissioner of human
services as of that date is hereby transferred to the executive board without further act or
proceeding. Authority and responsibility for the commitment of such persons is transferred
to the executive board on July 1, 2025.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 16.

Minnesota Statutes 2023 Supplement, section 246C.05, is amended to read:

246C.05 EMPLOYEE PROTECTIONS FOR ESTABLISHING deleted text begin THE NEW
DEPARTMENT OF deleted text end DIRECT CARE AND TREATMENT.

(a) Personnel whose duties relate to the functions assigned to the deleted text begin Department of deleted text end Direct
Care and Treatment executive board in deleted text begin section 246C.03 deleted text end new text begin this chapter new text end are transferred to deleted text begin the
Department of deleted text end Direct Care and Treatment effective 30 days after approval by the
commissioner of deleted text begin direct care and treatment deleted text end new text begin management and budget new text end .

(b) Before the deleted text begin Department of deleted text end Direct Care and Treatment executive board is appointed,
personnel whose duties relate to the functions in this deleted text begin section deleted text end new text begin chapter new text end may be transferred
beginning July 1, 2024, with 30 days' notice from the commissioner of management and
budget.

(c) The following protections shall apply to employees who are transferred from the
Department of Human Services to deleted text begin the Department of deleted text end Direct Care and Treatment:

(1) No transferred employee shall have their employment status and job classification
altered as a result of the transfer.

(2) Transferred employees who were represented by an exclusive representative prior
to the transfer shall continue to be represented by the same exclusive representative after
the transfer.

(3) The applicable collective bargaining agreements with exclusive representatives shall
continue in full force and effect for such transferred employees after the transfer.

(4) The state shall have the obligation to meet and negotiate with the exclusive
representatives of the transferred employees about any proposed changes affecting or relating
to the transferred employees' terms and conditions of employment to the extent such changes
are not addressed in the applicable collective bargaining agreement.

(5) When an employee in a temporary unclassified position is transferred to deleted text begin the
Department of deleted text end Direct Care and Treatment, the total length of time that the employee has
served in the appointment shall include all time served in the appointment at the transferring
agency and the time served in the appointment at deleted text begin the Department of deleted text end Direct Care and
Treatment. An employee in a temporary unclassified position who was hired by a transferring
agency through an open competitive selection process in accordance with a policy enacted
by Minnesota Management and Budget shall be considered to have been hired through such
process after the transfer.

(6) In the event that the state transfers ownership or control of any of the facilities,
services, or operations of deleted text begin the Department of deleted text end Direct Care and Treatment to another entity,
whether private or public, by subcontracting, sale, assignment, lease, or other transfer, the
state shall require as a written condition of such transfer of ownership or control the following
provisions:

(i) Employees who perform work in transferred facilities, services, or operations must
be offered employment with the entity acquiring ownership or control before the entity
offers employment to any individual who was not employed by the transferring agency at
the time of the transfer.

(ii) The wage and benefit standards of such transferred employees must not be reduced
by the entity acquiring ownership or control through the expiration of the collective
bargaining agreement in effect at the time of the transfer or for a period of two years after
the transfer, whichever is longer.

(d) There is no liability on the part of, and no cause of action arises against, the state of
Minnesota or its officers or agents for any action or inaction of any entity acquiring ownership
or control of any facilities, services, or operations of deleted text begin the Department of deleted text end Direct Care and
Treatment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 17.

new text begin [246C.06] EXECUTIVE BOARD; MEMBERSHIP; GOVERNANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Direct Care and Treatment executive board is
established.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The Direct Care and Treatment executive board consists of
nine members with seven voting members and two nonvoting members. The seven voting
members must include six members appointed by the governor with the advice and consent
of the senate in accordance with paragraph (b) and the commissioner of human services or
a designee. The two nonvoting members must be appointed in accordance with paragraph
(c). Section 15.0597 applies to all executive board appointments except for the commissioner
of human services.
new text end

new text begin (b) The executive board voting members appointed by the governor must meet the
following qualifications:
new text end

new text begin (1) one member must be a licensed physician who is a psychiatrist or has experience in
serving behavioral health patients;
new text end

new text begin (2) two members must have experience serving on a hospital or nonprofit board; and
new text end

new text begin (3) three members must have experience working: (i) as a public labor union
representative; (ii) in the delivery of behavioral health services or care coordination or in
traditional healing practices; (iii) as a licensed health care professional; (iv) within health
care administration; or (v) with residential services.
new text end

new text begin (c) The executive board nonvoting members must be appointed as follows:
new text end

new text begin (1) one member appointed by the Association of Counties; and
new text end

new text begin (2) one member who has an active role as a union representative representing staff at
Direct Care and Treatment appointed by joint representatives of the following unions:
American Federation of State and Municipal Employees (AFSCME); Minnesota Association
of Professional Employees (MAPE); Minnesota Nurses Association (MNA); Middle
Management Association (MMA); and State Residential Schools Education Association
(SRSEA).
new text end

new text begin (d) Membership on the board must include representation from outside the seven-county
metropolitan area, as defined in section 473.121, subdivision 2.
new text end

new text begin (e) A voting member of the executive board must not be or must not have been within
one year prior to appointment: (1) an employee of Direct Care and Treatment; (2) an
employee of a county, including a county commissioner; (3) an active employee or
representative of a labor union that represents employees of Direct Care and Treatment; or
(4) a member of the state legislature. This paragraph does not apply to the nonvoting members
or the commissioner of human services or designee.
new text end

new text begin Subd. 3. new text end

new text begin Procedures. new text end

new text begin Except as otherwise provided for in this section, the membership
terms, compensation, and removal and filling of vacancies for the executive board are
governed by section 15.0575.
new text end

new text begin Subd. 4. new text end

new text begin Compensation. new text end

new text begin Notwithstanding section 15.0575, subdivision 3, paragraph
(a), voting members of the executive board must receive compensation at a rate of $500 a
day spent on executive board activities authorized by the executive board, plus expenses in
the same manner and amount as authorized by the commissioner's plan adopted under section
43A.18, subdivision 2. All other requirements under section 15.0575, subdivision 3, apply
to the compensation of voting members of the executive board.
new text end

new text begin Subd. 5. new text end

new text begin Acting chair; officers. new text end

new text begin (a) The governor shall designate one member from the
voting membership appointed by the governor as acting chair of the executive board.
new text end

new text begin (b) At the first meeting of the executive board, the executive board must elect a chair
from among the voting membership appointed by the governor.
new text end

new text begin (c) The executive board must annually elect a chair from among the voting membership
appointed by the governor.
new text end

new text begin (d) The executive board must elect officers from among the voting membership appointed
by the governor. The elected officers shall serve for one year.
new text end

new text begin Subd. 6. new text end

new text begin Terms. new text end

new text begin (a) Except for the commissioner of human services, executive board
members must not serve more than two consecutive terms unless service beyond two
consecutive terms is approved by the majority of voting members. The commissioner or
designee shall serve until replaced by the governor.
new text end

new text begin (b) An executive board member may resign at any time by giving written notice to the
executive board.
new text end

new text begin (c) The initial term of the member appointed under subdivision 2, paragraph (b), clause
(1), is two years. The initial term of the members appointed under subdivision 2, paragraph
(b), clause (2), is three years. The initial term of the members appointed under subdivision
2, paragraph (b), clause (3), and the members appointed under subdivision 2, paragraph (c),
is four years.
new text end

new text begin (d) After the initial term, the term length of all appointed executive board members is
four years.
new text end

new text begin Subd. 7. new text end

new text begin Conflicts of interest. new text end

new text begin Executive board members must recuse themselves from
discussion of and voting on an official matter if the executive board member has a conflict
of interest. A conflict of interest means an association, including a financial or personal
association, that has the potential to bias or have the appearance of biasing an executive
board member's decision in matters related to Direct Care and Treatment or the conduct of
activities under this chapter.
new text end

new text begin Subd. 8. new text end

new text begin Meetings. new text end

new text begin The executive board must meet at least four times per fiscal year at
a place and time determined by the executive board.
new text end

new text begin Subd. 9. new text end

new text begin Quorum. new text end

new text begin A majority of the voting members of the executive board constitutes
a quorum. The affirmative vote of a majority of the voting members of the executive board
is necessary and sufficient for action taken by the executive board.
new text end

new text begin Subd. 10. new text end

new text begin Immunity; indemnification. new text end

new text begin (a) Members of the executive board are immune
from civil liability for any act or omission occurring within the scope of the performance
of their duties under this chapter.
new text end

new text begin (b) When performing executive board duties or actions, members of the executive board
are employees of the state for purposes of indemnification under section 3.736, subdivision
9.
new text end

new text begin Subd. 11. new text end

new text begin Rulemaking. new text end

new text begin (a) The executive board is authorized to adopt, amend, and
repeal rules in accordance with chapter 14 under the executive board's authority to implement
this chapter or any responsibilities of Direct Care and Treatment specified in state law.
new text end

new text begin (b) Until July 1, 2030, the executive board may adopt rules using the expedited
rulemaking process in section 14.389.
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 18.

new text begin [246C.07] POWERS AND DUTIES OF EXECUTIVE BOARD.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin (a) The executive board must operate the agency according
to this chapter and applicable state and federal law. The overall management and control
of the agency is vested in the executive board in accordance with this chapter.
new text end

new text begin (b) The executive board must appoint a chief executive officer according to section
246C.08. The chief executive officer is responsible for the administrative and operational
duties of Direct Care and Treatment in accordance with this chapter.
new text end

new text begin (c) The executive board may delegate duties imposed by this chapter and under applicable
state and federal law as deemed appropriate by the board and in accordance with this chapter.
Any delegation of a specified statutory duty or power to an employee of Direct Care and
Treatment other than the chief executive officer must be made by written order and filed
with the secretary of state. Only the chief executive officer shall have the powers and duties
of the executive board as specified in section 246C.08.
new text end

new text begin Subd. 2. new text end

new text begin Principles. new text end

new text begin The executive board, in undertaking its duties and responsibilities
and within Direct Care and Treatment resources, shall act according to the following
principles:
new text end

new text begin (1) prevent the waste or unnecessary spending of public money;
new text end

new text begin (2) use innovative fiscal and human resource practices to manage the state's resources
and operate the agency as efficiently as possible;
new text end

new text begin (3) coordinate Direct Care and Treatment activities wherever appropriate with the
activities of other governmental agencies;
new text end

new text begin (4) use technology where appropriate to increase agency productivity, improve customer
service, increase public access to information about government, and increase public
participation in the business of government; and
new text end

new text begin (5) utilize constructive and cooperative labor management practices to the extent
otherwise required by chapter 43A or 179A.
new text end

new text begin Subd. 3. new text end

new text begin Powers and duties. new text end

new text begin (a) The executive board has the power and duty to:
new text end

new text begin (1) set the overall strategic direction for Direct Care and Treatment, ensuring that Direct
Care and Treatment delivers exceptional care and supports the well-being of all individuals
served by Direct Care and Treatment;
new text end

new text begin (2) establish policies and procedures to govern the operation of the facilities, programs,
and services under the direct authority of Direct Care and Treatment;
new text end

new text begin (3) employ personnel and delegate duties and responsibilities to personnel as deemed
appropriate by the executive board, subject to chapters 43A and 179A and in accordance
with this chapter;
new text end

new text begin (4) review and approve the operating budget proposal for Direct Care and Treatment;
new text end

new text begin (5) accept and use gifts, grants, or contributions from any nonstate source or refuse to
accept any gift, grant, or contribution if acceptance would not be in the best interest of the
state;
new text end

new text begin (6) deposit all money received as gifts, grants, or contributions pursuant to section
246C.09, subdivision 1;
new text end

new text begin (7) enter into information-sharing agreements with federal and state agencies and other
entities, provided the agreements include adequate protections with respect to the
confidentiality and integrity of the information to be shared and comply with all applicable
state and federal laws, regulations, and rules;
new text end

new text begin (8) enter into interagency or service level agreements with a state department listed in
section 15.01; a multimember state agency described in section 15.012, paragraph (a); or
the Department of Information Technology Services;
new text end

new text begin (9) enter into contractual agreements with federally recognized Indian Tribes with a
reservation in Minnesota;
new text end

new text begin (10) enter into contracts with public and private agencies, private and nonprofit
organizations, and individuals, using appropriated funds;
new text end

new text begin (11) establish and maintain any administrative units reasonably necessary for the
performance of administrative functions common to all programs or divisions of Direct
Care and Treatment;
new text end

new text begin (12) authorize the method of payment to or from Direct Care and Treatment as part of
programs administered by Direct Care and Treatment, including authorization of the receipt
or disbursement of funds held by Direct Care and Treatment in a fiduciary capacity as part
of the programs administered by Direct Care and Treatment;
new text end

new text begin (13) inform Tribal Nations and county agencies, on a timely basis, of changes in statute,
rule, federal law, regulation, and policy necessary to Tribal or county agency administration
of Direct Care and Treatment programs and services;
new text end

new text begin (14) report to the legislature on the performance of Direct Care and Treatment operations
and the accomplishment of Direct Care and Treatment goals in its biennial budget in
accordance with section 16A.10, subdivision 1;
new text end

new text begin (15) recommend to the legislature appropriate changes in law necessary to carry out the
principles and improve the performance of Direct Care and Treatment; and
new text end

new text begin (16) exercise all powers reasonably necessary to implement and administer the
requirements of this chapter and applicable state and federal law.
new text end

new text begin (b) The specific enumeration of powers and duties as set forth in this section shall not
be construed as a limitation upon the general transfer of Direct Care and Treatment facilities,
programs, and services from the Department of Human Services to Direct Care and Treatment
under this chapter.
new text end

new text begin Subd. 4. new text end

new text begin Creation of bylaws. new text end

new text begin The board may establish bylaws governing its operations
and the operations of Direct Care and Treatment in accordance with this chapter.
new text end

new text begin Subd. 5. new text end

new text begin Reciprocal exchange of certain persons. new text end

new text begin The executive board is authorized
and empowered with the approval of the governor to enter into reciprocal agreements with
another state or states regarding the mutual exchange, return, and transportation of persons
with a mental illness or a developmental disability who are within the confines of one state
but have legal residence or legal settlement for the purposes of relief in another state. Any
agreement entered into under this subdivision must not contain any provision that conflicts
with any state law.
new text end

new text begin Subd. 6. new text end

new text begin Acceptance of voluntary, uncompensated services. new text end

new text begin For the purpose of carrying
out a duty, the executive board may accept uncompensated and voluntary services and may
enter into contracts or agreements with private or public agencies, organizations, or persons,
for uncompensated and voluntary services, as the executive board may deem practicable.
Uncompensated and voluntary services do not include services mandated by licensure or
certification requirements for health care facilities. The volunteer agencies, organizations,
or persons who provide services to residents of state facilities operated under the authority
of Direct Care and Treatment are not subject to the procurement requirements of chapter
16A or 16C.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 19.

new text begin [246C.08] CHIEF EXECUTIVE OFFICER; SERVICE; DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Service. new text end

new text begin (a) The Direct Care and Treatment chief executive officer is
appointed by the executive board and serves at the pleasure of the executive board.
new text end

new text begin (b) The chief executive officer shall serve in the unclassified service in accordance with
section 43A.08 and shall be governed by a compensation plan prepared by the executive
board, submitted to the commissioner of management and budget for review and comment,
and approved by the Legislative Coordinating Commission and the legislature in accordance
with section 3.855.
new text end

new text begin Subd. 2. new text end

new text begin Powers and duties. new text end

new text begin (a) The chief executive officer's primary duty is to assist
the executive board. The chief executive officer is responsible for the administrative and
operational management of the agency.
new text end

new text begin (b) The chief executive officer shall have all the powers of the executive board unless
the executive board directs otherwise. The chief executive officer shall have the authority
to speak for the executive board and Direct Care and Treatment within and outside the
agency.
new text end

new text begin (c) In the event that a vacancy occurs for any reason within the chief executive officer
position, the chief medical officer appointed under section 246.018 shall immediately become
the temporary chief executive officer until the executive board appoints a new chief executive
officer. During this period, the chief medical officer shall have all the powers and authority
delegated to the chief executive officer by the board and specified in this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 20.

new text begin [246C.09] DIRECT CARE AND TREATMENT ACCOUNTS.
new text end

new text begin Subdivision 1. new text end

new text begin Gifts, grants, and contributions account. new text end

new text begin (a) A gifts, grants, and
contributions account is created in the special revenue fund in the state treasury. All money
received by the executive board as a gift, grant, or contribution must be deposited in the
gifts, grants, and contributions account. Except as provided in paragraph (b), money in the
account is annually appropriated to the executive board to accomplish the purposes of this
chapter. Gifts, grants, or contributions received by the executive board exceeding current
agency needs must be invested by the State Board of Investment in accordance with section
11A.24. Disbursements from the gifts, grants, and contributions account must be made in
the manner provided for the issuance of other state payments.
new text end

new text begin (b) If the gift or contribution is designated for a certain person, institution, or purpose,
the executive board must use the gift or contribution as specified in accordance with the
conditions of the gift or contribution if compatible with the best interests of the person and
the state. If a gift or contribution is accepted for the use and benefit of a person with a
developmental disability, including those within a state hospital, research relating to persons
with a developmental disability must be considered an appropriate use of the gift or
contribution. Such money must not be used for any structures or installations which by their
nature would require state expenditures for their operation or maintenance without specific
legislative enactment.
new text end

new text begin Subd. 2. new text end

new text begin Facilities management account. new text end

new text begin A facilities management account is created
in the special revenue fund of the state treasury. Money in the account is appropriated to
the executive board and may be used to maintain buildings, acquire facilities, renovate
existing buildings, or acquire land for the design and construction of buildings for Direct
Care and Treatment use. Money received for maintaining state property under control of
the executive board may be deposited into this account.
new text end

new text begin Subd. 3. new text end

new text begin Systems account. new text end

new text begin A systems account is created in the special revenue fund of
the state treasury. Money in the account is appropriated to the executive board and may be
used for security systems and information technology projects, services, and support under
the control of the executive board. Money allocated to Direct Care and Treatment systems
projects under section 256.014 must be transferred to this account.
new text end

new text begin Subd. 4. new text end

new text begin Cemetery maintenance account. new text end

new text begin The cemetery maintenance account is created
in the special revenue fund of the state treasury. Money in the account is appropriated to
the executive board for the maintenance of cemeteries under control of the executive board.
Money allocated to Direct Care and Treatment cemeteries may be transferred to this account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 21.

Minnesota Statutes 2022, section 256.88, is amended to read:

256.88 SOCIAL WELFARE FUND ESTABLISHED.

Except as otherwise expressly provided, all moneys and funds held by the commissioner
of human services new text begin , the Direct Care and Treatment executive board, new text end and the local social
services agencies of the several counties in trust or for the benefit of children with a disability
and children who are dependent, neglected, or delinquent, children born to mothers who
were not married to the children's fathers at the times of the conception nor at the births of
the children, persons determined to have developmental disability, mental illness, or substance
use disorder, or other wards or beneficiaries, under any law, shall be kept in a single fund
to be known as the "social welfare fund" which shall be deposited at interest, held, or
disbursed as provided in sections 256.89 to 256.92.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 22.

Minnesota Statutes 2022, section 256.89, is amended to read:

256.89 FUND DEPOSITED IN STATE TREASURY.

The social welfare fund and all accretions thereto shall be deposited in the state treasury,
as a separate and distinct fund, to the credit of the commissioner of human services new text begin and the
Direct Care and Treatment executive board new text end as deleted text begin trustee deleted text end new text begin trustees new text end for deleted text begin the deleted text end new text begin their respective new text end
beneficiaries deleted text begin thereof deleted text end in proportion to deleted text begin their deleted text end new text begin the beneficiaries' new text end several interests. The
commissioner of management and budget shall be responsible only to the commissioner of
human services new text begin and the Direct Care and Treatment executive board new text end for the sum total of the
fund, and shall have no duties nor direct obligations toward the beneficiaries thereof
individually. Subject to the new text begin applicable new text end rules of the commissioner of human services new text begin or the
Direct Care and Treatment executive board, new text end money so received by a local social services
agency may be deposited by the executive secretary of the local social services agency in
a local bank carrying federal deposit insurance, designated by the local social services
agency for this purpose. The amount of such deposit in each such bank at any one time shall
not exceed the amount protected by federal deposit insurance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 23.

Minnesota Statutes 2022, section 256.90, is amended to read:

256.90 SOCIAL WELFARE FUND; USE; DISPOSITION; DEPOSITORIES.

The commissioner of human services new text begin , in consultation with the Direct Care and Treatment
executive board, new text end at least 30 days before the first day of January and the first day of July in
each year shall file with the commissioner of management and budget an estimate of the
amount of the social welfare fund to be held in the treasury during the succeeding six-month
period, subject to current disbursement. Such portion of the remainder thereof as may be at
any time designated by the request of the commissioner of human services may be invested
by the commissioner of management and budget in bonds in which the permanent trust
funds of the state of Minnesota may be invested, upon approval by the State Board of
Investment. The portion of such remainder not so invested shall be placed by the
commissioner of management and budget at interest for the period of six months, or when
directed by the commissioner of human services, for the period of 12 months thereafter at
the highest rate of interest obtainable in a bank, or banks, designated by the board of deposit
as a suitable depository therefor. All the provisions of law relative to the designation and
qualification of depositories of other state funds shall be applicable to sections 256.88 to
256.92, except as herein otherwise provided. Any bond given, or collateral assigned or both,
to secure a deposit hereunder may be continuous in character to provide for the repayment
of any moneys belonging to the fund theretofore or thereafter at any time deposited in such
bank until its designation as such depository is revoked and the security thereof shall be not
impaired by any subsequent agreement or understanding as to the rate of interest to be paid
upon such deposit, or as to time for its repayment. The amount of money belonging to the
fund deposited in any bank, including other state deposits, shall not at any time exceed the
amount of the capital stock thereof. In the event of the closing of the bank any sum deposited
therein shall immediately become due and payable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 24.

Minnesota Statutes 2022, section 256.91, is amended to read:

256.91 PURPOSES.

From that part of the social welfare fund held in the state treasury subject to disbursement
as provided in section 256.90 the commissioner of human services new text begin or the Direct Care and
Treatment executive board new text end at any time may pay out such amounts as the commissioner new text begin or
executive board new text end deems proper for the support, maintenance, or other legal benefit of any of
the children with a disability and children who are dependent, neglected, or delinquent,
children born to mothers who were not married to the children's fathers at the times of the
conception nor at the births of the children, persons with developmental disability, substance
use disorder, or mental illness, or other wards or persons entitled thereto, not exceeding in
the aggregate to or for any person the principal amount previously received for the benefit
of the person, together with the increase in it from an equitable apportionment of interest
realized from the social welfare fund.

When any such person dies or is finally discharged from the guardianship, care, custody,
and control of the commissioner of human services new text begin or the Direct Care and Treatment
executive board new text end , the amount then remaining subject to use for the benefit of the person shall
be paid as soon as may be from the social welfare fund to the persons thereto entitled by
law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 25.

Minnesota Statutes 2022, section 256.92, is amended to read:

256.92 COMMISSIONER OF HUMAN SERVICES new text begin AND DIRECT CARE AND
TREATMENT new text end , ACCOUNTS.

It shall be the duty of the commissioner of human services new text begin , the Direct Care and Treatment
executive board, new text end and deleted text begin of deleted text end the local social services agencies of the several counties of this state
to cause to be deposited with the commissioner of management and budget all moneys and
funds in their possession or under their control and designated by section 256.91 as and for
the social welfare fund; and all such moneys and funds shall be so deposited in the state
treasury as soon as received. The commissioner of human services new text begin , in consultation with the
Direct Care and Treatment executive board, new text end shall keep books of account or other records
showing separately the principal amount received and deposited in the social welfare fund
for the benefit of any person, together with the name of such person, and the name and
address, if known to the commissioner of human services new text begin or the Direct Care and Treatment
executive board new text end , of the person from whom such money was received; and, at least once
every two years, the amount of interest, if any, which the money has earned in the social
welfare fund shall be apportioned thereto and posted in the books of account or records to
the credit of such beneficiary.

The provisions of sections 256.88 to 256.92 shall not apply to any fund or money now
or hereafter deposited or otherwise disposed of pursuant to the lawful orders, decrees,
judgments, or other directions of any district court having jurisdiction thereof.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 26.

Laws 2023, chapter 61, article 8, section 1, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective deleted text begin January deleted text end new text begin July new text end 1, deleted text begin 2025 deleted text end new text begin 2024 new text end .

Sec. 27.

Laws 2023, chapter 61, article 8, section 2, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective deleted text begin January deleted text end new text begin July new text end 1, deleted text begin 2025 deleted text end new text begin 2024 new text end .

Sec. 28.

Laws 2023, chapter 61, article 8, section 3, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective deleted text begin January deleted text end new text begin July new text end 1, deleted text begin 2025 deleted text end new text begin 2024 new text end .

Sec. 29.

Laws 2023, chapter 61, article 8, section 8, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective deleted text begin January deleted text end new text begin July new text end 1, deleted text begin 2025 deleted text end new text begin 2024 new text end .

Sec. 30. new text begin INITIAL APPOINTMENTS OF THE DIRECT CARE AND TREATMENT
EXECUTIVE BOARD AND CHIEF EXECUTIVE OFFICER.
new text end

new text begin Subdivision 1. new text end

new text begin Executive board. new text end

new text begin (a) The initial appointments of the members of the
Direct Care and Treatment executive board under Minnesota Statutes, section 246C.06,
must be made by January 1, 2025.
new text end

new text begin (b) The executive board is exempt from Minnesota Statutes, section 13D.01, until the
authority and responsibilities for Direct Care and Treatment are transferred to the executive
board in accordance with Minnesota Statutes, section 246C.04.
new text end

new text begin Subd. 2. new text end

new text begin Chief executive officer. new text end

new text begin (a) The Direct Care and Treatment executive board
must appoint as the initial chief executive officer for Direct Care and Treatment under
Minnesota Statutes, section 246C.07, the chief executive officer of the direct care and
treatment division of the Department of Human Services holding that position at the time
the initial appointment is made by the board. The initial appointment of the chief executive
officer must be made by the executive board by July 1, 2025.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 246C.08, the salary of the initial chief
executive officer must not be less than the amount paid to the chief executive officer of the
direct care and treatment division of the Department of Human Services as of the date of
the initial appointment.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner of human services to consult. new text end

new text begin In preparing the budget estimates
required under Minnesota Statutes, section 16A.10, for the direct care and treatment division
for the 2026-2027 biennial budget and any legislative proposals for the 2025 legislative
session that involve direct care and treatment operations, the commissioner of human services
must consult with the Direct Care and Treatment executive board before submitting the
budget estimates or legislative proposals. If the executive board is not appointed by the date
the budget estimates must be submitted to the commissioner of management and budget,
the commissioner of human services must provide the executive board with a summary of
the budget estimates that were submitted.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 31. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2023 Supplement, section 246C.03, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2022, sections 246.01; 246.12; 246.234; 246.36; and 246.41, 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 July 1, 2024.
new text end

APPENDIX

Repealed Minnesota Statutes: H4692-1

246.01 POWERS AND DUTIES.

The commissioner of human services is hereby specifically constituted the guardian of all persons with developmental disabilities, the guardianship of whom has heretofore been vested in the State Board of Control or in the director of social welfare whether by operation of law or by an order of court without any further act or proceeding, and all the powers and duties vested in or imposed upon the State Board of Control or the director of social welfare, with reference to mental testing of persons with developmental disability, and with reference to the institutions of the state of Minnesota except correctional facilities administered and managed by the commissioner of corrections, are hereby transferred to, vested in, and imposed upon the commissioner of human services, and in relation thereto is hereby charged with and shall have the exclusive power of administration and management of all of the following state institutions: state hospitals for persons with developmental disability, mental illness, or substance use disorder. The commissioner shall have power and authority to determine all matters relating to the unified and continuous development of all of the foregoing institutions and of such other institutions, the supervision of which may, from time to time, be vested in the commissioner. It is intended that there be vested in the commissioner all of the powers, functions, and authority heretofore vested in the State Board of Control relative to such state institutions. The commissioner shall have the power and authority to accept, in behalf of the state, contributions and gifts of money and personal property for the use and benefit of the residents of the public institutions under the commissioner's control, and all money and securities so received shall be deposited in the state treasury subject to the order of the commissioner of human services. If the gift or contribution is designated by the donor for a certain institution or purpose, the commissioner of human services shall expend or use the same as nearly as may be in accordance with the conditions of the gift or contribution, compatible with the best interests of the inmates and the state. The commissioner of human services is hereby constituted the "state agency" as defined by the Social Security Act of the United States and the laws of this state for all purposes relating to mental health and mental hygiene.

For the purpose of carrying out these duties, the commissioner of human services shall accept from wards with developmental disabilities for whom the commissioner is specifically appointed guardian a signed application for consent to the marriage of said ward. Upon receipt of such application the commissioner shall promptly conduct such investigation as the commissioner deems proper and determine if the contemplated marriage is for the best interest of the ward and the public. A signed copy of the commissioner's determination shall be mailed to the ward and to the court administrator of the district court of the county where the application for such marriage license was made.

There is hereby appropriated to such persons or institutions as are entitled to such sums as are provided for in this section, from the fund or account in the state treasury to which the money was credited, an amount sufficient to make such payment.

246.12 BIENNIAL ESTIMATES; SUGGESTIONS FOR LEGISLATION.

The commissioner of human services shall prepare, for the use of the legislature, biennial estimates of appropriations necessary or expedient to be made for the support of the institutions and for extraordinary and special expenditures for buildings and other improvements. The commissioner shall, in connection therewith, make suggestions relative to legislation for the benefit of the institutions. The commissioner shall report the estimates and suggestions to the legislature on or before November 15 in each even-numbered year. The commissioner of human services on request shall appear before any legislative committee and furnish any required information in regard to the condition of any such institution.

246.234 RECIPROCAL EXCHANGE OF CERTAIN PERSONS.

The commissioner of human services is hereby authorized and empowered with the approval of the governor to enter into reciprocal agreements with any other state or states, through the duly authorized authorities thereof, regarding the mutual exchange, return, and transportation of persons with mental illness or developmental disabilities who are within the confines of one state but have legal residence or legal settlement for the purposes of relief in another state. Such agreements shall contain no provisions conflicting with any law of this state.

246.36 ACCEPTANCE OF VOLUNTARY, UNCOMPENSATED SERVICES.

For the purpose of carrying out a duty, the commissioner of human services shall have authority to accept uncompensated and voluntary services and to enter into contracts or agreements with private or public agencies, or persons, for uncompensated and voluntary services, as the commissioner may deem practicable. Uncompensated and voluntary services do not include services mandated by licensure and certification requirements for health care facilities. The volunteer agencies, organizations, or persons who provide services to residents of state facilities operated under the authority of the commissioner are not subject to the procurement requirements of chapters 16A and 16C. The agencies, organizations, or persons may purchase supplies, services, and equipment to be used in providing services to residents of state facilities through the Department of Administration.

246.41 BENEFIT FOR PERSONS WITH DEVELOPMENTAL DISABILITIES.

Subdivision 1.

Acceptance.

The commissioner of human services is authorized to accept, for and in behalf of the state, contributions of money for the use and benefit of persons with developmental disabilities.

Subd. 2.

Special welfare fund.

Any money so received by the commissioner shall be deposited with the commissioner of management and budget in a special welfare fund, which fund is to be used by the commissioner of human services for the benefit of persons with developmental disabilities within the state, including those within state hospitals. And, without excluding other possible uses, research relating to persons with developmental disabilities shall be considered an appropriate use of such funds; but such funds shall not be used for any structures or installations which by their nature would require state expenditures for their operation or maintenance without specific legislative enactment therefor.

Subd. 3.

Appropriation.

There is hereby appropriated from the special welfare fund in the state treasury to such persons as are entitled thereto to carry out the provisions stated in this section.

246C.03 TRANSITION OF AUTHORITY; DEVELOPMENT OF A BOARD.

Subdivision 1.

Authority until board is developed and powers defined.

On July 1, 2023, the commissioner of human services shall continue to exercise all authorities and responsibilities under chapters 13, 245, 246, 246B, 252, 253, 253B, 253C, 253D, 254A, 254B, and 256, until legislation is effective that develops the Department of Direct Care and Treatment executive board and defines the responsibilities and powers of the Department of Direct Care and Treatment and its executive board.

Subd. 2.

Development of Department of Direct Care and Treatment Board.

(a) The commissioner of human services shall prepare legislation for introduction during the 2024 legislative session, with input from stakeholders the commissioner deems necessary, proposing legislation for the creation and implementation of the Direct Care and Treatment executive board and defining the responsibilities, powers, and function of the Department of Direct Care and Treatment executive board.

(b) The Department of Direct Care and Treatment executive board shall consist of no more than five members, all appointed by the governor.

(c) An executive board member's qualifications must be appropriate for overseeing a complex behavioral health system, such as experience serving on a hospital or non-profit board, serving as a public sector labor union representative, experience in delivery of behavioral health services or care coordination, or working as a licensed health care provider, in an allied health profession, or in health care administration.